Document:

Exhibit 10.11

 

{Note: A “[*]” indicates that material has been omitted pursuant to a
request for confidential treatment and that the material has been filed
separately.}

 

DEVELOPMENT AND MANUFACTURING AGREEMENT

 

This
Development and Manufacturing Agreement dated February 10, 2005, is
entered into by ICOP DIGITAL, INC., a corporation organized and existing under
the laws of the State of Colorado with its principal place of business located
at 11011 King Street, Suite 260, Overland Park, KS 66210, USA (“ICOP DIGITAL”),
and TIETECH CO., LTD, a corporation organized and existing under the laws of
Japan with its principal business address at 2-13-1, Chikama-dori, Minami-ku,
Nagoya, Aichi, Japan 457-0071  (“TIETECH”)
and, each of whom is individually referred to as a “Party” and both of whom are
sometimes collectively referred to as “Parties.”

 

RECITALS

 

A.  ICOP DIGITAL is engaged in the
business of inventing, engineering, and marketing devices for law enforcement
and homeland security, including the device described herein. TIETECH has
experience and expertise in the engineering, and manufacture of information
communication equipment and other electronic devices.

 

B.  Upon and subject to the terms
and conditions of this Agreement, ICOP DIGITAL has retained TIETECH’s services
to provide development services for the development of the ICOP Model 20/20
digital video recording system (the “Product”) and to fabricate prototypes of
the Product for verification testing and test validation; and since the
prototypes have passed the System Verification requirements (as defined below),
ICOP DIGITAL now desires to retain TIETECH to manufacture the Product for
delivery to ICOP DIGITAL. ICOP
DIGITAL
shall sell the Product exclusively in the world, and TIETECH shall manufacture the Product exclusively in the world, and TIETECH shall manufacture the Product exclusively for ICOP DIGITAL.

 

ARTICLE I

 

1.1  SCOPE OF WORK AND
DEVELOPMENT. TIETECH has (a) completed the electronic design of the
Product in cooperation with, and in accordance with the specifications set
forth by ICOP DIGITAL, and (b) accomplished System Verification Testing on
the entire Product in cooperation with, and in accordance with the
specifications set forth by ICOP DIGITAL. Both Parties agree that the Purchase
Orders issued to date for said work are valid and binding, and that the balance
due of NRE shall be paid in accordance to the Payment Schedule defined in
Appendix IV.

 

1.2  DESIGN AND DEVELOPMENT — REVIEW AND CHANGES.
ICOP DIGITAL and TIETECH will hold ongoing design reviews in accordance with
its standard development operating procedures, via email. Changes in Project
Specifications will be by mutual consent. TIETECH agrees to use its best
efforts to accommodate ICOP DIGITAL on such changes in scope and/or specifications
as

 

 

may be reasonably requested by ICOP DIGITAL
with appropriate changes (as pre-approved by ICOP DIGITAL) in the purchase
orders.

 

1.3  SYSTEM VERIFICATION
TESTING.  For all systems designed by
TIETECH per the instructions of ICOP DIGITAL, TIETECH shall draft appropriate
verification protocol and perform the testing in Accordance with that protocol.
ICOP DIGITAL shall author the system verification protocol and ICOP DIGITAL
shall accomplish software verification and validation of the Product (“System
Verification Testing”). Third party (independent qualified testing facility)
testing, in addition to related test materials, as shall be approved in advance
by ICOP DIGITAL, shall be paid by ICOP DIGITAL, and shall be an agent of ICOP
DIGITAL. Test materials shall be the exclusive property of ICOP DIGITAL and
TIETECH will not use them except as needed to perform hereunder. ICOP DIGITAL
will collect and/or prepare for TIETECH data including vibration, shock,
temperature, etc. of the actual environment where the product will be used.
ICOP DIGITAL will also perform operation verification during and at the end of
development, operation verification on the actual test drive (field test), life
and durability test, and the final acceptance tests.

 

1.4  REJECTION OF WORK.  Should ICOP DIGITAL determine that any
verification or testing of TIETECH’s work does not conform to applicable
specifications, then ICOP DIGITAL shall (i) notify TIETECH of such
problems; and (ii) permit TIETECH a reasonable opportunity to make any
necessary corrections. TIETECH shall resubmit to ICOP DIGITAL revised testing
or other work corrected to meet the relevant specifications within thirty (30)
days of notice to TIETECH. ICOP DIGITAL shall have thirty (30) days after such
resubmittal within which to notify TIETECH in writing of ICOP DIGITAL’s
approval of the corrected work or of ICOP DIGITAL’s discovery of any additional
discrepancies between that work and the relevant specifications. If
discrepancies still exist, ICOP DIGITAL and TIETECH shall decide the
appropriate action to be taken by mutual Agreement, in advance.

 

1.5  TOOLING AND FIRST ARTICLE SAMPLES.  Tooling will be approved by ICOP DIGITAL and
invoiced by TIETECH at cost as those costs are incurred. Design and procurement
of tooling for injection molded plastic parts is the responsibility of TIETECH.
TIETECH warrants that the life cycle of the tooling shall be as defined in
Appendix V of this Agreement. Should any tooling require replacement, prior to
the warranted life cycle, TIETECH shall replace the tooling and TIETECH shall
be responsible for cost of placement. ICOP DIGITAL will utilize TIETECH’s
established vendors when TIETECH needs, provided that pricing and quality are
competitive and approved by ICOP DIGITAL. TIETECH is responsible to qualify all
vendors per their system requirements. ICOP DIGITAL can request, and TIETECH
shall provide, a re-quote, lead times, and price breaks for any and all
component parts (units such as
camera or cable). TIETECH shall work with its own vendors to
purchase component parts as needed, if approved by ICOP DIGITAL; and ICOP
DIGITAL has the option to replace and/or provide component parts to TIETECH,
upon mutual agreement. ICOP DIGITAL shall supply the compression chip sets to
TIETECH at ICOP DIGITAL’s own expense.

 

 

1.6  COMPENSATION FOR PRODUCT
DEVELOPMENT. In consideration for the services rendered by TIETECH for Product
Development, ICOP DIGITAL shall pay to TIETECH compensation as defined in
Appendix IV.

