Document:

Unassociated Document

    
      	
              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    ASSET
      PURCHASE AND LIABILITYASSUMPTION AGREEMENT

     

    This
      Agreement entered into this the 18th
      day of
      November, 2005
      by
Identica
      Corp.,
      an
      Ontario, Canada corporation (hereinafter "Seller"), and Identica
      Holdings Corporation,
      a
      Nevada, USA corporation (hereinafter "Buyer").

     

    WHEREAS,
      Seller
      operates a business engaged primarily in the selling of security devices;
      and

     

    WHEREAS,
      Seller
      owns equipment, inventory, contract rights, and miscellaneous assets used in
      connection with the operations of its business; and

     

    WHEREAS,
      Buyer
      desires to acquire substantially all of the assets used or useful, or intended
      to be used in the operation of Seller’s business and Seller desires to sell such
      assets to Buyer; and

     

    WHEREAS,
      all
      monies referenced and described herein are expressed as United States Currency;
      and

     

    NOW,
      THEREFORE,
      in
      consideration of mutual covenants contained herein and other good and valuable
      consideration the receipt and sufficiency of which is hereby acknowledged,
      the
      parties agree as follows:

     

    
      
        SECTION
          1.ASSETS
          PURCHASED; LIABILITIES ASSUMED

      

    

     

    
      	
              1.1

            	
              ASSETS
                PURCHASED. Seller
                agrees to sell to Buyer and Buyer agrees to purchase from Seller,
                on the
                terms and conditions set forth in this Agreement the following assets
                ("Assets"): All Assets listed in Schedule “A” attached
                hereto.

            

    

     

    
      	
              1.2

            	
              ASSUMPTION
                OF CERTAIN LIABILITIES. 

            

    

     

    
      	 	
              Buyer
                shall assume all liabilities (“Liabilities”): All listed in Schedule “B”
                attached hereto.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    SECTION
      2. EXCLUDED
      ASSETS

     

    Excluded
      from this sale and purchase are Seller's cash, notes receivable, prepaid
      accounts and any and all other Assets except those listed in Schedule
      "A".

     

    SECTION
      3. EXCLUDED
      LIABILITIES

     

    Excluded
      from this sale and purchase are any Liabilities not listed in Schedule
“B”.

     

    SECTION
      4. PURCHASE
      PRICE FOR ASSETS

     

    The
      purchase price for the Assets shall be the dollar values of the Assets listed
      in
      Schedule “A” 

     

    SECTION
      5. PAYMENT
      OF PURCHASE PRICE

     

    The
      purchase price of the Assets listed in Schedule “A” shall be the assumption of
      Liabilities in Schedule “B”.

     

    The
      Seller shall issue shares as provided in Schedule “C”. and upon closing the sum
      of Two (2) US dollars the sufficiency of which is acknowledged by both Buyer
      and
      Seller. 

     

    SECTION
      6. SELLER'S
      REPRESENTATIONS AND WARRANTIES

     

    
      	
              6.1

            	
              CORPORATE
                EXISTENCE.
                Seller is now and on the date of closing will be a corporation duly
                organized and validly existing and in good standing under the laws
                of the
                Province of Ontario. Seller has all requisite corporate power and
                authority to own, operate and/or lease the assets, as the case may
                be, and
                to carry on its business as now being
                conducted.

            

    

     

    
      	6.2	
              AUTHORIZATION. 
                The execution, delivery and performance of this Agreement have been
                duly
                authorized and approved by the Board of Directors of Seller and this
                Agreement constitutes a valid and binding agreement of Seller in
                accordance with its terms.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    
      	6.3	
              TITLE
                TO ASSETS. 
                Except as described in this Agreement, Seller holds good and marketable
                title to the Assets, free and clear of restrictions on or conditions
                to
                transfer or assign, and free and clear of liens, pledges, charges
                or
                encumbrances.

            

    

     

    
      	
              6.4

            	
              BROKERS
                AND FINDERS.
                Seller has not employed any broker or finder in connection with the
                transaction contemplated by this Agreement nor taken action that
                would
                give rise to valid claims against any party for a brokerage commission,
                finder's fee or other like payment.

            

    

     

    
      	
              6.5

            	
              TRANSFER
                NOT SUBJECT TO ENCUMBRANCES OR THIRD PARTY APPROVAL. The
                execution and delivery of this Agreement by Seller and the consummation
                of
                the contemplated transactions, will not result in the creation or
                imposition of any valid lien, charge or encumbrance on any of the
                assets,
                and will not require the authorization, consent, or approval of any
                third
                party, including any governmental division or regulatory agency,
                except
                that Seller shall provide an agreement from TechSphere Co., Ltd.
                (“TechSphere”) for the assignment to Buyer of the all rights currently
                within the TechSphere distribution agreement with
                Seller.

            

    

     

    
      	
              6.6

            	
              LABOR
                AGREEMENTS AND DISPUTES.
                Seller is neither a party to, nor otherwise subject to any collective
                bargaining or other agreement governing the wages, hours, in terms
                of
                employment of Seller's employees. Seller is not aware of any labor
                dispute(s) or labor trouble(s) involving employees of
                Seller.

            

    

     

    
      	
              6.7

            	
              NONCANCELABLE
                CONTRACTS.
                At
                the time of closing, there will be no material leases, employment
                contracts, contracts for services, or maintenance, or other similar
                contracts, existing or related to or connected with the operation
                of
                Seller's business not cancelable within ninety (90)
                days.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    
      	
              6.8

            	
              LITIGATION.
                Seller has no knowledge of any claim, litigation, proceeding, or
                investigation pending or threatened against Seller that might result
                in
                any material adverse change in the business or condition of the assets
                being conveyed under this
                Agreement.

            

    

     

    
      	
              6.9

            	
              ACCURACY
                OF REPRESENTATIONS AND WARRANTIES. None
                of the representations or warranties of Seller contain or will contain
                any
                untrue statements of a material fact or omit or will omit or misstate
                a
                material fact necessary in order to make statements in this Agreement
                not
                misleading. Seller knows of no fact that has resulted, or that in
                the
                reasonable judgment of Seller will result in material change in the
                business, operations, or assets of Seller that has not been set forth
                in
                this Agreement or otherwise disclosed to
                Buyer.

            

    

     

    SECTION
      7.  REPRESENTATIONS
      OF BUYER

     

    Buyer
      represents and warrants as follows:

     

    
      	
              7.1

            	
              CORPORATE
                EXISTENCE.
                Buyer is a corporation duly organized, validly existing, and in good
                standing under the laws of the State of Nevada, USA. Buyer has all
                requisite corporate power and authority to enter into this Agreement
                and
                perform its obligations hereunder.

            

    

     

    
      	7.2	
              AUTHORIZATION. 
                The execution, delivery and performance of this Agreement have been
                duly
                authorized and approved by the Board of Directors of Buyer, and this
                Agreement constitutes a valid and binding agreement of Buyer in accordance
                with its terms.

