Document:

ESSENTIAL INNOVATIONS CORPORATION & ENERFLO GEOTHERMAL TECHNOLOGIES LTD.
                SOLE EXCLUSIVE RIGHTS AND DISTRIBUTION AGREEMENT
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This Agreement of (18) pages was signed: on 30th day of June, 2005.

BETWEEN:

ESSENTIAL INNOVATIONS CORPORATION: Incorporated under the Canada Business
Corporations Act
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(Hereinafter referred to as "Essential Innovations" or "EIC")

AND:

ENERFLO GEOTHERMAL TECHNOLOGIES LTD: An Alberta Corporation
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(Hereinafter referred to as "EGT")

WHEREAS Essential Innovations Corporation has developed the EI Elemental line of
innovative Geoexchange products. EIC is now focused on manufacturing and
distribution strategies for it's proprietary EI Elemental Family of Products,
which exclusively utilizes geoexchange technology, R410A refrigerant and
specialized artificial intelligence controls. EIC is now actively seeking
execution of product licensing and distribution agreements for its EI Elemental
Heat Energy System throughout the World.

AND WHEREAS Essential Innovations is to be introduced to associates, affiliates,
colleagues, branches, subsidiaries or other contacts of EGT in the Territory (as
hereinafter defined) by EGT.

AND WHEREAS EGT wishes to enter into a sole exclusive distribution and agency
agreement with Essential Innovations whereby EGT would take on sole
responsibility for the distribution, marketing and sale of the Product (as
hereinafter defined) throughout the Territory (as hereinafter defined). EGT
through its associates, affiliates, colleagues, branches, or subsidiaries wishes
to undertake responsibilities for the evaluating, distribution, marketing and
sale of the Product(s) (as hereinafter defined) on a sole exclusive basis
throughout the Territory (as hereinafter defined) on the terms and conditions
contained herein;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual
covenants in this Agreement, the Parties agree as follows:

1.       DEFINITIONS

Definitions

As used in this Agreement, the following words and phrases shall have the
following meanings:

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    ESSENTIAL INNOVATIONS CORPORATION & ENERFLO GEOTHERMAL TECHNOLOGIES LTD.
                SOLE EXCLUSIVE RIGHTS AND DISTRIBUTION AGREEMENT
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"Term" means the term of this Agreement as provided in subsection 3(1) including
any renewal provided hereunder.

"Trade-Mark" means the trademark or trademarks of all products manufactured by
Essential Innovations and its affiliates.

         1. "Territory" means the Provinces of "Alberta, Saskatchewan, Manitoba,
            and the Yukon Territory" ONLY

"Future Territory" means the Provinces of "Ontario, Quebec, Nova Scotia, New
Brunswick, Prince Edward Island, Nunivat and the Northwest Territories" ONLY

"Product" means EI Elemental Geothermal Heat Pumps manufactured by Essential
Innovations Corporation

"Parties," means Essential Innovations Corporation and Enerflo Geothermal
Technologies Ltd..

"Unit or Units," means any one individual EI Elemental Geothermal Heat Pump (of
any size)

2.       APPOINTMENT AND TERRITORY

         (a)      Appointment

         Essential Innovations hereby grants EGT sole exclusive rights to
         market, distribute and sell the Product(s) within the Territory and
         hereby appoints EGT as its sole distributor in the Territory for this
         purpose subject to the terms and conditions herein.

         (b)      Territory

         EGT shall be granted Sole Exclusive Rights to market, distribute and
         sell the Product(s) exclusively in the "Territory".

         (c)      Sub-Distribution

         EGT shall have the right to appoint sub-distributors, provided that, as
         a condition of such appointment such sub-distributor shall be entitled
         to distribute and promote the Product(s) only within the Territory and
         subject to and in accordance with the terms of this Agreement,
         including the requirement that the sub-distributor must undergo and
         take part in a training program to be provided in conjunction with
         Essential Innovations and EGT at the sole cost of EGT.

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    ESSENTIAL INNOVATIONS CORPORATION & ENERFLO GEOTHERMAL TECHNOLOGIES LTD.
                SOLE EXCLUSIVE RIGHTS AND DISTRIBUTION AGREEMENT
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         (d)      First Right of Refusal

         It is hereby agreed under the terms of this Agreement that at such
         future date when Exclusivity is to be granted for the "Future
         Territory" as defined herewith, then EGT shall have the "First Right of
         Refusal" to obtain such Exclusive Distribution should they wish to
         exercise such right subject to similar terms and conditions as set
         forth in this Agreement for the Exclusive Distribution Rights to the
         Territory.

         (e)      Restriction on Sales of the Product

         Subject to the terms of this Agreement, during the Term, Essential
         Innovations shall not, directly or indirectly, sell, assign or grant to
         any other person, entity, firm or organization, the right to, market,
         sell or distribute the Product within the Territory unless with written
         approval from EGT.

         (f)      Referrals

         Essential Innovations agrees to refer to EGT all inquiries, orders or
         requests for all Products originating from or intended for delivery
         within the Territory.

3.       TERMS AND RENEWAL

         (a)      Term

         This Agreement shall become effective upon its execution by both EIC
         and EGT hereto and shall remain in effect for a period of one (1) year
         from the date of such execution (the "Initial Term") subject to the
         terms and conditions herein.

         (b)      Renewal

         After the Initial Term period, this Agreement will be automatically
         extended to a further three (3) year consecutive period, under the same
         conditions and terms within this Agreement, providing that EGT has
         complied with all the terms of this Agreement up to and including the
         time of renewal (except for applicable annual increases in the purchase
         quotas and volume requirements).

4.       PRICE

         (a)      Sale Price

         (i)      Essential Innovations shall, from time to time, provide EGT
                  with price-lists with respect to the Product quoted FOB
                  (Vancouver, Canada).

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         (ii)     Essential Innovations shall send a written notice to EGT, one
                  month in advance, of any changes in the price list.

         (iii)    Once Essential Innovations has quoted EGT with a price for the
                  Product, the price shall be valid until completion of the deal
                  (order) and may not vary until such time that the order is
                  completed, provided the order is completed within the quoted
                  period and under the quoted terms. This does not, however,
                  relate to a "new order" that may be placed during the same
                  time period and may be subject to different pricing should the
                  price list have been amended during the specific ordering
                  period.

         (b)      Payment

         (i)      Standard payment terms Net 45 days from shipment date in
                  accordance with the terms and conditions of The Canadian
                  Construction "Standard Construction Document CCDC 2 progress
                  payment terms.

         (ii)     For special circumstances, should EGT initiate in writing any
                  direct sales between Essential Innovations and buyers in the
                  Territory, Essential Innovations will invoice the buyer
                  through EGT. In that case a wire transfer or money order shall
                  be used to make payment directly to Essential Innovations.

         (c)      Price List

         EGT shall have the right to establish its own pricelist for the
         Product(s) within the Territory.

         (d)      Sales and Marketing

         The determination of sales and marketing strategies and selling prices
         for the Product(s) within the Territory shall be the sole
         responsibility of EGT.

         (e)      Registration of the Product

         Should the Product(s) need to be registered, the official fees for the
         registration (if any) of the Product within the Territory shall be
         borne by EIC should it be necessary.

5.       TERMS AND CONDITIONS

The Parties agree that during the term of this Agreement Essential Innovations
shall:

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                  a)  Provide EGT with all requested information presently
                      available in order to assist EGT in the preparation of
                      sales promotional material relating to the Product(s) and
                      in order to facilitate advertising and sale of the
                      Product(s);
                  b)  Replace, at its own cost, any Product(s) delivered by
                      Essential Innovations to EGT / EGT's buyer in a defective
                      or un-merchantable state due to improper shipping;
                  c)  Properly maintain the registration of the Trade-Mark;
                  d)  Essential Innovations shall not deal directly with any
                      person, entity, firm or organization in the Territory and
                      shall go through EGT unless with the knowledge and a
                      written consent from EGT.
                  e)  Bear all liabilities for matters arising out of the
                      manufacture and quality of the Product(s) in accordance
                      with the standard manufacturer warranty and/or the
                      manufacturer extended warranty, if applicable;
                  f)  Permit EGT to hold itself out as an authorized sole
                      distributor of the Product(s) within the specified
                      Territory;
                  g)  Package and label the Product in accordance with
                      applicable standards and in compliance with the law of the
                      jurisdiction of the ultimate sale. Such standards shall be
                      identified by EGT and communicated to Essential
                      Innovations in Writing

6.       WARRANTIES AND REPRESENTATIONS

         (a)      Representations and Warranties of EIC. EIC represents and
                  warrants to EGT that the statements made in this Agreement are
                  true and correct in all material respects and do not contain
                  any untrue statement of a material fact or omit to state a
                  material fact required to be stated therein or necessary to
                  make the statements therein, in light of the circumstances
                  under which they were made, not misleading. EIC further agrees
                  that at the Start Date to this Agreement, the representations
                  and warranties of EIC set forth in this Agreement will be
                  deemed to have been remade as of the Start Date and shall
                  survive the End Date for the applicable period of limitations.

