Document:

Exhibit
10.64

 

INNERLOOP
DEBT SETTLEMENT AGREMEENT 

THIS
AGREEMENT MADE EFFECTIVE AS OF THE 15th day of
March, 2005 (the “Effective Date”).

 

 

	BETWEEN:	Moving Bytes
      Inc., a
      corporation duly incorporated under the Canada Business Corporations Act
      (the “Corporation”), of 4340 Redwood Hwy., Ste. F222, San Rafael,
      California 94903;
	 	 
	AND: 	Innerloop Mobile Communications
      Inc., a
      corporation duly incorporated under the laws of Norway, of Martin Linges
      Vei #17, (iti.t.fornebu inkubatur), 1367 Snaroya, Norway
      (“Innerloop”).

 

WHEREAS:

 

A.
 On
October 22, 2004, Innerloop subscribed to a convertible note (the “Note”) of the
Corporation and, subject to the terms and conditions of this Agreement,
Innerloop agrees to cancels the Note and all principal and accrued interest
owing on the Note, waives all of its rights under the Note and agrees to a full,
complete and irrevocable release of all of the Corporation’s obligations under
the Note; and

 

B.
 On
October 22, 2004, Innerloop and certain current and former officers and
directors of the Corporation J. Erik Mustad, Mark Smith and Jim Miller, (jointly
and severally, the “Directors”), entered into agreements whereunder the
Directors optioned restricted common stock to Innerloop in connection with the
Note (the “Director’s Option Agreements”) and subject to the terms and
conditions of individual agreements with each of the Directors which are to be
entered into concurrent with this Agreement (the “Director’s Option Termination
Agreements”) is terminating the Director’s Option Agreements. 

 

NOW,
THEREFORE, THIS AGREEMENT WITNESSES that in consideration of the mutual
covenants and agreements herein contained, the receipt of which is hereby
acknowledged, the parties covenant and agree with each other as
follows:

 

	1.  	
      Issuance
      of Restricted Common Stock.
      The Corporation will issue to Innerloop or its designees Four Million Five
      Hundred Thousand (4,500,000) shares of restricted common stock, subject to
      its designees completing any and all documentation as may be requested by
      the Corporation in order for the Corporation to comply with U.S.
      securities laws including Regulation S, promulgated under the Securities
      Act of 1933. Innerloop will provide the Corporation with a list of its
      designees, if any, prior to the Corporation issuing any shares hereunder
      and the Corporation shall not be obligated to issue any shares to any
      individual designee until such time as that designee shall have completed
      any and all documentation as may be requested by the
      Corporation.

 

	2.  	
      Release
      of Interest in Note.
      Innerloop hereby releases and waives all rights to any and all of the
      interest that Innerloop possesses in the Note or under any documents or
      instruments related thereto, whether tangible or intangible, including,
      but not limited to, the principal amount of the Note and all accrued
      interest thereunder, all first rights of refusal on future security
      issuances of the Corporation and its right to appoint any directors to the
      Corporation’s board of directors. Innerloop further agrees and
      acknowledges that to the extent the Note provided Innerloop with any
      rights whatsoever, those rights are hereby waived and
      extinguished.

 

	3.  	
      Release
      of Interest in Director’s Options Agreements.
      Innerloop hereby releases and waives all rights to any and all of the
      interest that Innerloop possesses in the Director’s Option Agreements,
      whether tangible or intangible, including but not limited to, its rights
      to purchase restricted common stock from the Directors. Innerloop further
      agrees and acknowledges that to the extent the Director’s Option
      Agreements provided Innerloop with any rights whatsoever, those rights are
      hereby waived and extinguished and Innerloop agrees concurrently with the
      execution of this Agreement to enter into Director’s Option Termination
      Agreements with each of the Directors which are attached as Exhibit A,
      Exhibit B, and Exhibit C, hereto.

 

	4.  	
      Assignment.
      Except as expressly provided for in Section 1 hereto, Innerloop shall not
      assign its rights hereunder and this Agreement shall be binding upon and
      benefit the successor, assigns, heirs ands administrators and transferees
      of the parties.

 

	5.  	
      Waiver
      and Amendment.
      No amendment to this Agreement will be valid or binding unless set forth
      in writing and duly executed by all of the parties hereto. No waiver of
      any breach of any provision of this Agreement will be effective or binding
      unless made in writing and signed by the party purporting to give the same
      and, unless otherwise provided in the written waiver, will be limited to
      the specific breach waived.

 

	6.  	
      Notices.
      Except as otherwise expressly set forth herein, any notice, request or
      other communication required or permitted hereunder shall be in writing
      and shall be deemed to have been duly given if personally delivered or if
      faxed with confirmation of receipt by telephone or if mailed be registered
      or certified mail or by courier, to the respective the addresses of the
      parties as set for the hereinabove. Any party hereto may by notice so
      given change its address for future notice hereunder. Notice shall
      conclusively be deemed to have been given when personally delivered, faxed
      or when deposited in the mail in the manner set forth above and shall be
      deemed to have been received when
delivered.

 

	7.  	
      No
      Stockholder Rights.
      Nothing contained in this Agreement shall be construed as conferring upon
      Innerloop or any other person the right to vote or to consent or to
      receive notice as a stockholder in respect of stockholders for the
      election of directors of the Corporation or any other matters or any
      rights whatsoever as a stockholder of the Corporation, except as may be
      conferred on a stockholder subsequent to the issuance of shares under
      Section 1 hereto.

 

	8. 	
      Board
      Approval of Corporation and Innerloop.
      Both the Corporation and Innerloop represent that their respective boards
      of directors have approved this Agreement and the exhibits
      hereto.

 

	9.  	
      Costs.
      Each party shall be responsible for its own costs with respect to the
      preparation, delivery and enforcement of this
Agreement.

 

	10. 	
      Counterparts.
      This Agreement may be executed in one or more counterparts and by
      facsimile, all of which shall be deemed one and the same
      agreement.