            

    

     

    
      	
              7.3

            	
              BROKERS
                AND FINDERS.
                Buyer has not employed any broker or finder in connection with the
                transactions contemplated by this Agreement and has taken no action
                that
                would give rise to a valid claim against any party for a brokerage
                commission, finder(s)’ fee or other like
                payment.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    
      	
              7.4

            	
              ACCURACY
                OF REPRESENTATIONS AND WARRANTIES.
                None of the representations or warranties of Buyer contain or will
                contain
                any untrue statements(s) of a material fact or omit or will omit
                or
                misstate a material fact necessary in order to make the statements
                contained herein not misleading.

            

    

     

    SECTION
      8. COVENANTS
      OF SELLER

     

    
      	
              8.1

            	
              SELLER'S
                OPERATION OF BUSINESS PRIOR TO CLOSING.
                Seller agrees that between the date of this Agreement and the date
                of
                closing, Seller will:

            

    

     

    
      	 	
              8.1.1

            	
              Use
                its best efforts to preserve its business organization and preserve
                the
                continued operation of its business with its customers, suppliers,
                and
                others having business relations with
                Seller;

            

    

     

    
      	 	
              8.1.2

            	
              Not
                assign, sell, lease or otherwise transfer or dispose of any of the
                assets
                listed in Schedule "A", except to
                Buyer;

            

    

     

    
      	 	
              8.1.3

            	
              Maintain
                all of its purchased Assets other than inventories in their present
                conditions, reasonable wear and tear and ordinary usage excepted
                and
                maintain the inventories at levels normally
                maintained.

            

    

     

    
      	
              8.2

            	
              ACCESS
                TO INFORMATION.
                At
                reasonable times prior to the closing date, Seller will provide Buyer
                and
                its representatives with reasonable access during business hours
                to the
                assets, titles, contracts and records of Seller and furnish such
                additional information concerning Seller's business as Buyer may
                from time
                to time reasonably request.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    
      	
              8.3

            	
              EMPLOYEE
                MATTERS.

            

    

     

    Prior
      to
      the closing date, Seller will not, without Buyer's prior written consent, enter
      into any material agreements with its employees or contractors, increase the
      rate of compensation or bonus payable to or to become payable to any employee
      or
      effect any change in the management, personnel policies, or employee benefits,
      except in accordance with existing employment practices.

     

    
      	
              8.4

            	
              CONDITIONS
                AND BEST EFFORTS.
                Seller will use its best efforts to effectuate the transactions
                contemplated by this Agreement and to fulfill all the conditions
                of the
                obligations of Seller under this Agreement, and will do all acts
                and
                things as may be required to carry out its respective obligations
                under
                this Agreement and to consummate and complete this
                Agreement.

            

    

     

    SECTION
      9. COVENANTS
      OF BUYER

     

    
      	
              9.1

            	
              CONDITIONS
                AND BEST EFFORTS.
                Buyer will use its best efforts to effectuate the transaction contemplated
                by this Agreement and to fulfill all the conditions of Buyer's obligations
                under this Agreement, and shall do all acts and things as may be
                required
                to carry out Buyer's obligations and to consummate this
                Agreement.

            

    

     

    
      	
              9.2

            	
              CONFIDENTIAL
                INFORMATION.
                If
                for any reason the sale of Assets is not closed, Buyer will not disclose
                to third parties any confidential information received from Seller
                in the
                course of investigating, negotiating, and performing the transactions
                contemplated by this Agreement.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    SECTION
      10. CONDITIONS
      PRECEDENT TO BUYER'S OBLIGATIONS

     

    The
      obligation of Buyer to purchase the Assets and assume the listed Liabilities
      is
      subject to the fulfillment, prior to or at the closing date, of each of the
      following conditions, any one or portion of which may be waived in writing
      by
      Buyer:

     

    Seller
      shall not have violated nor shall have failed to perform in accordance with
      any
      covenant contained in this Agreement.

     

    
      	
              10.1

            	
              CONDITIONS
                OF THE BUSINESS.
                There shall have been no material adverse change in the manner in
                operation of Seller's business prior to the closing
                date.

            

    

     

    
      	
              10.2

            	
              NO
                SUITS OR ACTIONS.
                At
                the closing date, no suit, action or other proceeding shall have
                been
                threatened or instituted to restrain, enjoin or otherwise prevent
                the
                consummation of this Agreement or the contemplated
                transactions.

            

    

     

    SECTION
      11. CONDITIONS
      PRECEDENT TO OBLIGATIONS OF SELLER 

     

    The
      obligations of Seller to consummate the transactions contemplated by this
      Agreement are subject to the fulfillment, prior to or on the closing date,
      of
      the following condition, which may be waived in writing by Seller:

     

    All
      representations and warranties made in this Agreement by Buyer shall be true
      as
      of the closing date as fully as though such representations and warranties
      have
      been made on and as of the closing date, and Buyer shall not have violated
      nor
      failed to perform in accordance with any covenant contained in this
      Agreement.

     

    SECTION
      12. BUYER'S
      ACCEPTANCE

     

    Buyer
      represents and acknowledges that it has entered into this Agreement on the
      basis
      of its own examination, personal knowledge, and opinion the value of the
      business. Buyer has not relied on any representations made by Seller other
      than
      those specified in this Agreement. Buyer further acknowledges that Seller has
      made no agreement or promise to repair or improve any equipment or other
      personal property being sold to Buyer under this Agreement, and that Buyer
      takes
      all such property in the condition existing on the date of this Agreement,
      except as otherwise provided in this Agreement.

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    SECTION
      13. INDEMNIFICATION
      AND SURVIVAL

     

    
      	
              13.1

            	
              SURVIVAL
                OF REPRESENTATIONS AND WARRANTIES.
                All representations and warranties made in this Agreement shall survive
                the closing of this Agreement, except that any party to whom a
                representation of warranty has been made in this Agreement shall
                be deemed
                to have waived any misrepresentation or breach of representation
                or
                warranty which such party had knowledge prior to closing. Any party
                learning of a misrepresentation or breach of representation or warranty
                under this Agreement shall immediately give notice thereof to all
                other
                parties to this Agreement. The representations and warranties in
                this
                Agreement shall terminate three (3) years from the closing date,
                and such
                representations or warranties shall thereafter be without force or
                effect,
                except any claim with respect to which notice has been given to the
                party
                to be charged prior to such expiration
                date.

            

    

     

    
      	
              13.2

            	
              SELLERS
                INDEMNIFICATION.

            

    

     

    
      	
            	13.2.1	
              Seller
                hereby agrees to indemnify and hold Buyer, its successors and assigns
                harmless from and against:

            

    

     

    
      	 	
              (1)

            	
              Any
                and all claims, liabilities and obligations of every kind and description,
                contingent or otherwise, arising out of or related to the operation
                of
                Seller's business prior to the close of business on the day before
                the
                closing date, except for claims, liabilities and obligations of Seller
                expressly assumed by Buyer under this Agreement or paid by insurance
                maintained by Seller or Buyer.

