Document:

EX 10.4

ASSET
PURCHASE AGREEMENT

This
asset purchase agreement dated
for reference May 27, 2005, is between FII
International Inc., a
Nevada corporation of 1100 Melville Street, 6th Floor,
Vancouver, British Columbia, V6E 4A6 (“FII”) and
Patrizia
Leone-Mitchell, a
businesswoman of 1225 West 8th Avenue,
Vancouver, British Columbia, V6H 1C7 (the “Vendor”).

 

Whereas:

 

	
      A.
	
      the
      Vendor has agreed to transfer all of her interest in the Assets to FII
      pursuant to the terms and conditions of this
agreement;

 

	
      B.
	
      the
      Vendor previously lent FII the sum of US$2,500 pursuant to the Promissory
      Note, of which the full principal amount and all accrued interest is
      outstanding as of the Effective Date;

 

	
      C.
	
      in
      conjunction with the transactions contemplated by this agreement, the
      Vendor is willing to forgive all of FII’s obligations under the Promissory
      Note;

 

	
      D.
	
      immediately
      preceding the Effective Date, FII’s only asset was its interest in certain
      assets optioned to it pursuant to the Option Agreement, including the
      domain name www.fashion-international.com;

 

	
      E.
	
      FII
      has not exercised its option under the Option Agreement as of the
      Effective Date;

 

	
      F.
	
      the
      parties have agreed to cancel the Option
Agreement;

 

 

for
valuable consideration, the
receipt and sufficiency of which are acknowledged, the parties agree
that:

 

INTERPRETATION

 

	1.  	
      The
      definitions in the recitals are part of this
agreement.

 

	2.  	
      In
      this agreement:

 

	a.  	
      “Assets”
      mean the assets listed in Schedule “A” atached to this agreement and all
      documents and information related to the Assets.

 

	b.  	
      “Effective
      Date” means May 27, 2005.

 

	c.  	
      “Option
      Agreement” means the Option Agreement dated June 10, 2002 between FII and
      the Vendor and as modified by an Amending Agreement dated June 7, 2004
      between FII and the Vendor.

 

	d.  	
      “Promissory
      Note” means the Loan Agreement and Promissory Note dated January 21, 2005
      between FII and the Vendor.

 

	e.  	
      “Shares”
      means the 2 million Common Capital Shares in the capital of FII to be
      issued to the Vendor.

 

TERMS
AND CONDITIONS OF THE ACQUISITION

Forgiveness
of Promissory Note

 

	3.  	
      As
      of the Effective Date, the Vendor forgives FII of all of its duties and
      obligations to the Vendor under the Promissory Note and will deem the
      Promissory Note to have been paid in full.

 

 

Page
- 1- EX10.4

 

Cancellation
of Option Agreement

 

	4.  	
      As
      of the Effective Date, FII and the Vendor agree to cancel any and all
      rights and obligations under the Option Agreement and FII absolves the
      Vendor from any duties and obligations in favour of FII under the Option
      Agreement.

 

Acquisition
of Assets

 

	5.  	
      The
      Vendor will transfer all of her interest in the Assets to FII at Closing
      so that FII becomes the sole beneficial and legal owner of the Assets as
      of the Effective Date.

 

Payment
of Purchase Price

 

	6.  	
      As
      consideration for the forgiveness of the Promissory Note, the cancellation
      of the Option Agreement, and for the purchase and sale of the Assets, FII
      will pay the Vendor $10,000, payable by the issuance of 2 million
      restricted Common Capital Shares registered in the name of the Vendor (the
      “Shares”).

 

Closing

 

	7.  	
      At
      closing, the Vendor will deliver all the documents and information
      relating to the Assets, including any documents required for the transfer
      of any Assets.

	8.  	
      At
      closing, FII will deliver the following:

	a.  	
      a
      copy of all corporate documents required for the acquisition of the
      Assets, including director’s resolutions approving the payment of the
      purchase price for the Assets; and

	b.  	
      the
      share certificate representing the Shares.