 

	11. 	
      Governing
      Law.
      The contract arising out of the acceptance of this subscription by the
      Corporation shall be construed, enforced, and administered in accordance
      with the laws of the state of California, under the jurisdiction of
      California, without giving effect to any provision thereof that would
      compel the application of the substantive laws of any other jurisdiction
      and without regard to the conflicts of law provisions. This Agreement
      represents the entire agreement of the parties hereto relating to the
      subject matter hereof. 

 

	12.  	
      Headings;
      References.
      All headings used herein are for convenience only and shall not be used to
      construe or interpret this Agreement. Except as where otherwise indicated,
      all reference here to Sections refer to Sections
hereof.

 

IN
WITNESS WHEREOF this agreement has been executed as of the day and year first
above written.

 

Innerloop
Mobile Communications, A.S. 

 

/s/
Paul
Ektvedt

PAUL
EKTVEDT

Director

 

/s/
Morton
Kopke

MORTON
KOPKE

Director

Moving
Bytes Inc.      

 

/s/
Mark M. Smith   

Mark M.
Smith      

President
and Chief Financial Officer 

Moving
Bytes Inc.      

 

/s/ J.
Erik Mustad   

J. Erik
Mustad      

Chief
Executive Officer

 

EXHIBIT
A

 

MUSTAD
DIRECTOR’S OPTION TERMINATION AGREEMENT 

 

THIS
document sets forth an agreement made and entered into effective as of March 15,
2005 (the “Effective Date”) by and between,

 

Innerloop
Mobile Communications, A.S., a company duly incorporated in Norway of Martin
Linges Vei #17 (iti.t.fornebu inkubatur), 1367 Snaroya, Norway (“Optionee”), and

 

J. Erik
Mustad, an individual of 154 Bret Harte Rd., San Rafael, California 94901 USA
(“Stockholder”)

 

WHEREAS:

 

	A.  	
      the
      Optionee and the Stockholder entered into an agreement dated November 1,
      2004 wherein the Stockholder optioned to the Optionee, through April 15,
      2005, the purchase of Five Million Seven Hundred Fourteen Thousand Two
      Hundred Eighty Six (5,714,286) shares of restricted common stock of Moving
      Bytes Inc. (the “Shares”), (the “Option Agreement”),
and

 

	B.  	
      The
      Optionee has not exercised any of its rights under the Option Agreement to
      purchase the Shares, and 

 

	C.  	
      the
      Optionee and the Stockholder desire to terminate the Option Agreement,
      

 

NOW
THEREFORE, in consideration of the covenants and agreements herein and the
payment of $1 made by each party to the other, and other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each
party, the parties agree as follows:

 

	1)  	
      Termination
      of Option Agreement.

 

	a)  	
      Upon
      the terms and subject to the conditions set forth herein, the Optionee and
      the Stockholder hereby agree to terminate the Option Agreement,
      and

 

	b)  	
      As
      of the Effective Date of this Agreement neither the Optionee nor the
      Stockholder have any further obligation to the other party under the
      Option Agreement. Optionee hereby irrevocably releases and waives all
      rights to any and all of the interest in the Option Agreement, whether
      tangible or intangible, including, but not limited to, its rights to
      purchase restricted common stock from Stockholder. Optionee further agrees
      and acknowledges that to the extent the Option Agreement provided Optionee
      with any rights whatsoever, those rights are hereby waived and
      extinguished

 

	2)  	
      Miscellaneous.

 

	a)  	
      If
      one or more of the provisions contained herein shall for any reason be
      held to be invalid, illegal or unenforceable in any respect, such
      invalidity, illegality or unenforceability shall not affect any other
      provisions hereof, and this Agreement shall be construed as if such
      invalid, illegal or unenforceable provision had never been contained
      herein.

 

	b)  	
      Waiver
      of any default shall not constitute waiver of any other or subsequent
      default.

 

	c)  	
      Except
      as otherwise expressly set forth herein, any notice, request or other
      communication required or permitted hereunder shall be in writing and
      shall be deemed to have been duly given if personally delivered or if
      faxed with confirmation of receipt by telephone or if mailed be registered
      or certified mail or by courier, to the respective the addresses of the
      parties as set for the hereinabove. Any party hereto may by notice so
      given change its address for future notice hereunder. Notice shall
      conclusively be deemed to have been given when personally delivered, faxed
      or when deposited in the mail in the manner set forth above and shall be
      deemed to have been received when
delivered.

 

	d)  	
      This
      Agreement may be executed in one or more counterparts and by facsimile,
      all of which shall be deemed one and the same
agreement.

 

	e)  	
      No
      amendment to this Agreement will be valid or binding unless set forth in
      writing and duly executed by all of the parties hereto. No waiver of any
      breach of any provision of this Agreement will be effective or binding
      unless made in writing and signed by the party purporting to give the same
      and, unless otherwise provided in the written waiver, will be limited to
      the specific breach waived.

 

	f)  	
      The
      division of this Agreement into Articles and Sections and the insertion of
      headings are for the convenience of reference only and will not affect the
      construction or interpretation of this
Agreement.

 

	g)  	
      This
      agreement shall be construed, enforced, and administered in accordance
      with the laws of the State of California, under the jurisdiction of the
      State of California, without giving effect to any provision thereof that
      would compel the application of the substantive laws of any other
      jurisdiction and without regard to the conflicts of law provisions.
      

 

	h)  	
      This
      Agreement constitutes the entire agreement between the parties with
      respect to the subject matter hereof and cancels and supersedes any prior
      understandings and agreements between the parties. There are no
      representations, warranties, forms, conditions, undertakings or collateral
      agreements, express, implied or statutory between the parties other than
      as expressly set forth in this Agreement.

 

IN
WITNESS WHEREOF, this Option Agreement has been executed by the parties as of
the date first above written.

 

Innerloop
Mobile Communications, A.S. 