 

1.7  CONFIDENTIAL INFORMATION.  “Confidential Information” means,
without limitation, all information pertaining to the business of ICOP DIGITAL
and TIETECH including, but not limited to, the Product invention, ideas, trade
secrets, know-how, research and development, training, software, programs,
hardware configuration information, price lists, data, manuals, handbooks,
sponsors, investors, business strategies and plans, marketing, sales records,
drawings, specifications, designs, materials, parts lists, customer lists,
consumer information, suppliers, contract terms, test criteria, vendor lists,
financial information, intellectual property, and all other information or data
of any kind or character relating to the business of ICOP DIGITAL or TIETECH,
including but not limited to, any invention, writing, idea, discovery, or
improvement made or conceived by ICOP DIGITAL or TIETECH directly or indirectly
as a result of performing work for ICOP DIGITAL pursuant to this Agreement,
whether or not reduced to writing, and which is not generally available to the
public. However, Confidential Information shall not include any of the
foregoing which has become publicly known and made generally available through
no wrongful act of TIETECH or any third party. Prior
to execution of this Agreement; the parties have executed the Mutual
Nondisclosure Agreement attached hereto as Appendix I. In the event there is a
conflict between the terms of the Mutual Nondisclosure Agreement and this
Agreement, this Agreement shall govern.

 

1.8  TECHNOLOGY OWNERSHIP.  The parties agree as follows:

 

(a)          ICOP
DIGITAL shall own all “Project Technology” which shall be defined as: all
inventions, improvements, discoveries, designs, data, concepts, ideas,
processes, methods, techniques, know-how, and information, including
schematics, and engineering drawings respecting the Products conceived, made or
produced by TIETECH during the course of performing design, engineering,
fabrication or manufacturing services under this Agreement, or made or produced
as the result of the joint efforts of TIETECH and ICOP DIGITAL pursuant to this
Agreement.  The term “Project Technology”
shall exclude any of TIETECH’s or ICOP DIGITAL’s proprietary processes used in
the manufacture of the Product, as defined in the attached summary of Tietech
or ICOP DIGTAL patents “Core Technology” (Appendix II). TIETECH agrees to
transfer all project technology, and schematics (in English), to ICOP DIGITAL
when the total NRE outstanding of ¥134 million has been paid in full.

 

(b)         TIETECH
shall own all of its “Technology and Manufacturing Processes” which shall be
defined as follows:  its proprietary
electronic technology and processes and know-how and assembly and manufacturing
processes and technology and know-how, including such technology and know-how
concerning (i) developed or acquired by TIETECH prior to the exercise of
this Agreement.

 

(c)          Nothing
in this Agreement shall be deemed to prevent TIETECH from engaging in the
design, engineering, fabrication or manufacture of products embodying or using
TIETECH’s Technology and Manufacturing Processes; provided that such products
do not embody or use any of

 

 

ICOP
DIGITAL’s confidential information or Project Technology. TIETECH shall not
produce, or allow to be produced Product with the scope of ICOP DIGITAL’s Core
Technology, without ICOP DIGITAL’s prior approval, and if approved, the payment
of a patent fee (royalty fee) shall be payable to ICOP DIGITAL, as defined by
ICOP DIGITAL. TIETECH shall put the production of the Product out to
subcontractors as needed, as pre-approved by ICOP Digital. If joint patents are filed in the future, ‘ICOP
DIGITAL and TIETECH shall share
the costs of filing these patents equally.

 

1.9  PRIORITY AMONG CONTRACT
DOCUMENTS.  The whole of this Agreement
and Appendixes attached hereto are to be taken together so as to give effect to
very part thereof to the maximum extent practicable, with each document helping
to interpret the other.  In the event of
any conflict or inconsistency between the terms of this Agreement and the terms
of any other document, the terms of this Agreement shall prevail.

 

ARTICLE 2

MANUFACTURING OBLIGATIONS

 

2.1  MANUFACTURING.  During the term of this Agreement, TIETECH
shall timely manufacture the Product in compliance with the Product
Specifications described in Appendix III (the “ Product Specifications”).  Both
during the term and following termination of this Agreement, in perpetuity,
TIETECH shall not supply the Product (or any prototype thereof), or Product
Specifications, to any third party whatsoever. ICOP DIGITAL shall not manufacture the Product by itself, and ICOP
DIGITAL shall not request the production of the Product other than TIETECH.

 

2.2  PURCHASE ORDERS.  ICOP DIGITAL shall provide a six-month
rolling forecast which shall be updated at the end of each calendar month.  The first three months of this forecast will
be a firm commitment for TIETECH to deliver and for ICOP DIGITAL to accept
deliveries.  ICOP DIGITAL shall issue a
purchase order for each lot of product purchased, and shall order in minimum
quantities of 1,000 DVR, DAVID chip sets, and hard disk drives (“Units”). The
minimum lifetime production shall be 10,000 Units, not to be purchased later
than December 31, 2008. The parties shall cooperate to purchase long lead
items and obtain quantity discounts beyond the three-month rolling forecast
described in Paragraph 2.1.

 

2.3  SHIPMENT.  The delivery of each Purchase Order shall be
within the time specified in the Purchase Order.  All deliveries to ICOP DIGITAL are F.O.B.
Nagoya, Japan, at point of manufacture using carriers and billing account
numbers as specified in writing by ICOP DIGITAL. All risk of loss after
shipment by TIETECH is borne by ICOP DIGITAL. TIETECH agrees to properly label
all shipping documents with the U.S. Classification Codes as supplied by ICOP
DIGITAL to expedite processing through U.S. Customs. If TIETECH fails to
properly note said U.S. Classification Codes, resulting in import taxes due by
ICOP DIGITAL, TIETECH shall be responsible to reimburse ICOP DIGITAL for all
such taxes, due and payable upon evidence shown to TIETECH by ICOP DIGITAL.

 

 

2.4  PURCHASE ORDER
CANCELLATION.  In the event ICOP DIGITAL
cancels a Purchase Order and TIETECH has complied with its obligations under
this Agreement, ICOP DIGITAL shall purchase the next three months of production
identified in the rolling forecast plus any excess inventory (i.e. component
parts) which was ordered in excess of that three-month requirement and mutually
agreed upon by the parties as set forth in accordance with Paragraph 2.2. In
this case, the $1 million ICOP DIGITAL has on deposit with TIETECH shall be
applied to the purchase of the production component parts and work in process,
and any remaining balance of NRE.

 

2.5  PRICING.  ICOP DIGITAL shall pay for development and
production of the Product as defined in the Payment for Products and Services
(Appendix IV).

