Document:

EX-10.1

PATENT AND TECHNOLOGY LICENSE AGREEMENT

This PATENT AND TECHNOLOGY LICENSE AGREEMENT (“Agreement”), dated as of May 27, 2005
(“Effective Date”) is entered into by and between face2face animation, inc., a Delaware corporation
(“Licensor”), having a place of business at 2 Kent Place Blvd., Summit, NJ 07901 and InMotion
Biometrics, Inc., a Delaware corporation (“Licensee”), a wholly owned subsidiary of BudgetHotels
Network Inc., a Nevada corporation (which shall be renamed Edentify, Inc.) (“Parent”), having a
place of business at 74 West Broad Street, Suite 350, Bethlehem, PA 18018.

WHEREAS, Licensor owns certain Technology and Patents (as defined below), including hardware
and software, relating to identification of people and facial recognition, and desires to grant to
Licensee a license to the Technology and Patents;

WHEREAS, Licensee desires to obtain a license from Licensor to the Technology and Patents.

NOW, THEREFORE, in consideration of the foregoing and the respective promises and covenants
contained in this Agreement, Licensor and Licensee hereby agree as follows:

1. Definitions.

The following terms shall have the meanings set forth below:

1.1 Affiliate. “Affiliate” shall have the meaning ascribed to such term under Rule
405 of the Securities Act of 1933.

1.2 Derivative Works. “Derivative Works” means a work that is based upon one or more
pre-existing works relating to the Technology, such as a revision, modification, translation,
abridgment, condensation, expansion or any other form in which such pre-existing works may be
recast, transformed, or adapted and that, if prepared, without authorization of the owner of the
rights in such pre-existing work, would constitute infringement. For purposes hereof, a Derivative
Work shall also include any compilation that incorporates such a pre-existing work or condensation
or expansion of the Technology, Licensed Software Products or Licensed Services or any form in
which such Technology may be recast, transformed, or adapted by or for Licensee.

1.3 Development Agreement. “Development Agreement” means the development agreement
between Licensor and Licensee of even date herewith.

1.4 Gross Revenues. “Gross Revenues” means any amounts received by Licensee, directly
or indirectly, in consideration for the provision of, sale, license, lease, rental or use of the
Licensed Hardware Products, Licensed Software Products and/or Licensed Services, as the case may
be.

1.5 Improvements. “Improvements” means all inventions protectable by patent that are
improvements or modifications to the Technology and that are created or developed either
independently or jointly by Licensor and/or Licensee after expiration or termination of the
Development Agreement.

1.6 Licensed Hardware Products. “Licensed Hardware Products” means all products made,
have made, used, offered for sale or sold by Licensee incorporating or developed using the Licensed
Technology for Security Applications.

1.7 Licensed Services. “Licensed Services” means all services provided by Licensee
incorporating or developed using the Licensed Technology for Security Applications.

1.8 Licensed Software Products. “Licensed Software Products” means all products made,
have made, used, offered for sale or sold by Licensee incorporating or developed using the Licensed
Technology for Security Applications.

1.9 Licensed Technology. “Licensed Technology” means all Licensor Technology,
Licensor Patents, Licensor Derivative Works, and Licensor Improvements.

1.10 Patents. “Patents” means all U.S. patents and patent applications relating to
the Technology, including all continuations, continuations-in-part (only if filed in the USPTO
during the term of this Agreement), divisionals, reissues, reexamination certificates, extensions
and renewals, and including all foreign counterparts thereto, owned by or licensed to Licensor
and/or Licensee or Parent, that relate to verifying identification of people and facial
recognition, including all patents and patent applications identified in Exhibit A.

1.11 Person. “Person” means an individual, a corporation, a partnership, an
association, a limited liability company, a trust, any unincorporated organization or a government
or a political subdivision thereof.

1.12 Security Applications. “Security Applications” means any and all uses relating
to (i) securing and/or providing restricted access to information, systems, technology, locations
or things, and (ii) confirming or verifying identification or authorization, and identifying
individuals or authorized users, each as more completely detailed in Appendix “A” to the Edentify
Business Plan, which is attached hereto as Exhibit “B”.

1.13 Share Issuance Agreement. “Share Issuance Agreement” means an agreement between
the parties, as annexed hereto as Exhibit C.

1.14 Technology. “Technology” means the technology, processes, ideas, concepts,
inventions, invention disclosures, laboratory notebooks, know-how, discoveries, trade secrets,
improvements, design information, drawings, plans, technical data, shop rights, engineering
documentation, engineering notebooks, specifications, blueprints, mask works, flow charts,
diagrams, software (in object and source code), models, prototypes and other intellectual property
developed (i) by Licensor either prior to, during or after the term of the Development Agreement,
(ii) by Licensee or Parent during the term of the Development Agreement or (iii) jointly by
Licensor and Licensee or Parent during the term of the Development Agreement, pertaining to any and
all Security Applications.

2. License.

2.1 Licensed Technology Grant. Licensor grants Licensee a worldwide, non-divisible,
perpetual (subject to Section 5.1, 5.2, 5.3 and 9), irrevocable (subject to Sections 5.1, 5.2, 5.3
and 9), exclusive license to use the Licensed Technology as herein provided to make, have made,
use, offer to sell, sell and import Licensed Hardware Products and Licensed Software Products, and
provide Licensed Services, only for Security Applications, except as limited herein. Licensor also
grants Licensee the limited right to grant sub-licenses as set forth in Section 2.2 below.

2.2 Sublicenses. Upon the prior written request by Licensee, Licensor shall have the
option, at its sole and absolute discretion, to allow Licensee to grant one or more sub-licenses
under the Licensed Technology commensurate in scope with the license granted hereunder, which shall
not be unreasonably withheld. Notice of the disallowance of any sub-licenses that Licensee has
requested pursuant to this Section 2.2 shall be provided to Licensee in writing no later three (3)
business days after receipt of such request by Licensor. If Licensor does not respond to
Licensee’s request within such period, the sub-license shall be deemed to be consented to by
Licensor, provided, however, that the terms of any sub-license shall be no less restrictive
on any sub-licensee than the terms of this Agreement are on Licensee. All sublicenses shall
transfer to Licensor upon termination of this Agreement.

2.3 Consideration. As consideration for Licensor granting Licensee the rights
provided for in this Agreement, Licensee shall, subject to the other provisions of this Agreement
pay Licensor the royalty amounts as set forth in Section 3.1.

2.4 Restrictions on Joint Technology.

a. Licensee agrees that it shall not use or license the right to use the Joint Technology, nor
shall it or shall it allow a third party to make, have made, use, offer to sell, sell, have sold or
import any products or services using the Joint Technology for other than Security Applications.
All revenues derived by Licensee from the use or license of the Joint Technology as provided for
hereunder shall belong to Licensee.

b. Licensor agrees that it shall not use or license the right to use the Joint Technology, nor
shall it or shall it allow a third party to make, have made, use, offer to sell, sell, have sold or
import any products or services using the Joint Technology for Security Applications. All revenues
derived by Licensor from the use or license of the Joint Technology as provided for hereunder shall
belong to Licensor.

3. Payments.

3.1 Pass Through Royalties and Fees. All royalties and fees assessed against, accrued
or payable by Licensor to a third party relating to the Licensed Software Products, the Licensed
Hardware Products and the Licensed Services shall be paid to Licensor by Licensee, at least five
(5) business days before any such royalties or fees are payable by Licensor to such third party.
All royalty and fee amounts shall be paid by check or in cash in U.S. dollars. Each payment shall
be accompanied by a report identifying all sales, in dollars and in number of units, that form the
basis for such royalty calculations or fees payable, and amounts paid.

4. Taxes.

Licensor is not responsible for any sales, use, value-added, personal property or other taxes
imposed on either Licensee’s use, possession, offer for sale, or sale of Licensed Products. Each
party shall be solely responsible for any taxes based on its own net income.

5. Term and Termination.

5.1 Licensor may terminate this Agreement after written notice to Licensee indicating that
Licensee has materially breached any of the terms or conditions of this Agreement, and such breach
is not cured within thirty (30) days after receipt of such notice.

