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		EXHIBIT 10.1

			

		

		
			PLAN AND AGREEMENT OF STOCK EXCHANGE

				

				AMONG

				

				HYBRID DYNAMICS CORPORATION

				

				PUKKA USA, INC.

				

				AND

				

				THE SHAREHOLDERS OF

				INFOMAC CORPORATION

				

				DATED August 23, 2007

				

				

				

			

		

		
			TABLE OF CONTENTS

				

				PLAN AND AGREEMENT OF REORGANIZATION

				

				AGREEMENT

				

				Section 1 - Transfer of Shares

				

				Section 2 - Issuance of EXCHANGE SHARES to OWNERS

				

				Section 3 – Intentionally Left Blank

				

				Section 4 – Closing

				

				Section 5 - Representations and Warranties by ACQUIREE and OWNERS

				

				Section 6 - Representations and Warranties by ACQUIROR

				

				Section 7 - Access and Information

				

				Section 8 - Covenants of ACQUIREE and OWNERS

				

				Section 9 - Covenants of ACQUIROR

				

				Section 10 - Additional Covenants of the Parties

				

				Section 11 - Non-Survival of Representations, Warranties and Covenants

				

				Section 12 - Conditions Precedent to Obligations of Parties

				

				Section 13 - Termination, Amendment, Waiver

				

				Section 14 – Miscellaneous

				

				

				

				

			

		

		

		

		

		

		

		EXHIBIT LIST

		

		Exhibit "A-1"     UNANIMOUS WRITTEN CONSENT OF THE BOARD OF DIRECTORS OF HYBRID DYNAMICS CORPORATION

		

		Exhibit “A-2”     ACTION BY UNANIMOUS WRITTEN CONSENT OF THE SHAREHOLDERS OF PUKKA USA, INC.

		

		Exhibit "B"         ACTION BY UNANIMOUS WRITTEN CONSENT OF THE SHAREHOLDERS OF INFOMAC CORPORATION

		

		Exhibit “C”         ACQUIREE FINANCIAL STATEMENTS

		

		Exhibit “D”         ACQUIROR FINANCIAL STATEMENTS

		

		Exhibit “E”         ACQUIROR CAPITALIZATION & SHAREHOLDERS

		

		Exhibit “F”         FORM OF INDIVIDUAL OWNER REPRESENTATION LETTER

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		
			PLAN AND AGREEMENT OF STOCK EXCHANGE

				

			

		

		
			This Plan and Agreement of STOCK EXCHANGE ("Agreement") is entered into on this 23rd day of August, 2007 by and between HYBRID DYNAMICS CORPORATION, a Nevada corporation (“HYBRID”), PUKKA USA, INC., a Utah corporation (the "ACQUIROR"), on the one hand and INFOMAC CORPORATION (the "ACQUIREE”), a Nevada corporation and the shareholders of ACQUIREE whose names appear below (the “OWNER” OR “OWNNERS”).

				

			

		

		
			RECITALS:

				

			

		

		
			WHEREAS, the transaction contemplated by this Agreement is intended to be a qualified Type "B" reorganization pursuant to Internal Revenue Code Section 368, and conforming Utah and Nevada law, and

				

				WHEREAS, ACQUIREE is the holder of a Distributor Agreement with Microtrak GPS, Inc. a manufacturer of GPS enabled tracking products for motorcycles, scooters and other mobile vehicles and equipment, and

				

				WHEREAS, ACQUIROR intends to acquire: 100% of ACQUIREE’s issued and outstanding capital stock (the “ACQUIREE SHARES”), and 

				

				WHEREAS, the ACQUIREE SHARES are to be acquired in exchange for 1,410,000 shares of the common stock HYBRID, $0.00015 par value (post 1 for 100 reverse split),  and

				

				WHEREAS, following consummation of the transaction set forth hereinafter, ACQUIROR would hold 100% of the then outstanding common stock of ACQUIREE and the ACQUIREE would become the wholly-owned subsidiary of ACQUIROR.

				

				NOW, THEREFORE, WITNESSETH that in consideration of the mutual promises and covenants hereinafter stipulated and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties hereto, the parties agree as follows:

				

				

				Section 1

				TRANSFER OF SECURITIES

				

				1.1       OWNERS, as of the date of Closing as such term is defined in Section 4 herein (the "Closing" or the "Closing Date"), shall transfer, assign, convey and deliver to ACQUIROR on the Closing Date, one hundred percent (100%) of ACQUIREE’s issued and outstanding capital stock, consisting of four million two hundred thirty thousand (4,230,000) shares of common stock, $0.0001 par value (the “ACQUIREE SHARES”).   The transfer of the ACQUIREE SHARES shall be made free and clear of all liens, mortgages, pledges, encumbrances or charges, whether disclosed or undisclosed, except as OWNERS and ACQUIROR shall have otherwise agreed in writing.

				

				1.2       For purposes hereof, the ACQUIREE SHARES shall include all of the issued and outstanding shares of capital stock of ACQUIREE owned by OWNERS, which shares shall constitute all of the issued and outstanding equity securities of ACQUIREE.  OWNERS and AQUIREE shall represent and warrant that there are no other securities of ACQUIREE issued and outstanding other than the ACQUIREE SHARES being conveyed hereunder.

				

				

				Section 2

				ISSUANCE OF EXCHANGE SHARES TO OWNER

				

				2.1       As consideration for the transfer, assignment, conveyance and delivery of the ACQUIREE SHARES hereunder, ACQUIROR shall, at the Closing, deliver to OWNERS certificates representing one million four hundred ten thousand (1,410,000) post 100-to-1 reverse split shares of HYBRID common stock, $0.00015 par value, (the "EXCHANGE SHARES"), in the number as set forth on opposite the name of each OWNER signatory hereto.  The parties hereto represent, acknowledge and agree that the EXCHANGE SHARES being issued hereunder are being used solely to acquire all of the ACQUIREE SHARES.  (The issuance of the EXCHANGE SHARES in consideration of the ACQUIREE SHARES hereinafter referred to as the “EXCHANGE” or the “EXCHANGE TRANSACTION”).  HYBRID represents that contemporaneously with this transaction, HYBRID’s common stock 

				

				

				

			

			

			

			

			

			

			

			is in the process of a 100-to-1 reverse stock split, and it is the intention of all parties hereto that the EXCHANGE SHARES being issued hereunder shall be shares of HYBRID common stock issued subsequent to the closing of its aforementioned reverse split.

			

			2.2       The issuance of the EXCHANGE SHARES shall be made free and clear of all liens, mortgages, pledges, encumbrances or charges, whether disclosed or undisclosed, except as OWNERS and ACQUIROR shall have otherwise agreed in writing.

			

			2.3       None of the EXCHANGE SHARES issued to the OWNERS, nor any of ACQUIROR’S shares, at the time of Closing, shall be registered under federal securities laws but, rather, shall be issued pursuant to an exemption there from and be considered "restricted stock" within the meaning of Rule 144 promulgated under the Securities Act of 1933, as amended (the "Act"). All of the respective certificates representing such shares shall bear a legend worded substantially as follows:

		

		
			
				“THESE SECURITIES HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR THE SECURITIES LAWS OF ANY STATE. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER THE ACT AND UNDER SUCH STATE LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION AND QUALIFICATION UNDER THE ACT AND SUCH STATE LAWS IS NOT REQUIRED.”

			

		

		The respective transfer agents of ACQUIROR and ACQUIREE shall annotate their records to reflect the restrictions on transfer embodied in the legend set forth above. There shall be no requirement that ACQUIROR register the OWNERS’ EXCHANGE SHARES under the Act or any state securities laws, nor shall OWNERS or the ACQUIREE be required to register any of the ACQUIREE SHARES under the Act or any state securities laws.

			

			

			Section 3

			Intentionally Left Blank.

			

			

			Section 4

			CLOSING

			

			4.1       Closing of Transaction. Subject to the fulfillment or waiver of the conditions precedent set forth in Sections 3 and 12 hereof, the Closing shall take place on the Closing Date at the offices of ACQUIROR, at 10:00 A.M., local time, or at such other time on the Closing Date as OWNERS and ACQUIROR may mutually agree in writing.

			

			4.2       Closing Date. The Closing Date of the Exchange shall take place on a date chosen by mutual agreement of OWNERS and ACQUIROR within thirty (30) days from the date of this Agreement, but not later than the date set forth in subsection 13.1(b) herein below or such later date upon which OWNERS and ACQUIROR may mutually agree in writing.

			

			4.3       Deliveries at Closing.

			

			(a)       OWNERS shall deliver or cause to be delivered to ACQUIROR at Closing:

		

		
			(i)       Certificates representing all shares of ACQUIREE’S issued and outstanding capital stock as described in Section 1.1, each endorsed in blank by the registered owner;

		

		(b)       ACQUIREE shall deliver or cause to be delivered to ACQUIROR at Closing:

		

		
			(i)       A copy of a consent of the board of directors of ACQUIREE and copy of a consent of stockholders, if required, authorizing ACQUIREE to take the necessary steps toward Closing the transaction described by this Agreement in the form set forth in Exhibit “B”;

				

				(ii)       A copy of a Certificate of Good Standing for ACQUIREE issued not more than thirty (30) days prior to Closing by the Nevada Secretary of State; and

		

		

		

		

		

		

		

		

		

		

		
			(iii)       A copy of ACQUIREES Articles of Incorporation and By-Laws certified as of the Closing Date by the Secretary of ACQUIREE.

				

				(iv)       All of ACQUIROR'S corporate records;

				

				(v)       Such other documents, instruments or certificates as shall be reasonably requested by ACQUIROR or its counsel.

		

		(c)       ACQUIROR shall deliver or cause to be delivered to OWNER at Closing:

		

		
			(i)       A copy of a consent of the board of directors of HYBRID and of ACQUIREE authorizing HYBRID and ACQUIROR to take the necessary steps toward Closing the transaction described by this Agreement in the form set forth in Exhibit “A-1” and “A-2”;

				

				(ii)       A copy of a Certificate of Good Standing for ACQUIROR issued not more than thirty (30) days prior to Closing by the Secretary of State of Nevada;

				

				(iii)       Stock certificate(s) or a computer listing from ACQUIROR'S transfer agent representing the EXCHANGE SHARES to be newly issued by ACQUIROR under this Agreement, which certificates shall be in the name of the OWNERS, each in the appropriate denomination as described in Section 2;

				

				(iv)       Articles of Incorporation and Bylaws of ACQUIROR certified as of the Closing Date by the Secretary of ACQUIROR;

				

				(v)       Such other documents, instruments or certificates as shall be reasonably requested by ACQUIREE, OWNERS or their counsel.

		

		4.4      Filings; Cooperation.

			

			(a)       Prior to the Closing, the parties shall proceed with due diligence and in good faith to make such filings and take such other actions as may be necessary to satisfy the conditions precedent set forth in Section 12 below.

			

			(b)       On and after the Closing Date, ACQUIROR, ACQUIREE and the OWNERS shall, on request and without further consideration, cooperate with one another by furnishing or using their best efforts to cause others to furnish any additional information and/or executing and delivering or using their best efforts to cause others to execute and deliver any additional documents and/or instruments, and doing or using their best efforts to cause others to do any and all such other things as may be reasonably required by the parties or their counsel to consummate or otherwise implement the transactions contemplated by this Agreement.

