Document:

EX-10.3

SHARE AND WARRANT ISSUANCE AGREEMENT

Share and Warrant Issuance Agreement (this “Agreement”) dated as of May 27, 2005 by and
between Budgethotels Network Inc., a Nevada corporation, which shall be renamed Edentify, Inc.
(“Issuer”), and face2face animation, inc., a Delaware corporation (“Licensor”).

W I T N E S S E T H :

WHEREAS, Issuer is the sole shareholder of Edentify, Inc. (a Delaware corporation), which is
the sole shareholder of InMotion Biometrics, Inc.(“InMotion”);

WHEREAS, Edentify, InMotion, and Licensor, are parties to that certain Patent and Technology
License Agreement dated as of the date hereof (the “License Agreement”), pursuant to which, among
other things, Licensor is providing to Issuer an exclusive license (the “License”) to the
Technology and Patents (as defined therein) and that certain Development Agreement dated as of the
date hereof (the “Development Agreement”), pursuant to which, among other things, Licensor is
developing for Issuer certain Deliverables (as defined therein), each on the terms set forth
therein;

WHEREAS, it is a condition precedent to each of the License Agreement and Development
Agreement that Licensor and Issuer enter into this Agreement;

WHEREAS, Issuer desires to issue to the Licensor (i) seven million five hundred thousand
(7,500,000) shares (the “Shares”) of the common stock, par value $.0001 per share, of Issuer (the
“Common Stock”) and (ii) warrants exercisable for one million (1,000,000) shares of Common Stock of
Issuer in substantially the form attached hereto as Exhibit A (the “Warrants,” and together with
the Shares, the “Securities”), and the Licensor agrees to accept the Securities from Issuer in
consideration for the grant of the License and the entering into of the Development Agreement, upon
the terms and conditions hereinafter set forth; and

WHEREAS, Issuer shall not have sufficient shares to issue to Licensor until such time as
Issuer has completed a 1-for-10 reverse split of its Common Stock.

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

1. Issuance of the Securities. In consideration of Licensor’s execution and
delivery of the License Agreement and Development Agreement, and the grant to Issuer of the
rights provided thereunder, Issuer hereby issues and grants the Securities to Licensor, with the
delivery of the Securities to Licensor as follows:

a. At Closing (as hereinafter defined), Issuer shall deliver to Licensor one or
more stock certificates representing two million five hundred thousand (2,500,000)
 shares of Common Stock (the “Closing Shares”);

b. At Closing, Issuer shall deliver to Licensor the Warrants;

c. Upon acceptance of the Product by Issuer pursuant to the Development Agreement
(which acceptance shall not be unreasonably withheld), Issuer shall promptly
deliver or cause to be delivered to Licensor one or more stock certificates
representing two million five hundred thousand (2,500,000) shares of Common Stock;
and

d. Upon the closing of a sublicense or other agreement between Issuer and a
customer relating to the Product, Issuer shall promptly deliver or cause to be
delivered to Licensor one or more stock certificates representing two million five
hundred thousand (2,500,000) shares of Common Stock.

2. Escrow of Shares; Nondelivery. The balance of the shares not delivered to
Licensor at Closing pursuant to subparagraphs 1(c) and (d) hereof shall be held in escrow by
Issuer for the benefit of Licensor until the conditions of subparagraph 1(c) and 1(d) have been
fulfilled or waived; it being understood that Licensor shall have the exclusive rights during
such escrow period to vote such shares and own any dividends issued with respect thereto. In the
event that the conditions to delivery set forth in subparagraph 1(c) hereof are not met prior to
June 30, 2007 or the conditions to delivery set forth in subparagraph 1(d) hereof are not met
prior to June 30, 2007, the portion of such shares to the extent such conditions have not been
satisfied shall be forfeited by Licensor. In the event Issuer does not timely deliver to
Licensor any portion of the Securities as provided under Section 1 hereof, Issuer shall
immediately pay to Licensor (in addition to its obligations to deliver said Securities) the sum
of $100,000 in cash. In addition, in the event Issuer does not timely register any of the
Securities as provided in Section 6 hereof, at the option of Licensor Issuer shall immediately
issue and deliver to Licensor 1,920,000 shares of Common Stock (subject to adjustment for stock
dividends and the like) provided Licensor returns to Issuer all unexercised Warrants delivered to
Licensor (it being understood that to the extent any unexercised Warrants were transferred by
Licensor and can no longer be returned to Issuer, said 1,920,000 shares of Common Stock shall be
reduced by the amount of shares of Common Stock exercisable upon exercise of the unexercised
Warrants which were transferred by Licensor, if any).

3. Closing. The closing on this Share and Warrant Issuance agreement (the
“Closing”) shall take place at the offices of Issuer on such date as the Closing Shares are
available for issuance by Issuer but, in any event no later than July 31, 2005.

