Document:

Exhibit 10.2

    
      

    

    Exhibit
      10.2

    

    ASSET
      PURCHASE AGREEMENT

    

    This
      ASSET PURCHASE AGREEMENT (this ?Agreement?) is entered into effective as of
      February 28, 2005 (the "Closing Date"), by and among CONSTELLATION BIOMETRICS
      CORPORATION, a Florida corporation, or its assigns (?Buyer?), and Biometric
      Security (PTY), LTD, (AKA Secure Biometrics or Biometrics.co.za) a South African
      Private Company Ltd (?Seller?), with reference to the following
      recitals:

    

    A.    Seller
      is
      a technology company which researches, develops and manufactures, among other
      things, high-tech, Biometrics Products (the ?Products?). Seller?s business
      shall
      be referred to herein as, the ?Business.? Seller?s principal place of business
      is located at 26A Foregate Square, Harbour Road Cape Town, 8001, South
      Africa.

    

    B.    Seller
      desires to sell to Buyer, and Buyer desires to purchase from Seller, all the
      assets used in or useful to the Business, excluding cash and accounts receivable
      and including, without limitation: all intellectual property related to the
      research, development and manufacture of Biometric Products; Seller?s
      distributor network; Seller?s names and logos; Seller?s equipment and all other
      tangible and intangible assets, on the terms and conditions set forth in this
      Agreement.

    

    C.    Buyer
      and
      Seller intend that immediately following the purchase by Buyer from Seller
      of
      substantially all of the assets of the Business, Seller will cease to operate
      the Business and that thereafter neither Seller nor its principals will compete
      with Buyer as provided in the terms and conditions set forth in this Agreement
      for a period of two years.

    

    NOW,
      THEREFORE, in consideration of the premises and the respective representations,
      warranties, covenants, agreements and conditions hereinafter set forth, and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, each of Seller and Buyer (each, a ?Party?) hereby agrees
      as
      follows:

    

    1.    Purchase
      and Sale of Assets.

    

    1.1    Sale
      and Delivery.
      Seller
      agrees to sell and deliver to Buyer, and based upon the representations and
      warranties of Seller set forth herein, Buyer agrees to purchase and accept
      from
      Seller, on the terms and subject to the conditions set forth in this Agreement,
      and for the purchase price described in Section 1.2,
      all
      right, title and interest in and to all of the assets used by or useful to
      Seller in the Business, including without limitation, those certain assets
      and
      property identified in this Section 0
      and its
      related subsections (such assets and property are hereinafter referred to as
      the
      ?Assets?). The Assets shall specifically include, but shall not be limited
      to,
      all right, title and interest in and to the following:

    

    (a)    Intellectual
      Property.
      All
      right, title and interest in and to any and all present intellectual property
      rights with respect to the Business, including, without limitation, the designs,
      formulae, know-how, trade secrets, processes, compositions, drawings,
      specifications, patterns, blueprints, plans, files, notebooks and records,
      proprietary and technical information, computer software, licenses of
      technology, and any and all other intangible personal property, together with
      all rights to and applications, licenses and franchises for, any of the
      foregoing, relating to the Business and all other intangible personal property
      used in or useful in the Business or with the Biometric Products (all written
      materials relating thereto hereinafter are referred to as the
      ?Documents?);

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (b)    Distributor
      Network.
      All
      right, title and interest in and to Seller?s distributor network;

    

    (c)    Names
      and Logos.
      All
      right, title and interest in and to the name, ?Secure Biometrics,? and all
      right, title and interest in and to any and all other names and logos created,
      developed and/or used by Seller in the Business (identified on Schedule
      1.1(a);

    

    (d)    Patent
      Application.
      All
      right, title and interest in and to any patent applications filed by Seller
      in
      connection with its products and pending in the USPTO or in the Patent Office
      of
      any other country (the ?Patent Application?);

    

    (e)    Trademarks/Trademark
      Application.
      All
      right, title and interest in and to any and all of the trademarks and service
      marks used by Seller in connection with the Business and/or its products, and
      any trademark application filed by Seller and pending with the USPTO
      or in
      the trademark office of any other country (the ?Trademark
      Application?).

    

    (f)    
Confidentiality
      Agreements.
      All
      right, title and interest in and to any confidentiality agreements regarding
      the
      Assets.

    

    (g)    Contracts.
      All
      right, title and interest in and to those certain contracts to which Seller
      is a
      party, identified on Schedule
      1.1(e);

    

    (h)    Tangible
      Business Property.
      All of
      Seller?s tangible property, including without limitation, parts, inventory,
      work
      in-process and finished goods inventory, prototypes, molds, tooling, production
      equipment, furniture, computers and software identified on Schedule
      1.1(f)
      (collectively, ?Tangible Property?).

    

    (i)    
Customer
      Lists.
      All of
      Seller?s customer lists and business contacts identified on Schedule
      1.1(g).

    

    1.2    Purchase
      Price.
      The
      purchase price to be paid for the Assets shall be Two Hundred and Fifty Thousand
      (250,000) shares of common stock of Sequiam, $100,000 in cash and a Note Payable
      for $440,000 (the ?Purchase Price?).
      The
      Purchase Price shall be paid in accordance with Section 2(d)
      below.

    

    1.3    Liabilities.
      It is
      expressly understood and agreed that Buyer shall not be liable for any of the
      obligations or liabilities of Seller of any kind or nature, including, without
      limitation, any of the following debts, duties, liabilities or obligations
      which
      arose or will arise out of the ownership or operation of the Business at any
      time or use of the Assets prior to the Closing: (i) payroll expenses or
      liabilities; (ii) any ?Tax? (as defined in Section 3.10
      below)
      whatsoever, including, without limitation, any Tax liability owed to any
      federal, regional or local government entity located therein; (iii) product
      liability; (iv) loans secured by the Assets or any portion thereof; and (v)
      liability to employees, including, without limitation, sick leave, vacation
      benefits, health care benefits, other accrued employee benefits, or employee
      liability claims.

    
      
        
        

      

      
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    1.4    Taxes.
      Any and
      all state and local property taxes and assessments imposed upon the Assets
      shall
      be prorated between Buyer and Seller as of the Closing Date. Buyer will not
      be
      responsible for any business, occupation, withholding, or similar tax, or any
      taxes of any kind related to any period before the Closing.

    

    1.5    Operations.
      Buyer
      shall not be responsible for any operating expenses of the Business at any
      time
      or of the Assets for any period before the Closing. Beginning on the Closing
      Date, Buyer shall be solely (and Seller shall not be) responsible for all
      operating expenses of the Assets.

    

    1.6    Allocation
      of the Purchase Price.
      The
      parties intend to allocate the Purchase Price among the Assets as set forth
      on
      attached Schedule
      1.6,
      and to
      abide by such allocation for all purposes including, without limitation, the
      reporting of all taxes. 

    

    1.7    Expenses.
      Except
      as otherwise expressly provided herein, the parties shall each be responsible
      for the payment of any and all of their own expenses, including, without
      limitation, the fees and expenses of counsel, accountants, and other advisors,
      arising out of or relating directly or indirectly to the transactions
      contemplated by this Agreement.

    

    2.    Closing.
      The
      purchase and sale of the Assets and the consummation of the other transactions
      contemplated by this Agreement shall be closed (the ?Closing?) as soon as all
      of
      the conditions to closing set forth in Sections 7 and 8 can be reasonably
      satisfied, but in no event beyond February 28, 2005 (the "Closing Date"). If
      all
      of the conditions to closing set forth in Sections 7
      and
8
      below
      have not been satisfied or waived on or before the Closing Date, then either
      Buyer or Seller may terminate this Agreement by written notice to the other
      party, whereupon neither party shall have any obligation to consummate the
      transactions contemplated herein. The Closing Date may be extended by agreement
      of the parties.
      The
      Closing shall be consummated electronically and telephonically.

    

    (a)    At
      the
      Closing, Seller shall deliver or cause to be delivered to Buyer the
      following:

     

    (i)    
documents
      reasonably acceptable to Buyer evidencing that Seller has the necessary
      corporate authority to enter into this Agreement and consummate the transactions
      contemplated herein, including without limitation, resolutions or minutes of
      the
      meeting of each of the Directors and Shareholders of Seller approving this
      Agreement;

    

    (ii)    
an
      original assignment in the form of attached Exhibit
      ?A?
      (the
      ?Assignment?), duly executed by Seller;

     

    (iii)    an
      original bill of sale in the form of attached Exhibit
      ?B?
      (the
      ?Bill of Sale?), duly executed by Seller;

    

    (iv)    the
      original and all copies of the Documents, the Patent Application and the
      Trademark Application if applicable;

    
      
        
        

      

      
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    (v)    
the
      originals and all copies of the Contracts identified on Schedule 1.1(e), shall
      be attached to the Assignment; and

    

    (vi)    an
      executed non-disclosure agreement and assignment of inventions in the form
      of
      attached Exhibit
      ?C?
      (the
      ?Non-Disclosure Agreement?), executed by Seller and each person that was an
      employee of Seller at any time during the thirty (30) days prior to the Closing
      Date.

    

    (b)    At
      the
      Closing, Buyer shall deliver or cause to be delivered to Seller irrevocable
      instructions (the ?Instructions?) to Sequiam?s transfer agent, duly executed
      on
      behalf of Sequiam, authorizing and instructing the transfer agent to issue
      Two
      Hundred Fifty Thousand (250,000) shares of common stock of Sequiam to Seller,
      in
      accordance with Section 2(d) below.

    

    (c)    All
      payments, documents, and instruments to be delivered on the Closing Date
      pursuant to this Agreement shall be regarded as having been delivered
      simultaneously, and no document or instrument shall be regarded as having been
      delivered until all documents and instruments to be delivered on the Closing
      Date have been delivered or delivery thereof shall have been waived by the
      party
      to whom such delivery was to be made. The Purchase Price shall be paid to Seller
      only in accordance with paragraph (d) below.

    

    (d)    Upon
      Closing, Buyer shall deliver the Instructions to Sequiam?s transfer agent,
      and
      Sequiam?s transfer agent shall issue to the Seller one share certificate for
      Two
      Hundred Fifty Thousand (250,000) shares of common stock of Sequiam within five
      (5) business days of receipt of the Instructions (the ?Certificate?). The
      Certificate shall contain the following legend: 

    

    The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended (the "ACT"), or the securities laws of any
      state, and may not be offered, sold, transferred, pledged, hypothecated or
      otherwise disposed of except pursuant to (i) an effective registration statement
      under the ACT and any applicable state laws, or valid exception thereto, (ii)
      to
      the extent applicable, in accordance with Rule 144 under the ACT (or any similar
      rule under the ACT relating to the disposition of securities), and (iii) an
      opinion of counsel, reasonably satisfactory to counsel to the issuer, that
      an
      exemption from registration under the ACT and applicable state law is available
      and such transfer is made in accordance with Rule 144.

