Document:

Exhibit 10.38

                              CONSULTING AGREEMENT

This Agreement ("Agreement") entered into as of July 15, 2002 (the "Effective
Date") between Airos Group, Inc., an Ontario corporation, with offices at 151
Robinson St., Oakville, Ontario (the "Consultant") and Smart Chip Technologies.,
a Florida corporation (the "Company"), with its principal executive offices at
18662 MacArthur Blvd., 2nd Floor, Irvine, California 92612.

         WHEREAS, the Company is in the business of developing and commercially
exploiting smart card based loyalty systems including without limitation its
participation in the Solstice Scotiabank Project (the "Project"), and Consultant
represents that it has extensive experience in POS terminal application
development, technical project management, quality assurance management and
system integration applicable to the Project (the "Services"); and

         WHEREAS, the Company desires to retain the services of the Consultant
to provide the Services (as hereinafter set forth) and the Consultant desires to
render the Services, upon the terms and conditions hereinafter set forth;

         NOW, THEREFORE, in consideration of the agreements and covenants
contained herein, the Consultant and the Company hereby agree as follows:

1. Employment

         1.1 Appointment; Responsibilities.

         (a)      The Company hereby engages the Consultant to perform the
                  Services commencing as of the Effective Date, in accordance
                  with the terms and conditions herein. This Agreement shall be
                  for a term of three (3) months through October 15, 2002 (the
                  "Term") and shall be terminable on the terms and subject to
                  the conditions set forth in this Agreement and shall be
                  extendable by mutual agreement.

         (b)      The Consultant shall report to the Company representative
                  David Simon or his designee.

         1.2 Services. Consultant shall render Services to the Project as set
forth in Schedule I, attached hereto and as may be additionally required by
Company from time to time during the term of this Agreement. The terms for
provision of additional services shall be mutually agreed upon and Schedule I
shall be amended accordingly.

         1.3 Representation and Warranty. Consultant represents and warrants to
the Company that the execution and delivery of this Agreement and the
fulfillment of the terms hereof (i) will not constitute a breach of any
agreement or other instrument to which Consultant is party, and (ii) does not
require the consent of any person. Additionally, Consultant represents and
warrants to the Company that it shall not utilize during the term of this
Agreement, any proprietary information of any third party, including prior
employers of the Consultant.

  DS                                                                        MR
<PAGE>

2. Compensation

         2.1 General. The Company shall compensate the Consultant for all of his
services under this Agreement, as set forth below.

         2.2 Fees & Personnel. Commencing from the Effective Date, Consultant
shall be compensated for Services rendered at a rate of C$1,200 per actual
workday for each person engaged on behalf of Consultant in the Project (the
"Fee"). The C$1,200 will be payable as C$1,000 cash and $200 in stock. The stock
price will be equal to the closing stock price on the last business day of each
month. The first payment of cash and stock will be due on August 9, 2002. The
Consultant will be provided options on The Company stock at the rate of 100,000
shares each month, beginning on July 31, 2002, at a strike price equal to 100%
of the closing stock price on the last business day of the month. The options
will be issued monthly for the duration of this Agreement and are exercisable
within three years of issuance; for the first 30 days after issuance the options
are not exercisable. The Consultant shall not change the personnel designated in
Schedule I without the written consent of the Company. The Fee shall be payable
in arrears on the first day of each month for the preceding month, subject to
and immediately after receipt of an invoice detailing in reasonable specificity
the Fee owing and describing the specific Services performed . Consultant shall
be responsible for the payment of all taxes including without limitation, all
Canadian and provincial, income, unemployment, social security and medicare
taxes.

         2.3 Deposit. Immediately subsequent to the effectiveness of this
Agreement, the Company shall deposit with the Consultant the sum of C$50,000 as
a security deposit (the "Security Deposit") for the Fees owing for the month of
October 2002, due August 9, 2002. Upon expiration of this Agreement, the
Security Deposit shall be applied first to any unpaid Fee due and owing the
Consultant. In the event that no Fees are due and owing to the Consultant or the
Agreement was either terminated by the Company for Cause (as defined below) or
terminated by Consultant for any reason other than for Cause, the Security
Deposit shall be promptly remitted to the Company.

3. Termination

         3.1 Termination With effect from the Effective Date, this Agreement
shall end on the earlier of: (i) termination for Cause (as defined herein); (ii)
October 15, 2002.