 

2.6  PAYMENT.  ICOP DIGITAL shall pay TIETECH in accordance
with attached Payment for Products and Services (Appendix IV).

 

2.7  WARRANTY.  TIETECH warrants and represents that it shall
strictly adhere to the Product Specifications set forth in Appendix III
attached hereto and by reference made a part hereof. TIETECH warrants and
represents that it has the requisite and necessary experience, all necessary
licenses and permits, equipment, facilities and personnel to properly perform
the manufacturing services in accordance with the Product Specifications, and further warrants and represents that it is
not a party to any other Agreement that would in any way conflict with, or
restrict, its ability to perform the manufacturing services. During the 18-month
term of the warranty (as defined in Paragraph 2.8) TIETECH assumes full
responsibility for the repair or replacement of units in the field whereby greater
than 10% of units exhibit one specific failure mechanism (“Catastrophic Failure”).

 

2.8  DEFECTIVE PRODUCTS.  TIETECH warrants for a period of eighteen
(18) months from shipment that all Products sold to ICOP DIGITAL shall be free
from any defects in TIETECH design, materials, and workmanship, and shall
conform to Product Specifications. ICOP DIGITAL agrees that TIETECH’s warranty
shall exclude the removable hard disk drive. 
Warranty repair services shall be provided at TIETECH’s manufacturing
facilities in Nagoya, Japan, free of charge, F.O.B. Overland Park. TIETECH
shall within two weeks of receipt of returned products provide a report to ICOP
DIGITAL detailing those products accepted under warranty and any that are not
accepted under warranty due to physical damage or improper use. TIETECH will
use its best efforts to repair defective products as quickly as possible with “turnaround
time” (time for repair after receipt of units) to be four (4) weeks from
receipt at the TIETECH facility. Shipment of the repaired or replaced warranted
products to ICOP DIGITAL’s Overland Park location shall be at the expense of
TIETECH. Shipment of the repaired or replaced non-warranted products to ICOP
DIGITAL’s Overland Park location shall be at the expense of ICOP DIGITAL. ICOP
DIGITAL shall establish a U.S. Customer Service Center, to respond to customer
complaints and provide repairs where practical. TIETECH shall provide ICOP
DIGITAL with technical information necessary for such repairs. In the event a
product modification shall become necessary, Tietech shall make such
modifications, as approved by ICOP DIGITAL, at a separate cost borne by ICOP
DIGITAL. For non-warranted repairs,
TIETECH shall report to ICOP DIGITAL an estimated time to repair failed units,
and shall not proceed with repairs until such time that ICOP DIGITAL has
provided

 

 

approval for
said repairs. For problems due to incorrect
use of the Product, or factors external to the Product, or repairs for
unwarranted units, TIETECH shall repair at a separate cost borne be ICOP
DIGITAL, at a billing rate of ¥6000 per hour. TIETECH shall repair or exchange,
and ship to ICOP DIGITAL, the returned Product within four (4) weeks of
receipt of Product by TIETECH.

 

2.9  PRODUCTION TOOLING AND
FIXTURES.  ICOP DIGITAL shall pay for and
retain title to any production tooling. 
TIETECH shall be responsible for periodic maintenance costs associated
with tooling, until Product is discontinued.

 

2.10  CHANGE OF CONTROL.  In the event that ICOP DIGITAL is acquired or
merges with another organization, after ¥134 million NRE is paid in full and
USD $1 million has been deposited with TIETECH as described in Appendix IV.
whereby, directly or indirectly, control in excess of 50% of the Company or all
or substantially all of its business or assets is acquired by a third party in
a sale or exchange of stock, merger or consolidation, sale of assets or other
similar transaction and the successor corporation desires to be released from
this contract, the following shall apply: 
(a) ICOP DIGITAL or the successor corporation doesn’t need to pay
any additional expense other than balance of NRE and purchasing cost for the
minimum lifetime production as specified in paragraph 2.2 and ICOP DIGITAL
shall hand over to the organization who has the ability to fulfill this
agreement, and (b) the successor corporation shall be responsible for the
three guaranteed months of firm product deliveries and parts specified in
paragraph 2.2, balance of NRE due to TIETECH and lifetime minimum production requirements
(as specified in paragraph 2.2). TIETECH will then be free to approach the new
organization and negotiate the possible continuation of manufacturing for the
Product.

 

ARTICLE 3

REGULATORY RESPONSIBILITY; TRADEMARKS; SALES

 

3.1  REGULATORY APPROVALS.  ICOP DIGITAL shall undertake and be
responsible for the procurement of any and all regulatory approvals and/or
registrations and customs approval necessary for sale of the Product.  ICOP DIGITAL shall be responsible for
complying with the U.S. Federal Communications Commission (FCC) and the
regulations promulgated there under for sale of the Products under ICOP DIGITAL’s
private label in the United States (“FCC Approval”).  TIETECH shall aid and cooperate with, where
appropriate, ICOP DIGITAL in fulfilling the responsibilities set forth in this
paragraph.

 

3.2  TIETECH’S
QUALIFICATIONS.  TIETECH is ISO 9001
certified and shall notify ICOP DIGITAL of any change in that status during the
term of this Agreement.  Should TIETECH
lose its status as ISO 9001 certified, it shall have a period of 30 days to
have the certification reinstated and if not reinstated within this cure
period, ICOP DIGITAL shall have the right to terminate this contract in
accordance with paragraph 5.3.

 

3.3  TRADEMARKS.  ICOP DIGITAL shall have the sole right to
prepare, file, prosecute and maintain trademark applications or registrations
with respect to the Product.  All such
applications and

 

 

registrations
shall be at ICOP DIGITAL’s expense.  ICOP
DIGITAL shall retain ownership of these applications and registrations
throughout the term of this Agreement and thereafter.  TIETECH shall from time to time, as ICOP
DIGITAL may deem appropriate, execute and deliver to ICOP DIGITAL any documents
of transfer or assignment relating to the Product and cooperate fully in
obtaining whatever approval or product protection that ICOP DIGITAL may deem
desirable or appropriate.

 

3.4  PUBLIC RELEASE OF
INFORMATION.  Any public statement,
verbal or written, regarding the other party shall be approved by the other
party in advance.  The foregoing shall
not prevent either party from issuing a press release or making a public filing
where required by law.

