Document:

AGREEMENT

_____________________________________________________________

This agreement (the "Agreement") is made as of the 4th day of July 2003.

BETWEEN:
Liang Wang, Kai Xu, Hai bBo Fan, Jianwen Zhang (the "Developers")

AND:
XML Global Technologies, Inc. a Colorado company and its wholly-owned subsidiaries, including, without limitation Xtract Informatics, Inc. a British Columbia company (collectively "XML Global") having an office at: Suite 22, 1818 Cornwall Avenue, Vancouver, BC.

WHEREAS:

	 	
A.
	
The Developers have entered into certain agreements (First Agreements) dated April 14, 2003 titled the Transfer Agreement, Developer Agreement and Right of First Refusal copies attached as exhibits to this Agreement.

	 	
B.
	
XML Global wishes to enter into a transaction (the "Transaction") with Xenos Group Inc. ("Xenos") whereby Xenos will acquire substantially all of the assets of XML Global (the "Assets"). The Assets include the Transformation kernel described in and forming the subject matter of the First Agreements (hereinafter referred to as the "Technology").

	 	
C.
	
The First Agreements provides that if XML Global sells, assigns and transfers the rights in and to the source code of the Technology before April 14th, 2004, the Developers have certain entitlements more fully described therein.

 NOW THEREFORE
 
 for good and valuable consideration, the Developers and XML Global agree to the following:

	 	
A.
	
Upon and subject to the completion by XML Global of a Transaction, the Developers agree to accept 250,000 shares of Xenos (the "Shares") with the same escrow and price protection terms as those shares of Xenos to be received by XML Global in the Transaction, plus US$250,000 (the "Cash"), (payable as provided below) in full satisfaction of all entitlements of Developers under the First Agreements.  Developers covenant and agree that the Xenos stock and $250,000 represents fair market compensation for the Technology as that phrase is used in the First Agreements. The Cash shall be paid to Developers as follows: the sum of $200,000 shall be paid directly by Xenos to Developers on completion of the Transaction; and the sum of $50,000 (the "Holdback") shall be paid into an escrow account to be held by an escrow agent, acceptable to XML Global and Developers, for a period of six months following the completion of the Transaction. The Holdback shall be paid to Developers on the six month anniversary of the closing date of the Transaction unless on or before that date the escrow agent receives written notice from XML Global or Xenos that it, or Xenos, or their successors in interest,  that a claim has been made by any third party, including, without limitation, ecMarkets.com, Inc., to an interest in the Technology or that the use of the Technology  violates or infringes upon a right or interest of such third party (hereafter the "Claim"). In the event the escrow agent receives notice of a Claim, it shall hold the Holdback until it has received written notice that the Claim has been resolved, together with written instructions regarding the disposition of the Holdback; or the escrow agent may interplead the Holdback into a court of competent jurisdiction. 

	 	
B.
	
The share purchase warrants held by the Developers to acquire up to 16,000,000 shares of XML Global's common stock at a price of US$0.04 per share will be cancelled, null and void effective on closing of the Transaction.  Upon closing of the Transaction, Developers shall have no further right to receive any securities, payments or other consideration from XML Global except for the entitlements set forth in paragraph A of this Agreement; and Developers shall be deemed to have release, acquitted and forever discharged XML Global, together with its affiliates, from any further obligation or liability to Developers arising from any fact, transaction or occurrence up to the date of the closing of the Transaction.

	 	
C.
	
Upon closing of the Transaction, the Developers agree to enter into one-year employment agreements with Xenos on terms no less favorable to Developers than Developers are currently receiving from XML Global.  The term of the employment shall be for one year commencing on the closing date of the Transaction.  Developers shall be deemed to have agreed to the termination of their employment with XML Global upon completion of the Transaction and shall have no further right to continued employment with XML Global or to receive any compensation or other consideration from XML Global from and after the date of the Transaction closing.

	 	
D.
	