5.2 Should Parent fail to issue to Licensor the full amount of shares and warrants or deliver
the proper amounts of shares and warrants as required by paragraph 1(a) of the Share Issuance
Agreement, upon thirty (30) days’ written notice Licensor shall have the right to terminate this
Agreement unless such breach is cured by Parent during such thirty (30) day period,
provided, that should Licensee dispute whether there has been a material breach of this
Agreement by Licensee, such dispute shall be decided by arbitration under the rules of the American
Arbitration Association (“AAA”) with a single arbitrator, to be agreed upon by the parties, or if
not selected within thirty (30) days, to be selected according to the AAA rules, with the parties
endeavoring to conclude such arbitration within six (6) months from initiation of the arbitration.
All arbitration fees, costs and expenses shall be paid by the losing party to any such arbitration.

5.3 Licensee may terminate this Agreement at any time upon sixty (60) days prior written
notice to Licensor, provided however that if such termination by Licensee results from a material
breach of this Agreement by Licensor, or a change of control of Licensor that is not consented to
in writing by Licensee resulting in Licensor becoming controlled by a direct competitor of
Licensee, and Licensee is not in material breach of this Agreement or the Share Issuance Agreement,
upon thirty (30) days’ written notice by Licensee and a failure during such thirty (30) day period
for Licensor to cure, Licensor will forfeit all stock issued to Licensor pursuant to the Stock
Issuance Agreement and in the event that Licensor has transferred the common stock issued pursuant
to such Stock Issuance Agreement to a third party prior to the time of such breach or change of
control, as the case may be, Licensor shall pay Licensee, as full liquidated damages, the sum of
$100,000, provided, that should Licensor dispute whether there has been a material breach
of this Agreement by Licensor, such dispute shall be decided by arbitration under the rules of the
American Arbitration Association (“AAA”) with a single arbitrator, to be agreed upon by the
parties, or if not selected within thirty (30) days, to be selected according to the AAA rules,
with the parties endeavoring to conclude such arbitration within six (6) months from initiation of
the arbitration. All arbitration fees, costs and expenses shall be paid by the losing party to any
such arbitration. Notwithstanding the above, upon a change of control of Licensor that is not
consented to by Licensee resulting in Licensor becoming controlled by a direct competitor of
Licensee, Licensee shall have thirty (30) days from obtaining knowledge of such change of control
to provide Licensor with notice of termination of this Agreement, provided that should
Licensee fail to provide Licensor with notice of termination during such thirty (30) day period,
Licensee shall forfeit its right to terminate the Agreement as a result of such change of control.

5.4 Upon termination of this Agreement, Licensee shall immediately cease all manufacture, use,
sale and providing of Licensed Hardware Products, Licensed Software Products and Licensed Services
and, to the extent reasonably practicable, each party shall promptly return and deliver to the
other party all Licensed Technology and Confidential Information belonging to such party that is in
its possession, and shall certify in writing that it has not knowingly retained any copies of such.

6. Ownership of Rights.

6.1 Ownership of Licensed Technology. Licensee acknowledges and agrees that title to
and ownership of the Licensed Technology and all of the applicable intellectual property rights in
and to the Licensed Technology shall be as follows:

a. All Technology developed solely by Licensor (“Licensor Technology”) and Improvements
developed by Licensor (“Licensor Improvements”) shall be owned by and remain the sole and exclusive
property of Licensor. Licensee acknowledges that this Agreement does not convey any interest in
and to the Licensor Technology or Licensor Improvements or the intellectual property rights therein
other than the license rights set forth in Sections 2.1, 2.2 and 2.3 herein.

b. All Technology developed solely by Licensee (“Licensee Technology”) and Improvements
developed by Licensee (“Licensee Improvements”) shall be owned by and remain the sole and exclusive
property of Licensee. Licensor acknowledges that this Agreement does not convey any interest in
and to the Licensee Technology or Licensee Improvements or the intellectual property rights therein
other than the license rights set forth in Section 2.4.

c. All Technology and Improvements developed jointly by the Parties (“Joint Technology”) shall
be jointly owned by and remain the jointly owned property of the Parties in equal share. Any and
all Derivative Works, Licensor Improvements and Licensee Improvements shall be subject to one or
more separate development agreements and/or licenses to be negotiated by the Parties in good faith.

d. All Derivative Works developed by Licensor and/or Licensee, either independently or jointly
(“Licensor Derivative Works”) shall be owned by and remain the sole and exclusive property of
Licensor. All Licensor Derivative Works and Licensor Improvements shall be subject to the license
granted to Licensee pursuant to Sections 2.1 and 2.2. Licensee acknowledges that this Agreement
does not convey any interest in and to the Licensor Technology or the intellectual property rights
therein other than the license rights set forth in Section 2.

e. Licensor agrees to provide Licensee with reasonable notice of its licensing of the Licensed
Technology to third parties.

7. Limitations, Warranties, Indemnity, Disclaimer.

7.1 Limitations. Nothing contained in this Agreement shall be construed as creating
any form of license or rights under any patents, copyrights, mask works, trademarks, service marks,
trade names, service names, trade dress, trade secrets, know-how, or confidential information owned
or controlled by Licensor, other than as specifically indicated herein. The Parties acknowledge
that the Licensed Technology is in the process of development pursuant to the Development Agreement
and has not yet been developed by Licensor or Licensee, and Licensor shall provide such
representations and warranties with respect to the Licensed Technology as set forth in the
Development Agreement.

7.2 Indemnities

a. By Licensor. Licensor shall indemnify, defend and hold harmless Licensee against
any claim, demand or cause of action (a) resulting from a breach of any provision of this Agreement
by Licensor, or (b) relating to infringement based on the use by Licensee of the Product (as
defined in the Development Agreement) in conformance with the specifications or the requirements of
this Agreement; provided that indemnification by Licensor under (b) shall not apply to any
allegation or determination of infringement to the extent that such infringement is based on (i)
the use of application code or modifications developed by Licensee or a third party, if such
infringement would have been avoided in the absence of such use, (ii) the use of any other software
or hardware that is used in conjunction with the Product, if such infringement would have been
avoided in the absence of such combination or use, (iii) the unauthorized use of the Product, or
(iv) use of the Product not in conformance with the specifications or the requirements of this
Agreement; and provided, further, that this indemnification shall be contingent
upon Licensee immediately notifying Licensor upon learning of any such claim, demand or cause of
action, and providing Licensor with such assistance as reasonably requested by Licensor in
defending against such claim, demand or cause of action.

b. By Licensee. Licensee shall indemnify, defend and hold harmless Licensor against
any claims, demands or causes of action (a) alleging infringement of any third party intellectual
property rights based on (i) the use of application code or modifications developed by Licensee or
a third party, (ii) the use of any other software or hardware that is used in conjunction with the
Product, (iii) the unauthorized use of the Product, or (iv) use of the Product not in conformance
with the specifications or the requirements of this Agreement, (b) based on the unauthorized use of
the Product by Licensee, or (c) based on or resulting from a breach of any provision of this
Agreement by Licensee.

7.3 Disclaimer. EXCEPT AS OTHERWISE PROVIDED HEREIN OR IN THE DEVELOPMENT AGREEMENT,
LICENSOR HEREBY SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF ANY SORT, INCLUDING WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE TECHNOLOGY, IMPROVEMENTS,
LICENSED HARDWARE PRODUCTS, LICENSED SOFTWARE PRODUCTS AND LICENSED SERVICES.

7.4 Mitigation. In the event that any claim, demand or cause of action (“Claim”) is
asserted against Licensee alleging infringement of any third party intellectual property rights
resulting from the use by Licensee of the Product, the Company shall use commercially reasonable
efforts to seek to resolve such Claim by one or more of the following: (a) modifying the Product
such that it no longer infringes or (b) obtaining a license to the asserted intellectual property
(the payments under which shall be borne by Licensee). Should it be commercially unreasonable for
Licensor to undertake either (a) or (b), or if the payments under (b) are unduly burdensome for
Licensee, then Licensee may either (x) terminate this Agreement, (y) request that Licensor remove
the infringing subject matter (at Licensee’s expense) or (z) continue using the Product,
provided, that Licensee shall bear all costs and expenses and responsibility for defending
against and payment of any and all damages relating to Licensee’s use of the Product and any
lawsuits, proceedings and/or settlements relating to any such Claims.

