EMERGE INTERACTIVE INC
ASSET PURCHASE AGREEMENT
<DOCUMENT>
<TYPE>EX-10.54
<SEQUENCE>3
<FILENAME>dex1054.htm
<DESCRIPTION>ASSET PURCHASE AGREEMENT
<TEXT>
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<TITLE>Prepared by R.R. Donnelley Financial -- Asset Purchase Agreement</TITLE>
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  <p align=right><font size=2><b><u>Exhibit 10.54 </u> </b></font></p> <p align=center><font size=2><b> ASSET PURCHASE AGREEMENT </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Asset Purchase Agreement, and referred to herein as the &#147;Agreement&#148;, is made and entered into and is hereby effective June 7, 2002, by and between eMerge
Interactive, Inc. and eMerge San Saba, Inc, referred to herein as the &#147;Seller&#148; and Kenneth G. Jordan (&#147;Jordan&#148;) and wife, Kynda R. Jordan and K. Jordan Enterprises, Inc. (&#147;KJE&#148;), together with Jordan and Kynda R.
Jordan, referred to herein as the &#147;Buyers&#148;. Buyers and Seller are referred to collectively herein as the &#147;Parties&#148;.</font></p> <p align=center><font size=2><b> BACKGROUND </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;The Seller, among other businesses, is engaged in the business of purchasing cattle for resale through the Seller&#146;s cattle auction operation in
San Saba, Brownwood and Mason, Texas (with the Seller&#146;s business being referred to as &#147;Jordan Cattle Auction Business&#148;).</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;Jordan Cattle Auction Business involves the buying and selling of cattle on a short term basis, and derives its profits primarily from buying and
reselling cattle and/or these services on behalf of other businesses on a commission basis. The Jordan Cattle Auction Business includes, without limitation, the activities known in the livestock industry as order buying, dealing, brokering, and
trading.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;Buyers and Seller were Parties to an Agreement for the Purchase and Sale of Assets dated April 21, 2000, by
and between eMerge Interactive, Inc. and W.P. Land and Livestock, Inc. d/b/a Jordan Cattle Auction and Kenneth and Kynda Jordan and Willard and Peggy Jordan (the &#147;Purchase Agreement&#148;) Pursuant to the Purchase Agreement Seller purchased the
assets of the Jordan Cattle Auction Business from related entities of Buyers. Now, the Parties contemplate a transaction in which Buyers acquire all of those assets, that were purchased by Seller pursuant to that Agreement for the Purchase and Sale
of Assets dated April 21, 2000 as well as any other assets that relate to the Jordan Cattle Auction Business, whether acquired before or after April 21, 2000, save and except the excluded assets set forth in <u> Section 1.1 </u> hereof (referred to
herein as &#147;Excluded Assets&#148;).</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Now, therefore, for good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged and in consideration of the mutual covenants, representations, warranties and agreements contained herein, the Parties hereby agree as follows:</font></p> <p align=center><font size=2><b> <u> ARTICLE 1 </u> </b><br><b> <u> PURCHASE AND
SALE </u> </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;<u> Commitment to Sell and Assign </u>. Upon the terms and subject to the conditions set forth in this
Agreement, Seller shall sell, transfer, assign, convey and deliver to Buyers all of the assets, properties, interests, business, goodwill, claims and other rights of Seller (other than the &#147;Excluded Assets&#148;) relating to the Jordan Cattle
Auction Business, whether tangible or intangible, vested or unvested, contingent or otherwise, real, personal or mixed, and wherever</font></p> <CENTER><font size=2>1</font></CENTER>

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  <BR> <p align=left><font size=2>located, whether or not reflected on the books and records of Seller and whether or not described in this Agreement as such existed as of the date hereof, together with additional
assets acquired from the date hereof to the Closing Date, including without limitation all right, title and interest of Seller in and to the specified assets, properties and rights set forth below (and referred to herein as the &#147;Purchased
Assets&#148;):</font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(a)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>All of those assets remaining in possession of Seller, except the Excluded Assets set forth in the last paragraph of this <u> Section 1.1 </u>, that were purchased by Seller pursuant to the Purchase
Agreement.</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(b)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>All fixed assets, furniture, property, equipment, fixtures, leasehold improvements, tools, machinery, office equipment, plant and other tangible personal property related to or used in connection with the Jordan Cattle