 

REPRESENTATIONS
AND WARRANTIES

FII

 

	9.  	
      FII
      represents and warrants that:

 

	a.  	
      It
      is a company formed and in good standing under the laws of
      Nevada.

 

	b.  	
      It
      has the legal capacity and authority to make and perform this
      agreement.

 

	c.  	
      The
      signing of this agreement and the performance of its terms have been duly
      authorized by all necessary corporate actions including the resolution of
      the board of directors of FII.

 

	d.  	
      Any
      shares issued pursuant to the terms of this agreement will be subject to
      the trading restrictions set out in Section .

 

The
Vendor

 

	10.  	
      The
      Vendor represents and warrants that:

 

	a.  	
      The
      Vendor has the legal capacity and authority to make and perform this
      agreement.

 

	b.  	
      The
      Vendor owns the Assets free of any claim or potential claim by any person
      and has the authority to transfer the Assets as described in this
      agreement.

 

	c.  	
      No
      person has any right to acquire any interest in the Assets, with the
      exception of FII.

 

Page
- 2- EX10.4

 

COVENANTS
AND ACKNOWLEDGEMENTS

 

	11.  	
      The
      Vendor will indemnify FII from any and all debts or liabilities arising
      out of or from the Assets prior to the date of this
agreement.

       

	12.  	
      The
      Vendor consents to act as a director of FII and will continue to provide
      FII with her services that may be reasonably required for the development
      and use of the Assets.

       

	13.  	
      The
      Vendor acknowledges and understands that each certificate evidencing any
      Shares issued to her under this agreement and any other securities issued
      on any stock split, stock dividend, recapitalization, merger,
      consolidation, or similar event will be imprinted with legends
      substantially in the following form:

	14.  	
      “These
      securities are restricted securities as that term is defined in Rule 144
      under the U.S. Securities Act of 1933 (the “Act”). As restricted
      securities, they may be resold only in accordance with Regulation S under
      the Act or pursuant to an effective registration statement under the Act
      or an exemption from the Act.”The
      Vendor acknowledges that:

       

	a.  	
      there
      is no market for any Shares that may be issued to the Vendor pursuant to
      this agreement, that no market for such Shares may ever exist, and that
      such Shares will be issued pursuant to exemptions from registration and
      prospectus requirements that are available under the applicable securities
      acts;

       

	b.  	
      the
      Company is a “private issuer” as that term is defined in the applicable
      securities acts, and as such, the Shares are subject to restrictions on
      transfer. Accordingly, the Shares cannot be transferred without the
      previous consent of the directors expressed by resolution of the board of
      directors, at the sole discretion of the directors. Such restrictions on
      transfer will remain in effect until such time as FII is deemed to be a
      “reporting issuer” as that term is defined in the applicable securities
      acts;

       

	c.  	
      restrictions
      on the transfer, sale or other subsequent disposition of such Shares by
      the Vendor may be imposed by securities laws in addition to any
      restrictions imposed pursuant to Section 14.b. above;

       

	d.  	
      the
      Vendor has been advised by FII that she should consult her own legal
      adviser before disposing of all or any part of any Shares that may be
      issued to the Vendor pursuant to this agreement to avoid breach of
      relevant securities laws, regulations and policies;

       

	e.  	
      the
      Vendor has been given an adequate opportunity to ask questions of, and
      receive answers from, the officers of FII concerning the acquisition of
      the Shares and to obtain such additional information as the Vendor deems
      necessary in order to evaluate an investment in FII and FII has provided
      all information requested by the Vendor;

       

	f.  	
      neither
      FII nor any director of FII has made any representation about the present
      or future value of the Shares or about whether FII will ever become a
      reporting company or whether the Shares will ever become listed for
      trading on a stock exchange; and

       

	g.  	
      the
      Vendor has been advised that the business of FII is in a start-up phase
      and acknowledges that there is no assurance that FII will raise sufficient
      funds to adequately capitalize the business of that the business will be
      profitable in the future.