8. Marking. Licensee shall permanently mark with the numbers of any patents relating to
the Licensed Technology owned by Licensor (“Patents”) all of the Licensed Hardware Products and
Licensed Software Products in accordance with 35 U.S.C. § 287 and in substantially the following
form: “This product is covered by one or more of the following United States Patents:
     [list numbers.]” In addition to marking the Licensed Hardware
Products and Licensed Software Products in the manner described above, licensee must also mark, in
substantially the same manner as described above, the box or packaging that contains the Licensed
Hardware Products or Licensed Software Products. Licensee may advertise that reference the fact
that the Licensed Hardware Products and Licensed Software Products are licensed under the Patents
and that the Patents are owned by Licensor but, except as expressly provided herein, shall not
otherwise use the name or any trademark or service mark of Licensor to market, advertise, or
promote the Licensed Hardware Products, Licensed Software Products or Licensed Services or any
other products or services without Licensor’s express written consent.

9. Non Assignment.

(a) Licensee may not assign this Agreement or any of the rights or privileges under this
Agreement without the prior written consent of Licensor which consent shall not be unreasonably
withheld. For purposes of this Agreement, Licensee shall be deemed to have assigned this Agreement
in derogation of this provision if Licensee permits or fails to prevent any other person or entity
to take the place of Licensee hereunder by merger, consolidations, stock transfer, other
reorganization or as a result of bankruptcy. Notwithstanding the above, Licensee may assign this
Agreement to Parent or an entity that is an Affiliate of Licensee. The validity of any approved or
allowable assignment of this Agreement or any of the rights or privileges under this Agreement
shall be subject to the assignee agreeing in advance in writing to be bound by the terms of this
Agreement. Any attempted assignment in derogation of the foregoing shall be void. Should Parent
transfer any of its ownership interest in Licensee to any third party without the prior written
consent of Licensor (other than as expressly permitted hereunder), this Agreement and the Licenses
hereunder shall terminate.

(b) Licensor may not assign this Agreement or any of the rights or privileges under this
Agreement without the prior written consent of Licensee which consent shall not be unreasonably
withheld. For purposes of this Agreement, Licensor shall be deemed to have assigned this Agreement
in derogation of this provision if Licensor permits or fails to prevent any other person or entity
to take the place of Licensor hereunder by merger, consolidations, stock transfer, other
reorganization or as a result of bankruptcy. Notwithstanding the above, Licensor may assign this
Agreement to an entity that is an Affiliate of Licensor. The validity of any approved or allowable
assignment of this Agreement or any of the rights or privileges under this Agreement shall be
subject to the assignee agreeing in advance in writing to be bound by the terms of this Agreement.
Any attempted assignment in derogation of the foregoing shall be void. Should a majority of the
ownership interest in Licensor be transferred to any third party that is not currently a
shareholder of Licensor without the prior written consent of Licensee (other than as expressly
permitted hereunder), this Agreement and the Licenses hereunder shall terminate.

10. Infringement by Third Parties. Licensor shall have the sole and exclusive right to
bring suit and initiate proceedings relating to any infringement of the Patents or misappropriation
of the Technology or Improvements and to settle the same. All costs and expenses relating to any
such suit or suits or proceeding shall be paid for by Licensor, and any and all recoveries, awards,
or payments from said suits or any settlements thereof shall be the property of Licensor. Licensee
shall reasonably cooperate with and assist Licensor in all such suits as Licensor deems reasonably
appropriate or necessary and all costs and expenses thereof shall be borne by Licensor. If
Licensee becomes aware of any infringement of the Patents or misappropriation of the Technology or
Improvements by any third-party, Licensee shall promptly notify Licensor of such and provide
Licensor with any and all evidence thereof in its possession or control.

11. Third Party Technology. The parties acknowledge that certain software, equipment or
technology of third parties, including without limitations, facial recognition and acoustic speech
software and hardware, may be required to operate or provide support for the Licensed Hardware
Products, Licensed Software Products or Licensed Services or practice the Licensed Technology,
including those listed in Exhibit C (as amended by the Parties from time to time). Licensor shall
cooperate with Licensee to identify any such third party technology that will be available to
Licensee, but Licensor shall not be obligated to pay for the purchase or licensing of any such
third party technology or any third party intellectual property rights relating to such technology.

12. Prosecution.

12.1 By Licensor. Licensor shall retain the right but not the obligation to prosecute
and/or maintain all of the Patents relating to the Licensor Technology and Joint Technology and any
other intellectual property rights relating thereto. Licensee shall cooperate with Licensor in any
prosecution of pending applications concerning any Licensor Technology and Joint Technology by
providing upon request technical information and data in an appropriate form relating to the
subject matter of any pending applications or issued patents. Licensor shall be responsible for
all costs and expenses with respect to the Licensor Technology. Licensor and Licensee shall share
equally all costs and expenses with respect to the Joint Technology.

12.2 By Licensee. Licensee shall retain the right but not the obligation to prosecute
and/or maintain all of the Patents relating to the Licensee Technology or any other intellectual
property rights relating thereto. Licensee shall be responsible for all costs and expenses with
respect to the Licensee Technology.

12.3 Failure to Prosecute. Should a Party fail to or choose not to prosecute or
maintain any patents relating to the Licensor Technology or pay for the prosecution of any patents
relating to the Joint Technology, the other Party shall have the right to prosecute and/or maintain
such patents subject to such other Party paying for and undertaking such obligation to prosecute
and maintain any such patents. Should the other Party undertake the obligation to prosecute and
maintain and pay for any such patents, the non-prosecuting Party shall relinquish its right, if
any, to prosecute the patent, and the non-prosecuting Party shall assign and shall be deemed to
have assigned all of its rights in same to the prosecuting Party. Upon assignment of any such
patent, the assigning Party shall be granted by the other Party a license to such patent that is
commensurate in scope to the rights enjoyed by the assigning Party in such patent pursuant to this
Agreement prior to the assignment.

13. Information and Confidentiality.

13.1 Exchange of Information. During the term of this Agreement, Licensor and
Licensee shall keep each other informed on all Improvements conceived or developed by any of them
to the Technology.

13.2 Confidentiality. Licensor and Licensee acknowledge that the Licensed Technology
licensed pursuant to this Agreement relates or will relate to information that is not or will not
be publicly available (“Confidential Information”). The Confidential Information provided
hereunder is valuable, proprietary, and unique, and each Party agrees to maintain the
confidentiality of the Confidential Information and to be bound by and observe the proprietary
nature thereof as provided herein. Each Party agrees to take diligent action to fulfill its
obligations hereunder by instruction or agreement with its employees or agents (whose
confidentiality obligations shall survive termination of employment or agency) who are permitted
access to the Confidential Information. Access shall only be given on a need-to-know basis, except
as otherwise set forth herein or as may be permitted in writing by the disclosing Party. Without
limiting the generality of the foregoing, for the avoidance of doubt each Party agrees that those
staff or other representatives of the other Party who require access to the Confidential
Information for support shall not require a license. Neither Party shall use, provide or otherwise
make available the Confidential Information or any part or copies thereof to any third party,
except its employees, consultants and agents, other than as agreed to in writing in advance by the
disclosing Party. Prior to any such disclosure, each party to whom Confidential Information is to
be disclosed shall agree to terms and conditions concerning exchange of information and
confidentially as laid down in this Section 13.2. The terms and conditions of this Agreement are
also confidential to the parties. Neither party shall disclose any such terms and conditions
during the term of the Agreement and thereafter without prior written approval by the other party,
except as required by law.

13.3 Reverse Engineering. Licensee shall not reverse engineer, decompile or
disassemble the Licensed Technology or any portion thereof, nor otherwise attempt to create or
derive the Licensed Technology except as permitted by law. Licensee acknowledges and agrees that
that unauthorized reproduction, use, or disclosure of the Licensed Technology or any part thereof
is likely to cause irreparable injury to Licensor, who shall therefore be entitled to injunctive
relief to enforce these license restrictions, in addition to any other remedies available at law,
in equity, or under this Agreement, and without the need to post bail even if ordinarily required.

