Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Wescorp Energy Inc. - Exhibit 10.1

 LICENSE AGREEMENT 

 THIS LICENSE AGREEMENT (“Agreement”) is made and
  is effective 

  as of December 6. 2001. (“Effective Date”) 

BETWEEN:

FLOWRAY INC. 

 (“Licensor”) 

 and 

 FLOWSTAR TECHNOLOGIES INC. 

(“Licensee”)

BACKGROUND: 

	A.	Licensor has purchased and developed technology and know-how
      related to certain flow meters, totalizers, hand-held and fixed flare stack
      igniters, and other market applications and is the sole legal and beneficial
      owner of such technologies and of certain intellectual property rights therein.
	 	 
	B.	Licensor is the sole legal and beneficial owner of certain
      molds used in the plastic injection of parts and the Licensee wishes to
      use such molds.
	 	 
	C.	Licensee wishes to license such technology and know-how in
      order to manufacture, market and distribute certain products. and Licensor
      wishes to grant such license to Licensee.
	 	 
	D.	The Parties wish to formally set forth the terms and conditions
      of this Agreement.

 Agreement 

For valuable consideration, the receipt of which each Party acknowledges the Parties agree as follows:

	1. 	Definitions ~ In this Agreement:
	 	 
	(a)	“Confidential Information” means any and
      all information provided by either Party to the other in connection with
      this Agreement. including but not limited to the Technology, this Agreement.
      and all techniques. trade secrets. sketches. drawings. works of authorship.
      models. inventions. knowhow-. processes. apparatuses. equipment. ideas.
      formulae. algorithms. concepts. software products. software are source documents.
      and test results related to the current, future and proposed products of
      each Party. and including, without limitation, their respective information
      concerning research. experimental work. development, design details and
      specifications. engineering, unpublished financial information. procurement
      requirements. purchasing. manufacturing, customer lists. investors, employees,
      business and contractual relationships, business forecasts. sales and merchandising.
      marketing plans and information the disclosing party provides regarding
      third Parties.
	 	 
	(b)	“License” means the license granted hereunder
      by Licensor to Licensee to use the Technology under the terms and conditions
      of this Agreement.

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	(c)	“Parties” means Licensor and
      Licensee collectively, and “Party” means each individually.
	 	 
	(d)	“Person” means an individual,
      a corporation. a society, a partnership. a government or any government
      department or agency. a trustee, any unincorporated organization and includes
      the heirs and legal representatives of an individual.
	 	 
	(e)	“Product” or “Products”
      means those products of the Licensor current at the relevant time.
	 	 
	(f)	“Technology” means any and all
      present and future patents, know-how. data and information of any kind relating
      to certain flow meters. totalizers, hand-held and fixed flare stack igniters.
      and other related market applications, owned or developed in whole or part
      by Licensor.
	 	 
	(g)	“Territory” means the entire
      world.
	 	 
	2.	License
	 	 	 
	2.1 	Grant of License. Subject to the provisions
      of this Agreement Licensor hereby grants to Licensee and Licensee hereby
      accepts:
	 	 	 
	 	(a)	a non-exclusive license (including the right to grant sublicenses
      with the written consent of the Licensor) in the Technology for the purpose
      of making, having made, using. marketing and selling the Products in the
      Territory.
	 	 	 
	 	(b)	a non-exclusive license to all of Licensor’ s trademarks
      and logos subject to the provisions of this Agreement.
	 	 	 
	2.2 	Technical Assistance. Licensor, at its
      ox 11 cost and expense, will provide to Licensee, any and all technical
      assistance, as Licensee (and its sublicensees) will reasonably require in
      connection x 4th the exercise of the license granted pursuant to paragraph
      2.1 above.
	 	 
