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fp0000576_ex10-23.htm

    
    

     

    
      
        	

                
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      Product
and Market Development Agreement

       

      This
Agreement (“Agreement”) is
entered into and made effective as of December 4, 2008 (the “Effective Date”) by
and between LG Innotek Co., Ltd., a Korean corporation with offices at 20,
Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea (“LGIT”) and
ParkerVision, Inc., a Florida corporation with offices at 7915 Baymeadows Way,
Suite 400, Jacksonville, Florida 32256 (“ParkerVision”).

       

      Recitals

       

      WHEREAS,
ParkerVision has developed and patented technology that is designed to address
certain limitations in applying traditional approaches to RF transmission,
reception, and power amplification, and

       

      WHEREAS,
LGIT desires to develop in conjunction with ParkerVision, and ParkerVision
desires to develop in conjunction with LGIT, ParkerVision RF Components (as
defined below) to meet the market requirements for handset and data card
products, and

       

      WHEREAS,
LGIT also desires to have ParkerVision supply, and ParkerVision desires to
supply, ParkerVision RF Components that LGIT will design into LGIT RF Products
(as defined below) for application into handset and data card products,
and

       

      WHEREAS,
the parties desire to market and promote LGIT RF Products to the mobile
communications community, including mobile handset and data card OEMs, and
chipset suppliers internationally.

       

      NOW,
THEREFORE, in consideration of the foregoing premises and of the performance of
the mutual covenants herein, the parties agree as follows:

       

      1. DEFINITIONS

       

      1.1 “Confidential
Information” has the meaning set forth in Section 10.1.

       

      1.2 “Development Tools”
means the ParkerVision development tools described in the Statement of
Work.

       

      1.3 “Improvements” means
any improvement, including without limitation variations, optimizations,
enhancements, modifications, or derivatives obtained, developed, created,
synthesized, designed, derived or resulting from, based upon or otherwise
generated (whether directly or indirectly, or in whole or in part).

       

      1.4 “Intellectual Property
Rights” means patents, certificates of invention, utility models, design
rights and similar invention rights, copyrights, trade secret rights, mask work
rights, and any other intangible property or proprietary rights (other than
trademarks, trade names, service marks and trade dress rights) recognized
anywhere in the world under any state or national statute or treaty or common
law right, including without limitation all applications and registrations with
respect to any of the foregoing.

       

      
        
          
          

        

        
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      1.5 “ParkerVision RF
Components” means integrated circuits based on the Specifications in an
SOW.

       

      1.6 “ParkerVision
Software” means any software or firmware provided by ParkerVision to
LGIT, including software included within any Development Tools that may be
provided under this Agreement, or any software or firmware loaded onto
ParkerVision RF Components.

       

      1.7 “LGIT RF Products”
means RF products to be manufactured and sold by LGIT that incorporate the
ParkerVision RF Components.

       

      1.8 “Specifications” means
the specifications for the ParkerVision RF Components, such specifications to be
jointly developed by the parties pursuant to an SOW, executed by both parties,
and attached as an Exhibit to an SOW.

       

      1.9 “SOW” means a
Statement of Work for development of a ParkerVision RF Component containing the
Specifications, tasks, deliverables, target delivery dates and
payments.  The SOW under this Agreement is set forth in Exhibit A attached
hereto and may be modified by mutual written agreement.

       

      2. PARKERVISION
RESPONSIBILITIES

       

      2.1 Development
Plan.  Subject to the terms and conditions set forth in the
SOW, ParkerVision shall use commercially reasonable efforts to develop the
ParkerVision RF Components to meet the Specifications in accordance with the
schedule set forth in the SOW.  ParkerVision shall, monthly or if
requested by LGIT from time to time during the term of this Agreement, submit to
LGIT a written progress report (“Progress Report”)
documenting the work ParkerVision has completed during the period between each
Progress Report.  The Progress Report shall be in sufficient detail to
clearly indicate the progress made toward achieving the objectives and
milestones set forth herein and specified by LGIT, and achieving compliance with
the Specifications and any other requirements of the SOW for the work to be
performed by ParkerVision hereunder.

       

      2.2 License
Grant.  ParkerVision hereby grants LGIT, for the term of this
Agreement, a nonexclusive, royalty-free, and nontransferable license, under
ParkerVision’s Intellectual Property Rights, to use and reproduce any
ParkerVision Software and use any other items provided by ParkerVision hereunder
as may be reasonably necessary solely for the purposes of fulfilling LGIT’s
specific development tasks under the SOW and to incorporate the ParkerVision RF
Components into LGIT RF Products.

       

      
        
          
          

        

        
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      2.3 No Reverse
Engineering. LGIT shall not (a) reverse engineer or reconfigure the
ParkerVision RF Components or any of its elements other than as reasonably
required for the development of the LGIT RF Products for the purposes of this
Agreement, (b) modify, translate, reverse engineer, decompile, disassemble or
otherwise attempt (i) to defeat, avoid, bypass, remove, deactivate or
otherwise circumvent any software protection mechanisms in the ParkerVision
Software including without limitation any such mechanism used to restrict or
control the functionality of the ParkerVision Software, or (ii) to derive
the source code or the underlying ideas, algorithms, structure or organization
from the ParkerVision Software or ParkerVision RF Components; (c) alter, adapt,
modify or translate the ParkerVision Software in any way for any purpose,
including without limitation error correction; or (d) distribute, rent, loan,
lease, transfer or grant any rights in the ParkerVision Software or
modifications thereof in any form to any person or entity.

       

      2.4 Development
Tools.  Upon request of LGIT, ParkerVision shall provide to
LGIT pursuant to mutually agreeable terms and conditions certain Development
Tools as described in the SOW.  LGIT agrees to use items delivered to
it by ParkerVision solely for the purposes consistent with this Agreement,
agrees not to dispose of items delivered to it by ParkerVision hereunder and/or
pursuant to the SOW (by sale, transfer or otherwise) without the prior written
consent of ParkerVision, and agrees not to disclose or use such items in any
manner inconsistent with the limitations imposed upon such use and disclosure by
ParkerVision.

       

      2.5 Engineering
Personnel.  As specified in the SOW, ParkerVision shall provide
a suitably qualified and reasonably staffed engineering support team with
clearly defined contact points and escalation processes. Each party shall
appoint one (1) project manager who will act as a general liaison with the other
party for the term of this Agreement.

       

      2.6 Support
Services.  After completion of each party’s tasks specified in
the SOW and acceptance by LGIT of ParkerVision’s Final Deliverable (as defined
below) under the SOW, ParkerVision shall provide to LGIT reasonable technical
support as LGIT may request from time to time.

       

      3. DELIVERY
AND ACCEPTANCE

       

      3.1 Deliverables.  ParkerVision
shall develop and deliver to LGIT the deliverables specified in the SOW in
accordance with the terms and conditions of this Agreement. Subject to the terms
and conditions set forth in the SOW, deliverables to be provided by ParkerVision
are set forth in the SOW and may include a description of the technical approach
selected for implementing the ParkerVision RF Components, a development program
plan identifying program tasks, responsibilities, and schedules, the completion
of development tasks, suggested development schedules with key milestones and
design reviews, and the delivery of the Development
Tools.  ParkerVision may also provide specifications and best-practice
guidelines for system level design, pursuant to the SOW.

       

      
        
          
          

        

        
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      3.2 Acceptance.
ParkerVision shall, [*], deliver to LGIT the deliverables specified in the SOW
at the place designated by LGIT, and shall use commercially reasonable efforts
to complete the delivery by the agreed delivery schedule (“Delivery
Date”).  LGIT shall conduct acceptance testing of the
deliverables (“Acceptance Test”) and
notify ParkerVision of the results of the Acceptance Test in writing within [*]
days after the delivery of the deliverables. Upon successful completion of, and
closure of action items from the review and Acceptance Test of, the final
deliverable in the SOW (the “Final Deliverable”),
LGIT shall accept such Final Deliverable.  If within [*] days of such
review and Acceptance Test, LGIT fails to provide ParkerVision with either
written notice of acceptance or written notice of rejection of the Final
Deliverable, LGIT will be deemed to have accepted such Final
Deliverable.

       

      3.3 Rejection.  LGIT
may, in good faith and after determining that the Final Deliverable does not
comply in all material respects with the Final Deliverable requirements set
forth in the SOW, reject such Final Deliverable; provided that LGIT provides
written documentation to ParkerVision noting the areas in which the Final
Deliverable fails to comply with the requirements set forth in the
SOW.  If LGIT rejects, in good faith, the Final Deliverable specified
in the SOW after attempts to correct by ParkerVision made within [*] months from
the Effective Date, then LGIT may, at its sole option, pursue any of the
following options upon provision of written notice to ParkerVision:

       

      3.3.1 terminate
this Agreement immediately;

       

      3.3.2 continue
to allow ParkerVision to correct the Final Deliverable based on the existing
Specifications or based on mutually agreed revised Specifications;
or

       

      3.3.3 choose to
accept the non-compliant Final Deliverable based on the existing Specifications
or based on mutually agreed revised Specifications.

