Document:

Amended and Restated Employee Stock Purchase Plan

EXHIBIT 10.8.1 
 
MICRO THERAPEUTICS, INC. 
 
THIRD AMENDED AND RESTATED 
EMPLOYEE STOCK PURCHASE PLAN 
 
The MICRO THERAPEUTICS, INC. EMPLOYEE STOCK PURCHASE PLAN (the
“Plan”) was adopted effective February 18, 1997, was amended May 29, 1998 and May 27, 1999, and is hereby amended and restated by MICRO THERAPEUTICS, INC., a Delaware corporation (the “Company”) to be effective on June 1, 2002
(the “Amendment Date”). 
 
1.

 
PURPOSE OF THE PLAN

 
1.1 Purpose. The
Company has determined that it is in its best interest to provide incentives to attract and retain employees and to increase employee morale by providing a program through which employees of the Company, and of such of the Company’s
subsidiaries as the Company’s Board of Directors (the “Board of Directors”) may from time to time designate (each a “Designated Subsidiary”, and collectively, “Designated Subsidiaries”), may acquire a proprietary
interest in the Company through the purchase of shares of the common stock of the Company (“Company Stock”). The Plan was established by the Company to permit employees to subscribe for and purchase directly from the Company shares of the
Company Stock at a discount from the market price, and to pay the purchase price in installments by payroll deductions. The Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of
1986, as amended from time to time (the “Code”). The provisions of the Plan are to be construed in a manner consistent with the requirements of Section 423 of the Code. The Plan is not intended to be an employee benefit plan under the
Employee Retirement Income Security Act of 1974, and therefore is not required to comply with that Act. 
 
2. 
 
DEFINITIONS 
 
2.1 Amendment Date. “Amendment Date” means June 1, 2002. 
 
2.2 Compensation. “Compensation” means the amount indicated on the Form W-2, including any elective
deferrals with respect to a plan of the Company qualified under either Section 125 or Section 401(a) of the Code, issued to an employee by the Company. 
 
2.3 Employee. “Employee” means each person currently employed by the Company or any of its Designated
Subsidiaries, any portion of whose income is subject to withholding of income tax or for whom Social Security retirement contributions are made by the Company or any Designated Subsidiary. 
 
2.4 Effective Date. “Effective Date” means the effective date of the
Company’s first Registration Statement filed with the Securities and Exchange Commission registering Company Stock. 
 

 
2.5
5% Owner. “5% Owner” means an Employee who, immediately after the grant of any rights under the Plan, would own Company Stock or hold outstanding options to purchase Company Stock possessing 5% or more of
the total combined voting power of all classes of stock of the Company. For purposes of this Section, the ownership attribution rules of Code Section 425(d) shall apply. 
 
2.6 Grant Date. “Grant Date” means the first day of each Offering Period (July
1 and January 1) under the Plan. However, for the first Offering Period, the Grant Date shall be the Effective Date. 
 
2.7 Participant. “Participant” means an Employee who has satisfied the eligibility requirements of Section
3.1 and has become a participant in the Plan in accordance with Section 3.2. 
 
2.8 Plan Year. “Plan Year” means the twelve consecutive month period ending on the last day of December. 
 
2.9 Offering Period. “Offering
Period” means the six-month periods from July 1 through December 31 and January 1 through June 30 of each Plan Year. However, the first Offering Period shall commence on the Effective Date and end on June 30, 1997, regardless of whether such
initial Offering Period is more or less than six months. 
 
2.10 Purchase Date. “Purchase Date” means the last day of each Offering Period (December 31 or June 30). 
 
3. 
 
ELIGIBILITY AND PARTICIPATION 
 
3.1 Eligibility. Each Employee of the Company, or any Designated Subsidiary, who, on the Grant Date, is customarily
engaged on a regularly-scheduled basis of more than twenty (20) hours per week for more than five (5) months per calendar year and who has been employed for at least ninety (90) days (or, for the initial Offering Period only, such Employees who are
employed on the Effective Date) in the rendition of personal services to the Company, or any Designated Subsidiary, may become a Participant in the Plan on the Grant Date coincident with or next following his satisfaction of such requirements of
employment with the Company or any Designated Subsidiary. 
 
3.2 Participation. An Employee who has satisfied the eligibility requirements of Section 3.1 may become a Participant in the Plan upon his completion and delivery to the Human Resources Department of the Company
of a stock purchase agreement provided by the Company (the “Stock Purchase Agreement”) authorizing payroll deductions. Payroll deductions for a Participant shall commence on the Grant Date coincident with or next following the filing of
the Participant’s Stock Purchase Agreement and shall remain in effect until revoked by the Participant by the filing of a notice of withdrawal from the Plan under Article VIII or by the filing of a new Stock Purchase Agreement providing for a
change in the Participant’s payroll deduction rate under Section 5.2. 
 
3.3 Special Rules. Under no circumstances shall 
 
(a) A 5% Owner be granted a right to purchase Company Stock under the Plan; 
 

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(b) A
Participant be entitled to purchase Company Stock under the Plan which, when aggregated with all other employee stock purchase plans of the Company, exceed an amount equal to the Aggregate Maximum. “Aggregate Maximum” means an amount equal
to $25,000 worth of Company Stock (determined using the fair market value of such Company Stock at each applicable Grant Date) during each calendar year; or 
 
(c) The number of shares of Company Stock purchasable by a Participant on any Purchase Date exceed 2,500 shares, subject to
periodic adjustments under Section 10.4. 
 
4.

 
OFFERING PERIODS 
 
4.1 Offering Periods. The initial grant
of the right to purchase Company Stock under the Plan shall occur on the Effective Date and terminate on June 30, 1997. Thereafter, the Plan shall provide for Offering Periods commencing on each Grant Date and terminating on the next following
Purchase Date. 
 
5. 
 
PAYROLL DEDUCTIONS 
 
5.1 Participant Election. Upon completion
of the Stock Purchase Agreement, each Participant shall designate the amount of payroll deductions to be made from his or her paycheck to purchase Company Stock under the Plan. The amount of payroll deductions shall be designated in whole
percentages of Compensation or in whole dollar amounts, not to exceed 20% of Compensation. The amount so designated upon the Stock Purchase Agreement shall be effective as of the next Grant Date and shall continue until terminated or altered in
accordance with Section 5.2 below. 
 
5.2 Changes in Election. A Participant may terminate participation in the Plan at any time prior to the close of an Offering Period as provided in Article 8. A Participant may decrease or increase the rate of
payroll deductions one time during any Offering Period by completing and delivering to the Human Resources Department of the Company a new Stock Purchase Agreement setting forth the desired change. A Participant may also terminate payroll deductions
and have accumulated deductions for the Offering Period applied to the purchase of Company Stock as of the next Purchase Date by completing and delivering to the Human Resources Department a new Stock Purchase Agreement setting forth the desired
change. Any change under this Section shall become effective on the next payroll period (to the extent practical under the Company’s payroll practices) following the delivery of the new Stock Purchase Agreement. 
 
5.3 Participant Accounts. The Company
shall establish and maintain a separate account (“Account”) for each Participant. The amount of each Participant’s payroll deductions shall be credited to his Account. No interest will be paid or allowed on amounts credited to a
Participant’s Account. All payroll deductions received by the Company under the Plan are general corporate assets of the Company and may be used by the Company for any corporate purpose. The Company is not obligated to segregate such payroll
deductions. 
 

