Document:

AGREEMENT

    

    This
      Agreement (“Agreement”) made and entered on the 22nd
      day of
      March, 2006, by and between 

     

    WICENET
      Limited,
      a
      company organized and existing under the laws of Republic of India and having
      its registered office at #301, Mayfair Court, 266/3, Nachiket Park, Baner,
      Pune,
      411 045, India, in the State of Maharastra, India (hereinafter referred to
      as
“WICENET” which expression shall include its successors and permitted assigns);
      and

     

    Nayna
      Networks, Inc., a
      Nevada
      corporation with its principal office at 4699 Old Ironsides Drive, Santa Clara,
      CA 95054, together with its subsidiary,
      Nayna Networks (India) Pvt. Ltd.,
      with
      its principal office at E-401, Crystal Plaza, New Link Road, Andheri (West),
      Mumbai, 400 053 India (hereinafter referred to as “Nayna” which expression shall
      include its successors and permitted assigns).

    WITNESSETH

     

    WHEREAS
      WICENET is a service provider and systems integrator for multimedia services
      such as triple play, e-learning, gaming, video on demand, IPTV, High Definition
      TV, personal recorder, and VoIP communications; and

     

    WHEREAS
      Nayna is a telecom equipment and network product design and development,
      manufacturing, system integration and marketing company offering Telecom
      Products and Services and specializing in the design and development of wide
      range of telecom equipments, including, but not limited to, different types
      of
      Transmission and Access products based on optical and copper media;
      and

     

    WHEREAS
      WICENET intends to submit proposals in connection with opportunities related
      to
      multimedia services to Customers in India and other countries; and

     

    WHEREAS
      WICENET desires to obtain from Nayna Network System Solutions for its multimedia
      services and other assistance as the case may arise; and

     

    WHEREAS
      it is considered desirable to record the terms of the agreement between the
      parties;

     

    NOW,
      THEREFORE IN THE SPIRIT OF MUTUAL TRUST, MUTUAL BENEFITS AND EQUALITY, BOTH
      PARTIES HERETO AGREES AS FOLLOWS:

     

    
      	1.
              -	
              Nayna
                will act as the exclusive Network Systems Solutions & equipment
                provider for the sub systems outlined in Appendix A that are required
                by
                WICENET to deploy its multimedia services. The parties will agree
                on a
                case by case basis on the cost to WICENET for this equipment. The
                expected
                cost of this equipment is in the range of $350 to $400 per user,
                including
                a handling fee to Nayna of approximately
                5%.

            

    
      	2.
              -	
              Nayna
                will provide WICENET with technical support as requested for its
                deployment of multimedia services. This technical support will be
                priced
                on an hourly basis to be determined between the
                parties.

            

    
      	3.
              -	
              Nayna
                will perform a network utilization study for each system deployed
                as the
                number of users increases by 25% beyond the initial forecasted deployment.
                

            

    

     

    
      
         

      

      
        Page1/6

        
          

        

      

      
         

      

       

    

    
      	4.
              -	
              Nayna
                also agrees to provide co-marketing support to WICENET up to $35,000
                per
                month for the first three months. Progress will be evaluated after
                three
                months, and if sales targets are met, Nayna will provide co-marketing
                support for an additional three months. After that, WICENET will
                repay
                this amount over the next six months plus 6%
                interest.

            

    
      	5.
              -	
              WICENET
                will assume the lead responsibility for its proposals to Customers.
                Nayna
                shall provide input to the WICENET proposal, including, but not limited
                to, Network diagrams, Band Width allocations, Equipment interconnection
                diagrams, Power Plant details, Network Management methodologies,
                equipment
                specifications, delivery schedule, and
                pricing.

            

    
      	6.
              -	
              WICENET
                shall be responsible for the network rollout and deployment of each
                project, including installation and commissioning. WICENET shall
                also be
                responsible for any civil works or other activity required to realize
                a
                suitable infrastructure for the
                project.

