POPSTAR COMMUNICATIONS INC
10QSB, EX-10.5, 2000-08-14
BUSINESS SERVICES, NEC
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                                                                    EXHIBIT 10.5


THIS AGREEMENT dated the 31st day of July, 2000


BETWEEN:

Belcarra Messaging Corp.,
a company  incorporated  in the  Province  of British  Columbia,  Canada and the
Registered Office of which is at 220-1024 Ridgeway Avenue, Coquitlam, BC V3J 1S5
Canada.
(hereinafter referred to as the "Vendor")

AND:

POPstar Global Communications Inc.,
an International Business Company incorporated in British Virgin Islands and the
Registered  Office of which is at KPMG Centre,  Tropic Isle  Building,  P.O. Box
3443, Road Town, Tortola,  British Virgin Islands.
(hereinafter referred to as the "Purchaser")

AND:

POPstar Communications, Inc.,
a company incorporated in the State of Nevada,  U.S.A. and the Registered Office
of which is at 3675 Pecos  McLeod,  Suite  1400,  Las Vegas,  Nevada  89121-3881
U.S.A.
(hereinafter referred to as the "POPstar")

WHEREAS

A.   The Vendor and its principals  possess certain  expertise and  intellectual
     property relating to Internet Messaging; and

B.   The  Purchaser  wishes  to pursue  certain  product  development  involving
     Internet Messaging; and

C.   The Vendor and the  Purchaser  entered  into a Letter of Intent on June 30,
     2000 for the transfer by the Vendor to the Purchaser's ownership of certain
     intellectual property listed herein.

NOW THEREFORE, IN CONSIDERATION of the payment of the consideration (the receipt
and sufficiency of which is hereby  acknowledged) and the promises and covenants
contained herein and IT IS HEREBY AGREED as follows:



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<PAGE>

1.   Definitions

     In this  Agreement,  unless the context  otherwise  requires  or  expressly
     provides,   the  following   words  shall  have  the   following   meanings
     respectively:

     "Intellectual  Property"  means (a) the IMAP mail server  software which is
     based on Carnegie  Mellon  University's  "Cyrus" IMAP server as modified by
     the Vendor,  the software being easily  implementable  into a corresponding
     server having  capacities  exceeding  100,000 users using standard computer
     operating  platforms;  (b) Mail Transfer Agent software  technology ("EXIM"
     MTA as  modified by  Fireplug  Computers  Inc.)  providing  scalability  of
     messaging  systems  (carrying all message  types,  including fax, voice and
     other  unified  messaging)  over a range  of  thousands  of  users  to many
     millions of users and over  thousands  of domains;  (c) Open LDAP,  an LDAP
     directory tool,  incorporated  into the MTA software above; and (d) certain
     administrative  software  incorporating  Open LDAP, and as developed by Ted
     Powell.

     "Restricted  Common  Stock"  means up to 20,000  shares of Common  Stock of
     POPstar  issuable to the Vendor as described  in Sections  3(ii) and 3(iii)
     herein.

     "C$" means the lawful currency of Canada.

     "US$" means the lawful currency of the United States of America.

     In this  Agreement,  reference to the plural shall include the singular and
     vice versa.

2.   Sale and Purchase of Intellectual Property

     The Vendor shall transfer to the Purchaser the beneficial  ownership of and
     the  exclusive  right to use and exploit the  Intellectual  Property  which
     shall  include the right to use,  sell,  distribute,  license or market the
     same on a world wide basis.  The Vendor shall transfer to the Purchaser all
     proprietary  and  intellectual  property  rights,  including  all rights of
     Vendor,  if  any,  in and to  trade  names,  trade  marks,  service  marks,
     copyrights,   patents,  designs  and  other  intellectual  property  rights
     relating  to the  Intellectual  Property.  The  sale by the  Vendor  of the
     Intellectual  Property to the  Purchaser  shall be  exclusive to the extent
     that the Vendor  shall not grant to any third party  (save for  Bridgewater
     Systems Corporation,  The Electric Mail Company Inc. and such other parties
     with the prior written  approval of the  Purchaser) the right to use, copy,
     adapt,  prepare derivative works of,  distribute,  sell, lease or otherwise
     dispose of, reproduce,  reverse-engineer,  disassemble,  transmit, perform,
     display the Intellectual  Property,  or any portion thereof.  Forthwith the
     purchase by the Purchaser of the Intellectual Property from the Vendor, the
     Purchaser   shall  have  sole  and  exclusive   unfettered   discretion  in
     commercially  exploiting the Intellectual  Property.  The Vendor's existing
     license for internal use shall remain in force.



                                                                               2
<PAGE>

3.   Purchase Consideration

     The  consideration  to be  made  by the  Purchaser  to the  Vendor  for the
     purchase of the Intellectual Property shall be as follows:

          (i)       an initial  cash  payment of  C$35,000.00,  payable upon the
                    Closing of this Agreement;

          (ii)      10,000 shares of Restricted  Common Stock of POPstar,  to be
                    issued upon the Closing of this Agreement;

          (iii)     an additional  10,000  shares of Restricted  Common Stock of
                    POPstar,  to be issued on January 10,  2001,  subject to the
                    fulfillment of the performance benchmarks set out in Section
                    5.2 herein; and

          (iv)      12 equal monthly  payments of C$2,500.00 each, such payments
                    commencing on the 30th day of the calendar  month  following
                    the date of this Agreement.