 

/s/
Paul Ektvedt

Paul
Ektvedt

Director

 

/s/
Morton Kopke 

Morton
Kopke 

Director

 

/s/ J.
Erik Mustad   

J. Erik
Mustad

 

EXHIBIT
B

 

SMITH
DIRECTOR’S OPTION TERMINATION AGREEMENT 

 

THIS
document sets forth an agreement made and entered into effective as of March 15,
2005 (the “Effective Date”) by and between,

 

Innerloop
Mobile Communications, A.S., a company duly incorporated in Norway of Martin
Linges Vei #17 (iti.t.fornebu inkubatur), 1367 Snaroya, Norway (“Optionee”), and

 

Mark
Smith, an individual of 220 S. Rock Blvd., Suite 9, Reno, Nevada 89502 USA
(“Stockholder”)

 

WHEREAS:

 

	A.  	
      the
      Optionee and the Stockholder entered into an agreement dated November 1,
      2004 wherein the Stockholder optioned to the Optionee, through April 15,
      2005, the purchase of Three Million Five Hundred Seventy One Thousand Four
      Hundred Twenty Eight (3,571,428) shares of restricted common stock of
      Moving Bytes Inc. (the “Shares”), (the “Option Agreement”),
      and

 

	B.  	
      The
      Optionee has not exercised any of its rights under the Option Agreement to
      purchase the Shares, and 

 

	C.  	
      the
      Optionee and the Stockholder desire to terminate the Option Agreement,
      

 

NOW
THEREFORE, in consideration of the covenants and agreements herein and the
payment of $1 made by each party to the other, and other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each
party, the parties agree as follows:

 

	1)  	
      Termination
      of Option Agreement.

 

	a)  	
      Upon
      the terms and subject to the conditions set forth herein, the Optionee and
      the Stockholder hereby agree to terminate the Option Agreement,
      and

 

	b)  	
      As
      of the Effective Date of this Agreement neither the Optionee nor the
      Stockholder have any further obligation to the other party under the
      Option Agreement. Optionee hereby irrevocably releases and waives all
      rights to any and all of the interest in the Option Agreement, whether
      tangible or intangible, including but not limited to, its rights to
      purchase restricted common stock from Stockholder. Optionee further agrees
      and acknowledges that to the extent the Option Agreement provided Optionee
      with any rights whatsoever, those rights are hereby waived and
      extinguished

 

	2)  	
      Miscellaneous.

 

	a)  	
      If
      one or more of the provisions contained herein shall for any reason be
      held to be invalid, illegal or unenforceable in any respect, such
      invalidity, illegality or unenforceability shall not affect any other
      provisions hereof, and this Agreement shall be construed as if such
      invalid, illegal or unenforceable provision had never been contained
      herein.

 

	b)  	
      Waiver
      of any default shall not constitute waiver of any other or subsequent
      default.

 

	c)  	
      Except
      as otherwise expressly set forth herein, any notice, request or other
      communication required or permitted hereunder shall be in writing and
      shall be deemed to have been duly given if personally delivered or if
      faxed with confirmation of receipt by telephone or if mailed be registered
      or certified mail or by courier, to the respective the addresses of the
      parties as set for the hereinabove. Any party hereto may by notice so
      given change its address for future notice hereunder. Notice shall
      conclusively be deemed to have been given when personally delivered, faxed
      or when deposited in the mail in the manner set forth above and shall be
      deemed to have been received when
delivered.

 

	d)  	
      This
      Agreement may be executed in one or more counterparts and by facsimile,
      all of which shall be deemed one and the same
agreement.

 

	e)  	
      No
      amendment to this Agreement will be valid or binding unless set forth in
      writing and duly executed by all of the parties hereto. No waiver of any
      breach of any provision of this Agreement will be effective or binding
      unless made in writing and signed by the party purporting to give the same
      and, unless otherwise provided in the written waiver, will be limited to
      the specific breach waived.

 

	f)  	
      The
      division of this Agreement into Articles and Sections and the insertion of
      headings are for the convenience of reference only and will not affect the
      construction or interpretation of this
Agreement.

 

	g)  	
      This
      agreement shall be construed, enforced, and administered in accordance
      with the laws of the State of California, under the jurisdiction of the
      State of California, without giving effect to any provision thereof that
      would compel the application of the substantive laws of any other
      jurisdiction and without regard to the conflicts of law provisions.
      

 

	h)  	
      This
      Agreement constitutes the entire agreement between the parties with
      respect to the subject matter hereof and cancels and supersedes any prior
      understandings and agreements between the parties. There are no
      representations, warranties, forms, conditions, undertakings or collateral
      agreements, express, implied or statutory between the parties other than
      as expressly set forth in this Agreement.

 

IN
WITNESS WHEREOF, this Option Agreement has been executed by the parties as of
the date first above written.

 

Innerloop
Mobile Communications, A.S. 

 

/s/
Paul Ektvedt

Paul
Ektvedt

Director

 

/s/
Morton Kopke 

Morton
Kopke 

Director

 

/s/
Mark Smith   

Mark
Smith

 

EXHIBIT
C

 

MILLER
DIRECTOR’S OPTION TERMINATION AGREEMENT 

 

THIS
document sets forth an agreement made and entered into effective as of March 15,
2005 (the “Effective Date”) by and between,

 

Innerloop
Mobile Communications, A.S., a company duly incorporated in Norway of Martin
Linges Vei #17 (iti.t.fornebu inkubatur), 1367 Snaroya, Norway (“Optionee”), and

 

Jim
Miller, an individual of 524 14th Street,
Manhattan Beach, California 90266 USA (“Stockholder”)

 

WHEREAS:

 

	A.  	
      Optionee
      and the Stockholder entered into an agreement dated November 1, 2004
      wherein the Stockholder optioned to the Optionee, through April 15, 2005,
      the purchase of One Million Four Hundred Twenty Eight Thousand Five
      Hundred Seventy Two (1,428,572) shares of restricted common stock of
      Moving Bytes Inc. (the “Shares”), (the “Option Agreement”),
      and

 

	B.  	
      The
      Optionee has not exercised any of its rights under the Option Agreement to
      purchase the Shares, and 

 

	C.  	
      the
      Optionee and the Stockholder desire to terminate the Option Agreement,
      

 

NOW
THEREFORE, in consideration of the covenants and agreements herein and the
payment of $1 made by each party to the other, and other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each
party, the parties agree as follows:

 

	1)  	
      Termination
      of Option Agreement.

