Document:

Confidential
      

     

    ASSET
      PURCHASE AGREEMENT 

     

    BY
      AND BETWEEN 

     

    OPTICON
      SYSTEMS INC., 

     

    AND
      

     

    FUTURETECH
      CAPITAL LLC 

     

    Dated
      as of August 19, 2004 

     

    ASSET
      PURCHASE AGREEMENT (this Agreement) dated as of August 19, 2004, by and between
      OPTICON SYSTEMS INC., a Nevada corporation (OPTICON), and FUTURETECH CAPITAL
      LLC, a Florida corporation (”FTC”). 

     

    WHEREAS,
      FTC is engaged in the business of developing, marketing and licensing
      telecommunication network asset management software, otherwise known as its
      OptiCon Network Manager, including Releases 3.x, 4.x and any related products
      currently under development. (“OptiCon”); 

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement, FTC wishes
      to
      sell to OPTICON, and OPTICON wishes to purchase from FTC, substantially all
      of
      the assets that are used by FTC to conduct OptiCon related business, all as
      identified or described herein, and FTC wishes to transfer to OPTICON, and
      in
      connection therewith the parties hereto wish to make certain agreements related
      to such purchase, sale, assignment and assumption; and 

     

    WHEREAS,
      as a condition to the willingness of, and as an inducement to, OPTICON, FTC
      to
      enter into this Agreement, contemporaneously with the execution and delivery
      of
      this Agreement, FTC, OPTICON entering into the Related Agreements (as defined
      below). 

     

    NOW,
      THEREFORE, in consideration of the mutual benefits to be derived from this
      Agreement and the representations, warranties, covenants, agreements, conditions
      and promises contained herein and therein, the parties hereby agree as follows:
      

     

    ARTICLE
      I 

     

    PURCHASE
      AND SALE OF ASSETS; CLOSING 

     

    
      	1.1	
              Purchase
                and Sale of Acquired Assets. Upon the terms and subject to the conditions
                set forth in this Agreement, at the Closing, FTC shall sell, transfer,
                assign and deliver to OPTICON, and relinquish to OPTICON in perpetuity,
                free and clear of all Encumbrances, all right, title and interest
                in and
                to all of the Acquired Assets of OptiCon. As used in this Agreement,
                the
                term Acquired Assets means all of the assets, properties, goodwill
                and
                rights of FTC in OptiCon identified as follows, but excluding, however,
                such assets, rights and properties that constitute the Excluded Assets
                (as
                defined in Section 1.2): 

            

    

     

    
      	
            	A.	
              all
                right, title and interest of FTC in the OptiCon and OptiCon Network
                Manager brand name; 

            

    

     

    
      	
            	B.	
              all
                of the tangible personal property of FTC related to OptiCon as listed
                in
                Section 1.1.B of the Disclosure Schedule;

            

    

     

    
      	
            	C.	
              all
                rights of FTC in OptiCon, to the extent transferable, under all Federal,
                state, local and foreign governmental licenses, consents, approvals,
                authorizations, permits, orders decrees and other compliance agreements
                relating in any manner to, or used in connection with the operation
                of,
                OptiCon, including those listed in Section 1.1.C of the Disclosure
                Schedule; 

            

    

     

    
      	
            	D.	
              all
                OptiCon Intellectual Property Rights and Licensed Software (as defined
                in
                Sections 3.1.H and 3.1.I, respectively), and the goodwill associated
                therewith, licenses and sublicenses granted in respect thereto and
                rights
                thereunder, together with all claims against third parties for profits
                and
                all costs, losses, claims,
                liabilities,

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    fines,
      penalties, damages and expenses (including interest which may be imposed in
      connection therewith), court costs, and reasonable fees and disbursements of
      counsel, consultants and expert witnesses (collectively, Damages) incurred
      by
      reason of the past infringement, alleged infringement, unauthorized use or
      disclosure or alleged unauthorized use or disclosure of any OptiCon Intellectual
      Property Rights, together with the right to sue for, and collect the same,
      or to
      sue for injunctive relief, for OPTICON’s own use and benefit, and for the use
      and benefit of its successors, assigns or other legal representatives;

     

    
      	
            	E.	
              all
                customer, supplier, advertiser and mailing lists of FTC in OptiCon,
                including all copies thereof (in whatever media such copies may exists),
                relating in any manner to, or used in connection with, the operation
                of
                OptiCon, and all rights in and to the information contained therein;
                

            

    

     

    
      	
            	F.	
              all
                business and financial records, books, ledgers, files, plans, documents,
                correspondence, lists, plats, architectural plans, drawings, notebooks,
                specifications, creative materials, advertising and promotional materials,
                marketing materials, studies, and reports relating in any manner
                to, or
                used in connection with the operation of, OptiCon or to the Acquired
                Assets, in whatever media they exist;

            

    

     

    
      	
            	G.	
              all
                goodwill of FTC relating to OptiCon; and

            

    

     

    
      	
            	H.	
              all
                Inventory relating to OptiCon as listed in Section 1.1.H of the Disclosure
                Schedule. 

            

    

     

    
      	1.2	
              Excluded
                Assets. Notwithstanding Section 1.1, the following assets shall be
                excluded from this Agreement and shall not be sold, conveyed, assigned,
                transferred or delivered to OPTICON pursuant hereto:
                

            

    

     

    
      	
            	A.	
              all
                written or oral contracts, agreements, guaranties, understandings,
                deeds,
                mortgages, indentures, leases, license agreements, commitments,
                undertakings or other documents or instruments relating in any manner
                to
                OptiCon (excluding third party software licenses described in Section
                3.1.I); 

            

    

     

    
      	
            	B.	
              all
                accounts receivable of FTC, all other rights to receive payment and
                all
                rights in respect of prepaid items however evidenced, whether by
                notes,
                instruments, chattel paper or otherwise, relating in any manner to,
                or
                arising out of the operation of, OptiCon;

            

    

     

    
      	
            	C.	
              all
                tangible personal property of FTC not listed in the Disclosure Schedule;
                

            

    

     

    
      	
            	D.	
              all
                insurance policies maintained by FTC with respect to OptiCon and
                any
                prepaid insurance expenses or premiums;

            

    

     

    
      	
            	E.	
              all
                payments made by FTC which constitute prepaid Taxes of OptiCon and
                all
                refunds or credits of Taxes and claims for refunds or credits of
                Taxes and
                other governmental charges to the extent such refunds relate to periods
                ending on or prior to the Closing Date;

            

    

     

    
      	
            	F.	
              all
                pension, health or welfare plans, any post-retirement benefits for
                any
                current or former employees of FTC who were or are employees of OptiCon
                and all payments made by FTC which constitute prepaid expenses of
                OptiCon
                relating to such excluded employee benefits;

            

    

     

    
      	
            	G.	
              all
                interest in or claim against any Plan;

            

    

     

    
      	
            	H.	
              all
                corporate minute books and stock records;

            

    

     

    
      	
            	I.	
              all
                claims, deposits, prepayments, prepaid expenses, refunds, causes
                of
                action, chooses in action, rights of recovery, rights of set off
                and
                rights of recoupment relating in any manner to the items set forth
                in this
                Section 1.2; 

            

    

     

    
      	 	
              J.

            	
              the
                names “Corning” and “Siecor” and any trademarks, tradenames or logos,
                trade dress, brand names or service marks containing the words “Corning”
                or “Siecor” (except OptiCon brand name); and

            

    

     

    
      	
            	K.	
              all
                other tangible or intangible assets not used solely for OptiCon.
                

            

    

     

    No
      more
      than one hundred and twenty (120) days after the Closing Date, OPTICON shall
      modify all OptiCon software, documentation, packaging, labeling, brochures
      and
      sales aids bearing the “Corning” or “Siecor” trademarks by reasonable means to
      show customers and potential customers of OptiCon that the ownership and
      responsibility for the assets has transferred to OPTICON. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	1.3	
              Assumption
                of Liabilities. OPTICON shall not assume, discharge or perform any
                of
                FTC's Liabilities related to OptiCon.

