Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - ITonis, Inc. - Exhibit 10.3

EXHIBIT 10.3 

 

 

IOCEAN MEDIA LIMITED 

and 

AQUOS MEDIA LIMITED 

and 

ITONIS INC. 

 

 

	 
	AMENDED AND RESTATED 
	SHARE PURCHASE AGREEMENT 
	  
	January 21, 2008 
	 

TABLE OF CONTENTS 

		  	Page 
		  	  
	PART 1 DEFINITIONS AND INTERPRETATION 	2 
		  	  
		DEFINITIONS 	2 
		SCHEDULES 	4 
		  	  
	PART 2 PURCHASE AND SALE 	4 
		  	  
		PURCHASE AND SALE OF AQUOS SHARES 	4 
		PURCHASE PRICE 	5 
		CLOSING 	5 
		TERMINATION OF LETTER OF INTENT 	5 
		PILOT LOI 	5
		IPTV LICENSES AND PERMITS 	5 
		ISSUANCE OF THE PURCHASER SHARES 	5 
		  	  
	PART 3 REPRESENTATIONS AND WARRANTIES OF THE VENDOR
      	6 
		  	  
		REPRESENTATIONS AND WARRANTIES IN RESPECT OF THE VENDOR 	6 
		  	  
	PART 4 REPRESENTATIONS AND WARRANTIES IN RESPECT OF THE
      COMPANIES 	8 
		  	  
		REPRESENTATIONS AND WARRANTIES IN RESPECT OF THE COMPANIES
      	8 
		OTHER REPRESENTATIONS 	15 
		RELIANCE 	15 
		SURVIVAL 	15 
		  	  
	PART 5 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
      	15 
		  	  
		REPRESENTATIONS AND WARRANTIES IN RESPECT OF THE PURCHASER
      	15 
		OTHER REPRESENTATIONS 	17 
		RELIANCE 	17 
		SURVIVAL 	17 
		  	  
	PART 6 PRE-CLOSING COVENANTS 	17 
		  	  
		CONDUCT OF BUSINESS 	17 
		FINANCIAL STATEMENTS 	18 
		ACCESS TO RECORDS 	18 
		EXCLUSIVE DEALINGS 	19 
		FEES AND EXPENSES 	19 
		  	  
	PART 7 PURCHASER’S CONDITIONS PRECEDENT 	19 
		  	  
		PURCHASER’S CONDITIONS 	19 
		WAIVER 	20 
		  	  
	PART 8 VENDOR’S CONDITIONS PRECEDENT 	20 
		  	  
		VENDOR’S CONDITIONS 	20 
		WAIVER 	21 
		  	  
	PART 9 CLOSING 	21 
		  	  
		CLOSING DATE AND LOCATION 	21 
		VENDOR’S CLOSING DOCUMENTS 	21 
		PURCHASER’S CLOSING DOCUMENTS 	22 
		  	  
	PART 10 TERMINATION 	23 
		  	  
		TERMINATION RIGHTS 	23 
		EFFECT OF TERMINATION 	23 
		  	  
	PART 11 GENERAL 	24 

- ii - 

	 	GOVERNING
      LAW AND ATTORNMENT 	24
      
	 	NOTICES
      	24
      
	 	TIME
      OF ESSENCE 	24
      
	 	PUBLIC
      NOTICES 	25
      
	 	ENTIRE
      AGREEMENT 	25
      
	 	WAIVER
      AND CONSENT 	25
      
	 	SEVERABILITY
      	25
      
	 	AMENDMENTS
      	25
      
	 	FURTHER
      ASSURANCES 	25
      
	 	ASSIGNMENT
      	25
      
	 	ENUREMENT
      	26
      
	 	COUNTERPARTS
      	26
      

AMENDED AND RESTATED 
SHARE PURCHASE AGREEMENT 

THIS AGREEMENT is made effective as of January 21, 2008,

AMONG: 

  
    IOCEAN MEDIA LIMITED, incorporated and registered
      in the British Virgin Islands with company number 1024086 and with its registered
      office at Portcullis TrustNet Chambers PO Box 3444 Road Town, Tortola, British
      Virgin Islands 

    (the “Vendor”) 

  

AND: 

  
    AQUOS MEDIA LIMITED, incorporated and registered
      in the British Virgin Islands with its registered office at Portcullis TrustNet
      Chambers PO Box 3444 Road Town, Tortola, British Virgin Islands 

    (“Aquos”) 

  

AND: 

  
    ITONIS INC., a Nevada corporation with its registered
      address at 52 East John Street, Carson City, Nevada 89706 USA

    (the “Purchaser”) 

  

WHEREAS: 

(A)                     On
September 8, 2007, the Vendor and the Purchaser entered into a Share Purchase
Agreement (the” Original Agreement”) whereby the Vendor, which owns all of the
Aquos Shares, agreed to sell the Aquos Shares to the Vendor;

(B)                     On
October 23rd_, 2007, the Vendor and the Purchaser agreed to complete the
transfer of the Aquos Shares from the Vendor to the Purchaser (the “Closing
Date”); 

(C)                    
Between the Closing Date and the date of this Agreement, the Vendor and the
Purchaser encountered extraordinary obstacles to the full transfer of the Aquos
Shares and the remittance of the compensation for the Aquos Shares from the
Purchaser to the Vendor in accordance with the terms of the Original Agreement;

(D)                     The
Vendor and the Purchaser now desire to complete the transactions contemplated in
the Original Agreement by and through the execution of this Amended and Restated
Share Purchase Agreement; and 

(E)                     The
Vendor wishes to sell to the Purchaser, and the Purchaser wishes to purchase
from the Vendor, the Aquos Shares on the terms and subject to the conditions set
out in this Agreement, 

THIS AGREEMENT WITNESSES THAT the Parties, intending to
be legally bound, covenant and agree as follows: 

- 2 - 

PART 1

DEFINITIONS AND INTERPRETATION 

Definitions 

1.1                   In
this Agreement, including the recitals and schedules, the following words and
phrases have the following meanings: 

(a)         
“Affiliate” means any officer, director, shareholder or employee of Aquos
or any member of the immediate family of any such officer, director, shareholder
or employee. Members of the immediate family of an officer, director,
shareholder or employee shall consist of the spouse, parents and children of
such officer, director, shareholder or employee; 

(b)         
“Aquos Shares” means all of the issued and outstanding shares in the
capital of Aquos; 

(c)         
“Assets” means all property or assets of any nature or kind, whether real
property or personal property, tangible or intangible, including the Licenses
and Permits secured by Aquos as of Closing; 

(d)         
“Audited Financial Statements” means the audited financial statements of
Aquos required to be filed by the Purchaser with the SEC in accordance with its
reporting obligations under the Exchange Act as a result of the Closing, which
audited financial statements will include, without limitation, financial
statements for the years ended December 31, 2006 prepared in accordance with
GAAP and including (i) audited balance sheets as at December 31, 2006, (ii)
related statements of income, cash flows and changes in shareholder’s equity for
the fiscal years ended December 31, 2006, (iii) notes to the financial
statements, and (iv) the audit report of an auditor registered with the United
States Public Company Accounting Oversight Board and acceptable to the United
States Securities and Exchange Commission; 

(e)         
“Business Day” means any day other than a Saturday, Sunday or public
holiday in Vancouver, British Columbia; 

(f)         
“Closing” means the completion of the purchase and sale of the Aquos
Shares on the terms and subject to the conditions contained in this Agreement;

(g)         
“Closing Date” means the date of Closing, as determined in accordance
with Section 2.3 of this Agreement; 

(h)         
“Company” or “Companies” means either the Vendor or Aquos, or both
of them, as the context requires; 

(i)         
“Consents and Approvals” means all necessary consents and approvals
required to be obtained in connection with the execution and delivery by Aquos
and the Vendor of this Agreement and the consummation of the transactions
described herein, as listed in Schedule A, which consents and approvals will
include all consents and approvals required to be obtained under all licenses
and permits secured by Aquos for the conduct and operation of its planned
television over the Internet business and the gaming business, including the
Licenses and Permits, in order that the Purchaser, through Aquos, will have the
full benefit of such licenses and permits following Closing; 

(j)         
“Disclosure Schedule” means the disclosure schedule attached in Schedule
B. The Disclosure Schedule will be arranged in sections corresponding to the
numbered and lettered sections contained in this Agreement and the disclosure in
any section qualifies other sections in 

- 3 - 

this Agreement only to the extent that
such disclosure specifically references the fact that it also qualifies or
applies to such other specified sections; 

(k)         
“Employees and Contractors” means all individuals who are full-time,
part-time or temporary employees or individuals engaged on contract to provide
employment or similar services in respect of Aquos; 

(l)         
“Employment Agreement” means an employment agreement between the
Purchaser and

[Intentionally omitted]; 

(m)         
“Encumbrance” means any lien, claim, charge, pledge, hypothecation,
security interest, mortgage, title retention agreement, option, assignment,
license or other encumbrance or adverse claim of any nature or kind whatsoever;

(n)         
“Exchange Act” means the United States Securities Exchange Act of 1934,
as amended; 

(o)         
“Financial Statements” means the Audited Financial Statements and the
Interim Financial Statements; 

(p)         
“GAAP” means United States generally accepted accounting principles. All
determinations of an accounting nature in respect of Aquos will be made in a
manner consistent with GAAP and past practice with no changes in the method of
application of the Company’s accounting policies or changes in the method of
applying the Company’s use of estimates; 

(q)         
“Government Entity” means (i) any international, multinational, national,
federal, provincial, state, municipal, local or other government or public
department, central bank, court, commission, board, bureau, agency or
instrumentality, domestic or foreign, (ii) any subdivision or authority of any
of the foregoing, or (iii) any quasi-government or private body, in each case,
having jurisdiction on behalf of any nation, province, territory, state or other
geographic subdivision thereof and exercising any regulatory, judicial,
legislative, expropriation or taxing authority; 

(r)         
“Intellectual Property” means, in respect of a Person, all patents
(including utility patents, design patents, registered industrial designs,
utility models and certificates of addition), patent applications, copyright,
trade marks (including trade names, business names and service marks),
semiconductor topography rights, information rights in computer software and
databases, internet domain names, know-how, trade secrets, other similar
instruments or rights, whether registered or unregistered, and all rights in
relation to any of the foregoing which are recognized in any jurisdiction, of
the Person; 