	2.3	Reservation of Rights. Licensee acknowledges
      and agrees that. in spite of the License granted under this Agreement, Licensor
      will be the sole and exclusive owner of all right. title and interest in
      and to the Technology and Licensee has no rights in or to the Technology
      other than the license rights specifically granted under this Agreement.
      Licensor reserves all other rights to the Technology
	 	 
	2.4 	Restrictions. Except as permitted under
      this Agreement, it is understood and agreed between Licensor and Licensee
      that the Licensee will not:
	 	 	 
	 	(a)	directly or indirectly manufacture, sell, or distribute,
      or facilitate in any manner (including the lending of money or the guaranteeing
      of any debts or obligations) the manufacture, sale, or distribution of the
      Products. either individually or in partnership, or jointly or in conjunction
      with, any other Person: or
	 	 	 
	 	(b)	directly or indirectly assist (as a director. shareholder,
      partner, or in any other capacity) any Person to manufacture. sell, or distribute
      the Products: or
	 	 	 
	 	(c)	have any direct or indirect interest or concern (as a director,
      shareholder, partner, or in any other capacity) in or with any Person. if
      any part of the activities of that Person consists of the manufacture, sale,
      or distribution of the Products or the facilitation in any manner of the
      sale of the Products.
	 	 	 
	 	Without the express written consent and authorization
      of Licensor.
	 	 	 
	2.5 	it is understood and agreed between Licensor
      and Licensee that if the Licensee fails to strictly comply with the provisions
      of paragraph 2 4 of this Agreement that such a failure constitutes a

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	 	material breach of this Agreement and Licensor
      may terminate this Agreement in accordance with the provisions of paragraph
      8 of this Agreement.
	 	 
	3.	Licensor’s Rights and Obligations
	 	 
	3.1 	Support. Licensor will provide the following
      support to Licensee:
	 	 	 
	 	(a)	engineering and design support:
	 	 	 
	 	(b)	marketing support. documentation. and requirements for correct
      trademark usage.
	 	 
	3.2 	Supply. Licensor will supply to Licensee
      (and any of its sublicensees) all of Licensees (and any such sublicensees’)
      the Technology to enable Licensee (and any such sublicensees) to make the
      Products.
	 	 
	3.3 	Audit Right. Licensor will have the right
      six (6) months from the Effective Date, and at six (6) mouth intervals thereafter,
      to conduct an audit review, to verify the Licensee is compliant with the
      provisions of this Agreement.
	 	 
	4.	Licensee’s Obligations
	 	 
	4.1 	The Licensee will:
	 	 	 
	 	(a)	package and label the Products according to the instructions
      given by Licensor;
	 	 	 
	 	(b)	manufacture according to the standards of Licensor, such
      standards to be commercially reasonable and provided to the Licensee by
      Licensor;
	 	 	 
	 	(c)	comply with all trademark usage requirements set out by the
      Licensor;
	 	 
	4.2 	Customer Support and Warranty. Licensee
      will be responsible for providing any support directly to distributors,
      resellers. or end users of the Product. Licensee is responsible for providing
      a ninety (90) day warranty and customer support for any Product. In addition,
      Licensee will provide to Licensor, upon request, from time to time, any
      Product that has been returned under a warranty so that Licensor may conduct
      testing thereof and on a quarterly basis, a written report setting out warranty
      claims and their resolution.
	 	 
	4.3 	Records Retention. Licensee will keep
      complete and accurate records pertaining to the sale of the Product. Such
      records will be maintained for a three (3) year period following the year
      in which any such payments were made hereunder.
	 	 
	5.	Payment
 License Fees. In consideration
      of the License granted under this Agreement, Licensee will pay
	 	 
	5.1	 to Licensor a royalty of ten percent (10%) of
      the gross sales of all Products sold (“Royalty Payment’). The
      Royalty Payment will be paid on a quarterly basis.
	 	 
	5.2	 Late Payments. All late payments will
      accrue interest at a rate of one and a half percent (0.75%) per month, (9%
      per annum).
	 	 
	5.3 	Taxes. All payments by Licensee will be
      made free and clear of all and any manner of taxes.

      Any such taxes. which are otherwise imposed on payments to Licensee, will
      be the sole responsibility of Licensee. Licensee will provide Licensor with
      official receipts issued by the appropriate taxing authority or such other
      evidence as is reasonably requested by Licensor to establish that such taxes
      have been paid.