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6.

 
GRANT OF PURCHASE RIGHTS

 
6.1 Right to Purchase
Shares. On each Grant Date, each Participant shall be granted a right to purchase at the price determined under Section 6.2 that number of shares and partial shares of Company Stock that can be purchased or issued by the Company based upon
that price with the amounts held in his Account, subject to the limits set forth in Section 3.3. In the event that there are amounts held in a Participant’s Account that are not used to purchase Company Stock, such amounts shall remain in the
Participant’s Account and shall be eligible to purchase Company Stock in any subsequent Offering Period. 
 
6.2 Purchase Price. The purchase price for any Offering Period shall be the lesser of: 
 
(a) 85% of the Fair Market Value of Company Stock on
the Grant Date; or 
 
(b) 85% of the Fair
Market Value of Company Stock on the Purchase Date. 
 
6.3 Fair Market Value. “Fair Market Value” means for the initial Grant Date (which is the Effective Date), the price per share at which the Common Stock is to be sold to the public in the initial public
offering of the Common Stock. For any subsequent date thereafter, “Fair Market Value” shall mean the value of one share of Company Stock, determined as follows: 
 
(a) If the Company Stock is then listed or admitted to trading on the Nasdaq National Market System
or a stock exchange which reports closing sale prices, the Fair Market Value shall be the closing sale price on the date of valuation on the Nasdaq National Market System or principal stock exchange on which the Company Stock is then listed or
admitted to trading, or, if no closing sale price is quoted or no sale takes place on such day, then the Fair Market Value shall be the closing sale price of the Company Stock on the Nasdaq National Market System or such exchange on the next
preceding day on which a sale occurred. 
 
(b) If the Company Stock is not then listed or admitted to trading on the Nasdaq National Market System or a stock exchange which reports closing sale prices, the Fair Market Value shall be the average of the closing bid and
asked prices of the Company Stock in the over-the-counter market on the date of valuation. 
 
(c) If neither (a) nor (b) is applicable as of the date of valuation, then the Fair Market Value shall be determined by the Administrator in good faith using any reasonable method of valuation,
which determination shall be conclusive and binding on all interested parties. 
 
7. 
 
PURCHASE OF STOCK 
 
7.1 Purchase of Company Stock. Absent an election by the Participant to terminate and have his or her Account returned, on each Purchase Date, the Plan shall purchase on behalf of each Participant the maximum
number of whole shares of Company Stock at the purchase price determined under Section 6.2 above as can be purchased with the amounts held in each Participant’s Account. In the event that there are amounts held in a Participant’s Account
that are not used to purchase Company Stock, all such amounts shall be held in the Participant’s Account and carried forward to the next Offering Period. 
 

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7.2
Delivery of Company Stock. 
 
(a) Company Stock acquired under the Plan may either be issued directly to Participants or may be issued to a contract administrator (“Administrator”) engaged by the Company to administer the Plan under Article 9. If
the Company Stock is issued in the name of the Administrator, all Company Stock so issued (“Plan Held Stock”) shall be held in the name of the Administrator for the benefit of the Plan. The Administrator shall maintain accounts for the
benefit of the Participants which shall reflect each Participant’s interest in the Plan Held Stock. Such accounts shall reflect the number of whole and partial shares of Company Stock that are being held by the Administrator for the benefit of
each Participant. 
 
(b) Any Participant
may elect to have the Company Stock purchased under the Plan from his or her Account be issued directly to the Participant. Any election under this paragraph shall be on the forms provided by the Company and shall be issued in accordance with
paragraph (c) below. 
 
(c) In the event
that Company Stock under the Plan is issued directly to a Participant, the Company will deliver to each Participant a stock certificate or certificates issued in his name for the number of shares of Company Stock purchased as soon as practicable
after the Purchase Date. Where Company Stock is issued under this paragraph, only full shares of stock will be issued to a Participant. The time of issuance and delivery of shares may be postponed for such period as may be necessary to comply with
the registration requirements under the Securities Act of 1933, as amended, the listing requirements of any securities exchange on which the Company Stock may then be listed, or the requirements under other laws or regulations applicable to the
issuance or sale of such shares. 
 
8.

 
WITHDRAWAL 
 
8.1 In Service Withdrawals. At any time
prior to the Purchase Date of an Offering Period, any Participant may withdraw the amounts held in his Account by executing and delivering to the Human Resources Department for the Company written notice of withdrawal on the form provided by the
Company. In such a case, the entire balance of the Participant’s Account shall be paid to the Participant, without interest, as soon as is practicable. Upon such notification, the Participant shall cease to participate in the Plan for the
remainder of the Offering Period, and for the immediately following Offering Period in which the notice is given. Any Employee who has withdrawn under this Section shall be excluded from participation in the Plan for the remainder of the Offering
Period and for the immediately following Offering Period, but may then be reinstated as a participant for a subsequent Offering Period by executing and delivering a new Stock Purchase Agreement to the Human Resources Department of the
Company. 
 
8.2 Termination of
Employment. 
 
(a) In the event
that a Participant’s employment with the Company terminates for any reason, the Participant shall cease to participate in the Plan on the date of termination. As soon as is practical following the date of termination, the entire balance of the
Participant’s Account shall be paid to the Participant or his beneficiary, without interest. 
 
(b) A Participant may file a written designation of a beneficiary who is to receive any shares of Company Stock purchased under
the Plan or any cash from the Participant’s Account 
 

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in the event of his or her death subsequent to a Purchase Date, but prior to delivery of such shares and cash. In addition, a Participant may
file a written designation of a beneficiary who is to receive any cash from the Participant’s Account under the Plan in the event of his death prior to a Purchase Date under paragraph (a) above. 
 
(c) Any beneficiary designation under paragraph (b)
above may be changed by the Participant at any time by written notice. In the event of the death of a Participant, the Committee may rely upon the most recent beneficiary designation it has on file as being the appropriate beneficiary. In the event
of the death of a Participant where no valid beneficiary designation exists or the beneficiary has predeceased the Participant, the Committee shall deliver any cash or shares of Company Stock to the executor or administrator of the estate of the
Participant, or if no such executor or administrator has been appointed to the knowledge of the Committee, the Committee, in its sole discretion, may deliver such shares of Company Stock or cash to the spouse or any one or more dependents or
relatives of the Participant, or if no spouse, dependent or relative is known to the Committee, then to such other person as the Committee may designate. 
 
9. 
 
PLAN ADMINISTRATION 
 
9.1 Plan Administration. 
 
(a) Authority to control and manage the operation and administration of the Plan shall be vested in the Board of Directors (the
“Board”) for the Company, or a committee (“Committee”) thereof. The Board or Committee shall have all powers necessary to supervise the administration of the Plan and control its operations. 
 
(b) In addition to any powers and authority conferred
on the Board or Committee elsewhere in the Plan or by law, the Board or the Committee shall have the following powers and authority: 
 
(i) To designate agents to carry out responsibilities relating to the Plan; 
 
(ii) To administer, interpret, construe and apply
this Plan and to answer all questions which may arise or which may be raised under this Plan by a Participant, his beneficiary or any other person whatsoever; 
 
(iii) To establish rules and procedures from time to time for the conduct of its business and for the administration and
effectuation of its responsibilities under the Plan; and 
 
(iv) To perform or cause to be performed such further acts as it may deem to be necessary, appropriate, or convenient for the operation of the Plan. 
 