         EIC warrants and represents to EGT as follows:

                  (i)      EIC is a corporation duly incorporated, validly
                           existing and in good standing under the Federal laws
                           of the Country of Canada, and has all requisite
                           corporate power and authority to carry on its
                           business in all material respects.

                  (ii)     EIC has all requisite corporate power and authority
                           to enter into and deliver this Agreement and any
                           other agreement or document necessary to perform this
                           Agreement and to perform its obligations hereunder.
                           The execution of this Agreement and such other
                           agreements and instruments by EIC, and the
                           performance of their terms by EIC, have been duly and
                           validly authorized by the Board of Directors of
                           Essential Innovations Technology Corporation
                           ("EITC"), parent Company to EIC, and no further
                           corporate action or authorization on behalf of EIC is
                           required.

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                SOLE EXCLUSIVE RIGHTS AND DISTRIBUTION AGREEMENT
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                  (iii)    This Agreement is legal, valid and binding upon and
                           enforceable against EIC in accordance with its terms
                           (except as the enforceability thereof may be limited
                           by any applicable bankruptcy, reorganization,
                           insolvency or other laws affecting creditors' rights
                           generally or by general principles of equity,
                           regardless of whether such enforceability is
                           considered in equity or at law).

                  (iv)     EIC has developed the EI Elemental Geothermal Heat
                           Pump Technology and owns, possesses and has title to
                           such and all documentation, designs, flow sheets and
                           related materials free and clear of all liens,
                           charges and encumbrances;

                  (v)      EIC has not granted or agreed to grant any license or
                           right or entered into any other agreement whereby EIC
                           is obliged to give any other person, firm or
                           corporation any rights to utilize or sell the EI
                           Elemental Geothermal Heat Pump Technology in the
                           Territory; and

                  (vi)     To EIC's knowledge: (1) EIC has complied in all
                           material respects with all laws and regulations of
                           Governmental Bodies applicable to the business and
                           operations of EIC and has filed with the proper
                           authorities all material statements and reports
                           required by all applicable laws and regulations; and
                           (2) EIC has not received notice of any violation of
                           any laws and regulations applicable to the business
                           or operations of EIC.

         (b)      Representations and Warranties of EGT. This Agreement requires
                  information, representations and warranties to enable EIC to
                  determine whether to accept EGT as the Sole Exclusive
                  Distributor in the Territory. EGT therefore represents and
                  warrants as follows: EGT's information, representations and
                  warranties set forth herein are true and complete and may be
                  relied upon by EIC.

         EGT warrants and represents to EIC as follows:

                  (i)      If, before the Start Date, there is any material
                           change with respect to EGT's affairs that would
                           affect EGT's information, representations or
                           warranties set forth herein, EGT will promptly notify
                           EIC of that change.

                  (ii)     EGT is a company duly incorporated under the laws of
                           Alberta in good standing in accordance with the laws
                           of such jurisdiction and shall remain so during the
                           term of this Agreement.

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                  (iii)    It shall use its best and reasonable efforts to
                           utilize and exploit the EI Elemental Geothermal Heat
                           Pump Technology in accordance with the terms and
                           conditions of this Agreement.

                  (iv)     It shall comply with all applicable laws, orders and
                           regulations relating to the utilization of the EI
                           Elemental Geothermal Heat Pump Technology and, where
                           required by applicable laws, become registered or
                           licensed in such jurisdiction(s) as may be necessary.

7.       EXCLUSIVE DISTRIBUTION

                  (a) Essential Innovations grants EGT sole exclusive
                  distribution rights in the Territory for the Product(s) during
                  the Term of this Agreement subject to EGT committing to the
                  following minimum annual volume and purchase quotas defined as
                  follows:

                  For the Territory of "Alberta, Saskatchewan, Ontario,
                  Manitoba, and Yukon Territory" in the first year of the
                  agreement.

                  = 150 units in Year One

                  (Special Note: For the 1st year of the Agreement, the start
                  date for the fulfillment of the 1st years' minimum annual unit
                  purchase commitment will begin 3 months from the date of the
                  actual execution date of this Agreement, making it initially a
                  15 month term;

                  On the 1st day of the 4th month, being the first day of the
                  12-month initial term, EGT agrees it will then place a
                  purchase order with EIC for a minimum of at least 5 units of
                  any product size or model at that date and no less than 5
                  units in any subsequent month during the Term of the Agreement
                  while working to achieve the 150 unit minimum annual quota.)

                  There will be a 25% purchase increase per annum for each year
                  of Renewal assuming the Contract is extended for an additional
                  3-year term as defined below:

                  Year Two:         188 units in the Territory
                  Year Three:       235 units in the Territory
                  Year Four:        294 units in the Territory

                           (i) At such time that EIC decides to offer
                           Exclusivity in the "Future Territory" and then EGT
                           may decide to exercise it's First Right of Refusal
                           for Exclusivity in the "Future Territory" of "Quebec,
                           Nova Scotia, New Brunswick, Prince Edward Island, and
                           the Northwest Territories", the Year One annual
                           volume and purchase quota is as follows:

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                           For the "Future Territory" of "Quebec, Nova Scotia,
                           New Brunswick, Prince Edward Island, and the
                           Northwest Territories": = Such annual quota will be
                           determined at that time

                           As with the Territory the same annual % increase will
                           apply for Renewal in the "Future Territory".

         (b)      Essential Innovations will inform EGT of any direct or
                  indirect contacts or any attempts of purchase from any buyers,
                  entities, groups or organizations within the Territory or
                  deliveries to be made in the Territory.

                           (i) Essential Innovations will not get involved with
                           any buyers/entities in the Territory without the
                           knowledge and written consent of EGT and in the case
                           EIC is directly involved, EGT will be given such
                           agreed commission/collectable profit afforded an
                           Exclusive Distributor mentioned in this Agreement for
                           each sale whether it is directly involved or not.

         (c)      At such time and date that this Agreement may be renewed after
                  1 year, Essential Innovations will again notify EGT in writing
                  as to what are to be the minimum purchase quotas, as defined
                  in (b) above, for the three (3) year renewal term if EGT
                  wishes to obtain the available extension.

                           (i)      In addition to the minimum quota
                                    requirements that must be agreed to and met
                                    for any further renewal to the contract to
                                    occur, in such case that EGT is unwilling or
                                    incapable of meeting the expected minimum
                                    quota requirements, then Essential
                                    Innovations shall have the right to
                                    terminate the contract extension prior to
                                    the renewal, or at any time during the
                                    renewal period where EGT may fail to meet
                                    the required quotas.

         (d)      Training

                  During the first 3 month period of the Agreement from the date
                  of signing, a training program is to be implemented with EGT
                  sending such number of team members as appropriate to the EIC
                  manufacturing facility to become expertly trained in the
                  installation and operation of the EI Elemental Family of
                  Geothermal Heat Pump(s), in particular, with the operation of
                  the units as it relates to the proprietary AICD (Artificial
                  Intelligence Controls Diagnostics). EGT will pay to EIC
                  $325.00 per man for the training program.

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         (e)      Support Materials and Additional Documentation

                  EIC will provide to EGT such equivalent number of Spec Sheets
                  as is appropriate for such number of units to be supplied.
                  Marketing materials will be provided to EGT at no cost up to a
                  certain number (to be determined), with additional marketing
                  materials to be provided at a nominal charge.

8.       TERMINATION

         Each of Essential Innovations and EGT have the right to terminate this
         Agreement (except for those provisions which by their nature survive
         termination), upon the occurrence of breach of any terms and conditions
         of this Agreement, such termination to be effective after two months of
         receiving a written termination letter explaining the faults or breach
         of any of the provisions which can be disputed until proven. Therefore,
         this Agreement may be terminated according to this provision by any of
         the Parties by two months after the receipt of a written notice given
         by one party to the other, only if any of the Parties are in breach of
         terms and conditions of this Agreement which can be disputed until
         proven.

         (a)      Target Default

                  Should EGT fail to achieve any of the targets set out as
                  within the time limits therein specified, EIC shall be
                  entitled to terminate this Agreement provided that:
                  (i)      It shall have first given to EGT a Notice of Default
                           containing particulars of the target which EGT has
                           failed to meet; and
                  (ii)     EGT does not, within thirty (30) days following the
                           delivery of such Notice, provide EIC with
                           verification that it has achieved such target.