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	6. 	Representations and Warranties
	 	 	 
	6.1 	Mutual Representations and Warranties.
      Each Party represents and warrants that they have full power and authority
      to execute and deliver this Agreement and to grant the licenses contemplated
      in this Agreement, to perform its obligations under this Agreement, and
      to consummate the transactions contemplated by this Agreement and the transactions
      contemplated by this Agreement will not violate any applicable law, rule
      or regulation and will not conflict with, or result in a breach of. any
      of the terms of. or constitute a default under. any agreement to which Licensor
      is a party or by which it is bound.
	 	 	 
	6.2	 Infringement. To the best of Licensor’s
      knowledge. the manufacture. use or sale of the Technology by Licensee under
      this Agreement will not infringe any patent, copyright, trade secret or
      other proprietary right of any third party.
	 	 	 
	6.3 	No Representation. In spite of paragraph
      6.2, Licensor makes no representation or warranty: 
	 	 	 
	 	(a) 	as to the efficacy or usefulness of the Technology; 
	 	(b) 	that any of the registrations with respect to the Technology,
      including, but not limited to, any patents therein, is or will be valid
      or subsisting; and
	 	 (c) 	that any of the applications with respect to the Technology
      will proceed to grant.
	 	 	 
	6.4	Exclusion of Other Warranties. Except
      as expressly stated in this Agreement. there are no express or implied warranties
      or conditions in relation to the Technology or any modifications, enhancements
      or improvements thereto, including implied warranties or conditions of merchantable
      quality, fitness for a particular purpose.
	 	 	 
	7.	Liability
	 	 	 
	7.1 	Indemnification. The Parties agree to
      indemnify and hold each other harmless from and against any and all claims,
      losses, liabilities, damages. expenses and costs, including, without limitation.
      reasonable fees for attorneys and court costs, which result from a breach
      of any of the warranties set forth in this Agreement.
	 	 	 
	7.2 	Liability for Manufacture or Use. Licensee
      will be responsible for its own acts and omissions relating to the manufacture
      and use of the Product and Licensor will not indemnify Licensee for costs,
      expenses, liability, damages or claims, for any injury or death to persons
      or damage to or destruction of property or other loss or damages arising
      out of or in connection with any Product made or used by Licensee, except
      as stated in this Agreement.
	 	 	 
	7.3 	Waiver of Consequential Damages. Except
      for breaches of License grants or of a Party’s confidentiality obligations,
      in no event will either Party be liable to the other for any lost profits,
      lost savings, or any other incidental, special, punitive or consequential
      damages, even if such Party has been advised of the possibility of such
      damages, whether in an action under statute, contract. tort (including negligence)
      or otherwise. arising out of or in connection with this Agreement or in
      connection with the granting or use of the Licenses hereunder.
	 	 	 
	8. 	Term and Termination
	 	 	 
	8.1 	Term. This Agreement will commence as
      of the Effective Date and, unless sooner terminated as provided in this
      Agreement, will continue for a period of three (3) years (the “Tern’).
      Thereafter the Tern shall automatically renew for successive one-year periods
      unless either Party gives

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	 	written notice of its intent not to renew no
      less than 90 days prior to the expiration of the initial or am subsequent
      renewal term.
	 	 	 
	8.2 	Termination by Default. If an Event of
      Default occurs, as defined below. then either Party may terminate this Agreement
      immediately. An “Event of Default” means the occurrence of any
      or more of the following:
	 	 	 
	 	(a)	a Party takes advantage of the insolvency laws of an jurisdiction:
	 	 	 
	 	(b)	a Party makes an assignment in bankruptcy or is adjudicated
      a bankrupt:
	 	 	 
	 	(c)	a Party makes a general assignment in bankruptcy for the
      benefit of its creditor:
	 	 	 
	 	(d)	a Party has a receiver. administrator or manager of its property,
      assets or undertaking appointed in such circumstances as would substantially
      affect the Party’s ability to perform under this Agreement;
	 	 	 
	 	(e)	a Party is ordered by any court of competent jurisdiction
      to be wound up;
	 	 	 
	 	(f)	a Party becomes insolvent or makes a sale in bulk of its
      assets;
	 	 	 
	 	(g)	a Party ceases doing business as a going concern;
	 	 	 
	 	(h)	a Party defaults in the performance of any material provision
      of this Agreement and fails to cure the breach within 30 days from receipt
      of notice from the other Party.
	 	 	 