Auction Business or located at the Jordan Cattle Auction facilities.</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(c)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Seller&#146;s interest in all real and personal property leases, equipment leases, rental agreements, sales and purchase orders and acknowledgments, permits, license and maintenance agreements, third party product
agreements, third party supply agreements and any and all other contracts or binding agreements related to the Jordan Cattle Auction Business.</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(d)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>All Intellectual Property (as defined in Section 8(A)) related to the Jordan Cattle Auction Business including, without limitation, a license to use the name &#147;Jordan Cattle Auction&#148; and the trade names and
trademarks descriptive of, and associated with, such name. </font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(e)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>All goodwill associated with the Jordan Cattle Auction Business.</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(f)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>All right, title and interest to the web page located at the uniform recourse locator address <u> http://www.jordancattle.com </u>, and any e-mail address used by the Seller using the suffix
&#147;@jordancattle.com&#148;.</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(g)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>The real property and improvements thereon (the &#147;Real Property&#148;) as set forth in Improved Property Commercial Contract of even date herewith (the &#147;Land Contract&#148;) and attached hereto as <u> Exhibit A
</u>.</font></td></tr></table><br> <p align=left><font size=2>Notwithstanding the foregoing, the Purchased Assets shall not include: (i) all cash and cash equivalents of Seller; (ii) all accounts receivable of Seller; and (iii) all proprietary
rights in and to the premium sale process known as the &#147;Jordan Premium Sale Model&#148; and the trade names and trademarks descriptive of, and associated with, such name.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;<u> Purchase Price </u>. Subject to the terms and conditions of this Agreement and in reliance upon the representations, warranties, covenants and
agreements of the Seller, the Buyers shall pay to Seller at the Closing Date (i) the sum of Two Hundred Thousand Dollars and No/100s ($200,000) and (ii) the sum of One Million and No/100s ($1,000,000) in cash, as set forth in the Land Contract.
Additionally, KJE will purchase at book value for cash on the Closing Date, the current inventory as of the Closing Date, of trailers, feed and hay, EID Tags and Taggers, and hay racks. Seller shall also release any funds in any custodial account
established</font></p> <CENTER><font size=2>2</font></CENTER>

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  <BR> <p align=left><font size=2>prior to the Closing Date to Buyers as soon as practicable following the conclusion of any auction to which a custodial account relates.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;<u> Additional Business Consideration </u>. Seller will also be eligible to receive additional consideration (&#147;Additional Consideration&#148;)
as set forth in this Section 1.3. The Additional Consideration shall be determined by calculating the Taxable Income of KJE (as defined in Section 8(C)) and adding back to that Taxable Income the depreciation deduction, the amortization deduction,
any salary or bonuses paid to Jordan and any other unusual items not in the ordinary course of business (and herein referred to as the &#147;Calculation Amount&#148;) for each of the following three calculation periods (each, a &#147;Calculation
Period&#148;):</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;July 1, 2002 to June 30, 2003;</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;July 1, 2003 to June 30, 2004; and</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;July 1, 2004 to June 30, 2005.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the
Calculation Amount exceeds $400,000.00 for any of the three Calculation Periods, KJE will pay Seller fifty percent (50%) of the &#147;Calculation Amount&#148; in excess of $400,000.00 for each of the Calculation Periods. This right to Additional
Consideration is personal to Seller and cannot be assigned or conveyed.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As soon as reasonably practicable, but not later than 30 calendar
days after the Form 1120 U.S. Corporation Income Tax Return is filed by KJE for each of the Calculation Periods, Buyers will deliver to Seller (i) a copy of such Tax Return along with any supporting schedules, (ii) copies of the W-2&#146;s that were
filed for the current Calculation Period, and a (iii) a statement setting forth in reasonable detail the computation of the Additional Consideration, if any, that Buyer calculates as owed to Seller pursuant to this Article (Calculation Statement).