			

			

			Section 5

			REPRESENTATIONS AND WARRANTIES BY ACQUIREE AND OWNER

			

			5.1       Subject to the schedule of exceptions, attached hereto and incorporated herein by this reference, (which schedule(s) shall be acceptable to ACQUIROR), ACQUIREE and OWNERS represent and warrant to ACQUIROR as follows:

			

			(a)       Organization and Good Standing.

		

		
			(i)       ACQUIREE. ACQUIREE is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, with the requisite corporate power and authority to enter into this Agreement and consummate the transactions contemplated hereunder and to own and operate its businesses as presently conducted, except where the failure to be or have any of the foregoing would not have a material adverse effect.  ACQUIREE is duly qualified as a foreign company or other entity to do business and is in good standing in each jurisdiction where the character of its properties owned or held under lease or the nature of its activities makes such qualification necessary, except for such failures to be so qualified or in good standing as would not, individually or in the aggregate, have a material adverse effect. The Articles of Incorporation of ACQUIREE and all Amendments thereto as presently in effect, and the Bylaws of ACQUIREE as presently in effect, both of which shall be certified by the Secretary of ACQUIREE, have been delivered to ACQUIROR and are complete and correct and since the date of such delivery, there has been no amendment, modification or other change thereto.

				

				(ii)       OWNERS.  OWNERS are each duly organized, validly existing and in good standing under the laws of the jurisdiction of their respective organization.  OWNERS each have the requisite corporate power and authority to enter into this Agreement and consummate the transactions contemplated hereunder.

		

		(b)       Capitalization.  

		

		
			(i)       ACQUIREE’S authorized capital consists of 99,000,000 shares of common $0.0001 par value and 1,000,000 preferred stock $0.0001 par value of which, as of the date hereof, 4,230,000 shares of common stock and no shares of preferred stock are issued and outstanding (with an additional 1,155,000 reserved for issuance) and held of record solely by OWNERS. All such outstanding shares are validly issued, fully paid and non-assessable. Except as otherwise described herein, there are no other outstanding securities including options and warrants, and the 4,230,000 shares of common stock described above represent all of the ownership equity interests of ACQUIREE.

				

				(ii)       All securities issued by ACQUIREE as of the date of this Agreement have been issued in compliance with all applicable state and federal laws. Except as set forth in the financial statements of ACQUIREE no other equity securities or debt obligations of ACQUIREE are authorized, issued or outstanding.

		

		(c)       Subsidiaries. Except as set forth in the financial statements of ACQUIREE and in this section, ACQUIREE has no subsidiaries and no other investments, directly or indirectly, or other financial interest in any other corporation or business organization, joint venture or partnership of any kind whatsoever.

			

			(d)       Financial Statements. ACQUIREE will deliver to ACQUIROR, prior to Closing, a copy of the unaudited balance sheet and income statement of ACQUIREE for the year ended December 31, 2006 and the six months ended June 30, 2007, as certified by the President and Treasurer of ACQUIREE as true and complete (the “ACQUIREE FINANCIAL STATEMENTS”) and attached hereto and incorporated herein as Exhibit “C”.

			

			(e)       Absence of Undisclosed Liabilities. ACQUIREE has no liabilities which are not adequately reflected or reserved against in the ACQUIREE FINANCIAL STATEMENTS or otherwise reflected in this Agreement and ACQUIREE shall not have as of the Closing Date, any liabilities (secured or unsecured and whether accrued, absolute, direct, indirect or otherwise) which were incurred after the date of this Agreement and would be individually or in the aggregate, material to the results of operations or financial condition of ACQUIREE as of the Closing Date.

			

			(f)       Litigation. Except as disclosed in the ACQUIREE FINANCIAL STATEMENTS, there are no (i) outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against OWNERS, ACQUIREE or their properties, and there are no (ii) actions, suits or proceedings pending, or, to the knowledge of OWNERS or ACQUIREE, threatened against or affecting OWNERS or ACQUIREE, any of their officers, employees or directors relating to their positions as such, or any of their properties, at law or in equity, or before or by any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, in connection with the business, operations or affairs of ACQUIREE which might result in any material adverse change in the operations or financial condition of ACQUIREE, or which might prevent or materially impede the consummation of the transactions under this Agreement.

			

			(g)       Compliance with Laws. To the best of their knowledge, the operations and affairs of ACQUIREE do not violate any law, ordinance, rule or regulation currently in effect, or any order, writ, injunction or decree of any court or governmental agency, the violation of which would substantially and adversely affect the business, financial conditions or operations of ACQUIREE.

			

			(h)       Absence of Certain Changes. Except as set forth in the ACQUIREE FINANCIAL STATEMENTS or otherwise disclosed in writing to ACQUIROR, since the date of this Agreement:

		

		
			(i)       ACQUIREE has not entered into any material transaction;

			

		

		

		

		

		

		

		

		

		

		

		
			(ii)       There has been no change in financial or other condition, business, property, prospects, assets or liabilities of ACQUIREE as shown on the ACQUIREE FINANCIAL STATEMENTS, other than changes that both individually and in the aggregate do not have a consequence that is materially adverse to such condition, business, property, prospects, assets or liabilities;

				

				(iii)       There has been no damage to, destruction of or loss of any of the properties or assets of ACQUIREE (whether or not covered by insurance) materially and adversely affecting the financial or other condition, business, property, prospects, assets or liabilities of ACQUIREE;

				

				(iv)       ACQUIREE has not declared, or paid any dividend or made any distribution on their capital stock or member interests, redeemed, purchased or otherwise acquired any of their capital stock or member interests, granted any options to purchase shares of their stock or member interests, or issued any shares of their capital stock or member interests;

				

				(v)       There has been no material change, except in the ordinary course of business, in the contingent obligations of ACQUIREE by way of guaranty, endorsement, indemnity, and warranty or otherwise;

				

				(vi)       There have been no loans made by ACQUIREE to its employees, officers or directors;

				

				(vii)       There have been no waivers or compromises by ACQUIREE of a valuable right or of a material debt owed to them;

				

				(viii)       There have been no extraordinary increases in the compensation of any of ACQUIREE employees, officers or directors;

				

				(ix)       There has been no agreement or commitment by ACQUIREE to do or perform any of the acts described in this Section 5.1(h); and

				

				(x)       There has been no other event or condition of any character, which might reasonably be expected either to result in a material and adverse change in the condition (financial or otherwise), business, property, prospects, assets or liabilities of ACQUIREE or to impair materially the ability of ACQUIREE to conduct the business now being conducted.

		

		(i)       Employees. There are, except as disclosed in the ACQUIREE FINANCIAL STATEMENTS no collective bargaining, bonus, profit sharing, compensation, or other plans, agreements or arrangements between ACQUIREE and any of its directors, officers or employees. Employee agreements will be supplied at the Closing.

			

			(j)       Assets. All of the assets reflected on the ACQUIREE FINANCIAL STATEMENTS or acquired and held as of the Closing Date, will be owned by ACQUIREE on the Closing Date.  ACQUIREE owns outright and have good and marketable title, or holds valid and enforceable leases, to all of such assets. None of ACQUIREE’s equipment used by ACQUIREE in connection with its business has any material defects and all of them are in all material respects in good operating condition and repair, and are adequate for the uses to which they are being put; none of ACQUIREE’s equipment is in need of maintenance or repairs, except for ordinary, routine maintenance and repair. ACQUIREE represents that, except to the extent disclosed in or reserved against on the ACQUIREE FINANCIAL STATEMENTS, it is not aware of any accounts and contracts receivable existing that, in its judgment, would be uncollectible.

			

			(k)       Tax Matters. All federal, foreign, state and local tax returns, reports and information statements required to be filed by or with respect to the activities of ACQUIREE have been timely filed. On the date of this Agreement, ACQUIREE is not delinquent in the payment of any such tax or assessment, and no deficiencies for any amount of such tax have been proposed or assessed.

			

			(l)       Operating Authorities. To the best knowledge of OWNER and ACQUIREE, ACQUIREE has all material operating authorities, governmental certificates and licenses, permits, authorizations and approvals ("Permits") required to conduct its business as presently conducted.  During the period encompassed by the ACQUIREE FINANCIAL STATEMENTS, there have not been any notice or adverse development regarding such Permits; such Permits 

			

			

		

		

		

		

		

		

		

		are in full force and effect; no material violations are or have been recorded in respect of any permit; and no proceeding is pending or threatened to revoke or limit any Permit.

		

		(m)       Continuation of Key Management. To the best knowledge of ACQUIREE, all key management personnel of ACQUIREE do not intend to continue their employment with ACQUIREE after the Closing.

		

		(n)       Books and Records. The books and records of ACQUIREE are complete and correct, are maintained in accordance with good business practice and accurately present and reflect, in all material respects, all of the transactions therein described, and there have been no transactions involving ACQUIREE which properly should have been set forth therein and which have not been accurately so set forth.

		

		(o)       Authority to Execute Agreement. The Board of Directors of ACQUIREE, pursuant to the power and authority legally vested in them, have duly authorized the execution and delivery by ACQUIREE of this Agreement, and have duly authorized each of the transactions hereby contemplated. ACQUIREE has the power and authority to execute and deliver this Agreement, to consummate the transactions hereby contemplated and to take all other actions required to be taken by it pursuant to the provisions hereof. ACQUIREE has taken all actions required by law, its Articles of Incorporation and By-Laws, as amended, the respective partnership or operating agreements of any joint venture in which ACQUIREE owns an interest, or otherwise to authorize the execution and delivery of this Agreement. This Agreement is valid and binding upon ACQUIREE and the OWNERS in accordance with its terms. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will constitute a violation or breach of the Articles of Incorporation, as amended, or the Bylaws, as amended, or the partnership or operating agreements of any joint venture in which ACQUIREE owns an interest, as the case may be, of ACQUIREE, or any agreement, stipulation, order, writ, injunction, decree, law, rule or regulation applicable to ACQUIREE.

		

		(p)       Finder's Fees. Both ACQUIREE and OWNERS have not paid, and on the Closing Date will not be liable or obligated to pay, any finder's, agent's or broker's fee arising out of or in connection with this Agreement or the transactions contemplated by this Agreement.

		

		5.2       Disclosure. At the date of this Agreement, ACQUIREE and the OWNERS, and at the Closing Date they will have, disclosed all events, conditions and facts materially affecting the business and prospects of ACQUIREE. ACQUIREE and OWNERS have not now and will not have at the Closing Date, withheld knowledge of any such events, conditions or facts which they know, or have reasonable grounds to know, may materially affect ACQUIREE business and prospects. Neither this Agreement nor any certificate, exhibit, schedule or other written document or statement, furnished to ACQUIROR by ACQUIREE and/or by OWNERS in connection with the transactions contemplated by this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to be stated in order to make the statements contained herein or therein not misleading.

		

		

		Section 6

		REPRESENTATIONS AND WARRANTIES BY ACQUIROR AND HYBRID

		

		6.1       Subject to the schedule of exceptions, attached hereto and incorporated herein by this reference, (which schedules shall be acceptable to OWNERS), ACQUIROR and HYBRID represent and warrant to ACQUIREE and the OWNERS as follows:

		

		(a)       Organization and Good Standing. ACQUIROR and HYBRID are each currently a corporation duly organized, validly existing and in good standing under the laws of the States of Utah and Nevada, respectively, and have full corporate power and authority to own or lease their properties and to carry on their business as now being conducted and as proposed to be conducted. ACQUIROR and HYBRID are qualified to conduct business as foreign corporations in no other jurisdiction, and the failure to so qualify in any other jurisdiction does not materially, adversely affect the ability of ACQUIROR and HYBRID to carry on their business as most recently conducted. The Articles of Incorporation of ACQUIROR and HYBRID and all amendments thereto as presently in effect, and the Bylaws of ACQUIROR and HYBRID as presently in effect, both of which shall be certified by the Secretary of ACQUIROR and HYBRID. respectively, have been delivered to OWNERS and are complete and correct and since the date of such delivery, there has been no amendment, modification or other change thereto.