(c) Any action taken in good faith by the Board or Committee in the exercise of authority conferred
upon it by this Plan shall be conclusive and binding upon a Participant and his beneficiaries. All discretionary powers conferred upon the Board shall be absolute. 
 
 

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9.2
Limitation on Liability. No Employee of the Company nor member of the Board or Committee shall be subject to any liability with respect to his duties under the Plan unless the person acts fraudulently or in bad faith. To the extent
permitted by law, the Company shall indemnify each member of the Board or Committee, and any other Employee of the Company with duties under the Plan who was or is a party, or is threatened to be made a party, to any threatened, pending or completed
proceeding, whether civil, criminal, administrative, or investigative, by reason of the person’s conduct in the performance of his duties under the Plan. 
 
10. 
 
COMPANY STOCK 
 
10.1 Limitations on Purchase of Shares. Initially, the maximum number of shares of Company Stock that shall be made
available for sale under the Plan shall be 100,000 shares, subject to adjustment under Section 10.4 below. As of May 29, 1998, an additional 50,000 shares, subject to adjustment under Section 10.4 below were made available for sale under the Plan.
The shares of Company Stock to be sold to Participants under the Plan will be issued by the Company. As of May 27, 1999, an additional 50,000 shares will be made available under the Plan, subject to adjustment under Section 10.4 below. Effective on
the Amendment Date, an additional 200,000 shares will be made available under the Plan (bringing the total to 400,000 as of the Amendment Date), subject to adjustment under Section 10.4 below. If the total number of shares of Company Stock that
would otherwise be issuable pursuant to rights granted pursuant to Section 6.1 of the Plan at the Purchase Date exceeds the number of shares then available under the Plan, the Company shall make a pro rata allocation of the shares remaining
available in as uniform and equitable manner as is practicable. In such event, the Company shall give written notice of such reduction of the number of shares to each participant affected thereby and any unused payroll deductions shall be returned
to such participant if necessary.  
 
10.2 Company Stock. The Participant will have no interest or voting right in shares to be purchased under Section 6.1 of the Plan until such shares have been purchased. 
 
10.3 Registration of Company Stock.
Shares to be delivered to a Participant under the Plan will be registered in the name of the Participant unless designated otherwise by the Participant.  
 
10.4 Changes in Capitalization of the Company. Subject to any required action by the
stockholders of the Company, the number of shares of Company Stock covered by each right under the Plan which has not yet been exercised and the number of shares of Company Stock which have been authorized for issuance under the Plan but have not
yet been placed under rights or which have been returned to the Plan upon the cancellation of a right, as well as the Purchase Price per share of Company Stock covered by each right under the Plan which has not yet been exercised, shall be
proportionately adjusted for any increase or decrease in the number of issued shares of Company Stock resulting from a stock split, stock dividend, spin-off, reorganization, recapitalization, merger, consolidation, exchange of shares or the like.
Such adjustment shall be made by the Board of Directors for the Company, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Company Stock subject to any right granted hereunder. 
 
10.5 Merger of Company. In the event that
the Company at any time proposes to merge into, consolidate with or enter into any other reorganization pursuant to which the Company is not the surviving 

 

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entity (including the sale of substantially all of its assets or a “reverse” merger in which the Company is the surviving entity),
the Plan shall terminate, unless provision is made in writing in connection with such transaction for the continuance of the Plan and for the assumption of rights theretofore granted, or the substitution for such rights of new rights covering the
shares of a successor corporation, with appropriate adjustments as to number and kind of shares and prices, in which event the Plan and the rights theretofore granted or the new rights substituted therefor, shall continue in the manner and under the
terms so provided. If such provision is not made in such transaction for the continuance of the Plan and the assumption of rights theretofore granted or the substitution for such rights of new rights covering the shares of a successor corporation,
then the Board of Directors or its committee shall cause written notice of the proposed transaction to be given to the persons holding rights not less than 10 days prior to the anticipated effective date of the proposed transaction, and, concurrent
with the effective date of the proposed transaction, such rights shall be exercised automatically in accordance with Section 7.1 as if such effective date were a Purchase Date of the applicable Offering Period unless a Participant withdraws from the
Plan as provided in Section 8.1. 
 
11.

 
MISCELLANEOUS MATTERS

 
11.1 Amendment and
Termination. The Plan shall terminate ten (10) years after the Effective Date. Since future conditions affecting the Company cannot be anticipated or foreseen, the Company reserves the right to amend, modify, or terminate the Plan at any
time. Upon termination of the Plan, all benefits shall become payable immediately. Notwithstanding the foregoing, no such amendment or termination shall affect rights previously granted, nor may an amendment make any change in any right previously
granted which adversely affects the rights of any Participant. In addition, no amendment may be made without prior approval of the stockholders of the Company if such amendment would: 
 
(a) Increase the number of shares of Company Stock
that may be issued under the Plan; 
 
(b)
Materially modify the requirements as to eligibility for participation in the Plan; or 
 
(c) Materially increase the benefits which accrue to Participants under the Plan. 
 
11.2 Stockholder Approval. Continuance of the Plan and the effectiveness of any right granted hereunder shall be
subject to approval by the stockholders of the Company, within twelve months before or after the date the Plan is adopted by the Board. 
 
11.3 Benefits Not Alienable. Benefits under the Plan may not be assigned or alienated, whether voluntarily or
involuntarily. Any attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Article VIII. 
 
11.4 No Enlargement of Employee Rights.
This Plan is strictly a voluntary undertaking on the part of the Company and shall not be deemed to constitute a contract between the Company and any Employee or to be consideration for, or an inducement to, or a condition of, the employment of any
Employee. Nothing contained in the Plan shall be deemed to give the right to any Employee to be retained 

 

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in the employ of the Company or to interfere with the right of the Company to discharge any Employee at any time. 
 
11.5 Governing Law. To the extent not
preempted by Federal law, all legal questions pertaining to the Plan shall be determined in accordance with the laws of the State of Delaware. 
 
11.6 Non-business Days. When any act under the Plan is required to be performed on a day that falls on a Saturday,
Sunday or legal holiday, that act shall be performed on the next succeeding day which is not a Saturday, Sunday or legal holiday. Notwithstanding the above, Fair Market Value shall be determined in accordance with Section 6.3. 
 
11.7 Compliance With Securities Laws.
Notwithstanding any provision of the Plan, the Committee shall administer the Plan in such a way to ensure that the Plan at all times complies with any requirements of Federal Securities Laws. For example, affiliates may be required to make
irrevocable elections in accordance with the rules set forth under Section 16b-3 of the Securities Exchange Act of 1934. 
 

9<PAGE>

                                                                    EXHIBIT 10.1
                                                                    ------------

                          TECHNOLOGY PURCHASE AGREEMENT

This Agreement is dated this 19th day of March, 2003 by and between ASI
Technology Corporation ("ASI"), a Nevada corporation, having a principal place
of business located 980 American Pacific Drive, No. 111, Henderson, Nevada 89014
and Markland Technologies, Inc., a Florida Corporation ("Markland"), having a
principal place of business located at 54 Danbury Road Suite #207 Ridgefield, CT
06877.