    

    In
      the
      event that from the period beginning on the Closing Date and continuing for
      a
      period of twelve (12) months thereafter, Maker shall file a registration
      statement with the SEC registering the sale or resale of any of Maker's debt
      or
      equity securities.

    

    It
      shall
      be a condition precedent to the obligations of Maker to take any action pursuant
      to this Section that the Holder shall furnish to Maker such information
      regarding itself, the securities held by it, and the intended method of
      disposition of such securities as shall be required to effect the registration
      of Holder?s common stock.

    

    Maker
      shall bear and pay all expenses incurred in connection with any registration,
      filing or qualification of the common stock with respect to the registrations
      pursuant to the Section for the Holder, including (without limitation) all
      registration, filing and qualification fees, printers? and accounting fees
      relating or apportionable thereto, but excluding underwriting discounts and
      commissions relating to the sale of the common stock.

    
      
        
        

      

      
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    In
      addition, Buyer shall deliver to Seller $100,000 in cash together with a
      Promissory note in the amount of $440,000 payable in eight
      (8)
      quarterly payments of $55,000.00 commencing July 1st,
      2005.

    

    (e)    Upon
      Closing, Buyer shall be entitled to possession of all Assets, and Seller shall
      provide Buyer reasonable access to all of Seller?s facilities for a reasonable
      time following Closing to obtain possession of all Assets.

    

    (f)    
If
      the
      undersigned defaults in paying principal sum as set forth above and if such
      default is not cured within thirty (30) days of the due date for such payments
      of interest or principal, the entire principal sum and accrued interest shall
      at
      once become due and payable without notice at the option of the holder of this
      Note. Maker shall have forty-five (45) days to cure a default. If payment is
      not
      made within the curative period then all right, title and interest to the
      collateral will revert to the holder of the Note and all payments made under
      the
      Note are then forfeited. In the event of default and a return of the collateral,
      buyers warrants that it will discontinue use of any software or other
      Intellectual Property that is a part of this agreement. Furthermore, Any unpaid
      balance of the purchase price, whether due or not, shall immediately become
      repayable together with any interest thereon if the Purchaser is placed in
      liquidation or under judicial management, whether provisional or final and
      whether compulsory or voluntary, or an effective special resolution is passed
      for the deregistration of the Corporation.

    

    (g)    If
      this
      agreement is terminated for any reason whatsoever, that any employment agreement
      signed with Dr. Harold Kimmel or with any key staff member is to be of no
      further force and effect and that the buyer will undertake not to employ these
      staff members for a period of two years following the termination.

    

    (h)    Buyer
      shall not be entitled to sell any of the assets acquired under this agreement
      until the entire purchase price has been paid to seller and the Note satisfied
      in full.

    

    3.    Representations
      and Warranties of Seller.
      Seller
      hereby represents and warrants to Buyer as follows:

    

    3.1    Organization
      and Standing.
      Seller
      is a private company ltd duly organized, validly existing and in good standing
      under the laws of the Republic of South Africa. Seller has full corporate power
      and authority to own the Assets and operate the Business as heretofore
      conducted.

    

    3.2    Authority
      to Contract.
      Seller
      has the right, power, legal capacity, and authority to enter into and perform
      the obligations under this Agreement, and no approvals or consents of any
      persons or entities are necessary in connection with Seller?s performance under
      this Agreement. 

    

    3.3    Corporate
      Action.
      The
      execution and delivery of this Agreement by Seller has been duly authorized
      by
      all necessary corporate action on the part of Seller, and this Agreement, when
      executed and delivered, shall constitute a valid and binding obligation of
      Seller, enforceable in accordance with its terms, except as such validity and
      enforceability may be affected by applicable bankruptcy, insolvency,
      reorganization, moratorium or other laws of general application relating to
      or
      affecting enforcement of creditors? rights.

    
      
        
        

      

      
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    3.4    No
      Brokers.
      No
      broker, finder or similar agent has been employed by or on behalf of Seller
      in
      connection with this Agreement or the transactions contemplated hereby, and
      Seller has not entered into any agreement or understanding of any kind with
      any
      person for the payment of any brokerage commission, finder?s fee or any similar
      compensation in connection with this Agreement or the transactions contemplated
      hereby.

    

    3.5    No
      Conflicts.
      To the
      best of Seller?s knowledge, the consummation of the transactions contemplated
      by
      this Agreement will not result in or constitute any of the following: (1) a
      breach of any term or provision of any other agreement between Seller and a
      third party; (2) a default or an event that, with notice, lapse of time, or
      both, would be a default, breach, or violation of the articles of incorporation
      or bylaws of Seller; (3) an event that would permit any party to terminate
      any
      agreement or to accelerate the maturity of any indebtedness or other obligation
      of Seller; or (4) the creation or imposition of any lien, charge, or encumbrance
      on any of the Assets.

    

    3.6    Title.
      Seller
      has good and marketable title to all of the Assets, in each case free and clear
      of all liens, charges or encumbrances, any restrictions on transfer, or any
      claims of any nature whatsoever.

    

    3.7    Litigation.
      There
      are no actions, suits, claims or other proceedings (collectively, ?Litigation?)
      pending or, to the best of Seller?s knowledge, contemplated or threatened
      against Seller or the Assets and no such actions, to the best of Seller?s
      knowledge, that would prevent the transfer of the Assets.

    

    3.8    Full
      Disclosure.
      None of
      the representations or warranties furnished by Seller in this Agreement,
      including the Schedules and Exhibits to this Agreement and any other document
      or
      instrument furnished by Seller to Buyer pursuant to or in connection with this
      Agreement, contains or will contain any untrue statement of a material fact,
      or
      will omit to state a material fact necessary in order to make the statements
      contained herein or therein not misleading.

    

    3.9    Completeness.
      The
      Documents are in all material respects complete and correct. The personal
      property reflected in the Records constitutes all such personal property
      necessary for the conduct by Seller of the Business as now
      conducted.

    

    3.10  
        Taxes.

    

    (a)    All
      Tax
      Returns (as defined below) required to be filed by Seller have been timely
      filed
      (giving effect to extensions granted with respect thereto), and all such Tax
      Returns are true, correct and complete in all material respects. Seller is
      not
      currently the beneficiary of any extension of time within which to file a Tax
      Return, nor has any such extension been requested by Seller.

    

    (b)    To
      the
      knowledge of Seller, all Taxes owed by or relating to Seller (whether or not
      shown on any Tax Return) have been paid.

    

    (c)    There
      are
      no liens for Taxes upon any of the Assets.

    
      
        
        

      

      
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    (d)    To
      the
      best of Seller?s knowledge, no dispute or claim has been raised or claimed,
      and
      no such dispute or claim is threatened, by any taxing authority or any other
      governmental authority in connection with or relating to any Taxes of Seller.
      No
      deficiency for any Taxes has been proposed, asserted or assessed against Seller
      that has not been resolved and paid in full. There are no outstanding waivers,
      extensions, or comparable consents regarding the application of the statute
      of
      limitations with respect to any Taxes or Tax Returns that have been given by
      or
      relate to Seller (including the time for filing of Tax Returns or paying Taxes)
      and Seller has no pending requests for any such waivers, extensions, or
      comparable consents.

    

    (e)    Seller
      has complied in all respects with applicable laws, rules, regulations and other
      legal requirements relating to the payment and withholding of Taxes or similar
      provisions under any applicable state and foreign laws and has within the time
      and manner prescribed by law, paid over to the proper governmental authorities
      all amounts required to be so withheld and paid over under applicable
      laws.

    

    (f)    
Seller
      is
      not a party to and is not bound by nor has any obligation under any Tax-sharing
      allocation or indemnity agreement or similar contract or
      arrangement.

    

    (g)    Seller
      is, and has been at all times since its incorporation, properly characterized
      as
      a corporation for federal and applicable state and local income tax
      purposes.

    

    (h)    Seller
      does not expect any taxing authority, or other governmental authority, to claim
      or assess any additional Taxes payable by or relating to Seller for any period
      ending on or prior to the Closing Date and, to the knowledge of Seller, there
      are no facts which could constitute grounds for the assessment of any Taxes
      payable by or relating to Seller for any period on or prior to the Closing
      Date.

    

    For
      purposes of this Agreement, ?Tax? or ?Taxes? shall mean any federal, state,
      local, foreign or other tax, levy, impost, fee, assessment or other government
      charge, including, without limitation, income, estimated income, business,
      occupation, franchise, property, payroll, personal property, sales, transfer,
      use, employment, commercial rent, occupancy, escheat or withholding taxes,
      and
      any premium, together with any interest, penalties and additions in connection
      with the foregoing. For purposes of this Agreement, ?Tax Return? shall mean
      any
      return (including any information return) declaration, report, estimate,
      statement, schedule, notice, form, or other document or information filed with
      or submitted to, or required to be filed with or submitted to, any governmental
      authority in connection with the determination, assessment, collection or
      payment of any Tax or in connection with the administration, implementation
      or
      enforcement of, or compliance with, any legal requirement relating to any
      Tax.

    

    3.11   Employee
      Benefits.
      At
      Closing, Seller shall have no outstanding liability or obligation to any current
      or former employee of Seller. No individual shall accrue or receive additional
      benefits, service or accelerated rights to payments of benefits under any
      employee benefit plan, or become entitled to severance, termination allowance
      or
      similar benefits as a direct result of the transactions contemplated by this
      Agreement.

    

    3.12   Compliance.
      To
      Seller?s knowledge, Seller has complied and is in compliance with all laws,
      rules, regulations, ordinances, orders, decrees, writs, injunctions, building
      codes, safety, fire and health approvals, certificates of occupancy or other
      governmental restrictions applicable to
      the
      Business or the Assets.

    
      
        
        

      

      
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    3.13   Use
      of
      Trade Name.
      To the
      best knowledge of Seller, no other party has obtained the right to use the
      trade
      name ?Secure Biometrics,? or ?Biometrics.co.za? or any substantially similar
      names.

    

    3.14   Trade
      Names, Trademarks and Copyrights.
      Seller
      has no knowledge of any infringement or alleged infringement by others of any
      trade name, trademark, service mark or copyright used at any time in connection
      with the Assets or Business. Seller has not infringed, and is not now
      infringing, on any trade name, trademark, service mark or copyright belonging
      to
      any person, firm or corporation with respect to the Business or Assets. Seller
      is not a party to any license, agreement, or arrangement, whether as a licensee,
      licensor, franchisor, franchisee, or otherwise, with respect to any trademarks,
      service marks, trade names, or applications for them, or any copyrights. Seller
      owns, or holds adequate licenses or other rights to use all trademarks, service
      marks, trade names and copyrights necessary or used for the Business or in
      connection with the Assets and such use does not, and to the best of Seller?s
      knowledge, will not, conflict with, infringe on, or otherwise violate any rights
      of others. Seller has the right to sell or assign to Buyer all such owned
      trademarks, trade names, service marks, and copyrights, and all such licenses
      or
      other rights.