(Items (i)-(iii) are herein collectively referred to as the &#147;Supporting Documents&#148;.)</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As soon as practicable, but not later than
25 calendar days after receipt of the Supporting Documents, Seller will inform Buyers in writing of any objection it has to the Calculation Statement for such Calculation Period, which objection, if any, will set forth in reasonable detail
Seller&#146;s objections and the basis for those objections (an &#147;Objection Notice&#148;). If Seller so objects and the Parties do not resolve such objections on a mutually agreeable basis within 30 calendar days after the end of such
Calculation Period, then the disagreement will be resolved as soon as practicable thereafter, by an accounting firm of national reputation, which accounting firm will be selected jointly by Buyers on the one hand and Seller on the other hand, and in
no event may such accounting firm resolve the objection in a manner that would result in Taxable Income for such Calculation Period being greater or les ser in the aggregate than such amounts originally proposed by Buyers and Seller. The Parties
acknowledge that the scope of such accounting firm&#146;s work will be limited to resolving the objections set forth in the Objection Notice. The decision of such accounting firm, which shall be set forth in writing, shall be final and binding upon
the Parties, and may be entered as a final judgment in any court of proper jurisdiction.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Seller does not object within 25 calendar days
to the Calculation Statement, then Buyers will pay the Additional Consideration set forth in the Calculation Statement within five (5) calendar days following the expiration of such 25 day period. If there is an objection within the 25 calendar
days, Buyer will pay Seller within five (5) calendar days after a resolution by the parties. If there is an objection within the 25 calendar days that is not resolved by the Parties,</font></p> <CENTER><font size=2>3</font></CENTER>

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  <p align=left><font size=2>Buyer will pay Seller within five (5) calendar days after a final and binding determination by the accounting firm selected pursuant to the procedures described in the preceding paragraph.
</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;<u> Additional Consideration in the Event of Sale of Real Property </u>. If, after the Closing Date and for a period
of three (3) years thereafter, Buyer sells either the Brownwood or Mason facilities, Buyer shall pay Seller Fifty Percent (50%) of the net sales proceeds from any sale that is an &#147;all cash sale&#148;. However, if Buyer sells either the
Brownwood or Mason facilities prior to the expiration of three years from Closing Date in an installment sale, contract for deed, or any other owner-financed type sale, Buyer will:</font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(a)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Remit to Seller thirty percent (30%) of the payments if the pay-out is for five years or less;</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(b)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Remit to Seller forty percent (40%) of the payments if the pay-out is for six (6) to ten (10) years; </font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(c)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Remit to Seller fifty percent (50%) of the payments if the payout is for more than ten (10) years.</font></td></tr></table><br> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This right to the additional consideration in the event of the sale of Real Property cannot be assigned or conveyed by Seller. </font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5&nbsp;&nbsp;&nbsp;<u> Liabilities </u>. Seller shall retain and Buyers shall not assume any obligations or liabilities of Seller, other than with respect to the
Purchased Assets.</font></p> <p align=center><font size=2><b> <u> ARTICLE 2 </u> </b><br><b> <u> CLOSING </u> </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;<u>
Closing </u>. Subject to the provisions and conditions of this Agreement, the Closing will take place at the office of Clayborne L. Nettleship, Attorney, 406 W. Wallace, San Saba, Texas 76877, on or before May 31, 2002, or on such other date as the
Parties to this Agreement agree in writing (referred to herein as the &#147;Closing Date&#148;).</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;<u> Deliveries at
Closing </u>. Seller shall at the Closing Date execute and deliver to Buyers the following:</font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td width="60">&nbsp;</td>
<td valign=top width="20"><font size=2>(a)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Such instruments of sale, transfer, conveyance, and assignment as the Buyers and their counsel may reasonably request.</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td valign=top width="20"><font size=2>(b)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>A certificate by the Secretary of State of Delaware that the Seller is existing and in good standing as a corporation; and</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td valign=top width="20"><font size=2>(c)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Possession of the Purchased Assets.</font></td></tr></table><br> <p align=center><font size=2><b> <u> ARTICLE 3 </u> </b><br><b> <u> REPRESENTATIONS AND WARRANTIES OF SELLER </u> </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Seller warrants and represents each of the statements set forth in this Article are true, correct, and complete and will be true, correct, and complete as of the
Closing Date.</font></p> <CENTER><font size=2>4</font></CENTER>

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  <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;<u> Organization of Seller </u>. The Seller is a corporation duly organized, validly existing,
and in good standing under the laws of the State of Delaware. </font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;<u> Authorization and Effect of Transaction </u>. The
Seller has the full power and authority to execute, deliver and fully perform its obligations under this Agreement.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;<u> Noncontravention </u>. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby
will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which the Seller is subject or any provision of the charter
or bylaws of the Seller, or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement,
contract, lease, license, instrument, loan, or other arrangement to which the Seller is a party or by which it is bound or to which any of its assets is subject (or result in the imposition on any Security Interest (as defined in <u> Section 8(B)
</u>)upon any of its assets). The Seller is not required to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order for the Parties to consummate the transactions
contemplated by this Agreement. </font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;<u> Title to Purchased Assets </u>. The Seller has good and marketable title to each
of the Purchased Assets free and clear of any security interest or restriction on transfer.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;<u> Kenneth G.
