Document:

Unassociated Document

     

     

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of this ______ day of
      ________________, 2005, among IDENTICA HOLDINGS CORPORATION., a Nevada
      corporation (the “Company”), and the other undersigned parties hereto
      (collectively, the “Purchasers”).

     

    1. Introduction.
      The
      Company and the Purchasers have today executed that certain Subscription
      Agreement (the “Subscription Agreement”), pursuant to which the Company has
      agreed, among other things, to issue an aggregate of its $1,000,000 principal
      amount of 8% Convertible Notes (the “Notes”) and Common Stock Purchase Warrants
      (the “Warrants”) to the Purchasers. The Notes, including the equivalent of one
      (1) years interest which may accrue on the outstanding principal balance
      thereof, are convertible into 3,085,713 shares (the “Conversion Shares”) of the
      Company’s common stock, par value .001 per share (the “Common Stock”), pursuant
      to the terms of the Notes. In addition, pursuant to the terms of the
      Subscription Agreement and the transactions contemplated thereby, the Company
      has agreed to issue to the Purchasers Common Stock Purchase Warrants exercisable
      for an aggregate of up to 1,428,571 shares of Common Stock (the “Warrant
      Shares”). The number of Conversions Shares and Warrant Shares is subject to
      adjustment upon the occurrence of stock splits, recapitalizations and similar
      events occurring after the date hereof. The Conversion Shares and the Warrant
      Shares are collectively herein referred to as the “Securities.” Certain
      capitalized terms used in this Agreement are defined in Section 3 hereof;
      references to sections shall be to sections of this Agreement.

     

    2. Registration
      under Securities Act.
      

     

    2.1 Mandatory
      Registration.
      Within
      one hundred and twenty (120) days of the date hereof, the Company shall prepare
      and file a registration statement on Form SB-2 or such other appropriate
      registration form of the Commission (the “Registration Statement”) to effect the
      registration under the Securities Act of all, but not less than all, of the
      Registrable Securities to permit the public disposition of such Registrable
      Securities in accordance with the intended method or methods of disposition
      specified by the Purchasers and their permitted assigns or transferees
      (collectively, the “Holders”); provided, however, such intended method of
      disposition shall not include an underwritten offering of the Registrable
      Securities. The Company shall use its best efforts to cause the Registration
      Statement to be declared effective by the Commission. The Company will pay
      all
      Registration Expenses in connection with the registration of the Registrable
      Securities. 

     

    2.2 Registration
      Procedures.
      In
      connection with the registration of the Registrable Securities under the
      Securities Act as provided in Section 2.1 the Company shall:

     

    (i) prepare
      and file with the Commission, within one hundred and twenty (120) days after
      the
      date hereof, the Registration Statement (including such audited financial
      statements as may be required by the Securities Act or the rules and regulations
      promulgated thereunder) and thereafter use its best efforts to cause such
      registration statement to be declared effective by the Commission;

     

    (ii) prepare
      and file with the Commission such amendments and supplements to the Registration
      Statement and the prospectus used in connection therewith as may be necessary
      to
      keep the Registration Statement effective and to comply with the provisions
      of
      the Securities Act with respect to the disposition of all Registrable Securities
      covered by the Registration Statement, until the earlier to occur of two (2)
      years after the date of this Agreement (subject to the right of the Company
      to
      suspend the effectiveness thereof for not more than sixty (60) consecutive
      days
      or an aggregate of one hundred twenty (120) days in such two (2) year period)
      or
      such time as all of the securities which are the subject of the Registration
      Statement cease to be Registrable Securities (such period, in each case, the
      “Registration Maintenance Period”);

     

    (iii) furnish
      to each seller of Registrable Securities covered by the Registration Statement
      such number of conformed copies of such registration statement and of each
      such
      amendment and supplement thereto (in each case including all exhibits), such
      number of copies of the prospectus contained in the Registration Statement
      (including each preliminary prospectus and any summary prospectus) and any
      other
      prospectus filed under Rule 424 under the Securities Act, in conformity with
      the
      requirements of the Securities Act, and such other documents, as such seller
      may
      reasonably request in order to facilitate the public sale or other disposition
      of the Registrable Securities owned by such seller;

     

    (iv) use
      its
      reasonable efforts to register or qualify all Registrable Securities and other
      securities covered by the Registration Statement under such other securities
      laws or blue sky laws as any seller thereof shall reasonably request, to keep
      such registrations or qualifications in effect for so long as the Registration
      Statement remains in effect, and take any other action which may be reasonably
      necessary to enable such seller to consummate the disposition in such
      jurisdictions of the securities owned by such seller, except that the Company
      shall not for any such purpose be required to qualify generally to do business
      as a foreign corporation in any jurisdiction wherein it would not but for the
      requirements of this subdivision (iv) be obligated to be so qualified or to
      consent to general service of process in any such jurisdiction;

     

    
      
        
        

      

      
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    (v) use
      its
      best efforts to cause all Registrable Securities covered by the Registration
      Statement to be registered with or approved by such other governmental agencies
      or authorities as may be necessary to enable the seller or sellers thereof
      to
      consummate the disposition of such Registrable Securities;

     

    (vi) notify
      each seller of the Registrable Securities covered by the Registration Statement
      promptly and confirm such advice in writing promptly after the Company has
      knowledge thereof:

     

    (A) when
      the
      Registration Statement, the prospectus or any prospectus supplement related
      thereto or post-effective amendment to the Registration Statement has been
      filed, and, with respect to the Registration Statement or any post-effective
      amendment thereto, when the same has become effective;

     

    (B) of
      any
      request by the Commission for amendments or supplements to the Registration
      Statement or the prospectus or for additional information;

     

    (C) of
      the
      issuance by the Commission of any stop order suspending the effectiveness of
      the
      Registration Statement or the initiation of any proceedings by any Person for
      that purpose; and

     

    (D) of
      the
      receipt by the Company of any notification with respect to the suspension of
      the
      qualification of any Registrable Securities for sale under the securities or
      blue sky laws of any jurisdiction or the initiation or threat of any proceeding
      for such purpose;

     

    (vii) notify
      each seller of Registrable Securities covered by the Registration Statement,
      at
      any time when a prospectus relating thereto is required to be delivered under
      the Securities Act, upon discovery that, or upon the happening of any event
      as a
      result of which, the prospectus included in the Registration Statement, as
      then
      in effect, includes an untrue statement of a material fact or omits to state
      any
      material fact required to be stated therein or necessary to make the statements
      therein not misleading in the light of the circumstances then existing, and
      at
      the request of any such seller promptly prepare and furnish to such seller
      a
      reasonable number of copies of a supplement to or an amendment of such
      prospectus as may be necessary so that, as thereafter delivered to the
      purchasers of such securities, such prospectus shall not include an untrue
      statement of a material fact or omit to state a material fact required to be
      stated therein or necessary to make the statements therein not misleading in
      the
      light of the circumstances then existing;

     

    (viii) use
      its
      best efforts to obtain the withdrawal of any order suspending the effectiveness
      of the Registration Statement at the earliest possible moment;

     

    (ix) otherwise
      use its best efforts to comply with all applicable rules and regulations of
      the
      Commission, and make available to its security holders, as soon as reasonably
      practicable, an earnings statement covering the period of at least twelve (12)
      months, but not more than eighteen (18) months, beginning with the first full
      calendar month after the effective date of the Registration Statement, which
      earnings statement shall satisfy the provisions of Section 11(a) of the
      Securities Act and Rule 158 thereunder;

     

    (x) enter
      into such agreements and take such other actions as the sellers of the
      Registrable Securities covered by the Registration Statement shall reasonably
      request in writing (at the expense of the requesting or benefiting sellers)
      in
      order to expedite or facilitate the disposition of such Registrable Securities;
      and

     

    (xi) use
      its
      best efforts to list all Registrable Securities covered by the Registration
      Statement on any securities exchange (if any) on which any of the Registrable
      Securities are then listed.