         (b)      Other Default
                  The parties hereto agree that if either of them is in default
                  with respect to any of the other provisions of this Agreement,
                  the Non-Defaulting Party may give notice to the Defaulting
                  Party specifically designating such default, and within sixty
                  (60) days after its receipt of such notice, the Defaulting
                  Party shall either:
                           (i)      Cure such default, or commence proceedings
                                    to cure such default and prosecute the same
                                    to completion without undue delay; or
                           (ii)     Give the Non-Defaulting Party notice that it
                                    denies such default has occurred and is
                                    submitting the question to arbitration as
                                    herein provided.
If arbitration is sought, a party shall not be deemed in default until the
matter shall have been determined finally by appropriate arbitration as defined
herein.

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If:
                           (i)      The default is not so cured or a
                                    commencement made on proceedings to cure it,
                                    and
                           (ii)     Arbitration is not so sought; or the
                                    Defaulting Party is found in arbitration
                                    proceedings to be in default, and fails to
                                    cure it or commence proceedings to cure it
                                    within sixty (60) days after the rendering
                                    of the arbitration award;
the Non-Defaulting Party shall be entitled to seek any remedy it may have on
account of such default.

         (c)      Consequences of Termination

         Following termination, EGT shall no longer have the exclusive right to
         distribute EIC Products in the Territory and shall instruct all of its
         Dealers to place all future orders through EIC directly.

         (d)      Return of Materials

         Upon termination, EGT shall no longer represent itself as an authorized
         seller of EIC Products and shall immediately return to EIC all
         marketing and promotional materials previously used in advertising and
         promoting EIC Products. EGT shall not make or retain any copies of any
         confidential items, materials or information that may have been
         entrusted to it, and shall cease to use all trademarks, marks and trade
         names of EIC.

         (e)      Limitation on Liability

         In the event of termination by either party in accordance with any of
         the provisions of this Agreement, neither party shall be liable to the
         other because of the termination for compensation, reimbursement or
         damages on account of the loss of prospective profits or anticipated
         sales or on account of expenditures, investments, leases or commitments
         made in connection with the business or goodwill of EIC or EGT.

9.       INDEMNIFICATION

         (a)      Indemnification by EIC
                  EIC shall indemnify and hold EGT free and harmless from any
                  and all claims, damages, charges, expenses, suits or actions
                  arising out of the negligence or misrepresentation of EIC.

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         (b)      Indemnification by EGT

                  EGT shall indemnify and hold EIC, free and harmless from any
                  and all claims, damages, charges, expenses, suits or actions
                  arising out of defects in the EIC Products caused by EIC or
                  failure of EIC to provide any EIC Products to a customer that
                  has properly ordered through a Distributor or Dealer, or its
                  negligence or misrepresentation

10.      TRADEMARK

         Essential Innovations hereby grants EGT the right to sell the
         Product(s) bearing the Essential Innovations Trademark and in
         connection with the use of such Trademark, the Parties agree as
         follows:

              a)  EGT shall notify Essential Innovations promptly of any
                  suspected infringement or passing off or any pending or
                  threatened litigation or other proceedings concerning the
                  Trademark which may come to its attention;
              b)  Essential Innovations shall use its best efforts to prosecute,
                  defend and conduct at its own expense all suits involving the
                  Trademark including, without limitation, actions involving
                  infringement or passing off and will undertake any actions or
                  litigate any proceedings reasonably necessary for the
                  protection of the Trademark and EGT shall provide every
                  assistance to Essential Innovations in such defences at the
                  cost of Essential Innovations.

11.      ASSIGNMENT

         Non-Assignability

         The Parties covenant and agree that none of the Parties shall, without
         the prior written consent of the other, transfer the whole or any part
         of this Agreement or any of its interest, rights or obligations
         hereunder.

12.      CONFIDENTIALITY

         (a)      Pricing Specificity

         Essential Innovations, shall not discuss the Purchase Multiplier of EGT
         with any other entity or person under any circumstances, unless with
         written approval from EGT. All details of the Purchase Multiplier of
         EGT are confidential and must remain between Essential Innovations and
         EGT only, unless with written approval from EGT. All Purchase
         Multiplier details between EGT and Essential Innovations are to be
         discussed either in person or by telephone only. This section/provision
         shall survive the termination of this Agreement.

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         (b)      General

         For purposes of this Agreement, the term Confidential Information
         includes any information in any form or medium, including without
         limitation written records, documents, computer-readable disks, tapes,
         printouts, sound recordings, photographs, reproductions, sketches,
         notes, or copies or excerpts of them, or other documents or materials,
         that EIC considers confidential, whether or not marked as confidential.
         Confidential Information includes inventions (as defined below),
         software, source code, object code, algorithms, procedures, databases,
         compilations, technical data, formulas, theories, methods, equipment,
         samples, designs, data, specifications, drawings, blueprints,
         prototypes, models, business plans, customer lists, contacts and
         information, sales and marketing reports, proposals, prices, costs,
         personnel and payroll records, mailing lists, accounting records, and
         other trade secrets and information concerning the businesses and other
         ventures which EIC now operates or may operate in the future. For
         purposes of this Agreement, "Inventions" shall include but not be
         limited to ideas, improvements, or other Confidential Information,
         whether or not patentable and whether or not reduced to practice, made
         or conceived by EIC (whether made during the period of his
         employment/engagement with EIC, which relate in any manner to the
         actual or demonstrably anticipated business, work or research and
         development of EIC or its subsidiaries, or result from or are suggested
         by any task assigned to EGT or any work performed by him for or on
         behalf of EIC or its subsidiaries or ventures. For purposes of this
         Agreement, the terms "contractor," and derivatives thereof include
         without limitation "consultant" and "independent contractor," and use
         of the terms "contractor" or derivatives shall not be deemed to create
         an employer-employee relationship between EIC and the undersigned. In
         regard to the above, EGT agrees as follows:

                  (i)      During the engagement by EIC, EGT will not disclose
                           or make use of any Confidential Information except as
                           necessary for the performance of it's duties as an
                           Exclusive Distributor of EIC or as authorized in
                           writing by EIC;

                  (ii)     After the engagement by EIC has terminated for any
                           reason, EGT will not disclose or make use of any
                           Confidential Information for any purpose, either on
                           it's own behalf or on behalf of another person,
                           entity, or business;

                  (iii)    During the engagement with EIC, EGT will not provide
                           to EIC or make use of any trade secrets or other
                           confidential information belonging to another
                           employer or other third party without the express
                           approval of both EIC and such other employer or other
                           third party.

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                  (iv)     EGT represents that it is not subject to any
                           confidentiality, non-competition, or other agreement
                           with any other employer or other third party that
                           would conflict with this Agreement or prevent him
                           from performing all his assigned duties as a
                           contractor of EIC.

                  (v)      Upon demand by EIC or upon termination of EGT's
                           engagement for any reason, EGT will immediately
                           assemble all property and records of EIC in it's
                           possession or under it's control, including all
                           copies, excerpts, derivations and duplications
                           thereof, and return them promptly and unconditionally
                           to EIC; and

                  (vi)     EGT agrees that during it's engagement, and for a
                           period of one (1) year after the termination of it's
                           engagement for any reason, EGT will not knowingly,
                           either directly or indirectly, for itself or for any
                           or entity, hire, solicit or induce (other than to the
                           extent of normal advertising of positions open) any
                           employee, independent contractor or consultant of EIC
                           to leave their employment or engagement or to cease
                           doing business with EIC.

13.      ARBITRATION

         If there is any disagreement between the parties hereto with respect to
         the terms of this Agreement or the interpretation thereof, the same
         will be referred to a single arbitrator pursuant to the Commercial
         Arbitration Act in the Country of Canada and in the Province of British
         Columbia and any amendments thereto, and the determination of such
         arbitrator will be final and binding upon the parties hereto.

14.      GENERAL CONTRACT PROVISIONS

         (a)      Entire Agreement

                  This Agreement constitutes the entire agreement between the
                  Parties with respect to all matters herein contained, and its
                  execution has not been induced by, nor do any of the Parties
                  hereto rely upon or regard as material, any representations or
                  writings whatsoever not incorporated herein and made a part
                  hereof. This Agreement shall not be amended, altered or
                  qualified except by an instrument in writing, signed by the
                  Parties hereto and any amendments, alterations or
                  qualifications hereof shall not be binding upon or affect the
                  rights of any Party who has not given its consent in writing.

                                                                              13
                                                  Handwritten initials SW and VL
<PAGE>

    ESSENTIAL INNOVATIONS CORPORATION & ENERFLO GEOTHERMAL TECHNOLOGIES LTD.
                SOLE EXCLUSIVE RIGHTS AND DISTRIBUTION AGREEMENT
--------------------------------------------------------------------------------

         (b)      Heading

                  The division of this Agreement into articles and sections is
                  for convenience of reference only and shall not affect the
                  interpretation or construction of this Agreement.

