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INDEMNITY AND RELEASE AGREEMENT

This Indemnity and Release Agreement (“Agreement”) is made this _ dayof September, 2000, by and between New Horizons Computer Learning Centers, Inc a California corporation with a principal place of business at 1231 East Dyer Road, Suite 110, California 92705 (“NHCLC”) and

Joseph

Betz

and

Mia

Betz

husband

and

wife

with

a

residential

address

at

(“Betz”).

RECITALS

Betz paid a total sum of eleven thousand four hundred and ten dollars ($11,410.00) to one of NHCLC’s franchisees (the “Franchisee”) representing the fees payable for certain computer training classes to be provided by said franchisee. Betz took certain of the classes. Betz claims that some classes were unsatisfactory. Betz requested a refund for classes not taken and for some classes that Betz Claimed were unsatisfactory. Betz claims that having

negotiated franchisee still owes ($1,955.00).

a settlement with the franchisee for the then reneged on the deal, paid a refund of

sum of $6,145.00

Betz

the

sum

of

one

thousand

nine

hundred

$8,1000.00 the and therefore

fifty

five

dollars

II.

When Betz did not receive the refund Betz registered the internet domain name “http:www.newhorizonssucks.net” (the “Web-site”). Betz emailed California franchisees and NHCLC regional managers, informing them of this fact and demanded a refund under threat of further notification, through search engines, of

the existence of the Web-site to the public.

III.

NHCLC is a franchiser and has developed an international

network of

franchisees and company owned computer learning centers throughout the USA and in over thirty other countries (the “Network”).

IV.

In keeping with its belief in customer satisfaction and in order to best support its Network NHCLC on behalf of its franchisee is willing to pay Betz the sum of one

thousand nine hundred fifty five dollars ($1,955.00) conditions.

on the following terms and

  • V.

    Betz has requested that NHCLC release him from all liability in relation to his actions and communications made to persons and entities disparaging NHCLC and its Network.

  • VI.

    NHCLC is willing to pay the requested sum and provide the requested release conditional upon the execution of this agreement.

NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged the parties hereto agree as follows:

1.

REPRESENTATIONS AND WARRANTIES OF BETZ

BETZ hereby represents and warrants to NHCLC as follows.

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