       

      The
parties acknowledge and agree that the above options in 3.3.1,
3.3.2 and
3.3.3 of
this Section 3.3 (Rejection) are not mutually exclusive.

       

      4. LGIT
RESPONSIBILITIES

       

      4.1 Development of LGIT RF
Product.  LGIT shall use commercially reasonable efforts to
fulfill its obligations under the SOW and to incorporate the ParkerVision RF
Components into the LGIT RF Products for production release.

       

      4.2 LGIT Testing
Equipment.   LGIT shall provide pursuant to mutually
agreeable terms and conditions certain testing equipment to ParkerVision (“LGIT Testing
Equipment”) as specified in the SOW.  ParkerVision agrees to
use LGIT Testing Equipment delivered to it by LGIT solely for the purposes
consistent with this Agreement, agrees not to dispose of items delivered to it
by LGIT hereunder and/or pursuant to the SOW (by sale, transfer or otherwise)
without the prior written consent of LGIT, and agrees not to disclose or use
such items in any manner inconsistent with the limitations imposed upon such use
and disclosure by LGIT.  

       

      
        
          
          

        

        
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      4.3 Support.  LGIT
shall be responsible for providing any technical support to its end-user
customers as necessary for using the LGIT RF Products.

       

      5. JOINT
RESPONSIBILITIES

       

      5.1 Specifications.  The
parties agree to work together to define Specifications that will address the
market requirements for incorporating ParkerVision RF Components into LGIT RF
Products for application into handset and data card products.

       

      5.2 Marketing and
Promotion.  The parties also agree to use commercially
reasonable efforts to market and promote such LGIT RF Products to the mobile
terminal industry, to identify target customers to market and promote the LGIT
RF Products, and cooperate in promoting the LGIT RF Products to such potential
customers as chipset vendors, mobile terminal OEMs and service providers
internationally.

       

      6. PURCHASING
TERMS

       

      6.1 Known Good
Die.  ParkerVision shall sell to LGIT Known Good Die (KGD)
ParkerVision RF Components in the form of unpackaged integrated
circuits.  ParkerVision shall provide reasonable purchasing terms,
once the development work under this Agreement and the SOW is successfully
completed, outlining pricing and delivery information relating to the sale of
ParkerVision RF Components to LGIT.

       

      6.2 Field of
Use.  LGIT shall only sell ParkerVision RF Components
incorporated into LGIT RF Products for use in commercial mobile handset or
datacard applications employing waveform standards GSM, EDGE, WCDMA, HSPA in any
combination or subset therein as defined by the 3GPP standards
body.

       

      6.3 Additional
Consideration.

       

      6.3.1 Intent.  ParkerVision
intends to work with LGIT to aid it in its efforts to develop and commercialize
the LGIT RF Products during the term of the Agreement as set forth in this
Agreement.  ParkerVision intends to work with LGIT to provide it with
the unique solutions defined within the SOW and the high quality technical and
business support that is reasonably needed to meet both parties’ commercial
objectives related to the ParkerVision RF Components developed under the terms
of this Agreement. Both parties believe that the successful commercialization of
the LGIT RF Product can result in LGIT becoming a leading global supplier in the
market for HEDGE RF modules for mobile handset and datacard
applications.

       

      [*]

       

      
        
          
          

        

        
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      7. FEES
AND PAYMENT

       

      7.1 Expenses.  Each
party agrees to furnish, [*], all tools and materials necessary to perform its
obligations under this Agreement and shall bear all expenses associated with
such performance unless specified
otherwise in the SOW or otherwise agreed by the parties.

       

      [*]

       

      8. OWNERSHIP

       

      8.1 ParkerVision.

       

      8.1.1 ParkerVision RF Components
and Development Tools.  ParkerVision hereby retains all right,
title and interest in and to the Intellectual Property Rights relating to the
ParkerVision RF Components and any Development Tools provided under this
Agreement regardless of whether developed prior to or pursuant to this
Agreement.  ParkerVision shall have the exclusive right to apply for
or register patents, copyrights, and such other proprietary protections as it
wishes with respect to the ParkerVision RF Components and any Development Tools
provided under this Agreement.

       

      8.1.2 Improvements.  ParkerVision
shall be the sole and exclusive owner of any and all right, title and interest
in and to any Improvements to ParkerVision RF Components that may be jointly
developed (i.e., jointly authored, as defined under United States Copyright Act
(Title 17 of the United States Code), or jointly invented, as defined under the
United States Patent Act (Title 35 of the United States Code), regardless of
whether such Improvements to ParkerVision RF Components are patented or
patentable) by one (1) or more employees of ParkerVision and one (1) or more
employees of LGIT hereunder, and all Intellectual Property Rights
therein.  LGIT hereby irrevocably transfers, conveys and assigns, and
agrees to irrevocably transfer, convey and assign, to ParkerVision, without
reservation and in perpetuity, all right, title, and interest that LGIT may have
in and to any such jointly developed Improvements to ParkerVision RF Components,
including without limitation all Intellectual Property Rights with respect
thereto in any and all countries.  ParkerVision shall have the
exclusive right to apply for or register patents, copyrights, and such other
proprietary protections as it wishes.  LGIT agrees to execute such
documents, render such assistance, and take such other action as ParkerVision
may reasonably request, at ParkerVision’s expense, to apply for, register,
perfect, confirm, and protect ParkerVision’s rights in any Improvements to
ParkerVision RF Components.

       

      8.2 LGIT.

       

      8.2.1 LGIT RF
Products.  LGIT hereby retains all right, title and interest in
and to the Intellectual Property Rights relating to the LGIT RF Products except
for ParkerVision RF Components incorporated therein.  LGIT shall have
the exclusive right to apply for or register patents, copyrights, and such other
proprietary protections as it wishes with respect to the LGIT RF Products except
for ParkerVision RF Components incorporated therein.

       

      
        
          
          

        

        
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      8.2.2 Improvements.  LGIT
shall be the sole and exclusive owner of any and all right, title and interest
in and to any Improvements to LGIT RF Products that may be jointly developed
(i.e., jointly authored, as defined under United States Copyright Act (Title 17
of the United States Code), or jointly invented, as defined under the United
States Patent Act (Title 35 of the United States Code), regardless of whether
such Improvements to LGIT RF Products are patented or patentable) by one (1) or
more employees of ParkerVision and one (1) or more employees of LGIT hereunder,
and all Intellectual Property Rights therein.  ParkerVision hereby
irrevocably transfers, conveys and assigns, and agrees to irrevocably transfer,
convey and assign, to LGIT, without reservation and in perpetuity, all right,
title, and interest that ParkerVision may have in and to any such jointly
developed Improvements to LGIT RF Products, including without limitation all
Intellectual Property Rights with respect thereto in any and all
countries.  LGIT shall have the exclusive right to apply for or
register patents, copyrights, and such other proprietary protections as it
wishes.  ParkerVision agrees to execute such documents, render such
assistance, and take such other action as LGIT may reasonably request, at LGIT’s
expense, to apply for, register, perfect, confirm, and protect LGIT’s rights in
any Improvements to LGIT RF Products.  For purposes of this Section
8.2.2 (Improvements), the way in which ParkerVision RF Components are integrated
into the LGIT RF Products is not considered an Improvement to the LGIT RF
Product.

       

      9. PUBLIC
ANNOUNCEMENT

      

      The
parties agree that neither party shall make any other announcement concerning
the execution or content of this Agreement without the other party’s express
written consent.  However, either of the parties may at any time make
announcements that are required by applicable law, regulatory bodies, or stock
exchange or stock association rules, so long as the party so required to make
the announcement, promptly upon learning of such requirement, notifies the other
party of such requirement and discusses with the other party in good faith the
exact wording of such announcement.

       

      10. CONFIDENTIAL
INFORMATION

       

      10.1 “Confidential
Information” means, with respect to either party, any confidential
business or technical information, including know-how, whether or not patentable
or copyrightable, that the disclosing party identifies as confidential or
proprietary at the time it is disclosed or delivered to the receiving
party.  Any information disclosed or provided under an SOW is
Confidential Information whether or not such information is marked or identified
as confidential or proprietary.

       

      10.2 Exceptions.  Confidential
Information does not include any information that the receiving party can
demonstrate by written records: (a) was known to the receiving party prior
to its disclosure hereunder by the disclosing party; (b) is independently
developed by the receiving party; (c) is or becomes publicly known through
no wrongful act of the receiving party; (d) has been rightfully received
from a third party whom the receiving party has reasonable grounds to believe is
authorized to make such disclosure without restriction; or (e) has been
approved for public release by the disclosing party’s prior written
authorization.  Each party may disclose any Confidential Information
as required to be produced or disclosed pursuant to applicable law, regulation
or court order, provided that the receiving party provides prompt advance notice
thereof to enable the disclosing party to seek a protective order or otherwise
prevent such disclosure.  In addition, each party may disclose the
existence and terms of this Agreement in confidence in connection with a
potential acquisition of substantially the entire business of such party or a
private offering of such party’s securities, or to the extent required by law in
connection with a public offering of such party’s securities.