            

    

     

    
      	 	
              (2)

            	
              Any
                and all damage or deficiency resulting from any material misrepresentation
                or breach of warranty or covenant, or nonfulfillment of any agreement
                on
                the part of Seller under this
                Agreement.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    
      	
              13.3

            	
              BUYER’S
                INDEMNIFICATION.
                Buyer agrees to defend, indemnify and hold harmless Seller from and
                against:

            

    

     

    
      	 	
              13.3.1

            	
              Any
                all claims, liabilities and obligations of every kind and description
                arising out of or related to the operation of the business following
                closing or arising out of Buyer’s failure to perform obligations of Seller
                assumed by Buyer pursuant to this
                Agreement.

            

    

     

    
      	 	
              13.3.2

            	
              Any
                all damage or deficiency resulting from any material misrepresentation,
                breach of warranty or covenant, or nonfulfillment of any agreement
                on the
                part of Buyer under this Agreement.

            

    

     

    SECTION
      14. CLOSING

     

    
      	
              14.1

            	
              TIME
                AND PLACE.
                This Agreement shall be closed at the offices of Identica Corp. 130
                Bridgeland Avenue, Suite 100, Toronto, Ontario Canada M6A 1Z4 on
                or before
                the 19th
                day of November 2005,
                or such other time as the parties may agree in writing. If, however,
                the
                closing has not occurred because of a breech of contract by one or
                more of
                the parties, the breaching party or parties shall remain liable for
                breech
                of contract.

            

    

     

    
      	
              14.2

            	
              OBLIGATIONS
                OF SELLER AT CLOSING.
                At
                closing, Seller shall deliver to buyer the
                following:

            

    

     

    
      	 	
              14.2.1

            	
              Bills
                of Sale, Assignments, properly endorsed Certificates of Title, and
                other
                instruments of transfer, and form and substance reasonably satisfactory
                to
                Buyer, necessary to transfer and convey all of the Assets to
                Buyer.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    
      	 	
              14.2.3

            	
              Such
                other certificates and documents as may be called for by the provisions
                of
                this Agreement.

            

    

     

    
      	
              14.3

            	
              OBLIGATIONS
                OF BUYER AT CLOSING. At
                closing Buyer shall deliver to Seller the
                following:

            

    

     

    
      	 	
              14.3.2

            	
              All
                consideration described herein.

            

    

     

    
      	 	
              14.3.3

            	
              Such
                other certificates and documents as may be called for by the provisions
                of
                this Agreement.

            

    

     

    SECTION
      15. RIGHTS
      AND OBLIGATIONS SUBSEQUENT TO CLOSING

     

    
      	
              15.1

            	
              BOOKS
                AND RECORDS.
                This sale does include the books of account and records of Seller's
                business. Seller or its agents shall have access to such books and
                records
                and may make copies thereof. Buyer will exercise reasonable care
                in the
                safekeeping of such records.

            

    

     

    
      	
              15.2

            	
              SELLER'S
                RIGHT TO PAY.
                In
                the event Buyer fails to make any payment of taxes, assessments,
                insurance
                premiums, or other charges that Buyer is required to pay to third
                parties
                under this Agreement, Seller shall have the right, but not the obligation,
                to pay the same. Buyer will reimburse Seller for any such payment
                immediately upon Seller's demand, together with interest at the same
                rate
                provided in the Note from the date of Seller's payment until Buyer
                reimburses Seller. Any such payment by Seller shall not constitute
                a
                waiver by Seller of any remedy available by reason of Buyer's default
                for
                failure to make the payments.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    SECTION
      16. BULK SALES ACT. 

     

    Buyer
      waives compliance by Seller with the Bulk Sales Act, if any (the “Act”). In the
      event any creditor of Seller claims the benefit of the Bulk Sales Act as against
      Buyer or any of the Assets being conveyed to Buyer under this Agreement, Seller
      shall immediately pay or otherwise satisfy such claim or undertake its defense.
      Seller shall indemnify and hold Buyer harmless from and against any and all
      loss, expense, or damage resulting from the failure to comply with the Bulk
      Transfer law. If Seller fails to comply with the provision of this Section
      16
      and Buyer is required to pay any creditor of Seller in order to protect the
      property purchased under this Agreement from claims or liens of Seller's
      creditors, except those assumed by Buyer, the Buyer may offset the amount it
      pays against the balance due Seller by furnishing to the Seller proof of such
      payment in the form of a receipt from the creditor involved.

     

    SECTION
      17. TERMINATION OF AGREEMENT

     

    
      	17.1	
              BY
                MUTUAL CONSENT. This
                Agreement may be terminated by mutual written consent of Buyer and
                Seller.

            

    

     

    
      	
              17.2

            	
              BREACH
                OF REPRESENTATIONS AND WARRANTIES; FAILURE OF
                CONDITIONS.
                Buyer may elect by notice to Seller, and Seller may elect by notice
                to
                Buyer, to terminate this Agreement
                if;

            

    

     

    
      	 	
              17.2.1

            	
              The
                terminating party shall have discovered a material error, misstatement,
                or
                omission in the representations and warranties made in this Agreement
                by
                the other party which shall not have been cured by such other party
                within
                fifteen (15) days after written notice to such other party specifying
                in
                detail such asserted error, misstatement, or omission, or by the
                closing
                date, whichever first occurs.

            

    

     

    
      	
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              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    
      	 	
              17.2.2

            	
              All
                of the conditions precedent of the terminating party's obligations
                under
                this Agreement as set forth in either Section 10 or 11, as the case
                may
                be, have not occurred and have not been waived by the terminating
                party on
                or prior to the closing date.

            

    

     

    
      	
              17.3

            	
              CLOSING
                NOTWITHSTANDING THE RIGHT TO TERMINATE.
                The party with a right to terminate this Agreement pursuant to Section
                16.2.1 or 16.2.2 shall not be bound to exercise such right, and its
                failure to exercise such right shall not constitute a waiver of any
                other
                right it may have under this Agreement, including but not limited
                to
                remedies for breach of a representation, warranty, or
                covenant.

            

    

     

    SECTION
      18. MISCELLANEOUS

     

    
      	
              18.1

            	
              The
                provisions of this Agreement shall be binding upon and inure to the
                benefit of the heirs, personal representatives, successors, and assigns
                of
                the parties.

            

    

     

    
      	
              18.2

            	
              Any
                notice or other communication required or permitted to be given under
                this
                Agreement shall be in writing and shall be mailed by certified mail,
                return receipt requested, postage prepaid, addressed to the parties
                as
                follows:

            

    

     

    
      	 	
              BUYER:
                

            	
              SELLER:

            
	 	
              Identica
                Holdings Corporation 

            	
              Identica
                Corp.