 

3.5  TIETECH shall pay ICOP DIGITAL a royalty in the amount of [*]% of the price ICOP pays to TIETECH (as
defined in Appendix IV) for each part sold. TIETECH shall not sell any ICOP Model 20/20, or version thereof, outside of Japan.
TIETECH shall provide a listing of all ICOP DIGITAL parts sold and shall make payments for the
previous month’s sales to ICOP DIGITAL not later than the last business day of
each month by wire transfer, in Japanese Yen. TIETECH may sell through
distributors only for sales whereby the end users located are in Japan, and
TIETECH must require in their sales agreement that the distributor(s) may not
sell to anyone outside of Japan. TIETECH must be able to end the contact at any
time with such distributors, in the event that the distributor does not honor
the contract terms.

 

ARTICLE 4

PRODUCT LIABILITY

 

4.1  NOTICE OF PRODUCT LIABILITY
CLAIMS.  Each Party shall notify the
other promptly in writing of any product liability claim brought with respect
to the Product based on alleged defects in the design, manufacture, packaging,
or labeling of the Product or other adverse claim regarding the Product.  Upon receiving such written notice, ICOP
DIGITAL shall assume and have sole control of the defense of any such claim,
including the power to conduct and conclude any and all negotiations, compromises
or settlements.  TIETECH shall promptly
comply with all reasonable requests from ICOP DIGITAL for information,
materials or assistance with respect to the conduct of such defense.

 

4.2                                 NOTICE OF INVESTIGATION.  TIETECH and ICOP DIGITAL shall promptly
notify each other of any potential or actual investigation or governmental
activity relating to the Product.

 

4.3                                 TIETECH agrees to reimburse ICOP DIGITAL for
any and all monies paid to TIETECH by ICOP DIGITAL for inventory which is lost
or damaged due to a natural disaster which destroys inventory owned by ICOP
DIGITAL at TIETECH’s facility.

 

 

ARTICLE 5

TERM AND TERMINATION; FORCE MAJEURE

 

5.1  INITIAL TERM.  Unless terminated sooner pursuant to the
further provisions of this Article, this Agreement shall expire five years from
the date hereof.

 

5.2  EXTENSIONS.  ICOP DIGITAL has three successive options to
extend the term of Agreement for a period of one (1) additional year (an “Extension
Period”).  ICOP DIGITAL’s right to
exercise each option to extend the Agreement for another year is expressly
conditioned upon ICOP DIGITAL not being in default under this Agreement at the
time the option is exercised and not being in default between the time the
option is exercised and the start of the Extension Period.

 

5.3  TERMINATION BY ICOP
DIGITAL.  ICOP DIGITAL shall have the
right to terminate this Agreement if TIETECH fails to perform in accordance
with this Agreement and its appendices and fails to cure such default within
sixty (60) days of written notice.

 

5.4  TERMINATION BY TIETECH.  TIETECH shall have the optional right to
terminate this Agreement on written notice to ICOP DIGITAL if ICOP DIGITAL (a) has
failed to make any payments required by this Agreement in the time provided
therefore and (b) following sixty (60) days’ notice of such failure from
TIETECH, ICOP DIGITAL does not pay all delinquent sums in full.

 

5.5  TERMINATION BY EITHER
PARTY.  In addition to their respective
rights set forth in paragraphs 5.3 and 5.4, either party shall have the right
to terminate this Agreement on written notice to the other party under the
following circumstances:

 

(a)  by mutual Agreement;

 

(b)  if the other party materially defaults in the performance of
any material obligation hereunder, and such default continues for more than
thirty (30) business days after receiving written notice from the other party
of such default; provided, however, there shall be no default under this
provision if the defaulting party has cured the default within sixty (60)
business days after the giving of notice;

 

(c)  in the event that the other party is declared insolvent, or
bankrupt by a court of competent jurisdiction, or a voluntary petition of
bankruptcy is filed in any court of competent jurisdiction by such other party,
or such other party shall make or execute an assignment for the benefit of
creditors, or a receiver is appointed by a court of competent jurisdiction over
all or a substantial portion of the other party’s assets and such receivership
is not dismissed within 30 days of appointment, or

 

(d)  in the event of the issuance of a final order, decree or other
action by any competent judicial authority or governmental agency which
restrains, enjoins or prohibits the sale or introduction into interstate
commerce of the System and such restraint, injunction or prohibition is not
vacated within 30 days thereafter.

 

 

5.6  SURVIVAL.  The termination or expiration of this
Agreement shall be without prejudice (a) to the rights of any party to
receive upon its request all payments accrued and unpaid, or all documents,
data and deliverables not delivered, as of the date of such expiration or
termination; (b) the rights and remedies of either party with respect to
any previous breach or default under any representation, warranty or covenant
herein contained; (c) rights under any other provision of this Agreement
which expressly and necessarily calls for performance after expiration or
termination, and (d) TIETECH
shall not produce, nor allow to be produced, the Product.

 

5.7                                  FORCE MAJEURE. 
If the performance of this Agreement or of any obligation hereunder is
prevented, or restricted or interfered with by reason of any event of Force
Majeure, the Party so affected, upon prompt notice to the other Party, shall be
excused from performance, but only for the duration of such inability, provided
that the Party so affected shall use its best effort to avoid or remove such
causes of nonperformance, and shall continue performance hereunder with the
utmost dispatch whenever such causes are removed.

 

ARTICLE 6

INDEMNITY

 

6.1  TIETECH INDEMNITY.  TIETECH agrees to indemnify, defend and hold
harmless ICOP DIGITAL or any of their respective customers, against any claim
arising out of or relating to any loss or damage, including bodily injury or
death, incurred by reason of or resulting from a defect in the product caused
by TIETECH’s design, engineering, fabrication, manufacture, packaging or
labeling thereof; provided that the Product is used for its intended purpose.
TIETECH shall not be required to pay any compensation for damages, loss or cost,
which are due to loss of sales opportunity. TIETECH
shall not be responsible for the loss of recorded data unless due to Product
defect which was made intentionally or due to gross negligence by TIETECH.

 

6.2  ICOP DIGITAL’S INDEMNITY.
ICOP DIGITAL agrees to indemnify, defend and hold TIETECH harmless against any
claim arising out of or relating to any loss or damage, including bodily injury
or death, incurred by reason or resulting from any defect in the Product, which
is not caused by reason of or resulting from a defect in the Product
proximately caused by TIETECH’s design, engineering, fabrication, manufacture,
packaging or labeling thereof, provided that the Product is used for its
intended purpose.