 

	a)  	
      Upon
      the terms and subject to the conditions set forth herein, the Optionee and
      the Stockholder hereby agree to terminate the Option Agreement,
      and

 

	b)  	
      As
      of the Effective Date of this Agreement neither the Optionee nor the
      Stockholder have any further obligation to the other party under the
      Option Agreement. Optionee hereby irrevocably releases and waives all
      rights to any and all of the interest in the Option Agreement, whether
      tangible or intangible, including but not limited to, its rights to
      purchase restricted common stock from Stockholder. Optionee further agrees
      and acknowledges that to the extent the Option Agreement provided Optionee
      with any rights whatsoever, those rights are hereby waived and
      extinguished

 

	2)  	
      Miscellaneous.

 

	a)  	
      If
      one or more of the provisions contained herein shall for any reason be
      held to be invalid, illegal or unenforceable in any respect, such
      invalidity, illegality or unenforceability shall not affect any other
      provisions hereof, and this Agreement shall be construed as if such
      invalid, illegal or unenforceable provision had never been contained
      herein.

 

	b)  	
      Waiver
      of any default shall not constitute waiver of any other or subsequent
      default.

 

	c)  	
      Except
      as otherwise expressly set forth herein, any notice, request or other
      communication required or permitted hereunder shall be in writing and
      shall be deemed to have been duly given if personally delivered or if
      faxed with confirmation of receipt by telephone or if mailed be registered
      or certified mail or by courier, to the respective the addresses of the
      parties as set for the hereinabove. Any party hereto may by notice so
      given change its address for future notice hereunder. Notice shall
      conclusively be deemed to have been given when personally delivered, faxed
      or when deposited in the mail in the manner set forth above and shall be
      deemed to have been received when
delivered.

 

	d)  	
      This
      Agreement may be executed in one or more counterparts and by facsimile,
      all of which shall be deemed one and the same
agreement.

 

	e)  	
      No
      amendment to this Agreement will be valid or binding unless set forth in
      writing and duly executed by all of the parties hereto. No waiver of any
      breach of any provision of this Agreement will be effective or binding
      unless made in writing and signed by the party purporting to give the same
      and, unless otherwise provided in the written waiver, will be limited to
      the specific breach waived.

 

	f)  	
      The
      division of this Agreement into Articles and Sections and the insertion of
      headings are for the convenience of reference only and will not affect the
      construction or interpretation of this
Agreement.

 

	g)  	
      This
      agreement shall be construed, enforced, and administered in accordance
      with the laws of the State of California, under the jurisdiction of the
      State of California, without giving effect to any provision thereof that
      would compel the application of the substantive laws of any other
      jurisdiction and without regard to the conflicts of law provisions.
      

 

	h)  	
      This
      Agreement constitutes the entire agreement between the parties with
      respect to the subject matter hereof and cancels and supersedes any prior
      understandings and agreements between the parties. There are no
      representations, warranties, forms, conditions, undertakings or collateral
      agreements, express, implied or statutory between the parties other than
      as expressly set forth in this Agreement.

 

IN
WITNESS WHEREOF, this Option Agreement has been executed by the parties as of
the date first above written.

 

Innerloop
Mobile Communications, A.S.

 

/s/
Paul Ektvedt

Paul
Ektvedt

Director

 

/s/
Morton Kopke 

Morton
Kopke 

Director

 

/s/
Jim Miller    

Jim
MillerCONSULTANT AGREEMENT

      THIS AGREEMENT is made by and between Xact Aid., a Nevada corporation
("Company") located at 5655 Lindero Canyon Road, Suite 106, Westlake Village, CA
91362 and Fred De Luca ("Consultant") located at 4632 Lemona Ave., Sherman Oaks,
CA 91403.

      In consideration of the mutual covenants and promises contained in this
Agreement as set forth below, the Company and the Consultant agree as follows:

      Section 1. Description of Work. The services provided by the Consultant
shall be provided on an as-needed basis. Consultant's services shall be
performed exclusively by Consultant, who shall report directly to the Board of
Directors of the Company and shall include advisory services related to legal
matters and contract administration, as may be requested by the Company.

      Section 2. Term. This Agreement will become effective on October 15, 2004
and will continue for a period of Thirty Six (36) months unless terminated as
hereinafter set forth.

      Section 3. Compensation. The Company shall compensate the Consultant as
follows:

      (a)   Cash:

                  The Company shall pay the Consultant Five Thousand Dollars
            ($5,000) per month ("Compensation"), payable in installments of
            $2,500 on the fifteenth (15th) and thirtieth (30th) day of each
            month ("Installments") commencing October 15, 2004. On or after
            February 1, 2005, upon mutual consent of Consultant and Company, the
            Compensation may be paid in full or in part in the form of net
            equivalent non-restricted unrestricted (S-8) shares of the Company's
            common stock, previously registered pursuant to the Company's
            Incentive Equity Stock Plan (the "Shares"). In order to determine
            the number of Shares, the conversion price will be equal to Eighty
            percent (80%) of the lowest five day average day-trading price for
            the trailing twenty days preceding the date such Compensation
            payment is due. The above consent shall apply to each of the
            Installments separately, and if Consultant does not consent to
            receiving Payment in Shares, it shall in no way effect Consultant's
            right to receive such Installment in cash; and

      (b)   Warrant Issuance:

                  Warrants: Effective upon the date of this Agreement, the
            Company shall issue and deliver to Consultant a five-year Warrant to
            purchase 150,000 shares (the "Warrant") of the Company's common
            stock (the "Warrant Shares"), which shall include provisions for
            cashless exercise. The exercise price for the Warrant Shares shall
            be $0.25 per share ("Exercise Price"). The Warrants shall be issued
            and shall fully vest on the date of issuance. The number and
            character of such Warrant Shares and the related Exercise Price are
            subject to adjustment as provided therein. A form of the Warrant is
            attached hereto as Exhibit A.