     

    
      
        
        

      

      
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    The
      Company may require each seller of Registrable Securities as to which any
      registration is being affected to furnish the Company such information regarding
      such seller and the distribution of such securities as the Company may from
      time
      to time reasonably request in writing.

     

    The
      Company will not file any registration statement pursuant to Section 2.1, or
      amendment thereto or any prospectus or any supplement thereto (including such
      documents incorporated by reference and proposed to be filed after the initial
      filing of the Registration Statement) to which a seller of Registrable
      Securities shall reasonably object, provided that the Company may file such
      document in a form required by law or upon the advice of its
      counsel.

     

    The
      Company represents and warrants to each holder of Registrable Securities that
      it
      has obtained all necessary waivers, consents and authorizations necessary to
      execute this Agreement and consummate the transactions contemplated hereby
      other
      than such waivers, consents and/or authorizations specifically contemplated
      by
      the Securities Purchase Agreement.

     

    Each
      Purchaser agrees that, upon receipt of any notice from the Company of the
      occurrence of any event of the kind described in subdivision (vii) of this
      Section 2.2, such Purchaser will forthwith discontinue such Purchaser’s
      disposition of Registrable Securities pursuant to the Registration Statement
      relating to such Registrable Securities until such Purchaser’s receipt of the
      copies of the supplemented or amended prospectus contemplated by subdivision
      (vii) of this Section 2.2 and, if so directed by the Company, will deliver
      to the Company all copies, other than permanent file copies, then in such
      Purchaser’s possession of the prospectus relating to such Registrable Securities
      current at the time of receipt of such notice.

     

    2.3 Preparation;
      Reasonable Investigation.
      In
      connection with the preparation and filing of the Registration Statement under
      the Securities Act pursuant to this Agreement, the Company will give the holders
      of Registrable Securities registered under the Registration Statement, the
      opportunity to participate in the preparation of such registration statement,
      each prospectus included therein or filed with the Commission, and each
      amendment thereof or supplement thereto, and will give each of them such access
      to its books and records and such opportunities to discuss the business of
      the
      Company with its officers and the independent public accountants who have
      certified its financial statements as shall be necessary to conduct a reasonable
      investigation within the meaning of the Securities Act.

     

    2.4 Indemnification.

     

    (a) Indemnification
      by the Company.
      The
      Company will, and hereby does agree to, indemnify and hold harmless the holder
      of any Registrable Securities covered by the Registration Statement, its
      directors and officers, and each other Person, if any, who controls such holder
      within the meaning of the Securities Act against any losses, claims, damages
      or
      liabilities, joint or several, to which such holder or any such director or
      officer or controlling person may become subject under the Securities Act or
      otherwise, insofar as such losses, claims, damages or liabilities (or actions
      or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based upon any untrue statement or alleged untrue statement of any
      material fact contained in the Registration Statement, any preliminary
      prospectus, final prospectus or summary prospectus contained therein, or any
      amendment or supplement thereto, or any omission or alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, and the Company will reimburse such holder
      and each such director, officer and controlling person for any legal or any
      other expenses reasonably incurred by them in connection with investigating
      or
      defending any such loss, claim, liability, action or proceeding, provided that
      the Company shall not be liable in any such case to the extent that any such
      loss, claim, damage, liability (or action or proceeding in respect thereof)
      or
      expense arises out of or is based upon an untrue statement or alleged untrue
      statement or omission or alleged omission made in the Registration Statement,
      any such preliminary prospectus, final prospectus, summary prospectus, amendment
      or supplement in reliance upon and in conformity with written information
      furnished to the Company by such holder stating that it is for use in the
      preparation thereof and, provided further that the Company shall not be liable
      to any Person to the extent that any such loss, claim, damage, liability (or
      action or proceeding in respect thereof) or expense arises out of such Person’s
      failure to send or give a copy of the final prospectus, as the same may be
      then
      supplemented or amended, within the time required by the Securities Act to
      the
      Person asserting the existence of an untrue statement or alleged untrue
      statement or omission or alleged omission at or prior to the written
      confirmation of the sale of Registrable Securities to such Person if such
      statement or omission was corrected in such final prospectus or an amendment
      or
      supplement thereto. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of such holder or any
      such
      director, officer or controlling person and shall survive the transfer of such
      securities by such holder.

    
      
        
        

      

      
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    (b) Indemnification
      by the Sellers.
      Each
      Purchaser agrees, and any other seller of Registrable Securities must agree,
      as
      a condition to including any Registrable Securities in the Registration
      Statement, to indemnify and hold harmless (in the same manner and to the same
      extent as set forth in subdivision (a) of this Section 2.4) the Company, each
      director of the Company, each officer of the Company and each other Person,
      if
      any, who controls the Company within the meaning of the Securities Act, with
      respect to any statement or alleged statement in or omission or alleged omission
      from such registration statement, any preliminary prospectus, final prospectus
      or summary prospectus contained therein, or any amendment or supplement thereto,
      if such statement or alleged statement or omission or alleged omission was
      made
      in reliance upon and in conformity with written information furnished to the
      Company through an instrument duly executed by such Purchaser or other seller
      specifically stating that it is for use in the preparation of such registration
      statement, preliminary prospectus, final prospectus, summary prospectus,
      amendment or supplement. This indemnity shall remain in full force and effect,
      regardless of any investigation made by or on behalf of the Company or any
      such
      director, officer or controlling person and shall survive the transfer of such
      securities by the Purchaser or other such seller.

     

    (c) Notices
      of Claims, etc.
      Promptly after receipt by an indemnified party of notice of the commencement
      of
      any action or proceeding involving a claim referred to in the preceding
      subdivisions of this Section 2.4, such indemnified party will, if a claim in
      respect thereof is to be made against an indemnifying party, give written notice
      to the latter of the commencement of such action, provided that the failure
      of
      any indemnified party to give notice as provided herein shall not relieve the
      indemnifying party of its obligations under the preceding subdivisions of this
      Section 2.4, except to the extent that the indemnifying party is actually
      prejudiced by such failure to give notice. In case any such action is brought
      against an indemnified party, unless in such indemnified party’s reasonable
      judgment a conflict of interest between such indemnified and indemnifying
      parties may exist in respect of such claim, the indemnifying party shall be
      entitled to participate in and to assume the defense thereof, jointly with
      any
      other indemnifying party similarly notified, to the extent that the indemnifying
      party may wish, with counsel reasonably satisfactory to such indemnified party,
      and after notice from the indemnifying party to such indemnified party of its
      election so to assume the defense thereof, the indemnifying party shall not
      be
      liable to such indemnified party for any legal or other expenses subsequently
      incurred by the latter in connection with the defense thereof other than
      reasonable costs of investigation. No indemnifying party shall, without the
      consent of the indemnified party, consent to entry of any judgment or enter
      into
      any settlement of any such action which does not include as an unconditional
      term thereof the giving by the claimant or plaintiff to such indemnified party
      of a release from all liability, or a covenant not to sue, in respect to such
      claim or litigation. No indemnified party shall consent to entry of any judgment
      or enter into any settlement of any such action the defense of which has been
      assumed by an indemnifying party without the consent of such indemnifying
      party.