13.4 Confidentiality Exceptions. Notwithstanding the provisions of this Section 13,
the confidentiality obligations hereunder shall not apply to (i) information that is known to the
public or is generally known within the industry or business, (ii) information that was required to
be disclosed pursuant to law or order of a court having jurisdiction (provided that the party
required so to disclose such Confidential Information shall offer the party owning such
Confidential Information the opportunity to obtain an appropriate protective order or
administrative relief against disclosure of such Confidential Information) but only to the extent
of any such required disclosure, and (iii) information that was legally acquired by Licensor or
Licensee, as the case may be, from a third-party in good faith, provided that such disclosure by
the third-party was not in breach of any agreement between such third-party and Licensor or
Licensee, as the case may be.

14. Survival. The terms of Sections 2.4, 5.3, 6.1(a)-(d), 7.3, 13.2, 13.3, 13.4, 14, 15
and 16 shall survive the termination or expiration of this Agreement.

15. General Provisions.

15.1 Choice of Law. This Agreement will be governed by, and construed and interpreted
according to, the substantive laws of the State of Delaware, without regard to its choice of law
provisions.

15.2 Choice of Forum. Any claim or action brought by Licensor arising in any way out
of this Agreement, other than a dispute under Section 3.3, must be brought in the United States
District Court, Eastern District of Pennsylvania or, if subject matter jurisdiction cannot be
obtained in that court, in any court of competent jurisdiction sitting in Pennsylvania. Any claim
or action brought by Licensee arising in any way out of this Agreement must be brought in the
United States District Court, District of New Jersey or, if subject matter jurisdiction cannot be
obtained in that court, in any court of competent jurisdiction sitting in New Jersey. Licensor and
Licensee hereby submit to the jurisdiction and venue of said courts for these purposes.

15.3 Entire Agreement. The Agreement is the final and entire agreement between the
parties relating to the subject matter and supersedes any and all prior or contemporaneous
discussions, statements, representations, warranties, correspondence, conditions, negotiations,
understandings, promises and agreements, oral and written, with respect to such subject matter.

15.4 No Reliance. The parties each acknowledge that, in entering into this
Agreement, they have not relied upon any statements, representations, warranties, correspondence,
negotiations, conditions, understandings, promises and agreements, oral or written, not
specifically set forth in this Agreement. All of the parties represent that they are represented
by legal counsel and have been fully advised as to the meaning and consequence of all of the terms
and provisions of this Agreement.

15.5 Waiver; Modifications. No provision of this Agreement shall be waived unless
set forth in writing and signed by the party effecting such waiver. No waiver of the breach of any
of the terms or provisions of this Agreement shall be a waiver of any preceding or succeeding
breach of this Agreement or any other provisions thereof. No waiver of any default, express or
implied, made by any party hereto shall be binding upon the party making such waiver in the event
of a subsequent default. This Agreement may only be modified or amended by a written agreement
executed by each of the parties.

15.6 Notices. Any notices permitted or required under the provisions of this
Agreement shall be in writing and shall be personally delivered, mailed by certified mail, postage
prepaid or by facsimile transmission (with proof of transmission) or shall be sent by overnight
courier service to the address of the relevant party as first set forth above. Licensor or
Licensee may direct notices to be sent to such other address or Person as any party may have
specified in a notice duly given to the other party as provided herein. Such notice, request,
demand, waiver, consent, approval or other communication will be deemed to have been given as of
the date so delivered.

15.7 Severability. In the event that any one or more of the provisions contained in
this Agreement shall, for any reason, be held to be invalid, void, illegal, or unenforceable in any
respect, such invalidity, voidness, illegality or unenforceability shall not affect any other
provision of this Agreement, and the remaining portions shall remain in full force.

15.8 Cooperation. Each of the parties hereto shall execute and deliver any and all
additional papers, documents, and other assurances, and shall do any and all acts and things
reasonably necessary in connection with the performance of their obligations hereunder and to carry
out the intent of the parties hereto.

15.9 Titles. Some Sections of this Agreement have titles and some do not. The fact
that some Section hereof do not have titles shall have no significance. The titles are included
for ease of reference only, and shall not be used to construe the meaning of this Agreement.

15.10 Authority. All parties and authorized representatives signing this Agreement
represent and warrant that they have authority to execute and enter into this Agreement.

15.11 Counterparts. This Agreement may be executed in multiple counterparts.

IN WITNESS WHEREOF, the parties have executed this Patent and Technology License Agreement
through their duly authorized representatives on the date set forth above.

FACE2FACE ANIMATION, INC.

By: /s/ George D. Caravias

Name: George D. Caravias

Title: Chief Executive Officer

INMOTION BIOMETRICS, INC.

By: /s/ Terrence DeFranco

Name: Terrence DeFranco

Title: Chief Executive OfficerEX-10.2

DEVELOPMENT AGREEMENT

This Services Agreement (the “Agreement”) is made as of May 27, 2005 (the “Effective Date”) by
and between FACE2FACE ANIMATION, INC., a Delaware corporation (the “Company”) having its principal
place of business at 2 Kent Place Blvd., Summit, NJ 07901, and InMotion Biometrics, Inc., a
Delaware corporation (the “Sponsor”) having its principal place of business at 74 West Broad
Street, Suite 350, Bethlehem, PA 18018.

In consideration of the mutual promises and covenants contained in this Agreement, the parties
agree as follows:

1. DEFINITIONS.

Capitalized terms used in this Agreement have the meanings given to them in this Section 1
(the “Definitions”) or as otherwise specified in this agreement.

1.1. “AAA” shall have the meaning set forth in Section 15.5.

1.2. “Amendment” shall have the meaning as set forth in Section 3.1.

1.3. “Change Order Request” shall have the meaning set forth in Section 3.1.

1.4. “Company Marks” shall have the meaning set forth in Section 14.1.

1.5. “Confidential Information” shall have the meaning set forth in Section 7.1.

1.6. “Deliverable” shall have the meaning set forth in Section 2.1.4.

1.7. “Delivering Party” shall have the meaning set forth in Section 13.1.

1.8. “Disclosing Party” shall have the meaning set forth in Section 7.2.

1.9. “Dispute Notice” shall have the meaning set forth in Section 13.1.

1.10. “Effective Date” shall have the meaning set forth in the preamble.

1.11. “License Agreement” shall mean the Patent and Technology License Agreement entered into by
the parties on May 27, 2005.

1.12. “Live Environment” shall mean the use of the Product in a customer environment under normal
operating conditions, consistent with the Product specifications.

1.13. “Non-Arbitrable Claims” shall have the meaning set forth in Section 15.5.

1.14. “Notified Party” shall have the meaning set forth in Section 13.1.

1.15. “Project Manager” shall have the meaning set forth in Section 2.2.

1.16. “Receiving Party” shall have the meaning set forth in Section 7.2.

1.17. “Residuals” shall have the meaning set forth in Section 7.5.

1.18. “Response Notice” shall have the meaning set forth in Section 13.2.

1.19. “Services” shall have the meaning set forth in Section 2.1.

1.20. “Share Issuance Agreement” means the agreement between the Company and Budget Hotels Network
Inc. (which shall be renamed Edentify, Inc., the parent of Sponsor) (“Parent”) dated May 27, 2005
in which the Company is granted shares of the stock in Parent.

2. SERVICES.

2.1. Development Services. The Company shall provide the following development services
for Sponsor (collectively, the “Services”). Further details regarding the specific tasks and
timelines relating to the Services are set forth in Exhibit A (attached hereto):

2.1.1. Hardware Development. Design and development of a field programmable gate array
device, which is to be utilized in conjunction with and integrated with the F2F Software and 3P
Software (“Hardware”).

2.1.2. Software Development. Modification of the Company’s existing visual speech
recognition software (“F2F Software”) and Integration of the F2F Software with the Hardware.

2.1.3. Integration of Third Party Software. Integration of third party acoustic speech and
facial recognition software products (“3P Software”) with the F2F Software and the Hardware.