         (c)      Severability

                  In the event that any of the covenants herein contained shall
                  be held unenforceable or declared invalid for any reason
                  whatsoever, such unenforceability or invalidity shall not
                  affect the enforceability or validity of the remaining
                  provisions of this Agreement and such unenforceable or invalid
                  portion shall be severable from the remainder of this
                  Agreement.

         (d)      Governing Law

                  This Agreement shall be governed by and construed in
                  accordance with the laws of the Province of British Columbia
                  and any court of competent jurisdiction in the Province of
                  British Columbia shall have jurisdiction to adjudicate any
                  matter arising out of this Agreement.

         (e)      Interpretation

                  (i)      Each provision of this Agreement is declared to
                           constitute a separate and distinct covenant and will
                           be severable from all other such separate and
                           distinct covenants.

                  (ii)     If any covenant or provision is determined to be void
                           or unenforceable, in whole or in part, it will not be
                           deemed to affect or impair the enforceability or
                           validity of any other covenant or provision of this
                           Agreement or any part thereof.

                  (iii)    The headings in this Agreement form no part of the
                           agreement between the parties and will be deemed to
                           have been inserted for convenience only and will not
                           affect the construction hereof.

         (f)      Notices

                  All notices, requests, demands or communications made pursuant
                  to the terms hereof or required or permitted to be given by
                  one party to another shall be given by personal delivery or by
                  registered mail, addressed to such other party or delivered to
                  such party as follows:

                                                                              14
                                                  Handwritten initials SW and VL
<PAGE>

    ESSENTIAL INNOVATIONS CORPORATION & ENERFLO GEOTHERMAL TECHNOLOGIES LTD.
                SOLE EXCLUSIVE RIGHTS AND DISTRIBUTION AGREEMENT
--------------------------------------------------------------------------------

              o   To Essential Innovations at:

              ESSENTIAL INNOVATIONS CORPORATION
              Mr. Steve Wuschke, President/CTO
              #101 - 5219 192nd Street
              Cloverdale, British Columbia
              Canada, V3S 4P6

              o To EGT at:

              Enerflo Geothermal Technologies Ltd.
              #406 - 999 8th Street SW
              Calgary, AB.
              Canada T2R 1J5

                  or at such other address as may be given by any of them to the
                  other from time to time and such notices, requests, demands or
                  other communications shall be deemed to have been received
                  when delivered, or, if mailed two (2) weeks following the date
                  of mailing thereof provided that if any such notices,
                  requests, demands or other communications shall have been
                  mailed regular mail service. Shall such mail service be
                  interrupted by strikes or other irregularities, such notices,
                  requests, demands or other communications shall be deemed to
                  have been received two (2) weeks after the day following the
                  resumption of normal mail service. In any case of
                  irregularities the party mailing such requests, demands or
                  communications should inform the other party of such
                  irregularities via telephone.

         (g)      Time

                  Time shall be of the essence.

         (h)      Further Assurance

                  The Parties agree to sign such other instruments, cause such
                  meeting to be held, resolutions passed and by-laws enacted,
                  exercise their votes and influence, do and perform and cause
                  to be done and performed such further and other acts and
                  things as may be necessary or desirable in order to give full
                  effects to this Agreement.

         (i)      Successor and Assigns

                  This Agreement shall endure to the benefit of and be binding
                  upon the Parties hereto and their respective successors and
                  assigns.

                                                                              15
                                                  Handwritten initials SW and VL
<PAGE>

    ESSENTIAL INNOVATIONS CORPORATION & ENERFLO GEOTHERMAL TECHNOLOGIES LTD.
                SOLE EXCLUSIVE RIGHTS AND DISTRIBUTION AGREEMENT
--------------------------------------------------------------------------------

         (j)      Non-Waiver

                  There shall be no waiver by either Party of any breach by the
                  other Party of any of its covenants, obligations or agreement,
                  nor shall any forbearance to seek a remedy for any breach, be
                  considered a waiver of any rights and remedies with respect to
                  such or any subsequent breach.

         (k)      Changes

                  (i)      This Agreement shall remain binding and valid in the
                           event that either Party decides to relocate its head
                           office to any other country.

                  (ii)     This Agreement supersedes all verbal and written
                           agreements prior to this date. This Agreement also
                           supersedes all other verbal and written agreements
                           that contradict with this Agreement.

         (l)      Contact Information

                  EGT and Essential Innovations contact information are as
                  follow:

              o Essential Innovations Corporation Contact Information:

              Address: #101 - 5219 192nd Street
              Cloverdale, British Columbia
              Canada, V3S 4P6
              Contact Name & Title: Mr. Steve Wuschke, CTO
              Telephone: (604) 574 9595
              Facsimile: (604) 574 9597
              E-mail:  swuschke@eitechcorp.com

              o EGT Contact Information:

              Address: #406 - 999 8th Street
              Calgary, AB.
              Canada T2R 1J5
              Contact Name:  Vern Lessoway
              Telephone: 403 244 3711
              Facsimile: 403 244 2623
              E-mail:   vernl@enerflo.com

                                                                              16
                                                  Handwritten initials SW and VL
<PAGE>

    ESSENTIAL INNOVATIONS CORPORATION & ENERFLO GEOTHERMAL TECHNOLOGIES LTD.
                SOLE EXCLUSIVE RIGHTS AND DISTRIBUTION AGREEMENT
--------------------------------------------------------------------------------

         (m)      Counterparts

                  This Agreement may be executed in counterparts, each of which
                  will be deemed an original, but all of which together will
                  constitute one and the same instrument.

IN WITNESS WHEREOF the Parties have executed this Agreement as of the day and
year first above written.

ESSENTIAL INNOVATIONS CORPORATION:

ESSENTIAL INNOVATIONS CORPORATION Authorized Signatory:

/s/ Steve Wuschke

Name in Print of ESSENTIAL INNOVATIONS CORPORATION Authorized Signatory:
Steve Wuschke President/CTO

The above signature for ESSENTIAL INNOVATIONS CORPORATION was signed in the
presence of witness:

Signature: /s/ Dave Speers
Name of Witness: Dave Speers

ENERFLO GEOTHERMAL TECHNOLOGIES LTD.:

ENERFLO GEOTHERMAL TECHNOLOGIES LTD. Authorized Signatory:

/s/ Vern Lessoway June 28/05

Name in Print of ENERFLO GEOTHERMAL TECHNOLOGIES LTD. Authorized Signatory:
Vern Lessoway President

The above signature for ENERFLO GEOTHERMAL TECHNOLOGIES LTD. was signed in the
presence of witness:

Signature: /s/ Chris Mitchell
Name of Witness: Chris Mitchell

                                                                              17
                                                  Handwritten initials SW and VL
<PAGE>

    ESSENTIAL INNOVATIONS CORPORATION & ENERFLO GEOTHERMAL TECHNOLOGIES LTD.
                SOLE EXCLUSIVE RIGHTS AND DISTRIBUTION AGREEMENT
--------------------------------------------------------------------------------

                                  Schedule "A"

                         Required "Territory" Exemptions

         It is agreed, understood and noted between the Parties that prior to
         the execution of this "Agreement", EIC already had certain "project
         opportunities" with specific groups or individuals within the
         "Territory" as defined herein, that would precede the start date of the
         Agreement, and therefore such "project opportunities" must be exempt
         from the terms of the Sole Exclusive Distribution Agreement heretofore.
         Such projects are as follows:

         (1)      Direct relationship with a project developer, New Future
                  Building Group working on the Regina Renaissance Retirement
                  Residence in Regina, Saskatchewan where EIC has already
                  provided equipment and engineering quotation(s).

         (2)      Direct relationship with Sprung Structures based in Calgary,
                  Alberta, whereby EIC intends to be involved in the direct
                  supply of product for their domestic (which may fall within
                  the Territory), and international project developments.

         (3)      EIC has a Finder's Agreement with Brant and Associates/CENSAR
                  ("Finder") in Winnipeg, Manitoba, providing fees to such
                  Finder for sourcing to EIC projects in that Province. In this
                  case, EIC will make an introduction for EGT to Finder, so that
                  collective work can be done there as Finder has some unique
                  political connections in Manitoba.

                                 END OF CONTRACT

                                                                              18
                                                  Handwritten initials SW and VLSENTO CORPORATION
                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement") is executed this 1st day of
July 2005 by and between Sento Corporation, a Utah corporation (the "Company"),
and Stephen W. Fulling ("Mr. Fulling").