(s)         
“Interim Financial Statements” means the unaudited interim financial
statements of Aquos required to be filed by the Purchaser with the SEC in
accordance with its reporting obligations under the Exchange Act as a result of
the completion of the Closing, which unaudited interim financial statements will
include, without limitation, financial statements for the six months ended June
30, 2007 prepared in accordance with GAAP and including (i) unaudited balance
sheet as at June 30, 2007, (ii) related statements of income, cash flows and
changes in shareholder’s equity for the six months ended June 30, 2007, and
(iii) notes to the financial statements, each of which shall have been reviewed
by the auditor for Aquos; 

(t)         
“Licenses and Permits” means the licenses and permits to be obtained by
Aquos for the conduct and operation of its planned television over the Internet
business as set forth in Schedule B hereto; 

- 4 - 

(u)         
““Material Contracts” means all agreements that are material to the
Company’s business or that were not entered into in the ordinary course of
business, whether oral or written, to Aquos is a party, which are currently in
effect, and which relate to the operation of the Company’s business, including
without limitation the agreements listed in Schedule D and the Pilot LOI upon
assignment by the Vendor to Aquos; 

(v)         
“Party” means each party to this Agreement individually and
“Parties” mean each Party collectively; 

(w)         
“Person” includes an individual, corporation, limited liability
corporation, unlimited liability company, body corporate, partnership, limited
partnership, joint venture, association, trust or unincorporated organization or
any trustee, executor, administrator or other legal representative thereof or
any other entity (including a Government Entity); 

(x)         
“Pilot” means Pilot Media Limited, a corporation incorporated under the
laws of the People’s Republic of China; 

(y)         
“Purchaser Shares” has the meaning ascribed to it in Section 2.2 of this
Agreement; 

(z)          “Purchaser’s
  Closing Documents” means the closing documents set forth in §9.3
  to be delivered by the Purchaser on or before the Closing Date;

(aa)         
“SEC” means the United States Securities and Exchange Commission; 

(bb)         
“Securities Act” means the United States Securities Act of 1933, as
amended;

(cc)          “Vendor’s
  Closing Documents” means the closing documents set forth in §9.2
  to be delivered by the Vendor and Aquos on or before the Closing Date; and

Schedules 

1.2                  
The following schedules are attached to, form part of, and are hereby
incorporated by reference into this Agreement: 

Schedule A – Consents and Approvals

Schedule B – Disclosure Schedule 

Schedule C – IPTV Licenses and Permits

Schedule D – Material Contracts 

PART 2

PURCHASE AND SALE 

Purchase and Sale of Aquos Shares 

2.1                  
In reliance on the representations and warranties, and on the terms and subject
to the conditions contained in this Agreement, at the Closing, the Purchaser
will purchase from the Vendor, and the Vendor will sell, assign and transfer to
the Purchaser the Vendor’s Aquos Shares, free and clear of all Encumbrances.

- 5 - 

Purchase Price 

2.1                  
The total consideration payable by the Purchaser to the Vendor for the Aquos
Shares will be the issuance of 16,138,370 shares of common stock of the
Purchaser (the “Purchaser Shares”). 

Closing 

2.2                  
The Closing will take place on January 29, 2008. 

Termination of Original Agreement 

2.3                  
This Agreement supersedes and replaces in whole the Original Agreement which is
hereby terminated and of no further force or effect. 

IPTV Licenses and Permits 

2.4                  
Forthwith following execution of this Agreement, the Vendor will use its best
efforts to ensure that the IPTV Licenses and Permits are secured by Aquos by no
later than April 1, 2008. The obligations in this Section 2.6 will survive
closing of this Agreement. 

Issuance of the Purchaser Shares 

2.5                  
The Vendor acknowledges and agrees that the Purchaser Shares will be offered and
sold to the Vendor without such offers and sales being registered under the
Securities Act and will be issued to the Vendor in an offshore transaction
outside of the United States in accordance with a safe harbour from the
registration requirements of the Securities Act provided by Rule 903 of
Regulation S of the Securities Act based on the representations and warranties
of the Vendor in this Agreement. As such, the Vendor further acknowledges and
agrees that the Purchaser Shares will, upon issuance, be “restricted securities”
within the meaning of the Securities Act. The Vendor acknowledges and agrees
that all certificates representing the Purchaser Shares will be endorsed with
the following legend, or such similar legend as deemed advisable by legal
counsel for the Purchaser, to ensure compliance with Regulation S of the
Securities Act and to reflect the status of the Purchaser Shares as restricted
securities: 

  
    “THE SECURITIES REPRESENTED BY THIS CERTIFICATE
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND
      HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
      OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT. SUCH
      SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED
      EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN
      EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
      FROM REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES
      MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.” 

  

The Vendor acknowledges that that the Purchaser Shares may not
be offered, resold, pledged or otherwise transferred except through an exemption
from registration under the Securities Act or pursuant to an effective
registration statement under the Securities Act and in accordance with all
applicable state securities laws and the laws of any other jurisdiction. The
Vendor agrees to resell the Purchaser Shares only in accordance with the
provisions of Regulation S of the Securities Act, pursuant to registration under
the Securities Act, or pursuant to an available exemption from registration
pursuant to the Securities Act. The Vendor agrees that the Company will refuse
to register any transfer of the Purchaser Shares not made in accordance with the
provisions of Regulation S of the Securities Act, pursuant to 

- 6 - 

registration under the Securities Act, pursuant to an available
exemption from registration. The Vendor agrees that the Purchaser may require
the opinion of legal counsel reasonably acceptable to the Purchaser in the event
of any offer, sale, pledge or transfer of any of the Purchaser Shares by the
Vendor pursuant to an exemption from registration under the Securities Act.

PART 3 

REPRESENTATIONS AND WARRANTIES OF THE VENDOR 

Representations and Warranties in Respect of the Vendor

3.1                  
The Vendor represents and warrants to the Purchaser that as at both the
effective date of this Agreement and the Closing Date 

(a)         
Capacity – the Vendor has all necessary legal right and capacity to
execute and deliver this Agreement, to transfer the legal and beneficial title
and ownership of the Aquos Shares owned by the Vendor to the Purchaser, to
perform all of the Vendor’s obligations hereunder and to comply with the terms
and provisions of this Agreement, and this Agreement constitutes a valid and
binding obligation of the Vendor in accordance with its terms, 

(b)          No
Approvals Required – with the exception of the Consents and Approvals set
forth in the Disclosure Schedule, no authorization, approval, order, license
permit or consent of any Government Entity nor the registration, declaration or
filing by the Vendor with any such Government Entity is required in order for
the Vendor 

(i)          to
execute and deliver this Agreement or any other agreement, certificate or
instrument to be executed or delivered by the Vendor pursuant to or contemplated
by this Agreement, 

(ii)          to
incur the obligations expressed to be incurred by the Vendor pursuant to this
Agreement, or 

(iii)          to
duly perform and observe the terms and provisions of this Agreement, 

(c)          No
Conflict – the Vendor is not a party to, bound by or subject to any
indenture, mortgage, lease, agreement, instrument, statute, regulation, order,
judgment, decree or law which would be violated, contravened or breached by, or
under which any default would occur or which gives rise to a requirement to
obtain any authorization, consent, approval or waiver from any third Person as a
result of, and there are no actions, claims, suits, litigation, investigations
or proceedings pending or threatened against or affecting the Vendor which would
prevent 

(i)          the
execution and delivery by the Vendor of this Agreement or any other agreement,
certificate or instrument to be executed or delivered by the Vendor pursuant to
or contemplated by this Agreement, or 

(ii)          the
performance by the Vendor of its obligations pursuant to, or the observance by
the Vendor of any of the terms and provisions of, this Agreement, 

(d)          No
Other Agreements – no Person has any agreement, option or right, present or
future, contingent, absolute or capable of becoming an agreement, option or
right, or which with the passage of time or the occurrence of any event could
become an agreement, option or right, to require the Vendor to, sell, transfer,
assign or otherwise dispose of the Aquos Shares, except for the Purchaser, 

- 7 - 

(e)          Title
to Aquos Shares – the Vendor owns and has good and marketable title to all
of the Aquos Shares as the legal and beneficial owner thereof, free of all
Encumbrances whatsoever and such Aquos Shares represent all of the Aquos Shares
owned by the Vendor. Such Aquos Shares are not subject to any Voting Agreement
or other agreement relating to ownership, voting, dividend rights or their
disposition, 

(f)         
Undisclosed Information – the Vendor does not have any information
relating to the Aquos Shares owned by the Vendor, which is not generally known
or which has not been expressly disclosed in writing to the Purchaser by the
Vendor and which if known could reasonably be expected to have an adverse effect
on the Vendor’s ownership of or right, authority, power or capacity to transfer
to the Purchaser legal and beneficial title and ownership of all of the Aquos
Shares, free and clear of all Encumbrances, and 

(g)          Not a
U.S. Person - The Vendor is not a “U.S. Person” as defined by Regulation S
of the Securities Act, as set forth below, and is not acquiring the Purchaser
Shares for the account or benefit of a U.S. Person. 

A “U.S. Person” is defined by
Regulation S of the Act to be any person who is: 

	 	(a) 	
      any natural person resident in the United
      States;

	 	 	 	 
	 	(b) 	
      any partnership or corporation organized or
      incorporated under the laws of the United States;

	 	 	 	 
	 	(c) 	
      any estate of which any executor or administrator is a
      U.S. person;

	 	 	 	 
	 	(d) 	
      any trust of which any trustee is a U.S.
      person;

	 	 	 	 
	 	(e) 	
      any agency or branch of a foreign entity located in
      the United States;

	 	 	 	 
	 	(f) 	
      any non-discretionary account or similar account
      (other than an estate or trust) held by a dealer or other fiduciary
      organized, incorporate, or (if an individual) resident in the United
      States; and

	 	 	 	 
	 	(g) 	
      any partnership or corporation if:

	 	 	 	 
	 		(i) 	
      organized or incorporated under the laws of any
      foreign jurisdiction; and

	 	 	 	 
	 		(ii) 	
      formed by a U.S. person principally for the purpose of
      investing in securities not registered under the Act, unless it is
      organized or incorporated, and owned, by accredited Subscribers [as
      defined in Section 230.501(a) of the Act] who are not natural persons,
      estates or trusts.

(h)          No
Offer in the U.S. - The Vendor was not in the United States at the time the
offer to purchase the Purchaser Shares was received or at the time this
Agreement was executed. 

(i)         
Status as a Sophisticated Purchaser - The Vendor has such knowledge,
sophistication and experience in business and financial matters such that it is
capable of evaluating the merits and risks of the investment in the Purchaser
Shares. The Vendor has evaluated the merits and risks of an investment in the
Purchaser Shares. The Vendor can bear the economic risk of this investment, and
is able to afford a complete loss of this investment.