       

 

Page
- 3- EX10.4

 

OTHER
PROVISIONS

 

	15.  	
      The
      Vendor acknowledges that this agreement was prepared for FII by R. H.
      Daignault Law Corporation and that it may contain terms and conditions
      onerous to the Vendor. The Vendor expressly acknowledges that FII has
      given her adequate time to review this agreement and to seek and obtain
      independent legal advice, and the Vendor represents to FII that she has in
      fact sought and obtained independent legal advice and is satisfied with
      all the terms and conditions of this agreement.

       

	16.  	
      Time
      is of the essence of this agreement.

       

	17.  	
      This
      agreement is governed by the laws of British Columbia and must be
      litigated in the courts of British Columbia.

       

	18.  	
      Any
      notice that must be given or delivered under this agreement must be in
      writing and delivered by hand to the address or transmitted by fax to the
      fax number provided by the party and is deemed to have been received when
      it is delivered by hand or transmitted by fax unless the delivery or
      transmission is made after 4:00 p.m. or on a non-business day where it is
      received, in which case it is deemed to have been delivered or transmitted
      on the next business day. Any payments of money must be delivered by hand
      or wired as instructed in writing by the receiving party. Any delivery
      other than a written notice or money must be made by hand at the receiving
      party’s address.

       

	19.  	
      The
      Vendor may not assign this agreement or any part of it to another
      party.

       

	20.  	
      Any
      amendment of this agreement must be in writing and signed by the
      parties.

       

	21.  	
      This
      agreement enures to the benefit of and binds the parties and their
      respective successors, heirs and permitted assignees.

       

	22.  	
      No
      failure or delay of FII in exercising any right under this agreement
      operates as a waiver of the right. FII’s rights under this agreement are
      cumulative and do not preclude FII from relying on or enforcing any legal
      or equitable right or remedy.

       

	23.  	
      If
      any provision of this agreement is illegal or unenforceable under any law,
      then it is severed and the remaining provisions remain legal and
      enforceable.

       

	24.  	
      This
      agreement may be signed in counterparts and delivered to the parties by
      fax, and the counterparts together are deemed to be one original
      document.

       

The
parties’
signatures below are evidence of their agreement.

FII
International Inc.

 /s/
Sean Mitchell

Authorized
signatory

May 27,
2005

 /s/
Patrizia Leone-Mitchell

Patrizia
Leone-Mitchell

May 27,
2005

 

Page
- 4- EX10.4

Schedule
“A”

Schedule
“A” to the Asset Purchase Agreement

between
FII International Inc. and Patrizia Leone-Mitchell

dated for
reference the 27th day of
May, 2005

(number
of pages including this one: 1)

Assets

The
following is the description of the Assets.

1.  The
domain name “fashion-international” registered with VeriSign.

2.  All
notes, data, records, and materials in any format that relate to the domain
name.

3.  The
website and its
design and layout structure.

4.  All the
content previously prepared for the website.

5.  The
business plan for “fashion international” prepared by the Vendor.

 

Page
- 5- EX10.4Exhibit 10.1

 

SECOND AMENDMENT TO LEASE
AGREEMENT

 

THIS SECOND AMENDMENT TO LEASE AGREEMENT (“Amendment”) is made and entered into as of
the 29th day of April, 2005, by and between CSM
PROPERTIES, INC., a Minnesota corporation (“Landlord”) and PPT VISION, INC., a Minnesota corporation (“Tenant”).

 

RECITALS

 

A.                                   Landlord and Tenant entered into that certain
Lease dated July 17, 1998, as amended by that certain Addendum to Lease
dated July 26, 1999, as further amended by that certain First Amendment of
Lease dated October 28, 1999 (collectively, the “Lease”) pursuant
to which Tenant leases from Landlord approximately 64,112 square feet of space
located in the Prairie Crossroads Corporate Center, as more particularly
described in the Lease (the “Premises”).

 

B.                                     The parties desire to amend the Lease in
accordance with the terms and conditions set forth below.