      Section 4. Incentive Stock Options. The Company may issue incentive stock
options to Consultant pursuant to the Company's Incentive Equity Stock Plan at
the discretion of, and in an amount to be determined by, the Board of Directors
("Incentive Stock Options"). The Incentive Stock Options, if any, shall be
payable annually no later than the fifteenth (15th) day of the third month
following the end of the Company's fiscal year fair market price of the
Company's stock on the last day of the Company's fiscal year. The Incentive
Stock Options shall vest immediately and shall terminate five years from the
date of grant. Consultant may exercise the Incentive Stock Options, at its sole
and absolute discretion, by providing the Company with written notice
accompanied by (1) cash or a cashier's check in an amount equal to the product
of the Incentive Stock Option exercise price and the number of shares Consultant
desires to purchase pursuant to this provision; or (2) by a cashless exercise
whereby Consultant receives the net amount of shares after deducting the value
of the exercise price.

                                       1
<PAGE>

      Section 5. Expenses. The Company shall reimburse Consultant for cellular
telephone charges incurred by the Consultant directly related to the performance
of services under this Agreement. In addition, commencing with the date of this
Agreement, Company shall reimburse Consultant for certain business expenses,
including but not limited to airfare, rental cars, lodging and meals incurred by
Consultant directly related to the performance of services under this Agreement,
which shall require the prior approval of Company.

      Payment of all expenses shall be made 15 days from the date of receipt by
the Company of the Consultant's expense report, including appropriate supporting
receipts itemizing such expenses.

      Section 6. Place of Work. The Consultant's services will be rendered at
the corporate office of the Company, and/or at Consultant's office and from time
to time at such other places as designated by the Company.

      Section 7. Status of Consultant. This Agreement calls for the performance
of the services of the Consultant as an independent contractor and the
Consultant will not be considered an employee of the Company for any purpose
whatsoever.

      Section 8. Time Devoted to Work. The Consultant will have complete control
over the manner and disposition of the services provided and the time spent in
the performance of the services. The Company will rely upon the experience and
discretion of the Consultant to devote sufficient time and energy necessary to
fulfill the purpose of this Agreement.

      Section 9. Confidentiality. The Consultant agrees that (a) all knowledge
and information that the Consultant may receive from the Company in any manner
whatsoever relating to inventions, products, processes, machinery, apparatus,
prices, customer lists, discounts, costs, business affairs, future plans, or
technical data that belong to the Company and (b) all information provided by
the Consultant to the Company in reports, together with any other information
acquired as a direct result of Agreement, shall for all time and for all
purposes be regarded by the Consultant as strictly confidential and held by the
Consultant in confidence and solely for the Company's benefit and use. Such
knowledge and information shall not be used by the Consultant nor disclosed by
the Consultant to any party whatsoever except to the Company or with the
Company's prior written permission.

      Section 10. Consultant Representations. The Consultant represents and
warrants that the duty to perform the services required under this Agreement
without violation of any obligations to others, and that the Consultant has the
duty to disclose to the Company all information transmitted to the Consultant in
the performance of services under this Agreement. The Consultant agrees that any
information submitted to the Company, whether patentable or not, may be utilized
fully and freely by the Company.

                                       2
<PAGE>

      Section 11. Injuries to Consultant. The Consultant waives any rights to
recover from the Company for any injuries that the Consultant may sustain while
performing services under this Agreement if such injuries are a result of the
Consultant's own negligence.

      Section 12. Indemnification. The Consultant shall be responsible for, and
shall reimburse the Company for, all loss or damage to the Company's property,
property of third parties, or personal injury caused by the acts or omissions of
the Consultant, its agents, or employees during the term of this Agreement. The
Company shall indemnify Consultant as provided in the Delaware General
Corporations Code, Company's Charter or Bylaws in effect at the commencement of
this Agreement. The scope of indemnification to which Consultant is entitled
shall not be diminished, but may be expanded by the Company, by amendment of the
Company's Bylaws, Articles of Incorporation or otherwise.

      Section 13. Termination of Agreement. Either party may terminate this
Agreement upon a breach of a substantial nature of any provision of this
Agreement.

Upon termination of this Agreement, the Consultant shall return to the Company
all written information, drawings, models, and other materials or files supplied
to the Consultant or created by the Consultant at the expense of the Company.

      Section 14. Effect of Partial Invalidity. The invalidity of any portion of
this Agreement shall not affect the validity of any other provision. In the
event that any provision of this Agreement is held to be invalid, the parties
agree that the remaining provisions shall remain in full force and effect.

      Section 15. Entire Agreement. This Agreement contains the complete
Agreement between the parties and shall supersede all other agreements, either
oral or written, between the parties. The parties stipulate that neither of them
has made any representations except as are specifically set forth in this
Agreement and each of the parties acknowledges that they have relied on their
own judgment in entering into this Agreement.

      Section 16. Assignment. Neither party to this Agreement may assign their
rights under this Agreement unless the other party so consents to the assignment
in writing.

      Section 17. Notices. All notices, requests, demands, and other
communications shall be in writing and shall be given by registered or certified
mail, postage prepaid, to the addresses shown on the first page of this
Agreement, or to such subsequent addresses as the parties shall so designate in
writing.

      Section 18. Attorney's Fees. If any action at law or in equity, including
and action for declaratory relief, is brought to enforce or interpret the
provisions of this Agreement, the prevailing party will be entitled to
reasonable attorney's fees as determined by the court in the same action.

      Section 19. Amendment. Any modifications, amendment or change of this
Agreement will be effective only if it is in a writing signed by both parties.

      Section 20. Governing Law. This Agreement, and all transactions
contemplated by this Agreement, shall be governed by, construed, and enforced in
accordance with the laws of the State of California.

      Section 21. Headings. The titles to the paragraphs of this Agreement are
solely for the convenience of the parties and shall not affect in any way the
meaning 01 interpretation of this Agreement.

                                       3
<PAGE>

                             SIGNATURE PAGE FOLLOWS

IN WITNESS WHEREOF, the parties have executed this Agreement on this 15th day of
October, 2004.

CONSULTANT:                              COMPANY:

Fred De Luca                             Xact Aid, Inc.

BY:________________________________      BY:____________________________________
   Fred De Luca                             Federico G. Cabo, C.E.O.