    

    3.15   Contracts.
      The
      Contracts listed on attached Schedule 1.1(e) are all of the material Contracts
      used or useful in the Business. A complete and accurate copy of each of the
      Contracts identified on Schedule 1.1(e) shall be delivered to Buyer prior to
      Closing and the originals of each of the Contracts shall be attached to the
      Assignment at Closing. Seller warrants and represents that it is not currently
      in breach of, nor has it breached, any of its obligations under the respective
      Contracts. Seller further warrants and represents that it has not waived any
      of
      the rights or interests owed to it pursuant to the Contracts.

     

    3.16   Other
      Contracts.
      Except
      as otherwise disclosed herein, Seller is not a party to, nor are the Assets
      bound by, any material distributor?s or manufacturer?s representative or agency
      agreement, any output or requirements agreements; or any other material
      agreement not identified in this Agreement.

    

    3.17   Compliance
      with the Law.
      To the
      best of Seller's knowledge, the operations of the Business have been conducted
      in accordance with all applicable laws, regulations and other requirements
      of
      the Republic of South Africa and of all states, municipalities and other
      political subdivisions and agencies thereof, having jurisdiction over the
      Business, the failure to comply with which would have a material adverse effect
      on the operation or properties of the Business. Seller has not received notice
      of any asserted present or past violation of any applicable federal, state
      or
      local statute, law or regulation (including, without limitation, environmental
      laws, any applicable building, zoning or other law, ordinance or regulation)
      materially affecting either the Business or the Assets, and no such material
      violation exists. To the best of Seller's knowledge, Seller has procured and
      has
      maintained in effect all local, state and federal permits required which does
      not materially have a material adverse effect on the operation of the
      Business.

    

    3.18   Future
      Use.
      Seller
      does not have any information, and is not aware of any facts, which would or
      could adversely affect the future use of the Assets by Buyer in the manner
      previously used by the Seller prior to the Closing Date.

    
      
        
        

      

      
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    3.19   Experience.
      The
      Seller is sufficiently experienced in financial and business matters to be
      capable of evaluating the merits and risks of its investments, and to make
      an
      informed decision relating thereto, and to protect its own interests in
      connection with the purchase of the Stock.

    

    3.20   Own
      Account.
      The
      Seller is purchasing the Stock as principal for its own account. The Seller
      is
      purchasing the Stock for investment purposes only and not with an intent or
      view
      towards further sale or distribution (as such term is used in Section 2(11)
      of
      the Securities Act of 1933, as amended (the ?Securities Act?)) thereof, and
      has
      not pre-arranged any sale with any other purchaser.

    

    3.21   Exemption.
      The
      Seller understands that the offer and sale of the Stock are not being registered
      under the Securities Act based on the exemption from registration provided
      by
      Rule 506 promulgated under Section 4(2) of the Securities Act and that the
      Buyer
      is relying on such exemption.

    

    3.22   Importance
      of Representations.
      The
      Seller understands that the Stock is being offered and sold to it in reliance
      on
      an exemption from the registration requirements of the Securities Act, and
      that
      the Buyer is relying upon the truth and accuracy of the representations,
      warranties, agreements, acknowledgments and understandings of the Seller set
      forth herein in order to determine the applicability of such safe harbor and
      the
      suitability of the Seller to acquire the Stock.

    

    3.23   No
      Registration.
      The
      Stock has not been registered under the Securities Act and may not be
      transferred, sold, assigned, hypothecated or otherwise disposed of unless such
      transaction is the subject of a registration statement filed with and declared
      effective by the Securities and Exchange Commission (the ?SEC?) or unless an
      exemption from the registration requirements under the Securities Act is
      available. The Seller represents and warrants and hereby agrees that all offers
      and sales of the Stock shall be made only pursuant to such registration or
      to
      such exemption from registration.

    

    3.24   Risk.
      The
      Seller acknowledges that the purchase of the Stock involves a high degree of
      risk, is aware of the risks and further acknowledges that it can bear the
      economic risk of the Stock, including the total loss of its
      investment.

    

    3.25   Current
      Information.
      The
      Seller has been furnished with or has acquired copies of all requested
      information concerning the Buyer.

    

    3.26   Independent
      Investigation.
      The
      Seller, in making the decision to purchase the Stock subscribed for, has relied
      upon independent investigations made by it and its purchaser representatives,
      if
      any, and the Seller and such representatives, if any, have prior to any sale
      to
      it, been given access and the opportunity to examine all material contracts
      and
      documents relating to this offering and an opportunity to ask questions of,
      and
      to receive answers from, the Buyer or any person acting on its behalf concerning
      the terms and conditions of this offering. The Seller and its advisors, if
      any,
      have been furnished with access to all materials relating to the business,
      finances and operation of the Buyer and materials relating to the offer and
      sale
      of the Stock which have been requested. The Seller and its advisors, if any,
      have received complete and satisfactory answers to any such
      inquiries.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    3.27   No
      Recommendation or Endorsement.
      The
      Seller understands that no federal, state or provincial agency has passed on
      or
      made any recommendation or endorsement of the Stock.

    

    3.28   Non-Affiliate
      Status.
      The
      Seller is not an affiliate of the Buyer nor is any affiliate of the Seller
      an
      affiliate of the Buyer.

    

    3.29   No
      Advertisement or General Solicitation.
      The
      sale of the Stock has not been advertised through any article, notice or other
      communication published in any newspaper, magazine, or similar media or
      broadcast over television or radio; or through any seminar or meeting whose
      attendees have been invited by any general solicitation or general
      advertising.

    

    4.    Representations
      and Warranties of Buyer.
      Buyer
      hereby represents and warrants to Seller as follows:

    

    4.1    Organization
      and Standing.
      Buyer
      is a limited liability company duly organized, validly existing and in good
      standing under the laws of the State of Florida. Buyer has full power and
      authority to own its assets and operate its business as heretofore
      conducted.

    

    4.2    Authority
      to Contract.
      Buyer
      has the right, power, legal capacity, and authority to enter into and perform
      the obligations under this Agreement, and no approvals or consents of any
      persons or entities are necessary in connection with Buyer?s performance under
      this Agreement. 

    

    4.3    Action.
      The
      execution and delivery of this Agreement by Buyer has been duly authorized
      by
      all necessary corporate action on the part of Buyer, and this Agreement, when
      executed and delivered, shall constitute a valid and binding obligation of
      Buyer, enforceable in accordance with its terms, except as such validity and
      enforceability may be affected by applicable bankruptcy, insolvency,
      reorganization, moratorium or other laws of general application relating to
      or
      affecting enforcement of creditors? rights.

    

    4.4    No
      Brokers.
      No
      broker, finder or similar agent has been employed by or on behalf of Buyer
      in
      connection with this Agreement or the transactions contemplated hereby, and
      Buyer has not entered into any agreement or understanding of any kind with
      any
      person for the payment of any brokerage commission, finder?s fee or any similar
      compensation in connection with this Agreement or the transactions contemplated
      hereby.

    

    4.5    No
      Conflicts.
      To the
      best of Buyer?s knowledge, the consummation of the transactions contemplated
      by
      this Agreement will not result in or constitute any of the following: (1) a
      breach of any term or provision of this Agreement; (2) a default or an event
      that, with notice, lapse of time, or both, would be a default, breach, or
      violation of the articles of organization or operating agreement of Buyer;
      or
      (3) an event that would permit any party to terminate any agreement or to
      accelerate the maturity of any indebtedness or other obligation of
      Buyer.

    

    4.6    Disclosure.
      No
      representation or warranty by Buyer and no statement or certificate furnished
      or
      to be furnished by or on behalf of Buyer to Seller or its agents pursuant to
      this Agreement contains any untrue statement of a material fact or omits to
      state a material fact necessary in order to make the statements contained herein
      or therein not misleading.

    
      
        
        

      

      
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    5.    Conduct
      of Business Pending Closing.
      During
      the period commencing on the date hereof and continuing through the Closing
      Date, Seller covenants and agrees (except as expressly contemplated by this
      Agreement or to the extent that Buyer shall otherwise consent in writing) to
      ensure that:

    

    5.1    Qualification.
      Seller
      shall remain in good standing in South Africa.

    

    5.2    Access.
      Buyer
      and its authorized representatives shall have reasonable access to the Assets,
      the customers of the Business, and Seller?s personnel engaged in the Business
      in
      order to verify further Seller?s representations and warranties set forth in
      this Agreement.

    

    5.3    Maintain
      Assets.
      Seller
      shall maintain the Assets in good working condition and shall take reasonably
      steps to insure that the Assets are not damaged, lost, destroyed or
      impaired.

    

    5.4    Tax
      Assessments and Audits.
      Seller
      shall furnish promptly to Buyer a copy of all notices of proposed assessment
      or
      similar notices or reports that are received from any taxing authority and
      which
      relate to Seller?s operations for periods ending on or prior to the Closing
      Date.

    

    6.    Additional
      Covenants.

    

    6.1   Covenants
      of Seller.
      During
      the period from the date hereof through the Closing Date, Seller agrees
      to:

    

    (a)    use
      commercially reasonable efforts to comply promptly with all applicable legal
      requirements with respect to the transactions contemplated by this Agreement,
      and shall cooperate promptly with, and furnish information to Buyer in
      connection with, any such requirements imposed upon Buyer or upon any of Buyer?s
      affiliates in connection herewith;

     

    (b)    use
      commercially reasonable efforts to bring about the satisfaction of the
      conditions precedent to Closing set forth in Section 7;
      and

    

    (c)    maintain
      the confidentiality of the transactions contemplated by this Agreement, and
      any
      and all information concerning Buyer and its business acquired by Seller in
      connection with this Agreement, for a period of two (2) years after
      Closing.

    

    (d)    continue
      to perform any and all obligations required of it under the Contracts and take
      any and all lawful measures to protect the rights and interests owed to it
      under
      the Contracts.

    

    6.2   Covenants
      of Buyer.
      During
      the period from the date hereof to the Closing Date, Buyer agrees
      to:

    

    (a)    use
      commercially reasonable efforts to comply promptly with all requirements that
      applicable legal requirements may impose upon it with respect to the
      transactions contemplated by this Agreement, and shall cooperate promptly with,
      and furnish information to, Seller in connection with any such requirements
      imposed upon Buyer in connection herewith;

     

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

    

    (b)    use
      commercially reasonable efforts to obtain any and all of Buyer's Consents
      required to be obtained in connection with the transactions contemplated by
      this
      Agreement;

     

    (c)    use
      commercially reasonable efforts to bring about the satisfaction of the
      conditions precedent to Closing set forth in Section 8;
      and

    

    (d)    maintain
      the confidentiality of the transactions contemplated by this Agreement, and
      any
      and all information concerning Seller and the Business acquired by Buyer in
      connection with this Agreement, for a period of two (2) years after
      Closing.