- 8 - 

(j)         
Acquisition for Investment - The Purchaser Shares will be acquired by the
Vendor for investment for the Vendor's own account, not as a nominee or agent,
and not with a view to the resale or distribution of any part thereof, and that
the Vendor has no present intention of selling, granting any participation in,
or otherwise distributing the same. The Vendor does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of the
Purchaser Shares. 

(k)         
Information Regarding the Purchaser - The Vendor has had full opportunity
to ask questions and receive answers from representatives of the Purchaser
regarding the business, properties, prospects and financial condition of the
Purchaser, each as is necessary to evaluate the merits and risks of investing in
the Purchaser Shares. The Vendor believes it has received all the information it
considers necessary or appropriate for deciding whether to purchase the
Purchaser Shares. The Vendor has had full opportunity to discuss this
information with the Vendor’s legal and financial advisers prior to execution of
this Agreement. 

(l)         
Reliance by Purchaser on Representations - The Vendor acknowledges that
the Purchaser will rely on these representations in completing the issuance of
the Purchaser Shares to the Vendor.

PART 4 

REPRESENTATIONS AND WARRANTIES IN RESPECT OF THE COMPANIES

Representations and Warranties in Respect of the Companies

4.1                  
The Vendor and Aquos represent and warrant to the Purchaser that as at both the
effective date of this Agreement and the Closing Date, except to the extent set
forth in the Disclosure Schedule, 

(a)         
Organization and Good Standing — Aquos is duly incorporated and is
validly existing and in good standing under the laws of its jurisdiction of
incorporation, and has all necessary legal and corporate power and authority to
own its property and assets and to carry on its business as presently conducted.
Aquos has delivered to the Purchaser complete and correct copies of its
constating documents including its certificate of incorporation and its articles
and bylaws, all as may be amended, and the minute books of Aquos which contain
complete and correct copies of all proceedings and actions taken at all meetings
of, or effected by written consent of, the shareholders and the board of
directors (including any committees thereof) of Aquos. Aquos is duly qualified,
licensed or registered to carry on business in the jurisdictions where it owns,
leases or operates its property, 

(b)          No
Approvals Required – except as expressly disclosed in the Disclosure
Schedule, no vote or consent of the holders of any class or series of Aquos
Shares is necessary to approve and adopt this Agreement or to consummate any of
the transactions contemplated hereby, and no authorization, approval, order,
license, permit or consent of any Government Entity nor the registration,
declaration or filing by Aquos with any such Government Entity is required in
order for Aquos 

(i)          to
execute and deliver this Agreement or any other agreement, certificate or
instrument to be executed or delivered by Aquos pursuant to or contemplated by
this Agreement, 

(ii)          to
incur the obligations expressed to be incurred by Aquos pursuant to this
Agreement, or 

- 9 - 

(iii)          to
duly perform and observe the terms and provisions of this Agreement, 

(c)          No
Conflict – subject to obtaining the Consents and Approvals, Aquos is not a
party to, bound by or subject to any indenture, mortgage, lease, agreement,
instrument, statute, regulation, order, judgment, decree or law which would be
violated, contravened or breached by, or under which any default would occur, or
which could be terminated, cancelled or accelerated, in whole or in part, or
which allows any Person to exercise any rights or gives rise to a requirement to
obtain any authorization, consent, approval or waiver from any third Person, as
a result of the execution and delivery of this Agreement or the consummation of
any of the transactions provided for herein, 

(d)          No
Litigation – there is no claim, suit, action, litigation, arbitration
proceeding or Government Entity proceeding, including any appeal or application
for review, in progress, pending or to the knowledge of the Vendor or Aquos
threatened against, or relating to Aquos or affecting Aquos’s Assets or
business, 

(e)         
Compliance with Laws – Aquos and its Assets, operations and business have
been and are being operated and have been and are in material compliance with
all laws or orders applicable to its business or operations. Aquos has not
received a notice or other communication alleging a possible violation of any
law or order applicable to its business or operations, 

(f)         
Capitalization — the authorized and issued share capital of Aquos,
together with the names and residency of each shareholder and the number, class
and kind of shares outstanding, is as set forth in the Disclosure Schedule. All
such outstanding shares in the capital of Aquos have been duly and validly
issued and are outstanding as fully paid and non-assessable shares in the
capital of Aquos and represent all of the issued and outstanding shares in the
capital of Aquos, 

(g)          No
Other Agreements – no Person has any agreement, option or right, present or
future, contingent, absolute or capable of becoming an agreement, option or
right, or which with the passage of time or the occurrence of any event could
become an agreement, option or right, to require Aquos to 

(i)          allot or
issue any further or other share in its capital or any other security
convertible or exchangeable into any share in its capital, 

(ii)          convert
or exchange any security into or for any share in its capital, or 

(iii)         
purchase, redeem or otherwise acquire any issued and outstanding share in its
capital, 

(h)         
Financial Statements – upon delivery to the Purchaser, and to the extent
required by the Securities Act, the Financial Statements will (i) be derived
from and will be in accordance with the books and records of Aquos, (ii) will
have been prepared in accordance with GAAP consistently applied with past
practice, and (iii) fairly present the financial position of Aquos as at each
date and the results of operations, cash flows and the changes in shareholder’s
equity for each period reported, 

(i)         
Accuracy of Records – all financial transactions of Aquos have been
fairly reflected in the accounting and financial books and records of Aquos, and
such books and records are stated in reasonable detail and fairly reflect the
basis for the Financial Statements, the Audited Financial Statements and the
Interim Financial Statements, 

(j)         
Bankruptcy – Aquos has not made an assignment in favour of its creditors
or a proposal in bankruptcy to its creditors or any class thereof, and no
petition for a receiving order has been 

- 10 - 

presented in respect of it. Aquos has
not initiated proceedings with respect to a compromise or arrangement with its
creditors, or for its winding-up, liquidation or dissolution. No receiver or
interim receiver has been appointed in respect of Aquos or its Assets and no
execution or distress has been levied on any Assets, nor have proceedings been
commenced in respect of any of the foregoing, 

(k)         
Absence of Undisclosed Liabilities – except to the extent disclosed,
reflected or reserved against in the Financial Statements or the Disclosure
Statement, Aquos does not have any outstanding indebtedness or any liabilities
or obligations (whether accrued, accruing, absolute, contingent or otherwise)
and all such reserve amounts are adequate based on the past experience of Aquos
and are consistent with the accounting procedures used by Aquos in previous
fiscal periods and there is nothing which indicates that such reserves are not
adequate or that higher reserves should be taken, 

(l)         
Absence of Changes – since December 31, 2007 and except as disclosed in
the Disclosure Statement, there have not been 

(i)          any
changes in the condition or operations of the business, Assets or financial
affairs of Aquos which are, individually or in the aggregate, materially
adverse, or 

(ii)          any
damage, destruction or loss, labour unrest or other event, development or
condition, of any character (whether or not covered by insurance) which is not
generally known or which has not been disclosed to the Purchaser in writing, or
which to the knowledge of the Vendor, may materially adversely affect the
business or Assets of Aquos, 

(m)         
Absence of Unusual Transactions – since December 31, 2007 and except as
disclosed in the Disclosure Statement, Aquos has not 

(i)         
transferred, assigned, sold or otherwise disposed of any Asset shown or
reflected in the Financial Statements or forgiven, cancelled or released any
debt or claim, except in the ordinary and normal course of its business, 

(ii)         
incurred or assumed any obligation or liability (fixed or contingent), except
unsecured current obligations and liabilities incurred in the ordinary and
normal course of its business, 

(iii)          issued
or sold any share in its capital or any warrant, bond, debenture or other
corporate security or issued, granted or delivered any right, option or other
commitment for the issuance of any such or other security, 

(iv)         
discharged or satisfied any Encumbrance, or paid any obligation or liability
(fixed or contingent), other than current liabilities or the current portion of
long-term liabilities disclosed in the Financial Statements or current
liabilities incurred since the date thereof in the ordinary and normal course of
its business, 

(v)          declared
or made any payment of any dividend or other distribution in respect of any of
its shares other than in the ordinary and normal course, nor purchased,
redeemed, subdivided, consolidated, or reclassified any share in its capital,

(vi)          entered
into any transaction not in the ordinary and normal course of its business, 

(vii)          made
any gift of money or of any Asset to any Person, 

- 11 - 

(viii)         
amended or changed or taken any action to amend or change its constating
documents, 

(ix)         
increased or agreed to increase the remuneration of, or paid or agreed to pay
any pension, share of profits or other similar benefit to any of its directors,
officer or Employees and Contractors or former directors, officers or Employees
and Contractors, other than in the ordinary and normal course of its business
consistent with past practice and disclosed in writing to the Purchaser, 

(x)          made any
payment of any kind to or on behalf of the Vendor or any Affiliate of the Vendor
other than business related expenses, salaries and bonuses in the ordinary and
normal course of its business consistent with past practice and as disclosed in
the Financial Statements or in writing to the Purchaser, 

(xi)         
mortgaged, pledged, subjected to any lien, granted an option or a security
interest in respect of or otherwise encumbered any of its Assets, or 

(xii)         
authorized or agreed or otherwise become committed to do any of the foregoing,

(n)          Title
to Assets – Aquos has legal and beneficial ownership of and good and
marketable title to all its Assets, including all such Assets reflected in its
financial books and records, free and clear of all Encumbrances and none of such
Assets is in the possession of or under the control of any other Person. The
Assets owned by Aquos represent all assets used by Aquos in the conduct of its
business and as are necessary for the conduct by Aquos of its business. No other
person, including the Vendor, has any interest in any Asset used by Aquos in the
conduct of its business, 

(o)         
Leased Property – Aquos does not own any real property. Aquos is not a
party to or bound by any leases of real property other than those set out in the
Disclosure Schedule and, to the knowledge of the Vendor, all interests held as
lessee are free and clear of all Encumbrances, except for the Encumbrances set
out in the Disclosure Schedule. All rental and other payments required to be
paid by the Companies under such leases have been duly paid and there is not
otherwise any default by Aquos in meeting its obligations under any such lease,

(p)         
Material Contracts – all current Material Contracts are set out in the
Disclosure Schedule along with each party thereto and 

(i)          each
such Material Contract is in full force and effect and is a valid and binding
agreement of Aquos, 

(ii)          Aquos
has performed or is performing all obligations required to be performed by it
under each such Material Contract and is not in breach or default thereunder
and, to the knowledge of the Vendor, no other party to any such Material
Contract is in breach or default thereunder, and 

(iii)          the
Vendor does not know of any circumstances that are reasonably likely to occur
that could reasonably be expected to adversely affect Aquos’s ability, up to
Closing, to perform its obligations under any Material Contract. 