                                    RECITALS

         WHEREAS, the Company is engaged in the business of designing,
implementing and managing high-tech solutions for customer acquisition, customer
care, technical support and help-desk functions. The Company uses modern
customer contact centers, coupled with our state-of-the-art proprietary software
systems, to provide domestic and international support services for Fortune 1000
companies, multinational companies, product manufacturers, and software
companies; and

         WHEREAS, Mr. Fulling has acknowledged knowledge, skill and experience;
and

         WHEREAS, the Company desires to obtain the benefit of Mr. Fulling's
knowledge, skill, and experience and, therefore, is willing to engage the
services of Mr. Fulling upon the terms set forth in this Agreement; and

         WHEREAS, Mr. Fulling is willing to render services to the Company on
the terms set forth herein;

                                   AGREEMENTS

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the Company and Mr. Fulling agree as follows:

         1. Employment.

                  (a) Employment. The Company hereby employs Mr. Fulling and Mr.
Fulling hereby accepts employment by the Company, subject to the terms set forth
in this Agreement.

                  (b) Employment Term. The term of Mr. Fulling's employment
under this Agreement ("Employment Term") shall begin on July 1, 2005 and shall
continue for a period of two (2) consecutive calendar years, unless terminated
sooner in accordance with this Agreement. The Employment Term shall be
automatically extended for successive one-year periods unless a notice of
non-extension is given by one party to the other at least one hundred eighty
(180) days prior to the expiration of the then current term.

                  (c) Title and Duties. Mr. Fulling's title shall be Senior Vice
President and Chief Technology Officer of the Company, and he shall possess such
powers and duties as are normally incident to such position, as he currently
exercises and performs and as provided in the By-laws, all in accordance with
Utah General Corporation Law. Mr. Fulling's title, powers and duties may be
changed by the Board of Directors of the Company. During the Employment Term,
Mr. Fulling shall faithfully discharge his duties and responsibilities in a
diligent manner, devoting substantially all of his working time to the affairs
of the Company and its subsidiaries (collectively, "Sento"). Mr. Fulling shall
promptly communicate with all members of the Company's board of directors on all
material Company events and matters.

<PAGE>

         2. Compensation and Related Matters.

                  (a) Salary. For services rendered by Mr. Fulling to Sento and
upon the condition that Mr. Fulling fully and faithfully perform all of his
duties and obligations owed during the Employment Term under this Agreement. The
Company shall pay Mr. Fulling an annual base salary equal to $130,000, payable
in twenty-six equal bi-weekly installments per year less income tax withholdings
and other normal employee deductions. The base salary set forth herein shall be
reviewed annually by the Compensation Committee (the "Compensation Committee")
of the Board of Directors of the Company at the end of each fiscal year of the
Company beginning with the fiscal year ending on or about March 31, 2006
(hereafter "Fiscal Year"), or at such other times as may be deemed appropriate
by the Compensation Committee, and may, at the sole discretion of the
Compensation Committee, be left unchanged or increased by an amount which it
deems appropriate.

                  (b) Bonuses. Mr. Fulling shall be eligible to receive with
respect to each Fiscal Year during the Employment Term bonuses under the
Company's bonus program, if any, which may be subsequently adopted or amended by
the Compensation Committee ("Compensation Committee") of the Board of Directors
(or the full Board as the case may be). The Company's current bonus program for
Mr. Fulling is set forth on Exhibit A which is attached hereto and incorporated
herein by this reference.

                  (c) Stock Options and Restricted Stock Grants. Mr. Fulling
shall receive such options to purchase the common stock of the Company, or such
grants of restricted stock of the Company, if any, as shall be granted by the
Compensation Committee, in its discretion, pursuant to the Company's 1999
Omnibus Stock Incentive Plan or any other stock option plan which may be
applicable.

                  (d) Fringe Benefits. During the Employment Term, Mr. Fulling
shall be eligible to receive reasonable amounts of paid, noncumulative vacation
per year, to be taken at a time or times reasonably agreeable to both Mr.
Fulling and the Company, and shall be eligible to participate in and receive
coverage and benefits under all group insurance, pension, profit sharing, bonus,
stock option, stock ownership and other employee benefit plans, programs and
arrangements of Sento which are now or hereafter adopted by Sento for the
benefit of its similarly situated executive employees, subject to and on a basis
consistent with the terms, conditions and overall administration of such plans,
programs and arrangements.

                  (e) Business Expenses. The Company shall reimburse Mr. Fulling
for the reasonable and necessary business expenses incurred by Mr. Fulling in
connection with the performance of his duties and obligations as set forth
herein during the Employment Term. Such expenses shall include, but are not
limited to, cellular telephone expenses and all expenses of travel and living
expenses while away from home on business or at the request and in the service
of the Company, provided that such expenses are properly incurred and accounted
for in accordance with the applicable policies and procedures established by the
Company. Reimbursement shall be made upon the presentation by Mr. Fulling to the
Company of reasonably detailed statements of such expenses.

                  (f) Proration of Compensation. Any compensation payable to Mr.
Fulling under this Section 2 in respect of any Fiscal Year during which the
Employment Term terminates prior to the last day of such Fiscal Year shall,
unless otherwise provided in the applicable plan, program or arrangement, be
prorated in accordance with the number of days in such Fiscal Year during which
he is so employed.

                                       2
<PAGE>

         3. Benefits Following Employment Term or Termination. For the shorter
of the following periods: (i) a period of twelve (12) months following the Date
of Termination of the Employment Term, or (ii) a period from the Date of
Termination of the Employment Term and continuing until the date Mr. Fulling
accepts other employment with comparable benefits, and provided that Mr. Fulling
was not terminated for cause as provided in Subsection (a) of Section 5 herein,
the Company shall permit, at the Company's expense, Mr. Fulling, his spouse and
dependents, as applicable (the "Benefit Participants") to participate in all
group medical and health insurance plans then made available to the executive
employees of the Company (the "Plans") (including but not limited to such Plans
in which Mr. Fulling was entitled to participate immediately prior to the Date
of Termination) in the same manner as provided to its other executive employees;
provided, however, that this Section 3 shall not apply in the event that (i)
Sento shall hereafter terminate the applicable Plan, or (ii) the participation
of the Benefit Participants in such Plan is prohibited by law or, if applicable,
would disqualify such Plan as a tax qualified plan pursuant to the Internal
Revenue Code of 1986, as amended, or any successor thereto (the "Code") or (iii)
the participation of the Benefit Participants violates the general terms and
provisions of such applicable Plan. In the event that any of the Benefit
Participants' participation in such Plans is prohibited by law or, if
applicable, would disqualify the Plan as a tax qualified plan, the Company shall
pay the monthly COBRA premiums otherwise payable by Mr. Fulling with respect to
continuation coverage of such Plans or permit the Benefit Participants to
acquire substantially comparable coverage at the Company's expense, from a
source of Mr. Fulling's or his spouse's choosing, notwithstanding the fact that
such coverage or benefit will result in a higher cost than if provided under an
Sento Plan. However, in no event will the Benefit Participants receive from the
Company the coverage contemplated by this Section 3 if the Benefit Participants
receive such coverage from any other source.

         4. Compensation upon Termination or During Disability.

                  (a) Compensation upon Termination for Cause. If the Employment
Term shall be terminated "for cause," as provided in Subsection (a) of Section 5
herein, the Company shall have no further liability under this Agreement except
to pay Mr. Fulling (i) the value of any accrued salary or other compensation due
to Mr. Fulling pursuant to Section 2 herein (including any earned and awarded
but unpaid bonus payment, subject to set-off of amounts owed to the Company, but
excluding any deferred bonus payments based upon quarterly Fiscal Year
performance) upon the date of delivery of Notice of Termination to Mr. Fulling,
at the rate in effect at the time such Notice of Termination is delivered, and
(ii) any benefits payable under all employee benefit plans, programs and
arrangements of Sento in which Mr. Fulling is a participant on the date of
delivery of Notice of Termination.

                  (b) Compensation upon Death. If the Employment Term is
terminated by Mr. Fulling's death, the Company shall have no further liability
under this Agreement except to pay Mr. Fulling's spouse, or if he leaves no
spouse, his estate or devisee, legatee or other designee, as applicable, (i) the
value of any accrued salary or other compensation due to Mr. Fulling pursuant to
Section 2 herein (including any earned put unpaid bonus payment or prorata share
of such earned bonus payment, but excluding deferred bonus payments based upon
annual Fiscal Year performance) at the time of his death, (ii) any death benefit
payable under all employee benefit plans, programs and arrangements of Sento in
which Mr. Fulling is a participant on the date of his death, and (iii) any Plan
coverage continuation for Mr. Fulling's spouse and dependents, as applicable,
under Section 3 herein.

                  (c) Compensation upon Disability. During any period that Mr.
Fulling fails to perform his duties hereunder as a result of incapacity due to
an "impaired condition," as such term is defined in Subsection (c) of Section 5
herein (the "disability period"), Mr. Fulling shall continue to receive his full
salary at the rate then in effect for the disability period until the Employment
Term is terminated pursuant to Subsection (c) of Section 5 herein; provided,
however, that such salary payments so made to Mr. Fulling pursuant hereto shall
be reduced by the sum of the amounts, if any, payable to Mr. Fulling prior to or
during this period, as the result of such incapacity, under any disability
benefit plan or insurance program of Sento in which Mr. Fulling participates.