         3.2 Cause For the purpose of this Section 3, "Cause" shall exist if

                  (a) Consultant (i) substantially fails to perform the
         Consultant's areas of responsibility set forth herein, (ii) engages
         conduct which, in the sole discretion of the Company, is unethical,
         illegal or which otherwise brings adverse notoriety to Company or has
         an adverse effect on the name or public image of the Company, (iii)
         fails to comply with the instructions of Company in a manner
         detrimental to the Company, provided that with respect to clauses (i)
         and (iii), if Consultant has cured any such condition (that is
         reasonably susceptible to cure) within 15 days following delivery of
         the advance notice (as defined herein) then "cause" shall be deemed not
         to exist. For purposes of this Section 3, "advance notice" shall
         constitute a written notice delivered to Consultant that sets forth
         with particularity the facts and circumstances relied upon by the
         Company as the basis for cause.

                  (b) (i) the Company fails to pay the Fee for a period of more
         than 90 days from receipt of an invoice (ii) the Consultant is asked to
         engage in conduct which is unethical or illegal.

  DS                                                                        MR
<PAGE>

         3.5 Termination Compensation Upon termination for Cause by the Company
or termination without Cause by the Consultant, Consultant shall be entitled to
the compensation set forth as the Fee herein, prorated to the effective date of
such termination. Upon termination for Cause by Consultant, Consultant shall be
entitled to retain all of the Security Deposit in lieu of any damages or
penalty.

4. Development Rights; Confidential Information; Non-competition

         4.1 Development Rights

         Consultant agrees and declares that all proprietary information
including but not limited to trade secrets, know-how, patents and other rights
in connection therewith developed by or with the contribution of Consultant's
efforts during the term of his provision of Services to the Company, shall be
the sole property of the Company. Upon the Company's request (whenever made),
Consultant shall execute and assign to the Company all the rights in the
proprietary information.

         4.2 Confidentiality

         (a) The term "Information" as used in this section means any and all
confidential and proprietary information including but not limited to any and
all specifications, formulae, prototypes, software design plans, computer
programs, and any and all records, data, methods, techniques, processes and
projections, plans, marketing information, materials, financial statements,
memoranda, analyses, notes, and other data and information (in whatever form),
as well as improvements and know-how related thereto, relating to the Company or
its products. Information shall not include information that (a) was already
known to or independently developed by Consultant prior to its disclosure as
demonstrated by reasonable and tangible evidence satisfactory to the Company;
(b) shall have appeared in any printed publication or patent or shall have
become part of the public knowledge except as a result of breach of this
Agreement by the Consultant or similar agreements by other Consultant's or
Company employees (c) shall have been received by the Consultant from another
person or entity having no obligation of confidentiality to the Company or (d)
is approved in writing by the Company for release by the Consultant.

         (b) Consultant agrees to hold in trust and confidence all Information
disclosed to it and further agrees not to exploit or disclose the Information to
any other person or entity or use the Information directly or indirectly for any
purpose other than for Consultant's work with the Company.

         (c) Consultant agrees to disclose the Information only to persons
necessary in connection with Consultant's work with the Company and who have
undertaken in writing the same confidentiality obligations set forth herein in
favor of the Company. Consultant agrees to assume full responsibility for the
confidentiality of the Information disclosed to Consultant and to prevent its
unauthorized disclosure, and shall take appropriate measures to ensure that such
persons acting on his behalf are bound by a like covenant of secrecy.

         (d) Consultant acknowledges and agrees that the Information furnished
hereunder is and shall remain proprietary to the Company. Unless otherwise
required by statute or government rule or regulation, all copies of the
Information, shall be returned to the Company immediately upon request without
retaining copies thereof.

  DS                                                                        MR
<PAGE>

5. Miscellaneous

         5.1 Notices. All notices, requests or other communications provided for
in this Agreement shall be given to the addresses listed above

         All notices, requests or other communications provided for in this
Agreement shall be made in writing either (a) by personal delivery to the party
entitled thereto, (b) by facsimile or electronic mail with confirmation of
receipt, (c) by mailing to the last known address of the party entitled thereto
or (d) by express courier service. The notice, request or other communication
shall be deemed to be received upon personal delivery, upon confirmation of
receipt of facsimile or electronic mail transmission or upon seven (7) days from
mailing from any national mail service or upon receipt if by express courier
service; provided, however, that if a notice, request or other communication is
not received during regular business hours, it shall be deemed to be received on
the next succeeding business day of the Company.

         5.2 Assignment and Succession. This Agreement is personal to Consultant
and Consultant shall not assign or delegate his rights or duties to a third
party, whether by contract, will or operation of law, without the Company's
prior written consent.

         5.3 Headings. The Article, Section, paragraph and subparagraph headings
are for convenience of reference only and shall not define or limit the
provisions hereof.