The Developers represent and warrant that they have transferred and assigned to XML Global full, complete and unfettered title to the Technology, free of any claims of third parties including, without limitation, any claims, rights or interest by ecMarkets.com, Inc.  The Developers represent that the Technology does not and will not infringe upon any of the intellectual property rights or trade secrets of any third party including, without limitation, ecMarkets.com, Inc.; and Developers agree to indemnify, defend and hold harmless XML Global, Xenos and their assignees from any cost, obligation, damage or liability to any third party arising from any breach of this representation and warranty.  XML Global shall have the right to offset against any balance due to Developers hereunder or arising out of the Transaction, any amount for which XML Global, Xenos or their assignees may become liable by virtue of any breach of the representation and warranty contained herein.  Such right of offset will include all costs and liabilities of XML Global, Xenos and their assignees, including legal fees incurred in the defense of the Technology.

	 	
E.
	
This Agreement is governed by and is to be construed in accordance with the laws of British Columbia, Canada.

	 	
F.
	
This agreement is subject to approval by the board of directors of XML Global.

	 	
G.
	
Time is of the essence in this Agreement.

	 	
H.
	
No modification of this Agreement is effective unless it is in writing and signed by the parties.  

	 	
I.
	
This Agreement and any modification of it constitute the entire agreement between the parties with regards to the sale, assignment and transfer of the Technology.

	 	
J.
	
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument. Each party hereto will receive by delivery or facsimile transmission a duplicate original of the Agreement executed by each party, and each party agrees that the delivery of the Agreement by facsimile transmission will be deemed to be an original of the Agreement so transmitted.

	
THE DEVELOPERS
	
XML Global

	
__________________________________

Liang Wang
	
_____________________________________

Peter Shandro

Chairman of the Board

Xtract Informatics, Inc.

	

__________________________________

Kai Xu
	 
	
__________________________________

Hai Bbo Fan
	 
	
__________________________________

Jianwen Zhang
	 

Executed at ____________________(city), ___________________ (province), this ______ day of June, 2003.

Executed at ____________________(city), ___________________ (state), this ______ day of June, 2003, by Zhang, Jianwen_______________(initial).Confidential

LETTER OF INTENT 

June 30, 2003

To: 

XML-Global Technologies, Inc.

C/O 1818 Cornwall Avenue - Suite 22

Vancouver, British Columbia

V6J 1C7 

From:

Xenos Group Inc.

95 Mural Street, Suite 201

Richmond Hill, Ontario

L4B 3G2 

The purpose of this Letter of Intent is as follows:

	 	
*
	
To summarize the basic elements of the proposed transaction to be evidenced by a final binding Definitive Agreement in form mutually satisfactory to the parties and executed on or before closing and subject to the laws of Ontario and the laws of Canada.

	 	
*
	
To set forth, generally, the rights and obligations of the parties. 

	 	 	
To provide a framework for the steps preceding and relating to the closing of the proposed transaction; and

	 	
*
	
To specify the nature and content of the documents to be signed at the closing.

Except for the provisions of paragraph 13 below, nothing in this letter of intent is a binding legal obligation to either party

Xenos Group Inc. (Xenos) shall acquire from XML-Global Technologies, Inc. (XML Global)  (i) all of the outstanding common shares of (representing one hundred percent (100%) of the issued and outstanding share capital of the company) Xtract Informatics Inc. (XML Canada), a British Columbia corporation which is the operating entity and (ii) all of the Intellectual Property Rights, Source Code, Documentation, Trademarks and Patents relating to the Software owned by XML Global and XML Canada ( Collectively "XML") (including but not limited to GoXML Transform, GoXML Registry, GoXML Messaging) on the following terms and conditions, and subject to Board approval, completion of due diligence and execution of a binding Definitive Agreement including material contracts listed on schedule "A".  For greater clarity, Xenos acquires all of the operating assets of XML and shall assume trade accounts payable, operating leases and other ongoing employment obligations (See "Employment Agreements" below). The principal assets would be all the intellectual property of XML Global and the shares and business assets of XML Canada.  XML Global would be responsible and hold Xenos harmless from claims arising from possible litigation exposure, income taxes payable and non-trade payables such as severance or any deferred compensation obligations. The parties may change the structure of the transaction to minimize taxes payable in respect of the transaction.

	
1.
	
The financial statements of XML Global and XML Canada shall be prepared as of June 30, 2003 and shall be true and accurate and disclose all material obligations of XML.  There shall be no material adverse change from the statement date to the closing date. At closing, XML Canada shall have liquid assets equal to its current liabilities or any negative balance shall be deducted from the cash otherwise payable.  