                                       3
<PAGE>

                  In the event of termination of the Employment Term pursuant to
Subsection (c) (disability) of Section 5 herein, the Company shall have no
further responsibilities under this Agreement except (i) to pay the value of any
accrued salary or other compensation due under Section 2 herein (including any
earned but unpaid bonus payment or prorata share of such earned bonus payment,
but excluding deferred bonus payments based upon annual Fiscal Year performance)
on the Date of Termination to Mr. Fulling (or in the event of Mr. Fulling's
subsequent death, to his estate or devisee, legatee or other designee, as
applicable), together with any benefits payable under all employee benefit
plans, programs or arrangements of Sento in which Mr. Fulling is a participant
on the Date of Termination, and (ii) to provide for any Plan coverage
continuation for Mr. Fulling, his spouse and dependents, as applicable under
Section 3 herein.

                  (d) Compensation upon Termination by Mr. Fulling. If Mr.
Fulling terminates the Employment Term due to "impaired health" or for Good
Reason, as such terms are defined in Subsection (d) of Section 5 herein, the
Company shall have no further responsibility under this Agreement except (i) to
pay the value of any accrued salary or other compensation due under Section 2
herein (including any earned but unpaid bonus payment or prorata share of such
earned bonus payment, but excluding deferred bonus payments based upon annual
Fiscal Year performance) on the Date of Termination to Mr. Fulling (or in the
event of Mr. Fulling's subsequent death, to his estate or devisee, legatee or
other designee, as appropriate), together with any benefits payable under all
employee benefit plans, programs or arrangements of Sento in which Mr. Fulling
is a participant on the Date of Termination, (ii) to pay the value of any
severance compensation owed to Mr. Fulling (or in the event of Mr. Fulling's
subsequent death, to his estate or devisee, legatee or other designee, as
appropriate) as set forth in Subsection (f) of this Section 4 (which shall
survive the termination of the Employment Term), and (iii) to provide for any
Plan coverage continuation for Mr. Fulling, his spouse and dependents, as
applicable, under Section 3 herein.

                  (e) Compensation upon Termination by Company. If the Company
breaches this Agreement by terminating the Employment Term, other than pursuant
to Subsections (a) (cause), (b) (death), or (c) (disability) of Section 5
herein, including but not limited to termination without "cause" (as such term
is defined in Subsection (a) of Section 5 herein), the Company shall (i) pay the
value of any accrued salary or other compensation due under Section 2 herein
(including any earned but unpaid bonus payment or prorata share of such earned
bonus payment, but excluding deferred bonus payments based upon annual Fiscal
Year performance) on the Date of Termination to Mr. Fulling (or in the event of
Mr. Fulling's subsequent death, to his estate or devisee, legatee or other
designee, as appropriate), together with any benefits payable under all employee
benefit plans, programs or arrangements of Sento in which Mr. Fulling is a
participant on the Date of Termination, (ii) pay the value of any severance
compensation owed to Mr. Fulling (or in the event of Mr. Fulling's subsequent
death, to his estate or devisee, legatee or other designee, as appropriate) as
set forth in Subsection (f) of this Section 4 (which shall survive the
termination of the Employment Term), and (iii) provide for any Plan coverage
continuation for Mr. Fulling, his spouse and dependents, as applicable, under
Section 3 herein.

                  (f) Severance Compensation.

                  (i) Termination by Company or by Mr. Fulling for Good Reason.
         If the Company breaches this Agreement by terminating the Employment
         Term other than pursuant to Subsections (a) (cause), (b) (death), or
         (c) (disability) of Section 5 herein, including but not limited to
         termination without "cause" (as such term is defined in Subsection (a)
         of Section 5 herein), or if Mr. Fulling terminates the Employment Term
         for Good Reason, as such term is defined in Subsection (d)(i) of
         Section 5 herein (other than due to a Change in Control, as hereinafter
         defined), then the Company shall pay as severance compensation to Mr.
         Fulling an amount equal to one-half of Mr. Fulling's annual base salary

                                       4
<PAGE>

         in effect as of the Date of Termination, payable by continuing Mr.
         Fulling's regular salary at the regular bi-weekly payment intervals for
         a period of twenty six weeks after the Date of Termination, until the
         aggregate amount payable has been paid. Such severance compensation
         shall not be subject to mitigation or offset due to other earnings of
         Mr. Fulling.

                  (ii) Termination Following a Change in Control. If the
         Employment Term is terminated by Mr. Fulling or by the Company within
         one hundred eighty (180) days following a Change in Control, as such
         term is defined in Subsection (d)(ii) of Section 5 herein, then the
         Company shall pay as severance compensation to Mr. Fulling an amount
         equal to one-half of Mr. Fulling's annual base salary in effect as of
         the Date of Termination. Such severance compensation shall be payable
         by continuing Mr. Fulling's regular salary at the regular bi-weekly
         payment intervals for a period of twenty six weeks after the Date of
         Termination, until the aggregate amount payable has been paid. Such
         severance compensation shall be subject to mitigation or offset due to
         other earnings of Mr. Fulling.

         5. Termination.

                  (a) Cause. The Employment Term may be terminated at any time
at the option of the Company "for cause" (as such term is hereinafter defined),
effective upon the giving of written notice of termination to Mr. Fulling. As
used herein, the term "for cause" shall mean and be limited to: (i) any felony
conviction, (ii) willful misconduct or gross negligence in connection with the
performance of Mr. Fulling's duties, responsibilities, agreements and covenants
hereunder, which shall continue for a period of thirty (30) days after the
receipt of notice from the Company, (iii) refusal to comply with reasonable
rules, regulations, policies, directions and restrictions as may be established
from time to time by the Board of Directors of Sento, whereby such refusal
continues for thirty (30) days after the receipt of notice from the Company, or
(iv) repeated abuse (following at least one written warning from the Company) of
alcohol or any illegal use of narcotics or other controlled substances. If Mr.
Fulling is advised that he is being terminated for cause, he may submit to the
Board of Directors of Sento a written objection to such determination.

                  (b) Death. The Employment Term shall terminate automatically
upon the death of Mr. Fulling.

                  (c) Disability. In the event Mr. Fulling becomes mentally or
physically "disabled" during the Employment Term, the Employment Term shall
terminate on the Date of Termination (as such term is defined in Subsection (f)
of this Section 5) once the disability is "established." As used in this
Subsection, the term "disabled" means suffering from any mental or physical
condition, other than that resulting from the use of alcohol or illegal use of
narcotics or other controlled substances, which renders Mr. Fulling unable to
substantially perform all of his material duties and services under this
Agreement in a satisfactory manner (an "impaired condition") for a period of one
hundred twenty (120) consecutive days or for more than one hundred eighty (180)
days in any twelve (12) month period. For purposes of this Subsection, the date
that Mr. Fulling's disability is "established" shall be, in the case of an
impaired condition which exists for a period of one hundred twenty (120)
consecutive days, the one hundred twenty-first (121st) day on which such
impaired condition exists, and, in the case of an impaired condition existing
for more than one hundred eighty (180) days in any twelve (12) month period, the
one hundred eighty-first (181st) day on which such impaired condition exists.

                  (d) Termination by Mr. Fulling. Mr. Fulling may terminate the
Employment Term (1) for Good Reason, or (2) if his health should become impaired
to an extent that makes his continued performance of his duties and obligations
hereunder hazardous to his physical or mental health or his life ("impaired
health"), provided that Mr. Fulling shall have furnished the Company with a
written statement from a qualified doctor to such effect and provided further
that, at the Company's request, Mr. Fulling shall submit to an examination by a
doctor selected by the Company and such doctor shall have concurred in the
conclusion of Mr. Fulling's doctor, or (3) voluntarily, without Good Reason and

                                       5
<PAGE>

not due to "impaired health." In the event that Mr. Fulling voluntarily
terminates the Employment Term without Good Reason and not due to "impaired
health," such termination shall be treated as if it were a termination "for
cause" by the Company.

                  (i) Good Reason Defined. For purposes of this Agreement, "Good
         Reason" shall mean:

                           a. a Change in Control of the Company (as defined in
                  Subsection (d)(ii) below);

                           b. a failure by the Company to comply with any
                  material provision of this Agreement which has not been cured
                  within thirty (30) days after written notice of such
                  noncompliance has been given by Mr. Fulling to the Company; or

                           c. any purported termination of Mr. Fulling's
                  employment which is not effected pursuant to a Notice of
                  Termination satisfying the requirements of Subsection (e) of
                  this Section 5 (and for purposes of this Agreement no such
                  purported termination shall be effective);

                           d. a change in Mr. Fulling's title or duties which
                  are in material respects inconsistent with Mr. Fulling's
                  position as set forth in Section 1(c);

                                    or

                           e. a required move of Mr. Fulling's residence to a
                  location that is more than 50 miles from his existing
                  residence.