     

    (d) Other
      Indemnification.
      Indemnification similar to that specified in the preceding subdivisions of
      this
      Section 2.4 (with appropriate modifications) shall be given by the Company
      and
      each seller of Registrable Securities with respect to any required registration
      or other qualification of securities under any Federal or state law or
      regulation of any governmental authority, other than the Securities
      Act.

     

    (e) Indemnification
      Payments.
      The
      indemnification required by this Section 2.4 shall be made by periodic payments
      of the amount thereof during the course of the investigation or defense, as
      and
      when bills are received or expense, loss, damage or liability is
      incurred.

     

    (f) Contribution.
      If the
      indemnification provided for in the preceding subdivisions of this Section
      2.4
      is unavailable to an indemnified party in respect of any expense, loss, claim,
      damage or liability referred to therein, then each indemnifying party, in lieu
      of indemnifying such indemnified party, shall contribute to the amount paid
      or
      payable by such indemnified party as a result of such expense, loss, claim,
      damage or liability (i) in such proportion as is appropriate to reflect the
      relative benefits received by the Company on the one hand and the holder on
      the
      other from the distribution of the Registrable Securities or (ii) if the
      allocation provided by clause (i) above is not permitted by applicable law,
      in
      such proportion as is appropriate to reflect not only the relative benefits
      referred to in clause (i) above but also the relative fault of the Company
      on the one hand and of the holder on the other in connection with the statements
      or omissions which resulted in such expense, loss, damage or liability, as
      well
      as any other relevant equitable considerations. The relative benefits received
      by the Company on the one hand and the holder on the other in connection with
      the distribution of the Registrable Securities shall be deemed to be in the
      same
      proportion as the total net proceeds received by the Company from the initial
      sale of the Registrable Securities by the Company to the Purchasers bear to
      the
      gain, if any, realized by all selling holders participating in such offering.
      The relative fault of the Company on the one hand and of the holder, on the
      other shall be determined by reference to, among other things, whether the
      untrue or alleged untrue statement of a material fact or omission to state
      a
      material fact relates to information supplied by the Company or by the holder
      and the parties’ relative intent, knowledge, access to information and
      opportunity to correct or prevent such statement or omission, provided that
      the
      foregoing contribution agreement shall not inure to the benefit of any
      indemnified party if indemnification would be unavailable to such indemnified
      party by reason of the provisions contained in the first sentence of subdivision
      (a) of this Section 2.4, and in no event shall the obligation of any
      indemnifying party to contribute under this subdivision (f) exceed the amount
      that such indemnifying party would have been obligated to pay by way of
      indemnification if the indemnification provided for under subdivision (b) of
      this Section 2.4 had been available under the circumstances.

     

    
      
        
        

      

      
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    The
      Company and the holders of Registrable Securities agree that it would not be
      just and equitable if contribution pursuant to this subdivision (f) were
      determined by pro rata allocation (even if the holders were treated as one
      entity for such purpose) or by any other method of allocation that does not
      take
      account of the equitable considerations referred to in the immediately preceding
      paragraph. The amount paid or payable by an indemnified party as a result of
      the
      losses, claims, damages and liabilities referred to in the immediately preceding
      paragraph shall be deemed to include, subject to the limitations set forth
      in
      the preceding sentence and subdivision (c) of this Section 2.4, any legal or
      other expenses reasonably incurred by such indemnified party in connection
      with
      investigating or defending any such action or claim.

     

    Notwithstanding
      the provisions of this subdivision (f), no holder of Registrable Securities
      shall be required to contribute any amount in excess of the amount by which
      the
      net proceeds received by such holder from the sale of Registrable Securities
      exceeds the amount of any damages that such holder has otherwise been required
      to pay by reason of such untrue or alleged untrue statement or omission. No
      Person guilty of fraudulent misrepresentation (within the meaning of Section
      11(f) of the Securities Act) shall be entitled to contribution from any person
      who was not guilty of such fraudulent misrepresentation.

     

    3. Definitions.
      As used
      herein, unless the context otherwise requires, the following terms have the
      following respective meanings:

     

    “Commission”:
      The
      Securities and Exchange Commission or any other Federal agency at the time
      administering the Securities Act.

     

    “Common
      Stock”:
      As
      defined in Section 1.

     

    “Company”:
      As
      defined in the introductory paragraph of this Agreement.

     

    “Conversion
      Shares”:
      As
      defined in Section 1.

     

    “Exchange
      Act”:
      The
      Securities Exchange Act of 1934, as amended, and the rules and regulations
      of
      the Commission thereunder.

     

    “Notes”:
      As
      defined in Section 1, such term to include any securities issued in substitution
      of or in addition to such Notes.

     

    “Person”:
      A
      corporation, association, partnership, organization, business, individual,
      governmental or political subdivision thereof or a governmental
      agency.

     

    “Purchasers”:
      As
      defined in the introductory paragraph of this Agreement.

     

    “Registrable
      Securities”:
      The
      Securities and any securities issued or issuable with respect to such Securities
      by way of stock dividend or stock split or in connection with a combination
      of
      shares, recapitalization, merger, consolidation or other reorganization or
      otherwise. Once issued such securities shall cease to be Registrable Securities
      when (a) a registration statement with respect to the sale of such securities
      shall have become effective under the Securities Act and such securities shall
      have been disposed of in accordance with such registration statement, (b) they
      shall have been distributed to the public pursuant to Rule 144 (or any successor
      provision) under the Securities Act, (c) they shall have been otherwise
      transferred, new certificates for them not bearing a legend restricting further
      transfer shall have been delivered by the Company and subsequent disposition
      of
      them shall not require registration or qualification of them under the
      Securities Act or any similar state law then in force, (d) they shall have
      ceased to be outstanding, (e) on the expiration of the Registration Maintenance
      Period or (f) any and all legends restricting transfer thereof have been removed
      in accordance with the provisions of Rule 144(k) (or any successor provision)
      under the Securities Act.

     

    
      
        
        

      

      
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    “Registration
      Expenses”:
      All
      expenses incident to the Company’s performance of or compliance with this
      Agreement, including, without limitation, all registration, filing and listing
      fees (if any), all fees and expenses of complying with securities or blue sky
      laws, all word processing, duplicating and printing expenses, messenger and
      delivery expenses, the fees and disbursements of counsel for the Company and
      of
      its independent public accountants, including the expenses of any special audits
      required by or incident to such performance and compliance, premiums and other
      costs of policies of insurance of the Company against liabilities arising out
      of
      the public offering of the Registrable Securities being registered, but
      excluding underwriting discounts and commissions and transfer taxes, if
      any.

     

    “Registration
      Maintenance Period”:
      As
      defined in Section 2.2(ii).

     

    “Securities
      Act”:
      The
      Securities Act of 1933, as amended, and the rules and regulations of the
      Commission thereunder.

     

    “Securities
      Purchase Agreement”:
      As
      defined in Section 1.

     

    “Warrant
      Shares”:
      As
      defined in Section 1.