       

      
        
          
          

        

        
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      10.3 Non-Disclosure and
Non-Use.  Each party will: (i) not use any Confidential
Information of the other party except as permitted by this Agreement; (ii) not
disclose any such Confidential Information to any person or entity other than
its own employees, consultants and subcontractors who have a need to know and
who have executed in advance of receiving such Confidential Information a
suitable nondisclosure and restricted use agreement that comports with the
applicable provisions of this Agreement; and (iii) use all reasonable efforts to
keep such Confidential Information strictly confidential.  Each party
will use reasonable efforts to enforce such nondisclosure and restricted use
agreements.

       

      11. TERM

       

      This
Agreement shall commence on the Effective Date and continue for [*] unless
terminated pursuant to Section 12 (Termination).

       

      12. TERMINATION

       

      12.1 Termination for
Breach.  In the event of a material breach of this Agreement,
the nonbreaching party shall be entitled to terminate this Agreement by written
notice to the breaching party, if such breach is not cured within [*] days after
written notice is given by the nonbreaching party to the breaching party
specifying the breach.

       

      12.2 Termination for
Insolvency.  Either party may terminate this Agreement
immediately if the other party is adjudicated bankrupt, becomes insolvent, makes
a general assignment for the benefit of creditors, or enters dissolution or
liquidation proceedings.

       

      12.3 Termination if Final
Acceptance Not Achieved.  LGIT may terminate this Agreement
with [*] days written notice if Final Acceptance does not occur within [*]
months from the Effective Date.

       

      12.4 Effect of Termination or
Expiration.

       

      12.4.1 Return of
Materials.  In the event this Agreement expires or is
terminated by either party, then each party shall return to the other party or
destroy all documents, materials and other tangible objects containing or
representing Confidential Information and all copies thereof and any documents,
materials and other tangible objects belonging to the other party, provided to
it by the other party hereunder, or any portion thereof, in its possession or
control.

       

      
        
          
          

        

        
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      12.4.2 Payment of
Fees.  Upon any expiration or termination becoming effective,
either party will, within sixty (60) days thereafter, or otherwise as they
become due, pay all fees hereunder and interest owed the other party as of the
date of such termination or expiration.

       

      12.5 Survival of Certain
Provisions.  The provisions of Sections 1 (Definitions), 2.3
(No Reverse Engineering), 8 (Ownership), 10 (Confidential Information), 13
(Warranties), 14 (Indemnification), 15 (Limitation of Liability) and 16 (General
Provisions) of this Agreement will survive any expiration or termination of this
Agreement.

       

      13. WARRANTIES

       

      13.1 Warranties.

       

      13.1.1 Warranties by
ParkerVision.  ParkerVision hereby represents and warrants to
LGIT that: (a) it has the full right, power and authority to enter into this
Agreement and grant the rights granted hereunder; (b) this Agreement is a valid
and binding obligation of such party; (c) it has obtained and shall maintain
throughout the term of this Agreement all necessary licenses, authorizations,
approvals and consents to enter into and perform its obligations hereunder in
compliance with all applicable laws, rules and regulations; (d) the Final
Deliverable (and any part thereof) shall not violate or infringe any
Intellectual Property Rights of a third party; (e) ParkerVision has all rights
with respect to any software tools which are necessary for ParkerVision to
perform its obligations and deliver the specified deliverables to LGIT, under
this Agreement; (f) ParkerVision has not sold, assigned, leased or disposed of,
encumbered any rights granted to LGIT under this Agreement, or entered into any
other agreements that would conflict with its obligations under this Agreement;
and (g) the Final Deliverable shall, as from the Acceptance Date and for a
period of one (1) year thereafter, be free from all errors, defects in design,
materials and workmanship and shall comply with all the applicable
Specifications thereof, and upon the request of LGIT, ParkerVision shall,
without prejudice to any other remedy which LGIT may have, at LGIT’s option,
immediately repair or replace, at LGIT’s option, any such errors or defects, and
deliver the repaired or replaced items to LGIT within [*] days of such request
at the costs and expenses of ParkerVision.

       

      13.1.2 Warranties by
LGIT.  LGIT hereby represents and warrants to ParkerVision
that: (a) it has the full right, power and authority to enter into this
Agreement and grant the rights granted hereunder; (b) this Agreement is a valid
and binding obligation of such party; and (c) it has obtained and shall maintain
throughout the term of this Agreement all necessary licenses, authorizations,
approvals and consents to enter into and perform its obligations hereunder in
compliance with all applicable laws, rules and regulations.

       

      13.2 Disclaimer of Other
Warranties.  EXCEPT AS SET FORTH IN SECTION 13.1 (WARRANTIES),
NEITHER PARTY MAKES ANY WARRANTIES TO THE OTHER, EITHER EXPRESS, IMPLIED OR
STATUTORY, AND EACH PARTY HEREBY DISCLAIMS ANY AND ALL SUCH WARRANTIES,
INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

       

      
        
          
          

        

        
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      CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED
PORTIONS.

                      

                    

            

          

           

        

      

      14. INDEMNIFICATION

       

      14.1 ParkerVision
Obligations.  

       

      14.1.1 Intellectual Property
Indemnity.  Subject to prompt, written notification by LGIT,
cooperation by LGIT and control of all litigation and/or settlement by
ParkerVision, ParkerVision shall defend LGIT from and against any third party
claims brought against LGIT alleging that any ParkerVision RF Components
delivered to LGIT under this Agreement or otherwise used by LGIT in accordance
with the terms hereof infringes or misappropriates any Intellectual Property
Rights of any third party.  LGIT agrees to notify ParkerVision
promptly of any matters in respect to which the foregoing indemnity in this
Section 14.1 may apply.  If notified in writing of any action or claim
for which ParkerVision is to provide the foregoing indemnity, ParkerVision shall
defend or settle those actions or claims [*]  ParkerVision shall keep
LGIT reasonably informed of the status of any claim which ParkerVision is
defending and shall consult reasonably with LGIT with respect
thereto.  Notwithstanding the foregoing, ParkerVision shall obtain
LGIT’s advance written consent if LGIT is required to incur or admit liability
as a result of such settlement by ParkerVision.

       

      [*]         Remedy in the Event of
Prohibition of Use.  If a preliminary or final judgment is, or
is reasonably likely to be, entered against LGIT’s use, sale, lease or
distribution of any LGIT RF Product that incorporates ParkerVision RF
Components, due to infringement of any third party Intellectual Property Rights
by the ParkerVision RF Components, or if ParkerVision reasonably believes that
the ParkerVision RF Components may be found to infringe any Intellectual
Property Rights, then ParkerVision shall, [*], either (a) modify the
ParkerVision RF Components so that they become noninfringing, (b) substitute the
ParkerVision RF Components with other non-infringing products with materially
the same functionality (or better) as the infringing ParkerVision RF Components
or parts or (c) obtain a license to permit LGIT to exercise the rights granted
hereunder; provided, however, that in the event that ParkerVision is unable
after using commercially reasonable efforts to accomplish either (a), (b) or
(c), then LGIT agrees to cease any and all use, sale, lease and distribution of
any LGIT RF Product that incorporates such ParkerVision RF Components within
thirty (30) days of receipt of notice from ParkerVision or such earlier time as
may be required to comply with a court order [*]

       

      14.2 Limitation of
Indemnification Liability.  In no event shall ParkerVision be
liable under Section 14 (ParkerVision Obligations) for any infringement or
misappropriation:  (i) by any product not provided by
ParkerVision hereunder; or (ii) arising from a combination with, addition
to, or modification of the ParkerVision RF Components by anyone other than
ParkerVision.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      
         

        
          
            
              	

                      
                        *
      CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED
PORTIONS.

                      

                    

            

          

           

        

      

      14.3 Sole
Remedy.  THIS SECTION 14 (INDEMNIFICATION) STATES THE SOLE AND
EXCLUSIVE LIABILITY OF THE PARTIES FOR INFRINGEMENT OR ALLEGATIONS OF
INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES FOR ANY PRODUCT
PROVIDED HEREUNDER, AND IS IN LIEU OF ALL WARRANTIES, EXPRESS, IMPLIED OR
STATUTORY IN REGARD THERETO, INCLUDING BUT NOT LIMITED TO THE WARRANTY AGAINST
INFRINGEMENT SPECIFIED IN THE UNIFORM COMMERCIAL CODE.