 

ARTICLE 7

MISCELLANEOUS

 

7.1  NOTICES.  Any notices required or permitted to be given
to a Party hereunder:

(a)  shall be in writing;

(b)  shall be delivered or sent to such Party at its address given
below:

 

 

(i)  if to TIETECH:

TIETECH, CO, LTD.

2-13-1,
Chikama-dori,

Minami-ku, Nagoya, Aichi, Japan 457-0071

Attn:  Mr. Toshiaki Nomura, Sr., President

Telephone:  81-52-824-7373

Facsimile:  81-52-824-7300

 

(ii) if to ICOP DIGITAL:

ICOP DIGITAL, INC.

11011 King Street, Suite 260

Overland Park, KS 66210 USA

Attn:  Mr. David
C. Owen, President and CEO

Telephone: (913) 338-5550

Facsimile: (913) 469-1662

 

or such other address as such Party may hereafter specify; and

 

(c)  shall be deemed given (i) when personally delivered to
such Party; (ii) when transmitted by facsimile and receipt of such
transmission is confirmed by facsimile; (iii) after air courier service
confirm the receipt via an established air courier service; or (iv) if
mailing via certified airmail, after receipt is confirmed.

 

7.2  ATTORNEYS’ FEES.  In the event of any litigation, arbitration, judicial
reference or other legal proceeding involving the Parties to this Agreement to
enforce any provision of this Agreement, to enforce any remedy available upon
default under this Agreement, or seeking a declaration of the rights of either
Party under this Agreement, the prevailing Party shall be entitled to recover
from the other such attorneys’ fees and costs as may be reasonably incurred,
including the costs of reasonable investigation, preparation and professional
or expert consultation incurred by reason of such litigation, arbitration,
judicial reference, or other legal proceeding.

 

7.3  ARBITRATION. All disputes,
controversies, or claims arising out of or relating to this contract shall be
submitted binding arbitration. If ICOP DIGITAL submits a claim against TIETECH,
it shall be settled in accordance with the applicable rules of the Japan
Commercial Arbitration Association then in effect. If TIETECH submits a claim
against ICOP DIGITAL, it shall be settled in accordance with the applicable rules of
the American Arbitration Association then in effect.

 

7.4  GOVERNING LAW. Tietech and ICOP DIGITAL agree that the arbitration to resolve any
dispute or claims arising out of or related to this Agreement or a Specific
Agreement shall be as follows:

a.
in the event of ICOP DIGITAL initiates such proceeding against Tietech , it
must do so in the Japan Commercial Arbitration Association, and ,it is applied the laws of Japan, and

b.
in the event of TIETECH initiates such proceeding against ICOP DIGITAL, it must
do so in

 

 

the American Arbitration Association, and it is applied the laws of Kansas, the United States of America.

 

 

	
  ICOP DIGITAL, INC.

  	
  TIETECH CO., LTD.

  
	
  a
  Colorado corporation

  	
  a Japanese corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  David C. Owen

  	
   

  	
  By:

  	
  /s/ Toshiaki Nomura, Sr.

  	
   

  
	
   

  	
  David
  C. Owen

  	
   

  	
  Toshiaki Nomura, Sr.

  
	
   

  	
  President
  and CEO

  	
   

  	
  President

  
						

 

Exhibit 10.11

 

Appendix I

 

Mutual
Nondisclosure Agreement

 

A-1

 

Mutual Nondisclosure
Agreement

 

In connection with a
proposed business relationship, ICOP Digital, Inc., a Nevada Corporation and
Tietech Co., Ltd., a Japanese Corporation have disclosed or may disclose to
each other certain business or technical information relating to each party
and/or their products and/or has provided the other party or may provide the
other party with product samples or prototypes (“Proprietary Information”).

 

In consideration of any
disclosure of information, provision of product samples or prototypes and any
negotiations concerning the proposed business relationship, the undersigned
agree as follows:

 

1.                                       Each party will hold in confidence and not
use (except to evaluate the proposed business relationship) or disclose any
Proprietary Information except information it can document (a) is in the public
domain through no fault of theirs, (b) was properly known to it, without
restriction, prior to disclosure by the other party, or (c) was properly
disclosed by another person without restriction.  In addition, neither party will copy, alter,
modify, reverse engineer, or attempt to derive the composition or underlying
information of any Proprietary Information. Each party acknowledges and agrees
that, as between them, all Proprietary Information and all copies thereof are
owned solely by that party which has disclosed the Proprietary Information.

 

2.                                       If either party decides not to proceed with
the proposed business relationship or if asked by the other party, it will
immediately cease all use of and return all Proprietary Information and all copies
and extracts to the other party.

 

3.                                       Each party will immediately notify the other
party of any unauthorized release of Proprietary Information.

 

4.                                       Each party acknowledges and agrees that for a
period of three (3) years from the date this Nondisclosure Agreement is
accepted, each party will maintain all Proprietary Information in confidence
and will refrain from using any such Proprietary Information for any purpose,
unless so authorized in writing by the other party.

 

5.                                       Each party understands that this
Nondisclosure Agreement does not obligate the other party to disclose any
information or provide any product samples or prototypes to it, or negotiate or
enter into any agreement or relationship with it.

 

6.                                       Each party acknowledges and agrees that due to
the unique nature of the Proprietary Information, there can be no adequate
remedy at law for any breach of its obligations hereunder, that any such breach
may allow one party or third parties to unfairly compete with the other party
resulting in irreparable harm to the non-breaching party and, therefore, that
upon any such breach or threat thereof, the non-breaching party shall be
entitled to injunctions and other

 

A-2

 

appropriate equitable relief in addition to whatever
remedies it may have at law. In addition, if the non-breaching party prevails
in any legal dispute hereunder, it shall be entitled to collect its reasonable
attorneys’ fees and expenses.

 

7.                                       Tietech shall be entitled to subcontract any
part of the development to third parties/party and shall be responsible for the
observance of this Nondisclosure Agreement by such third parties/party.

 

8.                                       This Nondisclosure Agreement shall be
governed and construed under the laws of the State of New York and the U.S.
Federal without regard to conflict of laws provisions thereof. The sole
jurisdiction and venue for actions related to the subject matter hereof shall
be the New York state and U.S. federal. Each party consents to the jurisdiction
of such courts.

 

Acknowledged and agreed:

 

	
  Company:

  	
  ICOP Digital, Inc.