                                    RECITALS

WHEREAS, ASI has acquired, developed and patented certain gas plasma antenna
("GPA") technology that utilizes ionized gas in a vessel as an antenna to both
receive and transmit radio frequency signals and as a reflector/shield/filter
for radio frequency signals. As a result of ASI's inventions it was awarded, by
assignment and/or has pending the patents and patent applications listed on
Exhibit A.

WHEREAS, this GPA technology is believed to have commercial viability in both
commercial and Department of Defense applications but will require further
development, additional capital and research.

WHEREAS, ASI desires to pursue other business ventures and desires to sell and
otherwise assign all of its right, title, interest and benefit in and to its GPA
technology, including the related patents, patent applications, current
contracts and contract proposals and backlog and related technology, equipment
and all other intellectual property rights related thereto, as defined in
paragraph 1 a) hereof, to Markland according to the terms and conditions set
forth below in order to allow further development of this technology to be
completed.

WHEREAS, ASI and Markland desire to cooperate as provided herein with respect to
existing government contracts.

WHEREAS, Markland is a company looking for new technology to purchase and
exploit and Markland desires to purchase ASI's GPA issued and pending patents
and related technology, current contracts and contract proposals and backlog and
equipment according to the terms and conditions below.

                                      TERMS

Now, therefore, in consideration of the mutual promises described below and
other good and valuable consideration, the sufficiency of which is hereby
acknowledged, the parties hereby agree to be legally bound as follows:

1. Definitions. For purposes of this Agreement, the following definitions apply:

         a) "Technology" shall be defined as all right, title, interest, and
benefit of ASI and all powers and privileges of ASI (including to make, have
made, use, or sell under patent law; to copy, adapt, distribute, display, and
perform under copyright law; and to use and disclose under trade secret law) in
and to all proprietary rights embodied in or comprising the GPA technology as of
the Closing ("Proprietary Rights"), defined as follows:

                                       1
<PAGE>

                  (1) All United States and foreign patents and patent
applications, including, without limitation, the issued patents and patent
applications listed on Exhibit A hereto, patent license rights and patentable
inventions, any continuation or continuation-in-part of, division of, or
substitution for any such applications, any United States patent issued thereon,
any reissue or reexamination application filed on any such United States patent,
any reissue patent or reexamined patent issuing thereon, and any extension of
any such United States patent or reissue patent and any and all applications for
patent in any country foreign to the United States on any invention disclosed in
any of said patents or patent applications described above and any patents
granted thereon;

                  (2) All trade secrets, know-how, confidential or proprietary
information, including, without limitation, the confidential and proprietary
information identified in Exhibit B hereto, shop rights, technical data,
technology licenses, concepts, drawings, schematics, prototypes, improvements,
enhancements, upgrades, materials, works of authorship, derivative, and
derivative works, mask works, engineering files, system documentation, flow
charts, computer software code and design specifications acquired or developed
by ASI or any of its affiliates that are embodied or incorporated in or derived
from the Proprietary Rights or in connection with the development of the
programming, inventions, processes, and apparati entailed by the Proprietary
Rights;

                  (3) The equipment identified in Exhibit C hereto;

                  (4) All trademarks, service marks and trade names, including
without limitation, the trademark and trade name identified in Exhibit D hereto
(including, in the case of trademarks, service marks and trade names, all
goodwill appertaining thereto), moral rights (defined as any right to claim
authorship of a work, any right to object to any distortion or other
modification of a work, and any similar right, existing under the law of any
country in the world, or under any treaty), and copyrights;

                  (5) All market research and information, contact lists,
marketing materials, business plans, notes, documents and records pertaining in
any way to any of the Proprietary Rights and any existing or future products
incorporating any of the Proprietary Rights or any item described in any of the
foregoing paragraphs and any agreements with any other parties to contribute to
the further development of any of the Proprietary Rights; and

                  (6) All other intellectual property rights and legal
protections in every and all countries and jurisdictions owned or claimed by ASI
or any of its affiliates and embodied in or comprising any of the Proprietary
Rights; provided, however, that the Technology and Proprietary Rights shall not
include any of ASI's rights, titles or interests in and to any of the contracts
and contract proposals listed in Exhibit E hereto, the assignment of which from
ASI to Markland shall be as provided in Section 5 hereof.

         b) "Gross Revenues from Contracts" shall include all amounts actually
received by ASI from the government contracts relating to the Technology
existing at the Closing as listed on Exhibit E hereto or awarded to ASI prior to
the Closing other than amounts received by ASI in payment of invoices issued or
effective on or before the Closing.

         c) "Securities" shall be the shares of Markland common stock issued to
ASI as part of the Technology Purchase Price.

         d) "Market Price" on any trading day shall be the volume weighted
average price per share of Markland's common stock from the hours of 9:30 AM to
4:00 PM (Eastern) as reported by Bloomberg Financial using the AQR function. The
average Market Price per share for a period shall be the average of each trading
day's Market Price during such period.

                                       2
<PAGE>

2. Assignments; Technology Purchase Price.

         a) ASI hereby agrees to sell, assign and transfer, and at the Closing
shall sell, assign and transfer, to Markland in perpetuity (or for the longest
period of time otherwise permitted by law), and Markland hereby agrees to
purchase and accept, all of ASI's right, title, interest and benefit in and to
the Technology and Proprietary Rights. As payment for such sale, assignment and
transfer, Markland agrees to pay ASI in cash an amount equal to One Hundred
Fifty Thousand Dollars ($150,000) (the "Cash Payment"), payable as hereinafter
provided, and to issue to ASI and its designees, in the aggregate, a number of
shares of the Securities having an aggregate value of Eight Hundred Fifty
Thousand Dollars ($850,000) computed as described below (collectively the
"Technology Purchase Price") which the parties agree equals or exceeds the fair
market value of the Technology and Proprietary Rights determined on the basis of
arms-length negotiations.

         b) The Cash Payment shall be paid as follows:

                  (1) A nonrefundable amount equal to Ten Thousand Dollars
($10,000) shall be paid upon execution and delivery of this Agreement.

                  (2) A nonrefundable amount equal to Ten Thousand Dollars
($10,000) shall be paid every thirty (30) days following the execution and
delivery of this Agreement and the balance of the Cash Payment shall be paid at
Closing.

         c) The Securities constituting a portion of the Technology Purchase
Price shall be issued to ASI at Closing. The number of shares of the Securities
shall be equal to the quotient obtained by dividing (i) $850,000 by (ii) 85% of
the average Market Price per share of Markland common stock during the twenty
(20) trading days immediately preceding the date of Closing. For example: If
Markland common stock average Market Price for the twenty (20) trading days
immediately preceding the date of Closing is $.20/share, the number of shares of
Securities issued to ASI shall be equal to $850,000 divided by $.17 (85% of
$.20), resulting in 5,000,000 shares of Markland common stock. Markland
acknowledges and agrees that a number of Securities equal to five percent (5%)
of the number of Securities issuable to ASI hereunder shall be issued by
Markland to Patriot Scientific Corporation ("Patriot") pursuant to that certain
Purchase Agreement between ASI and Patriot dated as of August 20, 1999 (the
"Patriot Agreement").