            
	 	
              3675
                S. West Shore Blvd.

            	
              130
                Bridgeland Avenue, Suite 100

            
	 	
              Tampa,
                Florida 33629 USA

            	
              Toronto,
                Ontario M6A 1Z4 Canada

            

    

     

    All
      notices and other communications shall be deemed to be given at the expiration
      of three (3) days after the date of mailing. The addresses to which notices
      or
      other communications shall be mailed may be changed from time to time by giving
      written notice to the other parties as provided above.

     

    
      	
              18.3

            	
              In
                the event of a default under this Agreement, the defaulting party
                shall
                reimburse the non-defaulting party or parties for all costs and expenses
                reasonably incurred by the non-defaulting party or parties in connection
                with the default, including without limitation attorney fees.
                Additionally, in the event a suit or action is filed to enforce this
                Agreement or with respect to this Agreement, the prevailing party
                or
                parties shall be reimbursed by the other party for all costs and
                expenses
                incurred in connection with the suit or action, including without
                limitation reasonable attorney fees at the trial level and on
                appeal.

            

    

     

    
      	
              Initial(s)
                _________

            	
              Initial(s)
                _________

            	
              Page
                12
                of 13

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Identica
                Holdings Corporation.

            	
              Identica
                Corp.

            

    

    
      	
              18.4

            	
              No
                waiver of any provision of this Agreement shall be deemed, or shall
                constitute, a waiver of any other provision, whether or not similar,
                nor
                shall any waiver constitute a continuing waiver. No waiver shall
                be
                binding unless executed in writing by the party making the
                waiver.

            

    

     

    
      	
              18.5

            	
              This
                Agreement shall be governed by and shall be construed in accordance
                with
                the laws of the Province of
                Ontario.

            

    

     

    
      	
              18.6

            	
              This
                Agreement constitutes the entire agreement between the parties pertaining
                to its subject matter and it supersedes all prior contemporaneous
                agreements, representations, and understandings of the parties. No
                supplement, modification, or amendment of this Agreement shall be
                binding
                unless executed in writing by all
                parties.

            

    

     

    Witness
      the signatures of the parties this 18th day
      of
      November, 2005.

     

    
      	
              Identica
                Holdings Corporation:

            	 	
              Identica
                Corp.:

            
	 	 	 
	
              BY:

            	 	
              BY:

            
	 	 	 
	
              Edward
                A, Foster, CEO

            	 	
              Terry
                Wheeler, President

            
	
              Name

            	 	
              Name

            
	 	 	 
	/s/
              Edward  Foster	 	/s/
              Terry Wheeler
	
              Signature

            	 	
              Signature

            

    

     

    

      
        	
                Initial(s)
                  _________

              	
                Initial(s)
                  _________

              	
                Page
                  13
                  of 13Unassociated Document

     

    
 

    
      	    	
              

            

    

     

    *CONFIDENTIAL
      PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
      COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
      TREATMENT.

     

    DISTRIBUTORSHIP
      AGREEMENT

     

    

     

    This
      DISTRIBUTORSHIP AGREEMENT (the “Agreement”) is made and entered into this May 6,
      2005 by and between TechSphere Co., Ltd. a corporation duly organized and
      existing under the laws of the Republic of Korea, and having its principal
      office at Wonil Bd. 4F, 980-54, Bangbae-dong Seocho-gu Seoul Korea (hereinafter
      referred to as "Manufacturer") and Identica Corp. a corporation duly organized
      and existing under the laws of Canada, and having its principal office at 130
      Bridgeland Avenue Suite 100, Toronto, Ontario, Canada M6A 1Z4, (hereinafter
      referred to as "Distributor").

     

    

     

    WITNESSETH

     

    WHEREAS,
      Manufacturer wishes to appoint Distributor an exclusive distributor to
      distribute the Products (as hereinafter defined) in the Territory;
      and

     

    WHEREAS,
      Distributor wishes to accept such appointment as an exclusive distributor;
      and

     

    WHEREAS,
      both
      parties agree to make the Distributorship Agreement previously executed between
      both parties in January 3, 2005 null and void and replace it with this exclusive
      Distributorship Agreement in its entirety;

     

    NOW
      THEREFORE,
      in
      consideration of the mutual covenants contained herein, the parties hereto
      agree
      as follows:

     

    Article
      1. Definitions

     

    In
      this
      Agreement except where the context otherwise requires, the following terms
      and
      expressions shall have the meanings respectively defined as
      follows:

     

    
      	
              1.1

            	
              “Hand
                Vascular Pattern Recognition System”
                means the biometrics system, which utilizes hand vascular pattern
                to
                verify or identify persons.

            

    

     

    
      	
              1.2

            	
              “Network
                Control Unit (VP-II NCU)”
                means a product that enables integration of two or more VP-II Ms
                into a
                network environment. 

            

    

     

    
      	
              1.3

            	
              “Products”
                are: Manufacturer’s
                biometric products, software, hardware, custom and development services,
                which utilize vascular pattern verification technology.
                

            

    

     

    
      	
              1.4

            	
              “Territory”
                means Canada, the United States of America, the Republic of
                Mexico,
                and
                the Caribbean Islands including
                every State, Province and Territory within these
                jurisdictions.

            

    

     

    
      
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              1.5

            	
              “VP-II”
                stands for “Hand Vascular Pattern Recognition System - The Second
                Generation”, which means the
                technology and any future generation of technology that
                utilizes Vascular Pattern Recognition or any materially similar
                technology.

            

    

     

    Article
      2. Appointment and Acceptance

     

    
      	
              2.1

            	
              During
                the term and subject to the terms and conditions set forth hereinafter,
                Manufacturer hereby appoints Distributor as an exclusive distributor
                to
                distribute the Products in the Territory, and Distributor accepts
                such
                appointment. During the term of this Agreement, Manufacturer shall
                not,
                either directly or indirectly, sell the Products in the Territory
                without
                the prior written
                consent
                of Distributor.

            

    

     

    
      	
              2.2

            	
              Distributor
                shall not purchase, import, export, sell, distribute, advertise or
                otherwise deal with the products which utilize vascular technology
                that
                are in competition with or materially similar to the VP-II technology
                and
                Products in the Territory. The Distributor is not precluded from
                selling
                other products utilizing other biometric methods than vascular
                pattern.

            

    

     

    
      	
              2.3

            	
              Distributor
                shall not allow any individual and/or entity to sell or lease the
                Products
                outside the Territory, unless Distributor has a prior written consent
                of
                Manufacturer thereto or a separate agreement between Manufacturer
                and
                Distributor that allows such selling or leasing Products outside
                the
                Territory. 