     

    4. Rule
      144.
      The
      Company shall timely file the reports required to be filed by it under the
      Securities Act and the Exchange Act (including but not limited to the reports
      under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph
      (c)
      of Rule 144 adopted by the Commission under the Securities Act) and the rules
      and regulations adopted by the Commission thereunder (or, if the Company is
      not
      required to file such reports, will, upon the request of any holder of
      Registrable Securities, make publicly available other information) and will
      take
      such further action as any holder of Registrable Securities may reasonably
      request, all to the extent required from time to time to enable such holder
      to
      sell Registrable Securities without registration under the Securities Act within
      the limitation of the exemptions provided by (a) Rule 144 under the Securities
      Act, as such Rule may be amended from time to time, or (b) any similar rule
      or
      regulation hereafter adopted by the Commission. Upon the request of any holder
      of Registrable Securities, the Company will deliver to such holder a written
      statement as to whether it has complied with the requirements of this Section
      4.

     

    5. Amendments
      and Waivers.
      This
      Agreement may be amended and the Company may take any action herein prohibited,
      or omit to perform any act herein required to be performed by it, only if the
      Company shall have obtained the written consent to such amendment, action or
      omission to act, of the holder or holders of the sum of the 51% or more of
      the
      shares of (i) Registrable Securities issued at such time, plus (ii) Registrable
      Securities issuable upon exercise or conversion of the Securities then
      constituting derivative securities (if such Securities were not fully exchanged
      or converted in full as of the date such consent is sought). Each holder of
      any
      Registrable Securities at the time or thereafter outstanding shall be bound
      by
      any consent authorized by this Section 5, whether or not such Registrable
      Securities shall have been marked to indicate such consent.

     

    6. Nominees
      for Beneficial Owners.
      In the
      event that any Registrable Securities are held by a nominee for the beneficial
      owner thereof, the beneficial owner thereof may, at its election, be treated
      as
      the holder of such Registrable Securities for purposes of any request or other
      action by any holder or holders of Registrable Securities pursuant to this
      Agreement or any determination of any number or percentage of shares of
      Registrable Securities held by any holder or holders of Registrable Securities
      contemplated by this Agreement. If the beneficial owner of any Registrable
      Securities so elects, the Company may require assurances reasonably satisfactory
      to it of such owner’s beneficial ownership of such Registrable
      Securities.

     

    7. Notices.
      Except
      as otherwise provided in this Agreement, all notices, requests and other
      communications to any Person provided for hereunder shall be in writing and
      shall be given to such Person (a) in the case of a party hereto other than
      the
      Company, addressed to such party in the manner set forth in the Securities
      Purchase Agreement or at such other address as such party shall have furnished
      to the Company in writing, or (b) in the case of any other holder of Registrable
      Securities, at the address that such holder shall have furnished to the Company
      in writing, or, until any such other holder so furnishes to the Company an
      address, then to and at the address of the last holder of such Registrable
      Securities who has furnished an address to the Company, or (c) in the case
      of
      the Company, at the address set forth on the signature page hereto, to the
      attention of its President, or at such other address, or to the attention of
      such other officer, as the Company shall have furnished to each holder of
      Registrable Securities at the time outstanding. Each such notice, request or
      other communication shall be effective (i) if given by mail, 72 hours after
      such
      communication is deposited in the mails with first class postage prepaid,
      addressed as aforesaid or (ii) if given by any other means (including, without
      limitation, by fax or air courier), when delivered at the address specified
      above, provided that any such notice, request or communication shall not be
      effective until received.

     

    
      
        
        

      

      
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          6
          -

        
          

        

      

      
        
        

      

    

     

    8. Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of and be enforceable
      by the parties hereto. In addition, and whether or not any express assignment
      shall have been made, the provisions of this Agreement which are for the benefit
      of the parties hereto other than the Company shall also be for the benefit
      of
      and enforceable by any subsequent holder of any Registrable Securities. Each
      of
      the Holders of the Registrable Securities agrees, by accepting any portion
      of
      the Registrable Securities after the date hereof, to the provisions of this
      Agreement including, without limitation, appointment of the Sellers’
Representative to act on behalf of such Holder pursuant to the terms hereof
      which such actions shall be made in the good faith discretion of the Sellers’
Representative and be binding on all persons for all purposes.

     

    9. Descriptive
      Headings.
      The
      descriptive headings of the several sections and paragraphs of this Agreement
      are inserted for reference only and shall not limit or otherwise affect the
      meaning hereof.

     

    10. GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS
      OF
      THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF FLORIDA WITHOUT
      REFERENCE TO THE PRINCIPLES OF CONFLICTS OF LAWS.

     

    11. Counterparts.
      This
      Agreement may be executed by facsimile and may be signed simultaneously in
      any
      number of counterparts, each of which shall be deemed an original, but all
      such
      counterparts shall together constitute one and the same instrument.

     

    12. Entire
      Agreement.
      This
      Agreement embodies the entire agreement and understanding between the Company
      and each other party hereto relating to the subject matter hereof and supersedes
      all prior agreements and understandings relating to such subject
      matter.

     

    13. Severability.
      If any
      provision of this Agreement, or the application of such provisions to any Person
      or circumstance, shall be held invalid, the remainder of this Agreement, or
      the
      application of such provision to Persons or circumstances other than those
      to
      which it is held invalid, shall not be affected thereby.

     

    

    [Signature
      Page Follows]

    

    
      
        
        

      

      
        -
          7
          -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed and
      delivered by their respective officers thereunto duly authorized as of the
      date
      first above written.

    

    

      
        	 	
                IDENTICA
                  HOLDINGS CORPORATION.

              
	 	 	 
	 	
                By:

              	 
	 	
                Name:

              	 
	 	
                Title:

              	 
	 	 	 
	 	 	 
	 	
                By:

              	 
	 	
                Name:

              	 
	 	
                Title:

              	 
	 	 	 
	 	
                PURCHASERS

              
	 	 	 
	 	 
	 	
                Print
                  Name:

              	 
	 	 	 
	 	 	 
	 	 
	 	
                Print
                  Name:

              	 
	 	 	 
	 	 	 
	 	 
	 	
                Print
                  Name:

              	 
	 	 	 
	 	 	 
	 	 
	 	
                Print
                  Name:

              	 

      
 

    

    

    [Signature
      page to Registration Rights Agreement]

    

    
      
        
        

      

      
        -
          8
          -Unassociated Document

    
      	
              

            	
               

               

              Spartan
                Securities Group, Ltd.

              100
                Second Avenue South, Suite 300N

              St.
                Petersburg, Florida, 33701 
                Tel
                  727-502-0508 Fax 727-502-0858

              

            	 

    

    
 

    Thursday,
      September 28, 2006

    

    Ed
      Foster

    CEO

    Identica
      Corp.

    130
      Bridgeland Avenue, Suite 100

    Toronto,
      Ontario M6A-1Z4

    

    Dear
      Mr.
      Foster:

    

    Subject
      to a satisfactory due diligence review and in contemplation of a “best efforts”
private placement of $2 million this financial advisory and investment banking
      agreement (the “Agreement”) is made and entered into as of the date above (the
“Effective Date”), by and between Spartan Securities Group, Ltd., a Florida
      Limited Partnership (“Spartan”) and Identica Corp., an Ontario, Canada
      Corporation, and its subsidiaries, affiliates, portfolio companies and/or
      investments (collectively hereinafter the "Company"), for the purpose of
      defining and acknowledging the terms of this Agreement.