2.1.4. Product Development. Development of a commercial product that combines and
integrates the F2F Software, 3P Software and Hardware to provide human identification capabilities
and that can be used for security applications (“Product”). A single unit of the Product shall be
provided to Sponsor for acceptance testing. Upon acceptance of the Services and the Product, the
Company shall deliver to Sponsor a single unit of the Product together with the Product drawings,
engineering documentation and specifications relating thereto (collectively, “Deliverable”). The
Product and Sponsor’s right to make, have made, use, offer for sale, sell and import the Product
shall be subject to the License Agreement.

2.1.5. Maintenance. The Company shall provide maintenance services for the Product, which
shall include Sponsor requested enhancements, modifications and upgrades to the Product that fall
outside the scope of the Services as specified in Exhibit A, with the exception of modifications
addressed by warranties given by the Company in this Agreement, pursuant to the terms of a separate
agreement to be negotiated by the parties. Any such maintenance agreement shall provide for
payments to the Company in an amount not less than the Company’s actual costs for providing such
maintenance services.

2.2. Project Manager. The project manager for each party (a “Project Manager”) will be
designated within thirty (30) days from the Effective Date, and will be the sole contact for
managing the Services and provision of the Product.

2.3. Agreement to Perform Services. The Company agrees, subject to the terms and
conditions of this Agreement, to use commercially reasonable efforts to perform the Services. The
Services provided by the Company shall be limited to those Services described herein.

2.4. Acceptance of Services and Product. Sponsor shall undertake testing of the Product
after delivery by the Company. Sponsor shall notify the Company with respect to any deficiencies
in the performance of any of the Services or the Product within sixty (60) days of completion of
such Services and delivery of the Product. Each of the Services shall automatically be deemed
satisfactorily performed as of sixty (60) days from the completion of such Services, and the
Product will automatically be deemed accepted by Sponsor as of sixty (60) days from the date of
delivery of the Product to Sponsor, should Sponsor fail to provide the above notification to the
Company. Sponsor may also notify the Company that it requires an additional sixty (60) days to
complete testing of the Product, in which case, Sponsor shall complete testing within ninety (90)
days from delivery of the Product and the time period for notification and automatic acceptance
provided for in this Section 2.4 shall be extended by thirty (30) days. Notwithstanding the
foregoing, nothing set forth in this paragraph shall be deemed to supercede or otherwise abrogate
Sponsor’s claims under the warranties given by the Company in this Agreement.

2.5. Progress Reporting. The Company shall provide to Sponsor monthly reports on the
progress of the development of the Product.

2.6. Failure to Perform. Should Sponsor notify the Company of a failure to perform the
Services or provide the Product as a result of the acceptance testing, the Company shall have up to
sixty (60) days after such notification to remedy such failure. Should the Company fail to remedy
such failure, the Company shall be considered in material breach of the Share Issuance Agreement,
provided that should Company dispute Sponsor’s determination relating to performance of the
Services or providing of the Product, Company may initiate dispute resolution proceedings pursuant
to Section 13 hereunder and the sixty (60) day remedy period shall only begin upon resolution of
such dispute, if necessary.

3. CHANGES TO STATEMENTS OF WORK.

3.1. Change Order Requests. In the event the Sponsor requests a modification to the
Product or the Services specified herein, the Sponsor may provide to the Company a change order
request (a “Change Order Request”) requesting such a modification, provided that a
correction to comply with the specifications as set forth in a notice of deficiency pursuant to
Section 2.4 shall not require a Change Order Request. Each Change Order Request shall describe the
nature of the proposed changes in reasonable detail. A Change Order Request will become effective
only when a written acceptance of such Change Order Request (an “Amendment”) is executed by both
the Company and the Sponsor.

3.2. Response to Change Order Request. The Company agrees to consider each Change Order
Request submitted by the Sponsor. The Company will notify the Sponsor within ten (10) business
days after receiving a Change Order Request whether the Company will agree to implement the Change
Order Request as received or as amended by the Company and the cost of such implementation. The
parties may revise the Change Order Request based on such response from the Company. All Change
Order Requests will be in writing and no modifications to the Services will be allowed or provided
by the Company without an Amendment. If the parties are unable to agree to the terms and
conditions of the proposed Amendment, then the original Services as set forth herein shall remain
in full force and effect.

3.3. Other Effects of Changes. In the event an Amendment is executed by the parties
pursuant to a Change Order Request, then the services described in the Amendment shall be
“Services” for purposes of this Agreement.

4. SPONSOR ASSISTANCE.

The Sponsor agrees (i) upon receiving reasonable advance written notice from Company to make
available, when reasonably practicable, any and all Sponsor personnel necessary to assist and
enable the Company to complete the performance of the Services and the provision of the Product,
and (ii) to make reasonable efforts to request and facilitate the participation, as necessary, of
any third party vendors, solution providers, or other resources familiar with the Sponsor’s systems
and software related to the performance of the Services and the provision of the Product, if any.
The Sponsor further agrees to allow the Company full and free access to the Sponsor’s premises
where Services are to be performed, the Sponsor’s relevant information and materials as requested
by the Company to enable the Company to perform the Services and provide the Product, and access to
the Sponsor’s systems, software and databases as requested and where reasonably necessary to enable
the Company to perform the Services and provide the Product. The Sponsor acknowledges and agrees
that the Company’s ability to perform the Services and provide the Product in accordance with the
terms of this Agreement is dependent upon and subject to the Sponsor’s timely performance of its
obligations under this Agreement and each Amendment.

5. FEES AND LATE PAYMENTS.

5.1. Fees for Services. In exchange for Company’s performance of the Services and
providing to the Sponsor the Deliverable, Sponsor shall: (a) pay the Company $1,000 upon execution
of this Agreement; (b) provide the Company with confirmation (to the Company’s reasonable
satisfaction) of the existence (both at the time of execution of this Agreement and during the
Term) of deposit(s) held in a federally insured bank account in the name of or for the benefit of
Sponsor in the amount of $250,000; and (c) shall enter into the Share Issuance Agreement. The
Company’s ability to obtain $250,000 in grant funds from the government of the State of New Jersey
is conditional upon certification of the above amounts by Sponsor in such bank account. Any breach
of this provision will be considered a material breach of this Agreement.

5.2. Other Expenses.  Company shall bear all other expenses with respect to the development
undertaken pursuant to this Agreement and the transactions contemplated hereby. 

5.3. Overages. Other than as provided in Section 3, any overruns in the budget for the
Services or the Deliverable, as set forth in Exhibit A, shall be the sole responsibility of the
Company.

6. LIMITED WARRANTY AND DISCLAIMERS.

6.1. Limited Service Warranty. The Company warrants to the Sponsor that the Services will
be performed in a professional and workmanlike manner, and in accordance with the requirements, if
any, specified herein and in any Amendment.

6.2. Limited Product Warranty. The Company warrants to the Sponsor that the Product will
function in accordance with the requirements as set forth in Exhibit A. To the extent that the
Product does not function in accordance with the requirements as set forth in Exhibit A, the
Company shall modify and/or replace the Product or any part thereof as it deems reasonably
necessary, at its sole discretion, as required for the Product to function in accordance with the
requirements as set forth in Exhibit A. This warranty shall remain in effect for sixty (60) days
from the date that the Product is accepted as set forth in paragraph 2.4 of this Agreement and
shall cover any deficiencies identified to the Company in writing by the Sponsor during such
period.

6.3. No Warranty for Third Party Materials. The Company makes no representation or
warranty regarding third party services, or any software or hardware acquired by the Sponsor or the
Company from a third party, and all such third party services, software and hardware is provided
“AS IS” and “WITH ALL FAULTS.” To the extent that any warranties for third party hardware or
software are provided to the Company, the Company shall pass such warranties through to the
Sponsor, to the extent that it is able. Company shall include no third party components in the
Deliverable unless, through the exercise of reasonable commercial diligence by Company, such third
party component will function according to the specifications as provided to Company for the
functionality of the component.