3. The Closing and Closing Date. Subject to the terms and conditions of this
Agreement, the sale and purchase of the Technology and the Proprietary Rights as
provided for in this Agreement shall be consummated at a closing (the "Closing")
to be held at the offices of ASI Technology Corporation, 980 American Pacific
Drive, No. 111, Henderson, Nevada 89014 at 10:00 a.m. on the earlier of (i) the
date on which the last of the contracts listed in Exhibit E hereto has been
assigned to Markland and (ii) the date that is ninety (90) days from the date of
this Agreement, or at such other place, time and date as ASI and Markland may
mutually agree in writing. The date on which the Closing shall actually take
place is herein referred to as the "Closing Date".

4. Closing Deliveries and Conditions.

                                       3
<PAGE>

         a) ASI's Closing Deliveries and Conditions of Markland's Obligations.
The obligations of Markland to consummate the transactions set forth in this
Agreement are subject to the fulfillment on, or before, the Closing Date of each
of the following conditions, any of which may be waived in writing by Markland:

                  (1) ASI shall have duly executed and delivered to Markland the
Sublicense Agreement substantially in the form attached hereto as Exhibit F (the
"Sublicense Agreement") and such other instruments of transfer as may be
reasonably requested by Markland to transfer the Technology and the Proprietary
Rights to Markland, all in a form reasonably satisfactory to Markland;

                  (2) No preliminary or permanent injunction or other binding
order, decree or ruling issued by a court or governmental agency shall be in
effect which shall have the effect of preventing the consummation of the
transactions contemplated by this Agreement;

                  (3) ASI shall have performed and complied with all covenants,
agreements, obligations and conditions contained in this Agreement that are
required to be performed or complied with by it on or before the Closing; and

                  (4) The representations and warranties of ASI contained in
this Agreement and any exhibits and schedules attached or referenced thereto
shall be true and correct on and as of the Closing Date.

         b) Markland's Closing Deliveries and Conditions of ASI's Obligations.
The obligations of ASI to consummate the transactions set forth in this
Agreement are subject to the fulfillment on, or before, the Closing Date of each
of the following conditions, any of which may be waived in writing by ASI:

                  (1) Markland shall have paid all amounts of the Cash Payment
due and payable prior to Closing and shall pay the unpaid balance of the Cash
Payment at Closing;

                  (2) Markland shall have duly executed and delivered to ASI the
Registration Rights Agreement substantially in the form attached hereto as
Exhibit G (the "Registration Rights Agreement");

                  (3) Markland shall have duly executed and delivered to ASI
share certificates registered in the names of ASI and Patriot evidencing, in the
aggregate, the Securities;

                  (4) No preliminary or permanent injunction or other binding
order, decree or ruling issued by a court or governmental agency shall be in
effect which shall have the effect of preventing the consummation of the
transactions contemplated by this Agreement;

                  (5) Markland shall have performed and complied with all
covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or before the
Closing; and

                  (6) The representations and warranties of Markland contained
in this Agreement and any exhibits and schedules attached or referenced thereto
shall be true and correct on and as of the Closing Date.

                                       4
<PAGE>

5. Purchase Price Adjustment on Reverse Split.

         a) In the event the outstanding shares of Markland common stock shall
be combined or consolidated, by reclassification, reverse stock split or
otherwise, into a lesser number of shares of Markland Common Stock (a "Reverse
Split") at any time during the period from Closing and ending eighteen (18)
months after Closing (the "Adjustment Period"), then for each such Reverse
Split, there shall be computed an adjustment in the number of shares of Markland
common stock and if such adjustment is positive then the computed number of
additional shares of Markland common stock shall be issued to ASI in accordance
with this Section 5. The adjustment shall be computed as follows:

                  (1) Definitions.

                           (i) "Number of Post Split Common Shares Previously
Issued" shall mean the number of shares of Markland common stock issued to ASI
at Closing plus any additional shares of Markland common stock issued to ASI
pursuant to the Registration Rights Agreement as adjusted by the Reverse Split.

                           (ii) "Number of Readjusted Shares" shall mean the
number of shares of Markland common stock equal to the quotient obtained by
dividing (i) $850,000 by (ii) 85% of the average Market Price per share of
Markland common stock during the thirty (30) trading days immediately following
the effective date of the Reverse Split. The Number of Readjusted Shares so
computed shall be increased by 15% if such an adjustment was made pursuant to
the Registration Rights Agreement in computation of the Number of Post Split
Common Shares Previously Issued.

                  (2) If the Number of Readjusted Shares is greater than the
Number of Post Split Common Shares Previously Issued then Markland shall
promptly, but in no event later than five (5) business days following the end of
such thirty (30) day period, issue to ASI a number of additional shares of
Markland common stock equal to such difference. If the Number of Readjusted
Shares is less than the Number of Post Split Common Shares Previously Issued
then no adjustment shall be made.

As an example, if 5,000,000 shares of Markland common stock are issued at
Closing, Markland subsequently effects a one-for-ten (1-for-10) Reverse Split
during the Adjustment Period, and the average Market Price for the thirty (30)
trading days after the Reverse Split is $1.00, then the additional shares would
be computed as follows (assuming no adjustment is made pursuant to the
Registration Rights Agreement):

     A. Number of Post Split Common Shares Previously Issued = 5,000,000 divided
        by 10 or 500,000.

     B. Number of Readjusted Shares = $850,000 divided by ($1.00 less 15% or
        $.85) or 1,000,000 shares.

     C. Since the Number of Readjusted Shares exceeds the Number of Post
        Rollback Common Shares Previously Issued then Markland would issue
        500,000 additional shares of Markland common stock.

                                       5
<PAGE>

The above adjustment shall occur for each Reverse Split effected during the
Adjustment Period.

6. Government Contract Revenues, Costs and Personnel.

ASI is responsible for the completion and performance of the government
contracts listed in Exhibit E (the "Contracts") until completion of assignment
to Markland. The parties shall use their commercially reasonable efforts to
assign or transfer all Contracts from ASI to Markland as soon as practical after
execution of this Agreement, each party paying their own costs of such efforts.

Markland shall from April 1, 2003 use its best efforts to manage and administer
such services being performed under each Contract and prepare all reports
thereto in a manner consistent with normal practice and that employed by
Markland under contracts it performs for the government.

ASI shall pay Markland a fee equal to 100% of all Gross Revenues from Contracts
billed for the periods after April 1, 2003 when and as received by ASI. Markland
shall pay directly or reimburse ASI for all personnel, subcontract and other
costs of performing the Contracts and plasma antenna research, development,
marketing and services from and after April 1, 2003. Personnel transfers shall
be handled based on the effective transfer of the Contracts and as agreed upon
in writing between such personnel and the parties hereto. Markland has made its
own investigation into ASI consultants and ASI makes no representations
regarding the continued availability of consultants and personnel.

ASI shall be paid a fee of $2,500.00 per calendar month by Markland for
supporting administration of the contracts until all Contracts have been
assigned or transferred to Markland. The fee shall be due and payable in cash at
the end of each calendar month.