       

      15. LIMITATION
OF LIABILITY

       

      15.1 Consequential
Damages.  IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER
FOR LOST PROFITS OR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE
DAMAGES (EXCEPT TO THE EXTENT THAT SUCH LOST PROFITS OR SUCH DAMAGES CONSTITUTE
THE MEASURE OF DIRECT DAMAGES UNDER THE RELEVANT INTELLECTUAL PROPERTY LAWS,
EXCEPT FOR A BREACH OF EITHER PARTY’S CONFIDENTIALITY OBLIGATIONS UNDER SECTION
10 (CONFIDENTIAL INFORMATION) OF THIS AGREEMENT, AND EXCEPT FOR AMOUNTS PAYABLE
TO THIRD PARTIES UNDER SECTION 14 (INDEMNIFICATION)), HOWEVER CAUSED AND ON ANY
THEORY OF LIABILITY, ARISING IN ANY WAY IN CONNECTION WITH THIS
AGREEMENT.  THIS LIMITATION WILL APPLY EVEN IF SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING ANY FAILURE OF
ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

       

      15.2 Damages
Cap.  IN NO EVENT WILL EITHER PARTY’S LIABILITY ARISING IN ANY
WAY IN CONNECTION WITH THIS AGREEMENT EXCEED [*].  HOWEVER, THE
FOREGOING LIMITATION OF LIABILITY IN THIS SECTION 15.2 SHALL NOT APPLY WITH
RESPECT TO EITHER PARTY’S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS UNDER
SECTION 10 (CONFIDENTIAL INFORMATION) OF THIS AGREEMENT [*]

       

      16. GENERAL
PROVISIONS

       

      16.1 Assignment.  This
Agreement may not be assigned in whole or in part by either party without the
written consent of the other, which consent will not be unreasonably withheld,
except that LGIT or ParkerVision may assign this Agreement in connection with a
merger, reorganization, change of control or sale of all or substantially all of
its assets or business to which this Agreement relates.

       

      16.2 Notice.

       

      16.2.1 Unless
otherwise changed by notice in writing from LGIT to ParkerVision, ParkerVision
shall serve notice upon LGIT as follows:

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      
         

        
          
            
              	

                      
                        *
      CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED
PORTIONS.

                      

                    

            

          

           

        

      [*]

      LG
Innotek Co., Ltd.

      20
Yeouido-dong

      Yeongdeungpo-gu,
Seoul, Korea

      

      Unless
otherwise changed by notice in writing from ParkerVision to LGIT, LGIT shall
serve notice upon ParkerVision as follows:

      

      Chief
Executive Officer

      ParkerVision,
Inc.

      7915
Baymeadows Way, Suite 400

      Jacksonville,
Florida 32256

      

      With copy
to:

      

      Chief
Financial Officer

      ParkerVision,
Inc.

      7915
Baymeadows Way, Suite 400

      Jacksonville,
Florida 32256

       

      16.2.2 Notice
shall be made by regular or priority mail, recognized commercial overnight
courier, hand delivery, facsimile transmission or electronic mail with proof of
receipt, and shall be effective as of the date received.

       

      16.3 Severability.  If
any paragraph or provision of this Agreement shall be deemed void or invalid as
a matter of law, the remaining paragraphs or provisions of this Agreement shall
nevertheless remain in full force and effect.

       

      16.4 No Joint Venture,
etc.  Nothing herein shall be deemed to constitute ParkerVision
and LGIT as partners, joint venturers or otherwise associated in or with the
business of the other.  Neither party shall be liable for any debts,
accounts, obligations or other liabilities of the other
party.  Neither party is authorized to incur any debts or other
obligations of any kind on the part of or as agent for the other except as may
be specifically authorized in writing.

       

      16.5 No Implied
Obligations.  Nothing in this Agreement shall be deemed to
prevent either party from developing (independently or jointly with third
parties) or commercializing products similar to, complimentary or competitive
with the products that are subject to this Agreement; except that neither party
shall violate its obligations of confidentiality under Section 10 (Confidential
Information) or knowingly infringe the Intellectual Property Rights of the other
party.

       

      16.6 Waiver.  No
relaxation, forbearance, delay or negligence by any party hereto in enforcing
any of the terms and conditions of this Agreement, or the granting of time by
any party to another, shall operate as a waiver or prejudice, affect or restrict
the rights, powers or remedies of any party hereto.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      
         

        
          
            
              	

                      
                        *
      CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED
PORTIONS.

                      

                    

            

          

           

        

      

      16.7 Complete
Agreement.  This Agreement and the Exhibits attached hereto
represent the full and complete agreement and understanding of the parties
hereto with respect to the subject matter hereof.  Any amendment
thereof must be in writing and executed by the parties hereto.

       

      16.8 Governing
Law.  All questions of law, rights, and remedies regarding any
act, event or occurrence undertaken prior to or pursuant to this Agreement shall
be governed by and construed in accordance with the laws of the State of New
York, without regard to or application of choice of law rules or principles, and
the United States. The parties agree that all proceedings, disputes and claims
concerning the interpretation or the performance of this Agreement, including
questions involving its existence, validity and duration shall be subject to the
exclusive jurisdiction of federal courts in the State of New York, and the
parties voluntarily subject themselves to the jurisdiction of such
courts.

       

      16.9 Compliance with Export
Control Laws.  Each party agrees to comply with all applicable
export and reexport control laws and regulations, including the Export
Administration Regulations (“EAR”) maintained by the United States Department of
Commerce.  Specifically, each party covenants that it shall not
–  directly or indirectly – sell, export, reexport, transfer, divert,
or otherwise dispose of any software, source code, or technology (including
products derived from or based on such technology) received from the other party
under this Agreement to any country (or any individual national thereof) subject
to antiterrorism controls or U.S. embargo, or to any other person, entity, or
destination prohibited by the laws or regulations of the United States, without
obtaining prior authorization from the competent government authorities as
required by those laws and regulations. 

       

      16.10 Government
Approvals.  LGIT hereby represents and warrants that no
consent, approval or authorization of or designation, declaration or filing with
any governmental authority in Korea is required in connection with the valid
execution, delivery and performance of this Agreement.  LGIT
represents and warrants that the provisions of this Agreement, and the rights
and obligations of the parties hereunder, are enforceable under the laws of
Korea.

       

      16.11 Language.  This
Agreement is in the English language only, which language shall be controlling
in all respects, and all versions hereof in any other language shall not be
binding on the parties hereto.  All communications and notices to be
made or given pursuant to this Agreement shall be in the English
language.

       

      16.12   Multiple
Counterparts.  This Agreement may be executed in multiple
counterparts, each of which will be considered an original and all of which
together will constitute one agreement.  This Agreement may be
executed by the attachment of signature pages which have been previously
executed.

       

      16.13  Remedies
Cumulative.  Except as expressly provided herein, all rights
and remedies enumerated in this Agreement will be cumulative and none will
exclude any other right or remedy permitted herein or by law or in
equity.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      
         

        
          
            
              	

                      
                        *
      CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED
PORTIONS.

                      

                    

            

          

           

        

      

      16.14  Headings.  The
headings contained in this Agreement are inserted for convenience of reference
only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.

       

       

      16.15 Force
Majeure.  No party shall be responsible or liable to another
party for nonperformance or delay in performance of any terms or conditions of
this Agreement due to acts or occurrences beyond the reasonable control of the
nonperforming or delayed party, including but not limited to, acts of God, acts
of government, wars, riots, strikes or other labor disputes, fires and floods,
provided the nonperforming or delayed party provides to the other party written
notice of the existence and the reason for such nonperformance or
delay.  Notwithstanding the foregoing, the other party may terminate
this Agreement if such nonperformance or delay extends for a period greater than
ninety (90) days.

      

      IN
WITNESS WHEREOF, the parties have executed this Agreement through their duly
authorized representatives as set forth below:

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      LG
      Innotek Co., Ltd.

                                                    	 	
                                                      ParkerVision,
      Inc. 

                                                    
	 	 	 	 	 
	
                                                      Signature:
      

                                                    	[*]	 	Signature: 	
                                                       /s/ Jeffrey L Parker

                                                    
	 	 	 	 	 
	
                                                      Printed
      Name:

                                                    	[*]	 	Printed
      Name: 	
                                                       Jeffrey L. Parker

                                                    
	 	 	 	 	 
	
                                                      Title:         

                                                    	[*]	 	Title:
      	
                                                      Chief Executive
  Officer

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      
         

        
          
            
              
                
                  	

                          
                            *
      CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED
PORTIONS.

                          

                        

                

              

               

            

          

        

         

      

       

      [*]

       

      [*]

       

      [*]

      
 

      15ex10.htm

    

     

    The
securities of Sound Revolution Inc. have not been registered under the
Securities Act of 1933 (the "US Securities Act") and may not be offered or sold
in the United States or to U.S. persons (other than distributors) unless the
securities are registered under the US Securities Act, or an exemption from the
registration requirements of the US Securities Act is available. Hedging
transactions involving these securities may not be conducted unless in
compliance with the US Securities Act.