(q)         
Shareholder Loans – there are no shareholder loans outstanding in respect
of Aquos, 

(r)         
Directors – no amounts will be due or owing to any of the members of the
board of directors of Aquos as a result of such member’s resignation or removal,

- 12 - 

(s)          Employees
  and Contractors – the Disclosure Schedule contains a complete and accurate
  list of the Employees and Contractors, together with their date of hire, title
  or classification, current wages, salaries or hourly rate of pay, benefits,
  vacation entitlement, commissions and bonus or other material compensation paid
  since the beginning of the most recently completed fiscal year or payable to
  each such Employee and Contractor as of the date of this Agreement, which will
  be updated as of the Closing Date and attached to the certificate described
  in §9.2(e). Except as disclosed in the Disclosure Schedule, none of the
  Companies is a party to any written or oral contract, agreement or other commitment
  with any Employee and Contractor other than contracts of indefinite duration
  which are terminable by Aquos without cause on reasonable notice as determined
  in accordance with applicable law. The Vendor is not aware of the intention
  of any Employee and Contractor, who is an executive or senior officer, to terminate
  his or her employment. The Disclosure Schedule also lists the Employees and
  Contractors of Aquos who

(i)          have
been absent continually from work for a period in excess of one month, as well
as the reason for their absence, including all Employees and Contractors on
disability (whether short-term or long-term), 

(ii)          are in
receipt of workers’ compensation benefits on account of their employment by
Aquos, 

(iii)          are on
an authorized unpaid leave of absence (including maternity or parental leave or
unpaid sick leave) from Aquos, or 

(iv)          are
entitled to post-retirement or other benefits provided through a benefit program
sponsored by Aquos or in which Aquos participates, 

(t)         
Insurance - to the best of the knowledge of the Vendor, Aquos maintains
insurance in force against loss on such Assets, against such risks, in such
amounts and to such limits as is in accordance with prudent business practices
prevailing in its business. Particulars of all insurance maintained by Aquos is
set forth in the Disclosure Schedule, 

(u)         
Copies of Agreements – accurate and complete copies of all agreements
referred to herein or in the Disclosure Schedule have been delivered to the
Purchaser, 

(v)         
Corporate Records – Aquos has kept all records required to be kept by
applicable corporate legislation, 

(w)         
Permits and Licences – Aquos holds all authorizations, approvals, orders,
licenses, permits or consents issued by any Government Entity which are
necessary in connection with the conduct and operation of its business as it is
currently conducted and the ownership, leasing or use of its Assets as the same
are now owned, leased, used conducted or operated. None of the Companies is in
material breach of or in default under any of the terms or conditions thereof,
and all such authorizations, approvals, orders, licences, permits and consents
issued by a Government Entity are listed in the Disclosure Schedule, 

(x)          Tax
Filings and Payments – Aquos 

(i)          has
filed or caused to be filed within the time prescribed 

(A)          all
income tax returns and election forms and the income tax returns of each
jurisdiction required to be filed and all such returns and forms are true,
complete and accurate in all material respects and the amounts of tax payable

- 13 - 

shown in all such returns prepared by
Aquos are correct in all material respects, and 

(B)          all
returns, reports, and information required to be filed with any Government
Entity with respect to sales tax, property tax, property transfer tax, and every
other tax (by whatever name) that Aquos is required to file and all such
returns, reports, and information are true, complete and accurate in all
material respects, 

(ii)          has paid
  or caused to be paid all taxes due and payable (including all federal, provincial
  and local taxes, assessments or other imposts in respect of its income or Assets
  and all other taxes described in §4.1(x)(i)(B)), and all interest and penalties
  thereon, if any, for all previous years and all required instalments of taxes
  due and payable for the current fiscal year have been paid, and

(iii)          has
withheld all amounts required to be withheld by Aquos from salary and other
payments to its Employees and Contractors including pursuant to any taxing laws
to which it is subject, and has remitted all such amounts, including all
interest and penalties thereon, to the relevant Government Entity, 

(y)         
Indebtedness to Vendor – Aquos is not indebted to the Vendor or to any of
its directors, officers or Employees and Contractors, or any Affiliate thereof,

(z)         
Conduct of Business – Aquos is not conducting its business in material
contravention of any Material Contract or law, regulation or direction of any
Government Entity, 

(aa)         
Condition of Assets – all tangible Assets used by Aquos in connection
with its business are in good operating condition and in a good state of
maintenance and repair, reasonable wear and tear excepted, 

(bb)         
Intellectual Property – 

(i)          the
Disclosure Schedule lists all Intellectual Property (other than unregistered
copyrights, know-how, trade secrets and off-the-shelf office productivity
software) and all registration applications therefor owned by or licensed to the
Companies that is material to their business. The Vendor has delivered to the
Purchaser complete and correct copies of all license agreements to which Aquos
is a party relating to such Intellectual Property. The conduct of the business
of the Companies, as presently conducted and as currently proposed by the
Companies to be conducted, does not, to the best knowledge of the Vendor,
conflict with, or result in any violation of, or default under, or give rise to
any right, license or encumbrance relating to, Intellectual Property owned by
Aquos or with respect to which Aquos now has or has had any contract with any
third party, or any right of termination, cancellation or acceleration of any
Intellectual Property right or obligation set forth in any contract to which
Aquos is a party, or the loss or encumbrance of any Intellectual Property or
benefit related thereto, or result in the creation of any Encumbrance in or upon
any Intellectual Property or right owned or used by Aquos, 

(ii)          Aquos
uses all Intellectual Property that it does not own only in the manner and for
the purposes authorized and specified by the owner or licensor of such
Intellectual Property, and to the extent Aquos has granted exclusive rights to
Intellectual Property to another Person, Aquos has not used such Intellectual
Property for any purpose, including for development purposes or sale or
distribution, except to such other Person, 

- 14 - 

(iii)          Aquos
owns, or is licensed or otherwise has the right to use, in each case, without
ongoing payments to third parties except as disclosed in the Disclosure
Schedule, and free and clear of any Encumbrances, all Intellectual Property used
in or necessary to carry on its business as presently conducted or as currently
proposed by Aquos to be conducted, 

(iv)          to the
best knowledge of the Vendor, the Companies and the Companies’ products and
services do not and have not infringed upon or otherwise violated the rights of
any Person with regard to any Intellectual Property owned by, licensed to or
otherwise used by such Person, 

(v)          to the
best knowledge of the Vendor, no Person is infringing on or otherwise violating
any right of Aquos with respect to any Intellectual Property owned by, licensed
to or otherwise used by Aquos, 

(vi)          each
current or former officer, Employee and Contractor or consultant of Aquos has
assigned and transferred, or on or before the Closing Date will have assigned
and transferred, to Aquos all ownership and other rights of any nature
whatsoever of such Person in any Intellectual Property claimed to be owned by
the Company, no current or former director of Aquos has any ownership or other
rights of any nature whatsoever in any Intellectual Property claimed to be owned
by Aquos and no current or former director, officer, Employee and Contractor or
consultant of Aquos (or any member of their immediate families) has a valid
claim against Aquos in connection with the involvement of such Persons in the
conception and development of any computer software or other Intellectual
Property of Aquos, 

(vii)          all
software, other than generally available software, such as WordPerfect and the
like and generally available system development tools, that is either marketed
to customers of Aquos as a program or as part of a product or service or used by
Aquos to support its business is owned by the Company or the Company has the
right to use, modify, copy, sell, distribute, sublicense and make derivative
works from such software (to the extent required to operate the business of the
Company as presently conducted or proposed to be conducted), free and clear of
any limitations or Encumbrances, 

(viii)          none
of the Companies owns title to or uses any registered service mark, trade name
or trademark, or, to the best knowledge of the Vendor, any service mark, trade
name or trademark in which a third Person has any legal interest, except with
the consent of such third person, 

(cc)          No
Fees Payable – no broker, investment banker, financial advisor or other
Person is entitled to any broker’s, finder’s, financial advisor’s or other
similar fee or commission, or the reimbursement of expenses, in connection with
the transactions contemplated by this Agreement based upon arrangements made by
or on behalf of Aquos. None of the Companies have paid or agreed to pay any fee,
commission or expense incurred by any of its shareholders (including the fees,
commissions or expenses of any accountant, auditor, broker, financial advisor,
consultant or legal counsel retained by or on behalf of any such shareholder)
arising from or in connection with this Agreement or any of the transactions
contemplated by this Agreement, 

(dd)         
Undisclosed Information – neither the Vendor nor Aquos has any material
information which is not generally known or which has not been disclosed to the
Purchaser by the Vendor or Aquos and which if known could reasonably be expected
to have a material adverse effect on the value of the shares or on the business
of Aquos. 

- 15 - 

Other Representations 

4.2                  
All statements contained in any written certificate or other written instrument
delivered by or on behalf of the Vendor or Aquos pursuant to this Agreement will
be deemed to be representations and warranties by the Vendor and Aquos
hereunder. 

Reliance 

4.3                  
The Vendor and Aquos acknowledge and agree that the Purchaser has entered into
this Agreement relying on the warranties and representations and other terms and
conditions of this Agreement. 

Survival 

4.4                  
The representations and warranties of the Vendor and Aquos contained in this
Agreement will survive the Closing and continue in full force and effect for a
period of 24 months after the Closing Date. 

PART 5

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 

Representations and Warranties in Respect of the Purchaser

5.1                  
The Purchaser represents and warrants to the Vendor that as at both the
effective date of this Agreement and the Closing Date 

(a)         
Organization and Good Standing – the Purchaser is duly incorporated under
the laws of its jurisdictions of incorporation and is validly existing and in
good standing with respect to the filing of annual returns under such laws, 

(b)         
Exchange Act Reports – the shares of the Company’s common stock are
registered under Section 12(g) of the Exchange Act and the Company has completed
all filings with the SEC in accordance with its reporting obligations under the
Exchange Act for the past twelve months. The Purchaser has delivered or made
available to the Vendor complete and accurate copies of (a) the Purchaser’s
annual report on Form 10-KSB for the year ended November 30, 2006; (b) the
Purchaser’s quarterly reports on Form 10-QSB for the nine months ended October
31, 2007; and (iii) the Purchaser’s current reports on Form 8-K filed subsequent
to the filing of the annual report on Form 10-KSB for the year ended November
30, 2006 (together, the “Purchaser SEC Filings”). As of their respective dates,
or as subsequently amended prior to the date hereof, to the Purchaser’s
knowledge, each of the Purchaser’s SEC Filings (i) did 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 and (ii) complied as to
form in all material respects with the applicable rules and regulations of the
SEC.