		

		

		

		

		

		

		

		

		

		(b)       Capitalization. HYBRID'S authorized capital stock consists of (i) 99,000,000 shares of $0.00015 par value common stock of which 257,933 are outstanding as of the date of this Agreement, (ii) 340,000 shares of $0.0001 par value preferred stock of which no shares are issued and outstanding and (iii) 660,000 shares of Series A Preferred Stock of which no shares are issued and outstanding as of the date of this Agreement. No other equity securities or debt obligations of HYBRID are authorized, issued or outstanding. The EXCHANGE SHARES are free and clear of all liens, charges, claims, pledges, restrictions and encumbrances whatsoever of any kind or nature that would inhibit, prevent or otherwise interfere with the transactions contemplated hereby. All of the outstanding shares of HYBRID’s common stock are validly issued, fully paid and non-assessable and there are no voting trust agreements or other contracts, agreements or arrangements restricting or affecting voting or dividend rights or transferability with respect to the outstanding shares of HYBRID.

		

		(c)       Issuance of EXCHANGE SHARES. All of the EXCHANGE SHARES to be issued to or transferred to OWNERS pursuant to this Agreement, when issued, transferred and delivered as provided herein, will be duly authorized, validly issued, fully paid and non-assessable, and will be free and clear of all liens, charges, claims, pledges, restrictions and encumbrances whatsoever of any kind or nature, except those restrictions imposed by State or Federal corporate and securities regulations.

		

		(d)       No Violation. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby nor compliance by ACQUIROR with any of the provisions hereof will:

		
			(i)       Violate or conflict with, or result in a breach of any provisions of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, any of the terms, conditions or provisions of the Articles of Incorporation or Bylaws of ACQUIROR or HYBRID or any note, bond, mortgage, indenture, deed of trust, license, agreement or other instrument to which ACQUIROR or HYBRID is a party, or by which they or their properties or assets may be bound or affected; or

				

				(ii)       Violate any order, writ, injunction or decree, or any statute, rule, permit, or regulation applicable to ACQUIROR or HYBRID or any of their properties or assets.

		

		(e)       Subsidiaries. ACQUIROR has no subsidiaries and no investments, directly or indirectly, or other financial interest in any other corporation or business organization, joint venture or partnership of any kind whatsoever.

			

			(f)       Absence of Certain Changes. Since June 30, 2007, there has been no material change in either ACQUIROR's or HYBRID’s financial conditions, assets or liabilities.

			

			(g)       Absence of Undisclosed Liabilities. Neither ACQUIROR nor HYBRID had, as of the Closing Date, any liabilities (secured or unsecured and whether accrued, absolute, direct, indirect or otherwise) which were incurred after June 30, 2007 and would be individually or in the aggregate, material to the results of operation or financial condition of ACQUIROR or HYBRID.

			

			(h)       Litigation. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against ACQUIROR or HYBRID or their properties. There are no actions, suits or proceedings pending, or, to the knowledge of ACQUIROR or HYBRID, threatened against or relating to ACQUIROR or HYBRID. ACQUIROR is not, and on the Closing Date will not be, in default under or with respect to any judgment, order, writ, injunction or decree of any court or of any federal, state, municipal or other governmental authority, department, commission, board, agency or other instrumentality; and ACQUIROR and HYBRID have, and on the Closing Date will have, complied in all material respects with all laws, rules, regulations and orders applicable to them, if any.

			

			(i)       Contracts. Neither ACQUIROR nor HYBRID is not a party to any written or oral commitment for capital expenditures except as contemplated by this Agreement. Neither ACQUIROR nor HYBRID is not a party to, nor is its property bound by any written or oral, express or implied, agreement, contract or other contractual obligation including, without limitation, any real or personal property leases, any employment agreements, any consulting agreements any personal services agreements or any other agreements that require ACQUIROR or HYBRID to pay any money or deliver any assets or services. ACQUIROR and HYBRID have in all material respects performed all obligations required to be performed by them to date and are not in default in any material respect under any agreements or other documents to which they are a party.

			

			

			

		

		

		

		

		

		

		

		(j)       Tax Matters. All federal, foreign, state and local tax returns, reports and information statements required to be filed by or with respect to the activities of ACQUIROR and HYBRID have been filed for all the years and periods for which such returns and statements were due, including extensions thereof. Such returns, reports and information statements are true and correct in all material respects insofar as they relate to the activities of ACQUIROR and HYBRID. On the date of this Agreement, ACQUIROR and HYBRID are not delinquent in the payment of any such tax or assessment, and no deficiencies for any amount of such tax have been proposed or assessed. Any tax sharing agreement among or between ACQUIROR, HYBRID and any affiliate thereof shall be terminated as of the Closing Date.

		

		(k)       Authority to Execute Agreement. The Boards of Directors of ACQUIROR and HYBRID, pursuant to the power and authority legally vested in them, have duly authorized the execution and delivery by ACQUIROR and HYBRID of this Agreement and the EXCHANGE SHARES, and have duly authorized each of the transactions hereby contemplated. ACQUIROR and HYBRID have the power and authority to execute and deliver this Agreement, to consummate the transactions hereby contemplated and to take all other actions required to be taken by them pursuant to the provisions hereof. ACQUIROR and HYBRID have taken all the actions required by law, their Certificates of Incorporation, as amended, their Bylaws, as amended, applicable state law or otherwise to authorize the execution and delivery of the EXCHANGE SHARES pursuant to the provisions hereof. This Agreement is valid and binding upon ACQUIROR and HYBRID in accordance with its terms.

		

		(l)       Finder's Fees. ACQUIROR and HYBRID are not, and on the Closing Date, will not be liable or obligated to pay any finder's, agent's or broker's fee arising out of or in connection with this Agreement or the transactions contemplated by this Agreement.

		

		(m)       Books and Records. The books and records of ACQUIROR and HYBRID are complete and correct, are maintained in accordance with good business practice and accurately present and reflect in all material respects, all of the transactions therein described and there have been no transactions involving ACQUIROR or HYBRID which properly should have been set forth therein and which have not been accurately so set forth.

		

		6.2       Disclosure. ACQUIROR and HYBRID have and at the Closing Date it will have, disclosed all events, conditions and facts materially affecting the business and prospects of ACQUIROR and HYBRID. ACQUIROR and HYBRID have not now and will not have at the Closing Date, withheld knowledge of any such events, conditions and facts which it knows, or has reasonable grounds to know, may materially affect ACQUIROR's or HYBRID’s business and prospects. Neither this Agreement, nor any certificate, exhibit, schedule or other written document or statement, furnished to ACQUIREE or the OWNERS by ACQUIROR in connection with the transactions contemplated by this Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to be stated in order to make the statements contained herein or therein not misleading.

		

		

		Section 7

		ACCESS AND INFORMATION

		

		7.1       As to ACQUIREE. Subject to the confidentiality protections provided by subsection 10.4 herein, ACQUIREE shall give to ACQUIROR and to ACQUIROR'S counsel, accountants and other representatives full access during normal business hours throughout the period prior to the Closing, to all of ACQUIREE properties, books, contracts, commitments, and records, including information concerning products and customer base, and patents held by, or assigned to, ACQUIREE, and furnish ACQUIROR during such period with all such information concerning ACQUIREE affairs as ACQUIROR reasonably may request.

		

		7.2       As to ACQUIROR. Subject to the confidentiality protections provided by subsection 10.4 herein, ACQUIROR shall give to ACQUIREE, the OWNERS and their counsel, accountants and other representatives, full access, during normal business hours throughout the period prior to the Closing, to all of ACQUIROR's properties, books, contracts, commitments, and records, if any, and shall furnish ACQUIREE and the OWNERS during such period with all such information concerning ACQUIROR's affairs as ACQUIREE and the OWNERS reasonably may request.

		

		

		

		

		

		

		

		

		

		Section 8

		COVENANTS OF ACQUIREE AND OWNER

		

		8.1       No Solicitation. For a period of ninety (90) days from the date of this Agreement, ACQUIREE and the OWNERS will use their best efforts to cause their respective officers, employees, agents and representatives not, directly or indirectly, to solicit, encourage, or initiate any discussions with, or indirectly to solicit, encourage, or initiate any discussions with, to, any person or entity other than ACQUIROR and its officers, employees, and agents, concerning any merger, sale of substantial assets, or similar transaction involving ACQUIREE, or any sale of any of their common stock or member interests or of the common stock or member interests held by such OWNERS except as otherwise disclosed in this Agreement. ACQUIREE will notify ACQUIROR immediately upon receipt of an inquiry, offer, or proposal relating to any of the foregoing. None of the foregoing shall prohibit providing information to others in a manner in keeping with the ordinary conduct of ACQUIREE business, or providing information to government authorities.

		

		8.2       Conduct of Business Pending the Transaction. ACQUIREE and the OWNERS, to the extent within their control, covenant and agree with ACQUIROR that, prior to the consummation of the transaction called for by this Agreement, and Closing, or the termination of this Agreement pursuant to its terms, unless ACQUIROR shall otherwise consent in writing, and except as otherwise contemplated by this Agreement, ACQUIREE and the OWNERS, to the extent within their control, will comply with each of the following:

		

		(a)       ACQUIREE’S business shall be conducted only in the ordinary and usual course. ACQUIREE shall use reasonable efforts to keep intact their business organization and good will, keep available the services of their respective officers and employees, and maintain good relations with suppliers, creditors, employees, customers, and others having business or financial relationships with them, and they shall immediately notify ACQUIROR of any event or occurrence which is material to, and not in the ordinary and usual course of business of ACQUIREE.

		

		(b)       They shall not (i) amend the ACQUIREE’S Articles of Incorporation or Bylaws, (ii) split, combine, or reclassify any of ACQUIREE’S outstanding securities, or declare, set aside, or pay any dividend or other distribution on, or make or agree or commit to make any exchange for or redemption of any such securities payable in cash, stock or property.

		

		(c)       ACQUIREE shall not (i) issue or agree to issue any additional securities or rights of any kind to acquire any securities, or (ii) enter into any contract, agreement, commitment, or arrangement with respect to any of the foregoing, except as set forth in this Agreement.

		

		(d)       ACQUIREE shall not create, incur, or assume any long-term or short-term indebtedness for money borrowed or make any capital expenditures or commitment for capital expenditures, except in the ordinary course of business and consistent with past practice.

		

		(e)       ACQUIREE shall not (i) adopt, enter into, or amend any bonus, profit sharing, compensation, stock option, warrant, pension, retirement, deferred compensation, employment, severance, termination or other employee benefit plan, agreement, trust fund, or arrangement for the benefit or welfare of any officer, director, or employee, or (ii) agree to any material (in relation to historical compensation) increase in the compensation payable or to become payable to, or any increase in the contractual term of employment of, any officer, director or employee except, with respect to employees who are not officers or directors, in the ordinary course of business in accordance with past practice, or with the written approval of ACQUIROR.