    Merger
Agreement Term Sheet

    

    
      	
              Parties:

            	
              Sound
      Revolution Inc., a Delaware corporation (“Sound Revolution”), and On4
      Communications, Inc., an Arizona corporation (“On4”), hereby agree to
      merge into one corporation according to the terms and conditions described
      below (the “Merger”).

               

            

    

    This document
outlines the principal terms and conditions of the merger between Sound
Revolution and On4 (the “Agreement”). The terms and conditions outlined in this
document, once signed by both parties, will constitute a binding
agreement.  It is the intention of the parties to enter into a longer
form agreement governing the Merger.  Until a longer form agreement is
entered into, this document shall govern the relationship between the
parties.

    
      	 
    	 
    
	
              Structure:

            	
              The parties
      shall complete the Merger in accordance with the provisions of the Arizona
      Revised Statutes and the Delaware General Corporation Law as applicable to
      the respective companies.

            
	 
    	 
    
	
              Consideration:

            	
              Sound
      Revolution shall be the surviving entity.  Pursuant to the
      merger, each common share of On4 shall be converted into one common share
      of Sound Revolution and each preferred share of On4 shall be converted to
      one common share of Sound Revolution.

               

              Certain
      outstanding stock options and warrants of On4, as designated by On4, will
      be assumed by Sound Revolution upon completion of the Merger (the “Merger
      Closing”) and converted into options and warrants to purchase Sound
      Revolution stock with identical vesting provisions.

            
	 
    	 
    
	
              Conditions
      Precedent:

            	
              Prior to the
      Merger Closing:

              · Sound
      Revolution shall have raised a minimum of US$400,000 through a private
      placement of units at US$0.15 per unit, each unit comprised of one common
      share and one half warrant to purchase one common share at a price of
      US$1.00 for a period of 12 months (the “Units”). The warrants shall be
      subject to an acceleration clause whereby Sound Revolution will have
      the right to accelerate the exercise of the options via a press
      release notice should the share price exceed US$1.15 for seven consecutive
      trading days.

              · Both parties
      shall submit the Merger to a vote of their shareholders and obtain
      approval from holders of a majority of both parties’ respective voting
      shares once $400,000 has been raised by Sound Revolution.

              · Sound
      Revolution shall have forwarded to On4 a bridge loan of at least
      US$250,000 with no interest. On4 shall return the entire amount of the
      bridge loan if the merger agreement is terminated.

              · Sound
      Revolution shall enter into a Convertible Note in the amount of US$95,000
      with Penny Green, the majority shareholder, CEO, a Director and the sole
      officer of Sound Revolution, which shall be convertible into common stock
      at US$0.10 at the option of the holder, and which shall be due in seven
      months (the “Note”), and which shall be reduced to US$75,000 if On4 incurs
      legal fees in excess of US$10,000 in connection with the
      Merger.

              · Sound
      Revolution will have transferred all of its assets and debts, other than
      the Note and any debt owing to Penny Green, to its wholly owned
      subsidiary, Charity Tunes Inc., a Delaware company.

              · Sound
      Revolution and On4 will have received necessary approval for the Merger
      from shareholders, and have taken all steps to complete the Merger as
      required by applicable corporate and securities rules and regulations
      Sound
      Revolution will not have issued any securities other than the Note and the
      Units, unless such issuance had been approved in writing by
      On4.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              Details:

            	
              Upon the
      Merger Closing, the following shall apply to the surviving entity (the
      “New Entity”):

              · It shall
      adopt the articles and bylaws of Sound Revolution, except that the name of
      the surviving entity shall be On4 Communications, Inc

              · the directors
      shall be Cameron Robb and Gordon Jessop

              · Cameron Robb
      shall be the CEO

              · The head
      office shall be located at the location designated by On4

               

              Upon the
      Merger Closing:

              · Charity Tunes
      Inc. shall be sold to Bacchus Filings Inc., a company controlled by Penny
      Green, in consideration for which Bacchus Filings Inc. shall assume the
      entire amount of loan owing to Penny Green, exclusive of the Note, which
      shall result in a debt to be assumed by Bacchus Filings Inc. of
      approximately $335,000 which represents the remaining debt currently owed
      by Sound Revolution; and

              · 17,000,000
      common shares of Sound Revolution in the name of Bacchus Entertainment
      Ltd. shall be cancelled:

              · the only debt
      carried from Sound Revolution remaining will be the Note.

               

              At or after
      the Merger Closing:

              · all On4
      deferred or accrued salaries shall be limited to an amount representing
      not more than 30 days of pay to each employee, and in some instances it
      will be required for employees and consultant to convert such accrued
      salary to shares.

              · all notes
      payable by On4 in excess of US$100,000 shall be converted to equity at a
      price to be mutually agreed on by On4 and the specific creditor or receive
      a repayment extension of no less than six months and with an annual
      interest rate not to exceed 12%.

            
	 
    	 
    
	
              Shareholder
      Approval:

            	
              Selected
      insiders and other stockholders of Sound Revolution and On4 have agreed to
      vote for this transaction.

            
	 
    	 
    
	
              Long
      Form Agreement:

            	
              The parties
      shall negotiate to enter into a long form agreement which shall contain
      additional representations, warranties and covenants of Sound Revolution
      and On4 customary in a transaction of this nature.  The parties
      shall make good faith efforts to enter into a long form agreement within
      35 days of this agreement.  This document shall govern the terms
      of the merger until such long form agreement has been entered
      into.

            
	 
    	 
    
	
              Termination
      Events:

            	
              This merger
      agreement will be terminable upon the occurrence of any one of the
      following events:

              · By mutual
      consent and such consent will not be unreasonably withheld;

              · By either
      party, after 30 days, if Sound Revolution has not raised a minimum of
      US$400,000 pursuant to a private placement issuance of the Units, in
      accordance with the terms as set out in the term sheet attached as Exhibit
      A; or

              · By On4, after
      30 days, if Sound Revolution has not forwarded to On4 a minimum of
      US$50,000 as an interest free bridge loan, to be repaid only upon the
      termination of the Merger.

            
	 
    	 
    
	
              Sound
      Revolution Covenants

            	
              Sound
      Revolution covenants as follows:

              · It shall act
      in good faith in attempting to raise capital according to the Financing
      Term Sheet attached hereto as Exhibit A (the “First Financing”) which is
      subject to a minimum of $400,000 and a maximum of $750,000

              · Upon
      receiving private placements in the amount of a minimum of $400,000, Sound
      Revolution shall complete the First Financing, of which the proceeds shall
      be used as follows:

              · $150,000
      shall be repaid to Penny Green towards the outstanding loans owed to her
      by Sound Revolution

              · The balance
      of the net proceeds of the First Financing may be immediately provided to
      On4 as a non interest bearing loan, to be repaid only upon termination of
      the merger

              · After
      completion of the First Financing, if requested by On4 to raise additional
      capital, Sound Revolution shall act in good faith in attempting to raise
      capital according to the Financing Term Sheet attached hereto as Exhibit B
      (the “Second Financing”) which, when combined with the total amount raised
      in the First Financing, shall not exceed a maximum of
      $1,500,000.  The proceeds of the Second Financing shall be held
      in trust pending the Merger Closing.

              · Other than
      pursuant to First Financing, the Second Financing and the Note, Sound
      Revolution shall not issue any securities or enter into any agreement
      unless the issuance or the agreement has first been approved in writing by
      On4

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              Independent

              Legal
      Advice:

            	
              Each party
      acknowledges that it has had the opportunity to obtain its own independent
      legal and tax advice with respect to the terms of this Agreement prior to
      execution of this Agreement and further acknowledges that it fully
      understands this Agreement.  On4 and the On4 Shareholders
      acknowledge that counsel for Sound Revolution does not represent the
      interests of On4 or its shareholders.

            
	 
    	 
    
	
              Registration:

            	
              Common shares
      of Sound Revolution issued to On4 shareholders are granted registration
      rights covering the resale of the shares, whereby Sound Revolution is
      obligated to use its best efforts to register the resale of the shares by
      filing a registration statement with the Securities and Exchange
      Commission under the United States Securities Act of 1933 (the
      “Registration Statement”) within 30 days of the Merger
      Closing.  Each of the On4 shareholders shall be entitled to have
      up to 30% of his or her common shares of Sound Revolution included on the
      Registration Statement, except that no one person shall be entitled to
      have more than 10% of the total amount of shares registered on the
      Registration Statement.