 

AGREEMENT

 

NOW THEREFORE,
in consideration of the mutual promises herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Lease is hereby supplemented, amended and modified as
follows:

 

1.                                       Reduction of Premises.  As of
May 1, 2005 (the “Reduction Date”), Tenant shall surrender to Landlord
that portion of the Premises consisting of approximately 28,977 rentable square
feet which is depicted on the attached Exhibit A
attached hereto (the “Surrender Space”). 
As of the Reduction Date (i) the Premises shall consist of
approximately 35,135 rentable square feet as depicted on Exhibit A-1
attached hereto, subject to final measurement, and (ii) Tenant’s Pro-Rata
Share of operating expenses shall be forty three and 45/100 percent
(43.45%).  Tenant’s Base Rent for the
remaining Premises shall reduced in accordance with Section 3
of this Amendment.

 

2.                                       Lease Term.  The
term of the Lease shall be extended for an additional twenty four (24) month
period, commencing June 1, 2009 and expiring May 31, 2011.  Section 14.14 (Right to Terminate) of
the Lease is hereby deleted.

 

3.                                       Base Rent.  As of
April 29, 2005, Tenant is in default on its payment of Base Rent and
operating expenses under the Lease in the amount of Two Hundred Ninety Eight
Thousand Three Hundred One and No/100 Dollars ($298,301.00) (the “Delinquent
Rent”).  Tenant shall pay the Delinquent
Rent to Landlord concurrently with the execution of this Amendment.  Tenant shall also pay a lease reduction
penalty (“Penalty”) in the amount of Two Hundred Forty Thousand and No/100
Dollars ($240,000.00) in twelve (12) equal monthly installments of Twenty Thousand
and No/100 Dollars ($20,000.00) on or prior to the first day of each month
commencing May 1, 2005 through April 1, 2006, in addition to Tenant’s
existing rent obligations.  Landlord has
also agreed to reduce Tenant’s Base Rent for the remaining Premises to Eight
and 10/100 Dollars ($8.10) per rentable square foot for the period commencing May 1,
2005 through May 31, 2009, and Eight and 91/100 Dollars ($8.91) per
rentable square foot for

 

 

the period commencing June 1, 2009 through May 31,
2011.  Tenant’s revised Base Rent
obligations (including the Penalty) are summarized as follows:

 

	
  Months

  	
   

  	
  Monthly Base Rent

  	
   

  	
  Per Rentable Sq. Ft.

  	
   

  
	
  5/1/2005
  – 4/30/2006

  	
   

  	
  $

  	
  43,716.13

  	
   

  	
  $

  	
  14.93

  	
   

  
	
  5/1/2006
  – 5/31/2009

  	
   

  	
  $

  	
  23,716.13

  	
   

  	
  $

  	
  8.10

  	
   

  
	
  6/1/2009
  – 5/31/2011

  	
   

  	
  $

  	
  26,087.74

  	
   

  	
  $

  	
  8.91

  	
   

  

 

Notwithstanding
the foregoing, if Tenant fails to pay Base Rent and the installments of the
Penalty on time during the period commencing May 1, 2005 through April 30,
2006 (with time being of the essence) then Landlord shall have the right to (i) withdraw
the foregoing alternative rent schedule and to require Tenant to
immediately pay all delinquent amounts under the original terms of the Lease,
and (ii) exercise any and all other remedies available to Landlord under
the Lease, at law or in equity.

 

4.                                       Surrender.  On
the Reduction Date, Tenant shall surrender possession of the Surrender Space in
the condition required by Section 5.3 of the Lease, the same as if the
Lease were being terminated.  As of the
Reduction Date, Tenant shall and hereby does transfer, convey, quitclaim and
assign to Landlord all of its rights and interests in and to the Surrender
Space; provided the foregoing does not in any way relieve Tenant from its
obligations under Section 5.3 with respect to the Surrender Space or
Tenant’s obligation to pay Base Rent and its Pro-Rata Share of operating
expenses on the remaining Premises.