            

    
      	7.
              -	
              WICENET
                will provide the necessary support to Nayna to enable it to secure
                the
                financing for manufacturing and system integration required in the
                Agreement.

            

    
      	8.
              -	
              For
                each project, WICENET agrees to enter into a Managed Services and
                Systems
                Maintenance Agreement with Nayna for a period of at least two years
                after
                the commissioning of a project. Terms of this will be detailed in
                a
                separate agreement

            

    
      	9.
              -	
              A
                sales forecast for the first 12 months is included in Appendix B.
                WICENET
                will commit to this forecast and will be responsible for ordering
                this
                quantity of equipment from Nayna. WICENET will provide Nayna with
                a
                corporate guarantee to this effect.

            

    
      	10.
              -	
              Nayna
                will invoice WICENET upon shipment of equipment to WICENET with payment
                terms of net 90 days. Nayna will invoice WICENET monthly for all
                other
                items and payment terms will also be net 90
                days.

            

    
      	11.
              -	
              Except
                as terminated by either party as result of breach of this Agreement
                or by
                insolvency, bankruptcy or liquidation of the other party, this Agreement
                shall be effective from the date and year hereinabove and valid for
                one
                year. After that period, the Agreement shall automatically extend
                for
                additional one year periods, unless either party gives ninety days
                written
                notice that it intends to terminate the
                Agreement.

            

    
      	12.
              -	
              The
                parties hereto shall be deemed to be independent contractors, and
                the
                employees of one shall not be deemed to be employees of the other.
                Neither
                party shall act as the agent of the other, nor have the authority
                to bind
                the other party. Nothing contained in this Agreement will be construed
                to
                make a company, partnership or joint venture between the
                parties.

            

    
      	13.
              -	
              All
                costs and expenses to be incurred by either party in connection with
                the
                efforts to arrive at this Agreement will be borne and paid independently
                by each party incurring the respective expenses, except for those
                expenses
                which are explicitly and mutually agreed to in advance to be shared
                between the Parties.

            

    

     

     

    
      
         

      

      
        Page2/6

        
          

        

      

      
         

      

    

     

    
      	14.
              -	
              In
                no event will either Party be liable to the other Party for indirect,
                special, incidental, punitive or consequential damages in connection
                with
                this Agreement including, but not limited to loss of profit, loss
                of
                turnover, loss of business opportunity,
                etc.

            

    
      
        
          	15.
                  -	
                  Neither
                    party may assign its rights, title, benefits, interests, obligations
                    and
                    liabilities in this Agreement
                    to
                    any third
                    party without the prior approval of the other party except that
                    either
                    party may, with prior notice to the other party, assign its rights,
                    title,
                    benefit, interests, obligations and liabilities in either this
                    Agreement or
                    other agreements
                    contemplated hereunder to any of its affiliates and either party
                    shall
                    have the right to assign this Agreement
                    in
                    connection with a sale of its business, in whole or in part,
                    to which the
                    Agreement
                    relates provided such entity is not a competitor of the non-assigning
                    party without the consent of the non-assigning party. All other
                    assignments require the prior consent of the other party,
                    which consent shall not be unreasonably
                    withheld.

                

        

      

    

    
      	16.
              -	
              During
                the development of any WICENET Proposal, it is anticipated that
                information of a confidential and proprietary nature ("Information")
                will
                be mutually exchanged. The parties agree that all Information will
                remain
                the property of the disclosing party and will be kept in strict confidence
                by the receiving party. Information exchanged between the parties
                will not
                be divulged or disclosed to any third party or reproduced without
                the
                written permission of the disclosing party, and will, if in tangible
                form,
                be returned to the disclosing party upon
                request.