	 	(i)	change of ownership of Licensee unless agreed to in writing
      by Licensor.
	 	 	 
	8.3 	No Damages from Termination. In the event
      this Agreement is terminated by either Party in accordance with the provisions
      of this paragraph 8, the Party so electing to terminate this Agreement will
      not be liable to the other Party for any compensation, reimbursement, or
      damages of any kind as a result thereof, other than as expressly set out
      in this Agreement. The termination of this Agreement will not, however,
      relieve either Party of any obligations or liabilities incurred before the
      effective date of such termination.
	 	 
	8.4 	Effects of Termination. Upon the expiration
      or termination of this Agreement for any reason:
	 	 	 
	 	(a)	All licenses granted hereunder, will terminate and Licensee
      agrees to refrain thereafter from representing itself as a licensee and
      to return to Licensor all tangible items in its position or under its control
      evidencing the Technology and Confidential Information of Licensor,
	 	 	 
	 	(b)	Upon the expiration or earlier termination of this Agreement,
      Licensee will have the right to sell off unsold units of any Products for
      a period of one hundred eighty (180) days (the “Sell-Off Period”),
      provided that this Agreement has not been terminated as a result of Licensee’s
      defaults hereunder.
	 	 	 
	 	(c)	Each Party will return to the other Party all Confidential
      Information and other materials of the other that were held by each under
      the terms of this Agreement
	 	 	 
	 	(d)	Paragraphs 2.3. 6.3. and 7.1 will continue in frill force
      and effect. Nothing in this paragraph 8 will be construed so as to prevent
      or restrict a claim for damages. 
	 	 	 
	9.	General
	 	 	 
	9 1 	Entire Agreement. This Agreement constitutes
      the entire agreement between the Parties and supersedes all prior negotiations
      and agreements between the Parties concerning its subject matter.
	 	 	 
	9.2 	Further Assurances. Each Party will do
      such acts and execute such further documents, conveyances, deeds, assignments.
      transfers and the like, and will cause the doing of such acts and

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	 	will cause the execution of such further documents as are within its power
      as any other Party may in writing at any time and from time to time reasonably
      request be done and or executed. in order to give full effect to the provisions
      of this Agreement. 
	 	 
	9.3 	Assignment. Each Pare to this Agreement will not assign, transfer
      or dispose of all or any right or obligation under this Agreement to any
      third party without the prior written approval from the other Party, which
      will not be unreasonably withheld. 
	 	 
	9.4 	Waiver and Amendment. No failure or delay by either Party in exercising
      any of its rights under this Agreement will be considered to be a waiver
      of that right, and no waiver by either Party of a breach of any provision
      of this Agreement will be considered to be a waiver of any subsequent breach
      of the same or any other provision. No modification, amendment, supplement
      to or waiver of this Agreement or any Schedule hereunder, or any of their
      provisions will be binding upon the Parties hereto unless made in writing
      and duly signed by both Parties.
	 	 
	9.5 	Successors. This Agreement will endure to the benefit of and be
      binding upon each of the Parties and each of the Parties’ successors
      and permitted assigns.
	 	 
	9.6 	Severability. If any provision of this Agreement is invalid,
        illegal or unenforceable under any applicable statute or rule of law,
        it is to that extent to be considered omitted. The remainder of the Agreement
        will be valid and enforceable to the maximum extent possible.

	 	 
	9.7 	Headings. The section headings of this Agreement are inserted as
      a convenience only, and will not affect the interpretation of its provisions.
	 	 
	9.8 	Single, Plural, and Gender Terms. Where the context of the Agreement
      requires, singular terms will be considered plural, and plural terms will
      be considered singular and any words importing any gender include any other
      gender. 
	 	 