Markland understands the contracts can be terminated by the government pursuant
to the terms of the respective contracts. Notwithstanding any provision herein
to the contrary, express or implied, ASI shall in no event be liable to Markland
if any Contract is terminated either prior to, upon or after such Contract is
assigned or transferred to Markland.

Markland acknowledges and agrees that the STTR Contract in Exhibit E relates to
patented technology not included in the Technology or the Proprietary Rights but
is the subject of the license under the Sublicense Agreement.

7. Termination.

         (a) This Agreement may be terminated and abandoned prior to the Closing
Date:

                  (i) By written mutual consent of ASI and Markland; or

                  (ii) By ASI or Markland if any court or governmental agency of
competent jurisdiction shall have issued an order, decree or ruling or taken any
other action which prevents, restrains, enjoins or otherwise prohibits the
transactions contemplated hereby; or

                  (iii) By ASI by delivery of written notice to Markland if:(1)
ASI discovers any material error, mistake, misstatement or omission in the
representations and warranties of Markland in this Agreement, (2) Markland has
breached or violated this Agreement in any material respect and, if such breach
or violation is curable, has failed to cure such violations within ten (10) days
of receiving written notice thereof; or (3) the Closing has not occurred by the
date that is ninety (90) days from the date of this Agreement; or

                                       6
<PAGE>

                  (iv) By Markland by delivery of written notice to ASI if: (1)
Markland discovers any material error, mistake, misstatement or omission in the
representations and warranties of ASI in this Agreement, (2) ASI has breached or
violated this Agreement in any material respect and, if such breach or violation
is curable, has failed to cure such violations within ten (10) days of receiving
written notice thereof; or (2) the Closing has not occurred by the date that is
ninety (90) days from the date of this Agreement.

         (b) In the event that this Agreement is terminated as provided in this
Section 7 (a "Termination"), all further obligations of the parties under this
Agreement shall terminate without further liability of any party to any other
party or to the stockholders, directors or officers of any party; provided,
however, that (i) a Termination shall not relieve any party of any liability for
any breach of this Agreement or for any intentional misrepresentation or
intentional failure to comply with any agreement or covenant hereunder, and any
such Termination shall not be deemed to be a waiver of any available remedy for
any such breach, intentional misrepresentation or intentional failure to comply
with any such agreement or covenant and (ii) Markland shall execute and delivery
all documents and agreements and perform all acts necessary to reassign to ASI
all Contracts that have been assigned to Markland.

Once Markland has fully paid the Technology Purchase Price at Closing as
provided in Section 2, ASI agrees that it will have no claim against Markland
for the return of the Technology or the Proprietary Rights or any improvements
thereto or in voiding or rescinding this Agreement and the related assignments,
provided, however, that ASI reserves all other rights and remedies it may have
arising out of the breach or nonperformance of this Agreement by Markland.

8. Representations, Warranties and Covenants.

         a) ASI hereby represents and warrants to, and covenants with Markland
as follows:

                  (1) No Consents. No consents (other than necessary filings in
patent offices wherein Proprietary Rights have been registered or applications
therefor have been filed) of any other parties are necessary or appropriate
under any agreements concerning any of the Technology or the Proprietary Rights
in order for the transfer and assignment of any of the Technology and
Proprietary Rights under this Agreement to be legally effective.

                  (2) Marketable Title. To the best of ASI's knowledge, (i)
immediately prior to the Closing of this Agreement, ASI shall have good and
marketable title to the Technology and the Proprietary Rights, free and clear of
any and all liens, mortgages, encumbrances, pledges, security interests, or
charges of any nature whatsoever (collectively, "Liens") and, (ii) upon the
Closing, Markland shall receive good and marketable title to the Technology and
the Proprietary Rights, free and clear of any and all Liens.

                                       7
<PAGE>

                  (3) Technology and Proprietary Rights. To the best of ASI's
knowledge, (i) ASI is the sole owner of the entire right, title and interest in
and to the Technology and the Proprietary Rights subject to a royalty payable to
Patriot under the Patriot Agreement upon sale of the Technology and Proprietary
Rights in the form of five percent (5%) of the Securities issuable to ASI
hereunder and five percent (5%) of the Cash Payment payable to ASI hereunder,
which, with respect to such portion of the Cash Payment, will be the sole
obligation of ASI (the "Patriot Royalty") and (ii) the Technology and the
Proprietary Rights are free of all licenses, sublicenses, royalty or similar
payment obligations, liens, mortgages, encumbrances, pledges, or security
interests, of any nature whatsoever, other than the Patriot Royalty, and are not
subject to any outstanding injunction, judgement, order, decree, ruling, or
charge. ASI has the right and authority to enter into this Agreement and to
grant the rights granted herein. No facts have come to ASI's attention that
would form a basis for the belief that the Technology or the Proprietary Rights
or any rights thereunder owned by ASI are unenforceable or invalid and no
action, suit, proceeding, hearing, investigation, charge, complaint, claim, or
demand is pending or, to the best of ASI's knowledge, is threatened against ASI
that challenges the legality, validity, enforceability, use, or ownership of
such items. ASI has not agreed to indemnify any person for or against any
interference, infringement, misappropriation, or other conflict with respect to
such items. All material information affecting the patentability of the claims
of the Technology, the Proprietary Rights and patent rights thereunder known to
ASI has been disclosed to the United States Patent and Trademark Office and any
other governing entity as relate to such rights. There have been no transfers,
sales, assignments, licenses or other conveyance of any rights, title or
interest in or to such items and none are pending or contemplated except as
otherwise provided herein. The Technology and Proprietary Rights represent all
of the patents, patent applications, rights or inventions created or owned by
ASI that relate to the GPA technology. To the best of ASI's knowledge, the
Technology and the Proprietary Rights and the processes represented by them will
perform the functions as set forth in the patents and patent applications listed
in Exhibit A hereto and disclosed by ASI to Markland, and ASI does not have
knowledge of any matter that would prevent such performance. To the best of
ASI's knowledge, ASI has not, by any of its acts or acts of its agents, put any
of those rights into jeopardy.

                  (4) Contract Work. All prior government work has been
completed and there are no obligations for further work, development, reporting
or delivery of any items or work product except as disclosed in Exhibit E and
the Contracts related thereto.

                  (5) Use of Technology After Closing. ASI acknowledges that
after the Closing, Markland shall be free to develop, abandon, transfer, sell,
license or otherwise deal with the Technology without consent or claim by ASI
other than as otherwise provided in this Agreement.

         b) Markland acknowledges and agrees that it is buying the Technology
and the Proprietary Rights "AS IS", with no warranty or representation of any
kind except as expressly provided herein and with no assurance of future
revenues relating from the Technology or the Proprietary Rights. ASI DISCLAIMS
ANY AND ALL OTHER WARRANTIES, EITHER EXPRESS, IMPLIED OR STATUTORY, OR ARISING
BY COURSE OF CONDUCT OR PERFORMANCE, CUSTOM OR USAGE IN THE TRADE INCLUDING, BUT
NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

         c) Markland hereby represents and warrants to, and covenants with, ASI
as follows:

                                       8
<PAGE>

                  (1) Organization, Good Standing and Qualification. Markland is
a corporation duly organized, validly existing and in good standing under the
laws of the State of Florida. Markland has all requisite corporate power and
authority to own and operate its properties and assets, to execute and deliver
this Agreement and to issue and sell the Securities, as hereinafter defined, and
to carry out the provisions of this Agreement and to carry on its business as
presently conducted and as presently proposed to be conducted. Markland is duly
qualified and is authorized to do business and is in good standing as a foreign
corporation in all jurisdictions in which the nature of its activities and of
its properties (both owned and leased) makes such qualification necessary,
except for those jurisdictions in which failure to do so would not have a
material adverse effect on Markland or its business.