    

    6.3   Further
      Assurances.
      At any
      time and from time to time after the Closing, each party shall, without further
      consideration, execute and deliver to the other such other instruments of
      transfer and shall take such other actions as the other may reasonably request
      to carry out the purpose and intent of this Agreement.

    

    6.4   Confidentiality. 

    

    (a)    Acknowledgment.
      Each of
      Buyer and Seller acknowledges the confidential and proprietary nature of the
      Confidential Information (as defined below), agrees to hold and keep the same
      as
      provided in this Section 6.4,
      and
      otherwise agrees to each and every restriction and obligation in this Section
      6.4.

    

    (b)    Confidential
      Information.
      Confidential Information means and includes any and all:

    

    (i)    trade
      secrets concerning the business and affairs of either Buyer or Seller (the
      ?Provider?) provided to the other party (the ?Recipient?), including product
      specifications, data, know-how, formulae, compositions, processes, designs,
      sketches, photographs, graphs, drawings, samples, inventions and ideas, past,
      current, and planned research and development, current and planned manufacturing
      or distribution methods and processes, customer lists, current and anticipated
      customer requirements, price lists, market studies, business plans, computer
      software and programs, systems, structures and architectures (and related
      processes, formulae, composition, improvements, devices, know-how, inventions,
      discoveries, concepts, ideas, designs, methods and information), and any other
      information, however documented, that is a trade secret within the meaning
      of
      the applicable state trade secret law); and

    

    (ii)    information
      concerning the business and affairs of the Provider (which includes historical
      financial statements, financial projections and budgets, historical and
      projected sales, capital spending budgets and plans, the names and backgrounds
      of key personnel, and personnel training techniques and materials, however
      documented) that has been or may hereafter be provided or shown to the Recipient
      by the Provider or by the Provider?s representatives or is otherwise obtained
      from review of Provider documents or property or discussions with the Provider?s
      representatives by the Recipient or by the Recipient's representatives
      (including current or prospective financing sources) or representatives of
      the
      Recipient?s representatives irrespective of the form of the communication,
      and
      also includes all notes, analyses, compilations, studies, summaries, and other
      material prepared by the Recipient or the Recipient's representatives containing
      or based, in whole or in part, on any information included in the foregoing.
      Any
      trade secrets of the Provider will also be entitled to all of the protections
      and benefits under the applicable state trade secret law and any other
      applicable law.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    (c)    Restricted
      Use of Confidential Information.
      The
      Recipient agrees that the Confidential Information (a) will be kept confidential
      by the Recipient and the Recipient's representatives and (b) without limiting
      the foregoing, will not be disclosed by the Recipient or the Recipient's
      representatives to any person except as expressly otherwise permitted by the
      terms of this Section 6.4.
      It is
      understood that the Recipient may disclose Confidential Information to only
      those of the Recipient's representatives who (i) require such material for
      the
      purpose of evaluating the Transaction, and (ii) are informed by the Recipient
      of
      the confidential nature of the Confidential Information and the obligations
      of
      this Section 6.4.
      The
      Recipient further agrees that the Recipient and the Recipient's representatives
      will not use any of the Confidential Information either for any reason or
      purpose other than to evaluate the Transaction or in any way detrimental to
      the
      Provider (it being acknowledged that any use other than evaluation of and
      negotiating the Transaction will be deemed detrimental). The Recipient also
      agrees to be responsible for enforcing the terms of this Section 6.4
      as to
      the Recipient's representatives and the confidentiality of the Confidential
      Information and to take such action, legal or otherwise, to the extent necessary
      to cause them to comply with the terms and conditions of this Section
6.4
      and
      thereby prevent any disclosure of the Confidential Information by any of the
      Recipient's representatives (including all actions that the Recipient would
      take
      to protect its own trade secrets and confidential information).

    

    (d)    Exceptions.
      All of
      the foregoing obligations and restrictions do not apply to that part of the
      Confidential Information that the Recipient demonstrates (a) was or becomes
      generally available to the public other than as a result of a disclosure by
      the
      Recipient or the Recipient's representatives or (b) was available, or becomes
      available, to the Recipient on a non-confidential basis prior to its disclosure
      to the Recipient by the Provider or Provider?s representatives. Nothing
      contained in this Section 6.4
      shall
      limit or otherwise apply to Buyer?s use and disclosure of the Assets after
      the
      Closing.

    

    (e)    Required
      Disclosure.
      The
      Recipient or such Recipient?s representative may furnish that portion (and
      only
      that portion) of the Confidential Information that is required to disclose
      under
      the applicable federal and state securities laws.

    

    (f)    Return
      of Confidential Information.
      If this
      Agreement is terminated for any reason, then (a) the Recipient (i) will promptly
      deliver to the Provider all documents or other materials furnished by the
      Provider or any of Provider?s representative to the Recipient or the Recipient's
      representatives constituting Confidential Information, together with all copies
      and summaries thereof in the possession or under the control of the Recipient
      or
      the Recipient's representatives, and (ii) will destroy materials generated
      by
      the Recipient or the Recipient's representatives that include or refer to any
      part of the Confidential Information, without retaining a copy of any such
      material or (b) alternatively, if the Provider requests or gives its prior
      written consent to the Recipient's request, the Recipient will destroy all
      documents or other matters constituting Confidential Information in the
      possession or under the control of the Recipient or the Recipient's
      representatives. Any such destruction pursuant to the foregoing must be
      confirmed by the Recipient in writing to the Provider (such confirmation must
      include a list of the destroyed materials).

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    (g)    Remedies.
      The
      Recipient agrees to indemnify and hold the Provider and its stockholders
      harmless from any damages, loss, cost, or liability (including legal fees and
      the cost of enforcing this indemnity) arising out of or resulting from any
      unauthorized use or disclosure by the Recipient or the Recipient's
      representatives of the Confidential Information or other violation of this
      Section 6.4.
      In
      addition, because an award of money damages (whether pursuant to the foregoing
      sentence or otherwise) would be inadequate for any breach of this Section
6.4
      by the
      Recipient or the Recipient's representatives and any such breach would cause
      the
      Provider irreparable harm, the Recipient also agrees that, in the event of
      any
      breach or threatened breach of this Section 6.4,
      the
      Provider will also be entitled, without the requirement of posting a bond or
      other security, to equitable relief, including injunctive relief and specific
      performance. Such remedies will not be the exclusive remedies for any breach
      of
      this Agreement but will be in addition to all other remedies available at law
      or
      equity to the Provider. 

    

    6.5   Press
      Releases.
      Except
      as required by applicable law, Seller shall not make any public statement or
      press releases concerning this Agreement or the transactions contemplated hereby
      except for such written information as shall have been approved in writing
      as to
      form and content by Buyer, which approval shall not be unreasonably withheld.
      Notwithstanding the foregoing, following the Closing, Buyer may announce its
      ownership of the Assets.

    

    7.    Conditions
      Precedent to Buyer?s Performance.
      The
      obligations of Buyer to consummate the transactions contemplated hereby shall
      be
      subject to the satisfaction, at or prior to the Closing Date, of the following
      conditions:

    

    7.1    Covenants.
      Seller
      shall have performed and complied with, in all material respects, all covenants,
      agreements and conditions required by this Agreement to be performed or complied
      with prior to or at the Closing, including without limitation, delivery of
      those
      documents and things required by Section 2(a) above.

    

    7.2    Representations
      and Warranties.
      All of
      the representations and warranties made by Seller in this Agreement shall be
      true, accurate, complete and correct in all material respects at and as of
      the
      Closing Date as though such representations and warranties were made at and
      as
      of the Closing Date.

    

    7.3    Actions
      Affecting Closing.
      No
      suit, action, investigation, inquiry or other proceeding by any governmental
      body or other person or legal or administrative proceeding shall have been
      instituted or threatened which questions the validity or legality of the
      transactions contemplated hereby.

    

    7.4    Consents.
      All
      necessary agreements and consents of any person or entity to the consummation
      of
      the transactions contemplated by this Agreement shall have been obtained.

    

    7.5    Payment
      of Taxes.
      All
      past due or preexisting tax liabilities of Seller, including all sales, use,
      property, payroll, withholding and any other federal, state or local taxes
      and
      assessments, shall be paid by Seller on or before the earlier of the Closing
      Date or the tax due date.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    7.6    Approval
      of Documentation.
      The
      form and substance of all certificates, instruments, opinions, and other
      documents delivered to Buyer under this Agreement, shall be satisfactory in
      all
      reasonable respects to Buyer and its counsel.

    

    7.7    Stockholders
      Consent.
      The
      sale of Assets pursuant to this Agreement shall have been approved by the
      requisite votes of the stockholders of Seller pursuant to Seller?s Certificate
      of Incorporation, as amended, and in accordance with applicable
      law.

    

    8.    Conditions
      Precedent to Seller?s Performance.
      The
      obligations of Seller to consummate the transactions contemplated hereby shall
      be subject to the satisfaction, at or prior to the Closing, of the following
      conditions:

    

    8.1    Covenants.
      Buyer
      shall have performed and complied with, in all material respects, all covenants,
      agreements and conditions required by this Agreement to be performed or complied
      with prior to or at the time of Closing, including without limitation, delivery
      of those documents and things required by Section 2(b) above.

    

    8.2    Representations
      and Warranties.
      All of
      the representations and warranties made by Buyer in this Agreement shall be
      true, accurate, complete and correct in all material respects at and as of
      the
      Closing Date as though such representations and warranties were made at and
      as
      of the Closing Date.

    

    8.3    Actions
      Affecting Closing.
      No
      action shall be pending or threatened before any governmental entity in which
      it
      is sought to restrain or prohibit or to obtain damages or other relief in
      connection with this Agreement or the consummation of the transactions
      contemplated hereby, and no investigation that might eventuate in any such
      action shall be pending or threatened.

    

    8.4    No
      Litigation.
      No
      order of any court shall have been issued or entered which would be violated
      by
      the completion of the transactions contemplated hereby. No person or entity
      who
      or which is not a party to this Agreement shall have commenced or threatened
      to
      commence any Litigation seeking to restrain or prohibit, or to obtain
      substantial damages in connection with, this Agreement or the transactions
      contemplated by this Agreement.

    

    8.5    Consents.
      All
      necessary agreements and consents of any person or entity to the consummation
      of
      the transactions contemplated by this Agreement shall have been obtained.