            

    
      	17.
              -	
              Neither
                Party shall be liable for any failure or delay in its performance
                under
                this Agreement that is a result of causes that are beyond its reasonable
                control, including, but not limited to, acts of God, acts of civil
                or
                military authority, fires, epidemics, floods, earthquakes, riots,
                wars,
                sabotage, labour disputes, and governmental actions, provided that
                the
                Party delayed in its performance (the "Delayed Party"): (a) gives
                the
                other Party prompt written notice of the delay and its cause, but
                in any
                event gives such notice within fifteen (15) Days of the discovery
                of the
                delay; and (b) uses commercially reasonable efforts to correct such
                failure or delay in its performance. The time for performance or
                cure by
                the Delayed Party under this Section shall be extended for a period
                equal
                to the duration of the delaying cause or for sixty (60) Days, whichever
                period is shorter. Lack of funds to make any payment due hereunder
                shall
                not be deemed to be beyond a Party's reasonable
                control.

            

    
      	18.
              -	
              In
                the event of any dispute in connection with this Agreement, the parties
                shall make every effort to reach an amicable settlement. Failing
                such
                amicable settlement the dispute shall be referred to an Arbitrator
                acceptable to both the parties for arbitration and the decision of
                the
                sole arbitrator shall be final and binding on both the parties. The
                arbitration proceedings shall be held under the rules of the United
                Nations Commission on International Trade Law (UNCITRAL). The venue
                of the
                arbitration shall be India. 

            

    

    
      	19.
              -	
              The
                applicable substantive law shall be Indian Law.

            

    
      	
              20.
                -

            	
              This
                Agreement
                states the entire understanding between the parties and supersedes
                any
                prior understanding, commitments or agreements, oral or written,
                with
                respect to the subject matter
                hereof.

            

    

    
 

    
      
         

      

      
        Page3/6

        
          

        

      

      
         

      

    

    In
      Witness whereof both parties hereto have executed this Agreement as of the
      date
      and year first above written.

    

     

    
      	For and on behalf of	For and on behalf of
	WICENET Limited	Nayna Networks,
              Inc.

    

    

     

    
 

    
      	/s/ Balasahab
              Kadam                              
              	/s/ Suresh R
              Pillai                        
              
	By: Balasahab Kadam	By: Suresh R Pillai 
	Chairman	Vice President & MD
	 	 
	 	 
	Date:	Date:

    

        

     

     

    
      
         

      

      
        Page4/6

        
          

        

      

      
         

      

    

          

    APPENDIX
      A

    

    Tentative
      List of equipment to be provided by Nayna

    

    Set
      Top
      Boxes

    ADSL+2
      Modems

    DSLAMs

    L3/L4
      Switches

    Internet
      Routers

    Firewalls

    Content
      Servers

    SDH
      Multiplexers

    Element
      Management Systems

    Power
      Plants

    

    
      
         

      

      
        Page5/6

        
          

        

      

      
         

      

    

    APPENDIX
      B

    

    Market
      Projection

    

    May
      2006:
      1 system for 2,000 users; full installation and deployment in 6 months (Purchase
      order issued in April 2006)

    July
      -
      Aug 2006: 1 system for 5,000 users; full deployment in 6 months

    Nov.
      2006
      - Jan 2007: 1 system for 10,000 users; full deployment in 9 months

    Feb.
      2007
      - Apr. 2007: 1 system for 15,000 users; full deployment in 9 months

    

    It
      is
      expected that the total value of this Agreement (equipment and system
      integration) to Nayna through March 2007 will be approximately $12 million.
      

    

    
      
         

      

      
        Page6/6CONVERTIBLE
      DEBT AGREEMENT

     

     

    This
      Convertible
      Debt Agreement
      (“Agreement”),
      dated
      as of March 27, 2006 (the “Effective
      Date”),
      is
      entered into by and among Nayna
      Networks, Inc.,
      a
      Nevada
      corporation
      (“Nayna”)
      Nayna
      Networks, Inc,
      a
      Delaware corporation and wholly owned subsidiary of Nayna, (“Nayna
      Delaware”)
      and
____________
      (“Investor”)
      and
      documents an oral agreement between Nayna Delaware and the Investor on or about
      the date on which Investor entered into the Subscription Agreement by and
      between Investor and Nayna Delaware. 