                  (2) Capitalization; Voting Rights. The authorized capital
stock of Markland consists of 500,000,000 shares of Common Stock, par value
$.0001 per share ("Common Stock"), and 5,000,000 shares of preferred stock, par
value $.0001 per share ("Preferred Stock"). As of March 14, 2003 Markland had
8,000 shares of Series C preferred stock designated with 5,225 shares
outstanding and 306,709,209 shares of Common Stock outstanding. A total of
73,130,267 shares of common stock are reserved for conversion under the Series C
Preferred Stock (such preferred convertible into 36,565,134 common shares at
March 14, 2003) and an additional 7,161,660 shares of common stock are intended
for future issuance to employees and consultants. There are no stock option
grants, warrants or other convertible instruments outstanding.

                  All issued and outstanding shares of Markland common stock (a)
have been duly authorized and validly issued, and (b) are fully paid and
nonassessable. The Securities issued to ASI are, and any additional shares of
Markland common stock issued pursuant hereto or the Registration Rights
Agreement will be, validly issued, fully paid and nonassessable, and will be
free of any liens or encumbrances; provided, however, that the Securities may be
subject to restrictions on transfer under state and/or federal securities laws
as set forth herein or as otherwise required by such laws at the time a transfer
is proposed.

                  (3) Authorization; Binding Obligations. All corporate action
on the part of Markland, its officers, directors and stockholders necessary for
the authorization of this Agreement, the Registration Rights Agreement, the
Sublicense Agreement (collectively, the "Transaction Documents") and the
performance of all obligations of Markland hereunder and thereunder and the
authorization, sale, issuance and delivery of the Securities pursuant hereto has
been taken prior to the Closing.

                  (4) Title to Properties and Assets; Liens, etc. Markland has
good and marketable title to its properties and assets, including the properties
and assets reflected in the most recent balance sheet, and good title to its
leasehold estates, in each case subject to no mortgage, pledge, lien, lease,
encumbrance or charge, other than (a) those resulting from taxes which have not
yet become delinquent, (b) minor liens and encumbrances which do not materially
detract from the value of the property subject thereto or materially impair the
operations of Markland, and (c) those that have otherwise arisen in the ordinary
course of business. All facilities, machinery, equipment, fixtures, vehicles and
other properties owned, leased or used by Markland are in good operating
condition and repair and are reasonably fit and usable for the purposes for
which they are being used.

                  (5) Compliance with Other Instruments. Markland is not in
violation or default of any term of its Certificate of Incorporation or Bylaws,
or of any provision of any mortgage, indenture, contract, agreement, instrument
or contract to which it is party or by which it is bound or of any judgment,
decree, order, writ or, to its knowledge, any statute, rule or regulation
applicable to Markland which would materially and adversely affect the business,
assets, liabilities, financial condition or operations of Markland. The
execution, delivery, and performance of and compliance with the Transaction
Documents, the issuance of the Securities and any additional shares of Markland

                                       9
<PAGE>

common stock pursuant hereto, will not, with or without the passage of time or
giving of notice, result in any such material violation, or be in conflict with
or constitute a default under any such term, or result in the creation of any
mortgage, pledge, lien, encumbrance or charge upon any of the properties or
assets of Markland or the suspension, revocation, impairment, forfeiture or
nonrenewal of any permit license, authorization or approval applicable to
Markland, its business or operations or any of its assets or properties.

                  (6) Litigation. There is no action, suit, proceeding or
investigation pending or to Markland's knowledge currently threatened in writing
against Markland that questions the validity of any of the Transaction Documents
or the right of Markland to enter into any of such agreement, or to consummate
the transactions contemplated hereby or thereby, or which might result, either
individually or in the aggregate, in any material adverse change in the assets,
condition or affairs of Markland, financially or otherwise, or any change in the
current equity ownership of Markland, nor is Markland aware that there is any
basis for the foregoing.

                  (7) Compliance with Laws; Permits. To its knowledge, Markland
is not in violation of any applicable statute, rule, regulation, order or
restriction of any domestic or foreign government or any instrumentality or
agency thereof in respect of the conduct of its business or the ownership of its
properties which violation would materially and adversely affect the business,
assets, liabilities, financial condition or operations of Markland. No
governmental orders, permissions, consents, approvals or authorizations are
required to be obtained and no registrations or declarations are required to be
filed in connection with the execution and delivery of any of the Transaction
Documents and the issuance of the Securities and any additional shares of
Markland common stock, except such as has been duly and validly obtained or
filed, or with respect to any filings that must be made after the Closing, as
will be filed in a timely manner. Markland has all franchises, permits, licenses
and any similar authority necessary for the conduct of its business as now being
conducted by it, the lack of which could materially and adversely affect the
business, properties, prospects or financial condition of Markland and believes
it can obtain, without undue burden or expense, any similar authority for the
conduct of its business as planned to be conducted.

                  (8) SEC Filings; Financial Statements of Markland.

                           (i) Markland has timely filed all forms, reports,
statements and documents required to be filed by it with the Securities and
Exchange Commission (the "SEC") since January 1, 2003 (collectively together
with any such forms, reports, statements and documents Markland may file
subsequent to the date hereof until the Closing, the "Markland Reports"). Each
Markland Report was prepared in accordance with the requirements of the
Securities Act of 1933, as amend, or the Securities Exchange Act of 1934, as
amended, as the case may be, and did not at the time it was filed contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements made therein, in
the light of the circumstances under which they were made, not misleading. No
subsidiary of Markland is subject to the periodic reporting requirements of the
Exchange Act or required to file any form, report or other document with the SEC
any stock exchange or any other comparable governmental entity.

                                       10
<PAGE>

                           (ii) Except as is provided in the Markland Reports,
each of the consolidated financial statements (including, in each case, any
notes thereto) contained in the Markland Reports was prepared in accordance with
generally accepted accounting principles ("GAAP") applied on a consistent basis
throughout the periods indicated (except as may be indicated in the notes
thereto) and each presented fairly, in all material respects, the consolidated
financial position of Markland and the consolidated subsidiaries of Markland as
at the respective dates thereof and for the respective periods indicated
therein, except as otherwise noted therein (subject, in the case of unaudited
statements, to normal recurring immaterial year-end adjustments and the absence
of notes).