    

    8.6    Approval
      of Documentation.
      The
      form and substance of all certificates, instruments, and other documents
      delivered to Seller under this Agreement shall be satisfactory in all reasonable
      respects to Seller and its counsel.

    

    8.7    Stockholders
      Consent.
      The
      sale of Assets pursuant to this Agreement shall have been approved by the
      requisite votes of the stockholders of Seller pursuant to Seller?s Articles
      of
      Incorporation, as amended, Bylaws, as amended, and in accordance with Florida
      law.

    

    9.    Post-Closing
      Covenants. 

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    9.1   Use
      of
      Trade Names.
      After
      the Closing Date, neither Seller nor its affiliates shall use or employ in
      any
      manner, directly or indirectly, the following trade names: (a) Secure
      Biometrics; (b) Biometrics.co.za; or any substantially similar names subject
      to
      a reasonable allowance of time for corporate name change filings.

    

    10.   Termination.
      This
      Agreement may be terminated at any time prior to the Closing:

    

    (a)    by
      mutual
      consent of Buyer and Seller;

    

    (b)    by
      Seller, on the one hand, or by Buyer, on the other hand, by written notice
      to
      the other party or parties hereto if the sale of Assets shall not have been
      consummated on or before February 28, 2005 (or such later date as Buyer and
      Seller may agree), provided that in the case of a termination under this clause
      (b), the party or parties terminating this Agreement shall not then be in
      material breach of any of their obligations under this Agreement;

    

    (c)    by
      Buyer
      if there has been a material misrepresentation, material breach of warranty
      or
      material breach of covenant by Seller under this Agreement and Buyer is not
      then
      in material default of Buyer?s obligations hereunder; provided, however, Seller
      shall have thirty (30) days after receiving written notice of such breach to
      cure; or 

    

    (d)    by
      Seller
      if there has been a material misrepresentation, material breach of warranty
      or
      material breach of covenant by Buyer under this Agreement and Seller is not
      then
      in material default of its obligations hereunder; provided, however, Buyer
      shall
      have thirty (30) days after receiving written notice of such breach to
      cure.

    

    Upon
      termination of this Agreement as provided above, this Agreement shall terminate
      and there shall be no liability or obligation thereafter arising on the part
      of
      any party hereto or their respective directors, officers, employees, agents
      or
      other representatives; provided, however, in the event of termination of this
      Agreement as provided in clause (b), (c) or (d) of this Section 10,
      such
      termination shall be without prejudice to any rights that the terminating party
      may have against the breaching party or parties or any other person under the
      terms of this Agreement or otherwise.

    

    11.   Indemnification. 

    

    11.1   Indemnification
      by Seller.
      From
      and after the Closing, Seller, jointly and severally, shall indemnify, defend
      and hold harmless Buyer and its shareholders,
      officers, directors, managers, constituent members, constituent partners,
      beneficiaries, trustees, affiliates, agents, employees, representatives,
      assigns, attorneys, heirs, predecessors, and successors (collectively, ?Buyer?s
      Indemnified Parties?) from and against any and all claims, demands, actions,
      causes of action, judgments, settlements, losses, damages, liabilities,
      compromises, injuries, lawsuits, deficiencies, obligations, costs and expenses,
      including reasonable attorneys? fees, expert witness fees and related costs
      as
      incurred by Buyer, including any and all costs associated with defense of this
      Agreement or the transactions contemplated herein, or any other claim before
      a
      bankruptcy court or other court, trustee or receiver regarding this Agreement,
      the Assets or the transactions contemplated herein (collectively, ?Claims?),
      whether such Claims are fixed or contingent, that any Buyer?s Indemnified
      Parties shall incur or suffer, that arise, result from or relate to: 

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    (a)    any
      breach of, or failure by Seller to perform, any of its representations,
      warranties, covenants, or agreements set forth in this Agreement; 

    

    (b)    any
      event
      or circumstance occurring prior to the Closing which is attributable or related
      to the operation or ownership of the Business or Assets by Seller; or

     

    (c)    any
      obligation, debt or liability of Seller.

    

    11.2 
        Indemnification
      by Buyer.
      From
      and after the Closing, Buyer shall indemnify, defend and hold harmless Seller
      and their respective shareholders,
      officers, directors, managers, constituent members, constituent partners,
      beneficiaries, trustees, affiliates, agents, employees, representatives,
      assigns, attorneys, heirs, predecessors, and successors (collectively, ?Seller?s
      Indemnified Parties?) from and against any and all Claims, whether such Claims
      are fixed or contingent, that any Seller?s Indemnified Parties shall incur
      or
      suffer, that arise, result from or relate to: 

    

    (a)    any
      breach of, or failure by Buyer to perform, any of its representations,
      warranties, covenants, or agreements in this Agreement but subject to each
      and
      all of the terms, conditions and limitations set forth therein; or

    

    (b)    any
      event
      or circumstance occurring following the Closing which is attributable or related
      to the operation or ownership of the Assets by Buyer.

    

    11.3 
        Survival.
      Notwithstanding any provision of this Agreement to the contrary, the indemnity
      obligations of the parties in this Section 11
      and the
      covenants set forth in Section 6
      and
      Section 9
      shall be
      deemed to be continuing and shall survive the Closing.

    

    12.   General
      Provisions.

    

    12.1
        Destruction
      of Property.
      If any
      of the Assets shall be substantially damaged or destroyed by fire or other
      cause
      prior to Closing, Seller shall immediately notify Buyer and furnish Buyer a
      written statement of the amount of insurance, if any, payable on account
      thereof. In the event of such damage or destruction, Buyer may elect (i) to
      require that Seller restore the Intellectual Property to the condition on the
      date of this Agreement or (ii) to declare this Agreement null and
      void.

    

    12.2
        Notices.
      All
      notices and other communications under or in connection with this Agreement
      shall be in writing and shall be deemed given (a) if delivered personally,
      upon
      delivery, (b) if delivered by registered or certified mail, return receipt
      requested, upon the earlier of actual delivery or three days after being so
      mailed, or (c) if given by telecopy, upon confirmation of transmission by
      telecopy, in each case to the parties at the following addresses:

    

    
      	
            	(a)	
              If
                to Buyer, addressed to:

            

    

    CONSTELLATION
      BIOMETRICS CORPORATION

    Attn:
      Mr.
      Mark Mroczkowski

    300
      Sunport Lane

    Orlando,
      Florida 32809 USA

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              If
                to Seller, addressed to:

            

    

    BIOMETRIC
      SECURITY (PTY) LTD

    Attn:
      Dr.
      Harold M. Kimmel

    26A
      Foregate Square 

    Harbour
      Road

    Cape
      Town
      8001 

    South
      Africa

    

    12.3   Severability.
      The
      provisions of this Agreement are intended by the parties to be severable and
      divisible, and the invalidity or unenforceability of a provision or term herein
      shall not invalidate or render unenforceable any other provision or term of
      this
      Agreement.

    

    12.4   Entire
      Agreement.
      This
      Agreement, including the exhibits and schedules attached hereto and other
      documents referred to herein, contains the entire understanding of the parties
      hereto in respect of its subject matter and supersedes all prior and
      contemporaneous agreements and understandings, oral and written, between the
      parties with respect to such subject matter.

    

    12.5   Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of Buyer and Seller
      and
      their respective successors, heirs and assigns; provided, however, that no
      party
      shall directly or indirectly transfer or assign any of such party?s respective
      rights or obligations hereunder in whole or in part without the prior written
      consent of the other party, and any such transfer or assignment without said
      consent shall be void. Subject to the immediately preceding sentence, this
      Agreement is not intended to benefit, and shall not run to the benefit of or
      be
      enforceable by, any other person or entity other than the parties hereto and
      their permitted successors and assigns.

    

    12.6   Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, but all such counterparts together shall constitute but
      one
      and the same Agreement.

    

    12.7   Attorneys?
      Fees.
      In the
      event of any legal, equitable or administrative action or proceeding (each,
      a
      ?Proceeding?) brought by any party under this Agreement, the prevailing party
      shall be entitled to recover the reasonable fees of its attorneys and any costs
      incurred in such Proceeding, including costs of appeal, if any, in such amount
      that the court or administrative body having jurisdiction over such Proceeding
      may award.

    

    12.8   Arbitration.
      If a
      dispute or claim shall arise with respect to any of the terms or provisions
      of
      this Agreement, then either party may, by notice as herein provided, require
      that the dispute be submitted under Commercial Arbitration Rules of the American
      Arbitration Association to an arbitrator in good standing with the American
      Arbitration Association within fifteen (15) days after such notice is given.
      Any
      such arbitrator so selected is to mutually acceptable to both parties. If both
      parties are unable to agree upon a single arbitrator, each party shall appoint
      one (1) arbitrator. If either party does not appoint an arbitrator within five
      (5) days after the other party has given notice of the name of its arbitrator,
      the single arbitrator appointed by the party giving notice shall be the sole
      arbitrator and such arbitrator?s decision shall be binding upon both parties.
      If
      two (2) arbitrators are appointed, these two (2) shall appoint a third
      arbitrator who shall be the sole arbitrator who shall resolve the dispute.
      The
      written decision of the single arbitrator ultimately appointed by or for both
      parties shall be binding and conclusive on the parties. All proceedings before
      the arbitrator shall be held in Orange County, Florida unless another location
      is agreed to by the parties.

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    12.9
         Survival.
      Except
      as expressly provided herein, the representations, warranties, agreements and
      indemnities contained in this Agreement shall survive the execution and delivery
      of this Agreement and the completion of the transactions contemplated
      herein.

    

    12.10   Incorporation.
      The
      recitals, schedules and exhibits to this Agreement are incorporated herein
      and,
      by this reference, made a part hereof as if fully set forth in each section
      of
      this Agreement as applicable.

    

    12.11   Amendment.
      This
      Agreement may be amended at any time by a written instrument executed by Buyer
      and Seller. Any amendment effected pursuant to this Section shall be binding
      upon all parties hereto.

    

    12.12    Waiver.
      Any
      term or provision of this Agreement may be waived in writing at any time by
      the
      party or parties entitled to the benefits thereof. Any waiver effected pursuant
      to this Section shall be binding upon all parties hereto. No failure to exercise
      and no delay in exercising any right, power or privilege shall operate as a
      waiver thereof, nor shall any single or partial exercise of any right, power
      or
      privilege preclude the exercise of any other right, power or privilege. No
      waiver of any breach of any covenant or agreement hereunder shall be deemed
      a
      waiver of any preceding or subsequent breach of the same or any other covenant
      or agreement.

    

    12.13    Construction.
      The
      section and subsection headings used herein are inserted for reference purposes
      only and shall not in any way affect the meaning or interpretation of this
      Agreement. As used in this Agreement, the masculine, feminine or neuter gender,
      and the singular or plural, shall be deemed to include the others whenever
      and
      wherever the context so requires.