Jordan&#146;s Employment Contract </u>. Buyers and Seller agree that <u> Article 8. Noncompetition, Nonsolicitation, Non-Disclosure and Non-Intereference </u>, of that certain Employment Agreement between eMerge Interactive, Inc. and Ken Jordan
(Kenneth G. Jordan) dated May 31, 2000 (the &#147;Employment Agreement&#148;) are hereby amended such that the provisions of such Article 8 shall not apply to Jordan&#146;s purchase and operations of the Jordan Cattle Auction Business, but all other
provisions of such Article 8 and the Employment Agreement shall remain in full force and effect. If either Party so requests, Buyer and Jordan shall enter into an amendment to the Employment Agreement.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6&nbsp;&nbsp;&nbsp;<u> Willard Jordan, Peggy Jordan, Kynda Jordan, and Ken Jordan&#146;s Amended Non-Competition Agreement </u>. Buyers and Seller agree that <u>
Article 7. Trade Secrets, Confidential and Proprietary Information, Covenants, Noncompetition, Nonsolicitation, and Nondisclosure </u><i> , </i> of that certain Agreement for the Purchase and Sale of Assets between eMerge Interactive, Inc. and W.P.
Land and Livestock, Inc. d/b/a Jordan Cattle Auction and Kenneth and Kynda Jordan and Willard and Peggy Jordan dated April 21, 2000 (the &#147;Purchase Agreement&#148;) shall be amended such that the provisions of such Article 7 and the Purchase
Agreement shall not apply to Willard Jordan, Peggy Jordan, Kynda Jordan, and Ken Jordan as such may apply to Ken Jordan&#146;s or KJE&#146;s purchase and operation of the Jordan Cattle Auction business, but all other provisions of such Article 7.
shall remain in fu ll force and effect.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7&nbsp;&nbsp;&nbsp;<u> Release of Liquidated Damage Provision </u>. The Purchase Agreement
contains an article styled <u> Article 9(c). &#147;Liquidated Damages </u>&#148;. Such Article 9(c) provides for the payment of Liquidated Damages to the Seller (the then &#147;Buyer&#148;) in the event of certain events set out therein. Seller
hereby terminates and voids all obligations required by said Article 9(c) and Seller relinquishes and waives its right to enforce the obligations against Kenneth and Kynda Jordan</font></p> <CENTER><font size=2>5</font></CENTER>

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  <BR> <p align=left><font size=2>and Willard and Peggy Jordan, or W.P. Land and Livestock Company and any related entities pursuant to such Article 9(c).</font></p> <p align=center><font size=2><b> <u> ARTICLE 4 </u>
</b><br><b> <u> REPRESENTATIONS AND WARRANTIES OF BUYERS </u> </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Buyers warrant and represent to the Seller that each of the
statements contained in this article are true and correct. </font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;<u> Organization of Buyers </u>. K. Jordan Enterprises,
Inc. is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas. </font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;<u> Authorization and Effect of Transaction </u>. The Buyers have the full power and authority to execute, deliver and fully perform their
obligations under this Agreement.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;<u> Noncontravention </u>. Neither the execution and the delivery of this Agreement,
nor the consummation of the transactions contemplated hereby will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to
which any Buyers is subject or any provision of the charter or bylaws of any Buyer, or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate,
modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, loan, or other arrangement to which any Buyer is a party or by which any Buyer is bound or to which any of such Buyer&#146;s assets is subject (or
result in the imposition on any Security Interest upon any of its assets). Th e Buyers are not required to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order
for the Parties to consummate the transactions contemplated by this Agreement. </font></p> <p align=center><font size=2><b> <u> ARTICLE 5 </u> </b><br><b> <u> SURVIVAL AND INDEMNIFICATION </u> </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;<u> Survival </u>. All representations, covenants, warranties, indemnifications and obligations contained in this Agreement or in any certificate,
document, or statement delivered pursuant to this Agreement shall survive for a period of twelve months following the Closing Date, and, in the event of a Party&#146;s breach of this Agreement resulting in the termination of this Agreement, such
representations, covenants, warranties, indemnifications, and obligations shall further survive the termination of this Agreement, shall continue in full force and effect for a period twelve months following such termination.</font></p> <p
align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;<u> Indemnification </u>. Seller hereby agrees to indemnify, defend, and hold harmless the Buyers and Jordan, in Jordan&#146;s
capacity as an officer of the Seller, from any and all losses, damages, liabilities and claims and all fees, costs, and expenses of any kind (including all attorney&#146;s fees) that arise out of, are based on, or result, from the transactions
contemplated by this Agreement, solely by reason of any claim of a conflict of interest based on the fact that Jordan was Executive Vice President of eMerge Interactive, Inc. and therefore an affiliate of Seller at the time of the transactions
contemplated by this Agreement.</font></p> <CENTER><font size=2>6</font></CENTER>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