                           (iii) Except as and to the extent set forth or
reserved against on the consolidated balance sheet of Markland and the
subsidiaries of Markland as reported in the Markland Reports, including the
notes thereto, none of Markland or any subsidiary of Markland has any
liabilities or obligations of any nature (whether accrued, absolute, contingent
or otherwise) that would be required to be reflected on a balance sheet or in
notes thereto prepared in accordance with GAAP, except for liabilities or
obligations incurred in the ordinary course of business consistent with past
practice since the date of the most recent Markland Report that have not had and
could not reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the condition (financial or otherwise), properties,
assets (including intangible assets), liabilities, business, operations or
results of operations of Markland

9. Indemnification.

         a) ASI Indemnification. ASI shall indemnify, defend, and hold harmless
Markland against and in respect of any and all claims, demands, losses, costs,
expenses, obligations, liabilities, damages, recoveries, and deficiencies,
including interest, penalties, and reasonable attorneys' fees, that Markland
shall incur or suffer, that arise, result from, or relate to any breach of, or
failure by ASI to perform, any of its representations, warranties, covenants, or
agreements in this Agreement or in any schedule, certificate, exhibit, or other
instrument furnished or to be furnished by ASI under this Agreement.
Notwithstanding the foregoing, the indemnification obligations of ASI with
respect to matters described in clause (i) above shall be limited in dollar
amount to the amount of the Technology Purchase Price and any additional amounts
paid in cash by Markland to ASI pursuant to this Agreement.

         b) Markland Indemnification. Markland shall indemnify, defend, and hold
harmless ASI against and in respect of any and all claims, demands, losses,
costs, expenses, obligations, liabilities, damages, recoveries, and
deficiencies, including interest, penalties, and reasonable attorneys' fees,
that ASI shall incur or suffer, that arise, result from, or relate to any (i)
claim that any modifications, improvements or other changes to the Technology or
the Proprietary Rights made by Markland after Closing or any other technologies
or inventions originating with Markland after the Closing infringes or
misappropriates the intellectual property rights of any third party or (ii) any
breach of, or failure by Markland to perform, any of its representations,
warranties, covenants, or agreements in this Agreement or in any schedule,
certificate, exhibit, or other instrument furnished or to be furnished by
Markland under this Agreement.

                                       11
<PAGE>

         c) A party entitled to indemnification hereunder (an "Indemnified
Party") shall promptly notify the other party hereto (the "Indemnifying Party")
of the existence of any claim, demand, or other matter to which the Indemnifying
Party's indemnification obligations would apply, and shall give it a reasonable
opportunity to defend the same at its own expense and with counsel of its own
selection; provided that the Indemnified Party shall at all times also have the
right to fully participate in the defense at its own expense. If the
Indemnifying Party shall, within a reasonable time after this notice, fail to
defend, the Indemnified Party shall have the right, but not the obligation, to
undertake the defense of, and to compromise or settle (exercising reasonable
business judgment), the claim or other matter on behalf, for the account, and at
the risk, of the Indemnifying Party. If the claim is one that cannot by its
nature be defended solely by the Indemnifying Party (including, without
limitation, any federal or state tax proceeding), then the Indemnified Party
shall make available all information and assistance that the Indemnifying Party
may reasonably request.

10. Miscellaneous Terms.

         a) Each party shall execute and deliver, from time to time at or after
the date of the Closing upon the request of the other party, such further
conveyance instruments, and take such further actions, as may be necessary or
desirable to evidence more fully the conveyance of interest in and to all the
Technology and Proprietary Rights and the assignment of the Contracts to
Markland, on the part of the Markland, to the fullest extent reasonably
possible. Each party therefore agrees to:

                  (1) Execute, acknowledge, and deliver any affidavits or
documents of assignment and conveyance regarding the Technology or the
Proprietary Rights;

                  (2) Provide testimony in connection with any proceeding
affecting the right, title, interest, or benefit of the Markland and to the
Technology or the Proprietary Rights; and

                  (3) Perform any other acts reasonably necessary to carry out
the intent of this Agreement.

         b) In furtherance of, but subject to the terms and conditions of, this
Agreement, ASI hereby acknowledges that, from and after the Closing, Markland
will have acquired all of ASI's right, title, and standing to:

                  (1) Receive all rights and benefits pertaining to the
Technology and the Proprietary Rights as the sole owner thereof;

                  (2) Institute and prosecute all suits and proceedings and take
all actions that Markland, in its sole discretion, may deem necessary or proper
to collect, assert, or enforce any claim, right or title of any kind in and to
any and all of the Technology and Proprietary Rights;

                  (3) Defend and compromise any and all such actions, suits, or
proceedings relating to such transferred and assigned rights, title, interest,
and benefits, and do all other such acts and things in relation thereto as the
Markland, in its sole discretion, deems advisable; and

                  (4) To sell, assign, transfer, modify, further develop and
license such rights and receive royalties and other payment for such rights.

                                       12
<PAGE>

         c) The parties agree that ASI shall pay all costs and fees (legal and
otherwise) necessary to maintain or prosecute the patents identified in Exhibit
A through the date of the Closing. After the Closing, the parties agree that
Markland shall pay all such costs and fees thereafter.

         d) ASI agrees that Markland may retain the services of the law firm of
Thorpe, North &Western, including specifically Vaughn North, to act as
Markland's patent counsel subsequent to the Closing of this Agreement and as
such ASI hereby waives any potential conflict of interest that may exist now or
in the future.

         e) Markland intends to employ Dr. Ted Anderson upon the Closing and to
retain Dr. Igor Alexeff as a part-time consultant.

         f) ASI and Markland agree that each party shall be responsible for
their own legal and other fees and costs relating to the preparation of this
Agreement. Each party represents and warrants it has been represented by legal
counsel and that there is no finder or broker involved in this transaction.

         g) This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof, and shall supersede all previous
communications, representations, understandings and agreements, whether oral or
written. This Agreement may not be changed or modified except by a written
agreement signed by both parties. This Agreement shall be governed by and
construed in accordance with the laws of the State of Nevada (excluding
conflicts of law principles). Any action or suit related to this Agreement shall
be brought exclusively in the state or federal courts in Nevada. In case any one
or more of the provisions contained in this Agreement or any application thereof
shall be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and
other applications thereof shall not in any way be affected or impaired thereby,
and such invalidity shall be construed and limited as narrowly as practicable.

         h) All representations, warranties, covenants and agreements of ASI and
Markland in this Agreement shall survive the execution, delivery and performance
of this Agreement and the Closing for a period of one (1) year following the
Closing. All representations and warranties of each party set forth in this
Agreement shall be deemed to have been made again by such party at and as of the
Closing Date.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.

Markland Technologies, Inc.                        ASI Technology Corporation

 By:    /s/  D.R. KINTNER                           By:    /s/ JERRY E. POLIS
   ----------------------                            -----------------------

Name:  D.R. KINTNER                                Name:  JERRY E. POLIS
     ----------------                                   ------------------

Title: CEO                                         Title: PRESIDENT
      ------                                             -----------

                                       13
<PAGE>

                                EXHIBIT A - PATENTS
                                    (Omitted)

                                    EXHIBIT B
              CONFIDENTIAL AND PROPRIETARY INFORMATION TRANSFERRED
                                    (Omitted)

                                    EXHIBIT C
                              EQUIPMENT TRANSFERRED
                                    (Omitted)

                                    EXHIBIT D
                      TRADEMARKS AND TRADENAMES TRANSFERRED
                                    (Omitted)

                                    EXHIBIT E
                              GOVERNMENT CONTRACTS
                                    (Omitted)

                                    EXHIBIT F
                              SUBLICENSE AGREEMENT
                                    (Omitted)

                                    EXHIBIT G
                          REGISTRATION RIGHTS AGREEMENT
                                    (Omitted)

                                       14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}]]