            
	 
    	 
    
	
              Representations
      and Warranties

              Of
      Sound Revolution:

            	
              Sound
      Revolution represents and warrants to ON4 that:

               

              1. Sound
      Revolution is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware and has the requisite
      corporate power and authority to own, lease and to carry on its business
      as now being conducted.  Sound Revolution is duly qualified to
      do business and is in good standing as a foreign corporation in each of
      the jurisdictions in which Sound Revolution owns property, leases
      property, does business, or is otherwise required to do so, where the
      failure to be so qualified would have a material adverse effect on the
      business of Sound Revolution taken as a whole.

               

              2. To the best
      knowledge of Sound Revolution, there is no basis for and there is no
      action, suit, judgment, claim, demand or proceeding outstanding or
      pending, or threatened against or affecting Sound Revolution or which
      involves any of the business, or the properties or assets of Sound
      Revolution that, if adversely resolved or determined, would have a
      material adverse effect on the business, operations, assets, properties,
      prospects, or conditions of Sound Revolution taken as a whole (a “Sound
      Revolution Material Adverse Effect”).  There is no reasonable
      basis for any claim or action that, based upon the likelihood of its being
      asserted and its success if asserted, would have such a Sound Revolution
      Material Adverse Effect.

               

              a) For a
      period of 6 months following the Merger Closing, Penny Green agrees to
      personally indemnify and to hold harmless Sound Revolution and On4, their
      affiliates, and their respective officers, directors, agents and
      employees, against any and all losses and damages to the extent any such
      losses or damages are due to a judgment entered against Sound Revolution
      with regard to an agreement entered into by Sound Revolution before the
      Merger Closing and up to a maximum of US$500,000.  Penny Green,
      in her sole discretion, shall select counsel to defend any action pursuant
      to this indemnity. Sound Revolution hereby covenants not to settle or
      compromise any claim or cause of action for which indemnification is
      sought from Penny Green without the written permission of Penny Green. The
      obligation of Penny Green to so indemnify Sound Revolution is expressly
      contingent upon Sound Revolution notifying Penny Green, in writing, within
      seven (7) calendar days after Sound Revolution knows, or reasonably should
      have known, of any claim, complaint, potential cause of action or
      proceeding. Failure by Sound Revolution to timely notify Penny Green shall
      relieve Penny Green of her obligation to so indemnify Sound Revolution.
      Penny Green shall have no obligation to indemnify Sound Revolution should
      any such losses or damages result, in whole or in part, from acts,
      omissions, willful misconduct or gross negligence of Sound Revolution, its
      affiliates, officers, directors, agents and employees after the Merger
      Closing.

               

              3. Sound
      Revolution has all requisite corporate power and authority to execute and
      deliver this Agreement and any other document contemplated by this
      Agreement (collectively, the “Sound Revolution Documents”) to be signed by
      Sound Revolution and to perform its obligations hereunder and to
      consummate the transactions contemplated hereby.  The execution
      and delivery of each of the Sound Revolution Documents by Sound Revolution
      and the consummation by Sound Revolution of the transactions contemplated
      hereby have been duly authorized by its board of directors and no other
      corporate or shareholder proceedings on the part of Sound Revolution is
      necessary to authorize such documents or to consummate the transactions
      contemplated hereby.  This Agreement has been, and the other
      Sound Revolution Documents when executed and delivered by Sound Revolution
      as contemplated by this Agreement will be, duly executed and delivered by
      Sound Revolution and this Agreement is, and the other Sound Revolution
      Documents when executed and delivered by Sound Revolution, as contemplated
      hereby will be, valid and binding obligations of Sound Revolution
      enforceable in accordance with their respective terms,
except:

               

              a) as limited by
      applicable bankruptcy, insolvency, reorganization, moratorium, and other
      laws of general application affecting enforcement of creditors’ rights
      generally;

               

              b) as limited by
      laws relating to the availability of specific performance, injunctive
      relief, or other equitable remedies; and

               

              c) as limited by
      public policy.

               

              4. The Sound
      Revolution common shares to be issued upon the Merger Closing will, upon
      issuance, have been duly and validly authorized and, when so issued in
      accordance with the terms of this Agreement, will be duly and validly
      issued, fully paid and non-assessable.

               

              5. No
      representation or warranty by Sound Revolution in this Agreement nor any
      certificate, schedule, statement, document or instrument furnished or to
      be furnished to On4 pursuant hereto contains or will contain any untrue
      statement of a material fact or omits or will omit to state a material
      fact required to be stated herein or therein or necessary to make any
      statement herein or therein not materially misleading.

               

              6. Sound
      Revolution has 30,258,478 shares of common stock outstanding and no
      outstanding derivative securities other than the Note and no issued or
      outstanding preferred shares.

               

              7. Compliance

               

              a) To the best
      knowledge of Sound Revolution, Sound Revolution is in compliance with, is
      not in default or violation in any material respect under, and has not
      been charged with or received any notice at any time of any material
      violation of any statute, law, ordinance, regulation, rule, decree or
      other applicable regulation to the business or operations of Sound
      Revolution;

               

              b) To the best
      knowledge of Sound Revolution, Sound Revolution is not subject to any
      judgment, order or decree entered in any lawsuit or proceeding applicable
      to its business and operations that would constitute a Sound Revolution
      Material Adverse Effect;

               

              c) Sound
      Revolution has duly filed all reports and returns required to be filed by
      it with governmental authorities and has obtained all governmental permits
      and other governmental consents, except as may be required after the
      execution of this Agreement.  All of such permits and consents
      are in full force and effect, and no proceedings for the suspension or
      cancellation of any of them, and no investigation relating to any of them,
      is pending or to the best knowledge of Sound Revolution, threatened, and
      none of them will be adversely affected by the consummation of the Merger;
      and

               

              d) Sound
      Revolution has operated in material compliance with all laws, rules,
      statutes, ordinances, orders and regulations applicable to its
      business.  Sound Revolution has not received any notice of any
      violation thereof, nor is Sound Revolution aware of any valid basis
      therefore.

            
	 
    	 
    
	
              Representations
      and Warranties of On4:

            	
              On4
      represents and warrants to Sound Revolution that:

               

              1. On4 is a
      corporation duly organized, validly existing and in good standing under
      the laws of the State of Arizona and has the requisite corporate power and
      authority to own, lease and to carry on its business as now being
      conducted.  On4 is duly qualified to do business and is in good
      standing as a foreign corporation in each of the jurisdictions in which
      On4 owns property, leases property, does business, or is otherwise
      required to do so, where the failure to be so qualified would have a
      material adverse effect on the business of On4 taken as a
      whole.

               

               

              2. To the best
      knowledge of On4, there is no basis for and there is no action, suit,
      judgment, claim, demand or proceeding outstanding or pending, or
      threatened against or affecting On4 or which involves any of the business,
      or the properties or assets of On4 that, if adversely resolved or
      determined, would have a material adverse effect on the business,
      operations, assets, properties, prospects, or conditions of On4 taken as a
      whole (an “On4 Material Adverse Effect”).  There is no
      reasonable basis for any claim or action that, based upon the likelihood
      of its being asserted and its success if asserted, would have such an On4
      Material Adverse Effect.

               

              3. On4 has all
      requisite corporate power and authority to execute and deliver this
      Agreement and any other document contemplated by this Agreement
      (collectively, the “On4 Documents”) to be signed by On4 and to perform its
      obligations hereunder and to consummate the transactions contemplated
      hereby.  The execution and delivery of each of the On4 Documents
      by On4 and the consummation by On4 of the transactions contemplated hereby
      have been duly authorized by its board of directors and no other corporate
      or shareholder proceedings on the part of On4 is necessary to authorize
      such documents or to consummate the transactions contemplated
      hereby.  This Agreement has been, and the other On4 Documents
      when executed and delivered by On4 as contemplated by this Agreement will
      be, duly executed and delivered by On4 and this Agreement is, and the
      other On4 Documents when executed and delivered by On4, as contemplated
      hereby will be, valid and binding obligations of On4 enforceable in
      accordance with their respective terms, except:

               

              a) as limited by
      applicable bankruptcy, insolvency, reorganization, moratorium, and other
      laws of general application affecting enforcement of creditors’ rights
      generally;

               

              b) as limited by
      laws relating to the availability of specific performance, injunctive
      relief, or other equitable remedies; and

               

              c) as limited by
      public policy.

               

              4. No
      representation or warranty by On4 in this Agreement nor any certificate,
      schedule, statement, document or instrument furnished or to be furnished
      to Sound Revolution pursuant hereto contains or will contain any untrue
      statement of a material fact or omits or will omit to state a material
      fact required to be stated herein or therein or necessary to make any
      statement herein or therein not materially misleading.