	9.9 	Notices. All notices and requests in connection with this Agreement
      will be deemed given as of the day they are received by messenger, delivery
      service, or by mail, postage prepaid, certified or registered, return receipt
      requested and addressed as follows: 

	 	FLOWRAY INC.	FLOWSTAR TECHNOLOGIES INC.
	 	8709 50th Avenue	8709 50th Avenue
	 	Edmonton, Alberta, T6E 5H4	Edmonton, Alberta, T6E 5H4
	 	 	 
	9. 10	Independent Parties. Nothing in this Agreement will
      be construed as creating any existing partnership, joint venture. fiduciary
      or agency relationship between the Parties, or as authorizing either Party
      to act for the other. The Parties to this Agreement are independent contractors.
    
	 	 
	9. 11 	Dispute Resolution. All disputes concerning the terms
      and conditions of this Agreement that cannot be resolved between the Parties
      will be subject to arbitration under the Arbitration Act of Alberta.
      This paragraph does not apply to situations where a Party has committed
      a major breach under the terms of this Agreement. 
	 	 
	9 12 	Governing Law and Forum. The validity. construction.
      and performance of this Agreement is governed by the laws of the Province
      of Alberta. Any legal action with respect to this Agreement

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	 	may be brought only in the Province of Alberta. The United Nations Convention
      on Contracts for the International Sale of Goods will not apply to this
      agreement or to the subject mailer hereof.
	 	 
	9. 13 	Currency. All references to dollar amounts in this Agreement or
      other money amount expressed in terms of lawful money of Canada. 
	 	 
	9. 14	Force Majeure. Neither Party xx ill be liable for any delay or
      default in performance hereunder due to any cause beyond its reasonable
      control, including but not limited to acts of God or the public enemy; laws.
      regulations. acts or requests of any government or any government officer
      or agent purporting to act under duly constituted authority; wars, floods,
      fires, storms, strikes, lockouts. interruptions of transportation, freight
      embargos, or failures, exhaustion or unavailability on the open market or
      delays in delivery of material, equipment or services necessary to the performance
      of any provision hereof; or happening of any unforeseen act, misfortune
      or casualty but which performance hereunder is delayed or prevented. 
	 	 
	9.15 	Costs. Except as otherwise provided in this Agreement, the Parties
      will bear their own costs of and incidental to the preparation, execution
      and implementation of this Agreement. 
	 	 
	9.16 	Counterparts. This Agreement may be executed in any number of counterparts.
      Each executed counterpart will be considered to be an original; all executed
      counterparts taken together will constitute one agreement. 
	 	 
	 	TO EVIDENCE THEIR AGREEMENT each Party has executed this Agreement as
      of the Effective Date. 

	The corporate seal of FLOWRAY INC. was	)	 
	affixed in the presence of:	)	 
	 	)	 
	/s/ Gregory Burghardt	)	c/s
	GREGORY BURGHARDT	)	 
	President and Authorized Signatory	)	 
	 	 	 
	 	 	 
	The corporate seal of FLOWSTAR	)	 
	TECHNOLOGIES INC. was affixed in the	)	 
	presence of:	)	 
	 	)	 
	/s/ Gregory Burghardt	)	c/s
	GREGORY BURGHARDT	)	 
	President and Authorized Signatory	)	 

7Filed by Automated Filing Services Inc. (604) 609-0244 - Wescorp Energy Inc. - Exhibit 10.2

 INTELLECTUAL PROPERTY PURCHASE AGREEMENT  

 THIS AGREEMENT dated August 30, 2003 (“Effective Date”)
  is between: 

 FLOWRAY INC.  

 An Alberta corporation with its principal place of business
  is at 

  8709—50 Avenue, Edmonton, Alberta, Canada, T6E 5H4

  (“Seller”) 

 AND 

 QUADRA PRODUCTS INTERNATIONAL INC~,  

  A Barbadian corporation with its principal place of business at Lauriston House,
  Lower Collymore Rock, 

  P.O. Box 1132, Bridgetown, Barbados 

  (“Buyer”) 

BACKGROUND 

	A.	The Seller is the owner of certain intellectual property
      as defined below.
	B.	The Seller has agreed to sell, and the Buyer has agreed to
      purchase, all the intellectual property of the Seller’s, as a going
      concern, on the terms and subject to the conditions provided in this Agreement