    

    In
      consideration of the mutual promises made herein and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto agree as follows:

    

    
      	1.  	
              Exclusivity.
                The Company hereby engages Spartan on a non-exclusive basis for the
                term
                specified in Paragraph 2 hereof to render services
                to the Company as its corporate finance consultant, financial advisor
                and
                investment banker upon
                the terms and conditions set forth herein. Any private or public
                placement
                of securities will be considered to be on an exclusive basis, unless
                waived, once the company has agreed in writing to the specific terms
                of
                the given placement or underwriting. Once the company has agreed
                to the
                specific terms of the given placement or underwriting the company
                hereby
                grants a right-of-first-refusal to Spartan on any contemplated financing
                with a period of 10 days to accept the terms and conditions of any
                bona
                fide offer of funding from any third party. Any exception to this
                clause,
                made by mutual agreement, will be acknowledged in writing to the
                company.
                

            

    

    

    
      	2.  	
              Term
                and Termination.
                This Agreement shall be effective for a period of two years (the
“Initial
                Term”), commencing upon the Effective Date of this Agreement and may be
                extended as the parties shall mutually agree in writing (the “Term”),
                subject to the establishment of arrangements for additional compensation
                and other appropriate terms for such extension. Beginning 60 days
                after
                the Effective Date of this Agreement, either party may terminate
                Spartan’s
                engagement hereunder at any time by giving the other party at least
                60
                days prior written notice, subject to the provisions of Paragraph
                4
                through 17, all of which shall survive any termination of this
                Agreement.

            

    

    

    
      	3.  	
              Services
                to be Provided.
                During the Term of this Agreement, Spartan shall provide the Company
                with
                such regular and customary consulting advice as is reasonably requested
                by
                the Company, provided that Spartan shall not be required to undertake
                duties not reasonably within the scope of the financial advisory
                or
                investment banking services contemplated by this Agreement.
                

            

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    It
      is
      understood and acknowledged by the parties that the value of Spartan advice
      is
      not readily quantifiable, and that Spartan shall be obligated to render advice
      upon the request of the Company, in good faith, but shall not be obligated
      to
      spend any specific amount of time in so doing. 

    

    Spartan’s
      duties may include, but will not necessarily be limited to, providing
      recommendations and assisting in the following:

    

    
      	(a)  	
              Rendering
                advice with regard to internal operations,
                including:

            

    

    
      	i.  	
              the
                formation of corporate goals and their
                implementation;

            

    

    
      	ii.  	
              the
                Company's financial structure and its divisions or
                subsidiaries;

            

    

    
      	iii.  	
              securing,
                when and if necessary and possible, additional financing through
                banks
                and/or insurance companies; and

            

    

    
      	iv.  	
              corporate
                organization and personnel; and

            

    

    

    
      	(b)  	
              Rendering
                advice with regard to any of the following corporate finance
                matters:

            

    

    
      	i.  	
              changes
                in the capitalization of the
                Company;

            

    

    
      	ii.  	
              changes
                in the Company's corporate
                structure;

            

    

    
      	iii.  	
              redistribution
                of shareholdings of the Company's
                stock;

            

    

    
      	iv.  	
              sales
                of securities in private
                transactions;

            

    

    
      	v.  	
              alternative
                uses of corporate assets; and

            

    

    
      	vi.  	
              structure
                and use of debt; and

            

    

    

    
      	(c)  	
              Rendering
                advice, assistance and introduction to third parties with regard
                to any of
                the following merger, acquisition, joint venture or strategic alliance
                activities:

            

    

    
      	i.  	
              the
                acquisition and/or merger of or with other
                companies;

            

    

    
      	ii.  	
              joint
                ventures or strategic alliances with other
                companies;

            

    

    
      	iii.  	
              divestiture
                or any other similar transaction;
                and

            

    

    
      	iv.  	
              the
                sale of the Company itself (or any significant percentage, assets,
                subsidiaries or affiliates thereof); and

            

    

    

    
      	(d)  	
              Rendering
                advice and/or assistance with regard to any of the following capital
                raising activities:

            

    

    
      	i.  	
              bank
                financing or any other financing from financial institutions or
                individuals (including but not limited to revolving credit facilities,
                lines of credit, term loans, rediscounted credit facilities, senior
                and
                junior loans, whether collateralized or unsecured,
                etc.);

            

    

    
      	ii.  	
              act
                as Placement Agent for any private offering of the Company's securities;
                and act as underwriter in any public offering of the Company's
                securities.

            

    

     

    
      	
              4.

            	
              Compensation.
                In consideration for the services rendered by Spartan to the Company
                pursuant to this Agreement (and in addition to the expenses provided
                for
                in Paragraph 7 hereof), the Company shall compensate Spartan as
                follows:

            

    

     

    
      	(a)  	
              Monthly
                Retainer.
                Should the Company complete an equity financing not less than
                $1,000,000.00, with the assistance of Spartan, the Company shall
                pay
                Spartan a monthly financial advisory fee of one thousand five hundred
                dollars ($1,500.00) per month for the following two years from the
                date of
                funding, the first payment of which shall be due on the first day
                of the
                month immediately following the funding. This fee includes a minimum
                of 10
                hours monthly of financial advisory services. Additional time may
                be
                billed at $150.00. the company acknowledges this fee is not compensation
                for capital raising or listing services, but solely for continuing
                advisory services.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              Merger
                and Acquisition, Joint Venture, Strategic Alliance
                Transactions.
                If any Transaction (as hereinafter defined) is consummated during
                the Term
                of this Agreement with any parties introduced by Spartan during the
                Term,
                the Company shall pay at the closing of or as received on each such
                Transaction a cash fee equal to the sum of:

            

    

     

    
      	i  	
              five
                percent (5%) of the first five million dollars of the Aggregate
                Consideration (as herein after defined) of a Transaction,
                

            

    

     

    
      	ii  	
              four
                percent (4%) of the second five million dollars of the Aggregate
                Consideration of a Transaction,

            

    

     

    
      	iii  	
              three
                percent (3%) of the third five million dollars of the Aggregate
                Consideration of a Transaction, and

            

    

     

    
      	iv  	
              two
                percent (2%) of the Aggregate Consideration over fifteen million
                dollars.

            

    

     

    
      	(c)  	
               Aggregate
                Consideration
                is
                defined and computed as follows:

            

    

     

    
      	i  	
              The
                total sale proceeds and other consideration received (which shall
                be
                deemed to include amounts paid into escrow) by the Company and/or
                its
                shareholders or by a target and/or its shareholders upon the consummation
                of the Transaction (including payments made in installments), inclusive
                of
                cash, securities, notes, consulting agreements and agreements not
                to
                compete, plus the total value of liabilities
                assumed.

            

    

     

    
      	ii  	
              If
                a portion of such consideration includes contingency payments (whether
                or
                not related to future earnings or operations), Aggregate Consideration
                will include 75% of the face value of such payments without regard
                to
                whether the conditions for the payment of such contingent amounts
                have
                been or may be satisfied.

            

    

     

    
      	iii  	
              If
                the Aggregate Consideration for the Transaction consists in whole
                or in
                part of securities, for the purposes of calculating the amount of
                Aggregate Consideration, the value of such securities will be the
                value
                thereof on the day preceding the consummation of the Transaction
                as the
                Company and Spartan agree; provided, however, that in the case of
                securities for which there is a public trading market, the value
                will be
                determined by the average last sales price for such securities for
                the
                last twenty (20) days prior to such consummation as determined by
                Spartan
                and communicated by Spartan to the Company. If there is no public
                trading
                market for such securities but securities have been sold in a private
                placement within the past 24 months, the fair market value shall
                be based
                upon the gross sales price in the last such private placement.
                