    

    12.14    Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Florida, County of Orange without giving effect to any principle or
      doctrine regarding conflicts of laws.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement effective
      as of
      the Closing Date.

    

    
      	
              ?SELLER?

            	 
	 	 
	
              BIOMETRIC
                SECURITY (PTY) LTD,

            
	
              a
                South African private company

            
	 	 
	
              Duly
                Authorized By: 

            	
              /s/
                Harold M. Kimmel

            
	 	
              Dr.
                Harold M. Kimmel,
                Chairman

            
	 	 

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    
      	
              ?BUYER?

            	 
	 	 
	
              CONSTELLATION
                BIOMETRICS CORPORATION, 

            
	
              a
                Florida corporation

            
	 	 
	 	 
	
              Duly
                Authorized By:

            	
              /s/
                Nicholas VandenBrekel

            
	 	
              Nicholas
                VandenBrekel, Chief Executive Officer

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      0(a)

    

    NAMES
      AND LOGOS

    

    

     

    

    
      	
              BioTime
                -
                Biometric Time & Attendance Control and Monitoring

            
	 
	
              BioTools
                -
                Biometric ActiveX Controls For Your Programs

            
	 
	
              BioWeb
                - Biometric
                Internet and Intranet Security 

            
	 
	
              BioDoor
                -
                Stand-Alone Biometric Access Control

            
	 
	
              BioAccess
                -
                Biometric Building Management and Access Control 

            
	 
	
              BioSmartCard
                -
                Biometric Smartcard Owner Authentication

            
	 
	
              BioRegister
                -
                Biometric Group Member Tracking 

            
	 
	
              BioMail
                - Biometric
                Secure Email

            

    

     

    
      
        SCHEDULE
          0(a)

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      0(b)

    

    PATENT
      APPLICATION

    

    

    
      	
              1.

            	
              None
                

            

    

     

    
      
        SCHEDULE
          0(b)

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1.1(c)

    

    TRADEMARKS
      / TRADEMARK APPLICATION

    

    
      	
              1.

            	
              None

            

    

     

    
      
        SCHEDULE
          0(c)

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1.1(d)

    

    CONFIDENTIALITY
      AGREEMENTS

    

    
      	
              1.

            	
              Sequiam
                Corporation: 300 Sunport Lane, Orlando, FL
                32809

            

    

    2. 

     

    
      
        SCHEUDLE
          0(d)

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1.1(e)

     

    CONTRACTS

    

    
      	
              Second-Party(ies)
                Names

            	
              Title
                of Agreement 

            	
              Date

            
	 	 	 
	 	 	 
	 	 	 

    

     

    
      
        SCHEUDLE
          0(g)

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1.1(f)

    

    TANGIBLE
      PROPERTY

    

    
      	
              Appliance

            	 	
              Ser.
                No

            
	 	 	 
	
              Reception
                Area

            	 	 
	 	 	 
	
              Photo
                Copy Machine (mita DC-1855)

            	 	 
	
              HP
                Laser Jet 5P

            	 	
              NLFB007815

            
	
              HP
                Office jet K80

            	 	
              MY243D6B8Q

            
	
              PC

            	 	
              32328306

            
	
              Monitor

            	 	
              AIO
                51903177

            
	
              Answering
                machine

            	 	
              AHAB16132

            
	
              Baby
                PC

            	 	
              1S1002250312

            
	
              2nd
                Baby PC

            	 	 
	 	 	 
	
              Harold's
                Office

            	 	 
	 	 	 
	
              PC

            	 	
              BIO
                0001

            
	
              Monitor

            	 	
              FBCC3C0217945

            
	
              Officejet
                5510 all-in one

            	 	
              MY3BED301Y

            
	
              Lap
                Top

            	 	
              78-ZWAW4
                12/00

            
	
              Lap
                Top

            	 	
              78-XV
                587

            
	 	 	 
	
              Robyn's
                Office

            	 	 
	 	 	 
	
              PC

            	 	
              QZTFT
                45341129

            
	
              Monitor

            	 	
              22795C3672-59

            
	 	 	 
	
              Danie's
                Office

            	 	 
	 	 	 
	
              Monitor

            	 	
              001-71902546

            
	
              Monitor

            	 	
              LE17HMBXS13322X

            
	
              Demo
                Notebook

            	 	
              9145C01V030150004AK

            
	 	 	 
	
              Peter's
                Office

            	 	 
	 	 	 
	
              PC
                - Main Server

            	 	
              BIO
                0002

            
	
              Monitor
                1

            	 	
              MA3865033140

            
	
              Monitor
                2

            	 	
              FXSI340043951

            
	
              Monitor
                3

            	 	
              8748010689

            
	
              PC
                - Demo's

            	 	
              BIO
                0003

            
	
              Lap
                Top

            	 	
              KBM0074309

            
	
              PC
                - Demo's

            	 	 
	
              ADSL
                Modem - Planet

            	 	
              ADE3100A4400228

            
	
                -
                Telkom

            	 	
              39036020200000304

            
	
              Soho
                Basic Swich

            	 	
              FKS0400810

            

    

     

    
      
        SCHEDULE
          0(f)

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      1.6

    

    ALLOCATION
      OF PURCHASE PRICE

    

    

    
      	
              Asset

            	
              Allocation

            
	
              1.
                Intellectual property

            	
              $575,000

            
	
              2.
                Equipment

            	
               10,000

            
	
              Total

            	
              $585,000

            

    

     

    
      
        SCHEDULE
          1.6

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      ?A?

    

    ASSIGNMENT
      OF LICENSES, CONTRACTS, AND OTHER

    INTANGIBLE
      PROPERTY AND ASSUMPTION AGREEMENT

    (Secure
      Biometrics to Constellation Biometrics)

    

    THIS
      ASSIGNMENT OF LICENSES, CONTRACTS, AND OTHER INTANGIBLE PROPERTY AND ASSUMPTION
      AGREEMENT ~ Biometric Security to Constellation Biometrics (this ?Assignment?),
      is made effective as of February 28, 2005 (the ?Closing Date?), by and between
      BIOMETRIC SECURITY (PTY) LTD, a South African private company ltd (?Assignor?),
      and CONSTELLATION BIOMETRICS CORPORATION, a Florida corporation
      (?Assignee?).

    

    FOR
      GOOD
      AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby
      acknowledged, Assignor hereby assigns and transfers unto Assignee, effective
      as
      of the Closing Date, all right, title, claim and interest in, to and under
      all
      of the assets used in or useful to the Assignor?s business of researching,
      developing and manufacturing the Biometric Products (the ?Business?), including,
      without limitation: all intellectual property related to the research,
      development and manufacture of the Biometric Products; Seller?s distributor
      network; Seller?s names and logos; Seller?s patent application filed and pending
      in the United States Patent and Trademark Office (?USPTO?); and Seller?s
      trademarks and service marks, and trademark application filed and pending with
      the USPTO on the terms and conditions set forth in the Agreement (collectively,
      the ?Assets?). The Assets include, but are not limited to, those identified
      on
Attachment
      ?A,?
      attached
      hereto.

    

    FOR
      GOOD
      AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby
      acknowledged, Assignor hereby assigns and transfers unto Assignee, effective
      as
      of the Closing Date, all of Assignor?s right, claim and interest in, to and
      under Assignor?s rights and privileges in and to those certain confidentiality
      agreements by and between Assignor and Assignor?s current or former employees,
      identified on Attachment
      ?B?,
      attached hereto and incorporated herein by this reference (collectively, the
      ?Confidentiality Agreements?). Assignee shall have all of the same right,
      privilege and interest in, to and under the Confidentiality Agreements as
      Assignor and shall be able to enforce such Confidentiality Agreements to the
      full extent permitted by law without participation from Assignor. In the event
      that Assignee is not able to enforce the Confidentiality Agreements to the
      full
      extent available to Assignor, then Assignor shall enforce the Confidentiality
      Agreements for and on behalf of Assignee, at Assignee?s direction and Assignee?s
      sole cost and expense.

    

    FOR
      GOOD
      AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby
      acknowledged, Assignor hereby assigns and transfers unto Assignee, effective
      as
      of the Closing Date, all of Assignor?s right, claim and interest in, to and
      under Assignor?s rights and privileges in and to those certain contracts by
      and
      between Assignor and certain third-parties, attached hereto as Attachment ?C?
      (collectively, the ?Contracts?). Assignee shall have all of the same right,
      privilege and interest in, to and under the Contracts as Assignor and shall
      be
      able to enforce such Contracts to the full extent permitted by law without
      participation from Assignor. In the event that Assignee is not able to enforce
      the Contracts to the full extent available to Assignor, then Assignor shall
      enforce the Contracts for and on behalf of Assignee, at Assignee?s direction
      and
      Assignee?s sole cost and expense.

    
      
        Exhibit
          "A" - Page 1

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ASSIGNOR
      AND ASSIGNEE FURTHER HEREBY AGREE AND COVENANT AS FOLLOWS:

    

    1.    Assumption
      Related to Assets.
      Except
      as set forth in Section 2 below, Assignee hereby assumes any debt, duty,
      obligation and liability of Assignor directly related to the Assets to the
      extent that such debt, duty, liability or obligation arises from and after
      the
      Closing Date hereof (each, a ?Prospective Obligation?). From and after the
      Closing Date hereof, Assignor hereby retains any and all debts, duties,
      liabilities and obligations directly related to the Assets other than the
      Prospective Obligations. 

    

    2.    Retention
      of Obligations Under Confidentiality Agreements/Indemnity.
      From
      and after the Closing Date hereof, Assignor hereby retains any and all debts,
      duties, liabilities and obligations pursuant to the Confidentiality Agreements,
      whether arising before or after the Closing Date (each, an ?Employment
      Obligation?). Assignor hereby indemnifies Assignee and each Representative
      of
      Assignee against and shall defend, protect and hold harmless Assignee and each
      such Representative from and against any and all Claims from time to time
      incurred by Assignee or such Representative concerning any Employment
      Obligation. The term ?Representative? means and includes, with respect to
      Assignee, each shareholder, director, officer, manager, constituent member,
      constituent partner, trustor, beneficiary, trustee, successor-in-interest,
      predecessor-in-interest, affiliate, employee, agent, attorney or other
      representative of Assignee, expressly excluding however, any other party to
      this
      Assignment. The term ?Claim? means and includes any claim, demand, action,
      cause
      of action, loss, damage, judgment, award, compromise or settlement, debt,
      responsibility, liability, obligation, lien, encumbrance, cost or expense,
      including reasonable attorneys fees, expert witness fees, accounting fees and
      related costs, incurred by a party hereto or any Representative of such
      party.