6.4. No Other Warranty; Disclaimer. EXCEPT FOR THE FOREGOING LIMITED WARRANTY, THE COMPANY
MAKES NO OTHER WARRANTY OF ANY KIND TO THE SPONSOR, EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO
THE SERVICES, THE DELIVERABLE, THE RESULTS OBTAINED FROM THE SERVICES OR ANY SOFTWARE USED BY THE
SPONSOR, IF ANY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT AND ALL SUCH WARRANTIES ARE HEREBY EXCLUDED BY THE
COMPANY AND WAIVED BY THE SPONSOR.

7. CONFIDENTIAL INFORMATION.

7.1. Definition of Confidential Information. “Confidential Information” as used in this
Agreement shall mean (whether disclosed orally or in writing and whether or not marked or
designated as confidential) any and all technical and non-technical information, including patent,
copyright, trade secret and proprietary information, techniques, sketches, drawings, models,
inventions, know-how, processes, apparatus, equipment, algorithms, software programs, source code,
object code, software source documents, and formulae, related to the current, future and proposed
products and services of a party, a party’s suppliers and Sponsors, and includes, without
limitation, a party’s information concerning research, experimental work, development, design
details and specifications, engineering, financial information, procurement requirements,
purchasing, manufacturing, Sponsor lists, business forecasts, sales, merchandising, marketing and
business plans and information. Confidential Information shall include any third party information
that is provided by the Disclosing Party and designated by the Disclosing Party as Confidential
Information. The terms of this Agreement and any Amendment are also Confidential Information.

7.2. Nondisclosure and Nonuse Obligations. Except as permitted in this Agreement, neither
party (the “Receiving Party”) shall use nor disclose the Confidential Information of the other
party (the “Disclosing Party”) to any third party without the prior written consent of the
Disclosing Party. The Receiving Party agrees that it shall treat all Confidential Information of
the Disclosing Party with the same degree of care as the Receiving Party accords to its own
Confidential Information, but in no case less than reasonable care. The Receiving Party may
disclose Confidential Information only to those of its employees and contractors who need to know
such information, and only to those employees and contractors that have previously agreed as a
condition of employment or do agree in order to obtain the Confidential Information, to be bound by
terms and conditions substantially similar to those terms and conditions applicable to the
Receiving Party under this Section 7. The Disclosing Party agrees not to communicate any
information to the Receiving Party in violation of the proprietary rights of any third party. The
Receiving Party will immediately give notice to the Disclosing Party of any unauthorized use or
disclosure of the Confidential Information. The Receiving Party agrees to assist the Disclosing
Party in remedying any such unauthorized use or disclosure of the Confidential Information. The
parties hereby agree that breach of this Section 7.2 by the Receiving Party will cause
irreparable harm and injury to the Disclosing Party for which money damages are inadequate. In the
event of such breach, the Disclosing Party shall be entitled to injunctive relief, in addition to
its legal and other equitable remedies. The obligations in this Section 7 shall survive
the termination of this Agreement.

7.3. Exclusions from Nondisclosure and Nonuse Obligations. The Receiving Party’s
obligations under Section 7.2 with respect to any portion of the Confidential Information
shall not apply to any such portion which the Receiving Party can demonstrate, (a) was in the
public domain at or subsequent to the time such portion was communicated to the Receiving Party by
the Disclosing Party, except (i) by breach of this Agreement by the Receiving Party or (ii)
disclosure by any person to whom Confidential Information was disclosed under this Agreement; (b)
was rightfully in the Receiving Party’s possession, free of any obligation of confidence, at the
time such portion was communicated to the Receiving Party by the Disclosing Party as demonstrated
by prior existing documentation; or (c) was developed by employees of the Receiving Party
independently of and without reference to any information communicated to the Receiving Party by
the Disclosing Party. A disclosure of Confidential Information by the Receiving Party, either (i)
in response to a valid order by a court or other governmental body, (ii) otherwise required by law,
or (iii) necessary to establish the rights of either party under this Agreement, shall not be
considered to be a breach of this Agreement or a waiver of confidentiality for other purposes;
provided, however, that the Receiving Party shall provide prompt prior written notice thereof to
the Disclosing Party to enable the Disclosing Party to seek a protective order or otherwise prevent
such disclosure.

7.4. Ownership and Return of Confidential Information. Upon the termination or expiration
of the License Agreement, the Receiving Party, at the Disclosing Party’s request and no later than
five (5) days after such request, shall destroy or deliver to the Receiving Party, at the
Disclosing Party’s option, all Confidential Information of the Disclosing Party and written
certification of the Receiving Party’s compliance with its obligations under this sentence. All
right, title and interest in and to the Disclosing Party’s Confidential Information and all
intellectual property rights therein shall remain with the Disclosing Party.

7.5. Residuals. Notwithstanding anything to the contrary in this Agreement, the terms of
this Agreement shall not be construed to limit the Company’s right to independently develop,
acquire or provide products or services without use of the Sponsor’s Confidential Information.
Further, the Company shall be free to use for any purpose the Residuals resulting from the
performance of the Services or access to or work with the Sponsor’s Confidential Information,
provided that the Company shall maintain the confidentiality of the Sponsor’s Confidential
Information as provided herein. The term “Residuals” means information in non-tangible form, which
may be retained by persons who have provided Services or have otherwise had access to the
Confidential Information of the Sponsor, including ideas, general skills, expertise, methods,
concepts, know-how or techniques contained therein, provided that such information relates to
knowledge and concepts generally applicable to management/system consulting, software design and
development and systems training and which are not solely comprised of Confidential Information of
the Sponsor that is unique to the Sponsor. The Company shall have no obligation to pay royalties
to the Sponsor for any work resulting from the use of the Residuals.

8. INDEMNITY.

8.1. The Sponsor shall indemnify and hold harmless the Company, its officers, agents and employees
from and against any claims, demands, or causes of action whatsoever, including without limitation
those caused by any negligent act or omission or unlawful misconduct of Sponsor, its subsidiaries
or their officers, or employees, agents or representatives, resulting in any loss of or damage to
any property or injury or death of any person as a result of use of the Product or as a result of
any breach by the Sponsor of any representation, warranty, covenant or any other term of this
Agreement or any Amendment.

8.2. The Company shall indemnify and hold harmless the Sponsor, its officers, agents and employees
from and against any claims, demands, or causes of action whatsoever, including without limitation
those caused by any negligent act or omission or unlawful misconduct of the Company, its
subsidiaries or their officers, or employees, agents or representatives, resulting in any loss of
or damage to any property or injury or death of any person as a result of performance of the
Services or as a result of any breach by the Sponsor of any representation, warranty, covenant or
any other term of this Agreement or any Amendment.

9. LIMITATION ON LIABILITY.

9.1. No Consequential Damages. IN NO EVENT SHALL THE COMPANY BE LIABLE TO THE SPONSOR OR
ANY OTHER PERSON OR ENTITY FOR THE COST OF SUBSTITUTE GOODS OR SERVICES OR ANY SPECIAL,
CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY OR PUNITIVE DAMAGES, HOWEVER CAUSED, ARISING OUT OF
THE PERFORMANCE OF THE SERVICES OR THE PROVISION OF THE DELIVERABLE REGARDLESS OF THE FORM OF
ACTION, WHETHER FOR BREACH OF CONTRACT, BREACH OF WARRANTY, TORT, NEGLIGENCE, STRICT PRODUCT
LIABILITY, INFRINGEMENT OR OTHERWISE (INCLUDING, WITHOUT LIMITATION, DAMAGES BASED ON WILLFULNESS,
LOSS OF PROFITS, DATA, FILES, OR BUSINESS OPPORTUNITY), AND WHETHER OR NOT THE COMPANY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION SHALL APPLY NOTWITHSTANDING ANY
FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY PROVIDED HEREIN.

9.2. Liability Cap. IN NO EVENT SHALL THE COMPANY’S AGGREGATE LIABILITY TO THE SPONSOR FOR
ALL CLAIMS, WHETHER IN CONTRACT, TORT OR ANY OTHER THEORY OF LIABILITY, EXCEED ONE HUNDRED THOUSAND
DOLLARS ($100,000). THIS LIMITATION SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE
OF ANY LIMITED REMEDY PROVIDED HEREIN.