		

		(f)       ACQUIREE shall not sell lease, mortgage, encumber, or otherwise dispose of or grant any interest in any of its assets or properties except for: (i) sales, encumbrances, and other dispositions or grants in the ordinary course of business and consistent with past practice; (ii) liens for taxes not yet due; (iii) liens or encumbrances that are not material in amount or effect and do not impair the use of the property, or (iv) as specifically provided for or permitted in this Agreement.

		

		(g)       ACQUIREE shall not enter into any agreement, commitment, or understanding, whether in writing or otherwise, with respect to any of the matters referred to in subparagraphs (a) through (f) above.

		

		

		

		

		

		

		

		

		

		(h)       ACQUIREE will continue properly and promptly to file when due all federal, state, local, foreign, and other tax returns, reports, and declarations required to be filed by it, and will pay, or make full and adequate provision for the payment of, all taxes and governmental charges due from or payable by it.

		

		(i)       ACQUIREE will comply with all laws and regulations applicable to it and its operations.

		

		

		Section 9

		COVENANTS OF ACQUIROR AND HYBRID

		

		9.1       No Solicitation. For a period of ninety (90) days from the date of this Agreement, ACQUIROR will not discuss or negotiate with any other corporation, firm or other person or entertain or consider any inquiries or proposals relating to the possible disposition of its shares of capital stock, or its assets, and will conduct business only in the ordinary course. Notwithstanding the foregoing, ACQUIROR shall be free to engage in activities mentioned in the preceding sentence, which are designed to further the mutual interests of the parties to this Agreement.

		

		9.2       Conduct of ACQUIROR Pending Closing. ACQUIROR and HYBRID covenant and agree with OWNERS that, prior to the consummation of the transactions called for by this Agreement, and Closing, or the termination of this Agreement pursuant to its terms, unless OWNERS shall otherwise consent in writing, and except as otherwise contemplated by this Agreement, ACQUIROR and HYBRID will comply with each of the following.

		

		(a)       No change will be made in ACQUIROR's or HYBRID’s Articles of Incorporation or Bylaws, except for a name change, or in ACQUIROR's or HYBRID’s  authorized or issued shares of stock, except as contemplated in this Agreement or as may be first approved in writing by ACQUIREE.

		

		(b)       No dividends shall be declared, no stock options granted and no employment agreements shall be entered into with officers or directors in ACQUIROR or HYBRID, except as may be first approved in writing by ACQUIREE.

		

		(c)       They shall not (i) issue or agree to issue any additional shares of, or rights of any kind to acquire any shares of their capital stock of any class, or (ii) enter into any contract, agreement, commitment, or arrangement with respect to any of the foregoing, except as set forth in this Agreement.

		

		(d)       They shall not create, incur, or assume any long-term or short-term indebtedness for money borrowed or make any capital expenditures or commitment for capital expenditures, except in the ordinary course of business and consistent with past practice.

		

		(e)       They shall not (i) adopt, enter into, or amend any bonus, profit sharing, compensation, stock option, warrant, pension, retirement, deferred compensation, employment, severance, termination or other employee benefit plan, agreement, trust fund, or arrangement for the benefit or welfare of any officer, director, or employee, or (ii) agree to any material (in relation to historical compensation) increase in the compensation payable or to become payable to, or any increase in the contractual term of employment of, any officer, director or employee except, with respect to employees who are not officers or directors, in the ordinary course of business in accordance with past practice, or with the written approval of ACQUIREE.

		

		(f)       They shall not sell lease, mortgage, encumber, or otherwise dispose of or grant any interest in any of their assets or properties except for: (i) sales, encumbrances, and other dispositions or grants in the ordinary course of business and consistent with past practice; (ii) liens for taxes not yet due; (iii) liens or encumbrances that are not material in amount or effect and do not impair the use of the property, or (iv) as specifically provided for or permitted in this Agreement.

		

		(g)       They shall not enter into any agreement, commitment, or understanding, whether in writing or otherwise, with respect to any of the matters referred to in subparagraphs (a) through (f) above.

		

		(h)       They will continue properly and promptly to file when due all federal, state, local, foreign, and other tax returns, reports, and declarations required to be filed by them, and will pay, or make full and adequate provision for the payment of, all taxes and governmental charges due from or payable by them.

		

		(i)       They will comply with all laws and regulations applicable to them and their operations.

		

		

		

		

		

		

		

		

		

		Section 10

		ADDITIONAL COVENANTS OF THE PARTIES

		

		10.1      Cooperation. Each of OWNERS, ACQUIREE, HYBRID and ACQUIROR will cooperate with each other and their respective counsel, accountants and agents in carrying out the transaction contemplated by this Agreement, and in delivering all documents and instruments deemed reasonably necessary or useful by the other party

		

		10.2      Expenses. Each of the parties hereto shall pay all of its respective costs and expenses (including attorneys' and accountants' fees, costs and expenses) incurred in connection with this Agreement and the consummation of the transactions contemplated herein.

		

		10.3      Publicity. Prior to the Closing, any written news releases or public disclosure by either party pertaining to this Agreement shall be submitted to the other party for its review and approval prior to such release or disclosure, provided, however, that (a) such approval shall not be unreasonably withheld, and (b) such review and approval shall not be required of disclosures required to comply, in the judgment of counsel, with federal or state securities or corporate laws or policies.

		

		10.4      Confidentiality. While each party is obligated to provide access to and furnish information in accordance with Section 6 herein, it is understood and agreed that such disclosure and information subsequently obtained as a result of such disclosures are proprietary and confidential in nature.  Each party agrees to hold such information in confidence and not to reveal any such information to any person who is not a party to this Agreement, or an officer, director or key employee thereof, and not to use the information obtained for any purpose other than assisting in its due diligence inquiry in conjunction with the transaction contemplated by this Agreement. Upon request of any party, a confidentiality agreement, acceptable to the disclosing party, will be executed by any person selected to receive such proprietary information, prior to receipt of such information.

		

		

		Section 11

		NON-SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS

		

		11.1      None of the representations, warranties, covenants and other agreements in this Agreement or in any instrument delivered pursuant to this Agreement, including any rights arising out of any breach of such representations, warranties, covenants, agreements and other provisions, shall survive the Closing, except for those covenants, agreements and other provisions contained herein that by their terms apply or are to b performed in whole or in part after the Closing and this Section 11.

		

		

		Section 12

		CONDITIONS PRECEDENT TO OBLIGATIONS OF PARTIES

		

		12.1      Conditions to Obligations of the Parties. The obligations of ACQUIROR, ACQUIREE and OWNERS under this Agreement shall be subject to the fulfillment, on or prior to the Closing, of all conditions elsewhere herein set forth, including, but not limited to, receipt by the appropriate party of all deliveries required by Sections 4.3(a), (b) and (c) herein, and fulfillment, prior to Closing, of each of the following conditions:

		

		(a)       All representations and warranties made by ACQUIREE, OWNERS and ACQUIROR in this Agreement shall be true and correct in all material respects on and as of the Closing Date with the same effect as if such representations and warranties had been made on and as of the Closing Date.

		

		(b)       ACQUIREE, OWNERS and ACQUIROR shall have performed or complied with all covenants, agreements and conditions contained in this Agreement on their part required to be performed or complied with at or prior to the Closing.

		

		(c)       All material authorizations, consents or approvals of any and all governmental regulatory authorities necessary in connection with the consummation of the transactions contemplated by this Agreement shall have been obtained and be in full force and effect.

		

		

		

		

		

		

		

		

		

		(d)       The Closing shall not violate any permit or order, decree or judgment of any court or governmental body having competent jurisdiction and there shall not have been instituted any legal or administrative action or proceeding to enjoin the transaction contemplated hereby or seeking damages from any party with respect thereto.

		

		12.2      Conditions to Obligations of ACQUIROR. The obligations of ACQUIROR to consummate the transactions contemplated herein are subject to satisfaction (or waiver by it) of the following conditions:

		

		(a)       OWNERS will be required, at Closing, to submit an agreement confirming that all the EXCHANGE SHARES received will be acquired for investment and not with a view to, or for sale in connection with, any distribution thereof, and agreeing not to transfer any of the EXCHANGE SHARES for a period of two years from the date of the Closing, except for those transfers falling within the exemption from registration under the Securities Act of 1933 and any applicable state securities laws, which transfers do not constitute a public distribution of securities, and in which the transferees execute an investment letter in form and substance as set forth on Exhibit “F” hereto. The foregoing provision shall not prohibit the registration of those shares at any time following the Closing. OWNERS will be required to transfer to ACQUIROR at the Closing their respective ACQUIREE SHARES Stock Certificate(s), free and clear of all liens, mortgages, pledges, encumbrances or changes, whether disclosed or undisclosed.

		

		(b)      All schedules, prepared by ACQUIREE shall be current or updated as necessary as of the Closing Date.

		

		(c)      ACQUIREE shall have provided to ACQUIROR the ACQUIREE FINANCIAL STATEMENTS together with an update on any material change in the aforementioned financial statements.

		

		(d)      Each party shall have satisfied itself that since the date of this Agreement the business of the other party has been conducted in the ordinary course. In addition, each party shall have satisfied itself that no withdrawals of cash or other assets have been made and no indebtedness has been incurred since the date of this Agreement, except in the ordinary course of business or with respect to services rendered or expenses incurred in connection with the Closing of this Agreement, unless said withdrawals or indebtedness were either authorized by the terms of this Agreement or subsequently consented to in writing by the parties.

		

		(e)      Each party covenants that, to the best of its knowledge, it has complied or will comply in all material respects with all applicable laws, orders and regulations of federal, state, municipal and/or other governments and/or any instrumentality thereof, domestic or foreign, applicable to their assets, to the business conducted by them and to the transactions contemplated by this Agreement.

		

		12.3      Conditions to Obligation of ACQUIREE and OWNERS.  The obligations of ACQUIREE and OWNER to consummate the transactions contemplated herein are subject to satisfaction (or waiver by them) of the following conditions:

		

		(a)       ACQUIROR shall have provided to ACQUIREE through June 30, 2007, all unaudited financial statements prepared in accordance with generally accepted accounting principles of ACQUIROR and HYBRID together with an update on any material change in the aforementioned financial statements.

		

		(b)       Each party shall have granted to the other party (acting through its management personnel, counsel, accountants or other representatives designated by it) full opportunity to examine its books and records, properties, plants and equipment, proprietary rights and other instruments, rights and papers of all kinds, and each party shall be satisfied to proceed with the transactions contemplated by this Agreement upon completion of such examination and investigation.

		

		(c)       ACQUIROR and ACQUIREE shall agree to indemnify each other party against any liability to any broker or finder to which that party may become obligated.

		

		(d)       The EXCHANGE shall be approved by the Board of Directors of each of OWNERS, ACQUIREE, HYBRID and ACQUIROR. Furthermore, the EXCHANGE shall be approved by the shareholders of OWNERS and of ACQUIROR, if deemed necessary or appropriate by counsel for the same, within sixty (60) days following execution of this Agreement. If such a meeting is deemed necessary, the management of OWNERS and

		

		

		

		

		

		

		

		

		

		ACQUIROR agree to recommend approval to their respective Shareholders and to solicit proxies in support of the same.

		

		(e)       ACQUIRO and OWNERS and their respective legal counsel shall have received copies of all such certificates, opinions and other documents and instruments as each party or its legal counsel may reasonably request pursuant to this Agreement or otherwise in connection with the consummation of the transactions contemplated hereby, and all such certificates, opinions and other documents and instruments received by each party shall be reasonably satisfactory, in form and substance, to each party and its legal counsel.