(c)          No
Orders – no order ceasing or suspending trading in securities of the
Purchaser is outstanding against the Purchaser, its directors or officers, and
no investigations or proceedings for such purposes are pending or, to the
knowledge of the Purchaser, threatened, 

(d)         
Authority – the Purchaser has all necessary corporate right, authority,
power and capacity to execute and deliver this Agreement, to acquire the Aquos
Shares, to perform all of its obligations hereunder and to comply with the terms
and provisions of this Agreement and this \

- 16 - 

Agreement constitutes a valid and
binding obligation of the Purchaser in accordance with its terms, 

(e)          No
Approvals Required – relying upon the Vendor’s and Aquos’s representations
and warranties set forth in this Agreement and except for filings required by
applicable securities legislation, no authorization, approval, order, license,
permit or consent of any Government Entity, regulatory body or court nor the
registration, declaration or filing by the Purchaser with any such Government
Entity, regulatory body or court is required in order for the Purchaser 

(i)          to
execute and deliver this Agreement or any other agreement, certificate or
instrument to be executed or delivered by the Purchaser pursuant to or
contemplated by this Agreement, 

(ii)          to
incur the obligations expressed to be incurred by the Vendor pursuant to this
Agreement, or 

(iii)          to
duly perform and observe the terms and provisions of this Agreement, 

(f)          No
Conflict – the Purchaser is not a party to, bound by or subject to any
indenture, mortgage, lease, agreement, instrument, statute, regulation, order,
judgment, decree or law which would be violated, contravened or breached by, or
under which any default would occur as a result of 

(i)          the
execution and delivery by the Purchaser of this Agreement or any other
agreement, certificate or instrument to be executed or delivered by the
Purchaser pursuant to or contemplated by this Agreement, or 

(ii)          the
performance by the Purchaser of its obligations pursuant to, or the observance
by the Purchaser of any of the terms and provisions of, this Agreement, 

(g)         
Capitalization – the authorized capital of the Purchaser consists of
300,000,000 shares of common stock of which 80,691,853 shares are issued and
outstanding as of the date of this Agreement, 

(h)         
Financial Statements – the Purchaser’s financial statements (including
footnotes thereto) included in or incorporated by reference into the Purchaser’s
SEC filings were prepared in accordance with GAAP applied on a consistent basis
during the periods involved (except as otherwise noted therein) and fairly
present, in all material respects, the financial condition of the Purchaser as
of the dates thereof and results of operations for the periods referred to
therein, 

(i)          No
Litigation – there is no claim, suit, action, litigation, arbitration
proceeding or Government Entity proceeding, including any appeal or application
for review, in progress, pending or to the knowledge of the Purchaser threatened
against, or relating to the Purchaser or affecting the Purchaser’s Assets or
business, and 

(j)         
Compliance with Laws – the Purchaser and its Assets, operations
and business have been and are being operated and have been and are in material
compliance with all laws or orders applicable to its business or operations. The
Purchaser has not received a notice or other communication alleging a possible
violation of any law or order applicable to its business or operation. 

- 17 - 

Other Representations 

5.2                  
All statements contained in any written certificate or other written instrument
delivered by or on behalf of the Purchaser pursuant to this Agreement will be
deemed to be representations and warranties by the Purchaser hereunder. 

Reliance 

5.3                  
The Purchaser acknowledges and agrees that the Vendor has entered into this
Agreement relying on the warranties and representations and other terms and
conditions of this Agreement. 

Survival 

5.4                  
The representations and warranties of the Purchaser contained in this Agreement
will survive the Closing and continue in full force and effect for a period of
24 months after the Closing Date. 

PART 6

PRE-CLOSING COVENANTS 

Conduct of Business 

6.1                  
The Vendor and Aquos covenant and agree with the Purchaser that until the
Closing Date or termination of this Agreement, except as otherwise contemplated
in this Agreement or agreed to in writing by the Purchaser: 

(a)         
Conduct Business in Ordinary and Normal Course – to conduct its business
in the ordinary and normal course thereof, including the payment of all current
liabilities and accounts in the ordinary and normal course, and not negotiate or
execute any new Material Contracts or terminate, cancel or modify in any
material respect any existing Material Contracts, 

(b)         
Non-Arm’s Length Transactions – not to enter into any non-arm’s length
transaction other than in the ordinary and normal course of their business, 

(c)         
Liabilities – not to incur any liability, obligation, indebtedness or
other commitment (whether accrued, absolute, contingent or otherwise, and
whether due or to become due), other than 

(i)         
unsecured current liabilities, obligations, indebtedness and commitments
incurred in the ordinary and normal course of its businesses, 

(ii)         
liabilities incurred in connection with the transactions described herein, and
which is not reasonably expected to have a materially adverse affect on the
Assets, business or financial condition of Aquos, or 

(iii)         
liabilities owed to the Purchaser, 

(d)          No
Dividends – not to declare, set aside or pay any dividend or make any other
distribution with respect to any of their shares, or redeem, repurchase or
otherwise acquire, directly or indirectly any of their shares, 

(e)          No
Material Contracts – not to enter into any Material Contract other than in
the ordinary and normal course of their business, 

- 18 - 

(f)          No
Compromises – not to enter into any compromise or settlement of any
litigation, proceeding, or investigation relating to their businesses or any of
their Assets, 

(g)          No
Increases – not to increase the compensation of Employees and Contractors,
or any increase in any compensation or bonus payable to any of its officers,
Employees and Contractors, consultants or agents, or make any loan to, or engage
in any transaction with, any Employee and Contractor, officer or director of
Aquos, 

(h)          No
Accounting Changes – not to make any change to the accounting or tax
practices followed by Aquos, except as may be recommended by the Company’s
auditors and made in connection with the preparation of the Audited Financial
Statements, 

(i)          No
Breach – not to take any action which would constitute or cause a breach of
any representation, warranty, covenant or other obligation of a Vendor or Aquos
contained in this Agreement, 

(j)          Pay
Liabilities – to pay and discharge all liabilities or obligations of Aquos
in the ordinary and normal course of its business consistent with past business
practice, 

(k)         
Preserve Business – to preserve intact the business and the Assets,
operations and affairs of Aquos and carry on the businesses and the affairs of
Aquos, and 

(l)         
Necessary Steps – to take all actions, steps and proceedings that are
necessary or desirable to approve or authorize, or to validly and effectively
undertake, the execution, delivery and performance of this Agreement and the
completion of the transactions contemplated by this Agreement. 

Financial Statements 

6.2                  
  The Vendor and Aquos will use their best efforts to prepare the Audited Financial
  Statements and the Interim Financial Statements as early as possible. The Vendor
  and Aquos will deliver the Audited Financial Statements and the Interim Financial
  Statements forthwith upon completion. Upon delivery of the Audited Financial
  Statements and the Interim Financial Statements to the Purchaser, the Purchaser
  will have ten business days in which to review and evaluate the Audited Financial
  Statements and the Interim Financial Statements. Upon completion of its review,
  the Purchaser will deliver notice to the Vendor and Aquos confirming either
  (i) acceptance by the Purchaser of the Audited Financial Statements and the
  Interim Financial Statements, or (ii) notice of termination by the Purchaser
  in accordance with Part 10.

Access to Records 

6.3                  
In order to permit the Purchaser to complete due diligence of the Companies, the
Vendor and Aquous will each permit, the Purchaser’s financial agents and its
professional representatives to have reasonable access during normal business
hours to the premises, without disrupting the business, and to the books,
accounts, records and other data of the Vendor and Aquos (including all
corporate, accounting, tax and business records and any electronic or computer
accessed data), to the Assets and senior management of each of the Vendor and
Aquos.

Confidentiality 

6.4                  
Prior to Closing and if, for any reason, the transactions contemplated by this
Agreement are not consummated, neither the Vendor, Aquos nor the Purchaser nor
any of their respective officers, employees, attorneys, accountants and other
representatives shall disclose to third parties or otherwise use any
confidential information received from the other party in the course of
investigating, negotiating, and 

- 19 - 

performing the transactions contemplated by this Agreement;
provided, however, that nothing shall be deemed to be confidential
information which: 

                 
(i)          is known to the party
receiving the information at the time of disclosure, unless any individual who
knows the information is under an obligation to keep that information
confidential; 

                 
(ii)          becomes publicly
known or available without the disclosure thereof by the party receiving the
information in violation of this Agreement; or 

                 
(iii)          is received by the party
receiving the information from a third party not under an obligation to keep
that information confidential. 

This provision shall not prohibit the disclosure of information
required to be made under federal or state securities laws, rules and
regulations or by order of any federal, state or local regulatory agency or as
otherwise required to be disclosed under applicable law. If any disclosure is so
required, the party making such disclosure shall consult with the other party
prior to making such disclosure, and the parties shall use all reasonable
efforts, acting in good faith, to agree upon a text for such disclosure which is
satisfactory to both parties. The Vendor and Aquos acknowledge and agree that
the Purchaser must file a copy of this agreement and a summary of its material
provisions with the SEC in accordance with its obligations under the Exchange
Act. 

Exclusive Dealings 

6.5                  
Until the Closing or termination of this Agreement, neither the Vendor nor Aquos
will take any action, directly or indirectly, to encourage, initiate or engage
in discussions or negotiations with, or enter into an agreement, or provide any
information to, any Person, other than the Purchaser and its designated and
authorized representatives, concerning any sale, transfer or assignment of the
Aquos Shares, the Licenses and Permits, the Pilot Agreement or the assets of
either Aqous or the Vendor. Until the Closing or termination of this Agreement,
the Vendor will notify the Purchaser promptly if any such discussions or
negotiations are sought. 

Fees and Expenses 

6.6                  
All legal, administrative and audit fees and expenses, incurred by the Parties
in connection with the negotiation, implementation or consummation of this
Agreement and all documents and transactions contemplated herein will be paid by
the Party incurring such fees and expenses. 