	
2.
	
There shall be no material deterioration of the business prospects of XML for the period prior to closing from those projected in the financial projections attached as schedule "B"

	
3.
	
XML shall have full and proper legal title to its Intellectual Property.

	
4.
	
The XML Canada entity shall have paid or made provision for all income taxes payable, non-trade payables such as severance, any deferred compensation obligations or any other non-operating obligations so that only the operating assets and operating liabilities shall be assumed by Xenos. 

	
5.
	
 Global and Xenos will execute a satisfactory indemnity agreement in favor of Xenos relating to any litigation exposure regarding the Intellectual Property and XML Canada for events occurring prior to the closing, provided that such litigation commences within 12 months of the transaction closing.

	
6
	
Garry Kupecz, Liang (Jack) Wang, Kai Xu, Hai Bo Fan and Jianwen Zhang and all other employees (see schedule "C") will each execute a suitable employment agreement with Xenos, which will supercede all previous agreements including, but not limited to, the "Developers Agreement" dated April 2003 and the employment contract of Garry Kupecz dated May 28, 2003. 

	
7
	
XML Global will receive for the aforementioned items, a) US $1,250,000 cash in the aggregate; provided that with the written consent of Xenos the escrowed shares can be disposed of and the escrow lifted b) 1,000,000 escrowed common shares of Xenos in the aggregate; and c) a price guarantee on the TSX market value of the shares of Xenos of C$3.50 after twelve months.  The price guarantee shall entitle XML Global to a one-time cash payment equal to the amount, if any, by which the 20 trading day average closing share price of Xenos shares prior to the one year anniversary of the closing of this transaction is less than C$3.50 multiplied by one million, being the number of shares tendered in this transaction. However, the share price difference under the price guarantee shall in no event exceed the difference between C$3.50 and the current TSX market price which shall be designated as C$2.16. Therefore, the maximum one-time payment shall be C$1.34 million. The price guarantee shall be null and void if there is a material misrepresentation by XML Global in any of the closing document or the Definitive Agreement.  The 1,000,000 shares will be placed in escrow for the one year period (the Escrow Period) and during that time XML Global and any of its subsidiaries shall not directly or indirectly sell or cause to be sold any shares of Xenos.  For greater clarity, the price guarantee shall become completely null and void should it be established that XML Global or any of its subsidiaries sold shares during the one year period and therefore contributed towards a greater one-time payment under the formula than might otherwise have been the result.  The shares shall be released from escrow following the Escrow Period and satisfactory determination of the price guarantee payment required, if any. It is the intent of the parties that Paradigm Group (including Paradigm Group II, LLC and Paradigm Millennium Fund, LP) will enter into an agreement such that Paradigm Group and its related parties will not sell shares of Xenos in the Escrow Period. Xenos and its insiders will not purchase shares of Xenos Group Inc. in the market during the final 30 days of the Escrow Period.

	
8
	
Prior to completion of formal documents Xenos shall complete a technical due diligence of the product source code and related documentation. Xenos will also complete a financial due diligence on the affairs of XML Canada (and XML Global where applicable) to confirm its current financial status and that all applicable US and Canadian state, provincial and federal sales and income taxes have been accounted for and paid. (Any overdue taxes or related penalties relating to prior years will reduce the amount of the cash consideration paid on closing.)

	
9
	
It is contemplated that XML Global shall provide Xenos with a directors' resolution approving the transaction (subject to shareholder and regulatory approval) and confirmation that a number of shares sufficient to complete the transaction shall be voted to confirm the transaction. It is the parties' intent that these documents will be delivered to Xenos by no later than July __, 2003.  

	
10
	
Following approval by the Boards of XML Global and Xenos, the parties shall make an appropriate mutually agreed joint public announcement . Xenos and XML Global shall make all reasonable efforts to expedite the closing of the transaction at the earliest date feasible, including holding a shareholders' meeting to approve the transaction as soon as possible.  In this regards both parties will provide full and timely co-operation in the preparation of a fairness opinion or any similar materials needed to complete this transaction.