		

		(f)       Both ACQUIROR and OWNERS shall have the right to waive any or all of the conditions precedent to their obligations hereunder not otherwise legally required; provided, however, that no waiver by a party of any condition precedent to its obligations hereunder shall constitute a waiver by such party of any other condition.

		

		

		Section 13

		TERMINATION, AMENDMENT, WAIVER

		

		13.1      This Agreement may be terminated at any time prior to the Closing, and the contemplated transactions abandoned, without liability to either party, except with respect to the obligations of ACQUIROR, ACQUIREE and OWNERS under Section 10.4 hereof:

		

		(a)       By mutual agreement of ACQUIROR and OWNERS;

		

		(b)       If the Closing (as defined in Section 4) has not have taken place on or prior to August 31, 2007, this Agreement can be terminated upon written notice given by ACQUIROR or OWNERS which is not in material default;

		

		(c)       By ACQUIROR, if in its reasonable belief there has been a material misrepresentation or breach of warranty on the part of any OWNER in the representations and warranties set forth in the Agreement.

		

		(d)       By OWNERS if, in the reasonable belief of OWNERS there has been a material misrepresentation or breach of warranty on the part of ACQUIROR in the representations and warranties set forth in the Agreement;

		

		(e)       By ACQUIROR if, in its opinion or that of its counsel, the EXCHANGE does not qualify for exemption from registration under applicable federal and state securities laws, or qualification, if obtainable, cannot be accomplished in ACQUIROR'S opinion or that of its counsel, without unreasonable expense or effort;

		

		(f)       By ACQUIROR or by OWNERS if either party shall determine in its sole discretion that the EXCHANGE has become inadvisable or impracticable by reason of the institution or threat by state, local or federal governmental authorities or by any other person of material litigation or proceedings against any party (it being understood and agreed that a written request by a governmental authority for information with respect to the Exchange, which information could be used in connection with such litigation or proceedings, may be deemed to be a threat of material litigation or proceedings regardless of whether such request is received before or after the signing of this Agreement);

		

		(g)       By ACQUIROR if the business or assets or financial condition of ACQUIREE, taken as a whole, has been materially and adversely affected, whether by the institution of litigation or by reason of changes or developments or in operations in the ordinary course of business or otherwise; or, by OWNERS if the business or assets or financial condition of ACQUIROR and/or HYBRID, taken as a whole, has been materially and adversely affected, whether by the institution of litigation or by reason of changes or developments or in operations in the ordinary course of business or otherwise;

		

		(h)       By ACQUIROR or OWNERS if, in the opinion of ACQUIROR'S independent accountants, it should appear that the combined entity will not be auditable to SEC accounting standards;

		

		(i)       By OWNERS if ACQUIROR fails to perform material conditions set forth in sub-Section 12.1 and 12.3 herein;

		

		(j)       By OWNERs if examination of ACQUIROR's and/or HYBRID’s books and records pursuant to Section 6 herein uncovers a material deficiency;

		

		

		

		

		

		

		

		

		

		(k)       By ACQUIROR if either ACQUIREE or OWNERS fail to perform material conditions set forth in Sub-Section 12.1 and 12.2 herein; and

		

		(l)       By ACQUIROR if examination of ACQUIREE’S books and records pursuant to Section 5 herein uncovers a material deficiency.

		

		13.2      No modification or amendment of any provision of this Agreement shall be effective unless specifically made in writing and duly signed by the party to be bound.

		

		13.3      In the event of termination of this Agreement by either ACQUIROR or OWNERS as provided in Section 13.1, this Agreement shall forthwith become void and there shall be no liability or obligation on the part of any of the parties or their respective officers or directors except with respect to Section 10, which provisions shall survive such termination, and except that, notwithstanding anything to the contrary contained in this Agreement, neither ACQUIROR nor OWNERS shall be relieved or released from any liabilities or damages arising out of its willful and material breach of this Agreement.

		

		

		Section 14

		MISCELLANEOUS

		

		14.1      Entire Agreement. This Agreement (including the Exhibits and Schedules hereto) contains the entire agreement between the parties with respect to  the transactions contemplated hereby, and supersedes all negotiations, representations, warranties, commitments, offers, contracts, and writings prior to the date hereof. No waiver and no modification or amendment of any provision of this Agreement shall be effective unless specifically made in writing and duly signed by the party to be bound thereby.

		

		14.2      Binding Agreement.

		

		(a)       This Agreement shall become binding upon the parties when, but only when, it shall have been signed on behalf of all parties.

		

		(b)       Subject to the condition stated in subsection (a), above, this Agreement shall be binding upon, and inure to the benefit of, the respective parties and their legal representatives, successors and assigns.

		

		14.3      Counterparts. This Agreement may be executed in one or more counterparts, each of which may be deemed an original, but all of which together, shall constitute one and the same instrument.

		

		14.4      Severability. If any provisions hereof are to be held invalid or unenforceable by any court of competent jurisdiction or as a result of future legislative action, such holding or action shall be strictly construed and shall not affect the validity or effect or any other provision hereof.

		

		14.5      Assignability. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided that neither this Agreement nor any right hereunder shall be assignable by ACQUIREE or ACQUIROR without prior written consent of the other party.

		

		14.6      Captions. The captions of the various Sections of this Agreement have been inserted only for convenience of reference and shall not be deemed to modify, explain, enlarge or restrict any of the provisions of this Agreement.

		

		14.7      Governing Law. The validity, interpretation and effect of this Agreement shall be governed exclusively by the laws of the State of Nevada.

		

		14.8      Jurisdiction and Venue. Each party hereto irrevocably consents to the jurisdiction and venue of the state or federal courts located in the State of Nevada in connection with any action, suit, proceeding or claim to enforce the provisions of this Agreement, to recover damages for breach of or default under this Agreement, or otherwise arising under or by reason of this Agreement. The prevailing party may recover costs and reasonable attorney's fees.

		

		

		

		

		

		

		

		

		

		14.9      Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and delivered in person or sent by certified mail, postage prepaid and properly addressed as follows:

		

			
					IF TO ACQUIROR:

					
					IF TO ACQUIREE:

				
	
					PUKKA USA, Inc.

					
					INFOMAC CORPORATION

				
	
					892 North 340 East

					
					264 Union Blvd.

				
	
					American Fork, UT 84003

					
					Totowa, NJ 07424

				
	
					

					
					Fax: (973) 956-8424

				
	
					 

					
					

				
	
					IF TO HYBRID:

					
					IF TO OWNERS:

				
	
					Hybrid Dynamics Corporation

					
					To the address set forth in the

				
	
					892 North 340 East

					
					Respective Exhibit F for each Owner

				
	
					American Fork, UT 84003

					
					

				

		

		Any party may from time to time change its address for the purpose of notices to that party by a similar notice specifying a new address, but no such change shall be considered to have been given until it is actually received by the respective party hereto.

		

		All notices and other communications required or permitted under this Agreement which are addressed as provided in this Section 13.9 if delivered personally, shall be effective upon delivery; and, if delivered by mail, shall be effective three days following deposit in the United States mail, postage prepaid.

		

		IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date last written below.

		

			
					ACQUIROR:

							

						PUKKA USA, INC.

					

					
					

				
	
					  

					
					

				
	
					By: /s/ Paul Ressler                                  

					
					August 23, 2007       

				
	
					Name:  Paul Ressler

					
					Date

				
	
					Title: President

					
					

				
	
					  

					
					

				
	  	
	
					HYBRID:

							

						Hybrid Dynamics Corporation

					

					
					

				
	
					  

					
					

				
	
					By: /s/ Paul Ressler                                    

					
					August 23, 2007       

				
	
					Name:  Paul Ressler

					
					Date

				
	
					Title: President

					
					

				
	
					  

					
					

				
	  	
	
					ACQUIREE:

							

						

					

					
					

				
	
					INFOMAC CORPORATION

					
					

				
	
					  

					
					

				
	
					By: /s/ Christopher Giordano                      

					
					August 23, 2007       

				
	
					Name:  Christopher Giordano

					
					Date

				
	
					Title: President

					
					

				

		

		

		

		

		

		

		

		

		

		

			
					OWNERS:

							

						BIRCHWOOD CAPITAL ADVISORS, INC.

					

					
					

					
					

				
	
					By: /s/ Christopher Giordano                      

					
					August 23, 2007

					
					
						960,000 shares

					

				
	
					Name:  Paul Ressler

					
					Date

					
					
						Exchange Shares

					

				
	
					Title: President

					
					

					
					
						

					

				
	
					  

					
					

					
					
						

					

				
	  		
					

					

				
	
					HAMPTON BRIDGE ADVISORS LLC

					
					

					
					
						

					

				
	
					  

					
					

					
					
						

					

				
	
					By: /s/ Donna Clemente                              

					
					August 23, 2007

					
					
						200,000 shares

					

				
	
					Name:  Donna Clemente

					
					Date

					
					
						Exchange Shares

					

				
	
					Title: President

					
					

					
					
						

					

				
	
					  

					
					

					
					
						

					

				
	  		
	
					TRIDENT MERCHANT GROUP, INC.

					
					

					
					
						

					

				
	
					  

					
					

					
					
						

					

				
	
					By: /s/ Christopher Giordano                       

					
					August 23, 2007

					
					
						50,000 shares

					

				
	
					Name:  Christopher Giordano

					
					Date

					
					
						Exchange Shares

					

				
	
					Title: President

					
					

					
					
						

					

				
	
					  

					
					

					
					
						

					

				
	  		
	
					MID-ELM INVESTMENTS LTD LLC

					
					

					
					
						

					

				
	
					  

					
					

					
					
						

					

				
	
					By: /s/ John Rayl                                          

					
					August 23, 2007

					
					
						200,000 shares

					

				
	
					Name:  John Rayl

					
					Date

					
					
						Exchange Shares

					

				
	
					Title: PresidentUntitled Page

		

		

		

		EXHIBIT 10.2

			

		

		
			NON-EXCLUSIVE DISTRIBUTION AGREEMENT

				

			

		

		
			This Non-exclusive Distribution Agreement ("Agreement"), dated June 21, 2006 (the "Effective Date"), is entered into by and between MICROTRAK GPS, INC. ("Manufacturer"), a Nevada corporation with an address of 9109 LBJ Frwy, Ste 100, Dallas TX 75230, and TRIDENT MERCHANT GROUP, INC. ("Distributor"), a Nevada corporation having an address of P.O. Box 21147, Columbus, OH 43221.

				

			

		

		
			BACKGROUND

				

			

		

		
			Manufacturer is, inter alia, in the business of developing, manufacturing, distributing, and selling Products (as hereinafter defined), Distributor desires to market and distribute Products to manufacturers and sellers of motorcycles and motor scooters in the United States and elsewhere, and Manufacturer proposes to authorize Distributor to market and distribute Products upon and subject to the terms and conditions hereof.

				

			

		

		
			AGREEMENT

				

			

		

		
			Now, therefore, for and in consideration of the mutual agreements herein and other good, valuable, sufficient, and received consideration, Manufacturer and Distributor hereby agree as follows:

				

				1.        DEFINITIONS

				

				1.1      "Products" and "Product" shall mean all of and any one of those global positioning and related products for installation and/or use on motorcycles and motor scooters listed in Exhibit A attached hereto, including all derivatives, next generation models and related accessories, as such products may be added to or abandoned by Manufacturer in Manufacturer's sole discretion from time to time during the term of this Agreement.