PART 7

PURCHASER’S CONDITIONS PRECEDENT 

Purchaser’s Conditions 

7.1                  
The obligations of the Purchaser to complete the purchase of the Aquos Shares
are subject to the satisfaction of or compliance with each of the following
conditions precedent on or before the Closing Date 

(a)          Due
Diligence Review – the completion of a due diligence review of the
Companies’ business and financial affairs, including the Financial Statements,
to the Purchaser’s satisfaction, 

(b)         
Financial Statements – delivery of the Audited Financial Statements and
the Interim Financial Statements to the Purchaser, 

- 20 - 

(c)          Truth
and Accuracy of Representations and Warranties of the Vendor and Aquos – the
representations and warranties of the Vendor and Aquos contained herein are true
and correct in all material respects as at the Closing Date with the same effect
as if made on the Closing Date, 

(d)         
Performance of Obligations – the Vendor and Aquos have, in all material
respects, performed and complied with all the obligations, covenants and
agreements to be performed and complied with by each of them on or before the
Closing Date, 

(e)         
Absence of Change in Financial Condition – there is no material adverse
difference between the financial condition of the Companies, 

(f)         
Absence of Change of Conditions – no event has occurred or condition or
state of facts of any character has arisen or legislation (whether by statute,
rule, regulation, by-law or otherwise) been introduced which has, or might
reasonably be expected to have, a material adverse effect upon the business,
operations or financial condition of the Companies, 

(g)         
Authorizations – the Consents and Approvals will have been obtained in
writing by the Vendor and Aquos, as applicable, 

(h)          Licenses
  and Permits – The Company has obtained all licenses and permits unless
  otherwise agreed to by Purchaser.

(i)         
Closing Documentation – the Purchaser receives from the Vendor and Aquos
the Vendor’s Closing Documents, and 

(j)          Termination
  – this Agreement will have not been terminated pursuant to Part 10.

Waiver 

7.2                  
The conditions precedent set forth in this Error! Reference source not
found. are for the exclusive benefit of the Purchaser and may be waived by
the Purchaser in writing in whole or in part on or before the Closing Date. The
waiver by the Purchaser of any condition set forth in this Error! Reference
source not found., the acknowledgement or agreement by the Purchaser that
any such condition has been satisfied and the completion of the purchase and
sale transaction contemplated by this Agreement will be without prejudice to the
Purchaser’s rights in respect of the warranties, representations, covenants and
indemnities of the Vendor and Aquos contained in this Agreement. 

PART 8

VENDOR’S CONDITIONS PRECEDENT 

Vendor’s Conditions 

8.1                  
The obligations of the Vendor to complete the sale of the Aquos Shares are
subject to the satisfaction of or compliance with each of the following
conditions precedent on or before the Closing Date 

(a)          Due
Diligence Review – the completion of a due diligence review of the
Purchaser’s business and financial affairs to the Vendor’s satisfaction, 

- 21 - 

(b)          Truth
and Accuracy of Representations and Warranties of the Purchaser – the
representations and warranties of the Purchaser contained herein are true and
correct in all material respects as at the Closing Date with the same effect as
if made on the Closing date, 

(c)         
Performance of Obligations – the Purchaser has, in all material respects,
performed and complied with all the obligations, covenants and agreements to be
performed and complied with by it on or before the Closing Date, 

(d)         
Closing Documentation – the Vendor receive from the Purchaser the
Purchaser’s Closing Documents, 

(e)         
Termination – this Agreement will not have been terminated pursuant to
Error! Reference source not found., and 

(f)         
Absence of Change of Conditions – no event has occurred or condition or
state of facts of any character has arisen or legislation (whether by statute,
rule, regulation, by-law or otherwise) been introduced which has, or might
reasonably be expected to have, a material adverse effect upon the business,
operations or financial condition of the Purchaser. 

Waiver 

8.2                  
The conditions precedent set forth in this Error! Reference source not
found. are for the exclusive benefit of the Vendor and may be waived by the
Vendor in writing in whole or in part on or before the Closing Date. The waiver
by the Vendor of any condition set forth in this Error! Reference source not
found., the acknowledgement or agreement by the Vendor that any such
condition has been satisfied and the completion of the purchase and sale
transaction contemplated by this Agreement will be without prejudice to the
Vendor’s rights in respect of the warranties, representations, covenants and
indemnities of the Purchaser contained in this Agreement. 

PART 9

CLOSING 

Closing Date and Location 

9.1                  
The Closing will take place on the Closing Date at the offices of the Vendor, or
at such other time, date or location as may be agreed to in writing by the
Parties. 

Vendor’s Closing Documents 

9.2                  
On or before the Closing Date, the Vendor and Aquos will deliver, or cause to be
delivered, the following documents to the Purchaser against delivery by the
Purchaser of the Purchaser’s Closing Documents: 

(a)          the
share certificates representing the Vendor’s Aquos Shares, duly endorsed for
transfer to the Purchaser; 

(b)          a
certified copy of resolutions of the directors of Aquos authorizing the
execution, delivery and performance of this Agreement by Aquos, the transfer of
the Aquos Shares, the registration of the Aquos Shares in the name of the
Purchaser and the issuance of a share certificate representing the Aquos Shares
registered in the name of the Purchaser; 

- 22 - 

(c)          a
certified copy of the securities register of Aquos showing the Purchaser as the
registered owner of the Aquos Shares; 

(d)          a share
certificate registered in the name of the Purchaser representing the Aquos
Shares; 

(e)          a
certificate executed by each of the Vendor and Aquos certifying that its
representations and warranties contained herein are true and correct as at the
Closing Date and the each of the Vendor and Aquos have complied with their
respective covenants pursuant to this Agreement; 

(f)          the
Consents and Approvals obtained in writing by Aquos and the Vendor, as
applicable; (g) duly signed resignations of each director and officer of Aquos;
(h) the written consents of the nominee of the Vendor to act as a director of
the Purchaser; 

(i)         
corporate minute books and corporate seal, if any, and all other books and
records of Aquos; 

(j)          if the
Purchaser requires, a legal opinion, in form and substance satisfactory to the
Purchaser and the Vendor, acting reasonably, from legal counsel to Aquos as to
the validity of the incorporation, the good standing and the authorized and
issued capital of Aquos, as to the title to the Aquos Shares, as to the due
authorization, execution and delivery of this Agreement by Aquos and as to the
valid and binding nature of this Agreement, subject to such certificates and
qualifications as may be required by legal counsel to Aquos; and 

(k)          such
other documents and instruments, other than those set out above, as may be
reasonably requested by the Purchaser in order to complete the transactions set
out in this Agreement; 

and delivery of such documents by the Vendor and Aquos in accordance
  with this §9.2 will be deemed to satisfy the condition precedent set forth
  in §7.1.

Purchaser’s Closing Documents 

9.3                  
On or before the Closing Date, the Purchaser will deliver, or cause to be
delivered, the following documents to the Vendor against delivery by the Vendor
of the Vendor’s Closing Documents: 

(a)          a share
certificate, carrying a legend and provided for in this Agreement, registered in
the name of the Vendor representing the Purchaser Shares; 

(b)          a
certified copy of resolutions of the directors of the Purchaser (i) authorizing
the execution, delivery and performance of this Agreement by the Purchaser, and
(ii) appointing the nominee of the Vendor to the board of directors of the
Purchaser; 

(c)          a
certificate executed by the Purchaser certifying that its representations and
warranties contained herein are true and correct as at the Closing Date and the
Purchaser has complied with its covenants pursuant to this Agreement; and 

(d)          such
other documents and instruments, other than those set out in above, as may be
reasonably requested by the Vendor’s Solicitors in order to complete the
transactions set out in this Agreement. 

- 23 - 

and delivery of such documents and funds by the Purchaser in
  accordance with this §9.3 will be deemed to satisfy the condition precedent
  set forth in §8.1(d).

PART 10

TERMINATION 

Termination Rights 

10.1                  
This Agreement may, by notice in writing given before or on the Closing, be
terminated: 

(a)          by
mutual consent of the Vendor and the Purchaser; 

(b)          by the
Purchaser in the event that the Audited Financial Statements and the Interim
Financial Statements prepared by the Vendor and Aquos and delivered to the
Purchaser are not acceptable to the Purchaser; 

(c)          by the
  Purchaser if any of the conditions precedent in Part 7 have not been satisfied
  at or before Closing and the Purchaser has not waived such condition precedent
  at or before Closing;

(d)          by the
  Vendor if any of the conditions precedent in Part 8 have not been satisfied
  at or before Closing and the Vendor has not waived such condition precedent
  at or before Closing; or

(e)          by any
Party if the Closing has not occurred on or before January 29, 2008, or such
later date as the Parties may agree to in writing, unless the Closing has not
occurred by such date because the Party seeking to terminate this Agreement has
failed to perform any one or more of its obligations or covenants under this
Agreement to be performed at or before Closing. 

Effect of Termination 

10.2                  
Each Party’s right of termination under this Part is in addition to any other
rights it may have under this Agreement or otherwise, and the exercise of a
right of termination will not be an election of remedies. Nothing in this Part
limits or affects any other rights or causes of action any Party may have with
respect to the representations, warranties, covenants and indemnities in its
favour contained in this Agreement. If a Party waives compliance with any of the
conditions, obligations or covenants contained in this Agreement, the waiver
will be without prejudice to any of its rights of termination in the event of
non-fulfillment, non-observance or non-performance of any other condition,
obligation or covenant in whole or in part. 

10.3                  
  If this Agreement is terminated pursuant to any provision of §10.1, all
  obligations of the Parties under this Agreement will terminate, except if this
  Agreement is terminated by a Party because of a breach of this Agreement by
  the another Party or because a condition for the benefit of the terminating
  Party has not been satisfied because the other Party has failed to perform any
  of its obligations or covenants under this Agreement which are reasonably capable
  of being performed or caused to be performed by such Party, and the terminating
  Party’s right to pursue all legal remedies will survive such termination
  unimpaired.

- 24 - 

PART 11

GENERAL 

Governing Law and Attornment 

11.1                  
This Agreement will be exclusively governed by, and interpreted and construed in
accordance with, the laws prevailing in the State of Nevada and the parties
irrevocably and unconditionally attorn to the jurisdiction of the courts of the
State of Nevada and all courts having appellate jurisdiction thereover. Each
party hereby irrevocably waives, to the fullest extent permitted by applicable
law, any right it may have to a trial by jury in respect of any litigation
directly or indirectly arising out of, under or in connection with this
Agreement. 