  	
  Company:

  	
  TIETECH CO., LTD.

  

 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Ross

  	
   

  	
  By:

  	
  /s/ Toshiaki Nomura

  	
   

  
	
   

  	
  Charles A. Ross

  	
  Toshiaki Nomura

  
	
   

  	
  Chief Executive Officer

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  February 21, 2003

  	
  Date: February 21, 2003

  	
   

  
								

 

A-3

 

Appendix II

 

Core
Technology

 

TIETECH’s Core Technology

 

These
patents are patents pending, published/not published patents and preparing to
be applied.  Following are summary of the
contents of these patents.

 

On
the published patents, you can read the details in English on the server of
Japanese patent office.

http://www19.ipdl.jpo.go.jp/PA1/cgi-bin/PA1SEARCH.B

Search
formula Please search at TIETECH AND (H04N5/91 H04N5/907 H04N5/781 H04N5/765)

It
included the patent not related to DVR technology, you can access 8 patents

 

1.               Simultaneous pursuit of still image
compression and moving image compression

Application NO.: H10-250284

Publication NO. : 2000-050252 Image recording method

It distributes the video signal to 2 types from one
camera.

On type 1, a video signal is compressed on a still
image and saved to memory 1.

On type 2, the video signal is compressed on a
moving image and saved to memory 2.

 

2.               HDD sequential record

Application NO.:2001-65762

Publication NO.:2002-230952 Data record method to
the HDD.

The control part of the DVR records image file per
sector in order of address along the track of HDD.

On the header of the image file, index information
for the searching should be inserted.

It is a method that after writing a file on the
sector of HDD, it writes next file on the adjacent sector.

Since the move of the head is small, it is possible
to write and read at high speed.

It confronts with data recording of FAT structure.

 

3.               Simultaneous recording playing back

Application NO.: 2002-301106

Publication NO.:2004-104738  Still image data recording and playing back
device.

Implementing buffer memory 1 for writing and buffer
memory 2 for reading on the DVR,

And buffer memory 1 and buffer memory 2 have
structure and capacity to be able to record and play back simultaneously to the
HDD.

 

4.               Pre-recording method

Application NO.: H10-126570

Publication NO.:11-289514    Image memory method on the monitoring
system.

This is monitoring system by multiple Cameras and
each camera image is over-recorded endlessly (pre-recording) on each ring
buffer memory. During pre-recording, if one camera generates an

 

A-4

 

alarm, it will record the image by using buffer
memory area of another camera.

 

[*]

 

A-5

 

Note:
Above No. [*] through [*] are the subjects which is already done in ‘Report to
apply patent to ICOP’.

 

ICOP DIGITAL’s Core Technology

 

Below
is a listing of a summary of ICOP DIGITAL patents pending at the time of this
Agreement, for a Digital Video Recorder, which is...

a.                                       To be inserted in the dash of the vehicle

b.                                      [*]

c.                                       Comprising a Global Positioning System (GPS)

d.                                      [*]

e.                                       [*]

f.                                         [*]

g.                                      “Mark” feature puts an “M” embedded into the
video to identify several frames with GPS coordinates

h.                                      Utilize existing connector from vehicle radio
(existing wire harness with connector) to easily have switched and unswitched
voltages, grounds, and speaker connections.

i.                                          Second camera has a mirror option for viewing
vehicles as normally seen in rearview mirror.

 

A-6

 

Appendix III

 

Product Specifications

 

[*]
(4 pages omitted)

 

A-7

 

2.              Composition of a system

The
composition of a whole system is shown in the following figure.

 

 

A-11

 

3.              Appearance Figure

Main unit
appearance figure <front view>

The
keypad is silicon rubber key top.

 

 

Main unit
appearance figure   <front panel
opening>

 

 

A-12

 

[*]
(25 pages omitted)

 

 

 

Appendix
IV

 

Payment for Products and Services

 

1.               Payments
shall be made by ICOP DIGITAL to TIETECH by wire transfer. Once a payment is
received, it shall not be refundable. Payments shall be in Japanese Yen.

 

2.               ICOP
DIGITAL will make a USD $1 million advance payment to TIETECH for component
parts to protect TIETECH on component parts. The USD $1 million advance payment
will be made when ICOP DIGITAL receives the proceeds of a secondary offering
from Paulson Investment Company, Inc. (Investor), which is expected to be after
100 units has been delivered to ICOP DIGITAL by TIETECH, and satisfactory
performance has been verified by ICOP DIGITAL and Investor. The USD $1 million
shall be deemed a credit for ICOP DIGITAL on TIETECH’s accounting records. Both
parties agree to review the payment method in the future based on ICOP
DIGITAL’s financial capabilities.

a.               ICOP DIGITAL
shall increase the advance payment to a total of USD $1.5 million if a purchase
order is for 2,000 units or more.

b.              Upon
receipt of JPY 67,000,000 (as described in Appendix IV Section 4), TIETECH
will produce 600 units for delivery to ICOP DIGITAL. Upon receipt of USD $1
million, (as described in Appendix IV Section 2), TIETECH will continue
producing units beyond these original 600 production units.

 

3.                  ICOP
DIGITAL shall pay TIETECH C.O.D. by wire transfer in Nagoya, Japan on
acceptance by ICOP DIGITAL of the Product at TIETECH’s Nagoya, Japan
manufacturing facility, prior to shipment. ICOP DIGITAL may discontinue on-site
inspections of the Product when it is satisfied that the quality of the Product
is acceptable and that on-site inspections are no longer required, at which
time C.O.D. payments will be made from ICOP DIGITAL’s facility in the United
States.

(a)              ICOP
DIGITAL shall purchase the first 100 production units by paying 50% of Purchase
Order No. ICP-1011 (Revised-2), dated July 30, 2004, in advance by wire
transfer and the balance C.O.D. as described in (3) above.

(b)             ICOP
DIGITAL shall judge and approve the quality of the Product based on the
performance of the first 100 units.

 

4.                  Non-Recurring
Engineering (“NRE”) Due:

a.               Both
parties agree that the total balance of NRE due and payable by ICOP DIGITAL to
TIETECH is (JPY 134,000,000).

b.              Payment
Schedule:

i.               JPY
67,000,000 is payable within 5 business days following completion of a $10
million secondary offering through Paulson Investment Company.

ii.            JPY
30,000 is payable for each Basic System shipped, until such time that the total
NRE due, as stated in 4(a) above, is paid in full.

iii.         TIETECH
will begin mass production of units following the first 100 units (see 3a
above) when JPY 67,000,000 is paid by ICOP DIGITAL.