				

				1.2      "Manufacturer Marks" shall mean those copyrights, trademarks, tradenames, and servicemarks listed in Exhibit B attached hereto, as such copyrights, trademarks, tradenames, and servicemarks may be added to or removed by Manufacturer in Manufacturer's sole discretion from time to time during the term of this Agreement.

				

				1.3      "Sale," "Selling," and "Purchase" of Products shall mean the sale or selling of physical Products, including all licenses on which Products are based, and the purchase of physical Products, including all licenses on which Products are based.

				

				1.4      "Territory" shall mean the United States of America, and elsewhere.

				

				1.5      “Term” shall mean the period beginning May ___, 2006 and ending on May ___, 2009.

				

				2.        APPOINTMENT

				

				2.1      Appointment of Distributor. Conditioned upon Distributor's continued satisfaction of the terms and conditions of this Agreement, Manufacturer hereby appoints Distributor, and Distributor hereby accepts appointment, as Manufacturer's non-exclusive distributor for the Products to customers in 

				

				

				

			

		

		
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			the Territory. Distributor shall not reproduce or sell Products, and Distributor shall not license or distribute Products, except as expressly set forth in this Agreement.  Distributor shall not offer for sale, sell, license, or otherwise distribute Products acquired from any entity other than directly from Manufacturer without the prior written approval of Manufacturer.

			

			2.2      Distribution outside the Territory. Distributor shall limit its sales activities with respect to Products to customers located in the Territory, and shall refrain from marketing, licensing, or selling Products outside of the Territory without the prior written consent of Manufacturer. In the event that any of Distributor’s customers within the Territory have locations outside the Territory, Distributor shall not be prohibited from selling Products to its customers for shipment to, or who otherwise redistribute the Products, outside the Territory.

			

			2.3      Appointment of Subdistributors. Distributor may appoint subdistributors (any one, "Subdistributor") to act on Distributor's behalf only with the prior written consent of Manufacturer. Any compensation due to any Subdistributor shall be solely the Distributor's responsibility. Any agreement with any Subdistributor with respect to Products shall be coterminous with this Agreement.  Manufacturer shall not engage in any business activities with any Subdistributor without the prior written consent of Distributor.

			

			2.4      Independent Contractor Status. The relationship of Manufacturer and Distributor established by this Agreement shall be that of independent contractors, and neither shall be an employee, agent, partner, or joint venturer of or with the other. Distributor shall not be considered an agent or legal representative of Manufacturer for any purpose, and neither Distributor nor any director, officer, agent, or employee of Distributor shall be an agent or employee of Manufacturer. Manufacturer shall not be considered an agent or legal representative of Distributor for any purpose, and neither Manufacturer nor any director, officer, agent, or employee of Manufacturer shall be an agent or employee of Distributor. Distributor is not granted and shall not exercise the right or authority to assume or create any obligation or responsibility on behalf of or in the name of Manufacturer, and Manufacturer is not granted and shall not exercise the right or authority to assume or create any obligation or responsibility on behalf of or in the name of Distributor.

			

			2.5      Operations and Expenses. The detailed operations of Distributor under this Agreement shall be subject to the sole control and management of Distributor. Distributor shall be responsible for all of its own expenses and employees. Distributor shall provide, at its own expense, such office space and facilities, and hire and train such personnel, as may be required to carry out its obligations under this Agreement. Distributor shall incur no expense chargeable to Manufacturer without the prior written consent of Manufacturer.

			

			2.6      No Other Rights. Except as expressly provided in this Agreement, no right, title, or interest is granted by Manufacturer to Distributor. No right, title, or interest is granted by Manufacturer to Distributor relating to products other than the Products and other than as to the Territory. Notwithstanding Section 2.1 above, Manufacturer reserves the right to sell and

			

			

			

		

		
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			distribute Products directly or indirectly through any distributor or distributors (in addition to Distributor) to any customers within or outside the Territory.

			

			2.7      No Conflicts. Distributor represents and warrants that, as of the Effective Date, Distributor is not involved, directly or indirectly, in any activities ("Competing Activities") involving products which compete or have the potential to compete with Products, including without limitation the distribution of competing product lines. If Distributor becomes involved in any Competing Activities, Distributor shall promptly inform Manufacturer of such involvement, and Manufacturer shall have, in addition to all other remedies to which Manufacturer may be entitled, the right to terminate this Agreement without liability at any time thereafter pursuant to Section 13.2.

			

			2.8      Assignment and Assumption.  Distributor may not assign this Agreement without the prior written consent of Manufacturer.

			

			3.        LICENSE OF MANUFACTURER MARKS

			

			3.1      License. Subject to the terms and conditions of this Agreement, Manufacturer grants to Distributor a non-transferable, revocable license, without right of sublicense, to use the Manufacturer Marks in the Territory solely in connection with the sale, distribution, and advertisement of  Products. Distributor shall not use the Manufacturer Marks except as expressly permitted herein.  Notwithstanding the foregoing, in the event that Distributor appoints any Subdistributor in accordance with Section 2.3 hereof, Manufacturer shall be deemed to have consented to and approved the sublicense of the Manufacturer Marks hereunder to such Subdistributors.

			

			3.2      Restrictions. All representations of the Manufacturer Marks that Distributor intends to use shall first be submitted to Manufacturer for written approval of design, color, and other details, or shall be exact copies of those provided by Manufacturer.  Distributor shall fully comply with all guidelines communicated by Manufacturer concerning the use of the Manufacturer Marks. Distributor shall not alter or remove the Manufacturer Marks affixed to Products by Manufacturer, nor affix the Manufacturer Marks to any Product. Except as set forth in this Article 3, nothing contained in this Agreement shall grant or shall be deemed to grant to Distributor any right, title, or interest in or to the Manufacturer Marks. All uses of the Manufacturer Marks shall inure solely to the benefit of Manufacturer, and Distributor shall obtain no rights with respect to any of the Manufacturer Marks, and Distributor hereby irrevocably assigns to Manufacturer all right, title, and interest held by Distributor, if any, in or to any of the Manufacturer Marks. At no time during or after the Term shall Distributor challenge or assist others in challenging the Manufacturer Marks or the registration thereof or attempt to register any trademarks, service marks, marks, or trade names confusingly similar to the Manufacturer Marks. Upon any termination of this Agreement, or the election of Manufacturer pursuant to Section 4.2 below, Distributor shall immediately cease to use any and all of the Manufacturer Marks, and any listing by Distributor of any Manufacturer Marks in any telephone book, directory, public record, or elsewhere shall be immediately removed therefrom by Distributor, but in any event not later than the subsequent issue of such publication.

			

			3.3      Infringement. Distributor shall notify Manufacturer of any actual or suspected infringements, imitations, or unauthorized use of the Manufacturer’s Marks, Products or licenses by third parties of which

			

			

			

		

		
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			Distributor becomes aware.  Manufacturer may, at its expense, take actions, including without limitation the commencement of infringement litigation on account of any such infringements, imitations, or unauthorized use in order to protect the Manufacturer Marks, Products, and the licenses to the extent permitted under law. Distributor shall fully and timely cooperate with and assist Manufacturer, as Manufacturer may reasonably request, incident to any such action brought by Manufacturer. Manufacturer shall receive and retain any and all damages, settlement, and/or compensation paid incident to any such action brought by Manufacturer. 

			

			3.4      Registered User Agreements. Manufacturer and Distributor shall enter into registered user agreements with respect to the Manufacturer Marks pursuant to applicable trademark law requirements in the Territory, if any.  Manufacturer, at Manufacturer's sole discretion, shall be responsible for proper filing of registered user agreements and all such other required registrations relating to the legal protection of the Manufacturer Marks with governmental authorities in the Territory and shall pay all costs or fees associated with such filing(s).

			

			4.        OBLIGATIONS OF DISTRIBUTOR

			

			4.1      Diligence. Distributor shall use its best efforts to promote the marketing and distribution of Products.

			

			4.2      Costs and Expenses. Except as expressly set forth herein, Distributor shall be solely responsible for all costs and expenses related to Distributor’s advertising, marketing, promotion, and distribution of  Products and for performing its obligations hereunder.

			

			4.3      Promotional Materials. Distributor shall maintain an adequate inventory of Manufacturer's current sales materials and samples (all together, "Sales Materials") and shall use such Sales Materials in an efficient and effective manner to promote the sale of Products in the Territory.

			

			4.4      Reports.

			

			4.4.1   Annual Sales Reports. Distributor shall provide annual sales reports to Manufacturer no later than 2 months after the close of the respective party’s applicable fiscal year, and such reports be treated as Confidential Information pursuant to the terms of Article 11 below.

			

			4.4.2   General Market Information. Manufacturer shall provide to Distributor information regarding general market conditions and competitors on a regular basis, but no less than once per calendar quarter.

			

			4.4.3   Sales Activities. Within 30 days after the end of each calendar quarter during the Term, Distributor shall send to Manufacturer a sales activities report including the names of customers, quantities of Products purchased, dollar amounts invoiced to and received from such customers, and customer backlog and inventory status of Products, and further shall maintain records of the same.

			

			4.5      Relations with Customers. Distributor shall process and ship each customer order in a timely fashion. Distributor shall provide to customers any and all instructions, precautions, and other warnings pertaining to Products provided by Manufacturer to Distributor. Manufacturer shall

			

			

			

		

		
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			provide to Distributor any such instructions, precautions, and other warnings pertaining to Products, as Manufacturer in its sole discretion deems necessary or desirable.

			

			4.6      Product Representations. Distributor shall not make any representations with respect to Products other than those expressly authorized in writing in Manufacturer's written data sheets.

			

			4.8      Mutual Indemnification. Distributor and Manufacturer each agree to indemnify and hold the other and the other’s officers, directors, employees, successors, and assigns, harmless from and against any and all losses, damages, or expenses of whatever form or nature, including attorneys' fees and other costs of legal defense, whether direct or indirect, that either of them may sustain or incur as a result of any acts or omissions of the other or any of their directors, officers, employees, or agents, including without limitation (a) breach of any of the provisions of this Agreement, (b) negligence or other tortious conduct, (c) representations or statements not specifically authorized by Manufacturer herein or otherwise in writing, or (d) violation by Distributor (or any of its directors, officers, employees, or agents, or by any Subdistributor) of any applicable law, regulation, or order in or of the Territory or otherwise.

			

			5.        PRODUCTS

			

			5.1      Product Prices. The prices ("Wholesale Prices") to be paid by Distributor to Manufacturer for Products shall be Manufacturer's wholesale list prices for Products, less the discount(s) set forth in Exhibit D attached hereto. "List Prices" as used herein shall mean the prices set forth in Manufacturer's then-current customer price schedules or bulletins. All prices are stated and shall be payable in U.S. dollars. The difference between Wholesale Prices and List Prices shall be Distributor's sole remuneration from Manufacturer for the distribution and sale of Products hereunder. 

			

			5.2      Price Changes. List Prices are subject to change by Manufacturer in its sole discretion upon advance written notice to Distributor of at least 60 days. List Price changes shall be effective immediately after such 60 days notice and shall be applicable to all purchase orders whether or not accepted prior to the effective date of the List Price change.