 

5.                                       Failure to Surrender. 
Notwithstanding anything to the contrary contained herein or in the
Lease, Tenant shall have no right to extend the term of the Lease with regard
to the Surrender Space beyond the Reduction Date.  If Tenant fails to surrender possession of
the Surrender Space to Landlord in the condition required by this Amendment by
12:00 noon on the Reduction Date, then Landlord or its authorized agent, in
addition to any and all remedies it may have under the Lease, this Amendment,
at law or in equity, shall have the right to immediately recover from Tenant (i) possession
of the Surrender Space, and Tenant agrees not to contest any court action or
proceedings brought by Landlord or its agent to recover possession of the
Surrender Space from Tenant, and (ii) damages that may be asserted against
Landlord or that Landlord may incur from such holding over by Tenant.  Tenant further specifically agrees to
indemnify, hold harmless and defend Landlord from and against any and all
liability, loss, cost, damages, claims, actions, or causes of action (including
court costs, witness fees, and reasonable attorneys’ fees) asserted against or
incurred by Landlord by reason of Tenant’s failure to timely surrender
possession of the Premises in accordance with the terms of this Amendment.

 

Without
limiting the foregoing, and in addition to any other rights or remedies of
Landlord under the Lease, this Amendment, at law or in equity, if Tenant does
not return possession of the Surrender Space to Landlord in the physical
condition required by this Amendment, then (i) any of Tenant’s personal
property, furniture, fixtures, equipment or belongings that are not removed on
or before the Reduction Date shall be deemed abandoned, and Tenant agrees that
Landlord shall have no duty of care with respect to such property and that
Landlord or its authorized agent may remove and dispose of such property as it
deems prudent and any cost in regard thereto shall be payable by Tenant to
Landlord as additional rent, (ii) Landlord may repair and restore the
Surrender Space to the condition required by the terms of this Amendment and
recover the costs of doing 

 

 

so
from Tenant and (iii) Tenant agrees to indemnify, hold harmless and defend
Landlord from and against any and all liability, loss, cost, damages, claims,
actions, or causes of action (including court costs, witness fees and
reasonable attorneys’ fees) incurred by or asserted against Landlord by reason
of Tenant’s failure to return possession of the Surrender Space in the physical
condition required by this Amendment.

 

6.                                       Landlord’s Work.  Landlord,
at its sole cost and expense (except as provided below), will complete the
construction of the interior improvements to the Premises described in the
floor plan and specifications attached hereto as EXHIBIT B
(collectively, “Landlord’s Work”). 
Any changes or modifications to Landlord’s Work shall be made and
accepted by written change orders or agreement signed by Landlord and Tenant
and shall constitute an amendment to this Lease.  Tenant shall reimburse Landlord, within
fifteen (15) days after written request, for the cost of any change orders that
increase the total cost of Landlord’s Work. 
Notwithstanding anything to the contrary, Tenant shall pay One Hundred and Forty Thousand and No/100 Dollars
($140,000.00) (the “Tenant Improvement Funds”) to Landlord for the cost of the
Landlord’s Work concurrently with the execution of this Amendment.

 

7.                                       Final Measurement.  As
soon as reasonably possible after the Reduction Date, Landlord will provide
Tenant with a calculation of the rentable area of the Premises as determined by
Landlord.  Thereafter, Landlord and
Tenant shall execute an addendum to the Lease substantially in the form
attached hereto as Exhibit C,
confirming said determination and adjusting, to the extent applicable, (i) the
area of the Premises, (ii) the Base Rent, and (iii) Tenant’s Pro-Rata
Share of operating expenses to reflect the actual rentable square foot area of
the Premises.  Until such time as said
as-built measurements are available, Tenant agrees that the estimated square
feet of rentable area of the Premises set forth in Section 1 above shall
be utilized to compute Base Rent, Tenant’s Pro-Rata Share of Operating Expenses
and any other sums due hereunder based in whole or in part on the square
footage of the Premises and Landlord shall reconcile such amounts paid if the
actual rentable square footage is different than that set forth in Section 1
hereof.

 

8.                                       Utilities.  Any
utilities that cannot be separately metered to the remaining Premises shall be
paid by Landlord and included within the definition of operating expenses of
which Tenant shall reimburse Landlord it Pro-Rata Share thereof.