            

    

     

    Article
      3. Orders and Shipments

     

    
      	
              3.1

            	
              In
                placing orders with Manufacturer, Distributor shall clearly describe
                the
                Products and quantity required, and shall include precise instructions
                for
                packaging, invoicing and shipping. The orders shall not be binding
                unless
                and until they are accepted by Manufacturer in its discretion. Within
                ten
                (10) days of receipt of each order issued by Distributor, Manufacturer
                shall accept or reject such order in writing. Manufacturer agrees
                to
                supply Distributor with the Products to fulfill the orders for the
                minimum
                supply requirement as set forth in Article 5.2 hereof, if Distributor
                orders Products in excess of minimum purchase requirement as set
                forth in
                Article 5.1 hereof. Manufacturer agrees to make its best efforts
                to accept
                all orders as submitted by Distributor in excess of such orders for
                the
                minimum supply requirement.

            

    

     

    
      	
              3.2

            	
              Manufacturer
                shall be responsible for packaging the Products in such manner to
                ensure,
                except for perils of the sea, a safe and undamaged delivery to
                Distributor. Manufacturer shall ship the Products ordered within
                eight (8)
                weeks after the acceptance of an order pursuant to Article 3.1. The
                Manufacturer shall obtain Distributor’s approval of shipping and insurance
                costs before shipping. Distributor shall pay for such shipping and
                insurance. Distributor shall also be responsible for payment of all
                customs and other duties and taxes together with any documentation
                and
                other costs incurred for obtaining any import licenses that may be
                required in the Territory. 

            

    

    
      
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              3.3

            	
              Distributor
                agrees to purchase the VP-II Ms or VP-II S’ in the minimum quantity of *
                units per order. 

            

    

     

    Article
      4. Price and Payment

     

    
      	
              4.1

            	
              The
                prices of the Products shall be determined in accordance with
                the price list attached hereto as Exhibit A and made a part
                hereof.
                The prices of the Products do not include the shipping and insurance
                costs
                of the Products. The price list attached as Exhibit A may be changed
                from
                time to time by Manufacturer by giving Distributor a ninety (90)
                day prior
                notice. Unit
                prices of any outstanding orders from Distributor, at the time of
                Manufacturer’s notice of a price reduction being received, will adjust to
                the new Exhibit A pricing.

            

    

     

    
      	
              4.2

            	
              Within
                seven (7) days after receipt of Manufacturer's acceptance of an order,
                Distributor shall pay the purchase price for such order by wire-transfer
                of an immediately available fund or by having an irrevocable Letter
                of
                Credit issued by a bank specified by Manufacturer in favor of
                Manufacturer.

            

    

     

    
      	
              4.3

            	
              Any
                payment that shall be made under this Agreement shall be in United
                States
                Dollars.

            

    

     

    Article
      5. Minimum Purchase, Supply, and Distributorship Condition

     

    
      	
              5.1

            	
              Purchase
                Quotas and Deposit amount:
                Distributor will pay a refundable “Deposit” to Manufacturer covering each
                year’s purchase requirement (“the Quota(s)”) based upon the number of
                Vascular Hand Scanners required to be purchased by Distributor. The
                deposit payment shall be received by Manufacturer within two weeks
                from
                the execution of this Agreement. The Quota(s) and Deposits are shown
                below:

            

    

    
      	1.  	
              ·    Year
                One -     *

            

    

    
      	2.  	
              ·    Year
                Two -    *

            

    

    
      	3.  	
              ·    Year
                Three -  *

            

    

     

    If
      the
      Quota has not been reached at the end of each Agreement year, the only deposit
      amount proportional to the volume of VP units purchased out of designated Quota
      shall be refunded to Distributor.

     

    Any
      existing refundable Deposit in place by Distributor and American Biometrics
      and
      Security Inc. of Naples, Florida, USA at the time of signing will be credited
      by
      Manufacturer to Distributor’s first Agreement year Deposit
      requirement.

     

    Within
      a
      week from the start of new Agreement year, Manufacturer and Distributor will
      reconcile the actual purchases made during the previous year. If the Purchase
      Quota has not been reached, then the new year’s Quota will be increased by the
      amount of the shortfall and the Deposit shall be increased proportionally.
      

    
      
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    If
      the
      previous year’s Quota has been exceeded, then the new year’s Quota will be
      reduced by the number of Vascular Hand Scanners actually purchased in excess
      of
      previous year’s Quota and the new year’s Deposit reduced
      proportionally.

     

    Within
      a
      week from the reconciliation, Distributor shall pay the new Agreement year’s
      deposit adjusted by previous year’s fulfillment amount. If previous year’s
      purchase amount exceeds the new year’s Quota, Manufacturer shall refund the
      corresponding funds to Distributor within a week from the
      reconciliation.

     

    Should
      Distributor reach the cumulative total at the end of the third year, Quotas
      and
      Deposits (if required) for the second three year period shall be based upon
      the
      previous three years’ history and adjusted to allow for reasonable increases.
      The existing Agreement will continue except for the revision in Quotas and
      Deposits.

     

    Should
      Distributor not purchase at least fifty (50) percent of the cumulative Quota
      by
      end of the second year, then Manufacturer at its sole option shall have the
      right to cancel the Agreement and keep all Deposits.

     

    Should
      Distributor not reach the committed cumulative Quota by the end of the third
      year of the Agreement, then any remaining Deposit shall become Manufacturer’s
      and the renewal will require the re-negotiation of the Quotas and Deposits.
      

     

    For
      the
      purpose of this Article only, VP-II Ms and or Ss shall be considered purchased
      when Distributor opens an irrevocable L/C of or wire-transfers the quoted amount
      for shipment.

     

    
      	
              5.2

            	
              Manufacturer
                agrees to provide VP-II Ms and / or Ss to Distributor during the
                term of
                this Agreement subject to the following Manufacturer’s minimum supply
                requirement if Distributor orders Products in excess of Quota(s)
                as set
                forth in Article 5.1 hereof:

            

    

     

    (a)
      1st
      year:     *

     

    (b)
      2nd
      year:     *

     

    (c)
      3rd
      year:     *

     

    Article
      6. Technical Assistance

     

    
      	
              6.1

            	
              Manufacturer
                shall provide Distributor with technical assistance with respect
                to the
                Products by means of providing Distributor informative and illustrative
                materials and sending advertising material suitable for promotion
                and
                advertising of the Products. Manufacturer
                agrees to keep such materials up to date with respect to new releases
                and
                product features of the said products and will work with the Distributor
                to assess the specific needs of the assigned
                territory.

            

    

    
      
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              6.2

            	
              Manufacturer
                shall give training to a reasonable number of technicians either
                in Korea
                or on-site in the Territory if such training is agreed to by both
                parties
                and if such training is necessary due to the introduction of any
                new
                Products (which excludes the future products that do not utilize
                the VP-II
                technology pursuant to Article 1.3) or necessary to achieve better
                installation and maintenance standards. Costs for round trips, meals,
                and
                lodging of the dispatched personnel of Distributor for training shall
                be
                borne by Distributor. 