4. Representations and Warranties of Issuer. Issuer hereby represents and warrants
to the Licensor as of the date hereof and as of the Closing as follows:

a. Issuer has the corporate power and authority to execute and deliver this
Agreement and to consummate the transactions contemplated hereby. This Agreement
and the issuance of the Securities contemplated hereby have been duly authorized
by all necessary corporate action on the part of Issuer. This Agreement
constitutes the valid and legally binding obligation of Issuer, enforceable
against Issuer in accordance with its terms, except as may be limited by
principles of equity or by bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the enforcement of creditors’ rights generally.

b. The Securities are duly and validly issued, fully paid and non-assessable and
free and clear of all liens, encumbrances, security interests, restrictions,
options or other restrictions other than those imposed upon the Securities
pursuant to applicable federal and state securities laws.

c. Issuer (formerly budgethotels.com, Inc.) was incorporated under the laws of the
State of Nevada on November 5, 1997, as Info Center International, Inc., and, to
our knowledge, is in good standing under the laws of the jurisdiction in which it
was formed.

d. The authorized capital of Issuer consists of 50,000,000 shares of Common Stock
authorized with 50,000,000 shares of Common Stock outstanding.

e. Prior to July 31, 2005, Issuer intends to complete a reverse 1-for-10 reverse
split of its common stock in order to have sufficient shares of its common stock
available for issuance to Licensor under this Agreement.

5. Representations and Warranties of the Licensor. The Licensor hereby represents
and warrants to Issuer as of the Closing as follows:

a. The Licensor has the requisite power, capacity and authority to execute and
deliver this Agreement and to consummate the transactions contemplated hereby.
All action on the part of the Licensor necessary for the authorization, execution,
delivery and performance of this Agreement has been taken.

b. This Agreement constitutes the valid and binding obligation of the Licensor,
enforceable against the Licensor in accordance with its terms, except as may be
limited by principles of equity or by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally.

c. Licensor is acquiring the shares of Issuer to be received by it, for
investment, for its own account, and not with a view to the distribution of the
Issuer shares. In such connection, Licensor further represents and warrants that
it understands that Issuer is issuing the Issuer shares that it is designated to
receive, to it in reliance upon an exemption from the registration requirements
pursuant to Section 5 of the Securities Act (as hereinafter defined) and the rules
and regulations thereunder. Licensor agrees that the Issuer Shares (other than
those shares to be registered pursuant to this paragraph following such
registration) may not be sold, transferred, pledged, hypothecated, assigned or
otherwise disposed of by it unless Issuer shall have been supplied with evidence
reasonably satisfactory to it and its counsel that such transfer is not in
violation of the Securities Act. Furthermore, Licensor understands that the
certificates for the Issuer shares shall bear an appropriate restrictive legend to
reflect the foregoing restrictions and that stop transfer instructions will be
placed against the Issuer shares with respect thereto. Licensor consents to the
placing of such legend on the certificates for the Issuer shares.

d. Licensor is capable of fulfilling the requirements of the Development
Agreement.

6. Registration Rights.

a. Demand Right. For a period of one (1) year commencing no later than
ninety (90) days after the Closing, Licensor shall have the right to make one
demand for Issuer to file a registration statement under the Securities Act of
1933 (the “Securities Act”) on Form SB-2 (or such other form as is available to
Issuer) (a “Registration Statement”), as amended covering the resale of no more
than five hundred thousand (500,000) (the “Registrable Shares”) of the Shares in
the open market and shall maintain such Registration Statement as effective for a
continuous period lasting until the earlier of (i) twelve (12) months from the
date of effectiveness of such registration or (ii) such time as all the
Registrable Shares desired to be registered by Licensor have been sold (the
“Effectiveness Period”).

b. Piggyback Rights. In addition to the foregoing, if at any time during
the Effectiveness Period there is not one or more Registration Statements covering
the resale of all Shares and Issuer shall determine to prepare and file with the
SEC a registration statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity securities, other
than of Form S-4 or Form S-8 (each as promulgated under the Securities Act) or
their then equivalents relating to equity securities to be issued solely in
connection with any acquisition of any entity or business or equity securities
issuable in connection with stock option or other employee benefit plans, then
Issuer shall send to Licensor written notice of such determination at least 20
calendar days prior to the filing of such registration statement and if, within 15
calendar days after receipt of such notice Licensor shall so request in writing,
Issuer shall include in such registration statement the Closing Shares requested
by Licensor to be so included.

c. Rights with Regard to Shares Underlying Warrants. Licensor shall have
such registration rights with respect to the shares of Common Stock underlying the
Warrants as are set forth in a registration rights agreement provided to investors
of Issuer in any offering of securities commenced within ninety (90) days after
the Closing of this Agreement. To the extent such agreement is not entered into,
Licensor shall be entitled to similar registration rights afforded to the Closing
Shares.

d. Volume Restrictions on Sale of Registered Shares. Licensor shall sell
no more than 25% of the Registrable Shares per quarter (the “Volume Restriction”)
during the Effectiveness Period, provided however, that in the event Licensor
sells less than the Volume Restriction in any given quarter, the percentage
remaining unsold may be accumulated towards and sold in successive quarters.
Notwithstanding the foregoing, Licensor may not sell more than 50% of the
Registrable Shares during any given quarter unless such sale is during the fourth
quarter of the Effectiveness Period.