            

    

     

    
      	1.4	
              Excluded
                Liabilities. OPTICON is not assuming any Liabilities of FTC related
                to
                OptiCon or any of its Affiliates. OPTICON shall have no liability
                whatsoever for any Liabilities of FTC related to OptiCon which are
                not
                specifically assumed under Section 1.3, and, without limiting the
                generality of the foregoing, OPTICON shall not be deemed to assume,
                nor
                shall it assume the following Liabilities (the Excluded Liabilities):
                

            

    

     

    
      	
            	A.	
              any
                and all Liabilities arising under or relating to any written or oral
                contracts, agreements, guaranties, understandings, deeds, mortgages,
                indentures, leases, licenses, commitments, undertakings or other
                documents
                or instruments to which FTC’s OptiCon or any Affiliate thereof is a party;
                

            

    

     

    
      	
            	B.	
              any
                and all Liabilities of FTC in OptiCon or any of its Affiliates in
                respect
                of any indebtedness for or guarantees of borrowed money;
                

            

    

     

    
      	
            	C.	
              any
                and all Liabilities of FTC in OptiCon to any Affiliate or current
                or
                former stockholder of FTC; 

            

    

     

    
      	
            	D.	
              any
                and all Liabilities of FTC in OptiCon or any of its Affiliates for
                or in
                respect of Taxes including, without limitation, any Taxes resulting
                from
                or relating to the consummation of the transaction contemplated hereby
                (including any state Taxes that may become due as a result of any
                Bulk
                Sale or similar statute that may be assessed against OPTICON following
                the
                Closing); 

            

    

     

    
      	
            	E.	
              any
                and all Liabilities of FTC or any of its Affiliates arising out of
                or
                relating, directly or indirectly, to any property of which FTC or
                such
                Affiliate has disposed or proposed to dispose, including any and
                all
                Liabilities to any other person or entity incurred in connection
                with any
                sale or proposed sale of (i) all or any substantial part of FTC or
                any
                Affiliate, or any other business combination or proposed business
                combination, (ii) any real property of FTC or any Affiliate, (iii)
                any
                other business or (iv) any securities of FTC, any Affiliate or any
                other
                entity; 

            

    

     

    
      	 	
              F.
                

            	
              any
                and all Liabilities arising out of or relating, directly or indirectly,
                to
                any Employee Plan or the termination thereof including, without
                limitation, FTC's Incentive Compensation Plan and FTC's obligations
                to
                OptiCon Employees under such plan; 

            

    

     

    
      	
            	G.	
              any
                and all Liabilities with respect to fees and expenses incurred by
                FTC or
                any of its Affiliates in connection with the sale or proposed sale
                or
                other disposition or proposed disposition of all or part of the assets
                or
                capital stock of FTC or any Affiliate (including the Transaction
                Expenses); 

            

    

     

    
      	
            	H.	
              any
                and all Liabilities of FTC or any of its Affiliates to any present
                or
                former employee or independent contractor of FTC or any Affiliate
                thereof;
                

            

    

     

    
      	 	
              I.
                

            	
              any
                and all Liabilities of FTC or any of its Affiliates for any Actions
                against FTC or any Affiliate, including any Actions pending or threatened
                against FTC as of the Closing Date;

            

    

     

    
      	 	
              J.
                

            	
              any
                and all Liabilities of FTC or any of its Affiliates for damage or
                injury
                to person or property including,
                without limitation, those resulting from or arising out of environmental
                claims; 

            

    

     

    
      	
            	K.	
              any
                and all Liabilities of FTC or any of its Affiliates arising out of
                or
                resulting from noncompliance with any Federal, state, local or foreign
                laws, ordinances, regulations or orders;

            

    

     

    
      	
            	L.	
              any
                and all Liabilities of FTC or any of its Affiliates arising out of,
                relating to or resulting from any obligation to indemnify any person
                or
                entity (including officers and directors of FTC);
                

            

    

     

    
      	
            	M.	
              any
                and all Liabilities of FTC or any of its Affiliates arising under
                this
                Agreement or any of the Related Agreements;

            

    

     

    
      	
            	N.	
              any
                and all Liabilities of FTC or any of its Affiliates for any accounts
                payable; 

            

    

     

    
      	
            	O.	
              any
                and all other Liabilities attributable in any manner to the Excluded
                Assets; and 

            

    

     

    
      	
            	P.	
              any
                and all other Liabilities of FTC or any of its Affiliates that are
                not
                Assumed Liabilities. 

            

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	1.5	
              Continuing
                Liabilities. Notwithstanding anything contained herein to the contrary,
                to
                the extent that any Assumed Liability assumed by OPTICON pursuant
                to
                Section 1.3, or any Damages imposed on OPTICON by operation of law
                or
                otherwise in connection with, or which otherwise arises out of or
                in
                relation to, the transactions contemplated hereby (other than OPTICON's
                assumption of the Assumed Liabilities assumed by it pursuant to Section
                1.3), results from or arises out of an event or condition which is
                continuing or continuous in nature, OPTICON shall assume and discharge
                only that portion of such Assumed Liability or Damage that results
                from or
                arises out of that part of the event which occurs or condition which
                exists after the Closing, without, however, releasing FTC from its
                obligation to discharge that portion of such Assumed Liability or
                Damage
                that results from that part of the event which occurs or condition
                which
                exists prior to the Closing; provided, however, that FTC shall discharge
                all of such continuing or continuous Assumed Liabilities or Damages,
                including, without limitation, those Assumed Liabilities assumed
                by
                OPTICON pursuant to Section 1.3 if and to the extent they result
                from a
                breach by FTC of any of its representations, warranties or covenants
                hereunder. 

            

    

     

    
      	1.6	
              Closing.
                The closing of the transactions contemplated by this Agreement (the
                Closing) will take place at 10:00 a.m. (Eastern time) on September
                19th,
                2004 (Closing Date), unless the parties agree to another date in
                writing.
                The Closing shall take place at the offices of Opticon Systems Inc.’s,
                Dallas Office, unless the parties agree to another time or place
                in
                writing. As used herein, the term Business Day shall mean any day
                other
                than a Saturday, Sunday or day on which banks are permitted to close
                in
                the City and State of New York. All transactions contemplated to
                take
                place at the Closing shall be deemed to be effective as of 5:00 p.m.
                on
                the Closing Date (the Effective Time) and events taking place, and
                periods
                ending after the Effective Time shall be deemed to have taken place,
                or
                ended, after the Closing. 

            

    

     

    
      	1.7	
              Closing
                Obligations. At the Closing, in addition to the agreements set forth
                in
                Article IV, the parties shall execute and deliver the following documents:
                

            

    

     

    
      	
            	A.	
              FTC,
                or their Affiliates, as the case may be, shall deliver to OPTICON:
                

            

    

     

    
      	
            	(i)	
              a
                bill of sale for all of the tangible Acquired Assets in the form
                of
                Exhibit A attached hereto (the Bill of Sale) executed by FTC;
                

            

    

    
    

     

    
      	
            	(ii)	
              an
                assignment of all of the Acquired Assets that are intangible personal
                property (except the Assigned Intellectual Property Assets) in the
                form of
                Exhibit B attached hereto, which assignment shall also contain OPTICON’s
                undertaking and assumption of the Assumed Liabilities (the Assignment
                and
                Assumption Agreement) executed by FTC;

            

    

    

    
      	
            	(iii)	
              an
                assignment of all OptiCon Trademarks in the form of Exhibit C attached
                hereto (the Trademark Assignment) executed by FTC;
                

            

    

     

    
      	
            	(iv)	
              a
                general assignment of all Assigned Intellectual Property Assets in
                the
                form of Exhibit D attached
                hereto (the IP Assignment) executed by FTC; and
                

            

    

    
    

     

    
      	
            	(v)	
              all
                such other bills of sale, assignment and assumption agreements,
                endorsements, intellectual property right assignments, certificates
                of
                title, consents and other good and sufficient instruments and documents
                of
                conveyance and transfer, all dated the Closing Date and in a form
                reasonably satisfactory to OPTICON, as OPTICON reasonably shall deem
                necessary or appropriate to vest in or confirm to OPTICON full and
                complete right, title and interest in and to all of the Acquired
                Assets
                (collectively, the Other Assignments).

            

    

    

    
      	
            	B.	
              OPTICON
                shall deliver to FTC, as the case may be:

            

    

     

    
      	
            	(i)	
              the
                Assignment and Assumption Agreement executed by
                OPTICON;

            

    

     

    
      	
            	(ii)	
              the
                Trademark Assignment executed by OPTICON; and

            

    

    

    
      	
            	(iii)	
              the
                IP Assignment executed by OPTICON. 

            

    

     

    On
      the
      Closing Date, FTC shall transfer all of the Acquired Assets, including OptiCon
      Intellectual Property Rights, to such location or locations as OPTICON
      reasonably may request. 

     

    
      	1.8	
              Further
                Assurances. At any time and from time to time after the Closing,
                at the
                request of OPTICON and without further consideration, FTC will execute
                and
                deliver such other instruments of sale, transfer, conveyance, assignment
                and confirmation, and will take such further action, as may be reasonably
                requested in order to more effectively transfer, convey and assign
                to ,
                and to confirm OPTICON's title to, the Acquired Assets, and each
                of the
                parties shall execute such other documents and take such further
                action as
                may be reasonably required or desirable to carry out the provisions
                of
                this Agreement and the transactions contemplated hereby.
                Without

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    limiting
      the generality of the foregoing, FTC shall, from time to time and at no cost
      to
      OPTICON, cooperate with, and take all action reasonably requested by, OPTICON
      to
      effectively transition the Acquired Assets and the operation and ownership
      of
      OptiCon. 

     

    ARTICLE
      II 

     

    PURCHASE
      PRICE 

     

    
      	2.1	
              Purchase
                Price.

            

    

     

    Purchase
      Price. Purchase Price. Purchaser shall pay to Seller for the Assets a purchase
      price (the "Purchase Price") of Forty Two Million Dollars ($42,000,000). The
      purchaser shall offer the Seller Eighty Four Million Shares of Common in OptiCon
      valued at $0.50 per share, for a total of Forty Two Million Dollars
      ($42,000,000) be paid at the closing of this transaction. 