10. NON-SOLICITATION.

10.1. Non-Solicitation. During the term of this Agreement, and for a period of one (1)
year immediately following its termination, each party agrees not to directly or indirectly solicit
or induce any employee or independent contractor of the other party to terminate or breach an
employment, contractual or other relationship with the other party.

11. TERM AND TERMINATION.

11.1. Term. This Agreement shall commence on the Effective Date and shall continue for a
period of twelve (12) months thereafter, which may be renewed for up to one additional period not
to exceed six (6) months upon agreement of the parties.

11.2. Termination for Cause. If either party is in material breach of the terms of this
Agreement or any Amendment, the non-breaching party may give written notice of such breach to the
breaching party. Upon receipt of written notice from the non-breaching party, the breaching party
shall have thirty (30) calendar days to cure the breach. If such breach is not cured or
commencement of a cure begun within such thirty (30) calendar day period, and when applicable, a
cure diligently pursued thereafter, the non-breaching party may immediately terminate this
Agreement by subsequent written notice to the party in breach.

11.3. Termination for Insolvency. This Agreement may be terminated by a party (i) upon the
institution by or against the other party of insolvency, receivership or bankruptcy proceedings or
any other proceeding for the settlement of such party’s debts, (ii) upon either party making an
assignment for the benefit of creditors, or (iii) upon either party’s dissolution or ceasing to do
business but only if the party described in (i), (ii) or (iii) is in breach of its obligations
under this Agreement or any Amendment and the other party so desires to terminate this Agreement by
giving written notice.

11.4. Rights Upon Termination.

11.4.1. Upon termination of the Agreement pursuant to Section 11.1, each party shall, at
the other party’s discretion, either immediately destroy or return to the other party any and all
Confidential Information of the other party in its possession or control and a duly authorized
officer of such party shall certify to the other party in writing that such return and/or
destruction, as the case may be, has occurred.

11.4.2. Upon the termination of this Agreement pursuant to Section 11.2 (i) each party
shall, at the other party’s discretion, either immediately destroy or return to the other party any
and all Confidential Information of the other party in its possession or control related to this
Agreement and any Amendment, and a duly authorized officer of such party shall certify to the other
party in writing that such return and/or destruction, as the case may be, has occurred; (ii) the
Company shall cease providing all Services described in the Agreement and/or any Amendment; and
(iii) the Deliverable to be provided to the Sponsor pursuant to the Agreement and/or any Amendment,
shall be provided to the Sponsor in its current state of completion on the effective date of such
termination.

11.5. Survival. The rights and obligations contained in Sections 5 (Fees and Late
Payments), 6 (Limited Warranty and Disclaimers), 7 (Confidential Information),
8 (Indemnity), 9 (Limitation on Liability), 10 (Non-Solicitation),
11.3 (Rights Upon Termination), 11.4 (Survival), 12 (Non-Exclusive
Engagement), 14 (Trademarks), 15.5 (Arbitration) and 15.6 (Governing Law)
shall survive any termination or expiration of this Agreement.

12. NON-EXCLUSIVE ENGAGEMENT.

The Company is engaged in the business of, among other things, providing services, to others,
including actual or potential customers of, suppliers to, and competitors with the Sponsor. The
Company’s engagement under this Agreement is non-exclusive; and, subject to the Company’s adherence
to its obligations regarding the Sponsor’s Confidential Information, neither this Agreement nor the
Company’s engagement hereunder shall prohibit, restrict or limit the Company in any way from
providing services to or otherwise engaging in any relationship with any other person or entity,
including any actual or potential customers of, supplier to, and competitors with, the Sponsor.

13. DISPUTE RESOLUTION.

13.1. Notification. In the event of any dispute arising out of or relating to this
Agreement, any Amendment, or any portions thereof the Project Manager of either party (referred to
for convenience in this Section as the “Delivering Party”) shall notify the Project Manager of the
other party (referred to for convenience in this Section as the “Notified Party”) in writing of the
dispute, specifying such dispute in reasonable detail (the “Dispute Notice”).

13.2. Response. The Notified Party shall respond to the Dispute Notice in writing within
ten (10) business days of receipt thereof (the “Response Notice”). If the Notified Party
acknowledges the dispute, the Response Notice shall specify the steps the Notified Party will take
to resolve the dispute and the time schedule for such resolution. The parties agree to consider
all good faith and commercially reasonable solutions and to exercise all commercially reasonable
efforts to resolve the dispute.

13.3. Escalation. In the event (i) the parties are unable to reach resolution of the
dispute, or (ii) the Notified Party has not taken the steps mutually agreed to by the parties
pursuant to Section 13.2 in accordance with the agreed time schedule, if applicable, then
either party may proceed with alternative methods for resolving the dispute to the full extent
permitted by this Agreement and by law.

14. TRADEMARKS; INVENTIONS.

14.1. Any and all trademarks, trade names, logos, service marks, trade dress or other proprietary
indicia of the Company (collectively, the “Company Marks”) are and shall remain the exclusive
property of the Company. The Sponsor has no rights in or to the Company Marks and may not utilize
the Company Marks for any purpose without the prior written consent of the Company. Any
unauthorized use or misuse of the Company Marks shall constitute an infringement of the Company’s
rights in and to the Company Marks and shall constitute a material breach of this Agreement.

14.2. Any and all ideas, inventions, discoveries, know-how, improvements and works of authorship,
including, but not limited to, those which are or may be patentable or subject to copyright
protection (including, but not limited to, object code, source code, annotations, flow charts and
reports) that are created and/or conceived as a result of the performance of the Services,
provision of the Deliverable and/or resulting from this Agreement, are and shall be the sole and
exclusive property of the Company.

14.3. Any and all trademarks, trade names, logos, service marks, trade dress or other proprietary
indicia of the Sponsor (collectively, the “Sponsor Marks”) are and shall remain the exclusive
property of the Sponsor. The Company has no rights in or to the Sponsor Marks and may not utilize
the Sponsor Marks for any purpose without the prior written consent of the Sponsor. Any
unauthorized use or misuse of the Sponsor Marks shall constitute an infringement of the Sponsor’s
rights in and to the Sponsor Marks and shall constitute a material breach of this Agreement.

15. MISCELLANEOUS.

15.1. Independent Contractor Relationship. The relationship between the parties is that of
independent contractors, and nothing in this Agreement is intended to, or should be construed to,
create a partnership, agency, joint venture or employment relationship. The Company will not be
entitled to any of the benefits which the Sponsor may make available to its employees, including,
but not limited to, group health or life insurance, profit-sharing or retirement benefits. Neither
party is authorized to make any representation, contract or commitment on behalf of the other
party. The Company is solely responsible for, filing all tax returns and payments required to be
filed with, or made to, any federal, state or local tax authority with respect to the performance
of Services and receipt of fees under this Agreement. No part of the Company’s compensation will
be subject to withholding by the Sponsor for the payment of any social security, federal, state or
any other employee payroll taxes.

15.2. Allocation of Risk. The sections on limitation of liability and limitation of
warranties allocate the risks of this Agreement between the parties. This allocation is reflected
in the pricing of the Services and Deliverable as provided hereunder and is an essential element of
the basis of the bargain between the parties.

15.3. No Assignment. Neither party may assign to a non-affiliated company this Agreement
or any rights or obligations under this Agreement without the written consent of the other party,
which consent may not be unreasonably withheld. Notwithstanding the foregoing, each party may
assign this Agreement to a third party without such consent, in the event of or in connection with
a merger, reorganization or the sale of all, substantially all or a majority of its assets or
voting securities.

15.4. Notices. Any notice required or permitted by this Agreement shall be in writing and
shall be delivered as follows, with receipt by a party and notice deemed given as indicated: (a)
by personal delivery, when delivered personally; (b) by overnight courier, upon written
verification of receipt; (c) by telecopy or facsimile transmission, upon acknowledgment of receipt
of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon
verification of receipt. Notice shall be sent to the Company at the address set forth above and to
the Sponsor at the address set forth on the signature page below, or to such other address as
either party may specify in writing.