  <BR> <p align=center><font size=2><b> <u> ARTICLE 6 </u> </b><br><b> <u> TERMINATION OF AGREEMENT </u> </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parties may terminate this Agreement as provided for below:</font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(a)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Buyers and Seller may terminate this Agreement by mutual written consent prior to the Closing Date.</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(b) </font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Buyer may terminate this Agreement prior to Closing Date in the event that (i) Seller breaches or has breached any representation, warranty, or covenant contained in this Agreement or (ii) if the Improved Commercial
Property Contract is terminated pursuant to the provisions contained therein or (iii) the Closing Date shall not have occurred thirty (30) days from the date of this Agreement.</font></td></tr>
<tr>
<td width="20">&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="30">&nbsp;</td>
<td valign=top width="20"><font size=2>(c)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Seller may terminate this Agreement prior to Closing Date in the event that (i) Buyers breach or have breached any representation, warranty, or covenant contained in this Agreement or (ii) if the Improved Commercial
Property Contract is terminated pursuant to the provisions contained therein or (iii) the Closing Date shall not have occurred thirty (30) days from the Date of this Agreement.</font></td></tr></table><br> <p align=center><font size=2><b> <u>
ARTICLE 7 </u> </b><br><b> <u> MISCELLANEOUS </u> </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;<u> Entire Agreement </u>. This Agreement and the Improved
Commercial Property Contract of even date (including the agreements referred to herein) constitutes the entire agreement with the Parties and supercedes any prior understandings, agreements, or representations by or between the Parties, written or
oral, to the extent they related in any way to the subject matter hereof.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;<u> Successions and Assignment </u>. This
Agreement shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests, or obligations hereunder without
the prior written approval of the other Party.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;<u> Counterparts </u>. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. All facsimile executions shall be treated as originals for all purposes.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;<u> Headings </u>. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;<u> Governing Law </u>. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas. </font></p> <CENTER><font size=2>7</font></CENTER>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
  <BR> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;<u> Amendments </u>. No amendments of any provision of this Agreement shall be valid unless
reduced to writing and signed by both Buyers and Seller.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;<u> Severability </u>. Any term or provision of this Agreement
that is found to be invalid or unenforceable shall not affect the validity or enforceability of the remaining terms and provisions.</font></p> <p align=center><font size=2><b> <u> ARTICLE 8 </u> </b><br><b> <u> DEFINITIONS </u> </b></font></p> <p
align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;<u> &#147;Intellectual Property&#148; </u> means all of the following only as it pertains to the Jordan Cattle Auction Business: (a)
all inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part,
revisions, extensions, and reexaminations thereof, (b) all trademarks, service marks, trade dress, logos, trade names, and corporate names (whether or not registered), together with all translations, adaptations, derivations, and combinations
thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all copyrightable works, all copyrights, and all applications, registrations, and renewals in connections
herewith, (d) all mask works and all applications, registrations, and renewals in connection herewith, (e) all trade secrets and confidential business information (including ideas, research and development, know-how, formulas, compositions,
manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals), (f) all computer software
(including data and related documentation), (g) all other proprietary rights, and (h) all copies and tangible embodiments thereof (in whatever form or medium).</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;<u> &#147;Security Interest&#148; </u> means any mortgage, pledge, lien, encumbrance, charge, or other security interest.</font></p> <p
align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;<u> &#147;Taxable Income&#148; </u> is gross income reduced by adjustments and allowable deductions. It is the income against which
tax rates are applied to compute an entity&#146;s tax liability.</font></p> <CENTER><font size=2>8</font></CENTER>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
  <BR> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Parties hereto have executed this Agreement. </font></p>
<table width="100%" cellspacing=0 cellpadding=0>
<tr>
<td valign=bottom align=left width="262"><font size=2>&nbsp;</font></td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2><b> BUYERS: </b></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=left width="262"><font size=2>&nbsp;</font></td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>KENNETH G. JORDAN, Individually</font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=left width="262"><font size=2>&nbsp;</font></td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=left width="262"><font size=2>&nbsp;</font></td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2><u>/s/&nbsp;&nbsp;Kenneth G.