7. Survival. All covenants, agreements, representations and warranties made herein
shall survive the execution and delivery of this Agreement.

8. Further Assurances. Licensor and Issuer shall execute and deliver all such other
documents and instruments and take any other action as may be reasonably required by the other
party to effectuate the purposes of this Agreement.

9. Assignment. Issuer may not assign this Agreement or its rights hereunder without
the prior written consent of Licensor.

10. Entire Agreement; Amendment. This Agreement, together with the License
Agreement and the Development Agreement, contain the entire agreement and understanding between
the parties with respect to the subject matter hereof, and supersede any and all prior or
contemporaneous agreements between them. No modification, amendment, alteration or change in the
terms of this Agreement shall be effective unless same shall be in writing and signed by both of
the parties hereto.

11. Governing Law; Jurisdiction. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Delaware, without giving effect to
principles of conflict of laws.

12. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original but both of which when taken together shall constitute one and the
same instrument.

13. Severability. In the event that any provision of this Agreement becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or void, this
Agreement shall continue in full force and effect without said provision, and the parties agree
to negotiate, in good faith, a legal and enforceable substitute provision which most nearly
effects the parties’ intent in entering into this Agreement.

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IN WITNESS WHEREOF, the parties have executed this Share and Warrant Issuance Agreement as of
the day and year first above written.

ISSUER:

BUDGETHOTELS NETWORK, INC.

By: /s/ Terrence DeFranco

Name: Terrence DeFranco

Title: Chief Executive Officer

LICENSOR:

FACE2FACE ANIMATION, INC.

By: /s/ John Dorocki

Name: John Dorocki

Title: Executive Chairman

2EX-10.1

Exhibit 10.1

SECOND AMENDMENT TO AMENDED AND RESTATED

ESCROW AGREEMENT

This Second Amendment to Amended and Restated Escrow Agreement (“Second Amendment”), dated as
of the 30th day of August, 2005 (the “Effective Date”) is by and among Far East Energy
Corporation (“FEEC”), ConocoPhillips China Inc. (“CPI”), and JP Morgan Trust Company (the “Escrow
Agent”).

RECITALS

WHEREAS, the parties hereto are parties to that certain Amended and Restated Escrow Agreement
with an effective date of December 17, 2004 (“Amended Escrow Agreement”).

WHEREAS, Section 4 of the Amended Escrow Agreement provides that, in the event FEEC has not
completed drilling one Phase Two horizontal well by June 30, 2005, pursuant to that certain
Shouyang Amended Farmout Agreement and that certain Qinnan Amended Farmout Agreement, the amount
required to be held in escrow shall increase;

WHEREAS, pursuant to that certain Amendment to Amended and Restated Escrow Agreement, dated
effective June 24, 2005, the parties extended until August 31, 2005 the date for increasing the
amount held in escrow; and

WHEREAS, the parties hereto desire to extend such increase in the escrow amount under the
Amended Escrow Agreement for one (1) month.

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set
forth, the parties hereto agree as follows:

1. In each instance where the Amended Escrow Agreement requires an increase in the amount held
in escrow after June 30, 2005, the date therefor shall be amended to September 30, 2005.

2. This Second Amendment shall not affect any other provision of the Amended Escrow Agreement
other than as expressly stated herein, and the parties otherwise ratify and affirm all other
provisions of the Amended Escrow Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the Effective
Date set forth above.

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FAR EAST ENERGY CORPORATION

	 	 	 
	By:

	 	/s/ Bruce N. Huff
	
 
	 	 
	
 
	 	Bruce N. Huff

Chief Financial Officer

CONOCOPHILLIPS CHINA INC.

	 	 	 
	By:

	 	/s/ Steve Park
	
 
	 	 
	
 
	 	Steve Park

Vice President

JP MORGAN TRUST COMPANY, N.A.,

As Escrow Agent

	 	 	 
	By:

	 	/s/ May Ng
	
 
	 	 
	Name:

	 	May Ng
	
 
	 	 
	Title:

	 	Vice President, Trust Officer
	
 
	 	 
	 
	 	 

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