    

    3.    Possession.
      From
      and after the Closing Date hereof, Assignee shall have sole possession of the
      Assets.

    

    4.    Representations
      and Warranties.
      Assignor hereby affirms and renews each representation and warranty of Assignor
      set forth in Section 3 of the Asset Purchase Agreement by and between Assignor
      and Assignee, dated February 28, 2005 (the "Purchase Agreement"), and its
      related subsections, which are hereby incorporated into this
      Assignment.

    

    5.    Binding
      Effect.
      This
      Assignment shall be binding on and inure to the benefit of the parties hereto,
      their heirs, executors, administrators, successors in interest and
      assigns.

    

    6.    Governing
      Law.
      This
      Assignment shall be governed by and construed in accordance with the laws of
      the
      State of Florida.

    

    7.    Further
      Assurances.
      Both
      parties shall provide all further assurances, shall take all further actions
      and
      shall execute, acknowledge, verify, certify, enter into, deliver, record and/or
      file any and all agreements, contracts, amendments, assignments, statements,
      certificates, instruments and other documents necessary or appropriate to close,
      consummate and effect the transactions contemplated by this
      Assignment.

    
      
        Exhibit
          "A" - Page 2

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed, delivered and entered into this
      Assignment as of the Closing Date hereof.

    

    

    
      	
              ?Assignor?

            	 	 
	 	 	 
	
              BIOMETRIC
                SECURITY (PTY) LTD,

            	 
	a South African private
              company
              ltd	 
	 	 	 
	Duly
              Authorized By:	 	 
	
              Name:

            	  
	 	 
	
              Title:

            	  
	  
	 	 

    

     

    

    
      	?Assignee?	 	 
	 	 	 
	CONSTELLATION BIOMETRICS
              CORPORATION, 	 
	a Florida corporation	 
	 	 	 
	Duly
              Authorized By:	 	 
	Name:	  
	  
	 	 
	Title:	  
	  
	 	 

    

     

    
      
        Exhibit
          "A" - Page 3

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ATTACHMENT
      ?A?

    

    ASSETS

    

    

    1.    Intellectual
      Property.
      All
      right, title and interest in and to any and all present and future intellectual
      property rights with respect to the Business, including, without limitation,
      the
      designs, formulae, know-how, trade secrets, processes, compositions, drawings,
      specifications, patterns, blueprints, plans, files, notebooks and records,
      proprietary and technical information, computer software, licenses of
      technology, and any and all other intangible personal property, together with
      all rights to and applications, licenses and franchises for, any of the
      foregoing, relating to the Business and all other intangible personal property
      used in or useful in the Business or with the Biometric Products;

    

    2.    Distributor
      Network.
      All
      right, title and interest in and to Seller?s distributor network;

    

    3.    Names
      and Logos.
      All
      right, title and interest in and to the name, ?Secure Biometrics,??Biometrics,?
      and any and all other names and logos created, developed and/or used by Seller
      in the Business. 

    

    4.    Patent
      Application.
      All
      right, title and interest in and to Seller?s patent application filed in
      connection with the Biometric Products. 

    

    5.    Trademarks/Trademark
      Application.
      All
      right, title and interest in and to any and all trademarks and service marks
      used by Seller in connection with the Business and/or the Biometric
      Products.

    

    6.    Confidentiality
      Agreements.
      All
      right, title and interest in and to those certain confidentiality agreements
      regarding the Assets identified on Schedule 1.1(d).

    

    7.    Contracts.
      All
      right, title and interest in and to those certain contracts to which Seller
      is a
      party, identified on Schedule 1.1(e);

    

    8.    Tangible
      Business Property.
      All of
      Seller?s parts inventory, work in-process and finished goods inventory,
      prototypes, molds, tooling, production equipment, furniture, computers and
      software; and

    

    9.    Customer
      Lists.
      All of
      Seller?s customer lists and business contacts.

     

    
      
        Exhibit
          "A" - Page 4

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      ?B?

    

    CONFIDENTIALITY
      AGREEMENTS

    

    

    Sequiam
      Corporation: 300 Sunport Lane, Orlando, FL 32809

     

    
      
        Exhibit
          "A" - Page 5

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      ?C?

    

    CONTRACTS

    

    [Please
      attach original contracts]

     

    
      
        Exhibit
          "A" - Page 6

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      ?B?

    

    BILL
      OF SALE

    (Tangible
      Property from Secure Biometrics to Constellation Biometrics)

    

    FOR
      GOOD
      AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby
      acknowledged, effective as of February 28, 2005 (the ?Closing Date?), the
      undersigned, BIOMETRIC SECURITY (PTY) LTD, a South African private company
      ltd
      (?Assignor?), hereby grants, bargains, conveys, transfers, assigns and delivers
      unto CONSTELLATION BIOMETRICS CORPORATION, a Florida corporation (?Assignee?),
      all
      of
      Assignor?s right, title and interest in and to those certain tangible assets
      (the ?Assigned Assets?) specifically identified on Attachment
      ?A?
      attached
      hereto and incorporated herein by this reference.

    

    TO
      HAVE
      AND TO HOLD the Assigned Assets unto Assignee and its successors and assigns
      forever, Assignor hereby represents and warrants to Assignee and its successors
      and assigns that Assignor has the right, power and authority to transfer the
      Assigned Assets to Assignee and that Assignor hereby agrees to defend the title
      to the Assigned Assets unto Assignee and its successors and assigns against
      any
      person claiming an interest in the Assigned Assets, or any part thereof.

    

    Assignor
      hereby affirms and renews each representation and warranty of Assignor set
      forth
      in Section 3 of the Asset Purchase Agreement by and between Assignor and
      Assignee, dated January 4, 2005 (the "Purchase Agreement"), and its related
      subsections, which are hereby incorporated into this Bill of Sale.

    

    This
      Bill
      of Sale may be executed in one or more counterparts, all of which taken together
      shall constitute one and the same instrument and each of which taken separately
      shall constitute an original for all purposes.

    

    IN
      WITNESS WHEREOF, Assignor has made, executed and delivered this Bill of Sale
      as
      of the Closing Date hereof.

     

    
 

    
      	?Assignor?	 	 
	 	 	 
	
              BIOMETRIC
                SECURITY (PTY) LTD,

            	 
	a South African private
              company
              ltd	 
	 	 	 
	Duly
              Authorized By:  	 	 
	Its:	  
	  
	 	 

    

     

    
      
        	?Assignee?	 	 
	 	 	 
	
                CONSTELLATION
                  BIOMETRICS CORPORATION,

              	 
	a Florida Corporation	 
	 	 	 
	Duly
                Authorized By:  	 	 
	Its:	  
	  
	 	 

      

       

    

    
      
        Exhibit
          "D" - Page 1

      

      
        
        

        
          

        

      

      
        
        

      

    

    ATTACHMENT
      ?A?

    

    TANGIBLE
      PROPERTY

    

    
      	
              Appliance

            	 	
              Ser.
                No

            
	 	 	 
	
              Reception
                Area

            	 	 
	 	 	 
	
              Photo
                Copy Machine (mita DC-1855)

            	 	 
	
              HP
                Laser Jet 5P

            	 	
              NLFB007815

            
	
              HP
                Office jet K80

            	 	
              MY243D6B8Q

            
	
              PC

            	 	
              32328306

            
	
              Monitor

            	 	
              AIO
                51903177

            
	
              Answering
                machine

            	 	
              AHAB16132

            
	
              Baby
                PC

            	 	
              1S1002250312

            
	
              2nd
                Baby PC

            	 	 
	 	 	 
	
              Harold's
                Office

            	 	 
	 	 	 
	
              PC

            	 	
              BIO
                0001

            
	
              Monitor

            	 	
              FBCC3C0217945

            
	
              Officejet
                5510 all-in one

            	 	
              MY3BED301Y

            
	
              Lap
                Top

            	 	
              78-ZWAW4
                12/00

            
	
              Lap
                Top

            	 	
              78-XV
                587

            
	 	 	 
	
              Robyn's
                Office

            	 	 
	 	 	 
	
              PC

            	 	
              QZTFT
                45341129

            
	
              Monitor

            	 	
              22795C3672-59

            
	 	 	 
	
              Danie's
                Office

            	 	 
	 	 	 
	
              Monitor

            	 	
              001-71902546

            
	
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        Exhibit
          "B" - Page 2

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      ?C?

    

    AGREEMENT
      REGARDING

    CONFIDENTIAL
      INFORMATION AND WORK PRODUCTS

    

    This
      AGREEMENT REGARDING CONFIDENTIAL INFORMATION AND WORK PRODUCTS (this
?Agreement?)
      is
      entered into effective as of January 4, 2005 (the ?Closing
      Date?),
      by and
      between CONSTELLATION BIOMETRICS CORPORATION, a Florida corporation (the
?Company?),
      and
      Harold Kimmel (?Employee?),
      with
      reference to the following recitals: 

    

    A.    Employee
      has been an employee of Biometric Security, a South African private company
      ltd
      ("Seller").

    

    B.    Pursuant
      to that certain Asset Purchase Agreement by and between the Company and Seller,
      dated as of the Closing Date hereof (the ?Purchase Agreement?), Seller agreed
      to
      cause Employee to enter into this Agreement with the Company.

    

    C.    Employee
      desires to enter into this Agreement in satisfaction of the conditions set
      forth
      in the Purchase Agreement.

    

    NOW,
      THEREFORE, in consideration of the foregoing premises, the mutual covenants
      contained herein, and the Purchase Agreement, and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto agree as follows:

    

    1.    Definitions.

    

    1.1    The
      term
?Confidential
      Information?
      means
      proprietary techniques and confidential information that the Seller has
      transferred or will transfer to the Company or that Employee received or will
      receive under conditions of confidentiality. Confidential Information is to
      be
      broadly defined and includes (i) all information that has or could have
      commercial value or other utility in the business in which either the Seller
      or
      the Company is or was engaged or in which the Company contemplates engaging,
      (ii) all information that, if disclosed without authorization, could be
      detrimental to the interest of the Company, whether or not such information
      is
      identified as Confidential Information by the Seller or the Company; and
      (iii) all information relating to the business formerly conducted by
      Seller
      and to be conducted by the Company, whether previously existing, now existing
      or
      arising hereafter, whether conceived or developed by others or by Employee
      alone
      or with others, and whether or not conceived or developed during regular working
      hours. By example and without limitation, Confidential Information includes
      all
      information relating to techniques, processes, formulas, trade secrets,
      inventions, discoveries, improvements, research or development test results,
      specifications, data, know-how, formats, marketing plans, business plans,
      strategies, forecasts, non-published financial information, budgets,
      projections, and customer and supplier identities, characteristics, and
      agreements. The term ?Confidential Information? shall not include any
      information of the type specified above to the extent that such information
      is
      or becomes publicly known or generally utilized by others engaged in the same
      business or activities in which the Company utilized, developed or otherwise
      acquired such information (other than by reason of Employee?s breach of this
      Agreement). Failure to mark any Confidential Information as confidential shall
      not affect its status as Confidential Information under this
      Agreement.