            

    

     

    For
      other
      property received or receivable as a part of the Aggregate Consideration and
      the
      parties are unable to agree, then each of Spartan and the Company will select
      an
      investment banking firm respected in the merger and acquisition field to
      determine a value and the midpoint between the two values established by the
      two
      independent experts will be the fair market value for the purpose
      hereof.

     

    
      	(d)  	
               For
                the purposes of this Agreement, any of the following transactions
                shall
                constitute a “Transaction”: 

            

    

     

    
      	i  	
              the
                sale, outside of the ordinary course of business, of the Company
                or a
                material portion of its assets, securities, or business by means
                of a
                merger, consolidation, joint venture, exchange offer or purchase
                or sale
                of stock or assets, or any transaction resulting in any change of
                control
                of the Company or its assets or business;
                or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	ii  	
              the
                purchase by the Company, outside of the ordinary course of business,
                of
                another company or a material portion of its assets, securities or
                business by means of a merger, consolidation, joint venture, exchange
                offer or purchase or sale of stock or
                assets.

            

    

     

    
      	(e)  	
              Third-Party
                Debt Placements.
                In
                the event Spartan is involved in originating a debt facility, inclusive
                of
                revolving credit facilities, lines of credit, term loans, rediscounted
                credit facilities, senior and junior loans, whether collateralized
                or
                unsecured, etc., (the “Credit Facility”) with a bank or other
                institutional lender (the “Lending Source”), the Company will pay Spartan
                a fee of two percent (2%) of the maximum amount of the Credit Facility.
                

            

    

     

    

    In
      the
      event Spartan is involved in arranging an increase in a Credit Facility, the
      Company will pay Spartan a fee of two percent (2%) of the increase from the
      maximum amount of the existing Credit Facility to the maximum amount of the
      new
      Credit Facility. 

    

    
      	(f)  	
              Equity
                Placements and Underwritings (“Equity Financing
                Transaction”).
                The Company shall grant Spartan a right of first refusal (i) to act
                as
                Placement Agent for any private offering of the Company's securities;
                and
                (ii) to act as underwriter in any public offering of the Company's
                securities. Subject to negotiated definitive underwriting agreements
                covering both private and public financing transactions the following
                fee
                schedule is the maximum that may be due with respect to any sale
                or
                distribution of securities arising from this engagement as
                follows:

            

    

    

    
      	i.  	
              Private
                Placement of Equity (or securities convertible into
                equity)

            

    

    

    
      	
              Transaction
                Fee

            	 	
              Eight
                percent (8%) of gross proceeds raised in the placement or
                placements

            
	 	 	 
	
              Warrant
                Coverage

            	 	
              Amount
                equal to fifteen percent (15%) of the offering

            
	 	 	 
	
              Non-Accountable
                Allowance

            	 Expense	
              Two
                percent (2%) of gross proceeds

            
	 	 	 

    

    

    
      	i.  	
              Public
                Offering of Equity

            

    

    

    
      	
              Transaction
                Fee

            	 	
              Ten
                percent (10%) of gross proceeds raised in the placement or
                placements

            
	 	 	 
	
              Warrant
                Coverage

            	 	
              Amount
                equal to ten percent (10%) of the offering

            
	 	 	 
	
              Non-Accountable 
                Allowance

            	 Expense	
              Two
                percent (2%) of gross proceeds

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    All
      Warrants shall expire five (5) years from the date of issuance and shall have
      cashless exercise provisions, “piggy back” and demand registration rights and,
      anti-dilution provisions on any forward splits or material increases of ten
      (10)
      percent or more of the common stock, acceptable to Spartan. In lieu of paying
      the Shares Purchase Price in cash, Spartan may, at its option, deliver to the
      Company for cancellation shares of common stock or other outstanding securities
      of the Company convertible into the Company's common stock (including rights
      represented by this Warrant) that have a value equal to the Shares Purchase
      Price. 

     

    Once
      the
      companies stock is publicly traded, and the stock price has maintained an
      average closing price of 200% of the offering price for a period of 10 trading
      days, the warrant holder will be required to exercise the warrants in cash
      or by
      way of cashless exercise.

     

    The
      determination of value shall be made by agreement between the Holder and the
      Company, but, failing such agreement, by reference to the trading price of
      the
      Company's common stock on the date of exercise. The Shares Purchase Price may
      also be paid, at Holder's option, by the Holder canceling any indebtedness
      of
      the Company to the Holder.

     

    
      	(g)  	
              Fairness
                Opinions, Valuations and Other Services.
                Fees and expenses payable to Spartan with regard to fairness opinions,
                valuations and services not specifically set forth herein will be
                determined by mutual agreement in writing at such time as the nature
                and
                terms of such transactions are
                determined.

            

    

     

    
      	(h)  	
              Other
                Factors Affecting Compensation . 

            

    

    

    
      	(i)  	
              Fees
                and commissions will be paid at the rate of 30% of the applicable
                fee
                structure contained herein if the investing party has been introduced
                by
                the issuer. In the case of Public or Private Offerings, this fee
                reduction
                does not include non-accountable expenses that may be
                applicable.

            

    

    

    
      	(j)  	
              In
                the case of Public or Private Offerings it is understood that there
                will
                be a definitive agreement covering compensation for the specific
                transaction anticipated and the parties agree and accept that this
                may
                include a reduction of compensation from this schedule as agreed
                by the
                parties and or as may be approved by
                NASD.

            

    

    

    
      	5.  	
              Payment
                of Fees.
                All fees to be paid pursuant to this Agreement are due and payable
                to
                Spartan in cash. The
                Company hereby irrevocably authorizes and instructs third-party funding
                sources, including Lending Sources and private equity groups, (the
                “Funding Sources”), to pay directly to Spartan cash sums provided for in
                Paragraph 4 above and further authorizes Spartan to notify the
                Funding Sources of this provision and the terms of this Agreement
                for
                purposes of this provision and payment of the sums due under Paragraph
                4
                of this Agreement. The Company agrees that Spartan is a direct beneficiary
                of any eventual financing agreement between the Company and the Funding
                Sources. The Company hereby expressly agrees that in the event any
                dispute
                or disagreement arises with respect to the payment to Spartan of
                the sums
                due under Paragraph 4 of this Agreement, including any dispute regarding
                the amount due Spartan under this Agreement, that the Financing Sources
                shall immediately place all disputed sums in an interest bearing
                Escrow
                account pending resolution of the dispute. The Company hereby irrevocably
                authorizes and instructs the Funding Sources to escrow such disputed
                sums.
                The Company further agrees that any sums due under this Agreement
                which
                are not in dispute shall not be escrowed, but shall be paid upon
                closing
                to Spartan by the Funding Sources as provided for under the terms
                of this
                Agreement.