                                       4
<PAGE>

                                    EXHIBIT A

THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO XACT AID, INC. INC. THAT SUCH REGISTRATION IS
NOT REQUIRED.

                                Right to Purchase 150,000 Shares of Common Stock
                       Xact Aid, Inc. (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

Issue Date:  October 15, 2004

      XACT AID, INC., a corporation organized under the laws of the State of
Delaware (the "Company"), hereby certifies that, for value received, FRED
DELUCA, or assigns (the "Holder"), is entitled, subject to the terms set forth
below, to purchase from the Company from and after the Issue Date of this
Warrant and at any time or from time to time before 5:00 p.m., New York time,
through five (5) years after such date (the "Expiration Date"), up to 150,000
fully paid and nonassessable shares of Common Stock (as hereinafter defined), no
par value, of the Company, at the Exercise Price (as defined below). The number
and character of such shares of Common Stock and the Exercise Price are subject
to adjustment as provided herein.

      As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:

      (a) The term "Company" shall include Xact Aid, Inc. and any corporation
which shall succeed or assume the obligations of Xacrt Aid, Inc. hereunder.

      (b) The term "Common Stock" includes (a) the Company's Common Stock, par
value $.001 per share, and (b) any other securities into which or for which any
of the securities described in (a) may be converted or exchanged pursuant to a
plan of recapitalization, reorganization, merger, sale of assets or otherwise.

                                       5
<PAGE>

      (c) The term "Other Securities" refers to any stock (other than Common
Stock) and other securities of the Company or any other person (corporate or
otherwise) which the holder of the Warrant at any time shall be entitled to
receive, or shall have received, on the exercise of the Warrant, in lieu of or
in addition to Common Stock, or which at any time shall be issuable or shall
have been issued in exchange for or in replacement of Common Stock or Other
Securities pursuant to Section 4 or otherwise.

      (d) The term "Exercise Price" shall be $0.25 per share.

      1.    Exercise of Warrant.

                  1.1. Number of Shares Issuable upon Exercise. From and after
            the date hereof through and including the Expiration Date, the
            Holder shall be entitled to receive, upon exercise of this Warrant
            in whole or in part, by delivery of an original or fax copy of the
            exercise notice attached hereto as Exhibit A (the "Exercise
            Notice"), shares of Common Stock of the Company, subject to
            adjustment pursuant to Section 4.

                  1.2. Fair Market Value. Fair Market Value of a share of Common
            Stock as of a particular date (the "Determination Date") shall mean:

                        (a) If the Company's Common Stock is traded on an
                  exchange or is quoted on the National Association of
                  Securities Dealers, Inc. Automated Quotation ("NASDAQ")
                  National Market or the NASDAQ SmallCap Market, then the
                  closing or last sale price, respectively, reported for the
                  last business day immediately preceding the Determination
                  Date.

                        (b) If the Company's Common Stock is not traded on an
                  exchange or on the NASDAQ National Market or the NASDAQ
                  SmallCap Market but is traded on the NASD OTC Bulletin Board,
                  then the mean of the average of the closing bid and asked
                  prices reported for the last business day immediately
                  preceding the Determination Date.

                        (c) Except as provided in clause (d) below, if the
                  Company's Common Stock is not publicly traded, then as the
                  Holder and the Company agree or in the absence of agreement by
                  arbitration in accordance with the rules then in effect of the
                  American Arbitration Association, before a single arbitrator
                  to be chosen from a panel of persons qualified by education
                  and training to pass on the matter to be decided.

                                       6
<PAGE>

                        (d) If the Determination Date is the date of a
                  liquidation, dissolution or winding up, or any event deemed to
                  be a liquidation, dissolution or winding up pursuant to the
                  Company's charter, then all amounts to be payable per share to
                  holders of the Common Stock pursuant to the charter in the
                  event of such liquidation, dissolution or winding up, plus all
                  other amounts to be payable per share in respect of the Common
                  Stock in liquidation under the charter, assuming for the
                  purposes of this clause (d) that all of the shares of Common
                  Stock then issuable upon exercise of the Warrant are
                  outstanding at the Determination Date.

      2.    Procedure for Exercise.

            2.1 Delivery of Stock Certificates, etc. on Exercise. The Company
      agrees that the shares of Common Stock purchased upon exercise of this
      Warrant shall be deemed to be issued to the Holder as the record owner of
      such shares as of the close of business on the date on which this Warrant
      shall have been surrendered and payment made for such shares as aforesaid.
      As soon as practicable after the exercise of this Warrant in full or in
      part, and in any event within 3 business days thereafter, the Company at
      its expense (including the payment by it of any applicable issue taxes)
      will cause to be issued in the name of and delivered to the Holder, or as
      such Holder (upon payment by such holder of any applicable transfer taxes)
      may direct in compliance with applicable securities laws, a certificate or
      certificates for the number of duly and validly issued, fully paid and
      nonassessable shares of Common Stock (or Other Securities) to which such
      Holder shall be entitled on such exercise, plus, in lieu of any fractional
      share to which such holder would otherwise be entitled, cash equal to such
      fraction multiplied by the then Fair Market Value of one full share,
      together with any other stock or other securities and property (including
      cash, where applicable) to which such Holder is entitled upon such
      exercise pursuant to Section 1 or otherwise.

            2.2. Exercise.

                        (a) Payment may be made either in (i) cash or by
                  certified or official bank check payable to the order of the
                  Company equal to the applicable aggregate Exercise Price, (ii)
                  by delivery of the Warrant, Common Stock and/or Common Stock
                  receivable upon exercise of the Warrant in accordance with
                  Section (b) below, or (iii) by a combination of any of the
                  foregoing methods, for the number of Common Shares specified
                  in such form (as such exercise number shall be adjusted to
                  reflect any adjustment in the total number of shares of Common
                  Stock issuable to the holder per the terms of this Warrant)
                  and the Holder shall thereupon be entitled to receive the
                  number of duly authorized, validly issued, fully-paid and
                  non-assessable shares of Common Stock (or Other Securities)
                  determined as provided herein.