     

    
      	2.2	
              Allocation
                of Purchase Price. The Purchase Price shall be allocated among the
                Acquired Assets and the covenant not to compete to be entered into
                by FTC
                in connection with this Agreement and shall be consistent with the
                requirements of Section 1060 of the Code, and the regulations thereunder.
                OPTICON and FTC agree that such allocation shall be fair and equitable.
                OPTICON and FTC agree to report this transaction for Tax purposes,
                including the filing of Internal Revenue Service Form 8594 (Asset
                Acquisition Statement), in accordance with such allocation and to
                defend
                such allocation before, and not take any positions that are inconsistent
                with such allocation before, any Governmental Authority charged with
                the
                collection of Taxes, or in any judicial proceeding.
                

            

    

     

    ARTICLE
      III 

     

    REPRESENTATIONS
      AND WARRANTIES

     

    
      	3.1	
              Representations
                and Warranties of FTC. FTC hereby represents and warrants to OPTICON
                that,
                except as
                disclosed in the disclosure schedule dated the date hereof, certified
                by
                FTC and delivered to OPTICON simultaneously herewith (which disclosure
                schedule shall contain specific references to the representations
                and
                warranties to which the disclosures contained therein relate and
                an item
                on such disclosure schedule shall be deemed to qualify only the particular
                subsection or subsections specified for such item) (the Disclosure
                Schedule): 

            

    

     

    
      	
            	A.	
              Organization;
                Good Standing; Qualification and Power. FTC (i) is a corporation
                duly
                organized, validly existing and in good standing under the laws of
                the
                State Florida, (ii) has all requisite corporate power and authority
                to
                own, lease and operate its properties and assets and to carry on
                its
                business as now being conducted, and as proposed to be conducted,
                to enter
                into this Agreement and the Related Agreements to which FTC is a
                party, to
                perform its obligations hereunder and thereunder, and to consummate
                the
                transactions contemplated hereby and thereby and (iii) except as
                set forth
                in Section 3.1.A of the Disclosure Schedule, is duly qualified and
                in good
                standing to do business in those jurisdictions listed in Section
                3.1.A of
                Disclosure Schedule and in all other jurisdictions where the failure
                to be
                so qualified and in good standing would have a material adverse effect
                on
                FTC, OptiCon or the business, properties, condition (financial or
                otherwise), assets, liabilities, operations, results of operations,
                prospects or affairs of FTC or of OptiCon (a OptiCon Material Adverse
                Effect). 

            

    

     

    
      	
            	B.	
              [Intentionally
                Omitted]. 

            

    

     

    
      	
            	C.	
              Authority;
                No Consents. The execution, delivery and performance by FTC of this
                Agreement and the Related Agreements to which it is a party and the
                consummation of the transactions contemplated hereby and thereby
                have been
                duly and validly authorized by all necessary corporate action on
                the part
                of FTC; and this Agreement has been, and the Related Agreements to
                which
                it is a party when executed and delivered by FTC will be, duly and
                validly
                executed and delivered and the valid and binding obligations of FTC,
                enforceable against it in accordance with their respective terms.
                Except
                as set forth in Section 3.1.C of the Disclosure Schedule, the execution,
                delivery and performance of this Agreement or the Related Agreements
                to
                which it is a party, the consummation by FTC of the transactions
                contemplated hereby or thereby, nor compliance by FTC with any provision
                hereof or thereof will (A) conflict with, (B) result in any material
                violation of, (C) cause a material default under (with or without
                due
                notice, lapse of time or both), (D) give rise to any right of termination,
                amendment, cancellation or acceleration of any obligation contained
                in or
                the loss of any material benefit under or (E) result in the creation
                of
                any Encumbrance on or against any assets, rights or property of FTC
                under
                any term, condition or provision of (x) any instrument or agreement
                to
                which FTC is a party, or by which FTC or any of its properties, assets
                or
                rights may be bound or (y) any

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    law,
      statute, rule, regulation, order, writ, injunction, decree, permit, concession,
      license or franchise of any Governmental Authority applicable to FTC or any
      of
      its properties, assets or rights or conflict with or result in any violation
      of
      FTC's Certificate of Incorporation or by- laws. No permit, authorization,
      consent or approval of or by, or any notification of or filing with, any
      Governmental Authority or other person or entity is required in connection
      with
      the execution, delivery and performance by FTC of this Agreement or the Related
      Agreements or the consummation by FTC of the transactions contemplated hereby
      or
      thereby, except for (i) the consents listed in Section 3.1.C of the Disclosure
      Schedule and (ii) such other consents, waivers, authorizations, filings,
      approvals and registrations which if not obtained or made would not have a
      OptiCon Material Adverse Effect or impair in any material respect the ability
      of
      FTC to consummate the transactions contemplated by this Agreement. 

     

    
      	
            	D.	
              Absence
                of Changes. Since January 1, 2004 or such other date as is specifically
                provided below, except as set forth in Section 3.1.D of the Disclosure
                Schedule, there has not been: 

            

    

     

    
      	 	
              (i.)

            	
              any
                damage, destruction or loss to any of the Acquired Assets, whether
                or not
                covered by insurance, having or which could have a OptiCon Material
                Adverse Effect; 

            

    

     

    
      	 	
              (ii)
                

            	
              any
                payment, discharge or satisfaction of any material Encumbrance on
                any of
                the Acquired Assets or Liability relating in any manner to, or arising
                from the operation of, OptiCon by FTC or any cancellation by FTC
                of any
                material debts or claims relating in any manner to, or arising from
                the
                operation of, OptiCon or any amendment, termination or waiver of
                any
                rights of material value to FTC relating in any manner to, or arising
                from
                the operation of, OptiCon; 

            

    

     

    
      	 	
              (iii)
                

            	
              any
                license, sale, transfer, pledge, mortgage or other disposition of
                any
                material tangible or intangible asset (including any Intellectual
                Property
                Rights of FTC) relating in any manner to, or used in the operation
                of,
                OptiCon other than in the Ordinary Course of Business;
                

            

    

     

    
      	
            	(iv)	
              any
                labor dispute or any union organizing
                campaign;

            

    

     

    
      	
            	(v)	
              the
                commencement of any litigation or other action by or against FTC
                relating
                in any manner to OptiCon;

            

    

     

    
      	
            	(vi)	
              any
                agreement, understanding, authorization or proposal, whether in writing
                or
                otherwise, for FTC to take any of the actions specified in items
                (i)
                through (v) above. 

            

    

    

    
      	
            	E.	
              Tax
                Matters. FTC and each other corporation or entity (if any) included
                in any
                consolidated or combined tax return in which FTC has been included
                have
                filed and will file, in a timely and proper manner, consistent with
                applicable laws, all Federal, state and local Tax returns and Tax
                reports
                required to be filed by them as they relate to OptiCon (the Tax Returns)
                with the appropriate governmental agencies in all jurisdictions in
                which
                Tax Returns are required to be filed and have timely paid or will
                timely
                pay all amounts shown thereon to be due. All such Tax Returns will
                be
                correct and complete in all material respects at the time of filing.
                FTC
                has not agreed to, nor is it required to, make any adjustment under
                Section 481(a) of the Code by reason of a change in accounting method
                or
                otherwise. As used in this Agreement, Tax means any of the Taxes
                and Taxes
                means, with respect to any entity, (A) all income taxes (including
                any tax
                on or based upon net income, gross income, income as specially defined,
                earnings, profits or selected items of income, earnings or profits)
                and
                all gross receipts, sales, use, ad valorem, transfer, franchise,
                license,
                withholding, payroll, employment, excise, severance, stamp, occupation,
                premium, property or windfall profits taxes, alternative or add-on minimum
                taxes, customs duties and other taxes, fees, assessments or charges
                of any
                kind whatsoever, together with all interest and penalties, additions
                to
                tax and other additional amounts imposed by any taxing authority
                (domestic
                or foreign) on such entity and (B) any liability for the payment
                of any
                amount of the type described in the immediately preceding clause
                (A) as a
                result of being a transferee (within the meaning of Section 6901
                of the
                Code or any other applicable law) of another entity or a member of
                an
                affiliated or combined group. 