            

    

     

    
      	6.  	
              Continuing
                Obligation.
                In the event that this Agreement shall not be renewed or if terminated
                for
                any reason notwithstanding any such renewal or termination, Spartan
                shall
                be entitled to a full fee as provided under Paragraph 4 hereof, for
                any
                transaction for which the discussions were initiated during the Term
                of
                this Agreement and which is consummated within a period of twelve
                (12)
                months after non-renewal or termination of this Agreement.
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	7.  	
              Expense
                Reimbursement.
                In addition to the compensation payable hereunder, and regardless
                whether
                any transaction set forth in Paragraphs 3 or 4 hereof is proposed
                or
                consummated, the Company shall reimburse Spartan for all pre-approved
                fees
                and disbursements of Spartan’s counsel and Spartan’s travel and
                out-of-pocket expenses incurred in connection with the services performed
                by Spartan pursuant to this
                Agreement.

            

    

    

    
      	8.  	
              Default
                by the Company.
                In the event that the Company fails to pay the retainer set forth
                in
                Paragraph 4 (a) hereof for any month by the end of such month, Spartan
                may
                at any time prior to the payment in full of any such monthly payment,
                demand payment of all or any portion of the past due monthly retainers
                in
                Common Stock of the Company valued at one-half (1/2) the fair market
                value
                thereof determined on the date such demand is made by Spartan on
                the
                Company. 

            

    

    

    Fair
      market value shall be determined as follows: (i) if the Common Stock is quoted
      on the National Association of Securities Dealers, Inc. Automated Quotation
      System (“NASDAQ”), the fair market value shall be the closing inside bid price
      of the Common Stock as quoted on NASDAQ; (ii) if the Common Stock is traded
      in
      the over the counter market, but not quoted on NASDAQ, the fair market value
      shall be the average closing bid price of the Common Stock; 

    

    (i)
      if
      the Common Stock is publicly traded in any market other than NASDAQ, the fair
      market value shall be the closing bid price of the Common Stock; 

    

    (ii)
      if
      the Common Stock is not publicly traded, but the Company has concluded a private
      placement of shares of Common Stock within the past 24 months, the fair market
      value shall be based upon the gross sales price of shares of Common Stock in
      the
      last such private placement. In the event that Spartan makes such a demand
      for
      payment in Common Stock, then the Company shall either make all past due
      payments to Spartan within five (5) days of receipt of such notice or promptly
      shall deliver restricted shares of its Common Stock to Spartan in payment of
      such retainer obligations. Spartan agrees that any Common Stock so received
      will
      be purchased for investment purposes only and not with a view to distribution.
      

    

    
      	9.  	
              Confidentiality.
                The Company acknowledges that all opinions and advice (written or
                oral)
                given by Spartan to the Company in connection with Spartan’s engagement
                are intended solely for the benefit and use of the Company in considering
                the transaction to which they relate, and the Company agrees that
                no
                person or entity other than the Company shall be entitled to make
                use of
                or rely upon the advice of Spartan to be given hereunder, and no
                such
                opinion or advice shall be used for any other purpose or reproduced,
                disseminated, quoted or referred to at any time, in any manner or
                for any
                purpose, nor may the Company make any public references to Spartan,
                or use
                Spartan’s name in any annual reports or any other reports or releases of
                the Company without Spartan’s prior written consent, which shall not be
                unreasonably withheld. withheld.

            

    

    

    
      	10.  	
              Independent
                Contractor.
                The Company acknowledges that Spartan is in the business of providing
                financial services and consulting advice to others. Nothing herein
                contained shall be construed to limit or restrict Spartan in conducting
                such business with respect to others, or in rendering such advice
                to
                others. Spartan shall perform its services hereunder as an independent
                contractor and not as an employee of the Company or an affiliate
                thereof.
                It is expressly understood and agreed to by the parties hereto that
                Spartan shall have no authority to act for, represent or bind the
                Company
                or any affiliate thereof in any manner, except as may be agreed to
                expressly by the Company in writing from time to
                time.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	11.  	
              Reliance.
                The Company recognizes and confirms that, in advising the Company
                and in
                fulfilling its engagement hereunder, Spartan will use and rely on
                data,
                material and other information furnished to Spartan by the Company.
                The
                Company acknowledges and agrees that in performing its services under
                this
                engagement, Spartan may rely upon the data, material and other information
                supplied by the Company without independently verifying the accuracy,
                completeness or veracity of same.

            

    

    

    
      	12.  	
              Notices.
                Any notice or communication permitted or required hereunder shall
                be in
                writing and shall be deemed sufficiently given if hand-delivered
                or sent
                (i) postage prepaid by registered mail, return receipt requested,
                or (ii)
                by facsimile, to the respective parties as set forth below, or to
                such
                other address as either party may notify the other of in
                writing:

            

    

    

    

    If
      to the
      Company,
      to:                         
Identica
      Corp.

    130
      Bridgeland Avenue, Suite 100

    Toronto,
      Ontario M6A-1Z4

    Attention:
      Ed Foster

    

    If
      to
      Spartan,
      to:                                   
Spartan
      Securities Group, Ltd.

    100
      Second Avenue South, Suite 300N

    St.
      Petersburg, Florida 33701

    Attention: 
      Micah
      Eldred

    Title:           
      Senior
      Managing Partner

    

    
      	13.  	
              Indemnification.
                Spartan and the Company have entered into a separate letter agreement
                dated the date hereof (the “Indemnity Letter”), providing for the
                indemnification of Spartan by the Company in connection with Spartan’s
                engagement hereunder.

            

    

    

    
      	14.  	
              Counterparts.
                This Agreement may be executed in any number of counterparts, each
                of
                which together shall constitute one and the same original
                document.

            

    

    

    
      	15.  	
              Assignability
                and Modification.
                This Agreement is not assignable and cannot be modified or changed,
                nor
                can any of its provisions be waived, except by the mutual agreement
                in
                writing of all parties.

            

    

    

                    
      CHOICE
      OF
      LAW AND VENUE

     

    This
      Agreement and the rights of the parties hereunder shall be governed by and
      construed in accordance with the laws of the state of the defendant including
      all matters of construction, validity, performance, and enforcement and without
      giving effect to the principles of conflict of laws. Any legal action brought
      by
      the Company against the Consultant shall be brought in the State of Florida,
      County of Hillsborough and any action brought by the Consultant against the
      Company shall be in the State of Florida, County of Pinellas.

    

    
      	16.  	
              Severability.
                Each paragraph, term or provision of this Agreement shall be considered
                severable and if, for any reason, any paragraph, term or provision
                is
                determined to be invalid or contrary to any existing or future law
                or
                regulation, such will not impair the operation, or affect the remaining
                portions, of this Agreement.

            

    

    

    
      	17.  	
              Dispute
                    Resolution.
                The parties shall attempt amicably to resolve disagreements by negotiating
                with each other. In the event that the matter is not amicably resolved
                through negotiation, any controversy, dispute or disagreement arising
                out
                of or relating to this Agreement (a “Controversy”) shall be submitted to a
                nationally recognized arbitration association, such as J.A.M.S./Endispute
                or the American Arbitration Association, for final binding arbitration,
                which shall be conducted by a single arbitrator (the “Arbitrator”) in
                Tampa, Florida, pursuant to J.A.M.S./Endispute’s Arbitration Rules (the
                “Rules”). Notwithstanding anything to the contrary contained in the Rules,
                the Arbitrator shall not award consequential, exemplary, incidental,
                punitive or special damages.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    If
      any
      party shall desire relief of any nature whatsoever from any other party as
      a
      result of any Controversy, such party will initiate such arbitration proceedings
      within a reasonable time, but in no event more than one (1) year after the
      facts
      underlying said Controversy first arise or become known to the party seeking
      relief (whichever is later). The failure of such party to institute such
      proceedings within said period shall be deemed a full waiver of any claim for
      such relief. Arbitrator may award the prevailing party its costs for the
      arbitration proceeding; including its reasonable attorneys' fees and costs.
      