         5.4 Invalidity. If any provision of this Agreement is or becomes
invalid, illegal or unenforceable in any respect under any law, the validity,
legality or enforceability of the remaining provisions hereof shall not in any
way be affected or impaired.

         5.5 Waivers. No omission or delay by either party hereto in exercising
any right, power or privilege hereunder shall impair such right, power or
privilege, nor shall any single or partial exercise of any such right, power or
privilege, preclude any further exercise thereof, or the exercise of any other
right, power or privilege.

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

         5.7 Entire Agreement. This Agreement contains the entire understanding
of the parties and supersedes all prior agreements and understandings relating
to the subject matter hereof. No representation, promise or inducement has been
made by either party hereto that is not embodied in this Agreement and neither
party shall be bound by or liable for any alleged representation, promise or
inducement not set forth herein. This Agreement may not be amended, except by a
written instrument hereafter signed by each of the parties hereto.

         5.8 Interpretation. The parties hereto acknowledge and agree that each
party and its or his counsel reviewed and negotiated the terms and provisions of
this Agreement and have contributed to its drafting. Accordingly, (i) the rules
of construction to the effect that any ambiguities are resolved against the
drafting party shall not be employed in the interpretation of this Agreement,
and (ii) the terms and provisions of this Agreement shall be construed fairly as
to all parties hereto and not in favor of or against any party regardless of
which party was generally responsible for the preparation of this Agreement.

         5.9 Governing Law. This Agreement and the performance hereof shall be
construed and governed in accordance with Ontario law without reference to
principles of conflict of laws.

  DS                                                                        MR
<PAGE>

         IN WITNESS WHEREOF, each of the Company and the Consultant has caused
this Agreement to be signed by its duly authorized officer as of the day and
year first above written.

SMART CHIP TECHNOLOGIES                     AIROS GROUP INC.

By: /s/ David J. Simon                      By: /s/ Miki Radivojsa
----------------------------                   --------------------------
Name:  David J. Simon                          Name:  Miki Radivojsa
Title: Chairman                                Title: President

<PAGE>

                                   Schedule I

Service/Resource                                  Service Period
----------------                                  --------------

Software Developer - Carl Qiao     From July 15, 2002 through October 15, 2002

Software Developer - Wenjun Wang   From July 15, 2002 through October 15, 2002

Quality Assurance - TBA            From August 15, 2002 through October 15, 2002

Quality Assurance - TBA            From August 15, 2002 through October 15, 2002Exhibit 10.40

                                Letter of Intent

This Letter of Intent ("LOI") made this 15th day of May, in the year 2002 by and
between: CEO America, Inc. a Delaware Corporation, (CEO) and Schimatic Cash
Transactions Network.com, Inc., a Florida USA corporation with its head office
at 26800 Laguna Hills Dr. Suite 100, Aliso Viejo, CA 92656. dba Smart Chip
Technologies, LLC ("SCTN").

CEO America Inc , for consideration (the "Consideration") as outlined below,
intend to arrange with SCTN for the joint exploitation through CEO of certain
Intellectual Property and related assets that are listed on Exhibit "A" attached
("Assets") of SCTN.

This letter shall also serve as an expression of the intention of CEO and SCTN
to proceed expeditiously to negotiate, draft and execute a definitive purchase
agreement (the "Agreements"). The Agreements, when executed, will reflect the
terms of this letter, along with such representations and warranties, covenants,
agreements and other terms and conditions as are typical of transactions of this
size and such additional terms and conditions as the parties may agree. The
parties to the Agreement shall include CEO and SCTN and their representatives
who, as agreed by both parties are necessary to complete the transaction. The
following is a summary of certain principal terms and conditions of the proposed
transaction:

1) Asset Conveyance
SCTN will convey to CEO, for the Consideration, the Assets listed on Exhibit "A"
attached as provided by SCTN, subject to an exclusive license retained by SCTN
as provided below. CEO America will acquire all of the assets free and clear of
any lien, claim or interest of any other party, except the exclusive license
retained by SCTN as provided below.

2) Sale and transfer of IP
The LOI is intended to establish the basic principles for the absolute
conveyance of SCTN intellectual properties included in the Assets to CEO, which
will own such intellectual properties, subject to an exclusive license back to
SCTN for all intellectual property. Intellectual property is defined to include
software and patents representing SCTN's loyalty solution (the "SCTN IP"). CEO
will however have the right to use the IP for its CREDITZ system in America, at
a licensing fee reflecting [xx]% discount from the normal rate that SCTN
regularly charges unaffiliated customers. Prior to the second payment paid to
SCTN by CEO there will be a mutually agreed upon license agreement extended to
CEO.