               

              5. Neither the
      execution, delivery and performance of this Agreement, nor the
      consummation of the Merger, will conflict with, result in a violation of,
      cause a default under (with or without notice, lapse of time or both) or
      give rise to a right of termination, amendment, cancellation or
      acceleration of any obligation contained in or the loss of any material
      benefit under, or result in the creation of any lien, security interest,
      charge or encumbrance upon any of the material properties or assets of On4
      or any of its subsidiaries under any term, condition or provision of any
      loan or credit agreement, note, debenture, bond, mortgage, indenture,
      lease or other agreement, instrument, permit, license, judgment, order,
      decree, statute, law, ordinance, rule or regulation applicable to On4 or
      any of its subsidiaries, or any of their respective material property or
      assets.

               

              6. On4
      acknowledges that any Sound Revolution securities issued in any financings
      contemplated in this Agreement will have such hold periods as are required
      under applicable securities laws and as a result may not be sold,
      transferred or otherwise disposed, except pursuant to an effective
      registration statement under the Securities Act of 1933, or pursuant to an
      exemption from, or in a transaction not subject to, the registration
      requirements of the Securities Act of 1933 and in each case only in
      accordance with all applicable securities laws.

               

              7.    Compliance

               

              a) To the best
      knowledge of On4, On4 is in compliance with, is not in default or
      violation in any material respect under, and has not been charged with or
      received any notice at any time of any material violation of any statute,
      law, ordinance, regulation, rule, decree or other applicable regulation to
      the business or operations of On4;

               

              b) To the best
      knowledge of On4, On4 is not subject to any judgment, order or decree
      entered in any lawsuit or proceeding applicable to its business and
      operations that would constitute a On4 Material Adverse Effect, other than
      a lawsuit with Datatrail, the details of which have been provided to Sound
      Revolution;

               

              c) On4 has duly
      filed all reports and returns required to be filed by it with governmental
      authorities and has obtained all governmental permits and other
      governmental consents, except as may be required after the execution of
      this Agreement.  All of such permits and consents are in full
      force and effect, and no proceedings for the suspension or cancellation of
      any of them, and no investigation relating to any of them, is pending or
      to the best knowledge of On4, threatened, and none of them will be
      adversely affected by the consummation of the Merger; and

               

              d) On4 has
      operated in material compliance with all laws, rules, statutes,
      ordinances, orders and regulations applicable to its
      business.  On4 has not received any notice of any violation
      thereof, nor is On4 aware of any valid basis therefore.

               

              8.    PetsMobility
      Inc., a Delaware corporation, is a wholly owned subsidiary of On
      4.

               

              9.    On4
      Communications Inc., incorporated under the Canadian Business Corporations
      Act, shall not own any shares of On4 as of the Merger
      Closing.

               

              10.    The
      financial statements of On4 provided to Sound Revolution for the year
      ended October 31, 2007 and the period ended July 31, 2008 are true an
      accurate in describing the financial condition of On4 and its
      subsidiaries.

            
	 
    	 
    
	
              Mutual
      Covenants:

            	
              1. The
      representations and warranties of both parties set forth in this Agreement
      will be true, correct and complete in all respects as of the Merger
      Closing, as though made on and as of the Merger Closing.

               

              2. All
      information regarding the business of On4 including, without limitation,
      financial information that On4 provides to Sound Revolution during Sound
      Revolution’s due diligence investigation of On4 will be kept in strict
      confidence by Sound Revolution and will not be used (except in connection
      with due diligence), dealt with, exploited or commercialized by Sound
      Revolution or disclosed to any third party (other than Sound Revolution’s
      professional accounting and legal advisors) without the prior written
      consent of On4.  If the Merger contemplated by this Agreement
      does not proceed for any reason, then upon receipt of a written request
      from On4, Sound Revolution will immediately return to On4 (or as directed
      by On4) any information received regarding On4’s
      business.  Likewise, all information regarding the business of
      Sound Revolution including, without limitation, financial information that
      Sound Revolution provides to On4 during its due diligence investigation of
      Sound Revolution will be kept in strict confidence by On4 and will not be
      used (except in connection with due diligence), dealt with, exploited or
      commercialized by On4 or disclosed to any third party (other than On4’s
      professional accounting and legal advisors) without Sound Revolution’s
      prior written consent.  If the Merger contemplated by this
      Agreement does not proceed for any reason, then upon receipt of a written
      request from Sound Revolution, On4 will immediately return to Sound
      Revolution (or as directed by Sound Revolution) any information received
      regarding Sound Revolution’s business.

               

              3. Between the
      date of this Agreement and the Merger Closing, each of the parties to this
      Agreement will promptly notify the other parties in writing if it becomes
      aware of any fact or condition that causes or constitutes a material
      breach of any of its representations and warranties as of the date of this
      Agreement, if it becomes aware of the occurrence after the date of this
      Agreement of any fact or condition that would cause or constitute a
      material breach of any such representation or warranty had such
      representation or warranty been made as of the time of occurrence or
      discovery of such fact or condition.  During the same period,
      each party will promptly notify the other parties of the occurrence of any
      material breach of any of its covenants in this Agreement or of the
      occurrence of any event that may make the satisfaction of such conditions
      impossible or unlikely.

            
	 
    	 
    
	
              Currency

            	
              All
      references to currency in this Agreement are in United States Dollars
      (US$), unless expressly stated otherwise.

            
	 
    	 
    
	
              Jurisdiction

            	
              The parties
      agree to attorn to the non-exclusive jurisdiction of the Province of
      British Columbia regarding this
Agreement.

            

    

    

    

    Accepted and agreed
this 12th day of
March, 2009.

    

    

    Sound
Revolution Inc.

    

    

     

    
      	
               Per:  /s/
      Penny Green  

                
      Penny Green, CEO

            	
              /s/ Penny Green 
      

              Penny
      Green, in her personal
capacity

            

    

     

                                                                                       

    On4
Communications, Inc.

    

    Per: /s/
Cameron
Robb

          Cameron
Robb   
      Title:
CEO

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    On4 Shareholders
agreeing to vote in favour of the Merger:

    

    Name                                            #
of Shares
Owned                    Percentage

    

    

    

    Cameron
Robb

    ______________________

    Per:

    

    

    Gordon
Jessop

    ______________________

    Per:

    

    

    

    

    ______________________                 _______________                __________

    

    ______________________                 _______________                __________

    

    ______________________                 _______________                __________

    

    

    Sound Revolution
Shareholders agreeing to vote in favour of the Merger:

    

    Name                                           
# of Shares Owned  
               Percentage

     

    /s/
Penny
Green                                 
43,208                              16.7%

    Penny
Green

    

    Bacchus
Entertainment Ltd.      
             142,858 
                             55.2%

    

    

    /s/
Penny
Green                                

    Per: Penny Green,
President

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
A

     

    These
securities have not been registered under the Securities Act of 1933 (the "US
Securities Act") and may not be offered or sold in the United States or to U.S.
persons (other than distributors) unless the securities are registered under the
US Securities Act, or an exemption from the registration requirements of the US
Securities Act is available. Hedging transactions involving these securities may
not be conducted unless in compliance with the US Securities Act.

    

    Sound Revolution
Inc.

    

    Private
Placement

    Offering
Terms

    

    
      	
              Issuer

            	
              Sound
      Revolution Inc., a Delaware corporation (the “Company”, “we”,
      “our”)

            
	 
    	 
    
	
              Offering

            	
              We intend to
      raise a minimum of US$400,000 and a maximum of US$750,000 through the sale
      of units at US$0.15 per Unit, each Unit consisting of one share of our
      common stock (the “Shares”) and one half common stock purchase warrant
      (the “Warrants”).

               

              We intend to
      sell Units only to investors who are “accredited investors” as defined by
      Rule 501 of Regulation D promulgated by the Securities and Exchange
      Commission under the Securities Act of 1933 (for U.S. investors) and
      Section 2.4 of National Instrument 45-106 (for Canadian investors), or to
      Canadian investors who purchase at least CDN$150,000.  We
      reserve the right to reject any subscription, in whole or in part, or to
      allot to any prospective investor less than the number of Units subscribed
      for by such prospective investor.  This offering is subject to
      withdrawal, cancellation or modification without notice.

               

              The minimum
      subscription amount per investor is $5,000.

            
	 
    	 
    
	
              Warrants

            	
              Each Warrant
      when exercised entitles the holder to purchase one share of the Company’s
      common stock at US$1.00 per share for 12 months after
      issuance.

               

              The Company
      will have the right to accelerate the exercise of the options via
      a press release notice should the share price of our common stock
      exceed US$1.15 for seven consecutive trading
  days.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              Use
      of Proceeds

            	
              We intend to
      use the proceeds of the subscription funds to meet the conditions we must
      complete prior to our merger with On4 Communications, Inc. We have
      promised that prior to the merger, we will forward a bridge loan to On4 in
      the amount of at least $250,000, and we have agreed to repay shareholder
      debts in the amount of $150,000 prior to the merger.  We have
      agreed that upon the merger being effective, all of our existing
      operations and debt will be vended out through our existing operating
      wholly owned subsidiary, Charity Tunes Inc.   This offering
      is subject to an offering minimum of US$400,000, and therefore if we do
      not raise a minimum of US$400,000 within 60 days, we will refund your
      subscription amount to you.  We will not hold the proceeds of
      this offering in escrow pending the completion of the
    merger.