            

    

     

    
      	
            	F.	
              Title
                to Assets, Properties and Rights and Related Matters. FTC
                has good and valid title to all of the Acquired Assets free and clear
                of
                all Encumbrances of any kind or character other than Permitted
                Encumbrances. The Acquired Assets are in good operating condition
                and
                repair in all material respects (ordinary wear and tear excepted).
                The
                Acquired Assets include all assets, properties and interests in properties
                (real, personal and mixed, tangible and intangible) and all rights,
                leases, licenses and other agreements necessary or desirable to enable
                OPTICON to carry on OptiCon in the manner as normally conducted by
                FTC and
                as proposed to be conducted. Except for the Shared Assets being retained
                by FTC, none of the assets, properties or rights being retained by
                FTC are
                used in, or necessary or desirable for, the operation of OptiCon
                as
                currently conducted or as proposed to be conducted. As used herein,
                (A)
                the term Encumbrances means and includes security interests, mortgages,
                liens, pledges, guarantees, charges, easements, reservations,
                restrictions, clouds, equities, rights of way, options, rights of
                first
                refusal and all other encumbrances, whether or not relating to the
                extension of credit or the borrowing of money, (B) Permitted Encumbrances
                means (i)

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    liens
      for
      taxes, assessments and other governmental charges or levies not due and payable,
      or which currently are being contested in good faith by appropriate proceedings
      and which are specifically listed on the appropriate section of the Disclosure
      Schedule, (ii)
      mechanics', workmen's, repairmen's, materialmen's, warehousemen's, vendors'
      and
      carriers' liens, and other similar liens arising in the Ordinary Course of
      Business for charges which are not delinquent, or which currently are being
      contested in good faith by appropriate proceedings and have not proceeded to
      judgment and which specifically are listed on the appropriate section of the
      Disclosure Schedule, and (iii) liens in respect of judgments or awards which
      specifically are listed on the appropriate section of the Disclosure Schedule
      and with respect to which there shall be a good faith current prosecution of
      an
      appeal or proceedings for review which is secured by an appropriate bond or
      a
      stay of execution pending such appeal or proceedings for review, and (C)
      Ordinary Course of Business means the operation of OptiCon in the ordinary
      course of business consistent with FTC's usual and customary practices in
      managing and operating OptiCon as they existed on August 1, 2004 without regard
      to the transactions contemplated hereby. 

     

    
      	
            	G.	
              [Intentional
                omitted] 

            

    

     

    
      	
            	H.	
              Intellectual
                Property. 

            

    

     

    
      	
            	(i)	
              Except
                as set forth in Section 3.1.H(i)(1) of the Disclosure Schedule, FTC
                has
                good and valid title to, and owns free and clear of all Encumbrances,
                has
                the exclusive right to use, sell, transfer, license (or sublicense),
                transmit, broadcast, deliver (electronically or otherwise) and dispose
                of,
                and has the right to bring actions for the infringement of, all
                Intellectual Property Rights used in connection with or necessary
                for the
                conduct of OptiCon in the Ordinary Course of Business and as proposed
                to
                be conducted after the Closing Date, including all Intellectual Property
                Rights set forth in Section 3.1.H(i)(2) of the Disclosure Schedule
                (collectively, OptiCon Intellectual Property
                Rights);

            

    

     

    
      	
            	(ii)	
              The
                execution, delivery and performance of this Agreement and the Related
                Agreements and the consummation of the other transactions contemplated
                hereby or thereby, will not breach, violate or conflict with any
                instrument or agreement governing any OptiCon Intellectual Property
                Rights
                in any material respect, will not cause the forfeiture or termination
                or
                give rise to a right of forfeiture or termination of any OptiCon
                Intellectual Property Right or materially impair the right of FTC
                to use,
                sell, license (or sublicense), transmit, broadcast, deliver
                (electronically or otherwise) or dispose of, or to bring any action
                for
                the infringement of, any OptiCon Intellectual Property Right or portion
                thereof; 

            

    

    

    
      	 	
              (iii)
                

            	
              To
                the knowledge of FTC, there are no royalties, honoraria, fees or
                other
                payments payable by FTC to any person by reason of the ownership,
                use,
                license (or sublicense), transmission, broadcast, delivery (electronically
                or otherwise), sale, or disposition of any OptiCon Intellectual Property
                Rights; 

            

    

     

    
      	
            	(iv)	
              Except
                as set forth in Section 3.1.H(iv) of the Disclosure Schedule, neither
                the
                manufacture, marketing, license (or sublicense), sale, transmission,
                delivery (electronically or otherwise), or use of any product or
                service
                currently or proposed to be licensed, sold, marketed, transmitted,
                broadcast, delivered (electronically or otherwise) or used by FTC
                or
                currently under development by FTC violates any license (or sublicense)
                or
                agreement of FTC with any third party or infringes any common law
                or
                statutory rights of any other party, including, without limitation,
                rights
                relating to defamation, contractual rights, Intellectual Property
                Rights
                and rights of privacy or publicity; nor, to the knowledge of FTC,
                is any
                third party infringing upon, or violating any license (or sublicense),
                transmission, broadcast, delivery, (electronically or otherwise)
                or
                agreement with FTC relating to, any OptiCon Intellectual Property
                Right;
                and there is no pending or threatened claim or litigation contesting
                the
                validity, ownership or right to use, manufacture, sell, license (or
                sublicense), transmit, broadcast, deliver (electronically or otherwise)
                or
                dispose of any OptiCon Intellectual Property Right, nor is there
                any basis
                for any such claim. FTC has not received any notice asserting that
                any
                OptiCon Intellectual Property Right or the proposed use, manufacture,
                sale, license (or sublicense), transmission, broadcast, delivery
                (electronically or otherwise) or disposition thereof conflicts or
                will
                conflict with the rights of any other party, nor is there any basis
                for
                any such assertion;

            

    

     

    
      	
            	(v)	
              All
                works that were created, prepared or delivered by consultants, independent
                contractors or other third parties for or on behalf of FTC (including
                any
                materials and elements created, prepared or delivered by such parties
                in
                connection therewith) (A) are and shall constitute works made for
                hire
                specially ordered or commissioned by FTC within the meaning of United
                States' copyright law or (B) have been duly assigned to FTC in writing,
                except to the extent that any failure to constitute a works made
                for hire
                or to assign any such work would not, either individually or in the
                aggregate, have a OptiCon Material Adverse
                Effect;

            

    

     

    
      	
            	(vi)	
              Section
                3.1.H(vi) of the Disclosure Schedule sets forth, for all OptiCon
                Intellectual Property Rights, a complete and accurate list of all
                United
                States and foreign (a) Patents; (b) Trademarks (including Internet
                domain
                registrations and unregistered Trademarks); and (c) Copyrights (including
                unregistered copyrights) indicating for each, the applicable jurisdiction,
                registration number (or application number), and date issued (or
                date
                filed); 

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	(vii)	
              To
                the knowledge of FTC, Section 3.1.H(vii) of the Disclosure Schedule
                sets
                forth a complete and accurate list of all license agreements granting
                any
                right to use or practice any rights under any OptiCon Intellectual
                Property Rights, whether FTC is the licensee or licensor thereunder
                (except for shrink-wrap licenses for off-the-shelf software used
                by FTC
                and other licensees identified in Section 3.1.I of the Disclosure
                Schedule) and any assignments, consents, term, forbearances to sue,
                judgments, orders, settlements or similar obligations relating to
                any
                OptiCon Intellectual Property Rights to which FTC is a party or otherwise
                bound (collectively, the License Agreements), indicating for each
                the
                title, the parties, date executed, whether or not it is exclusive
                and the
                Intellectual Property Rights covered thereby. The License Agreements
                are
                valid and binding obligations of FTC, enforceable in accordance with
                their
                terms, and there exists no event or condition, which will result
                in a
                violation or breach of, or constitute (with or without due notice
                or lapse
                of time or both) a default by FTC under any such License Agreement;
                

            

    

     

    
      	
            	(viii)	
              All
                Trademarks of FTC that constitute OptiCon Intellectual Property Rights
                have been in continuous use by FTC. To the knowledge of FTC, except
                as set
                forth in Section 3.1.H(viii) of the Disclosure Schedule, there has
                been no
                prior use of such Trademarks by any third party which would confer
                upon
                said third party superior rights in such Trademarks; and
                

            

    

     

    
      	 	
              (ix)

            	
              As
                used herein, the term Intellectual Property Rights shall mean all
                intellectual property rights worldwide, including, without limitation,
                trademarks, service marks, trade names, service names, URLs and Internet
                domain names and applications therefore (and all interest therein),
                designs, slogans and general intangibles of like nature, together
                with all
                goodwill related to the foregoing (including any registrations and
                applications for any of the foregoing) (collectively, Trademarks);
                patents
                (including any registrations, continuations, continuations in part,
                renewals and applications for any of the foregoing) (collectively,
                Patents); copyrights (including any registrations, applications and
                renewals for any of the foregoing (collectively, Copyrights); computer
                programs and other computer software (including, but not limited
                to the
                software); databases; technology, trade secrets and other confidential
                information, knowhow, proprietary technology, processes, formulae,
                algorithms, models, user interfaces, customer lists, inventions,
                source
                codes and object codes and methodologies, architecture, structure,
                display
                screens, layouts, development tools, instructions, templates, marketing
                materials, inventions, trade dress, logos and designs, software and
                data
                loaded on any acquired asset, and all documentation and media
                constituting, describing or relating to the foregoing (collectively,
                Trade
                Secrets). 

            

    

     

    
      	
            	I.	
              Software.

            

    

     

    
      	
            	(i)	
              Section
                3.1.I of the Disclosure Schedule sets forth a true and complete list
                of
                all material software programs and applications licensed by FTC from
                any
                third party and used by FTC in the operation of OptiCon (the Licensed
                Software).