            

    

     

    
      	
              6.3

            	
              Manufacturer
                shall supply its own engineering information to Distributor to the
                extent
                that Distributor should be able to maintain and perform the after-sale
                service by and for itself, and further to develop its own application
                programs based on VP-II networking devices. The level and extent
                of such
                technology transfer shall be determined by Manufacturer at its sole
                discretion. 

            

    

     

    
      	
              6.4

            	
              All
                the materials that Manufacturer provides to Distributor for technical
                assistance pursuant to Article 6.1 shall be in the English Language.
                

            

    

     

    Article
      7. Spare Parts

     

    
      	
              7.1

            	
              Distributor
                shall keep a sufficient inventory of the spare parts of the Products
                in
                order to provide an efficient and satisfactory after-sales services.
                Manufacturer shall advise Distributor of the required spare
                parts.

            

    

     

    
      	
              7.2

            	
              Manufacturer
                shall supply to Distributor the spare parts of the Products so long
                as
                Distributor continues to purchase the Products pursuant to the terms
                and
                conditions of this Agreement and for eight (8) years after the last
                shipment of the Products to Distributor.

            

    

     

    
      	
              7.3

            	
              Manufacturer
                agrees to supply North American standard power supplies and cables
                with
                all VP-II product shipments to the
                Territory.

            

    

     

    Article
      8. Product Warranty

     

    
      	
              8.1

            	
              Manufacturer
                shall warrant that Products will be free from defects in workmanship
                and
                materials, under normal use, for one year from the date of original
                purchase by end users from Distributor or its authorized resellers.
                If any
                Products or any part(s) thereof are not found to be in compliance
                with the
                relevant specifications, Distributor shall return to Manufacturer
                such
                Products or part(s) thereof and Manufacturer shall deliver to Distributor,
                free of commodity charge and delivery expenses, replacements for
                such
                Products or part(s) thereof. Manufacturer, however, shall have no
                liability or obligation in connection with such Products or part(s)
                thereof other than the obligation to replace such Products or part(s)
                thereof.

            

    

     

    
      	
              8.2

            	
              Manufacturer
                shall attach the final inspection marks to the Products and parts
                and
                warrant that the Products at the time of shipment shall be free from
                defects in material and workmanship. This warranty does not extend
                to any
                of the Products which are defective due to: (1) misuse, neglect,
                an
                accident or abuse caused by Distributor; (2) improper repair by
                Distributor, or alteration or modification by Distributor in any
                way; and
                (3) use in violation of instructions provided by
                Manufacturer.

            

    

    
      
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              8.3

            	
              Distributor
                shall send to Manufacturer any claim in regard to any defect in connection
                with such Products in writing with full description and detailed
                explanations of the relevant
                defect.

            

    

     

    Article
      9. Distributor's Responsibility

     

    
      	
              9.1

            	
              Distributor
                shall maintain adequate stocks of the Products throughout the Territory
                to
                provide timely delivery to customers. Distributor shall maintain
                adequate
                stocks of replacement parts, facilities and qualified mechanics throughout
                the Territory and shall provide reasonable after-sale services to
                its
                customers.

            

    

     

    
      	
              9.2

            	
              Distributor
                shall undertake, on its own account, advertisement and sales promotions
                of
                the Products, and make its best efforts to achieve as large sales
                volume
                as possible of the Products in the Territory.

            

    

     

    
      	
              9.3

            	
              If
                any dealer or customer in the Territory who has purchased Products
                from
                Distributor submits any complaint to Manufacturer as to Products,
                and
                Manufacturer conveys such complaint to Distributor, then Distributor
                shall
                immediately investigate such complaint and take a proper
                action.

            

    

     

    Article
      10. Report

     

    Distributor
      shall make quarterly reports to
      Manufacturer regarding the sales and market conditions in the Territory,
      regarding the sales of the Products, the inventory of the Products and parts
      thereof, general market conditions and other information the Manufacturer may
      reasonably request.

     

    Article
      11. Proprietary
      Rights

     

    
      	
              11.1

            	
              Distributor
                acknowledges that Manufacturer is the owner of any and all intellectual
                property in association with the Products, including, without limitation,
                trademarks, tradenames, designs, copyrights, know-how and patents
                used on
                or for, or otherwise embodied in the Products ("Proprietary Rights").
                Nothing in this Agreement shall be deemed to transfer any right,
                title or
                interest in the Proprietary Rights to Distributor; provided, however,
                that
                upon obtaining prior written consent from Manufacturer, Distributor
                may
                represent itself as an authorized distributor of Manufacturer and
                use the
                trademarks and tradenames of Manufacturer for the distribution and
                marketing of the Products in the Territory. Upon termination of this
                Agreement for any cause, Distributor shall cease presenting itself
                as a
                distributor of the Products and cease using any of the Proprietary
                Rights

            

    

     

    
      	
              11.2

            	
              Distributor
                shall not alter, deface, remove, cover or mutilate in any manner
                the
                trademarks, serial or model numbers, brand names of the Products
                or
                Manufacturer's names attached or affixed to any of the Products,
                without
                the prior written consent of
                Manufacturer.

            

    

    
      
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              11.3

            	
              During
                the course of conducting the marketing and distribution activities
                in the
                Territory for the Products, Distributor shall clearly state, in any
                of its
                marketing materials, that TechSphere Co., Ltd. is the original
                manufacturer of the Products. Distributor shall obtain Manufacturer’s
                prior written approval (including electronic mail as a valid approval
                method) for any and all marketing materials designed and prepared
                by
                Distributor for the marketing and distribution of the Products including,
                without limitation, leaflets, brochures and catalogs.; provided,
                however,
                that a marketing material that has a minor modification of an already
                approved one and the modification does not damage the intent of this
                provision, such a modification may be released without written approval
                of
                Manufacturer.

            

    

     

    
      	
              11.4

            	
              Distributor
                shall report to Manufacturer immediately any infringement or improper
                or
                unauthorized use of Manufacturer’s Proprietary Rights in the Territory
                which come to Distributor’s
                attention.

            

    

     

    
      	
              11.5

            	
              Distributor
                agrees to hold in trust and confidence all information arising from
                or
                relating to the Proprietary Rights (“Proprietary Information”) which
                Distributor obtains directly or indirectly in connection with this
                Agreement, and agrees not to use the Proprietary Information other
                than to
                carry out the purposes of this Agreement. Both parties agree that
                the
                scope of Proprietary Information is the one as defined in the
                “Nondisclosure Agreement” executed between the parties as of [Oct. 4,
                2002]. Distributor shall not disclose any such Proprietary Information
                without Manufacturer’s prior written consent, to anyone other than
                Distributor’s employees, contractors or agents who need to know such
                Proprietary Information in order to carry out Distributor’s rights and
                obligations under this Agreement and with whom Distributor shall
                execute a
                valid nondisclosure agreement.