    

    1.2    The
      term
?Work
      Products?
      means
      and includes, without limitation, a discovery, a development, a design, an
      improvement, an invention, a know-how, technical or non-technical data, a
      formula, a pattern, a compilation, a program, a device, a method, a technique,
      a
      drawing, a process, financial data, financial plans, product plans, business
      plans, software programs (including the object and source code thereto) or
      a
      list (whether in written form or otherwise) of actual or potential customers
      or
      suppliers, which is not commonly known by or available to the public and which
      information (i) derives economic value, actual or potential, from not being
      generally known to and not being readily ascertainable by proper means by other
      persons who can obtain economic value from its disclosure or use and (ii) is
      the
      subject of efforts that are reasonable under the circumstances to maintain
      its
      secrecy.

    
      
        Exhibit
          "E" - Page 1

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.    Ownership. 

    

    2.1    Confidential
      Information.
      Employee
      hereby acknowledges and agrees that all right, title and interest in and to
      any
      Confidential Information shall be and shall remain the exclusive property of
      the
      Company, and that any Confidential Information which Employee acquired from
      the
      Seller or acquires from the Company was and is received in confidence and as
      a
      fiduciary of the Seller or the Company. 

    

    2.2    Work
      Products.
      Employee hereby acknowledges that any and all Work Products which may have
      been
      or are made, developed or conceived of in whole or in part by Employee, or
      any
      of Employee?s representatives working with Employee, in connection with the
      services performed by Employee on behalf of Seller or the Company or relating
      to
      the business of the Seller or the Company, shall belong solely and exclusively
      to the Company. 

    

    (a)    Assignment
      of Work Product.
      Employee
      hereby assigns to the Company Employee?s entire right, title and interest,
      including all patent, copyright, trade secret, trademark and other proprietary
      rights, in any and all Work Products.

    

    (b)    Documentation.
      Employee
      shall, at no charge to the Company, execute and aid in the preparation of any
      and all documentation that the Company may consider necessary or helpful to
      obtain or maintain, at the Company?s expense,
      any patents, copyrights, trademarks or other proprietary rights. The Company
      shall reimburse Employee for reasonable out-of-pocket expenses incurred under
      this Section. 

    

    (c)    REASONABLENESS
      OF RESTRICTIONS.
      EMPLOYEE
      HAS CAREFULLY READ AND CONSIDERED THE PROVISIONS OF THIS SECTION AND, HAVING
      DONE SO, HEREBY AGREES THAT THE RESTRICTIONS SET FORTH IN SUCH SECTION ARE
      FAIR
      AND REASONABLE AND ARE REASONABLY REQUIRED FOR THE PROTECTION OF THE INTERESTS
      OF THE COMPANY AND ITS BUSINESS. 

    

    3.    Disclosure
      and Use.
      At all
      times from and after the Closing Date, Employee shall hold in trust, keep
      confidential and shall not directly or indirectly make use of, copy, disclose,
      reveal, report, publish or transfer to any third party any Confidential
      Information or Work Products without the prior written approval of the Company.
      Employee shall not cause the transmission, removal, or transport of Confidential
      Information or Work Products from the Company?s principal places of business
      or
      such other place specified by the Company without prior written approval of
      the
      Company. Employee acknowledges that the unauthorized use or disclosure of
      Confidential Information or Work Products may be highly prejudicial to the
      interest of the Company. Employee will not publish, disclose or otherwise
      disseminate such Confidential Information or Work Products without the prior
      written approval of the Company.

    

    4.    Return
      of Company?s Property.
      Within
      three (3) calendar days following the sale, transfer or assignment of all of
      Employee?s ownership interest in the Company, Employee shall deliver to the
      Company all of the Company?s or any of its affiliates? property and the
      Company?s or any of its affiliates? non-personal documents and data of any
      nature and in whatever medium provided to Employee, including, without
      limitation, information pertaining to the Company or any of its affiliates
      or
      the Seller or any of its affiliates, and Employee will return to the Company
      and
      will not take with Employee any such property, documents or data of any
      description or any reproduction thereof, or any documents containing or
      pertaining to any Confidential Information or Work Products.

    
      
        Exhibit
          "B" - Page 2

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5.    Remedies.
      Each
      party hereto has carefully read and considered the provisions of this Agreement
      and, having done so, agrees that the restrictions set forth in this Agreement
      are fair and reasonable and are reasonably required for the protection of the
      interests of each party hereto. 

    

    5.1    Injunctive
      Relief.
      Each
      party hereto acknowledges and agrees that (i) the covenants and the
      restrictions contained in this Agreement are necessary, fundamental, and
      required for the protection of the Company and its business; (ii) such covenants
      relate to matters which are of a special, unique, and extraordinary character
      that gives each of such covenants a unique and extraordinary value; and (iii)
      a
      breach of any of such covenants will result in irreparable harm and damages
      to
      the Company which cannot be adequately compensated by a monetary award.
      Accordingly, it is expressly agreed that in addition to all other remedies
      available at law or in equity, the non-defaulting party shall be entitled to
      seek injunctive or other equitable relief to restrain or enjoin Employee from
      breaching any such covenant or to specifically enforce the provisions of this
      Agreement.

    

    5.2    Cumulative
      Remedies.
      Notwithstanding any provision of this Agreement to the contrary, the parties
      agree that no remedy conferred by any specific provision of this Agreement
      (including without limitation, this Section) is intended to be exclusive of
      any
      other remedy, and that each and every remedy shall be cumulative and shall
      be in
      addition to every other remedy available at law, in equity, by statute or
      otherwise.

    

    5.3    Severability.
      In the
      event that any one or more provisions of this Agreement shall be held to be
      invalid or unenforceable, the validity and enforceability of the remainder
      hereof shall not in any way be affected or impaired thereby. Moreover, if any
      one or more of the provisions contained in this Agreement are held to be
      excessively broad as to duration, scope, activity or subject, such provisions
      will be construed by limiting and reducing them so as to be enforceable to
      the
      maximum extent compatible with applicable law.

    

    6.    General
      Provisions.

    

    6.1    Attorneys
      Fees.
      In any
      action (including, without limitation, any mediation, arbitration,
      administrative proceeding or judicial proceeding) between or among the parties
      to enforce or interpret any of the terms or provisions of this Agreement, the
      prevailing party in such action shall be entitled to receive its reasonable
      costs and expenses incurred in connection with such action, including without
      limitation, reasonable attorneys fees, expert witness fees and accounting
      fees.

    

    6.2    No
      Waiver.
      A
      waiver by any party of a breach of any of the covenants, conditions or
      agreements under this Agreement made or to be performed by any other party
      shall
      not be construed as a waiver of such breach by any other party or as a waiver
      of
      any succeeding breach of the same or any other covenant, agreement, restriction
      or condition of this Agreement.

    

    6.3    Modifications.
      No
      alteration, change or modification of or to this Agreement shall be effective
      unless it is made in writing and signed by all parties hereto.

    

    6.4    Entire
      Agreement.
      This
      Agreement contains the entire understanding between the parties relating to
      the
      transactions contemplated by this Agreement, and all prior agreements,
      understandings, representations and statements relating to the transactions
      contemplated herein are superseded by this Agreement and shall be of no further
      force or effect.

    

    6.5    Execution
      and Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      document. This Agreement shall not become effective unless and until it is
      fully
      executed; provided, however, that copies of signatures received by telefacsimile
      shall be deemed to be original signatures, provided originals of such copies
      are
      delivered within a reasonable time following the Closing Date
      hereof.

    
      
        
          Exhibit
            "B"
            - Page 3

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    6.6    Further
      Assurances.
      Each
      party shall sign any other and further instruments and documents and shall
      take
      any other and further actions as might be necessary or proper in order to
      accomplish the intent and purposes of this Agreement.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement
      as of the Closing Date hereof.

     

    
       

      
        	 CONSTELLATION BIOMETRICS
                CORPORATION,	 	 	 
	 a Florida
                corporation	 	 	 
	 	 	 	 
	 By: 	 	 	 [Employee
                Signature]
	 	 Nicholas
                H. VandenBrekel, CEO	 	 Print
                Name:	 

      

    

    
       

      Exhibit
        "B" - Page 4Exhibit 10.3

    
      
        

      

      Exhibit
        10.3

      PROMISSORY
        NOTE

      

      

       

      
        	
                Principal
                  Amount: $440,000

              	
                February
                  28, 2005

              

      

       

      

      FOR
        VALUE
        RECEIVED, the undersigned promises to pay to the order of Biometric
        Security (PTY) LTD
        at 26A
        Foregate Square, Harbour Road, Cape Town, 8001, South Africa, or at such
        other
        place as the holder of this Note may designate in writing the principal sum
        of
        FOUR HUNDRED AND FORTY THOUSAND DOLLARS ($440,000) until paid, as
        follows:

      

      Quarterly
        payments of $55,000 for the period starting July 1, 2005 and continuing each
        quarter thereafter until this Note shall be paid in full;

      

      The
        principal amount shall become due and payable in full on April 1,
        2007.

      

      The
        undersigned hereby reserves the right to prepay this Note in whole or in
        part at
        any time without premium or penalty. 

      

      This
        note
        is secured by all the assets sold by Biometric Security (PTY) LTD to
        Constellation Biometrics, LLC and fully described in the ASSET PURCHASE
        AGREEMENT entered into effective as of February 28, 2005 (the "Effective
        Date"),
        by and among CONSTELLATION BIOMETRICS CORPORATION, a Florida Corporation,
        or its
        assigns (?Buyer?), and Biometric Security (PTY), LTD, (AKA Secure Biometrics
        or
        Biometrics.co.za) a South African Private Company Ltd (?Seller?)

      

      This
        Note
        is to be construed and enforced accordingly to the laws of the State of
        Florida.

      

      If
        the
        undersigned defaults in paying principal sum as set forth above and if such
        default is not cured within thirty (30) days of the due date for such payments
        of interest or principal, the entire principal sum and accrued interest shall
        at
        once become due and payable without notice at the option of the holder of
        this
        Note. Maker shall have forty-five (45) days to cure a default. If payment
        is not
        made within the curative period then all right, title and interest to the
        collateral will revert to the holder of the Note.

       

      
        	 	 	 
	 	
                CONSTELLATION
                  BIOMETRICS CORPORATION

              
	 
 	 
 	 
 
	 	BY:  	
                /s/
                  Mark L. Mroczkowski 

              
	 	Mark
                L. Mroczkowski, Secretary

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