            

    

     

    
      	
            	(ii)	
              The
                Licensed Software is validly held and used by FTC, as applicable,
                and may
                be used by FTC pursuant to the applicable license agreement with
                respect
                thereto without the consent of or notice to any third party. Each
                of the
                license agreements relating to the Licensed Software are valid and
                binding
                obligations, enforceable in accordance with their terms, and there
                exists
                no event or condition which will result in a violation or breach
                of, or
                constitute (with or without due notice or lapse of time or both)
                a default
                by FTC or the licensor under any such license agreement.
                

            

    

    

    
      	
            	J.	
              [Intentionally
                omitted] 

            

    

     

    
      	
            	K.	
              No
                Defaults. Except as set forth in Section 3.1.K of the Disclosure
                Schedule,
                FTC has in all material respects performed all of the obligations
                required
                to be performed by it to date and is not in default or alleged to
                be in
                default under (i) its Certificate of Incorporation or by-laws, (ii)
                the
                Assumed Contracts or (iii) any other material agreement, lease, license,
                contract, commitment, instrument or obligation relating to OptiCon
                to
                which it is a party or by which any of the Acquired Assets are or
                may be
                bound or affected, and there exists no event, condition or occurrence
                which, with or without due notice or lapse of time, or both, would
                constitute such a default or alleged default by it of any of the
                foregoing. 

            

    

     

    
      	
            	L.	
              Litigation,
                Etc. Except as set forth in Section 3.1.L of the Disclosure Schedule,
                there are no (i) actions, suits, claims, investigations or legal
                or
                administrative or arbitration proceedings (collectively, Actions)
                pending
                or threatened against FTC relating in any manner to, or arising out
                of the
                operation of, OptiCon, nor is there any basis therefore, whether
                at law or
                in equity, or before or by any Federal, state, municipal, foreign
                or other
                governmental court, department, commission, board, bureau, agency
                or
                instrumentality (Governmental Authority), (ii) judgments, decrees,
                injunctions or orders of any Governmental Authority or arbitrator
                against
                FTC relating in any manner to, or arising out of the operation of,
                OptiCon, or (iii) disputes with customers or vendors of OptiCon.
                Except as
                set forth in Section 3.1.L of the Disclosure Schedule, there are
                no
                Actions pending or threatened, nor is there any basis therefore,
                with

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    respect
      to (A) any of the Acquired Assets or Assumed Liabilities, (B) the employment
      by,
      or association with, OPTICON, of any of the present officers or employees of
      or
      consultants to FTC (collectively, the Designated Persons), or (C) the use,
      in
      connection with OptiCon, of any information, techniques or processes presently
      utilized or proposed to be utilized by FTC or any of the Designated Persons,
      that OPTICON or any of the Designated Persons are or would be prohibited from
      using as the result of a violation or breach of, or conflict with any agreements
      or arrangements between any Designated Person and any other person, or any
      legal
      considerations applicable to unfair competition, trade secrets or confidential
      or proprietary information. FTC has delivered to OPTICON all material documents
      and correspondence relating to such matters referred to in Section 3.1.L of
      Disclosure Schedule (including, in the case of clause (iii) of the first
      sentence of this Section 3.1.L, any correspondence evidencing material customer
      dissatisfaction with FTC or its products or services). 

     

    
      	
            	M.	
              Compliance;
                Governmental Authorizations and Consents.

            

    

     

    
      	
            	(i)	
              Except
                as set forth in Section 3.1.M of the Disclosure Schedule, FTC has
                complied
                and is presently in compliance in all material respects with all
                Federal,
                state, local or foreign laws, ordinances, regulations and orders
                applicable to the operation of OptiCon (including, without limitation,
                laws, ordinances, regulations and orders applicable to labor, employment
                and employment practices, terms and conditions of employment and
                wages and
                hours);

            

    

     

    
      	
            	(ii)	
              FTC
                has all Federal, state, local and foreign governmental licenses,
                consents,
                approvals, authorizations, permits, orders, decrees and other compliance
                agreements necessary in the conduct of OptiCon as presently conducted
                or
                as proposed to be conducted, such licenses, consents, approvals,
                authorizations, permits, orders, decrees and other compliance agreements
                are in full force and effect, no violations are or have been recorded
                in
                respect of any thereof and no proceeding is pending or, to the knowledge
                of FTC, threatened to revoke or limit any thereof, except to the
                extent
                that the failure to have any such license, consent, approval,
                authorization, permit, order, decree or other compliance agreement,
                to
                maintain the same in full force and effect or to be in compliance
                therewith would not, either individually or in the aggregate, have
                a
                OptiCon Material Adverse Effect; and

            

    

    

    
      	
            	(iii)	
              Section
                3.1.M of the Disclosure Schedule contains a true and complete list
                of all
                such governmental licenses, consents, approvals, authorizations,
                permits,
                orders, decrees and other compliance agreements relating in any manner
                to,
                or used in the operation of, OptiCon under which FTC is operating
                or
                bound, FTC is not in default or alleged to be in default under any
                thereof
                and FTC has furnished to OPTICON true and complete copies thereof.
                None of
                such licenses, consents, approvals, authorizations, permits, orders,
                decrees and other compliance agreements shall be affected in any
                material
                respect by the transactions contemplated hereby or by any of the
                Related
                Agreements.

            

    

     

    
      	
            	N.	
              Environmental
                Matters. 

            

    

     

    
      	
            	(i)	
              To
                the knowledge of FTC, FTC has complied with and is in compliance
                with all
                Federal, state, local and foreign laws, statutes (civil and criminal),
                common laws, ordinances, codes, regulations, rules, notices, permits,
                judgments, requirements, standards, guidelines, judicial and
                administrative orders and decrees applicable to it and its properties,
                assets, operations and businesses relating to pollution, worker and
                public
                health and safety, and/or environmental protection (collectively
                Environmental Laws), including without limitation Environmental Laws
                relating to air, water, land and the generation, release, storage,
                use,
                handling, transportation, treatment, discharge, disposal or other
                handling
                of Wastes, Hazardous Wastes and Hazardous Substances (as such terms
                are
                currently defined in any applicable Environmental
                Law);

            

    

     

    
      	
            	(ii)	
              To
                the knowledge of FTC, FTC has obtained and adhered to all necessary
                material permits and other approvals necessary to treat, transport,
                store,
                dispose of and otherwise handle Wastes, Hazardous Wastes and Hazardous
                Substances and has reported, to the extent required by all Environmental
                Laws, all past and present sites owned and operated by FTC where
                Hazardous
                Wastes or Hazardous Substances have been treated, stored, disposed
                of or
                otherwise handled; 

            

    

    

    
      	 	
              (iii)
                

            	
              To
                the knowledge of FTC, there have been no emissions, spills, discharges,
                releases or threats of releases (as defined in Environmental Laws)
                at,
                from, in or on any property owned, leased or operated by FTC except
                as
                permitted by Environmental Laws; 

            

    

     

    
      	
            	(iv)	
              To
                the knowledge of FTC, FTC has not transported or disposed of Wastes,
                Hazardous Wastes and/or Hazardous Substances or arranged for the
                transportation of Hazardous Wastes and Hazardous Substances to any
                on-site
                or off-site location, which site is the subject of any Federal, state,
                local or foreign enforcement action or any other investigation which
                could
                lead to any claim against FTC, or OPTICON for any clean-up cost,
                remedial
                work, damage to natural resources or personal injury, including without
                limitation any claim under the Comprehensive Environmental Response,
                Compensation and Liability Act of 1980, as amended (CERCLA); and
                

            

    

     

    
      	
            	(v)	
              To
                the knowledge of FTC, FTC does not or will not have any liability
                in
                connection with any release of

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    any
      Hazardous Waste or Hazardous Substance into the environment,. 

    

    For
      purposes hereof, the term Environmental Laws includes, without limitation,
      the
      Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C.
      (S) 9601 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. (S)
      6901
      et seq., the Federal Water Pollution Control Act, 33 U.S.C. (S) 1251 et seq.,
      the Clean Air Act, 42 U.S.C. (S)1857 et seq., the Occupational Safety and Health
      Act of 1970, 29 U.S.C. (S) 651 et seq., and the Toxic Substances Control Act,
      15
      U.S.C. (S) 2601 et seq. 

     

    
      	
            	O	
              [Intentionally
                Omitted]. 

            

    

     

    
      	
            	P	
              Brokers.
                FTC has not, nor have any of its officers, directors, security holders
                or
                employees, employed any broker or finder or incurred any liability
                for any
                brokerage fees, commissions or finders' fees in connection with the
                transactions contemplated hereby. 

            

    

     

    
      	
            	Q	
              Customers.
                Section 3.1.R of the Disclosure Schedule sets forth a true and complete
                list of at least the twenty (20) largest revenue producing customers
                of
                FTC (taking into account only the revenues from OptiCon) during the
                period
                from January 1, 2004 to the date hereof.