                  For the purpose of this Subsection (d)(i), no action or
         inaction by Mr. Fulling within ninety (90) days following the
         occurrence of the foregoing events shall be deemed a consent by Mr.
         Fulling to such events, absent written consent from Mr. Fulling to the
         Company.

                  (ii) Change in Control Defined. A "Change in Control" shall be
         deemed to have occurred:

                           a. upon any "person" as such term is used in Sections
                  13(d) and 14(d) of the Securities Exchange Act of 1934 (the
                  "Exchange Act") (other than any trustee or other fiduciary
                  holding securities under any employee benefit plan of the
                  Company, or any company owned, directly or indirectly, by the
                  stockholders of the Company in substantially the same
                  proportions as their ownership of common stock of the
                  Company), becoming the owner (as defined in Rule 13d-3 under
                  the Exchange Act), directly or indirectly, of securities of
                  the Company representing twenty-five percent (25%) or more of
                  the combined voting power of the Company's then outstanding
                  securities;

                           b. if, during any period of two consecutive years,
                  individuals who at the beginning of such period constitute the
                  Board of Directors, and any new director (other than a
                  director designated by a person who has entered into an
                  agreement with the Company to effect a transaction described
                  in paragraph (a), (c) or (d) of this Subsection or a director
                  whose initial assumption of office occurs as a result of
                  either an actual or threatened election contest (as such terms
                  are used in Rule 14a-11 of Regulation 14A promulgated under

                                       6
<PAGE>

                  the Exchange Act) or other actual or threatened solicitation
                  of proxies or contests by or on behalf of a person other than
                  the Board of Directors of the Company) whose election by the
                  Board of Directors or nomination for election by the Company's
                  stockholders was approved by a vote of at least two-thirds of
                  the directors then still in office who either were directors
                  at the beginning of the two-year period or whose election or
                  nomination for election was previously so approved, cease for
                  any reason to constitute at least a majority of the Board of
                  Directors;

                           c. upon the merger or consolidation of the Company
                  with any other corporation, other than a merger or
                  consolidation which would result in the voting securities of
                  the Company outstanding immediately prior thereto continuing
                  to represent (either by remaining outstanding or by being
                  converted into voting securities of the surviving entity) more
                  than fifty percent (50%) of the combined voting power of the
                  voting securities of the Company or such surviving entity
                  (which entity shall thereafter be the "Company" as defined
                  herein) outstanding immediately after such merger or
                  consolidation; provided, however, that a merger or
                  consolidation effected to implement a recapitalization of the
                  Company (or similar transaction) in which no person (other
                  than those covered by the exceptions in (a) above) acquires
                  more than twenty-five percent (25%) of the combined voting
                  power of the Company's then outstanding securities shall not
                  constitute a Change of Control of the Company; or

                           d. if the stockholders of the Company approve a plan
                  of complete liquidation of the Company or an agreement for the
                  sale or disposition by the Company of all or substantially all
                  of the Company's assets other than the sale of all or
                  substantially all of the assets of the Company to a person or
                  persons who beneficially own, directly or indirectly, at least
                  fifty percent (50%) or more of the combined voting power of
                  the outstanding voting securities of the Company at the time
                  of the sale.

                  (e) Notice of Termination. Any termination of the Employment
Term by the Company or by Mr. Fulling (other than termination pursuant to
Subsection (b) (death) of this Section 5) shall be communicated by written
Notice of Termination to the other party hereto. For purposes of this Agreement,
a "Notice of Termination" shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Employment Term under the Section and Subsection so
indicated.

                  (f) Date of Termination. "Date of Termination" shall mean the
following, respectively, if the Employment Term is terminated by: (i) Subsection
(a) (cause) of this Section 5, the date specified in the Notice of Termination,
(ii) Subsection (b) (death) of this Section 5, the date of Mr. Fulling's death,
(iii) Subsection (c) (disability) of this Section 5, thirty (30) days after
Notice of Termination is given (provided that Mr. Fulling shall not have
returned to the satisfactory performance of his duties on a full-time basis
during such thirty (30) day period), and (iv) if for any other reason, the date
on which a Notice of Termination is given.

         6. Other Business Activities. During the Employment Term and continuing
thereafter for the period during which severance compensation is being paid, Mr.
Fulling shall not, without the prior written authorization of the Board of
Directors of the Company, directly or indirectly render services of a business,
professional or commercial nature (whether for compensation or otherwise) to any
person or entity competitive or adverse to Sento's business welfare or engage in
any activity whether alone, as a partner, or as an officer, director, employee,
consultant, independent contractor, or stockholder in any other corporation,
person, or entity which is competitive with or adverse to Sento's business
welfare. This Section 6 shall not, however, prevent Mr. Fulling from investing
in securities issued by any such competitive or adverse corporation, provided
the holdings thereof by Mr. Fulling do not constitute more than five percent
(5%) of any one class of such securities. The Company covenants and agrees that
it will not assert the "inevitable disclosure doctrine" primarily in an attempt
to lengthen the term of the non-competition covenant of Mr. Fulling as set forth
in this Section 6.

                                       7
<PAGE>

         7. Confidential Information.

                  (a) Disclosure and Use. Mr. Fulling shall not disclose or use
at any time, either during or subsequent to the Employment Term, any trade
secrets or other confidential information, whether patentable or not, of Sento,
including but not limited to, any technical or non-technical data, any formula,
pattern, compilation, program, device, method, technique, drawing, process,
financial data, or any list of actual or potential customers or suppliers, of
which Mr. Fulling is or becomes informed or aware during the Employment Term,
whether or not developed by Mr. Fulling, except (i) as may be reasonably
required for Mr. Fulling to perform Mr. Fulling's employment duties with the
Company, (ii) to the extent such information becomes generally available to the
public through no wrongful act of Mr. Fulling, (iii) information which has been
disclosed as a result of a subpoena or other legal process, provided that Mr.
Fulling has provided the Company with prompt written notice of the receipt
thereof, or (iv) unless Mr. Fulling shall first secure the Company's prior
written authorization. This covenant shall survive the termination of Mr.
Fulling's employment hereunder, and shall remain in effect and be enforceable
against Mr. Fulling for so long as any such Sento secret or confidential
information retains economic value, whether actual or potential, from not being
generally known to other persons who can obtain economic value from its
disclosure or use. Mr. Fulling agrees to execute such further agreements and/or
confirmations of Mr. Fulling's obligations to Sento concerning non-disclosure of
Sento trade secrets and confidential information as Sento may reasonably require
from time to time.

                  (b) Return of Materials. Upon termination of the Employment
Term, Mr. Fulling (or in the event of termination due to Mr. Fulling's death,
his estate or devisee, legatee or other designee, as applicable) shall promptly
deliver to the Company all materials of a secret or confidential nature relating
to Sento's business which are in the possession or under the control of Mr.
Fulling.

         8. Inventions and Discoveries. Mr. Fulling hereby assigns to the
Company or its designee all of Mr. Fulling's rights, title and interest in and
to all inventions, discoveries, processes, designs, works of authorship and
other intellectual property and all improvements on existing inventions,
discoveries, processes, designs, works and other intellectual property made or
discovered by Mr. Fulling during the Employment Term. Promptly upon the
development, making, creation, or discovery of any invention, discovery,
process, design, work, intellectual property or improvement, Mr. Fulling shall
disclose the same to the Company and shall execute and deliver to the Company or
its designee such reasonable documents as the Company may request to confirm the
assignment of Mr. Fulling's rights therein, and if requested by the Company,
shall assist the Company or its designee in applying for and prosecuting any
patents and any trademark or copyright registration which may be available in
respect thereof. Any invention, discovery or other work for which none of
Sento's equipment, supplies, facilities, or confidential information was used
and which was developed entirely on Mr. Fulling's own time, is exempted from
this Section 8 so long as it (i) does not relate in any way to Sento's business,
or actual or demonstrably anticipated research and development; and (ii) does
not result in any way from Mr. Fulling's work for the Company.

         9. Severability. If any provision of this Agreement is held invalid or
unenforceable, either in its entirety or by virtue of its scope or application
to given circumstances, such provision shall thereupon be deemed (i) modified
only to the extent necessary to render the same valid, or (ii) not applicable to
given circumstances, or (iii) excised from this Agreement, as the situation may
require, and this Agreement shall be construed and enforced as if such provision
had been included herein as so modified in scope or application, or had not been
included herein, as the case may be.