 

A-38

 

[*]

 

A-39

 

[*]

 

6.                   Both
parties shall discuss and make changes in the Product cost in case of changes
of Product Specifications. Any and all changes in pricing require notice in
writing, to be signed by both parties.

 

A-40

 

Appendix
V

 

Life Cycles of Tooling

 

[*] (2 pages)

 

A-41Exhibit 10.16

 

THIS
PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), NOR UNDER ANY STATE SECURITIES LAW AND MAY NOT
BE SOLD, PLEDGED, OFFERED FOR SALE, ASSIGNED OR TRANSFERRED UNLESS (A) A
REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES
ACT, AND ANY APPLICABLE STATE SECURITIES LAW REQUIREMENTS HAVE BEEN MET OR (B) EXEMPTIONS
FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT AND THE
REGISTRATION OR QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS
ARE AVAILABLE.

 

	
   

  	
  $      ,000.00

  
	
   

  	
  Principal Amount of

  
	
   

  	
  Bridge Note

  

 

ICOP DIGITAL, INC.

 

PROMISSORY NOTE

 

,
2005

 

1.                                       Bridge
Note.  FOR VALUE RECEIVED, ICOP
Digital, Inc., a Colorado corporation (the “Borrower”), promises to pay to
the order of                        
(the “Bridge Note Lender”), the principal amount of                   
Thousand Dollars ($    ,000.00).  The unpaid balance of the principal amount
shall accrue interest at the rate of eight (8%) percent per annum based on a 365-day
year.

 

2.                                       Maturity.  Except as otherwise provided herein, the
principal and interest hereunder shall become due and payable in full on the
date six months from the first Closing (as defined herein), except that in the
event of the closing of a Public Offering (as defined herein), the principal amount and
accrued and unpaid interest will become immediately due and payable.  The first Closing of the Bridge
Note(s) Offering will be on the second business day following the
receipt by First National Bank of Olathe, KS, as Escrow Agent of not less than $1,200,000 of the loan principal
from the Bridge Note Lender(s) as a
group (the “Closing”).  The Borrower plans to sells units of its
equity securities for total gross proceeds of an aggregate amount of
approximately Ten Million Dollars ($10,000,000.00) in a secondary offering of
units of Common Stock and Warrants (the “Public
Offering”).

 

3.                                       Prepayment.  Subject to the conversion rights provided for
in paragraph 5, hereof, Borrower may prepay any or all amounts due under this
Bridge Note at any time without penalty in readily available funds.  The prepayment shall not effect the Bridge
Note Lender’s rights to receive the Warrants provided for in paragraph 4
hereof.

 

4.                                       Warrants
Issued Upon Public Offering or Otherwise. 
At Closing each Lender will receive Warrant(s) to purchase a number of
shares of the Borrower’s Common Stock equal to the

 

quotient of the principal amount of such Lenders’ Bridge Note(s),
divided by the Public Offering Unit
Price and the product of such quotient
shall then be multiplied by 1.5 to yield the number of shares.  The Warrant(s)
will have an exercise price per share equal to 50% of the Public Offering Unit Price.  In the event there is no Public Offering within twelve (12)
months of the first Closing,
the number of shares under the Warrant shall equal the quotient of (a) 0.75
times the principal amount of such
Lenders’ Bridge Note(s), divided by the lesser of $5.00 ( assuming a
1:10 reverse stock split) and the average 4 PM NY Time closing bid price as
reported on the Bloomberg system for the 10 trading days ending on the trading
day immediately preceding the delivery of an exercise notice to the
Company.  The exercise price of the Warrants
shall be the lesser of $5.00 (assuming a 1:10 reverse stock split) and the
average 4 PM NY Time closing bid price as reported on the Bloomberg system for
the 10 trading days ending on the trading day immediately preceding the
delivery of an exercise notice.  The Warrants will be exercisable for five
years from the date of issuance, provided that if the Borrower files a
registration statement for a Public
Offering, then the Warrant(s)
will not be exercisable until the earlier of 90 days after the Public Offering closing and one (1) year
after filing of the Public Offering registration
statement.  Subject to the exercisability
limitations in the foregoing sentence, the Warrant(s) will provide for cashless exercise if, at any time
after one (1) year from the date of issuance of the Bridge Note(s) and Warrant(s), the Borrower does not
have available both an effective registration statement and current prospectus
covering the issuance or resale of the Borrower’s Common Stock issued or
issuable upon exercise of the Warrant(s).  The Warrant(s)
will be non-callable.

 

5.                                       Conversion
Rights                                            In
the event there is no Public Offering of the Borrower’s Common Stock and/or Warrants
within twelve (12) months from the first Closing, the Lender(s) shall have the right to
convert the principal
and unpaid interest of the Bridge Note(s) into shares of Common Stock at
a conversion price of $5.00 per share (assuming a 1:10 reverse stock split).

 

6.                                       SEC
Reporting                  As long as any
of the Bridge Note(s) and/or Warrant(s) are outstanding the Borrower
will maintain the listing of Borrowers Common Stock under Section 12 (g) of
the Securities Exchange Act of 1934, as amended (Exchange Act), and will file
all reports required by the Exchange Act in a timely manner.

 

7.                                       Anti
Dilution Provision.  Except for the
1:10 reverse stock split anticipated herein, should at any time from the date
of Closing until the conversion of the Bridge Notes provided for in paragraph 5
the Borrower issue a stock dividend, combine outstanding shares into a lesser
number of shares (reverse split) or increase the number of outstanding shares
without a receipt of new consideration (forward split) then the number of
shares into which the Bridge Note may be converted and the conversion price
shall be adjusted to reflect such event so that the relative interest of the
Bridge Note Lender shall be fully protected from dilution resulting from such
an event.  Notice of the required
adjustment including the number  of
shares and the new conversion price shall be promptly mailed to each Bridge
Note Lender subsequent to each such adjustment event.

 

8.                                       Default.  In the event of an occurrence of any event of
default specified below, the principal and all accrued interest on this Bridge
Note shall become immediately due and payable

 

2

 

without notice, except as specified below.  The occurrence of any of the following events
shall constitute an event of default under this Bridge Note:

 

(a)                                  The
Borrower fails to make any payment hereunder when due, which failure has not
been cured within fifteen (15) days following such failure.