			

			5.3      Product Changes. Manufacturer shall have the right from time to time in its sole discretion, without incurring any liability to Distributor with respect to any previously placed Purchase Order (as hereinafter defined), to (a) discontinue or to limit its production of any Product, (b) allocate, terminate, or limit deliveries of any Product in time of shortage, (c) alter the design or construction of any Product, (d) add new and additional products to Products, and (e) after reasonable notice to Distributor, to change its sales and distribution policies, not inconsistent with the terms of this Agreement.

			

			5.4      Discontinued Product. In the event Manufacturer discontinues sale of any Product, Manufacturer shall give Distributor prompt notice thereof. Within 60 days following the date of such discontinuation notice, Distributor may elect to return for credit against future purchases by Distributor of Products any of the discontinued Products (including samples) purchased by Distributor during the 3 months prior to the date of

			

			

			

		

		
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			such discontinuance notice which have not been used or sold and which are in Distributor's inventory as of the date of such discontinuance notice.

			

			6.        PURCHASER ORDERS

			

			6.1      Purchase Orders. All orders for Products submitted by Distributor shall be initiated by written purchase order (any one "Purchase Order") in form acceptable to Manufacturer; provided, however, that an order may initially be placed orally or by fax if a confirming Purchase Order is received by Manufacturer within 5 days after reciept by Manufacturer of such oral or fax order. All Purchase Orders are deemed accepted by Manufacturer unless Manufacturer rejects a Purchase Order in writing within 5 business days after the date of Manufacturer’s receipt of a Purchase Order. No partial acceptance of a Purchase Order by Manufacturer shall constitute an acceptance of the entire Purchase Order.

			

			6.2      Agreement Governs. Purchase Orders shall be governed by the terms of this Agreement. Nothing contained in any Purchase Order shall in any way modify the terms and conditions contained herein or add any additional or different terms or conditions to the terms and conditions of this Agreement.

			

			6.3      Order Changes. Purchase Orders may be canceled only with Manufacturer's prior written consent. Cancellation of a Purchase Order is subject to a restocking charge equal to 2 1/2% of the aggregate amount of such Purchase Order.

			

			7.        PAYMENT; TAXES

			

			7.1      Payment Terms. Payment of any and all amounts due under this Agreement shall be in U.S. Dollars. Distributor shall either (a)pay for Products in full with each Purchase Order during the first 90 days of the Term, and (b) pay for Products within 30 days of receipt of Products by wire transfer or check to Manufacturer's designated account for all purchases made thereafter. Distributor may, with the prior written consent of Manufacturer, guarantee payment for all Products by an irrevocable letter of credit, issued by a bank and upon terms and conditions acceptable to Manufacturer providing for payment upon delivery of Manufacturer's invoice and the bill of lading and providing for payment for all applicable taxes, shipping charges, and other charges to be borne by Distributor as provided hereunder. All exchange, interest, banking, collection, and other charges shall be at Distributor's expense.

			

			7.2      Offsets. Any credits, allowances, or other amounts payable to or creditable by Distributor shall be subject to offset for any claims or other amounts owed by Distributor to Manufacturer pursuant to the provisions of this Agreement. 

			

			7.3      Taxes.

			

			7.3.1   Taxes Generally. Wholesale and List Prices do not include and are net of any foreign or domestic governmental taxes or charges of any kind that may be applicable to the sale, licensing, marketing, or distribution of  Products, including without limitation (a) excise, sales, use, or value-added taxes, (b) customs or other import duties, or (c)other taxes, tariffs, or duties. Distributor shall be responsible for and shall pay all such taxes and charges applicable to sales made by Distributor, which are

			

			

			

		

		
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			levied against Manufacturer, in a timely manner. When Manufacturer has the legal obligation to pay or collect any such taxes, excluding taxes on the income of Manufacturer, the appropriate amount shall be invoiced to Distributor and paid by Distributor within 30 days of the date of invoice unless Distributor provides Manufacturer with a valid tax exemption certificate authorized by the appropriate taxing authority.

			

			7.3.2   Withholding Taxes.  All payments by Distributor shall be made free and clear of, and without reduction for, any withholding taxes. Any such taxes (other than taxes on the income of Manufacturer) which are otherwise imposed on payments to Manufacturer shall be the sole responsibility of Distributor. Distributor shall provide Manufacturer with official receipts issued by the appropriate taxing authority or such other evidence as is reasonably requested by Manufacturer to establish that such taxes have been paid.

			

			8.        DELIVERY; REJECTION

			

			8.1      Shipment and Delivery. Products shall be suitably packed for shipment in Manufacturer's standard shipping cartons, marked for shipment to the destination specified in the relevant Purchase Order, and delivered to the carrier agent.  All freight, insurance, other shipping expenses, and  expenses for any special packing requested by Distributor and provided by Manufacturer, shall be paid by Manufacturer. Risk of loss shall remain with Manufacturer until Products are received by Distributor or the customer to whom the Product is shipped as the case may be. 

			

			8.2      Title. Inspection; Rejection. Distributor shall inspect all Products promptly upon receipt thereof and may reject any defective Product, provided that Distributor shall (a) within the earlier of 30 days after receipt of such alleged defective Product or 10 days after discovery of such alleged defect, notify Manufacturer of its rejection and request a Return Material Authorization ("RMA") number, and (b) within 10 days after receipt of the RMA number from Manufacturer return such rejected Product to Manufacturer, freight prepaid. Products not rejected within the specified  time periods shall be deemed accepted by Distributor. In the event that Manufacturer determines that any returned Product is defective and properly rejected by Distributor, Manufacturer shall replace such defective Product, or accept the return of such for credit of such defective Product. Manufacturer shall return to Distributor, freight prepaid, all replaced Products properly rejected by Distributor. In the event that any rejected Product is determined by Manufacturer to not be defective or to have been modified or subjected to unusual electrical or physical stress, misuse, abuse, or unauthorized repair, Distributor shall reimburse Manufacturer for all costs and expenses related to the inspection and return of such Product to Distributor.

			

			8.3      Returned Product. Distributor shall only return Products to Manufacturer with Manufacturer's prior written approval. Any Product returned to Manufacturer by Distributor as authorized under this Agreement shall be shipped, freight prepaid, F.O.B. Distributor’s address.

			

			9.        TECHNICAL SUPPORT

			

			9.1      Support by Manufacturer. Manufacturer shall be solely responsible for supporting all Products distributed hereunder. Manufacturer shall provide reasonable technical support to customers, including without limitation (a) maintaining trained and

			

			

			

		

		
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			competent technical and engineering support personnel for Products who are sufficiently knowledgeable with respect to Products to answer customer questions regarding the use and operation of Products, (b) responding promptly to requests for technical support from customers, and (c) providing technical support services to address and resolve customers' support requests with respect to Products and the services associated with Products.

			

			9.1.1   Additional Responsibilities. Without limiting the foregoing and in addition to any other obligations set forth in Manufacturer's then current support terms and conditions, Distributor shall be responsible for (a) providing sufficient information to Manufacturer for Manufacturer to duplicate any reported error in the Products, (b) incorporating updates into Products promptly upon receipt thereof, (c) reporting errors promptly in English and in writing in accordance with Manufacturer's standard support procedures, and (d) providing reasonable cooperation and full information to Manufacturer in the furnishing of support for Products.

			

			9.2      Support to Distributor. Manufacturer shall use reasonable efforts to provide to Distributor or Subdistributors such telephone or electronic mail technical support as Manufacturer makes generally available to its distributors other than Distributor. Such telephone support shall be provided during Manufacturer's normal business hours (Monday through Friday, 9:00 a.m. through 5:00 p.m., Central Standard Time, excluding Manufacturer holidays).

			

			10.      WARRANTY

			

			Manufacterer hereby warrants and conditions all express and implied warranties and conditions of merchantability, fitness for a particular purpose, and non-infringement, and all other implied warranties or conditions arising from course of dealing, usage of trade, or custom.

			

			11.       CONFIDENTIALITY AND PROPRIETARY RIGHTS

			

			11.1     Confidentiality. Distributor acknowledges that by reason of its relationship to Manufacturer hereunder Distributor will have access to certain information and materials (all together, "Confidential Information") concerning Manufacturer's business, plans, customers, technology, and products (including Products) that are confidential and of substantial value to Manufacturer, which value would be impaired if such information were disclosed to third parties. Distributor shall not use in any way for its own account or the account of any other party, nor disclose to any other party, any Confidential Information revealed to Distributor by Manufacturer. Distributor shall take every reasonable precaution to protect the confidentiality of Confidential Information. Upon request by Distributor, Manufacturer shall advise whether or not Manufacturer considers that any particular information or materials to be Confidential Information. Distributor shall not publish any technical description of  Products beyond the description published by Manufacturer. In the event of termination of this Agreement, Distributor shall not use or disclose any Confidential Information, and Distributor shall not reproduce, manufacture, or have reproduced or manufactured, any computer software programs, devices, components, or assemblies utilizing any Confidential Information.

			

			11.2     Proprietary Rights. Manufacturer shall retain all of right, title, and interest in and to all patents, trademarks, trade names, inventions,

			

			

			

		

		
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			copyrights, know-how and trade secrets (including Manufacturer Marks) relating to Products or the product lines of Mnaufacturer that include Products, and the design, manufacture, operation, or service of Products. The use by Distributor of any of such property rights is authorized only for the purposes herein set forth and upon termination of this Agreement for any reason such authorization will cease. Distributor shall not (and shall require that its customers do not) remove, alter, cover, or obfuscate any copyright notices or other proprietary rights notices placed or embedded by Manufacturer on or in any Product.

			

			12.       INTELLECTUAL PROPERTY INDEMNIFICATION

			

			12.1     Limited Indemnity. Distributor agrees that Manufacturer has the right to defend, or at its option to settle, and Manufacturer agrees, at its own expense, to defend or at its option to settle, any third party claim, suit or proceeding (collectively, "Action") brought against Distributor alleging that any Product infringes any copyright or trademark in existence as of the Effective Date, subject to the limitations hereinafter set forth. Manufacturer shall have sole control of any such Action or settlement negotiations, and Manufacturer shall pay, subject to the limitations hereinafter set forth, any final judgment entered against Distributor in any such Action defended by Manufacturer. Manufacturer shall be relieved of the foregoing obligations unless Distributor notifies Manufacturer in writing of such Action within 90 days after becoming aware of such Action, gives Manufacturer authority to proceed as contemplated herein, and gives Manufacturer proper and full information and assistance to settle and/or defend any such Action. If it is adjudicatively determined, or if Manufacturer believes, that any Product, or any part of any Product, infringes any copyright or trademark, or if the sale or use of any Product, or any part of any Product, is, as a result, enjoined, then Manufacturer may, at its election, option, and expense (a) procure for Distributor the right under such copyright or trademark to sell or use, as appropriate, such Product, or any part of such Product, (b) replace such Product, or any part of such Product, with other non-infringing suitable products or parts, (c) suitably modify such Product, or any part of such Product, or (d) remove such Products, or any part of such Product, terminate distribution or sale thereof, and refund the payments paid by Distributor for such Products, less a reasonable amount for use and damage. Manufacturer shall not be liable for any costs or expenses incurred without its prior written consent, or for any installation costs of any replaced Products.

			

			12.2     Limitations. Notwithstanding the provisions of Section 12.1 above, Manufacturer shall have no liability for infringement claims arising from (a) combination of  Products or portions of Products with other products not provided by Manufacturer if such infringement would not have occurred but for such combination, or (b) the modification of Products or portions of Products unless such modification was made or authorized by Manufacturer, when such infringement would not have occurred but for such modification.