                                       7
<PAGE>

                        (b) Notwithstanding any provisions herein to the
                  contrary, if the Fair Market Value of one share of Common
                  Stock is greater than the Exercise Price (at the date of
                  calculation as set forth below), in lieu of exercising this
                  Warrant for cash, the Holder may elect to receive shares equal
                  to the value (as determined below) of this Warrant (or the
                  portion thereof being exercised) by surrender of this Warrant
                  at the principal office of the Company together with the
                  properly endorsed Exercise Notice in which event the Company
                  shall issue to the Holder a number of shares of Common Stock
                  computed using the following formula:

                                            X=Y (A-B)
                                                 ---

                         A

                        Where X= the number of shares of Common Stock to be
                        issued to the Holder

                        Y=    the number of shares of Common Stock purchasable
                              under the Warrant or, if only a portion of the
                              Warrant is being exercised, the portion of the
                              Warrant being exercised (at the date of such
                              calculation)

                        A=    the Fair Market Value of one share of the
                              Company's Common Stock (at the date of such
                              calculation)

                        B=    Exercise Price (as adjusted to the date of such
                              calculation)

      3.    Adjustment for Reorganization, Consolidation, Merger, etc.

            3.1. Reorganization, Consolidation, Merger, etc. In case at any time
      or from time to time, the Company shall (a) effect a reorganization, (b)
      consolidate with or merge into any other person, or (c) transfer all or
      substantially all of its properties or assets to any other person under
      any plan or arrangement contemplating the dissolution of the Company,
      then, in each such case, as a condition to the consummation of such a
      transaction, proper and adequate provision shall be made by the Company
      whereby the Holder of this Warrant, on the exercise hereof as provided in
      Section 1 at any time after the consummation of such reorganization,
      consolidation or merger or the effective date of such dissolution, as the
      case may be, shall receive, in lieu of the Common Stock (or Other
      Securities) issuable on such exercise prior to such consummation or such
      effective date, the stock and other securities and property (including
      cash) to which such Holder would have been entitled upon such consummation
      or in connection with such dissolution, as the case may be, if such Holder
      had so exercised this Warrant, immediately prior thereto, all subject to
      further adjustment thereafter as provided in Section 4.

                                       8
<PAGE>

            3.2. Dissolution. In the event of any dissolution of the Company
      following the transfer of all or substantially all of its properties or
      assets, the Company, prior to such dissolution, shall at its expense
      deliver or cause to be delivered the stock and other securities and
      property (including cash, where applicable) receivable by the Holder of
      the Warrant after the effective date of such dissolution pursuant to
      Section 3.1 to a bank or trust company having its principal office in New
      York, NY, as trustee for the Holder of the Warrant.

            3.3. Continuation of Terms. Upon any reorganization, consolidation,
      merger or transfer (and any dissolution following any transfer) referred
      to in this Section 3, this Warrant shall continue in full force and effect
      and the terms hereof shall be applicable to the shares of stock and other
      securities and property receivable on the exercise of this Warrant after
      the consummation of such reorganization, consolidation or merger or the
      effective date of dissolution following any such transfer, as the case may
      be, and shall be binding upon the issuer of any such stock or other
      securities, including, in the case of any such transfer, the person
      acquiring all or substantially all of the properties or assets of the
      Company, whether or not such person shall have expressly assumed the terms
      of this Warrant as provided in Section 4. In the event this Warrant does
      not continue in full force and effect after the consummation of the
      transactions described in this Section 3, then only in such event will the
      Company's securities and property (including cash, where applicable)
      receivable by the holders of the Warrant be delivered to the Trustee as
      contemplated by Section 3.2.

            4. Extraordinary Events Regarding Common Stock. In the event that
      the Company shall (a) issue additional shares of the Common Stock as a
      dividend or other distribution on outstanding Common Stock, (b) subdivide
      its outstanding shares of Common Stock, or (c) combine its outstanding
      shares of the Common Stock into a smaller number of shares of the Common
      Stock, then, in each such event, the Exercise Price shall, simultaneously
      with the happening of such event, be adjusted by multiplying the then
      Exercise Price by a fraction, the numerator of which shall be the number
      of shares of Common Stock outstanding immediately prior to such event and
      the denominator of which shall be the number of shares of Common Stock
      outstanding immediately after such event, and the product so obtained
      shall thereafter be the Exercise Price then in effect. The Exercise Price,
      as so adjusted, shall be readjusted in the same manner upon the happening
      of any successive event or events described herein in this Section 4. The
      number of shares of Common Stock that the holder of this Warrant shall
      thereafter, on the exercise hereof as provided in Section 1, be entitled
      to receive shall be increased to a number determined by multiplying the
      number of shares of Common Stock that would otherwise (but for the
      provisions of this Section 4) be issuable on such exercise by a fraction
      of which (a) the numerator is the Exercise Price that would otherwise (but
      for the provisions of this Section 4) be in effect, and (b) the
      denominator is the Exercise Price in effect on the date of such exercise.

                                       9
<PAGE>

            5. Certificate as to Adjustments. In each case of any adjustment or
      readjustment in the shares of Common Stock (or Other Securities) issuable
      on the exercise of the Warrant, the Company at its expense will promptly
      cause its Chief Financial Officer or other appropriate designee to compute
      such adjustment or readjustment in accordance with the terms of the
      Warrant and prepare a certificate setting forth such adjustment or
      readjustment and showing in detail the facts upon which such adjustment or
      readjustment is based, including a statement of (a) the consideration
      received or receivable by the Company for any additional shares of Common
      Stock (or Other Securities) issued or sold or deemed to have been issued
      or sold, (b) the number of shares of Common Stock (or Other Securities)
      outstanding or deemed to be outstanding, and (c) the Exercise Price and
      the number of shares of Common Stock to be received upon exercise of this
      Warrant, in effect immediately prior to such adjustment or readjustment
      and as adjusted or readjusted as provided in this Warrant. The Company
      will forthwith mail a copy of each such certificate to the holder of the
      Warrant and any Warrant agent of the Company (appointed pursuant to
      Section 11 hereof).