Jordan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=left width="262"><font size=2>&nbsp;</font></td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>Kenneth G. Jordan</font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=left width="262"><font size=2>&nbsp;</font></td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=left width="262"><font size=2>&nbsp;</font></td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>KYNDA R. JORDAN, Individually</font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td valign=bottom align=left width="357"><font size="2" face="Times New Roman, Times, serif"><u>/s/&nbsp;&nbsp;Kynda R.
Jordan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>Kynda R. Jordan</font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>Date signed by Buyers:&nbsp;June 7, 2002</font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>K. JORDAN ENTERPRISES, INC., a<br> ________________ corporation</font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>By:&nbsp;&nbsp;<u>/s/&nbsp;&nbsp;Kenneth G.
Jordan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>Name: <u>Kenneth G.
Jordan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>Title:
&nbsp;&nbsp;<u>President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>Date signed by Buyer:&nbsp;&nbsp;June 7, 2002</font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2><b> SELLER: </b></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2><b> EMERGE INTERACTIVE INC. </b>, a<br> Delaware Corporation</font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>By: <u>/s/&nbsp;&nbsp;David C.
Warren&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</u></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>Name: <u>David C.
Warren&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;</u></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>Title:
&nbsp;&nbsp;<u>CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td width="357">&nbsp;</td>
<td width="310">&nbsp;</td> </tr>
<tr>
<td width="262">&nbsp;</td>
<td width="308">&nbsp;</td>
<td valign=bottom align=left width="357"><font size=2>Date signed by Seller:&nbsp;&nbsp;June 7, 2002</font></td>
<td width="310">&nbsp;</td> </tr> </table> <br> <CENTER><font size=2>9</font></CENTER>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
  <BR>
<table width="100%" cellspacing=0 cellpadding=0>
<tr>
<td valign=bottom align=left width="311"><font size=2></font></td>
<td width="311">&nbsp;</td>
<td width="320">&nbsp;</td>
<td width="295">&nbsp;</td> </tr>
<tr>
<td width="311">&nbsp;</td>
<td width="311">&nbsp;</td>
<td valign=bottom align=left width="320"><font size=2><b> EMERGE SAN SABA, INC. </b>,<br> a Delaware Corporation</font></td>
<td width="295">&nbsp;</td> </tr>
<tr>
<td width="311">&nbsp;</td>
<td width="311">&nbsp;</td>
<td width="320">&nbsp;</td>
<td width="295">&nbsp;</td> </tr>
<tr>
<td width="311">&nbsp;</td>
<td width="311">&nbsp;</td>
<td valign=bottom align=left width="320"><font size=2>By:&nbsp;&nbsp;<u>/s/ David C.
Warren&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
<td width="295">&nbsp;</td> </tr>
<tr>
<td width="311">&nbsp;</td>
<td width="311">&nbsp;</td>
<td valign=bottom align=left width="320"><font size=2>Name: <u>David C. Warren&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
<td width="295">&nbsp;</td> </tr>
<tr>
<td width="311">&nbsp;</td>
<td width="311">&nbsp;</td>
<td valign=bottom align=left width="320"><font size=2>Title:
<u>CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
<td width="295">&nbsp;</td> </tr>
<tr>
<td width="311">&nbsp;</td>
<td width="311">&nbsp;</td>
<td width="320">&nbsp;</td>
<td width="295">&nbsp;</td> </tr>
<tr>
<td width="311">&nbsp;</td>
<td width="311">&nbsp;</td>
<td valign=bottom align=left width="320"><font size=2>Date signed by Seller: <u>June 7,</u> 2002</font></td>
<td width="295">&nbsp;</td> </tr></table><br> <CENTER><font size=2>10</font></CENTER>
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