            
	 
    	 
    
	
              Closing

            	
              The closing
      of the transactions contemplated by this Agreement (the “Closing”) will
      take place once the Company has received subscriptions for a total amount
      of a minimum of US$400,000.  Upon closing, we will cause to be
      delivered to purchasers, whose Subscription Agreements and funds we have
      accepted, the Share and Warrant certificates representing the investment
      that has been made.

            
	 
    	 
    
	
              Resale

            	
              The
      securities offered hereby are subject to stringent limitations on their
      resale or transfer by an investor.  Persons who purchase Units
      pursuant to this offering will not have the benefit of a review of the
      material by any securities commission or other regulatory
      authority.  Sales of the Units will only be made in accordance
      with exemptions from registration and prospectus requirements under
      applicable securities legislation.

            
	 
    	 
    
	
              Registration

            	
              Investors are
      granted registration rights covering the resale of the Shares and the
      shares issuable upon exercise of the Warrants, whereby we are obligated to
      use our best efforts to register the resale of the Shares and the shares
      issuable upon exercise of the Warrants by filing a registration statement
      with the SEC under the United States Securities Act of 1933 within 60 days
      of closing.

            
	 
    	 
    
	
              Dilution

            	
              As of the
      start of this offering we have 33,258,478 shares of common stock
      outstanding.

            
	 
    	 
    
	
              Business

            	
              We were
      incorporated in Delaware on June 4, 2001.  To date, we have
      generated nominal revenues.  We have entered into a Merger
      Agreement Term Sheet with On4 Communications, Inc., an Arizona company
      (“On4”), which is subject to the closing of the financing contemplated by
      this term sheet.  The Merger Agreement Term Sheet also
      contemplates a second financing that, when combined with this First
      Financing, shall not exceed $1,500,000 on substantially similar terms,
      except that proceeds will be held in trust until the closing of the
      merger.

               

              On4
      manufactures industry-leading two-way communication devices that track
      people, pets, assets, inventory or just about anything else that is of
      importance to our customers. Incorporating both proprietary and
      non-proprietary hardware, On4TM Code Division Multiple Access (CDMA) based
      devices are harmonized with some of the most sophisticated Location Based
      Service (LBS) tracking software available on the market today, enabling
      On4 to provide seamless, integrated end-to-end tracking solutions for you,
      our customer.

               

              On4 can
      provide either hardware-only or fully integrated custom solutions,
      depending on end-user requirements. On4 specializes in the integration of
      proprietary and non-proprietary hardware and wireless carrier platforms
      with non-competing vertical partners to access lucrative consumer-based
      niche markets.

               

              We face all
      of the risks inherent in a new business.  In addition, we cannot
      provide historical information and financial data about our planned
      operations upon which a prospective investor can make an informed judgment
      as to our future prospects.  The purchase of the securities
      offered hereby must therefore be regarded as the placing of funds at a
      high risk in a new or “start-up” venture with all the unforeseen costs,
      expenses, problems, and difficulties to which such ventures are
      subject.

               

              We have
      limited financial resources, no revenues and can give you no assurance
      that additional funding will be available to us for development of our
      projects.  The only significant source of funds presently
      available to us is the sale of our equity capital.  There can be
      no assurance that we will be able to obtain adequate financing in the
      future or that the terms of such financing will be
      favorable.  Failure to obtain such additional
      financing could result in delay or indefinite postponement of the
      development of our projects.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

     

    EXHIBIT
B

     

    These
securities have not been registered under the Securities Act of 1933 (the "US
Securities Act") and may not be offered or sold in the United States or to U.S.
persons (other than distributors) unless the securities are registered under the
US Securities Act, or an exemption from the registration requirements of the US
Securities Act is available. Hedging transactions involving these securities may
not be conducted unless in compliance with the US Securities Act.

    

    Sound Revolution
Inc.

    

    Private
Placement

    Offering
Terms

    

    
      	
              Issuer

            	
              Sound
      Revolution Inc., a Delaware corporation (the “Company”, “we”,
      “our”)

            
	 
    	 
    
	
              Offering

            	
              We intend to
      raise a maximum of US$1,500,000 through the sale of units at US$0.15 per
      Unit each Unit consisting of one share of our common stock (the “Shares”)
      and one half common stock purchase warrant (the “Warrants”).

               

              We intend to
      sell Units only to investors who are “accredited investors” as defined by
      Rule 501 of Regulation D promulgated by the Securities and Exchange
      Commission under the Securities Act of 1933 (for U.S. investors) and
      Section 2.4 of National Instrument 45-106 (for Canadian investors), or to
      Canadian investors who purchase at least CDN$150,000.  We
      reserve the right to reject any subscription, in whole or in part, or to
      allot to any prospective investor less than the number of Units subscribed
      for by such prospective investor.  This offering is subject to
      withdrawal, cancellation or modification without notice.

               

              The minimum
      subscription amount per investor is $5,000.

            
	 
    	 
    
	
              Warrants

            	
              Each Warrant
      when exercised entitles the holder to purchase one share of the Company’s
      common stock at US$1.00 per share for 12 months after
      issuance.

               

              The Company
      will have the right to accelerate the exercise of the options via
      a press release notice should the share price of our common stock
      exceed US$1.15 for seven consecutive trading
  days.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              Use
      of Proceeds

            	
              We intend to
      use the proceeds of the subscription funds on developing On4
      Communications, Inc.’s (“On4”) business plan, products and corporate
      brand.  We will hold the proceeds in trust until our merger with
      On4 is completed. If our merger agreement with On4 does not complete and
      is terminated, we will return your investment.

            
	 
    	 
    
	
              Closing

            	
              The closing
      of the transactions contemplated by this Agreement (the “Closing”) will
      take place once we have closed the merger with On4.  All funds
      provided to us in connection with this offering will be held in trust
      until the closing of the merger with On4.  Upon closing, we will
      cause to be delivered to purchasers, who’s Subscription Agreements and
      funds we have accepted, the Share and Warrant certificates representing
      the investment that has been made.

            
	 
    	 
    
	
              Resale

            	
              The
      securities offered hereby are subject to stringent limitations on their
      resale or transfer by an investor.  Persons who purchase Units
      pursuant to this offering will not have the benefit of a review of the
      material by any securities commission or other regulatory
      authority.  Sales of the Units will only be made in accordance
      with exemptions from registration and prospectus requirements under
      applicable securities legislation.

            
	 
    	 
    
	
              Registration

            	
              Investors are
      granted registration rights covering the resale of the Shares and the
      shares issuable upon exercise of the Warrants, whereby we are obligated to
      use our best efforts to register the resale of the Shares and the shares
      issuable upon exercise of the Warrants by filing a registration statement
      with the SEC under the United States Securities Act of 1933 within 30 days
      of closing of the merger.

            
	 
    	 
    
	
              Business

            	
              We were
      incorporated in Delaware on June 4, 2001.  To date, we have
      generated nominal revenues.  We have entered into a Merger
      Agreement Term Sheet with On4 Communications, Inc., an Arizona company
      (“On4”).  The closing of this financing is subject to the
      closing of the merger with On4.

               

              On4
      manufactures industry-leading two-way communication devices that track
      people, pets, assets, inventory or just about anything else that is of
      importance to its customers. Incorporating both proprietary and
      non-proprietary hardware, On4 Code Division Multiple Access (CDMA) based
      devices are harmonized with some of the most sophisticated Location Based
      Service (LBS) tracking software available on the market today, enabling
      On4 to provide seamless, integrated end-to-end tracking solutions for
      On4’s customers.

               

              On4 can
      provide either hardware-only or fully integrated custom solutions,
      depending on end-user requirements. On4 specializes in the integration of
      proprietary and non-proprietary hardware and wireless carrier platforms
      with non-competing vertical partners to access lucrative consumer-based
      niche markets.

               

              We face all
      of the risks inherent in a new business.  In addition, we cannot
      provide historical information and financial data about our planned
      operations upon which a prospective investor can make an informed judgment
      as to our future prospects.  The purchase of the securities
      offered hereby must therefore be regarded as the placing of funds at a
      high risk in a new or “start-up” venture with all the unforeseen costs,
      expenses, problems, and difficulties to which such ventures are
      subject.

               

              We have
      limited financial resources, no revenues and can give you no assurance
      that additional funding will be available to us for development of our
      projects.  The only significant source of funds presently
      available to us is the sale of our equity capital.  There can be
      no assurance that we will be able to obtain adequate financing in the
      future or that the terms of such financing will be
      favorable.  Failure to obtain such additional financing could
      result in delay or indefinite postponement of the development of our
      projects.

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