            6. Reservation of Stock, etc. Issuable on Exercise of Warrant. The
      Company will at all times reserve and keep available, solely for issuance
      and delivery on the exercise of the Warrant, shares of Common Stock (or
      Other Securities) from time to time issuable on the exercise of the
      Warrant.

            7. Assignment; Exchange of Warrant. Subject to compliance with
      applicable securities laws, this Warrant, and the rights evidenced hereby,
      may be transferred by any registered holder hereof (a "Transferor") with
      respect to any or all of the Shares. On the surrender for exchange of this
      Warrant, with the Transferor's endorsement in the form of Exhibit B
      attached hereto (the "Transferor Endorsement Form") and together with
      evidence reasonably satisfactory to the Company demonstrating compliance
      with applicable securities laws, which shall include, without limitation,
      a legal opinion from the Transferor's counsel that such transfer is exempt
      from the registration requirements of applicable securities laws, the
      Company at its expense but with payment by the Transferor of any
      applicable transfer taxes) will issue and deliver to or on the order of
      the Transferor thereof a new Warrant of like tenor, in the name of the
      Transferor and/or the transferee(s) specified in such Transferor
      Endorsement Form (each a "Transferee"), calling in the aggregate on the
      face or faces thereof for the number of shares of Common Stock called for
      on the face or faces of the Warrant so surrendered by the Transferor.

                                       10
<PAGE>

            8. Replacement of Warrant. On receipt of evidence reasonably
      satisfactory to the Company of the loss, theft, destruction or mutilation
      of this Warrant and, in the case of any such loss, theft or destruction of
      this Warrant, on delivery of an indemnity agreement or security reasonably
      satisfactory in form and amount to the Company or, in the case of any such
      mutilation, on surrender and cancellation of this Warrant, the Company at
      its expense will execute and deliver, in lieu thereof, a new Warrant of
      like tenor.

            9. Warrant Agent. The Company may, by written notice to the each
      holder of the Warrant, appoint an agent for the purpose of issuing Common
      Stock (or Other Securities) on the exercise of this Warrant pursuant to
      Section 1, exchanging this Warrant pursuant to Section 7, and replacing
      this Warrant pursuant to Section 8, or any of the foregoing, and
      thereafter any such issuance, exchange or replacement, as the case may be,
      shall be made at such office by such agent.

            10. Transfer on the Company's Books. Until this Warrant is
      transferred on the books of the Company, the Company may treat the
      registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary.

            11. Notices, etc. All notices and other communications from the
      Company to the Holder of this Warrant shall be mailed by first class
      registered or certified mail, postage prepaid, at such address as may have
      been furnished to the Company in writing by such holder or, until any such
      Holder furnishes to the Company an address, then to, and at the address
      of, the last Holder of this Warrant who has so furnished an address to the
      Company.

                                       11
<PAGE>

            12. Voluntary Adjustment by the Company. The Company may at any time
      during the term of this Warrant reduce the then current Exercise Price to
      any amount and for any period of time deemed appropriate by the Board of
      Directors of the Company.

            13. Miscellaneous. This Warrant and any term hereof may be changed,
      waived, discharged or terminated only by an instrument in writing signed
      by the party against which enforcement of such change, waiver, discharge
      or termination is sought. This Warrant shall be governed by and construed
      in accordance with the laws of State of California without regard to
      principles of conflicts of laws. Any action brought concerning the
      transactions contemplated by this Warrant shall be brought only in the
      state courts of California or in the federal courts located in the state
      of Calfiornia; provided, however, that the Holder may choose to waive this
      provision and bring an action outside the state of California. The
      individuals executing this Warrant on behalf of the Company agree to
      submit to the jurisdiction of such courts and waive trial by jury. The
      prevailing party shall be entitled to recover from the other party its
      reasonable attorney's fees and costs. In the event that any provision of
      this Warrant is invalid or unenforceable under any applicable statute or
      rule of law, then such provision shall be deemed inoperative to the extent
      that it may conflict therewith and shall be deemed modified to conform
      with such statute or rule of law. Any such provision which may prove
      invalid or unenforceable under any law shall not affect the validity or
      enforceability of any other provision of this Warrant. The headings in
      this Warrant are for purposes of reference only, and shall not limit or
      otherwise affect any of the terms hereof. The invalidity or
      unenforceability of any provision hereof shall in no way affect the
      validity or enforceability of any other provision. The Company
      acknowledges that legal counsel participated in the preparation of this
      Warrant and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be
      applied in the interpretation of this Warrant to favor any party against
      the other party.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

      IN WITNESS WHEREOF, the Company has executed this Warrant under seal as of
the date first written above.

                                         XACT AID, INC.

                                         By:____________________________________

Witness:

-----------------------------------

                                       13
<PAGE>

                                                                       Exhibit A

                              FORM OF SUBSCRIPTION

                   (To be signed only on exercise of Warrant)

      TO: Xact Aid, Inc.

      The undersigned, pursuant to the provisions set forth in the attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

      ___ ________ shares of the Common Stock covered by such Warrant; or

      ___ the maximum number of shares of Common Stock covered by such Warrant
pursuant to the cashless exercise procedure set forth in Section 2.

      The undersigned herewith makes payment of the full Exercise Price for such
shares at the price per share provided for in such Warrant, which is
$___________. Such payment takes the form of (check applicable box or boxes):

                                       14
<PAGE>

      ___ $__________ in lawful money of the United States; and/or

      ___ the cancellation of such portion of the attached Warrant as is
exercisable for a total of _______ shares of Common Stock (using a Fair Market
Value of $_______ per share for purposes of this calculation); and/or

      ___ the cancellation of such number of shares of Common Stock as is
necessary, in accordance with the formula set forth in Section 2, to exercise
this Warrant with respect to the maximum number of shares of Common Stock
purchaseable pursuant to the cashless exercise procedure set forth in Section 2.

      The undersigned requests that the certificates for such shares be issued
in the name of, and delivered to ____________________ whose address is

      The undersigned represents and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933, as amended (the "Securities Act") or pursuant to an exemption from
registration under the Securities Act.

      Dated:___________________

____________________________________
(Signature must conform to name of
holder as specified on the face of
the Warrant)

____________________________________
(Address)

                                       15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]