         10. Enforcement. The Company will be entitled to institute proceedings
and avail itself of all remedies at law or in equity to recover damages
occasioned by a breach or threatened breach of any of the provisions of this
Agreement by Mr. Fulling and shall have the right to pursue one or more of such
proceedings and remedies simultaneously or from time to time. Mr. Fulling hereby

                                       8
<PAGE>

acknowledges that the Company would suffer irreparable injury if the provisions
of Sections 6, 7 and 8 herein, which shall survive the termination of this
Agreement, were breached and that the Company's remedies at law would be
inadequate in the event of such breach or threatened breach. Accordingly, Mr.
Fulling hereby agrees that any such breach or threatened breach may, in addition
to any and all other available remedies, be preliminarily and permanently
enjoined by any court of competent jurisdiction without any requirement that the
Company post a bond.

         11. Legal Fees and Expenses. In the event of litigation proceedings
under this Agreement, both the Company and Mr. Fulling shall pay their own
attorneys' fees and other legal expenses and costs.

         12. General Provisions.

                  (a) Notices. Any notice, request, demand or other
communication required or permitted to be given hereunder shall be in writing
and personally delivered or sent by registered or certified mail, return receipt
requested, or by a facsimile, telegram or telex followed by a confirmation
letter sent by registered or certified mail, return receipt requested, addressed
as follows:

                  To the Company:   Sento Corporation
                                    Attention:  Chief Executive Officer
                                    808 East Utah Valley Drive
                                    American Fork, Utah 84003

                  To Mr. Fulling:   Stephen W. Fulling
                                    3362 Bear River Road
                                    South Jordan, UT 84095

Either the Company or Mr. Fulling may, at any time, by notice to the other,
designate another address for service of notice on such party. When the letter,
facsimile, telegram or telex is dispatched as provided for above, the notice
shall be deemed to be made when the addressee actually receives the letter,
facsimile, telegram or telex, or upon the third (3rd) business day after the
date it is sent, whichever is earlier.

                  (b) Amendments. Neither this Agreement nor any of the terms or
conditions hereof may be waived, amended or modified except by means of a
written instrument duly executed by the party to be charged therewith.

                  (c) Captions and Headings. The captions and Section headings
used in this Agreement are for convenience of reference only, and shall not
affect the construction or interpretation of this Agreement or any of the
provisions hereof.

                  (d) Governing Law. This Agreement, and all matters or disputes
relating to the validity, construction, performance or enforcement hereof, shall
be governed, construed and controlled by and under the laws of the State of Utah
without regard to principles of conflicts of law.

                  (e) Successors and Assigns. In light of the unique personal
services to be performed by Mr. Fulling hereunder, it is acknowledged and agreed
that any purported or attempted assignment or transfer by Mr. Fulling of this
Agreement or any of Mr. Fulling's duties, responsibilities, or obligations
hereunder shall be void. The Company shall not assign this Agreement to any
third party entity which is not affiliated with the Company or any of its direct
or indirect subsidiaries. Subject to the foregoing, this Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, personal representatives,
successors and permitted assigns.

                                       9
<PAGE>

                  (f) Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original hereof, but all
of which together shall constitute one and the same Instrument.

                  (g) Entire Agreement. Except as otherwise set forth or
referred to in this Agreement, this Agreement constitutes the sole and entire
agreement and understanding between the parties hereto as to the subject matter
hereof and supersedes all prior discussions, agreements and understandings of
every kind and nature between them as to such subject matter.

                  (h) Reliance by Third Parties. This Agreement is intended for
the sole and exclusive benefit of the parties hereto and their respective heirs,
executors, administrators, personal representatives, successors and permitted
assigns, and no other person or entity shall have any right to rely on this
Agreement or to claim or derive any benefit therefrom absent the express written
consent of the party to be charged with such reliance or benefit.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the day and year first above written.

                                              SENTO CORPORATION

                                              By:  /s/ Patrick F. O'Neal
                                                 -------------------------------

                                              Title:  President and CEO
                                                    ----------------------------

                                                    /s/ Stephen W. Fulling
                                                    ----------------------------
                                                   STEPHEN W. FULLING

                                       10
<PAGE>

                                    Exhibit A

                                   Bonus Plan

Quarterly Bonus Award

A quarterly bonus award for the first three quarters of each fiscal year during
the term hereof shall be paid to Mr. Fulling according to the following table:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------ --------------------------------
                              Description of Results                                    Amount of Quarterly Bonus
------------------------------------------------------------------------------------ --------------------------------
<S>                                                                                  <C>
If actual quarterly results equal or exceed 100% (but are less than 110%) of         4.375% of annual salary
plan for both revenue and operating income, then Mr. Fulling shall be entitled
to receive a bonus equal to the amount shown in the cell to the immediate right
------------------------------------------------------------------------------------ --------------------------------
If actual quarterly results equal or exceed 110% (but are less than 120%) of         5.03125% of annual salary
plan for both revenue and operating income, then Mr. Fulling shall be entitled
to receive a bonus equal to the amount shown in the cell to the immediate right
------------------------------------------------------------------------------------ --------------------------------
If actual quarterly results equal or exceed 120% (but are less than 130%) of         5.90625% of annual salary
plan for both revenue and operating income, then Mr. Fulling shall be entitled
to receive a bonus equal to the amount shown in the cell to the immediate right
------------------------------------------------------------------------------------ --------------------------------
If actual quarterly results equal or exceed 130% of plan for both revenue and        6.5625% of annual salary
operating income, then Mr. Fulling shall be entitled to receive a bonus equal to
the amount shown in the cell to the immediate right
------------------------------------------------------------------------------------ --------------------------------
</TABLE>

Provided, however, that no quarterly bonus shall be payable to Mr. Fulling: (i)
for any quarter in which the Company has an operating loss or (ii) if the
Company fails to achieve plan results for both revenue and operating income.
Such quarterly bonus shall be accrued and owing at quarter end and payable
within 30 days after the end of each quarter.

Such quarterly bonus award amounts shall not be pro rated pursuant to paragraph
2(f) of the Agreement.

                                       11
<PAGE>

Annual Bonus Award

An annual bonus award for each fiscal year during the term hereof shall be paid
to Mr. Fulling according to the following table:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------- ----------------------------------
                             Description of Results                                     Amount of Annual Bonus
---------------------------------------------------------------------------------- ----------------------------------
<S>                                                                                <C>

If actual annual results equal or exceed 100% (but are less than 110%) of plan     25.00% of annual salary minus
for both revenue and operating income, then Mr. Fulling shall be entitled to       the aggregate amount of all
receive a bonus equal to the amount shown in the cell to the immediate right       previously paid quarterly bonuses
---------------------------------------------------------------------------------- ----------------------------------
If actual annual results equal or exceed 110% (but are less than 120%) of plan     28.75% of annual salary minus
for both revenue and operating income, then Mr. Fulling shall be entitled to       the aggregate amount of all
receive a bonus equal to the amount shown in the cell to the immediate right       previously paid quarterly bonuses
---------------------------------------------------------------------------------- ----------------------------------

If actual annual results equal or exceed 120% (but are less than 130%) of plan     33.75% of annual salary minus
for both revenue and operating income, then Mr. Fulling shall be entitled to       the aggregate amount of all
receive a bonus equal to the amount shown in the cell to the immediate right       previously paid quarterly bonuses
---------------------------------------------------------------------------------- ----------------------------------
If actual annual results equal or exceed 130% of plan for both revenue and         37.50% of annual salary minus
operating income, then Mr. Fulling shall be entitled to receive a bonus equal to   the aggregate amount of all
the amount shown in the cell to the immediate right                                previously paid quarterly bonuses
---------------------------------------------------------------------------------- ----------------------------------
</TABLE>

Provided, however, that no annual bonus shall be payable to Mr. Fulling: (i) for
any fiscal year in which the Company has an operating loss, or (ii) if the
Company fails to achieve plan results for both revenue and operating income.
Such annual bonus shall be accrued and owing at end of such fiscal year and
payable on the date that is 15 days after the Company's audited financial
statements are issued.

Such annual bonus award amounts shall not be pro rated pursuant to paragraph
2(f) of the Agreement.

                                       12
<PAGE>

For purposes of the calculations to be made pursuant to this bonus plan, the
Plans for the 2006 and subsequent fiscal years shall be those which are timely
adopted and approved by the board of directors (i.e., prior to the end of the
first quarter of the fiscal year). In the absence of a plan that is timely
approved by the board, if such failure is due to management's failure to timely
prepare and present an acceptable plan to the board, no quarterly or annual
bonuses shall be due or payable. If such failure is due to the board's failure
to adopt the plan that management has timely presented to the board, the plan to
be used for calculation of the bonuses due hereunder shall be 122% of the
revenue and operating income numbers contained in the plan for the immediately
preceding fiscal year.

                                       13

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