     

    Whereas: Investor
      made an investment in Nayna Delaware in contemplation of a merger of Nayna
      Delaware into a public shell corporation (the “Reverse
      Merger”).
      

    

    Whereas:
      At
      the
      time of the investment, the agreement between the Investor and Nayna Delaware
      was that the funds would be held as convertible debt and later converted into
      shares of the parent corporation at a conversion price of $1.00 per share
      following the closing of the Reverse Merger. 

    

    Whereas:
      As
      drafted the investment documents executed by the Investor and Nayna Delaware
      reflect the purchase of shares in Nayna Delaware, instead of the actual
      agreement between the parties to hold the investment as convertible debt and
      to
      later convert the funds into shares of the parent corporation following
      assumption of such debt by the parent upon the consummation of the Reverse
      Merger. 

    

    Whereas:
      If
      the
      funds delivered by the Investor were used to purchase shares of Nayna Delaware,
      which were subsequently converted into shares of Nayna as a result of the
      Reverse Merger, the Investor would have received only approximately 19% of
      the
      shares which Nayna Delaware and the Investor believed the Investor was entitled
      to purchase. 

    

    Whereas:
      Neither
      Nayna nor Nayna Delaware has issued any shares of their respective capital
      stock
      to the Investor. 

    

    Whereas:
      Nayna
      and
      the Investor desire to clarify their understanding of the investment made by
      the
      Investor.

     

    Now,
      therefore,
      in
      consideration of the foregoing premises and the mutual covenants contained
      in
      this Agreement, the parties agree as follows:

     

    1. Acknowledgement
      of Convertible Debt.
      Nayna,
      Nayna Delaware and Investor each hereby acknowledges and agrees that the funds
      delivered by Investor in connection with the Subscription Agreement by and
      between Nayna Delaware and the Investor (the “Subscription
      Agreement”)
      were
      intended to be held in the form of convertible debt to be converted into shares
      of a public parent corporation following the completion of the Reverse Merger
      at
      a conversion price of $1.00 per share. 

    

      
        
          (2) 

           

        

        
           

          
            

          

        

        
           

          (b) 

        

      

    

     

    2. Conversion
      of Convertible Debt.
      Investor hereby agrees to convert all such convertible debt held by Investor
      at
      a conversion price of $1.00 per share into _____________ shares of Nayna common
      stock effective as of the date of this Agreement. 

     

    3. 144
      Acknowledgement.
      Nayna
      acknowledges that, because the investment has been held as convertible debt,
      for
      purposes of sales under Rule 144 of the Securities Act of 1933, as amended,
      the
      date of acquisition of Nayna stock obtained upon conversion of the convertible
      debt hereunder will tack back to April 1, 2005, the date the convertible debt
      was assumed by Nayna upon the closing of the Reverse Merger. 

    

    4. Subscription
      Agreement and Registration Rights Agreements.
      Investor, Nayna and Nayna Delaware each hereby agrees and acknowledges that
      the
      Subscription Agreement and the related Registration Rights Agreement by and
      between Nayna Delaware and the Investor (the “Registration
      Rights Agreement”)
      are
      hereby terminated and cancelled in all respects, and Investor, Nayna and Nayna
      Delaware shall have no further obligation, duty or liability under the
      Subscription Agreement or the Registration Rights Agreement.

    

    5. Release.
      

    

    (a) Investor,
      for itself and its employees, shareholders, officers, directors,
      representatives, heirs, successors and assigns and all other persons acting
      on
      behalf of them or claiming under them, do hereby forever release, acquit and
      discharge Nayna, its affiliates and their respective employees, shareholders,
      officers, directors, representatives, heirs, successors and assigns
      (collectively referred to herein as the “Nayna
      Released Parties”)
      from
      any and all lawsuits, liabilities, actions, causes of action, claims, demands,
      damages, costs and debts of any kind whatsoever, both at law and in equity,
      whether known or unknown, which Investor has or may have against the Nayna
      Released Parties based on acts or omissions occurring up to and including the
      date of this Agreement, arising out of the Subscription Agreement, the related
      Registration Rights Agreement and any other acts of omissions of any nature
      whatsoever, including, without limitation, the failure to issue the stock
      contemplated by the Subscription Agreement. Nothing herein shall constitute:
      (i)
      a release, discharge or waiver of the rights of Investor to enforce this
      Agreement; or (ii) a release or waiver of Investor’s claims against any other
      person or entity.