            

    

     

    ARTICLE
      IV 

     

    RELATED
      AGREEMENTS 

     

    On
      or
      prior to the Closing Date, the following agreements (such agreements, together
      with the Bill of Sale, Assignment and Assumption Agreement, Trademark Assignment
      and Other Assignments being herein collectively referred to as the Related
      Agreements) are being executed and delivered by the respective parties thereto:
      

     

    ARTICLE
      V 

     

    CONDITIONS
      PRECEDENT 

     

    
      	5.1	
              Conditions
                to Each Party's Obligations. The obligations of each party to perform
                this
                Agreement and to consummate the transactions contemplated hereby
                are
                subject to the satisfaction of the following conditions unless waived
                (to
                the extent such conditions can be waived) by all parties hereto:
                

            

    

     

    
      	
            	A.	
              Approvals.
                All authorizations, consents, orders or approvals of, or declarations
                or
                filings with or expiration of waiting periods imposed by any Governmental
                Authority necessary for the consummation of the transactions contemplated
                hereby shall have been obtained or made or shall have occurred.
                

            

    

     

    
      	
            	B.	
              Legal
                Action. No temporary restraining order, preliminary injunction or
                permanent injunction or other order preventing the consummation of
                the
                transactions contemplated hereby shall have been issued by any Federal
                or
                state court or other Governmental Authority and remain in effect.
                

            

    

     

    
      	 	
              C.

            	
              Legislation.
                No Federal, state, local or foreign statute, rule or regulation shall
                have
                been enacted which prohibits, restricts or delays the consummation
                of the
                transactions contemplated by this Agreement or any of the conditions
                to
                the consummation of such transactions.

            

    

     

    SECTION
      6

     

    INDEMNIFICATION
      

     

    
      	6.1	
              Indemnity
                by FTC
                -
                FTC shall defend, indemnify and hold OPTICON, its officers, directors,
                employees, subsidiaries and Affiliates harmless from and against
                all
                Losses arising out of or resulting from:

            

    

     

    (a)
      any
      breach of the representations and warranties made by FTC in or pursuant to
      this
      Agreement or the failure of such representations and warranties to be true
      and
      correct;

     

    (b)
      any
      failure by FTC to carry out, perform, satisfy and discharge any of their
      covenants, agreements, undertakings, liabilities or obligations under this
      Agreement or under any of the documents delivered by any FTC pursuant to this
      Agreement; 

     

    (c)
      any
      liability imposed on OPTICON arising out of any FTC failure to comply with
      any
      applicable bulk sales or bulk transfer laws; 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	6.2	
              Indemnity
                by OPTICON -
                OPTICON will indemnify and hold FTC harmless from and against all
                Losses
                arising out of or resulting from: 

            

    

     

    (a)
      any
      breach of any representations and warranties made by OPTICON in or pursuant
      to
      this Agreement or the failure of such representations and warranties to be
      true
      and correct; 

    (b)
      any
      failure by OPTICON to carry out, perform, satisfy and discharge any of its
      covenants, agreements, undertakings or obligations under this Agreement; and
      

    

    
      	6.3	
              Notice
                of Claim -The
                indemnified party shall promptly notify the indemnifying party in
                writing
                in reasonable detail of any claim, demand, action or proceeding for
                which
                indemnification will be sought under this Section 6. If such claim,
                demand, action or proceeding is a third party claim, demand, action
                or
                proceeding (a “Third Party Claim”), the indemnifying party will have the
                right at its expense to assume the defense thereof using counsel
                reasonably acceptable to the indemnified party or the indemnifying
                party.
                The indemnified party shall have the right to participate, at its
                own
                expense, with respect to any such Third Party Claim. In connection
                with
                any such Third Party Claim, the parties shall cooperate with each
                other
                and provide each other with access to relevant books and records
                in their
                possession. No such Third Party Claim shall be settled without the
                prior
                written consent of the indemnified party. If a firm written agreement
                is
                made by, or with the approval of the indemnifying party to settle
                any such
                Third Party Claim and the indemnified party unreasonably refuses
                to
                consent to such settlement, then: (a) the indemnifying party shall
                be
                excused from, and the indemnified party shall be solely responsible
                for,
                all further defense of such Third Party Claim; (b) the maximum liability
                of the indemnifying party relating to such Third Party Claim shall
                be the
                amount of the proposed settlement if the amount thereafter recovered
                from
                the indemnified party on such Third Party Claim is greater than the
                amount
                of the proposed settlement; and (c) the indemnified party shall pay
                all
                attorneys’ fees and legal costs and expenses incurred after rejection of
                such settlement by the indemnified party.

            

    

     

    
      	6.4	
              Termination
                of Indemnification 

            

    

     

    (a)
      As to
      OPTICON.
      The
      right of OPTICON to be indemnified under this Section 6 shall survive:

     

    (i)
      as to
      matters described in Section 6.1(a), 6.1(b) and 6.1(c) (to the extent the suit,
      action or proceeding applies to the foregoing sections), until 12 months
      following the Closing Date; 

    (ii)
      as
      to matters described in Section 6.1(e), until the termination of the applicable
      statute of limitations (including any waivers or extensions thereof agreed
      to by
      OPTICON). 

    (a)
      As
      to
      FTC.
      The
      right of any FTC to be indemnified under this Section 6 shall survive until
      24
      months following the Closing Date, except for those matters described in Section
      6.2(c), which shall survive until the termination of the applicable statute
      of
      limitations (including any waivers of extensions thereof agreed to by FTC).
      

    (b)
      Exceptions.
      Notwithstanding subsections (a) and hereof: 

    (i)
      any
      indemnity claim based on fraudulent misrepresentations or fraudulent material
      omission or fraudulent breach of warranty shall survive without any time
      limitations; and 

    (ii)
      any
      indemnity claim based on any matter which has been described in a notice to
      an
      indemnifying party pursuant to Section 6.3 of this Agreement prior to the
      expiration of the applicable time limitation set forth in subsections (a) and
      (b) above shall survive until the claim is finally resolved. 

    

    
      	6.5	
              Claims
                Net of Insurance and Tax Benefits

            

    

     

    The
      amount which FTC is required to pay to, for, or on behalf of the OPTICON
      pursuant to this Section 6 shall be reduced (including, without limitation,
      retroactively) by any insurance proceeds actually recovered or tax benefit
      actually received by or on behalf of the OPTICON in reduction of the related
      indemnifiable loss. Amounts required to be paid, as so reduced, are hereinafter
      sometimes called an “Indemnity
      Payment”.
      If the
      OPTICON shall have received, or if the FTC shall have paid on its behalf, an
      indemnity payment in respect of an indemnifiable loss and shall subsequently
      receive, directly or indirectly, insurance proceeds 

     

    OPTICON
      SYSTEMS INC Asset Purchase Agreement of FUTURETECH CAPITAL LLCCONFIDENTIAL
      

    (which
      duplicate in whole or in part, amounts paid by FTC) or a tax benefit in respect
      of such indemnifiable loss, then the OPTICON shall promptly pay to FTC the
      amount of such insurance proceeds or tax benefit, or, if less, the amount of
      the
      Indemnity Payment. 

     

    
      	6.6	
              Exclusive
                Remedy 

            

    

     

    Except
      in
      cases of fraud or where a party is entitled to an equitable remedy,
      indemnification pursuant to this Section 6

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    shall
      be
      the exclusive remedy of the parties for any losses. The only legal action which
      may be asserted by any party hereto against the other party with respect to
      any
      matter which is the subject of this Agreement shall be a contract action to
      enforce, or to recover damages for a breach of this Section 6. 

     

    ARTICLE
      VII 

     

    NON-COMPETITION
      

     

    
      	7.1	
              In
                order to induce OPTICON to enter into this Agreement and to consummate
                the
                transactions contemplated hereby, FTC hereby covenant as follows,
                which
                covenants shall be in addition and without prejudice to any other
                noncompetition, nonsolicitation and/or similar covenants to which
                FTC may
                be subject from time to time: 

            

    

     

    
      
        
          	
                	A.	
                  Covenant
                    Not to Compete.  FTC
                    agree that, for a period of three (3) years after the Closing
                    Date (the
                    “Restricted Period”), except as provided below, none of them nor any of
                    their subsidiaries or Affiliates (whether or not presently existing)
                    (each
                    a “Restricted Party”) shall compete, directly or indirectly, with OPTICON
                    in its conduct of the OptiCon Business; provided, however that
                    nothing
                    described herein shall prevent FTC from (i) selling products
                    pursuant to
                    the Reseller Agreement or (ii)
                    providing any service to its customers other that those sevices
                    directly
                    related to OptiCon. 

                

        

      

    

     

    
      
        
          	
                	B.	
                  Restriction
                    on Solicitation of Employees. During
                    the Restricted Period, neither FTC nor any of their Affiliates
                    shall
                    directly or indirectly recruit, solicit, induce, or attempt to
                    induce any
                    of the employees or independent contractors of OPTICON or any
                    of their
                    Affiliates to terminate their employment or contractual relationship
                    with
                    the other party or any such Affiliate; and neither FTC nor any
                    of their
                    Affiliates shall assist any other Person to do so, or be a proprietor,
                    equityholder, investor (except as an investor holding not more
                    than 1% of
                    the capital stock or other securities of a publicly held company),
                    lender,
                    partner, director, officer, employee, consultant or representative
                    of any
                    Person who does or attempts to do so. However, the foregoing
                    covenant of
                    non-solicitation shall not be violated by FTC’ or their Affiliates’, use
                    of employment advertisements placed in general or mass media
                    publications.