            

    

     

    
      	
              11.6

            	
              If
                any third party brings an action against Distributor alleging that
                Distributor’s resale, distribution or other disposition of the Products in
                the Territory infringes any patent, trademark, trade names, designs,
                copyright or any other intellectual property right of such third
                party,
                Distributor shall notify Manufacturer thereof immediately. Manufacturer
                shall defend such action at its expense, provided that: (i) Manufacturer
                shall have sole control of the defense of any such action and all
                negotiations for its settlement or compromise; (ii) Distributor cooperates
                fully with Manufacturer in its defense of the action; and (iii)
                Manufacturer shall have no liability if the action results from the
                use of
                the Products for purposes or in an environment for which it was not
                designed or intended, or due to modification of the Products, including,
                but not limited to, combination with other equipment, by anyone other
                than
                Manufacturer.

            

    

     

    Article
      12. Status of Distributor

     

    
      	
              12.1

            	
              This
                Agreement shall not be deemed in any way to create the relationship
                of
                principal and agent between Manufacturer and Distributor; and under
                no
                circumstances shall Distributor be considered to be the agent of
                Manufacturer. Distributor shall not act or attempt to act, or present
                itself, explicitly or implicitly, as an agent of Manufacturer. Distributor
                shall not in any manner assume or make, or attempt to assume or make,
                any
                obligation, liability, representation, warranty or guarantee on behalf
                of,
                or in the name of Manufacturer.

            

    

    
      
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              12.2

            	
              Distributor
                shall at all times comply with all applicable laws, regulations,
                and
                orders of any government of the Territory or political subdivisions
                thereof relating to or in any way affecting this Agreement and
                Distributor's performance hereunder, including obtaining of any
                required licenses, permits or approvals to perform Distributor’s
                obligations under this Agreement.

            

    

     

    
      	
              12.3

            	
              Distributor
                shall not disclose to any third party, without the prior written
                consent
                of Manufacturer, or use for any purpose other than the performance
                of its
                obligations under this Agreement, any confidential information concerning
                the Products or business affairs of Manufacturer (including, but
                not
                limited to, prices, discounts, terms and conditions) which it receives
                directly or indirectly from Manufacturer, or which it acquires or
                develops
                in the course of its transactions with
                Manufacturer.

            

    

     

    Article
      13. Term

     

    
      	
              13.1

            	
              This
                Agreement shall become effective upon signing and shall continue
                to be in
                full force and effect for a period of three (3) years from the date
                hereof, unless earlier terminated pursuant to Article 14. After the
                expiration of such three (3) year term, this Agreement shall be
                automatically extended for successive three (3) year periods in
                perpetuity, unless terminated by breach or default by either party.
                

            

    

     

    
      	
              13.2

            	
              If
                the term of this Agreement is extended in accordance with Article
                13.1,
                the quantity of the Products for the minimum purchase requirement
                for such
                renewed term shall be reviewed and the new quantity for the minimum
                purchase requirement shall be agreed upon in writing by the parties
                within
                one (1) month after commencement of such renewed term. Such minimum
                quantity shall not exceed an increase of 10 percent of the last year’s
                quota of the previous three year’s purchases unless agreed to by
                Distributor.

            

    

     

    Article
      14. Termination

     

    
      	
              14.1

            	
              In
                the event that one of the parties,
                in
                a material manner, defaults or breaches any of the provisions of
                this
                Agreement the other party shall have the right to terminate this
                Agreement
                by giving thirty (30) days written notice, provided, however, that
                if
                within
                thirty (30) days
                after receipt of said notice the defaulting or breaching party cures
                the
                said default or breach, then said notice shall not be
                effective.

            

    

     

    
      	
              14.2

            	
              Notwithstanding
                Article 14.1, this Agreement shall automatically terminate, without
                notice, by the occurrence of any one of the following
                situations:

            

    

    
      
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                (a)

              	
                One
                  of the parties becomes bankrupt or insolvent, or is managed by
                  a receiver,
                  assignee or trustee, whether by voluntary act of the said party
                  or
                  otherwise; 

              

      

       

      
        	 	
                (b)

              	
                One
                  of the parties assigns or attempts to assign this Agreement or
                  any rights
                  hereunder without the written consent of the other party. This
                  consent
                  will not be unreasonably withheld;

              

      

       

      
        	 	
                (c)

              	
                One
                  of the parties ceases to function as a going concern or to conduct
                  its
                  operations in the normal course of
                  business.

              

      

    

     

    
      	
              14.3

            	
              This
                Agreement may be terminated thirty (30) days after a prior written
                notice
                of termination is given to Distributor, in any of the following
                situations:

            

    

     

    
      	 	
              (a)

            	
              Distributor
                fails to meet the minimum purchase requirement unless caused by material
                conflicts or breach by Manufacturer of provisions of this Agreement,
                despite the conflicts of any other provision in this Agreement;
                

            

    

     

    
      	 	
              (b)

            	
              Distributor
                is acquired by, or acquires, in whole or in part, a manufacturer
                of the
                products which in the reasonable judgment of Manufacturer competes
                to a
                material extent with the Products;

            

    

     

    
      	
              14.4

            	
              After
                this Agreement is terminated, all monies owed to Manufacturer by
                Distributor shall become immediately due and payable. The termination
                of
                this Agreement shall be deemed to release Distributor or its successors
                from any of Distributor’s obligations under this Agreement, except
                Distributor’s obligations to pay such monies due and payable to
                Manufacturers, if there is any.

            

    

     

    Article
      15. Force Majeure

     

    Neither
      party shall be liable to the other party for nonperformance or delay in
      performance of any of its obligations under the Agreement due to war,
      revolution, riot, strike or other labor dispute, fire, flood, acts of government
      or any other causes reasonably beyond its control. Upon the occurrence of such
      force majeure condition the party which
      is
      unable to perform its obligations under this Agreement due to the occurrence
      of
      such force majeure condition shall immediately notify the other party thereof.
      Immediately after such condition is removed or cured, such notifying party
      shall
      perform its obligation promptly unless such force majeure condition made such
      performance permanently impossible.

     

    Article
      16. Governing Law

     

    This
      Agreement shall be interpreted and governed by the laws of the Republic of
      Korea.

     

    Article
      17. Jurisdiction

     

    With
      respect to any judicial proceeding which include, without limitation, any claim,
      litigation and hearing, arising out of this Agreement, the parties shall submit
      to the exclusive jurisdiction of the Seoul District Court.

    
      
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    Article
      18. Miscellaneous Provisions

     

    
      	
              18.1

            	
              Notices

            

    

     

    Any
      notice required or permitted to be given hereunder shall be in writing, and
      may
      be given by personal service, registered airmail, or facsimile. The other party
      shall confirm the receipt of such notice in writing by personal service,
      registered airmail, or facsimile. 