	
11
	
XML Global shall be responsible for all vendor costs of the transaction including regulatory, shareholder or other approvals as required.  Xenos shall be responsible for all purchaser costs including due diligence and other transaction costs. 

	
12
	
The Closing of this transaction will be scheduled for on or before September 30, 2003 in the Richmond Hill offices of the Xenos Group Inc.

	
13
	
Until the earlier of (i)July 31,2003, or (ii)the execution of a Definitive Agreement and provided that this Letter of Intent shall not have been terminated by written notice by either party to the other, XML shall not without the consent of Xenos, offer, either directly or indirectly, or solicit, discuss, negotiate or consummate, or in any other way facilitate, either directly or indirectly,  a share exchange,  business acquisition,  or sale of assets not in the ordinary course of business or other business combination with any other person, firm or entity.

The Parties confirm the contents of this letter of intent and agree to proceed diligently to the closing of this intended transaction.

	 	
XENOS GROUP INC.

	 	
Per:__________________________

	 	
Stuart Butts, Chairman and CEO

	
Signed and accepted by XML-Global Technologies Inc.
	 
	
Prior to July 7, 2003
	
XML-GLOBAL TECHNOLOGIES, INC

	
Date:__________________________
	
_________________________________

	 	
Peter Shandro, Chairman

Appendix A

Material Agreements

	
1.
	
Agreement dated May 18, 2001, between XML Technologies, Inc. and iWay Software, an Information Builders Company governing iWay's rights to GoXML Transform.

	
2.
	
Termination Agreement and Mutual General Release dated May __ between XML_Technologies, Inc., XML-Global Technologies, Inc., Information Builders Inc. and iWay Software.

	
3.
	
Agreement dated April 17, 2003 between Duane Nickull and Matt MacKenzie, doing business as "Yellow Dragon Software" and XML Global Technologies, Inc. permitting Yellow Dragon to acquire certain intellectual property rights to GoXML Registry.

	
4.
	
Agreement dated April 17, 2003 between Duane Nickull and Matt MacKenzie, doing business as "Yellow Dragon Software" and XML Global Technologies, Inc. permitting Yellow Dragon to acquire certain intellectual property rights to GoXML Messaging.

	
5.
	
Agreement dated April 14, 2003 between Liang Wang, Kai Xu, Hai Bo Fan, Jianwen Zhang (the "Developers" and XML Global Technologies, Inc. and its wholly-owned subsidiary Xtract Informatics, Inc. assigning certain transformation technology to XML.

	
6.
	
Agreement dated April 14, 2003 the Developers and Xtract Informatics, Inc. governing the Developers' employment.

	
7.
	
Amendment A, dated May 15, 2003, to the April 14 employment agreement with the Developers. 

	
8.
	
Letter agreement dated May 28, 2003 between Xtract Informatics Inc. and Garry Kupecz concerning Mr. Kupecz' employment terms.

	
9.
	
Joint Venture Technology Agreement between XML-Global Technologies, Inc., Gnosis, Inc. and David R. R. Webber dated as of November 18, 1999

	
10.
	
Consulting Agreement between Data Xchg, Inc. and David Webber

	
11.
	
License Agreement between DataXchg, Inc. and XML-Global Technologies, Inc.

	
12.
	
Agreement between << GSA >> and XML-Technologies, Inc. dated _____. This agreement is being transferred to Xtract Informatics, Inc.

	
13.
	
Lease agreement dated __ in respect of XML Canada's office premises.

	
14.
	
Agreement between Telus and Xtract Informatics Inc. governing Internet bandwidth.

	
15.
	
Agreement dated __ between John Allen and XML-Technologies, Inc.

	
16.
	
Sales Compensation Agreement dated April 23rd, 2003, between XML-Global Technologies, Inc. and K&I International Co., Ltd.

Appendix B

Financial Projections

Appendix C

List of Employees

	
Name
	
Position

	
Garry Kupecz
	
Chief Operating Officer

	
Kai Xu
	
Director of Engineering

	
Liang Want
	
Director of Technology

	
Hai bBo Fan
	
Senior Software Developer

	
Patrick Tan
	
Customer Support

	
Jiamen Zhang
	
Pending hire

	
Jeremy Gow
	
Senior Account Executive

	
Colin Briggs
	
Senior Account Executive

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