    The
      parties agree that the decision and award of the Arbitrator shall be taken,
      but
      that such award or decision may be entered as a judgment and enforced
      in
      any court having jurisdiction over the party against whom enforcement is sought.
      Any equitable relief awarded under this paragraph shall be dissolved upon
      issuance of the Arbitrator’s decision and order. 

    

    Notwithstanding
      the provisions for dispute resolution, in the event of a breach or threatened
      breach by any party to this Agreement, either party shall be entitled in order
      to maintain the status quo and pending the outcome of any arbitration pursuant
      to this Agreement, seek an injunction or similar equitable relief restraining
      either party, as the case may be, from committing or continuing any such breach
      or threatened breach or granting specific performance of any act required to
      be
      performed without the necessity of showing that money damages would not afford
      an adequate remedy and without the necessity of posting any bond or other
      security. 

    

    The
      parties hereto hereby consent to the jurisdiction listed above for any
      proceedings under this paragraph. The parties agree that the availability of
      arbitration in the Agreement shall not be used by any party as grounds for
      the
      dismissal of an injunctive action instituted by the other party.

    

    Very
      truly yours,

    

    SPARTAN
      SECURITIES GROUP, LTD.

    

    

    By: 
      /s/ Micah
      Eldred                                 

    Name:
       Micah
      Eldred

    Title: Senior
      Managing Partner

    

    

    Accepted
      and Agreed to as of the date first written above:

    Identica
      Corp.

    

    By:
      /s/ Ed
      Foster                                               

    Name:
       Ed
      Foster

    Title: CEO

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	TO:	 	
              Spartan
                Securities Group, Ltd.September
                28, 2006 
                405
                  Central Avenue, Suite 202

                St.
                  Petersburg, Florida 33701

              

            

    

    
    

    In
      connection with your engagement pursuant to our letter agreement of even date
      herewith (the “Engagement”), we agree to indemnify and hold harmless Spartan
      Securities Group, Ltd. (“Spartan” or “you”) and its affiliates, the respective
      directors, officers, partners, agents and employees of Spartan and its
      affiliates, and each other person, if any, controlling Spartan or any of its
      affiliates (collectively, “Indemnified Persons”), from and against, and we agree
      that no Indemnified Person shall have any liability to us or our owners,
      parents, affiliates, security holders or creditors for, any losses, claims,
      damages or liabilities (including actions or proceedings in respect thereof)
      (collectively “Losses”) (a) related to or arising out of (i) our actions or
      failures to act (including statements or omissions made, or information
      provided, by us or our agents) or (ii) actions or failures to act by an
      Indemnified Person with our consent or in reliance on our actions or failures
      to
      act, or (b) otherwise related to or arising out of the Engagement or your
      performance thereof, except that this clause (b) shall not apply to any Losses
      that are finally judicially determined to have resulted primarily from your
      bad
      faith or gross negligence. If such indemnification is for any reason not
      available or insufficient to hold you harmless, we agree to contribute to the
      Losses involved in such proportion as is appropriate to reflect the relative
      benefits received (or anticipated to be received) by us and by you with respect
      to the Engagement or, if such allocation is judicially determined unavailable,
      in such proportion as is appropriate to reflect other equitable considerations
      such as the relative fault of us on the one hand and of you on the other hand;
      provided,
      however,
      that,
      to the extent permitted by applicable law, the Indemnified Persons shall not
      be
      responsible for amounts which in the aggregate are in excess of the amount
      of
      all fees actually received by you from us in connection with the Engagement.
      Relative benefits to us, on the one hand, and you, on the other hand, with
      respect to the Engagement shall be deemed to be in the same proportion as (i)
      the total value paid or proposed to be paid or received or proposed to be
      received by us or our security holders, as the case may be, pursuant to the
      transaction(s), whether or not consummated, contemplated by the Engagement
      bears
      to (ii) all fees paid or proposed to be paid to you by us in connection with
      the
      Engagement. 

     

    We
      will
      advance each Indemnified Person all expenses (including reasonable fees and
      disbursements of counsel) as they are incurred by such Indemnified Person in
      connection with investigating, preparing for or defending any action, claim,
      investigation, inquiry, arbitration or other proceeding (“Action”) referred to
      above (or enforcing this agreement or any related engagement agreement), whether
      or not in connection with pending or threatened litigation in which any
      Indemnified Person is a party, and whether or not such Action is initiated
      or
      brought by you . We further agree that we will not settle or compromise or
      consent to the entry of any judgment in any pending or threatened Action in
      respect of which indemnification may be sought hereunder (whether or not an
      Indemnified Person is a party therein) unless we have given you reasonable
      prior
      written notice thereof and used all reasonable efforts, after consultation
      with
      you, to obtain an unconditional release of each Indemnified Person from all
      liability arising therefrom. In the event we are considering entering into
      one
      or a series of transactions involving a merger or other business combination
      or
      a dissolution or liquidation of all or a significant portion of our assets,
      we
      shall promptly notify you in writing. If requested by Spartan, we shall then
      establish alternative means of providing for our obligations set forth herein
      on
      terms and conditions reasonably satisfactory to Spartan. 

     

    If
      multiple claims are brought against you in any Action with respect to at least
      one of which indemnification is permitted under applicable law and provided
      for
      under this agreement, we agree that any judgment, arbitration award or other
      monetary award shall be conclusively deemed to be based on claims as to which
      indemnification is permitted and provided for. Our obligations hereunder shall
      be in addition to any rights that any Indemnified Person may have at common
      law
      or otherwise. Solely for the purpose of enforcing this agreement, we hereby
      consent to personal jurisdiction and to service and venue in any court in which
      any claim which is subject to this agreement is brought by or against any
      Indemnified Person. We acknowledge that in connection with the Engagement you
      are acting as an independent contractor with duties owing solely to us. YOU
      HEREBY AGREE, AND WE HEREBY AGREE ON OUR OWN BEHALF AND, TO THE EXTENT PERMITTED
      BY APPLICABLE LAW, ON BEHALF OF OUR SECURITY HOLDERS, TO WAIVE ANY RIGHT TO
      TRIAL BY JURY WITH RESPECT TO ANY CLAIM, COUNTER-CLAIM OR ACTION ARISING OUT
      OF
      THE ENGAGEMENT, YOUR PERFORMANCE THEREOF OR THIS AGREEMENT.

     

    The
      provisions of this agreement shall apply to the Engagement (including related
      activities prior to the date hereof) and any modification thereof and shall
      remain in full force and effect regardless of the completion or termination
      of
      the Engagement. This agreement and any other agreements relating to the
      Engagement shall be under seal, governed by and construed in accordance with
      the
      laws of State of Florida, without regard to conflicts of law principles
      thereof.

     

     

    
      	 	
              Very
                truly yours,

            
	
              Accepted
                and Agreed:

            	 	 
	 	 	 
	
              Spartan
                Securities Group, Ltd.

            	
              Client:

            	
              Identica
                Corp.

            
	 	 	 
	
              By:

            	
            	
              By:

            	 
	
              Name:

            	
              Micah
                Eldred

            	
              Name:

            	
              Ed
                Foster

            
	
              Title:

            	
              Senior
                Managing Partner

            	
              Title:

            	
              CEO

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