     

    
      	
              18.2

            	
              Entire
                Agreement and Amendments

            

    

     

    This
      Agreement constitutes the entire understanding of Manufacturer and Distributor
      with respect to the subject matter hereof. No amendment, modification or
      alteration of any term of this Agreement shall be binding on either party unless
      the same shall be made in writing and executed by or on behalf of the parties
      hereto.

     

    
      	
              18.3

            	
              No
                Assignment and Succession.

            

    

     

    This
      Agreement shall inure to the benefit of and be binding upon the parties hereto
      and their respective successors. No assignment of this Agreement shall be valid
      without the prior written consent of the other party hereto; this consent will
      not be unreasonably withheld.

     

    
      	
              18.4

            	
              Waiver

            

    

     

    All
      waivers hereunder must be in writing, and the failure of any party at any time
      to require the other party's performance of any obligations under this Agreement
      shall not affect the right of such party to subsequently require the performance
      of the obligation of such other party. Any waiver of any breach of any provision
      of this Agreement shall not be construed as a waiver of any continuing or
      succeeding breach of such provision or a waiver or modification of the
      provision. 

     

    
      	
              18.5

            	
              Severability

            

    

     

    If
      any
      one or more of the provisions contained in this Agreement shall be declared
      invalid, illegal or unenforceable in any respect under any applicable law,
      in
      whole or in part, the validity legality and enforceability of the remaining
      provision or portion of such provision shall not in any way be affected, and
      be
      valid and enforceable. In such case the parties hereto oblige themselves to
      reach the intended purpose of the invalid provision by a new, valid and legal
      stipulation.

     

    
      	
              18.6

            	
              Headings.

            

    

     

    The
      section headings herein are intended for the purpose of convenience only and
      shall not affect the construction or interpretation of any of the provisions
      of
      this Agreement.

     

    
      	
              18.7

            	
              Facsimile
                delivery

            

    

     

    The
      parties may intend to sign and deliver this Agreement by facsimile transmission.
      Each party agrees that the delivery of the Agreement by facsimile shall have
      the
      same force and effect as delivery of original signatures and that each party
      may
      use such facsimile signatures as evidence of the execution and delivery of
      the
      Agreement by all parties to the same extent that an original signature could
      be
      used. 

    
      
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              18.8

            	
              Indemnification

            

    

    

       

      
        	 	
                (a)

              	
                The
                  Manufacturer hereby agrees to indemnify, defend and hold harmless
                  the
                  Distributor, its directors, officers, employees and agents from
                  and
                  against all losses, liabilities, damages, deficiencies, costs or
                  expenses
                  (including reasonable fees and expenses of counsel and agents whether
                  or
                  not litigation has occurred and including the cost of enforcing
                  this
                  Section) (the “Losses”) incurred by the Distributor, its directors,
                  officers, employees and agents based on, arising out of, or otherwise
                  incurred in respect of any breach by Manufacturer of its obligations
                  under
                  this Agreement. 

              

      

       

      
        	 	
                (b)

              	
                The
                  Distributor hereby agrees to indemnify, defend and hold harmless
                  the
                  Manufacturer, its directors, officers, employees and agents from
                  and
                  against all Losses incurred by the Manufacturer, its directors,
                  officers,
                  employees and agents based upon, arising out of or otherwise incurred
                  in
                  respect of any breach by Distributor of its obligations under this
                  Agreement.

              

      

    

     

    
      	
              18.9

            	
              Survival

            

    

     

    Article
      Articles 7.2, 7.3, 8.1, 8.2, 11.1, 11.5, 12.3, 14.4, 16,
      17 and
      18.8
      shall
      survive the expiration of the term of this Agreement or the termination of
      this
      Agreement.

     

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their respective duly authorized officers.

     

    

    
      	
              Distributor

            	
              Manufacturer

            
	 	 
	
              By:
                /s/ Terry Wheeler

            	
              By:
                /s/ Alex H. Choi

            
	
              Print
                Name:
                Terry Wheeler

            	
              Print
                Name: Alex H. Choi

            
	
              Title:
                President

            	
              Title:
                President

            
	 	 
	
              By:
                /s/ David Clayden

            	 
	
              Print
                Name: David
                Clayden

            	 
	
              Title:
                Vice-President

            	 

    

    
      
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    Exhibit
      A. Price List

     

    

     

    Currency:
      USD, Incoterms: EXW

     

    
      	
              VP-II
                M
                (per unit; order qty *)

              VP-II
                S (per unit; order qty *)

            	
              *

              *

            
	
              VP-II
                NCU

              users

              *

              *

              *

              VP-II
                NCU-T

              *
                users

            	
               

              *

              *

              *

              *

               

              *

              *

            
	
              Hub

            	
              *

            
	
              Repeater/Converter

            	
              *

            
	
              VP-II
                NetControl

              *

              *

            	
               

              *

              *

            
	
              VP-II
                SDK

              Running
                license fee

            	
              *

              *

            

    

     

    

    
      
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    ADDENDUM
      TO DISTRIBUTORSHIP AGREEMENT

     

    The
      undersigned parties agree that this addendum (“Addendum”) is incorporated in and
      made a part of the DISTRIBUTORSHIP AGREEMENT (“Agreement”) executed between
Techsphere
      Co., Ltd. (hereinafter referred to as "Manufacturer") and Identica
      Corp.
      (hereinafter referred to as "Distributor"), on
      [May
      6,
      2005]
      and
      that it shall be terminated
      and/or
      renewed under the same terms and conditions of the Agreement.

     

    WITNESSETH

     

    WHEREAS,
      Manufacturer and Distributor have executed a DISTRIBUTORSHIP AGREEMENT
      (“Agreement”)
      on May
      6,
      2005; 

     

    WHEREAS,
      based on mutual agreement, the Parties desire to extend the first year term
      of
      the Agreement; and

     

    NOW,
      THEREFORE, in
      consideration of the promises and mutual agreements set forth herein, the
      Parties agree to add the following clause in article 13:

     

    Addendum

     

     

    13.3
      Based
      on
      mutual understanding, the 1st year term of the initial Agreement term shall
      be
      extended until December 31, 2006. The 2nd and 3rd year terms, however, shall
      be
      one-year period, respectively.

     

    IN
      WITNESS WHEREOF,
      the Parties hereto have caused this Addendum to be executed by their respective
      duly authorized officers as follows:

    

    
      	
              Manufacturer
                

            	
              Distributor

               

            
	
              By:
                /s/
                Alex H. Choi 

            	
              By:
                /s/ Edward Foster

            
	
              Print
                Name: Alex
                H. Choi 

            	
              Print
                Name: Edward Foster

            
	
              Title:President/CEO 

            	
              Title:
                CEO

            
	 	 
	 	
              By:
                /s/ Terry Wheeler

            
	 	
              Print
                Name: Terry Wheeler

            
	 	
              Title:President
                

            

    

     

    

    
      
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