Notices 

11.2                  
Every notice, request, demand or direction to be given pursuant to this
Agreement must be in writing and must be delivered by hand (e.g. Federal Express
or other reputable courier service) or sent by facsimile transmission or other
similar form of written transmission by electronic means, in each case addressed
as follows: 

(a)          if to
the Purchaser: 

Itonis Inc. 
Klimentska 10,
110 00 
Praque 1, Czech Republic 

Facsimile: +420 296 578 199

Attention: Mr. Thomas Roberts, President 

(b)          if to
the Vendor or Aquos: 

Aquos Media Limited

17J/17th Floor Times Commercial Centre 
Si Toi, 619 Avenida da
Praia Grande, 
Macau SAR 

Facsimile: +853 2838 9426

Attention: Mr. Iain Fidlin, Managing Director 

or to such other address or transmission receiving station in
as specified by a party by notice to each other party. Any notice delivered by
hand or sent by facsimile transmission will be deemed conclusively to have been
effectively given on the day notice was delivered or sent as aforesaid if it was
delivered or sent on a day that was a Business Day at the place of the intended
recipient, or on the next day that is a Business Day at such place if it was
delivered or sent on a day that was not a Business Day at such place. 

Time of Essence 

11.3                  
Time is of the essence in the performance of each obligation under this
Agreement. 

- 25 - 

Public Notices 

11.4                  
The Parties agree that all notices to third parties and all other publicity
concerning the transactions contemplated by this Agreement will be jointly
planned and co-ordinated and no Party will act unilaterally in this regard
without the prior approval of the others, such approval not to be unreasonably
withheld. 

Entire Agreement 

11.5                  
This Agreement constitutes the entire agreement between the Parties and
supersedes all prior agreements and understandings, oral or written, including
the Letter of Intent, by and between any of the Parties with respect to the
subject matter hereof. 

Waiver and Consent 

11.6                  
No delay or failure by a party to exercise any of its rights under this
Agreement constitutes a waiver of any such right. No consent or waiver, express
or implied, by a party to, or of any breach or default by any other party of,
any or all of its obligations under this Agreement will, 

(a)          be valid
unless it is in writing and stated to be a consent or waiver pursuant to this
Section 11.6; 

(b)          be
relied upon as a consent to or waiver of any other breach or default of the same
or any other obligation; 

(c)         
constitute a general waiver under this Agreement; or 

(d)         
eliminate or modify the need for a specific consent or waiver pursuant to this
Section 11.6 in any other or subsequent instance. 

Severability 

11.7                  
If a court of other tribunal of competent jurisdiction determines that any one
or more of the provisions contained in this Agreement is invalid, illegal or
unenforceable in any respect in any jurisdiction, the validity, legality and
enforceability of such provision or provisions will not in any way be affected
or impaired thereby in any other jurisdiction and the validity, legality and
enforceability of the remaining provisions contained herein will not in any way
be affected or impaired thereby, unless in either case as a result of such
determination this Agreement would fail in its essential purpose. 

Amendments 

11.8                  
This Agreement may not be amended except in writing signed by each Party. 

Further Assurances 

11.9                  
The Parties will with reasonable diligence, do all such things and provide all
such reasonable assurances as may be required to consummate the transactions
contemplated by this Agreement, and each Party will provide such further
documents or instruments required by the other Party as may be reasonably
necessary or desirable to give effect to the purpose of this Agreement and carry
out its provisions whether before or after the Closing Date. 

Assignment 

11.10                  
No Party may assign this Agreement or any rights or obligations under this
Agreement without the prior written consent of the other Parties. 

- 26 - 

Enurement 

11.11                  
This Agreement and each of the terms and provisions hereof will enure to the
benefit of and be binding upon the Parties and their respective heirs,
executors, administrators, personal representatives, successors and assigns.

Counterparts 

11.12                  
This Agreement may be executed in any number of counterparts, in original form
or by facsimile, each of which will together, for all purposes, constitute one
and the same instrument, binding on the parties, and each of which will together
be deemed to be an original, notwithstanding that each party is not a signatory
to the same counterpart. 

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

IOCEAN MEDIA LIMITED

Per: /s/ Iain Fidlin

Authorized Signatory 

 

AQUOS MEDIA LIMITED 

Per: /s/ Iain Fidlin

Authorized Signatory 

 

ITONIS INC.

Per: /s/ Thomas N. Roberts

 Authorized Signatory 

SCHEDULE A

Consents and Approvals 

All necessary corporate approvals and resolutions from Aquos
Media Limited. 

SCHEDULE B

Disclosure Schedule 

$500,000 liability to Ji Wentao 

10% ITonis Inc. common shares to Pilot Media P.R.C. 

- 2 - 

SCHEDULE C 

Licenses and Permits 

All the licenses and permits for Internet Television
broadcasting Including: 

IPTV 

1.Registration (Business). Acquired from Industry and Commerce
Administration Bureau and given to the new Aquos/flOw People’s Republic of China
Company. 

2.ICP license. Internet Content Provider (ICP) license is
issued to new Aquos/flOw People’s Republic of China company, issued by the
provincial Bureau of Information Industry (a subsidiary of Ministry of
Information Industry). 

3.Online Broadcasting License. Issued by State Bureau of Video
and Audio Broadcasting, to Pilot Media’s SNTV Company. 

4. Network Culture Operation License issued to new Aquos/flOw
People’s Republic of China company by the Ministry of Culture. 

5..Nationwide SP License issued to new Aquos/flOw People’s
Republic of China company by the Ministry of Information. 

- 3 - 

SCHEDULE D

Material Contracts 

Vendor and Ji WentaoFiled by Automated Filing Services Inc. (604) 609-0244 - ITonis, Inc. - Exhibit 10.4

EXHIBIT 10.4 

EMPLOYMENT AGREEMENT 

          This
EMPLOYMENT AGREEMENT (this “Agreement”) dated as of January 2, 2008 (the
“Effective Date”), is made and entered into by and between ITonis, Inc.,
a Nevada corporation (the “Company”), and Thomas Neal Roberts
(“Executive”). 

RECITALS

A.      The Company desires to
employ Executive as its Chief Executive Officer. 

B.      The Company and Executive
desire to set forth in writing the terms and conditions of their agreement and
understandings with respect to the employment of Executive. 

AGREEMENT

          NOW,
THEREFORE, in consideration of the mutual promises and agreements herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows: 

1.      Employment.

          (a)     
Position and Duties of Executive. Executive shall serve as Chief
Executive Officer of the Company and all subsidiaries and controlled affiliates
of the Company (collectively, the “Subsidiaries”), and will faithfully
and prudently perform such duties and responsibilities as the Company’s Board of
Director’s may from time to time reasonably determine and assign to him and
which are customarily performed by persons in Executive’s position. A more
detailed description of Executive’s job responsibilities is attached as Exhibit
“A” and made a part hereof. As the Chief Executive Officer, Executive will
report directly to the Company’s Board of Directors. Executive will conduct
himself in a manner consistent with his position as the Chief Executive Officer
of a similar company. Executive shall also comply with any reasonable written
policies, practices and procedures of the Company disclosed in writing to
Executive to the extent not inconsistent with the terms hereof.

          (b)      Performance.
During the Employment Period (as defined in Section 2), Executive shall
devote, on an as- needed basis, all necessary time, energy, knowledge, skill and
reasonable best efforts to the business of the Company. Executive shall be
expressly permitted to have limited involvement with outside business ventures
which do not conflict with the business of the Company. None of the foregoing
opportunities may materially interfere with Executive’s obligations to the
Company pursuant to this Agreement. 

          (c)     
Travel. Executive shall be based in Beijing, PRC. Executive understands
that his duties require travel as business needs dictate, except that he shall
not be required to relocate his residence outside of Beijing, PRC. 

2.      Term.
The period of employment of Executive by the Company hereunder shall
commence on January 2nd, 2008, and shall continue in effect through the third
anniversary of the Effective Date, unless further extended as provided in this
Section 2 or sooner terminated as provided in Section 4. On the
third anniversary of the Effective Date, the contract term of Executive’s
employment may be extended by the mutual written agreement of Company and
Executive (the initial term, as it may be so 

extended, the “Employment Period”), although neither
party shall have any obligation to enter into any such extension. 

3.      Compensation.
In full consideration of the services rendered and rights granted by
the Executive hereunder, Executive shall be paid the following consideration:

          (a)      Salary.
The Company shall pay Executive a base salary in the amount of Three Hundred
Thousand Dollars ($300,000) per year, less applicable payroll deductions and tax
withholdings (“Base Salary”). The Company shall pay the Base Salary in
accordance with the then-current payroll policies of the Company (which shall be
no less frequently than once per month). The payment of Base Salary shall be
made only during the Employment Period, except as otherwise set forth in
Section 6 herein. 

          (b)     
Equity Incentive Award. Executive shall receive Twenty Five Million
(25,000,000) common shares in the Company as a combination of option grants and
share grants, pursuant to separate stock and option grant agreements to be
executed within thirty (30) days of the Effective Date. 

          (c)      Reimbursement
of Expenses. The Company shall adopt a written expense reimbursement policy
from time to time, but no later than thirty (30) days prior to the beginning of
a fiscal period which will identify acceptable categories and types of
reimbursable expenses and the manner in which Executive shall memorialize,
evidence and submit such expenses in order to achieve reimbursement by the
Company. The Company will pay or reimburse Executive, upon submission of proof,
for all reasonable business expenses incurred by Executive during the Employment
Period in compliance with this policy. 

          (d)      Vacations.
During each calendar year of this Agreement, Executive shall be entitled to two
weeks of vacation, not including Company or public holidays, as determined by
the Company, during which time his compensation hereunder shall be paid in full,
as well as additional vacation time as may be specifically approved in writing
by the Company. Such vacation shall be taken at times consistent with the
effective discharge of Executive’s duties and the reasonable business needs of
the Company, and in accordance with any written Company policy then in effect.
Unless specifically stated to the contrary in writing by the Company, unused
vacations in any year shall be treated consistently with the policies, rules and
regulations adopted by the Company applicable to executives of the Company,
subject to applicable law.

          (e)      Other
Benefits. Executive is entitled to participate during the Employment Period
in any group health insurance plan, option or similar incentive compensation
plan, 401(k) plan, group life plan, automobile allowance program, relocation
programs, and any other benefit program or policy that is made available, from
time to time, to executives of the Company, subject to the terms of the plan
documents, as such plans may be modified, amended, terminated, or replaced from
time to time.

4.      Termination.
This Agreement and Executive’s employment hereunder (and the Employment Period)
may be terminated as follows: 

          (a)      Death.
This Agreement and Executive’s employment hereunder (and the Employment Period)
shall automatically terminate upon his death. 

          (b)     
Disability. The Company may terminate this Agreement and Executive’s
employment hereunder and the Employment Period (in accordance with the
termination procedures set forth in Section 5) upon determination of
Disability of Executive. For purposes of this Agreement, “Disability”
shall mean a physical or mental impairment that renders Executive unable to
perform the essential functions of his position for a consecutive ninety
(90)-day period, even with reasonable accommodation 

that does not impose an undue hardship on the Company. The
Company shall make the determination of Disability, reasonably and in good
faith, based on information supplied by Executive and/or his medical personnel,
or neutral medical personnel as selected by the Company.