                

        

         

      

    

    
      	
            	
              C.

            	
              Restrictions
                on Solicitations of Customers. During the Restricted Period, neither
                FTC nor any of their Affiliates shall directly or indirectly solicit,
                divert, take away, or attempt to divert or take away, from OPTICON
                or any
                of its Affiliates, any of the business or patronage of its customers,
                clients, accounts, vendors or suppliers, and neither FTC nor any
                of their
                Affiliates shall assist any other Person to do so, or be a proprietor,
                equityholder, investor (except as an investor holding not more than
                1% of
                the capital stock or other securities of a publicly held company),
                lender,
                partner, director, officer, employee, consultant or representative
                of any
                Person who does or attempts to do so.

            

    

     

    
      
        
          	
                	D.	
                  Equitable
                    Relief. FTC
                    hereby acknowledge that any breach by any of them of their obligations
                    under this Article VII would cause substantial and irreparable
                    damage to
                    OPTICON and its Affiliates; and that money damages would be an
                    inadequate
                    remedy therefore, and accordingly, acknowledge and agree that
                    the other
                    party or any Affiliate shall be entitled to an injunction, specific
                    performance, and/or other equitable relief to prevent the breach
                    of such
                    obligations (in addition to all other rights and remedies to
                    which such
                    party may be entitled in respect of any such
                    breach).

                

        

      

    

    
    

     

    
      
        
          	
                	E.	
                  Enforceability.
                    In
                    the event that a court of competent jurisdiction determines that
                    any of
                    the provisions of this Article VII would be unenforceable as
                    written
                    because they cover too extensive a geographic area, too broad
                    a range of
                    activities, or too long a period of time, or otherwise, then
                    such
                    provisions shall automatically be modified to cover the maximum
                    geographic
                    area, range of activities, and period of time as may be enforceable,
                    and
                    in addition, such court or arbitrators are hereby expressly authorized
                    so
                    to modify this Agreement and to enforce it as so modified. No
                    invalidity
                    or enforceability of any section of this Agreement or any portion
                    thereof
                    shall affect the validity or enforceability of any other section
                    or of the
                    remainder of such section.

                

        

         

        ARTICLE
          VIII 

      

    

     

    MISCELLANEOUS
      

     

    
      	8.1	
              Expenses.
                As used in this Agreement, Transaction Costs shall mean, with respect
                to
                any party, all actual, out-of-pocket expenses incurred by such party
                to
                third parties, in connection with this Agreement and the
                Related

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Agreements
      and all other transactions provided for herein and therein. Each party hereto
      shall bear its own Transaction Costs in connection with the transactions
      contemplated by this Agreement. 

     

    
      	8.2	
              Entire
                Agreement. This Agreement (including the Disclosure Schedule and
                the
                Exhibits attached hereto), the Related Agreements and the other writings
                referred to herein contain the entire agreement among the parties
                hereto
                with respect to the transactions contemplated hereby and supersede
                all
                prior agreements or understandings, written or oral, among the parties
                with respect thereto. 

            

    

     

    
      	8.3	
              Interpretation.
                Descriptive headings are for convenience only and shall not control
                or
                affect the meaning or construction of any provision of this Agreement.
                The
                words include, includes and including when used herein shall be deemed
                in
                each case to be followed by the words without limitation. The word
                herein
                and similar references mean, except where a specific Section or Article
                reference is expressly indicated, the entire Agreement rather than
                any
                specific Section or Article. The table of contents and the headings
                contained in this Agreement are for reference purposes only and shall
                not
                affect in any way the meaning or interpretation of this Agreement.
                

            

    

     

    
      	8.4	
              Notices.
                All notices or other communications which are required or permitted
                hereunder shall be in writing and sufficient if delivered personally
                or
                sent by nationally-recognized overnight courier or by registered
                or
                certified mail, postage prepaid, return receipt requested, or by
                electronic mail with a copy thereof to be delivered by mail (as aforesaid)
                within 24 hours of such electronic mail, or by facsimile, with
                confirmation as provided above addressed as follows:
                

            

    

     

    (i)
      if to
      OPTICON , to: 

     

    OPTICON
      SYSTEMS INC. 17250 Knoll Trail Suite 307 Dallas, TX 75248 Attention: Chief
      Executive Officer Facsimile: (603) 232-2460 with a copy to (which shall not
      constitute notice): 

     

    Glenn
      E.
      Goldberg, Esq. 

    Goldberg
      Law Group, P.A.

    133
      First
      Street North

    Suite
      2

    St.
      Petersburg, Florida 33701 

    Telephone:
      727/898-5200 

    Telefax:
      866/323-6096 

    E-mail:
      geglaw@aol.com

     

    (ii)
      if
      to FTC, to:

     

    FUTURETECH
      CAPITAL LLC 

    405
      Central Ave., Suite 100-8 

    St.
      Pete,
      FL 33701 

    Attention:
      Legal Counsel 

    Fax:
      813-354-2739

     

    with
      a
      copy to (which shall not constitute notice): 

     

    or
      to
      such other address as the party to whom notice is to be given may have furnished
      to the other party in writing in accordance herewith. All such notices or
      communications shall be deemed to be received (a) in the case of personal
      delivery, on the date of such delivery, (b) in the case of nationally-recognized
      overnight courier, on the next business day after the date when sent, (c) in
      the
      case of facsimile transmission or electronic mail, upon confirmed receipt,
      and
      (d) in the case of mailing, on the third business day following the date on
      which the piece of mail containing such communication was posted. 

     

    
      	8.6	
              Counterparts.
                This Agreement may be executed in any number of counterparts by original
                or facsimile signature, each such counterpart shall be an original
                instrument, and all such counterparts together shall constitute one
                and
                the same agreement. 

            

    

     

    
      	8.7	
              Governing
                Law; Venue. This Agreement shall be governed by and construed in
                accordance with the laws of the State of Delaware without reference
                to its
                conflicts of laws provisions. The parties irrevocably and unconditionally
                submit to the exclusive jurisdiction of the federal courts sitting
                in
                Delaware over any suit, action or proceeding arising out of or relating
                to
                this Agreement or any Related Agreement. The parties irrevocably
                and
                unconditionally

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    waive
      any
      objection to the laying of venue of any such suit, action or proceeding brought
      in such court and any claim that any such suit, action or proceeding brought
      in
      such court has been brought in an inconvenient forum. The parties agree that
      a
      final judgment in any such suit, action or proceeding brought in such court
      shall be conclusive and binding upon the parties and may be enforced in any
      other courts to whose jurisdiction other parties are or may be subject, by
      suit
      upon such judgment. 

     

    
      	8.8	
              Benefits
                of Agreement. All the terms and provisions of this Agreement shall
                be
                binding upon and inure to the benefit of the parties hereto and their
                respective successors and permitted assigns. This Agreement shall
                not be
                assignable by any party hereto without the consent of the other parties
                hereto; provided, however, that anything contained herein to the
                contrary
                notwithstanding, each of OPTICON may assign and delegate any or all
                of its
                respective rights and obligations hereunder to any other direct or
                indirect wholly-owned subsidiary of OPTICON; provided further, however,
                that any of the rights granted to and obligations of OPTICON under
                this
                Agreement (other than the payment of the Purchase Price) may also
                be
                exercised or performed by any entity controlled by or under common
                control
                with OPTICON (each, an OPTICON Affiliate); provided that such OPTICON
                Affiliate agrees to be bound by all of the applicable provisions
                hereof
                governing such exercise or performance and that FTC promptly receives
                written notice of any such exercise or performance.
                

            

    

     

    
      	8.9	
              Pronouns.
                As used herein, all pronouns shall include the masculine, feminine,
                neuter, singular and plural thereof whenever the context and facts
                require
                such construction. 

            

    

     

    
      	8.10	
              Amendment,
                Modification and Waiver. This Agreement shall not be altered or otherwise
                amended except pursuant to an instrument in writing signed by OPTICON,
                and
                FTC; provided, however, that any party to this Agreement may waive
                in
                writing any obligation owed to it by any other party under this Agreement.
                The waiver by any party hereto of a breach of any provision of this
                Agreement shall not operate or be construed as a waiver of any subsequent
                breach. 

            

    

     

    
      	8.11	
              No
                Third Party Beneficiaries. Nothing express or implied in this Agreement
                is
                intended to confer, nor shall anything herein confer, upon any person
                other than the parties and the respective successors or assigns of
                the
                parties, any rights, remedies, obligations or liabilities whatsoever,
                except to the extent that such third person is an Indemnified Person
                or
                Indemnifying Person in respect of the indemnification provided in
                accordance with Article VII of this Agreement.

            

    

     

    
      	8.12	
              Consents.
                Except as otherwise expressly provided in this Agreement, any consent
                or
                approval of OPTICON requested or permitted hereunder may be given
                or
                withheld in OPTICON's sole discretion, provided that, such consent
                or
                approval shall not be unreasonably withheld.