The SCTN IP and Patent will be placed in a mutually satisfactory Escrow Trust
Account upon signing of this agreement, and will be transferred to CEO on or
before full payment of the Five Hundred Thousand ($500,000) Consideration
described below and the execution of a mutually acceptable exclusive license
agreement to SCTN.

3) Consideration
For the purposes of this letter of agreement and all future agreements all
consideration is in US dollars.

CEO will pay SCTN ($500,000) Five Hundred Thousand as follows: ($150,000) One
Hundred and Fifty Thousand, upon signing this agreement (see due diligence);
($350,000) Three Hundred and Fifty Thousand, on or about 21 days following
signing this agreement.

SCTN will submit a list of expenses to CEO for review and payment. All of which
will be administered in the following manner:

 DS                                                                         DV
<PAGE>

Prior to due diligence CEO will deposit in an escrow account arranged for the
purpose of this transaction, in an approved money center bank, the amount of One
Hundred and Fifty Thousand dollars ($150,000), to be applied to the total
Consideration to SCTN. CEO America will deposit an additional Three Hundred
Fifty Thousand dollars ($350,000) on or about 21 days of the signing of this
Letter into the same escrow account.

The escrow agent will have express written instructions to pay certain expenses,
not to exceed Two Hundred Fifty Thousand dollars ($250,000), approved by CEO.
The remaining Two Hundred Fifty Thousand dollars ($250,000) or more will be used
as necessary for negotiating settlement of the SCTN tax liability, and the
remainder will be released to SCTN upon approval of a payment schedule by the
tax authorities.

In addition, CEO understands that certain Note Holders of SCTN, representing
approximately $2 million dollars in outstanding liability to SCTN, have agreed
or will agree that should this Letter of Intent be accepted by the board of
SCTN, these note holders will agree to convert this outstanding liability to a
non-preferred equity position.

As additional Consideration. Both parties shall issue and deliver to the other
that number of shares of its common stock that, when issued, shall issue 20% of
the common stock of the respective company, on a fully diluted basis.

4) Due Diligence
The above item (3) is contingent on up to two days of due diligence within 10
days of acceptance of the Letter of Intent. CEO will conduct its due diligence
with the cooperation of the SCTN management and board. In a reasonable manner
CEO will be allowed to examine all of the pertinent data and information related
to the Acquired Assets, including but not limited to:

         (a)      Evaluation and Verification Human Relations and on Insurance
                  Coverage

         (b)      Patent documentation and related information

         (c)      Complete shareholder list

         (d)      Review all intellectual Property, Patent and related software
                  and hardware with all related corporate advisors

         (e)      Compete list of creditors including note holders and executed
                  Promissory and/or Convertible Notes

         (f)      Current expenses and projected expenses for the next two
                  months

         (g)      Accounting of deferred compensation.

Mutual due diligence of CEO America Inc. will not be unreasonable withheld by
CEO

5) Tax liability resolution
CEO will participate, as the lead in the negotiation of settling the balance of
SCTN's tax liability. Any remaining amount will become a joint liability of CEO
and SCTN after 120 days of this agreement regardless of these negotiations.

Except to the extent CEO expressly assumes liabilities in writing, CEO shall not
assume any liabilities contingent or otherwise, known or unknown, arising from
or related to the operation or activities of SCTN, its directors, officers,
agents, or otherwise. SCTN shall defend, indemnify and hold CEO harmless with
respect to all such liabilities and in connection with any representations,
warranties, covenants and agreements contained in the Agreement.

                                       2
 DS                                                                         DV
<PAGE>

6) Other investments and royalty considerations
CEO commits to include in it's current financing plan $5 million dollars
specifically directed to SCTN, budgeted by the board as may be required, subject
to review of a share reverse split of SCTN and all regulatory issues settled and
in good standing, the intention of which is to position the companies for a
possible future merger beneficial to both parties.

The $5 million raised by CEO will be directed to SCTN as budgeted by the board
of SCTN, paid to SCTN at the rate of Five Hundred Thousand dollars ($500,000)
every sixty (60) to ninety (90) days, or as required. Not less than 50% will go
directly to the technology development costs.

There will be a royalty guarantee to CEO of $500,000 after 2nd year and $1
Million for the third and $2 Million every subsequent year, which will be
calculated and deducted from the negotiated royalty that CEO America Inc. is
required to pay under its License agreement with SCTN. Should SCTN default CEO
will defer payment or exchange any outstanding amounts for shares in SCTN at
whatever the current price is at that time.