AGREEMENTS 

 For valuable consideration, the receipt of which each Party acknowledges,
  the Parties agree as follows: 

	1 	DEFINED TERMS. In this Agreement:
	 	 
	a) 	“Affiliate” means a corporation which controls, is controlled
      by, or is under common control of a Party; 
	 	 
	b) 	“Agreement”, “this Agreement”, and “the
      Agreement” means this agreement as it may be amended or supplemented
      periodically;
	 	 
	c) 	“Control” includes, without limitation, directly or indirectly
      owning shares having more than 50% of the votes entitled to be cast to elect
      the directors of a corporation and “Controlled” includes, without
      limitation, a corporation which is under Control; 
	 	 
	d) 	“Intellectual Property” means all Technical Information,
      Patents, Trade-marks, copyrights, industrial designs, trade-names, and other
      intellectual property rights whether registered or not, owed by or licensed
      to the Seller or its Affiliates, relating to the Products; 
	 	 
	e) 	“Parties” means Flowray Inc. and Quadra Products International
      Inc. collectively and “Party” means each individually.
    
	 	 
	f) 	“Patents” means all patents and inventions and applications
      thereof relating to the Products of the Seller or its Affiliates including,
      without limitation: all patents which may be issued from current applications
      (including divisions, reissues. renewals, re-examinations, continuations,
      continuations in part and extensions) applied for or registered in any jurisdiction
      in the Territory. ii. any patents owned or controlled by the Seller or its
      Affiliates; 
	 	 
	g) 	“Products” means any product owned or produced by the
      Seller, including but not limited to, any product used in the oil and gas
      well production marketplace.
	 	 
	h) 	“Technical Information” means all know-how and related
      technical knowledge of the Seller relating to the Products including, without
      limitation: 

 

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	 	i.	all trade secrets and other proprietary know-how, confidential
      information, public information, non-proprietary know-how and invention
      disclosures;
	 	 ii. 	any information of a scientific, technical or business nature
      regardless of form; 
	 	iii. 	all documents research, developmental, demonstration or engineering
      work;
	 	 iv. 	all information that can be or is used to define a design
      or process or procure, produce, support, or operate material and equipment;
	 	v.	methods of production; and 
	 	vi. 	all other drawings, blueprints, patterns, plans, flow charts,
      equipment, parts lists, software and procedures, specifications, formulas,
      designs, technical data, descriptions, related instructions, manuals, records
      and procedures.
	 	 
	 k) 	“Territory” means the entire
      world.
	 	 
	I) 	“Trademarks” means the trade-marks,
      trade names, designs, graphics, logos and other commercial symbols whether
      registered or not, owned by or licensed to the Seller or its Affiliates
      which are used in connection with the Products or the Seller.
	 	 
	2.	PURCHASE AND SALE OF ASSETS
	 	 
	2.1 	Description of Assets. Upon the terms
      and subject to the conditions of this Agreement, the Seller agrees to sell,
      assign and transfer to the Buyer, and the Buyer agrees to purchase from
      the Seller, as a going concern at closing, all the Intellectual Property
      of the Seller.
	 	 
	2.2 	Purchase Price. The purchase price payable by
      the Buyer to the Seller for the Intellectual Property will be six hundred
      thousand dollars ($600,000) (“Purchase Price”), payable by a promissory
      note to be completed, dated, executed, and provided to the Seller in the
      form of the promissory note attached to this Agreement as Schedule 1. (“Promissory
      Note”).
	 	 