            

    

     

    
      	8.13	
              Interpretation.
                This Agreement has been negotiated between the parties and will not
                be
                deemed to be drafted by, or the product of, any party. As such, this
                Agreement will not be interpreted in favor of, or against, any party.
                

            

    

     

    
      	8.14	
              No
                Joint Venture. No party hereto shall make any warranties or
                representations, or assume or create any obligations, on the other
                party's
                behalf except as may be expressly permitted hereunder or in writing
                by
                such other party. Each party hereto shall be solely responsible for
                the
                actions of all its respective employees, agents and representatives.
                

            

    

     

    
      	8.15	
              Specific
                Performance. The transactions contemplated by this Agreement are
                unique
                transactions and any failure on the part of FTC to complete the
                transactions contemplated by this Agreement or any of the Related
                Agreements on the terms of this Agreement or any of the Related Agreements
                will not be fully compensable in damages and the breach or threatened
                breach of the provisions of this Agreement or any of the Related
                Agreements would cause OPTICON irreparable harm. Accordingly, in
                addition
                to and not in limitation of any other remedies available to OPTICON
                for a
                breach or threatened breach of this Agreement or any of the Related
                Agreements, OPTICON will be entitled to specific performance of this
                Agreement or any of the Related Agreements upon any breach by FTC,
                and to
                an injunction restraining any such party from such breach or threatened
                breach. 

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, each of the parties hereto has caused this Asset Purchase
      Agreement to be executed on its behalf as of the day and year first above
      written. 

     

    OPTICON
      SYSTEMS INC. 

     

     

    By:
      /s/

    
      
        

      

    

    Name:

    Title:
      President

     

     

    FUTURETECH
      CAPITAL LLC.

     

     

    By: 
      /s/

      
        

      

    

    
      Name:
        Sam
        Talari

    

    Title:
      Managing
      Partner

     

    [SIGNATURE
      PAGE TO ASSET PURCHASE AGREEMENT]AMENDMENT
      OF ASSET PURCHASE AGREEMENT

     

    BY
      AND BETWEEN

     

    FUTURETECH,
      INC., AND OPTICON SYSTEMS, INC.

     

    Dated
      as of October 31, 2004

     

    AMENDMENT
      OF ASSET PURCHASE AGREEMENT (this Agreement) dated as of October 31, 2004,
      by
      and between FUTURETECH CAPITAL, LLC, a Delaware limited liability corporation
      (FUTURETECH), and OPTICON SYSTEMS, INC., a Nevada corporation
      (“OPTICON”).

     

    WHEREAS,
      FUTURETECH entered into an agreement to sell to OPTICON a telecommunication
      network asset management software, otherwise known as its OptiCon Network
      Manager, including Releases 3.x, 4.x and any related products currently under
      development (collectively referred to as the “Purchased Assets);

     

    WHEREAS,
      according to the agreement, the closing of the transaction contemplated by
      the
      Agreement was to take place on September 19, 2004. Due to delays in obtaining
      financing by FUTURE TECH to acquire the software, the parties anticipated the
      closing would occur within a reasonably short time;

     

    WHEREAS,
      in contemplation of imminent closing such agreement, OPTICON issued FUTURETECH
      84,000,000 shares of its common stock evidenced by its stock certificate dated
      October 22, 2004.

     

    WHEREAS,
      it has become evident that due to financing issues by FUTURETECH, the closing
      of
      the transaction contemplated by the Agreement would be delayed for an unknown
      period of time;

     

    WHEREAS,
      it is the intent of the panties to this agreement to pursue the intended
      transaction in substantially the same and conditions as stated in the original
      agreement:

     

    NOW,
      THEREFORE, in consideration of the mutual benefits to be derived from this
      Agreement and the representations, warranties, covenants, agreements, conditions
      and promises contained herein and therein, the parties hereby agree to amend
      the
      original agreement as follows:

     

    
      	
            	1.0	
              FUTURETECH
                shall relinquish and return to OPTICON, and OPTICON shall cancel
                the stock
                certificate dated October 22, 2004 for 84,000,000 shares of its common
                stock.

            

    

     

    
      	
            	2.0	
              It
                is the intent of the parties that the consideration for the Purchase
                Assets shall remain as per the original agreement and that the 84,000,000
                shares of common stock of OPTION shall be re-issued upon the effective
                date of the contemplated transaction.

            

    

     

    
      	
            	3.0	
              The
                closing date of the transaction shall be amended to coincide with
                the
                effective date the FUTURETECH acquires the Purchased
                Assets.

            

    

     

    
      	
            	4.0	
              All
                other terms and conditions of the original agreement shall remain
                intact.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, each of the parties hereto has caused this Amendment of Asset
      Purchase Agreement to be executed on its behalf as of the day and year first
      above written.

    

    FUTURETECH
      CAPITAL LLC.

    

    

    By: 
      /s/ Saeed Talari

      
        

      

    

    Name: 
      Saeed Talari, Managing Partner

    

    

    

    OPTICON
      SYSTEMS, INC.

    

    

    By: 
      /s/ John M. Hattan

      
        

      

    

    Name:
      John M. Hatton, President

    

    [SIGNATURE
      PAGE TO ASSET PURCHASE AGREEMENT]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Bill
      of Sale

     

    THIS
      BILL OF SALE,
      dated
      July 29,2005, by Futuretech Inc. a Delaware corporation (“Seller”)
      provides:

     

    Capitalized
      terms not herein defined shall have the meaning assigned to them in the Asset
      Purchase Agreement (the Purchase Agreement), Dated July 29, 2005, by and among
      Seller and Opticon Systems Inc. (“Buyer”) a Nevada corporation.

     

    Pursuant
      to the Purchase Agreement and in consideration thereof, as well as other good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, Seller does hereby sell, convey, transfer assign and deliver
      to
      Buyer possession and valid and marketable title, free and clear of all liens,
      encumbrances, rights or claims of any nature whatsoever of the Acquired
      Assets.

     

    TO
      HAVE AND TO HOLD ALL
      the
      property hereby transferred to Buyer and its successors and assigns
      forever.

     

    Seller,
      by this Bill of Sales, covenants with the Buyer that the Seller will perform
      such further acts and execute and deliver such further bills of sale,
      assignments, transfers, conveyances, powers of attorney, consents, assurances
      and other documents and instruments as Buyer may reasonably request to vest
      in
      Buyer, and protect Buyer’s right, title and interest in, and enjoyment of, the
      Purchased Assets transferred to Buyer hereby.

     

    IN
      WITNESS WHEREOF,
      Seller
      has duly executed this Bill of Sale as of the day and year first above
      written.

     

    Futuretech
      Capital LLC

     

    BY:  
      Sam Talari

    Title:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
      OF INTELLECTUAL PROPERTY RIGHTS

     

    Futuretech
      Inc., a Delaware corporation (“Assignor”) and Opticon Systems Inc, a Nevada
      corporation (“Assignee”) are parties to an Asset Purchase Agreement (“Asset
      Purchase Agreement”) of even date herewith. Terms used herein and not otherwise
      defined shall only have the meaning ascribed to them in the Asset Purchase
      Agreement. Assignor owns the right, title and interest in the Intellectual
      Property Rights as described in the Asset Purchase Agreement.

     

    WHEREAS,
      Assignee is desirous of acquiring Assignor’s entire right, title, and interest
      in and to the Intellectual Property Rights;

     

    NOW,
      THEREFORE, in consideration of one Dollar($1.00) and other good and sufficient
      consideration, the receipt of which is hereby acknowledged, the Assignor hereby
      sells, assigns, transfers, and sets over, unto the Assignee, its successors,
      legal representatives, and assigns Assignor’s entire right, title and interest
      in and to the Intellectual Property Rights, the same to be held and enjoyed
      by
      the Assignee, for its own use and behalf and the use and behalf of its
      successors, legal representatives, and assigns, as fully and entirely as the
      same would have been held and enjoyed by the Assignor had this sale not been
      made;

     

    Assignor
      hereby covenants and warrants to the assignee, its successors, legal
      representatives, and assigns, that, at the time of the execution and delivery
      of
      this Assignment, the Assignor has the lawful authority to sell and convey the
      same in the manner herein set forth; and

     

    Assignor
      further covenants and agrees to assist the Assignee, its successors, legal
      representatives, and assigns to sign all papers and documents, take all lawful
      oaths, and do all acts necessary or required to be done to perfect and record
      the assignment contemplated herein and to assist Assignee with the procurement,
      maintenance, enforcement and defense of the Intellectual Property without charge
      to the Assignee, its successors, legal representatives, and assigns.

     

    
      	 	
              Futuretech
                Inc.

            
	 	 
	 	 
	
              Date:
                July 19, 2005

            	
              By: 
                ____________________________

            

    

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ATTACHMENT1

     

    
      	
              TRADEMARK

            	
              COUNTRY

            	
              STATUS

            	
              APP.
                NO.

            	
              REG.
                NO.

            
	
              OPTICON

            	
              USA

            	
              Common
                Law

            	  
	  

	
              OPTICON
                Design

            	
              USA

            	
              Common
                Law

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