          (c)      With
Cause by the Company. The Company may terminate this Agreement and
Executive’s employment hereunder and the Employment Period (in accordance with
the termination procedures set forth in Section 5) for Cause. For
purposes of this Agreement, the Company shall have “Cause” to terminate
Executive’s employment arrangement hereunder only upon: (i) Executive’s material
failure to perform his material duties or his material breach of the material
terms of this Agreement which failure or breach is not remedied by Executive
within thirty (30) days after receipt of written notice from the Company
specifically delineating each claimed failure or breach and setting forth the
Company’s intention to terminate Executive’s employment if the failure or breach
is not duly remedied; (ii) Executive’s conviction of, or entry by Executive of a
guilty or no contest plea to, a felony involving moral turpitude; or (iii)
Executive’s voluntary termination without Good Reason.

          (d)     
Without Cause by the Company. The Company may terminate this Agreement
and Executive’s employment hereunder and the Employment Period at any time after
the first year from the Effective Date (subject to the termination procedures
set forth in Section 5) without Cause.

          (e)      By
Executive. Executive may terminate this Agreement and Executive’s employment
and the Employment Period at any time (subject to the termination procedures set
forth in Section 5) for Good Reason. 

5.      Termination
Procedure. 

          (a)     
Notice of Termination. Any termination of Executive’s employment by the
Company or by Executive (other than termination pursuant to Section 4(a)
hereof) shall be communicated by written Notice of Termination to the other
party hereto in accordance with Section 13, except as otherwise set forth
herein. Except where otherwise clarified in this Agreement, a “Notice of
Termination” shall mean a notice indicating the specific termination
provision in this Agreement relied upon as the basis for such termination.

          (b)     
Date of Termination. “Date of Termination” shall mean (i) if
Executive’s employment is terminated by his death, the date of his death, (ii)
if Executive’s employment is terminated for Disability pursuant to Section
4(b), thirty (30) days after the date of delivery of Notice of Termination,
(iii) if Executive’s employment is terminated for Cause pursuant to Section
4(c), the date specified in the Notice of Termination (which shall not be
earlier than the date of the Notice of Termination and which shall be subject to
the cure provisions provided in Section 4(c)), (iv) if Executive’s
employment is terminated for Good Reason, the date (subject to Section 6(d)
below) specified in the Notice of Termination (which shall not be earlier than
the date of the Notice of Termination and which shall be subject to the cure
provisions provided in the definition of “Good Reason” below), and (v) if
Executive’s employment is terminated for any other reason, the date on which a
Notice of Termination is given or any later date set forth in such Notice of
Termination. After delivery of a Notice of Termination and the passage of any
applicable cure periods, the Company may require that Executive cease
representing the Company, cease taking any action on behalf of the Company and
cease being present at any Company location. 

6.      Obligations
Upon Termination. 

          (a)      The
Company’s Obligations to Executive upon Termination for Cause. In the event
the Company terminates Executive’s employment for Cause, death or Disability or
the Employment Period expires and is not renewed, the Company shall have no
further liability or obligation to Executive under 

this Agreement, except for (i) any unpaid or accrued Base
Salary through the Date of Termination; (ii) any bonus payments then unpaid or
accrued; (iii) any un-reimbursed expenses properly incurred prior to the Date of
Termination and subject to the Company’s reimbursement policies; (iv) any
accrued but unpaid vacation; (v) other unpaid amounts then due Executive under
Company benefit plans or programs (except that in the event of death, those
payments will be made to Executive’s estate or legal representative, and
Executive’s death benefits payable due to Executive’s death under Company
employee benefit plans or programs will also be paid); and (vi) in the event of
a termination for Cause under paragraph 4.(c)(iii), compliance with the final
paragraph of Exhibit B to the Award Agreement. 

          (b)     
The Company’s Obligations to Executive Upon Termination Without Cause.
Upon termination by the Company of the Executive’s employment without Cause, the
Company shall have no further liability or obligation to Executive under this
Agreement, except for (i) any unpaid or accrued Base Salary through the Date of
Termination; (ii) any bonus payments then unpaid or accrued; (iii) any
unreimbursed expenses properly incurred prior to the Date of Termination; (iv)
any accrued but unpaid vacation; and (v) ninety (90) days Base Salary. Sums due
under paragraphs (i), (ii), (iii) and (iv) shall be payable within five business
days after the effectiveness of such termination. Upon receipt of all of the
foregoing sums, Executive shall execute and return a release of claims in a form
reasonably satisfactory to the Company with post-term non-solicitation
covenants.

          (c)     
Voluntary Termination by Executive for Good Reason. In the event that
Executive terminates his employment for Good Reason, the Company shall have no
further liability or obligation to Executive under this Agreement or in
connection with his employment hereunder, except for making the same payments
and reimbursements contemplated by Section 6(b) hereof.

          “Good
Reason” means an occurrence without Executive’s written consent of any of
the following events (each, a “Good Reason Event”): (i) a reduction in
Base Salary; (ii) requiring Executive to report to anyone other than the
Company’s Chief Executive Officer; (iii) requiring Executive to relocate his
residence from the Beijing. PRC area; (iv) a change in title to one that conveys
less responsibility and/or lower status; (v) a material diminution in duties,
responsibilities or authority; (vi) the failure of the Company to pay when due
any compensation earned under this Agreement after Executive has provided the
Company written notice and the Company has had thirty (30) days from the notice
to cure; or (vii) a material uncured breach hereunder, where, in every
particular instance of a Good Reason Event, upon the occurrence of any such Good
Reason Event, Executive first delivers a written notice concerning the Good
Reason Event to the Company which specifically identifies the Good Reason Event,
and the Company continues to fail to correct such Good Reason Event within
thirty (30) days after such written demand is delivered by Executive. 

7.      Severability.
Should a court determine that any paragraph or sentence, or any portion
of a paragraph or sentence of this Agreement, is invalid, unenforceable, or
void, this determination shall not have the effect of invalidating or validating
the remainder of the paragraph, sentence or any other provision of this
Agreement. Further, the court should construe this Agreement by limiting and
reducing it only to the extent necessary to be enforceable under then applicable
law.

8.      Breach
of Agreement. The prevailing party in any legal proceeding based
upon this Agreement shall be entitled to reasonable outside attorney’s fees and
court costs, in addition to any other recoveries allowed by law.

9.     
Successors. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, successors and
permitted assigns. The Company may assign this Agreement to any individual,
business, firm, company, partnership, joint venture, organization or other
entity who or which may acquire substantially all of the Company’s assets or
business or with or into which the Company may be liquidated, consolidated,
merged or otherwise combined. The Agreement is personal to Executive and may not
be assigned or delegated by him, and any such purported assignment or delegation
shall be null and void. Any successor or assign of the Company shall be required
to agree to assume the responsibilities of the Company hereunder in writing. In
no event shall any assignment, merger or other transaction resulting in a
successor or assign of the Company hereunder constitute a novation as to the
Company’s obligations. 

Notwithstanding anything to the contrary contained herein,
Executive’s prior written consent shall be required with respect to any
assignment which does or could reasonably be anticipated to materially increase
the liability or obligations of Executive hereunder.

10.     
No Waiver. The failure of either party to insist in any one or
more instances upon performance of any terms or conditions of this Agreement
shall not be construed as a waiver of future performance of any such term,
covenant or condition but the obligations of either party with respect thereto
shall continue in full force and effect. 

11.     
Notices. Any notice given hereunder shall be in writing and be
delivered or mailed by Registered or Certified Mail, Return Receipt Requested:

	 	(a) 	to the Company: 	Itonis, Inc. 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	  	to Executive: 	Thomas Neal Roberts 	 
	 	 	 	 	 
	 	 	 	 	 

Any party may, by notice given as provided for above, designate
a different address. Any notice given hereunder shall be effective on the date
of receipt. 

12.      Entire
Agreement. There are no oral representations, understanding or
agreements with the Company or any of its officers, directors or representatives
covering the same subject matter as this Agreement. This Agreement supersedes
all previous employment agreements between Executive and the Company and
contains the final, complete and exclusive understanding and agreement between
the parties with respect to the subject matter hereof and cannot be amended,
modified or supplemented in any respect except by subsequent written agreement
entered into by both parties. 

13.      Counterparts.
This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement, and all of which,
when taken together, shall be deemed to constitute one and the same Agreement.
The exchange of copies of this Agreement and of signature pages by facsimile
transmission shall constitute effective execution and delivery of this Agreement
as to the parties and may be used in lieu of the original Agreement for all
purposes. Signatures of the parties transmitted by facsimile shall be deemed to
be their original signatures for any purpose whatsoever. 

14.     
Captions. The captions herein are for the convenience of
reference of the parties and are not to be construed as part of the terms of
this Agreement. 

15.      Applicable
Law. Any dispute in the meaning, effect, or validity of this
Agreement shall be resolved in accordance with the laws of the State of Nevada
without regard to the conflict of laws provisions thereof. This Agreement shall
be governed by and construed under the laws of the State of Nevada. Venue of any
litigation arising from this Agreement shall be in a federal or state court of
competent jurisdiction in Clark County, Nevada.

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first above written. 

ITONIS, INC., 
a Nevada
corporation 

                 
/s/ Kral Antonin 
By: 
_______________________________________________

  Name: Kral Antonin

  
Title:
CTO                                                                                                   

 

/s/ Thomas Neal Roberts

__________________________________________________
Thomas Neal
Roberts

EXHIBIT A 

Job Description 

Chief Executive Officer 

Occupational Summary 

Exercise executive responsibility over
Company’s business affairs. 

Work Performed 

	 	1. 	
      Identify, develop and direct the implementation of
      business strategy

	 	2. 	
      Plan and direct the Company’s activities to achieve
      stated/agreed targets and standards for financial and trading performance,
      quality, culture and legislative adherence

	 	3. 	
      Recruit, select and develop executive team
  members

	 	4. 	
      Direct functions and performance via the executive
      team

	 	5. 	
      Maintain and develop Company culture, values and
      reputation in its markets and with all staff, customers, suppliers,
      partners and regulatory/official bodies

	 	6. 	
      Report to shareholders/ board of directors on Company
      plans and performance

	 	7. 	
      Execute the responsibilities of a company director
      according to lawful and ethical standards, as referenced the company’s
      policies and procedures manual

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