 

9.                                       Brokerage.  Each
of the parties represent and warrant that there are no claims for brokerage
commissions or finder’s fees in connection with this Amendment, and agrees to
indemnify the other against, and hold it harmless from all liabilities arising
from any such claim, including without limitation, the costs of attorney’s fees
in connection therewith.

 

10.                                 Miscellaneous.  Except as otherwise
provided herein, all capitalized terms used herein shall have the meaning
ascribed to them in the Lease.  Except as specifically modified herein, all of the covenants,
conditions, and obligations under the Lease shall remain unchanged and in full
force and effect. In the event of a conflict between the terms of the
Lease and this Amendment, the terms of this Amendment shall prevail. This
Amendment shall be binding upon the parties hereto and their respective
successors and assigns.  This Amendment
may be executed in one or more counterparts each of which when so executed and
delivered shall constitute an original, but together said counterparts shall
constitute one and the same instrument. 
Execution 

 

 

copies
of this Amendment may be delivered by facsimile, and the parties hereto agree
to accept and be bound by facsimile signatures hereto.  The signature of any party on a facsimile
document, for purposes hereof, is to be considered to have the same binding
effect as an original signature on an original document.  At the request of either party, any facsimile
document is to be re-executed in original form by the party who executed the
original facsimile document.  Neither
party may raise the use of a facsimile machine or the fact that any signature
was transmitted through the use of a facsimile machine as a defense to the
enforcement of this Amendment. 
Notwithstanding anything to the contrary contained herein, if Tenant
does not pay to Landlord the Delinquent Rent and the Tenant Improvement Funds
within five (5) business days of the execution of this Amendment, then
Landlord may terminate this Amendment by delivering written notice to Tenant.

 

IN
WITNESS WHEREOF, the parties have executed this Amendment as
of the day and year first above written.

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  CSM PROPERTIES, INC.

  	
  PPT VISION, INC.

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  
	
  Print Title:

  	
   

  	
   

  	
  Print Title:

  	
   

  	
   

  
												

 

 

EXHIBIT A

 

SURRENDER SPACE

 

 

 

EXHIBIT A-1

 

PREMISES

 

 

 

EXHIBIT B

 

LANDLORD’S WORK

 

 

EXHIBIT C

 

ADDENDUM TO SECOND AMENDMENT TO LEASE

 

THIS ADDENDUM TO SECOND AMENDMENT TO LEASE (“Addendum”) is
entered into this        day of                     ,
2005 between CSM PROPERTIES, INC., a Minnesota
corporation (“Landlord”) and PPT VISION, INC., a Minnesota corporation (“Tenant”) and modifies that certain Second Amendment to Lease
dated April 29, 2005 (the “Amendment”).

 

The
Amendment is amended as follows:

 

1.                                       Premises. 
Landlord and Tenant acknowledge and confirm that according to the “as-built”
measurements the Premises consists of                       
rentable square feet.

 

2.                                       Base Rent.

 

	
  Months

  	
   

  	
  Monthly Base Rent

  	
   

  	
  Per Rentable Sq. Ft.

  	
   

  
	
  5/1/2005
  – 4/30/2006

  	
   

  	
  $

  	
   

  	
  $

  	
  14.93

  	
   

  
	
  5/1/2006
  – 5/31/2009

  	
   

  	
  $

  	
   

  	
  $

  	
  8.10

  	
   

  
	
  6/1/2009
  – 5/31/2011

  	
   

  	
  $

  	
   

  	
  $

  	
  8.91

  	
   

  

 

3.                                       Pro-Rata Share. 
Landlord and Tenant acknowledge and confirm that Tenant’s Pro-Rata Share
of operating expenses shall be        percent (      %).

 

4.                                       Miscellaneous.  If
any provision of the Amendment is inconsistent with the provisions contained
herein, then and in such event, the provisions of this Addendum shall
control.  Except as expressly modified
herein, all other terms and conditions of the Amendment shall remain unchanged,
and in full force and effect.

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  CSM PROPERTIES, INC.

  	
  PPT VISION, INC.

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  
	
  Print Title:

  	
   

  	
   

  	
  Print Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]