CEO will also include SCTN, wherever appropriate, as a participant, in contracts
and alliances of CEO. This will extend to include the current deployment plan of
CREDITZ in California and Houston, Texas.

The board will make available one seat on the board of SCTN to be mutually
agreed upon as to the most appropriate time to do so.

7) Conduct of Business
Following execution of this letter, SCTN agrees to (i) conduct its business as
it is presently conducted, (ii) maintain the information relating to the
acquired assets, (iii) not sell, dispose of, or disseminate any information
relating to the assets, or properties therein, except upon receipt of the
written consent of CEO.

8) Solicitation
Subject to SCTN's fiduciary obligations in general, neither SCTN nor their
respective employees, Agents, or other outside parties that may or may not be
related to the SCTN, will in any way solicit any competitive offers to acquire
the assets specified in this letter.

9) Compliance
Acquisition of the Acquired Assets complies with all Federal and State
Securities regulations. Should the CEO be required to "tender" interests of
individual investors who may have certain rights in the Acquired Assets, the
term of this letter shall be extended in order to complete the acquisition.

10) Fees and Costs
CEO and SCTN shall each individually be responsible for their respective costs
associated with the acquisition of the Acquired Assets, including any investment
banking, brokerage, consulting, legal, accounting or other fees or costs
arranged or incurred by such party in the course of facilitating and closing
this transaction.

11) Non-Disclosure
SCTN and CEO hereby agree not to disclose (except to their respective attorneys,
accountants, employees, officers or directors on a confidential and need-to-know
basis) any of the terms and conditions contained in this letter and/or the fact
that discussions are ongoing without the consent of the other parties unless
counsel to the disclosing party deems such disclosures required by law. SCTN and
CEO agree to consult with each other as to the form and substance of any press
release or any other public disclosure of the matters covered in this letter,
provided, that this shall not prohibit SCTN or CEO from making any disclosure
which its respective counsel deems required by law.

                                       3
 DS                                                                         DV
<PAGE>

12) Additional Conditions
This proposal and the transactions contemplated hereby are subject, among
others, to the following conditions (which can in the sole discretion of CEO be
waived): (a) all necessary corporate, regulatory or similar approvals, if any,
shall have been obtained; (b) there shall have been no material adverse change
in the acquired Assets other than those of which it has no control; (c) CEO
shall have completed its due diligence and be satisfied with the results, and,
if necessary, shall have reflected those results in the Agreement; (d) SCTN
shall have good and marketable title to the acquired Assets; and, (e) the
parties shall have signed the Agreement.

It is understood and agreed that this letter of intent is a summary of certain
principal terms of the proposal intended to be included in the Agreement and,
except for paragraphs 6, 7, 8, and 9, shall be non-binding on the parties.
Except as set forth in paragraphs 2(b), 6, 7 and 8, neither party shall be
required to take any further action, nor shall any liability attach, if either
party elects to discontinue negotiating with regard to the proposed transaction
before the Agreement is negotiated and executed.

13) Additional Conditions
Should CEO after its due diligence period not complete the transaction with
either the first and/or second payment on or before 21 days following acceptance
of this Letter, SCTN may option to repay CEO any payment in full plus any and
all legal costs incurred by CEO America Inc. upon which the IP and Patent shall
be returned to SCTN free and clear of any lien, claim or interest of any other
party. This agreement shall continue to be in force until such time as either
party notifies the other party in writing.

For further clarity, this does not give SCTN the right or option to change,
alter, cancel this agreement of any part thereof, except in the event where CEO
does not complete its 2nd payment to SCTN within 21 days following acceptance of
this letter.

This letter supercedes any and all prior correspondence, letters, or agreements
received between the parties. It is our desire to move expeditiously towards the
completion of this transaction on the basis of the terms and conditions
contained herein. To help accomplish this goal, if you are in agreement with the
foregoing, would you please indicate by signing and returning the attached copy
of this letter to the Undersigned. Nevertheless, in the event that a signed copy
of this letter is not received within 24 hours of the date of this letter, it
will be assumed that that there is no further in the terms of this letter and it
will be deemed automatically withdrawn.

                                               Very truly yours,

                                                /s/ David Vaters
                                               ---------------------------
                                               David Vaters,
                                               President/CEO
                                               CEO America, Inc.

Agreed to and Accepted this 17 day of May, 2002 by:

Signed by /s/ D. J. Simon, Chairman & CEO
Authorized Signature of
Officer of Schimatic Cash Transactions Network.com, Inc
dba Smart Chip Technologies, LLC.

                                       4

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