 

(b)                                 If the
Borrower shall default in the payment or performance of any material
obligation, or any defined event of default, under any contract or instrument
pursuant to which Borrower has incurred any debt or other liability to any
person or entity, including the Bridge Note Lender.

 

(c)                                  If the
Borrower shall file a petition to take advantage of any insolvency act; make an
assignment for the benefit of its creditors; commence a proceeding for the
appointment of a receiver, trustee, liquidator or conservator of itself of a
whole or any substantial part of its property; file a petition or answer
seeking reorganization or arrangement or similar relief under the federal
bankruptcy laws or any other applicable law or statute of the United States of
America or any state.

 

(d)                                 If a
court of competent jurisdiction shall enter an order, judgment or decree
appointing a custodian, receiver, trustee, liquidator or conservator of the
Borrower or of the whole or any substantial part of its properties, or approve
a petition filed against the Borrower seeking reorganization or arrangement or
similar relief under the federal bankruptcy laws or any other applicable law or
statute of the Untied States of America or any state; or if, under the
provisions of any other law for the relief or aid of debtors, a court of
competent jurisdiction shall assume custody or control of the Borrower or of
the whole or any substantial part of its properties; or if there is commenced
against the Borrower any proceeding for any of the foregoing relief and such
proceeding or petition remains undismissed for a period of 30 days; or if the
Borrower by any act indicates its consent to or approval of any such proceeding
or petition.

 

(e)                                  If (i) any judgment
remaining unpaid, unstayed or undismissed for a period of 60 days is rendered
against the Borrower which by itself or together with all other such judgments
rendered against the Borrower remaining unpaid, unstayed or undismissed for a
period of 60 days, is in excess of $500,000, or (ii) there is any
attachment or execution against the Borrower’s properties remaining unstayed or
undismissed for a period of 60 days which by itself or together with all other
attachments and executions against the Borrower’s properties remaining unstayed
or undismissed for a period of 60 days is for an amount in excess of $500,000.

 

9.                                       Security.  Repayment of the Bridge Note shall be secured
by a lien on all tangible and intangible assets of the Borrower as described in
that certain Security Agreement executed contemporaneously herewith.

 

10.                                 Successors and Assigns.  This Bridge Note is transferable and
assignable by the Bridge Note Lender subject to the requirement that any such
assignment or transfer be, in the opinion of the Borrower’s counsel, in full
compliance with applicable federal and state securities laws.  All

 

3

 

covenants, agreements and undertakings in
this Bridge Note by or on behalf of any of the parties shall bind and inure to
the benefit of the respective successors and assigns of the parties whether so
expressed or not.

 

11.                                 Notices.  Any and all notices, requests, consents and
demands required or permitted to be given hereunder shall be in writing and
shall be deemed given and received (i) upon personal delivery, (ii) upon
the first business day following the receipt of confirmation of facsimile
transmission to the telefax number as indicated below, or (iii) upon the
third business day after deposit in the United States mail, by certified or
registered mail, postage prepaid and addressed as follows:

 

To Bridge
Note Lender:

 

 

To the
Borrower:

 

ICOP Digital, Inc.

11011 King
Street, Suite 260

Overland
Park, Kansas 66210

Telefax:  (913) 469-1662

 

Either party may change by notice the address to which notices to that
party are to be addressed.

 

12.                                 Waiver/Amendment.  The Borrower hereby waives presentment for
payment, demand, protest and notice of protest for nonpayment of this Bridge Note
and consents to any extension or postponement of the time of payment or any
other indulgence.  This Bridge Note may
only be amended or modified by written agreement signed by the Borrower and
Bridge Note Lender.

 

13.                                 Expenses.  In the event that Bridge Note Lender brings
legal action against the Borrower, or the Borrower brings legal action against
Bridge Note Lender, to enforce or otherwise determine the meaning or
enforceability of this Bridge Note or any provision hereof, each party shall
bear its own expenses, including attorney fees, directly attributable to such
action.  However, in any action for
breach of this Bridge Note, including nonpayment, the prevailing party in any
such dispute shall be entitled to recover all reasonable costs and attorney
fees incurred in connection with such action.

 

14.                                 Bridge
Note Bridge Note Lender is Not a Shareholder.  No Bridge Note Lender of this Bridge Note,
solely by virtue of the ownership of this Bridge Note, shall be considered a
shareholder of the Borrower for any purpose, nor shall anything in this Bridge
Note be construed to confer on any Bridge Note Lender of this Bridge Note any
rights of a shareholder of the Borrower including, without limitation, any
right to vote, give or withhold consent to any corporate action, receive notice
of meetings of shareholders or receive dividends.

 

15.                                 Registration
Rights.  In the event there is no
Public Offering of the Borrower’s common shares and warrants within 12 months
of the first Closing therefore permitting the right of Bridge

 

4

 

Note Lenders to convert pursuant to paragraph 5 above, the Borrower
agrees to immediately register the resale of the Common Shares of the Borrower
to be received by the Bridge Note Lender upon conversion of all or any portion
of this Bridge Note in a Registration Statement filed with the U.S. Securities
and Exchange Commission.  The Borrower
agrees to pay all expenses of registration and the Bridge Note Lender agrees to
cooperate in all reasonable respects with the Borrower and its counsel as
required to file the Registration Statement registering the resale of the
shares.  The Borrower agrees to use its
reasonable best efforts to have said Registration Statement declared effective
at the earliest practicable date after filing.

 

16.                                 Choice
of Law.  This Bridge Note shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of Colorado.

 

IN WITNESS WHEREOF, this Bridge Note has been executed and delivered on
the date specified on the first page hereof by the duly authorized
representative of the Borrower and the Bridge Note Lender.

 

Borrower:

 

	
   

  	
  ICOP DIGITAL, INC., a Colorado corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  DAVID C.
  OWEN, President & CEO

  

 

5

 

CONVERSION NOTICE

 

To convert this Bridge Note into common stock of the Borrower, check
the box:  o

 

To convert only part of this Bridge Note, state the principal amount to
be converted (must be a minimum of $100,000 or a multiple of $100,000):  $            .

 

If you want the stock certificate made out in another person’s name,
fill in the form below:

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

(Print or type assignee’s name, address and
zip code)

 

 

	
  Your Signature:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the

  Bridge Note)

  
				

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]