15.5. Arbitration. Except as to claims or disputes arising out of or relating to
Sections 7 and 10 (the “Non-Arbitrable Claims”), any controversy, claim or
dispute arising out of or relating to this Agreement, shall be determined by arbitration in Newark,
New Jersey (for any action or claim brought by the Company) and in Philadelphia, Pennsylvania (for
any action or claim brought by the Sponsor) before a sole arbitrator. The arbitration shall be
administered by the American Arbitration Association (“AAA”) pursuant to its then existing
Commercial Arbitration rules and procedures. The arbitrator shall be a non-lawyer with at least
ten (10) years experience in the software development industry. If the parties are unable to
agree on an arbitrator within thirty (30) days of the filing of the demand for arbitration, an
arbitrator shall be selected pursuant to the Commercial Arbitration rules and procedures of the
AAA. The parties hereto shall be entitled to reasonable discovery (both documentary and
depositions) in any such arbitration. The non-prevailing party shall bear all costs and expenses,
including attorneys’ fees, administrative costs and the fees of the arbitrator in connection with
such arbitration. The arbitration award shall be in writing and, shall specify the factual and
legal basis for the award and shall be conclusive and final. Judgment on the award may be entered
in the courts of applicable jurisdiction.

15.6. Governing Law. This Agreement shall be governed in all respects by the laws of the
State of Delaware; without giving effect to its internal conflict of law provisions. Each party
will voluntarily appear before and hereby consents and submits to the exclusive jurisdiction of the
state and federal courts in and for Newark, New Jersey (with respect to any action or claim brought
by the Company) and the state and federal courts in and for Philadelphia, Pennsylvania (with
respect to any action or claim brought by the Sponsor) in connection with any suit, action,
proceeding or counterclaim against it arising out of or in any way relating to Non-Arbitrable
Claims. In addition, each party consents to venue and hereby waives objections to venue for any
such action commenced in such courts related to such Non-Arbitrable Claims and to enforcement of
any requirements of Section 15.5 or enforcement of any arbitration decision or award
pursuant to Section 15.5. All actions related to or arising out of this Agreement must be
brought within one (1) year after the cause of action accrued. Each of the parties hereto
irrevocably waives all right to trial by jury in any action, proceeding or counterclaims arising
out of or relating to this Agreement or any other document. The prevailing party in any such
litigation or dispute shall be entitled to recover from the other party its costs and fees,
including attorneys’ fees, associated with such litigation or dispute.

15.7. Severability. If any provision of this Agreement is held by a court of law to be
illegal, invalid or unenforceable, (i) that provision shall be deemed amended to achieve as nearly
as possible the same economic effect as the original provision, and (ii) the legality, validity and
enforceability of the remaining provisions of this Agreement shall not be affected or impaired
thereby.

15.8. Waiver; Amendment; Modification. No term or provision hereof will be considered
waived by either party, and no breach excused by either party, unless such waiver or consent is in
writing signed by the party granting such waiver or consent. The waiver by either party of, or
consent by either party to, a breach of any provision of this Agreement by the other party, shall
not operate or be construed as a waiver of, consent to, or excuse of any other or subsequent breach
by such other party. Any written waiver shall not be deemed a continuing waiver unless
specifically stated, shall operate only as to the specific term or condition waived and shall not
constitute a waiver of such term or condition for the future or as to any act other than that
specifically waived. This Agreement may be amended or modified only by mutual agreement of
authorized representatives of the parties in writing.

15.9. Entire Agreement. This Agreement and any Appendices and/or Exhibits attached hereto,
which are hereby incorporated herein by reference, constitute the entire agreement between the
parties relating to their subject matter and supersede all prior or contemporaneous oral or written
agreements concerning such subject matter.

15.10. Headings. The section headings appearing in this Agreement are inserted only as a
matter of convenience and in no way define, limit, construe or describe the scope or extent of such
paragraph or in any way affect such paragraph.

15.11. Counterparts. This Agreement may be executed in counterparts, all of which taken
together shall constitute one single agreement between the parties.

15.12. Construction. This Agreement has been negotiated by the parties and their
respective counsel. This Agreement will be fairly interpreted in accordance with its terms and
without any strict construction in favor of or against any party. Any ambiguity will not be
interpreted against the drafting party.

15.13. Press Releases and Public Announcements. The Company and Sponsor will each have the
right to include the other’s name on marketing materials that such party may prepare or distribute,
subject to the prior written approval of the other party, which approval shall not be unreasonably
withheld.

15.14. Force Majeure. Neither party shall be liable for nonperformance or delays, under
any circumstances, which occur due to any causes beyond its reasonable control. These causes shall
include, but shall not be limited to, the nature of the Sponsor’s hardware, software or systems,
acts of God, terrorism, wars, riots, strikes, fires, storms, floods, earthquakes, shortages of
labor or materials, labor disputes, vendor failures, third party service provider failures,
transportation embargoes, acts of any government or agency thereof and judicial actions. In the
event of any such delay or failure of performance, the date of delivery or performance shall be
deferred for a period equal to the time lost by reason of the delay.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date and the
person signing below represents that he/she is duly authorized to sign for and on behalf of the
respective party.

	 	 	 
	COMPANY:

	 	SPONSOR:
	FACE2FACE ANIMATION, INC.

	 	INMOTION BIOMETRICS, INC.
	 
	 	 
	By: /s/ Eric Petajan

Name: Eric Petajan

Title: Founder and Chief Scientist

	 	By: /s/ Terrence DeFranco

Name: Terrence DeFranco

Title: Chief Executive Officer

1

EXHIBIT A

1. Services and Schedule.

	 	 	 
	Completion Date	 	Activity
	August 27, 2005

	 	Finalize hardware equipment requirements and

purchases, evaluate current versions, consider

alternative processor ( second choice) for the

CVAB platform. Evaluate peripheral equipment

requirements for cameras, etc. Finalize software

requirements and purchases for selected hardware.

Evaluation and selection of GPU (ATI vs. Nvidia),

VDSP (Equator vs. TI, etc.), voice recognition

vendor, face tracking vendor, and face recognition

vendor, PCI or PCI Express. Finalize Board

specifications, software layer inter operation

requirements and expansion / upgrade

considerations.

Produce Final Design specification document system

architecture for the CVAB. Setup database storage

and processing system for digit pair data.
	 

	 	

	 
	 	 
	November 27, 2005

	 	Complete processing of first 200 data sets into

FAP and FDP data. Identify VAB design, layout,

and fabrication contractor. Specify video input

processing functions for FPGA (window, resample,

rotate, YUV-RGB, etc.).

Establish standard APIs for all non-exclusive

components (face and voice recognition, etc.).

Obtain development system for VDSP. Obtain bid

from VAB fab contractor.
	 

	 	

	 
	 	 
	February 27, 2006

	 	Establish license agreement with SMA vendor (if

needed). Integrate FAPs into voice recognition

system. Implement multi-modal recognition engine

on Host PC. Implement non real-time software

version of ACS using chosen. GPU graphics card.

Port model-less facial capture to VDSP. Implement

speaker verification on host PC. Implement basic

VAB functions on first stuffed and electrically

tested prototype (ring buffered and windowed

video, PC bus access, GPU function, VDSP control

functions). Implement face tracking on VDSP.

Implement model-less facial capture on VAB.
	 

	 	

	 
	 	 
	May 27, 2006

	 	Implement system control on VDSP. Implement

model-based facial capture on VAB. Integrate VAB

with Host-based functions (multi-modal Recognizer,

speech recognizer). Test ACS using 200 person

database. Implement application environment and

test throughput. Conduct Field testing etc.
	 

	 	

2. Product and Schedule.

	 	 	 
	Completion Date	 	Product
	The latter of

February 27, 2006

or nine (9) months

	 	

1. Functional CVAB having the following components:
	after the Effective

Date.

	 	a. The Hardware layer which enables the basic FPGA.

b. Functionality of the CVAB.
	 

	 	

	 
	 	 
	The latter of May

27, 2006 or twelve

(12) months after

the Effective Date.

	 	1. Operational model-less algorithms.

2. Operational model based algorithms.

3. The voice recognition component, (the acoustic speech component).

4. The face recognition component
	 

	 	

	 
	 	 

2

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