			

			13.       TERM AND TERMINATION

			

			13.1     Term. Unless earlier terminated pursuant to Section 13.2 below or by mutual written consent, this Agreement and the Term shall commence and shall expire on the dates specified in Section1.5 hereof. This Agreement will automatically renew for a maximum of ___ additional consecutive

			

			

			

		

		
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			renewal terms (any one, "Renewal Term") of ___ years each, unless otherwise terminated as specified herein.

			

			13.2     Termination. This Agreement may be terminated prior to the expiration of the Term or any Renewal Term by prior written notice as follows:

			

			13.2.1   By either party upon written notice of termination if the other party breaches any material term or condition of this Agreement and fails to cure that breach within 60 days after receiving written notice stating the nature of the breach and the non-breaching party's intent to terminate; or

			

			13.2.2   By either party, effective immediately, if the other party should become the subject of any voluntary or involuntary bankruptcy, receivership, or other insolvency proceedings or make an assignment or other arrangement for the benefit of its creditors, or if such other party should be nationalized or have any of its material assets expropriated.

			

			13.3     Purchase Orders; No Waiver. Notwithstanding the foregoing, Distributor shall be obligated to accept deliveries of Products for which Purchase Orders were accepted by Manufacturer prior to the effective date of termination. After any notice of termination has been delivered by either party hereunder, deliveries of Products to Distributor, unless otherwise agreed by Manufacturer in its sole discretion, shall require prepayment by wire transfer by Distributor to Manufacturer. The acceptance of any Purchase Order for the sale of any Product to Distributor after the termination or expiration of this Agreement shall not be construed as a renewal or extension of this Agreement nor as a waiver of termination of this Agreement.

			

			13.4     Rights of Parties Upon Termination or Expiration. The following provisions shall apply on the termination or expiration of this Agreement.

			

			13.4.1  Cessation of Sales Activities. Distributor shall cease all sales and other activities on behalf of Manufacturer and shall return to Manufacturer and immediately cease all use of Confidential Information previously furnished by Manufacturer and then in Distributor's possession or otherwsie reasonably available to Distributor. Distributor shall deliver to Manufacturer Distributor's current customer mailing list and take such action as is necessary to terminate Distributor's registration as Manufacturer's sales representative with any governmental authority.

			

			13.4.2  Acceleration of Amounts Owed. All indebtedness of Distributor to Manufacturer shall become immediately due and payable without further notice or demand, which is hereby expressly waived, and Manufacturer shall be entitled to reimbursement for any reasonable attorneys' fees that it may incur in collecting or enforcing payment of such obligations; provided, however, that should this Agreement terminate by reason of the natural expiration of any term hereof, then all indebtedness of Distributor to Manufacturer shall be paid in accordance with the applicable provisions of this Agreement.

			

			13.4.3  Cessation of Use of Manufacturer Marks. Distributor shall remove from its property and immediately discontinue all use, directly or indirectly, of the Manufacturer Marks, or of any word, title, expression, trademark, design, or marking that, in the opinion of Manufacturer, is confusingly similar thereto. Distributor shall, upon written request from

			

			

			

		

		
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			Manufacturer, certify in writing to Manufacturer that Distributor has completely terminated its use of any and all Manufacturer Marks, and other trademarks, designs, or markings, or any other word, title, or expression similar thereto, that appeared in or on any devices or other materials used in conjunction with Distributor's business.

			

			13.4.4  No Obligation to Repurchase. Except for obligations arising prior to the date of termination which have not been satisfied as of the date of termination, Manufacturer shall have no obligation to repurchase or to credit Distributor for its inventory of Products at the time of termination of this Agreement. Manufacturer may, at its sole option, repurchase from Distributor, at the net Wholesale Prices paid by Distributor, any or all inventory of Products originally purchased by Distributor from Manufacturer and remaining unsold by Distributor.

			

			13.5     No Liability for Termination. Except as expressly required by law, in the event of termination of this Agreement by either party in accordance with any of the provisions of this Agreement, neither party shall be liable to the other, because of such termination, for compensation, reimbursement or damage on account of the loss of prospective profits or anticipated sales or on account of expenditures, inventory, investments, leases, or commitments in connection with the business or goodwill of Manufacturer or Distributor. A termination of this Agreement shall not, however, relieve either party of obligations incurred prior to the termination.

			

			13.6     Survival. Except for termination by Manufacturer pursuant to Section 13.2.1 above, Distributor may sell Products existing in its inventory as of the effective date of termination of this Agreement for a period of 90 days after the effective date of such termination ("Wind-Down Period"). During the Wind-Down Period, the provisions of Article 14 and Sections 2.2, 4.8 and 4.9 shall survive. In addition to the foregoing provisions, the following provisions shall survive any termination or expiration of this Agreement: Articles 1, 11, 13 and 15, and Sections 2.4, 2.6, 2.7, 3.2, 4.10, 6.2, 8.2, 13.4, 13.6, 14.1 and 14.4.

			

			14.       COMPLIANCE WITH LAWS

			

			14.1     Export Control. Any and all obligations of Manufacturer to provide Products, as well as any technical data, shall be subject in all respects to such United States laws and regulations as will from time to time govern the license and delivery of technology and products abroad by persons subject to the jurisdiction of the United States, including the Export Administration Act of 1979, as amended, any successor legislation, and the Export Administration Regulations issued by the U.S. Department of Commerce, Bureau of Export Administration. Distributor represents and warrants that it will not export or reexport the Products or technical data related thereto except in conformity with such laws and regulations.

			

			14.1.1   Required Authorization. Unless prior written authorization is obtained from the Bureau of Export Administration, or the Export Administration Regulations explicitly permit the export, re-export, and/or trans-shipment of Products or technical data disclosed or provided to Distributor, as applicable, without such written authorization, Distributor shall not export, re-export, or trans-ship, directly or indirectly, Products or technical data, to any country as to which the U.S. Government has placed an embargo against the shipment of products, which embargo is in effect during the term of this Agreement.

			

			

			

		

		
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		14.2     Liability of Manufacturer. The provisions of this Agreement under which the liability of Manufacturer is excluded or limited shall not apply to the extent that such exclusions or limitations are declared illegal or void under the laws applicable in the countries in which Products are sold hereunder.

		

		14.3     Questionable Payments. Distributor certifies that neither Distributor, nor any of its directors, officers, employees, or agents (including Subdistributors) is or will be an official, agent, or employee of any government or governmental agency or political party or a candidate for any political office. Distributor shall promptly notify Manufacturer of any event that would or may result in an exception to the foregoing representation. Distributor shall not, directly or indirectly, in the name of, on behalf of, or for the benefit of Manufacturer offer, promise to pay, or pay any compensation, or give anything of value to, any official, agent, or employee of any government or governmental agency, or to any political party or officer, employee, or agent thereof. Distributor shall require each of its directors, officers, employees, and agents (including Subdistributors) to comply with the provisions of this Section 14.3. Any breach of the provisions of this Section 14.3 shall entitle Manufacturer to immediately terminate this Agreement upon written notice to Distributor pursuant to Section 13.2 above.

		

		15.       MISCELLANEOUS PROVISIONS

		

		15.1     Governing Law. This Agreement shall be governed by and construed under the laws of the state of Texas.

		

		15.2     Jurisdiction; Venue. The parties hereto also hereby irrevocably and unconditionally consent to submit to the exclusive jurisdiction of the courts of the State of Texas and of the United States of America located in the State of Texas for any actions, suits, or proceedings arising out of or relating to this Agreement and the transactions contemplated hereby (and the parties hereto agree not to commence any action, suit, or proceeding relating thereto except in such courts), and further agree that service of any process, summons, notice or document by United States Postal Service certified mail to their address set forth above shall be effective service of process for any action, suit, or proceeding brought against them in any such court. The parties hereto hereby irrevocably and unconditionally waive any objection to the laying of venue of any action, suit, or proceeding arising out of this Agreement or the transactions contemplated hereby in the courts of the State of Texas or the United States of America located in Dallas County, Texas and hereby further irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

		

		15.3     Assignment. Distributor may not transfer or assign any of its rights or obligations under this Agreement without the prior written consent of Manufacturer.

		

		15.4     No Implied Waivers. The failure of either party at any time to require performance by the other of any provision hereof shall not affect the right of such party to require performance at any time thereafter, nor shall the waiver of either party of a breach of any provision hereof be taken or held to be a waiver of a provision itself.

		

		

		

		
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		15.5     Severability. If any provision of this Agreement is held to be invalid by a court of competent jurisdiction, then the remaining provisions will nevertheless remain in full force and effect. The parties agree to renegotiate in good faith those provisions so held to be invalid to be valid, enforceable provisions which provisions shall reflect as closely as possible the original intent of the parties, and further agree to be bound by the mutually agreed substitute provisions.

		

		15.6     Force Majeure. Except for payment of monies, neither party shall be liable for failure to fulfill its obligations under this Agreement or any purchase order issued hereunder or for delays in delivery due to causes beyond its reasonable control, including, but not limited to, acts of God, man-made or natural disasters, earthquakes, fire, riots, flood, material shortages, strikes, delays in transportation or inability to obtain labor or materials through its regular sources. The time for performance of any such obligation shall be extended for the time period lost by reason of the delay.

		

		15.7     Conflicting Terms. The parties agree that the terms and conditions of this Agreement shall prevail, notwithstanding contrary or additional terms, in any purchase order, sales acknowledgment, confirmation or any other document issued by either party effecting the purchase and/or sale of Products.

		

		15.8     Headings. Headings of paragraphs herein are inserted for convenience of reference only and shall not affect the construction or interpretation of this Agreement.

		

		15.9     Notice. Any notice required or permitted to be given under this Agreement shall be delivered (a) by hand, (b) by registered or certified mail, postage prepaid, return receipt requested, to the address of the other party first set forth above, or to such other address as a party may designate by written notice in accordance with this Section 15.9, (c) by overnight courier, or (d) by fax with confirming letter mailed under the conditions described in (b) above. Notice so given shall be deemed effective when received, or if not received by reason of fault of addressee, when delivered.

		

		15.10    Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements relating thereto, written or oral, between the parties. Amendments to this Agreement must be in writing, signed by the duly authorized officers of the parties. The terms of any purchase order are expressly excluded.

		

		15.11    Injunctive Relief. DISTRIBUTOR AGREES THAT ANY VIOLATION OR THREATENED VIOLATION OF SECTIONS 2.7, 3.2, 3.4, 11.1, 11.2 OR 13.4.3 WILL CAUSE IRREPARABLE INJURY TO MANUFACTURER, ENTITLING MANUFACTURER TO OBTAIN INJUNCTIVE RELIEF IN ADDITION TO ALL LEGAL REMEDIES.

		

		In Witness Whereof, Manufacturer and Distributor have duly executed this Agreement effective as of the Effective Date.

		

		

		

		

		

		
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		SIGNATURE PAGE FOR NON-EXCLUSIVE DISTRIBUTION AGREEMENT

		

		

		MICROTRAK GPS, INC,

		A Nevada Corporation

		

		By:  /s/ Walter R. Stock              

		      W R Stock, Pres

		

		

		INFOMAC CORPORATION

		A Nevada corporation

		

		A Nevada Corporation

		

		By:  /s/ Christopher Giordano       

		      Christopher Giordano, Pres

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		
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