	3.	REPRESENTATIONS OF THE SELLER
	 	 
	3.1 	Representations. The Seller represents
      to the Buyer as follows, with the intent that the Buyer will rely on the
      representations in entering into this Agreement, and in concluding the purchase
      and sale contemplated by this Agreement.
	 	 
	a)	 Capacity to Sell. The Seller is a corporation
      duly incorporated, validly existing and in good standing under the laws
      of Alberta, and has the power and capacity to own and dispose of the Intellectual
      Property and to carry on the Seller’s Business as now being conducted
      by it, and to enter into this Agreement and carry out its terms to the full
      extent.
	 	 
	b) 	Authority to Sell. The execution and delivery
      of this Agreement, and the completion of the transaction contemplated by
      this Agreement has been duly and validly authorized by all necessary corporate
      action on the part of the Seller, and this Agreement constitutes a legal,
      valid and binding obligation of the Seller enforceable against the Seller
      in accordance with its terms except as may be limited by laws of general
      application affecting the rights of creditors.
	 	 
	c) 	Sale Will Not Cause Default. Neither the
      execution nor delivery of this Agreement, nor the completion of the purchase
      and sale contemplated by this Agreement will violate any of the terms and
      provisions of the constating documents or bylaws or articles of the Seller,
      or any order, decree, statute, bylaw, regulation, covenant, restriction
      applicable to the Seller or the Intellectual Property.
	 	 
	d)	 Litigation. There is no litigation or
      administrative or governmental proceeding or inquiry pending or, to the
      knowledge of the Seller, threatened against or relating to the Seller, the
      Seller’s Business, or any of the Intellectual Property, nor does the
      Seller know of or have reasonable grounds that there is any basis for any
      such action, proceeding or inquiry.

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	e) 	Canadian Resident. The Seller is a resident of Canada within the
      meaning of the Income Tax Act (Canada). 
	 	 
	f)	Knowledge. The Seller has not done or omitted to do and is not
      aware of any act or thing which could prevent the Seller from transferring
      the Intellectual Property to the Buyer. 
	 	 
	4. 	REPRESENTATIONS OF THE BUYER 
	 	 
	4.1 	Representations. The Buyer represents to the Seller as follows,
      with the intent that the Seller will rely on these representations and warranties
      in entering into this Agreement, and in concluding the purchase and sale
      contemplated by this Agreement. 
	 	 
	a) 	Status of Buyer. The Buyer is a corporation duly incorporated,
      validly existing and in good standing under the laws of Barbados, has the
      power and capacity to enter into this Agreement and carry out its terms,.
    
	 	 
	b) 	Authority to Purchase. The execution and delivery of this Agreement
      and the completion of the transaction contemplated by this Agreement has
      been duly and validly authorized by all necessary corporate action on the
      part of the Buyer, and this Agreement constitutes a legal, valid and binding
      obligation of the Buyer enforceable against the Buyer in accordance with
      its terms except as limited by laws of general application affecting the
      rights of creditors. 
	 	 
	5. 	SELLER’S OBLIGATIONS 
	 	 
	5.1 	The Parties agree that the Seller will act as the patent and trademark
      agent on behalf of the Buyer until such time as any Intellectual Property
      registrations, in process as of the Effective Date, are completed. 
	 	 
	5.2 	In spite of paragraph 5.1 above, following the execution of this Agreement,
      the Parties acknowledge and agree that the Buyer is the rightful and legal
      owner of all Intellectual Property. 
	 	 
	6. 	INDEMNIFICATION 
	 	 
	The Seller will indemnify the Buyer against all
      actions, claims, proceedings, costs and damages and all legal costs or other
      expenses arising out of any breach of the above representations outlined
      in paragraph 3 above or out of a claim by a third party based on any facts
      which if substantiated would constitute such a breach. 
	 	 
	7. 	CLOSING 
	 	 
	7.1 	Time of Closing. Subject to the terms and conditions of this Agreement,
      the purchase and sale of the Intellectual Property will be completed on
      October 1, 2003. 
	 	 
	7.2 	Documents to be Delivered by the Seller. At the closing the Seller
      will deliver or cause to be delivered to the Buyer: 
	 	 
	a) 	all documents evidencing either registration of the Seller’s Intellectual
        Property rights or applications for Intellectual Property rights; 

	 	 
	b) 	certified copies of those resolutions of the shareholders and directors
      of the Seller required to be passed to authorize the execution, delivery
      and implementation of this Agreement and of all documents to be delivered
      by the Seller under this Agreement; and 

 4 

	7.3 	Documents to be Delivered by the Buyer. At the closing the Buyer
      will deliver or cause to be delivered: 
	 	 
	a) 	a promissory note in the form of Schedule 1 of this Agreement 
	 	 
	8. 	GENERAL 
	 	 
	8.1 	Further Assurances. The parties will execute such further and other
      documents and do such further and other things as may be necessary to carry
      out and give effect to the intent of this Agreement. 
	 	 