    

    (b) Investor
      represents
      to Nayna and its affiliates that, as of the date of execution of this Agreement,
      Investor has not filed with any agency or court any complaints or lawsuits
      against any of the Nayna Released Parties. Investor agrees that it will not,
      directly or indirectly, institute, be a party to, or participate in, any action,
      lawsuit or administrative proceeding against any of the Nayna Released Parties
      arising from any claim of any type or nature either occurring before or existing
      as of the date of execution of this Agreement, except as required by law;
      provided, however, that nothing contained in this Agreement will be construed
      to
      prohibit an action for breach of the Agreement itself. Investor agrees to
      indemnify the Nayna Released Parties from all claims, costs and expenses,
      including all attorneys' fees, arising out of any breach of this Agreement
      by
      Investor or any misrepresentation of fact made by Investor which is contained
      in
      or made the basis of this Agreement. Investor agrees to execute, at the request
      of either Nayna or its affiliates, such additional waivers, releases,
      indemnities or other instruments as either Nayna or its affiliates will
      reasonably deem necessary to effectuate the provisions of this
      Agreement.

    

      
        
          (2) 

           

        

        
           

          
            

          

        

        
           

          (b) 

        

      

    

     

    
      	 	
              6.

            	
              Miscellaneous.

            

    

    

    6.1 Governing
      Law; Jurisdiction. This
      Agreement, and all disputes arising out of or relating to this Agreement, shall
      be governed by, and construed and interpreted in accordance with, the laws
      of
      the State of California, without regard to conflicts of laws principles of
      California or any other jurisdiction. 

    

    6.2 Modification.
      No
      amendment or modification of any provision of this Agreement shall be effective
      unless in writing signed by both parties. No provision of this Agreement shall
      be varied, contradicted or explained by any oral agreement, course of dealing
      or
      performance or any other matter not set forth in an agreement in writing and
      signed by both parties.

    

    6.3 Severability.
      If any
      provision of this Agreement should be held invalid, illegal or unenforceable
      in
      any jurisdiction, the parties shall negotiate in good faith a valid, legal
      and
      enforceable substitute provision that most nearly reflects the original intent
      of the parties and all other provisions hereof shall remain in full force and
      effect in such jurisdiction and shall be liberally construed in order to carry
      out the intentions of the parties hereto as nearly as may be possible. Such
      invalidity, illegality or unenforceability shall not affect the validity,
      legality or enforceability of such provision in any other jurisdiction.

    

    6.4 Entire
      Agreement.
      The
      parties acknowledge that this Agreement sets forth the entire agreement and
      understanding of the parties with respect to the subject matter hereof, and
      supersedes all prior and contemporaneous discussions, agreements and writings
      in
      respect hereto. 

    

    6.5 Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original, but both of which together shall constitute one and the same
      instrument.

     

     

    
      
        (2) 

         

      

      
         

        
          

        

      

      
         

        (b) 

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
      duly authorized representatives, and it will be effective as of the date first
      above written. 

     

    
      	
              NAYNA
                NETWORKS, INC., a Nevada corporation

               

               

               

            	
              INVESTOR

            
	
              By:     

              Name:
                Naveen S. Bisht

              Title:
                President and CEO

            	
              By:       

              Name:     

              Title:      
                

            
	 	 
	
              NAYNA
                NETWORKS, INC., a Delaware corporation

               

               

               

            	
               

               

               

            
	
              By:     

              Name:
                Naveen S. Bisht

              Title:
                President and CEO

            	 

    

    

      
        
          (2)

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