	8.2 	Notice. All notices required or permitted to be given under this
      Agreement will be in writing and personally delivered to the last known
      address of each Party or at such other address as may from time to time
      be notified by any of the Parties. 
	 	 
	8.3 	Entire Agreement. This Agreement constitutes the entire agreement
      between the parties and there are no representations, express or implied,
      statutory or otherwise and no collateral agreements other than as expressly
      set out or referred to in this Agreement. 
	 	 
	8.4 	Time of the Essence. Time will be the essence of this Agreement.
    
	 	 
	8.5 	Currency. All transactions referred to in this Agreement will be
      made in lawful currency of Canada. Any reference to cash in this Agreement
      includes a reference to cash, certified check, banker’s draft, wire,
      or electronic transfer. 
	 	 
	8.6 	Applicable Law. This Agreement, in all aspects, will be governed
      by and interpreted in accordance with the laws of Barbados. 
	 	 
	8.7 	Submission to Jurisdiction. Each Party will submit to the jurisdiction
      of the courts of Barbados. 
	 	 
	8.8	Dispute Resolution. All disputes arising in connection with this
      Agreement shall be finally settled under the Rules of Conciliation and Arbitration
      of the International Chamber of Commerce by one or more arbitrators appointed
      in accordance with the said Rules. The place of arbitration shall be Barbados.
    
	 	 
	8.9 	Successors and Assigns. This Agreement will enure to the benefit
      of and be binding upon the parties and their respective successors and assigns,
      except that no party may assign this Agreement without the prior consent
      of the other parties. 
	 	 
	8.10 	Counterparts. This Agreement may be signed by facsimile or original
      and executed in any number of counterparts, and each executed counterpart
      will be considered to be an original. All executed counterparts taken together
      will constitute one agreement. 

5

	FLOWRAY INC.	 
	By:	 
	 	 
	/s/ Gregory Burghardt	 
	Gregory Burghardt	 
	President and Authorized Signatory	 
	 	 
	 	 
	QUADRA PRODUCTS INTERNATIONAL	 
	INC.	 
	By:	 
	 	 
	/s/ Tyson Thompson	 
	TYSON THOMPSON	 
	Director and Authorized Signatory	 
	 	 
	 	 
	Acknowledged and consented to by the following:	 
	 	 
	 	 
	NEW MILLENNIUM ACQUISITIONS LTD.	 
	BY:	 
	 	 
	/s/ Curtis Sparrow	 
	Curtis Sparrow	 
	President and Authorized Signatory	 
	 	 
	By:	 
	 	 
	/s/ Gregory Burghardt	 
	Gregory Burghardt	 
	 	 
	 	 
	CTI DIVERSIFIED HOLDINGS, INC.	 
	By:	 
	 	 
	/s/ John Anderson	 
	John Anderson	 
	President and Authorized Signatory	 
	 	 
	 	 
	1049265 Alberta Ltd.	 
	By:	 
	 	 
	 /s/ John Anderson	 
	John Anderson	 
	President and Authorized Signatory	 

6

 SCHEDULE 1  

Promissory Note

CDN. $600,000

FOR VALUE RECEIVED, QUADRA PRODUCTS INTERNATIONAL INC. (the “Buyer”) hereby acknowledges itself indebted to FLOWRAY INC.. (the “Seller”), and promises to pay to the order of the Seller, the principal sum of $600,000 in lawful
money of Canada without interest. The Seller may not assign its right, title, and interest in, to and under this promissory note.

The Buyer retains its rights of set-off or counterclaim with respect to any payments required to be made under this promissory note.

 DATED: __________________________________________  

	QUADRA PRODUCTS INTERNATIONAL INC.	 
	By:	 
	 	 
	 	 
	TYSON THOMPSON	 
	Director and Authorized Signatory

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