4.   Closing

     4.1. Place and Time.  Closing of the sale and purchase of the  Intellectual
          Property  shall  take  place at 107 East 3rd  Avenue,  Vancouver,  BC,
          Canada no later than 5:00 p.m.  on August 31,  2000,  or at such other
          place, date and time as the parties hereto may agree in writing.

     4.2. Conditions  to Closing.  Prior to Closing,  the  following  conditions
          shall have been satisfied:

          4.2.1. The Purchaser shall have entered into a royalty-free  licensing
               agreement  (in a form and on terms  no less  favourable  than the
               licensing  agreement  set out in EXHIBIT A hereto) with  Carnegie
               Mellon  University  in  respect  of the  use  and  resale  by the
               Purchaser  of the  IMAP  server  software  developed  as  part of
               Carnegie Mellon  University's  "Cyrus" IMAP server software which
               forms part of the Intellectual Property.

          4.2.2. The Seller shall have  obtained  written  release of Ted Powell
               and  Bridgewater   Systems  Corporation  in  form  and  substance
               satisfactory to the Purchaser.

     4.3. Deliveries by the Vendor. At the Closing,  the Vendor shall deliver or
          procure the delivery of the following to the Purchaser:

          4.3.1. All source code and  documentation  developed by or obtained by
               the Vendor in conjunction with the Intellectual Property.



                                                                               3
<PAGE>

          4.3.2.  Written  releases  of  Ted  Powell  and  Bridgewater   Systems
               Corproation in form and substance satisfactory to the Purchaser.

     4.4. Deliveries  by the  Purchaser.  At the Closing,  the  Purchaser  shall
          deliver or procure the delivery of the following to the Seller:

          4.4.1.  A  cheque,  bank  draft  or  money  order  in  the  amount  of
               C$35,000.00 made payable to the Vendor.

          4.4.2. A certified  copy of an  irrevocable  instruction by POPstar to
               POPstar's  share  transfer agent  instructing  the share transfer
               agent to issue a  certificate  for  10,000  shares of  Restricted
               Common Stock of POPstar in the name of the Vendor.

5.   Transitional Development Assistance and Further Performance

     5.1. Transitional  Development  Assistance.  The  Vendor  agrees to provide
          transitional  development  assistance  to the  Purchaser in connection
          with the further development by the Purchaser's personnel for a period
          of not less than 12 months.  This period may be extended  upon mutual,
          written agreement between the Vendor and the Purchaser. Payment by the
          Purchaser  to the Vendor in respect of this  transitional  development
          assistance  is set  out in  Section  3(iv)  herein.  The  transitional
          development assistance to be provided by the Vendor shall generally be
          adequate to allow the  Purchaser's  reasonably  capable  personnel  to
          proceed with such further development without such further assistance.
          The  transitional  development  assistance  shall include at least one
          monthly  in-person  review meeting between  technical  personnel to be
          appointed by the Vendor and the Purchaser,  the form and venue of such
          meeting to be determined between the Vendor and the Purchaser.

     5.2. Further  Performance.  The Vendor warrants that it will deliver to the
          Purchaser a working  demonstration of mail server "cluster"  operation
          prior to January  10,  2001,  the date by which an  additional  10,000
          shares of Restricted Common Stock of POPstar,  subject to this Section
          5.2,  are  to be  issued  to the  Vendor.  For  the  purpose  of  this
          Agreement,  a "cluster" of mail servers shall  comprise a plurality of
          IMAP or POP-3 mail  servers  sharing a common  e-mail  domain  address
          while  appearing to  subscribers  and external  routing  entities as a
          single,  large  server.  This  is  facilitated  through  the use of an
          administrative  database  linking each user to a specific  mail server
          within the cluster.  The working  demonstration  shall  comprise:  (i)
          administrative registration of subscribers within a cluster, including
          assignment  of  each  to  a  specific  mail  server;  (ii)  successful
          demonstration  of proper  routing  of e-mail  messages  to  registered
          subscribers,  to the specific server to which each is assigned;  (iii)
          successful  access to and  operation  of the  specific  server by such
          registered  subscribers.  The  Vendor  must  also  demonstrate  to the
          satisfaction  of the  Purchaser a strategy by which the  Purchaser may
          extend administrative  functions associated with subscriber assignment
          to include subscriber reassignment to a



                                                                               4
<PAGE>

          different  mail  server  within  a  cluster,  without  loss of  stored
          messages or requiring  any action or change of  procedures on the part
          of the subscriber.

6.   Representations and Warranties by the Vendor

     The Vendor represents and warrants to the Purchaser and POPstar that:

     6.1. Organization  of  the  Vendor.   The  Vendor  is  a  corporation  duly
          organized, validly existing and in good standing under the laws of the
          Province of British  Columbia with full corporate  power and authority
          to execute and deliver this  Agreement and to perform its  obligations
          hereunder.  The execution,  delivery and performance of this Agreement
          have been duly  authorized  by all necessary  corporate  action of the
          Vendor and this Agreement  constitutes a valid and binding  obligation
          of the Vendor; enforceable against it in accordance with its terms.

     6.2. No Conflict as to the Vendor.  Neither the  execution  and delivery of
          this Agreement nor the  consummation  of the sale of the  Intellectual
          Property  to the  Purchaser  will (a)  violate  any  provision  of the
          certificate of incorporation,  memorandum,  articles, by-laws or other
          constituting  documents of the Vendor, or (b) violate,  be in conflict
          with, or constitute a default (or an event which, with notice or lapse
          of time or both,  would  constitute a default)  under any agreement to
          which the  Vendor is a party  which  will  result in the  creation  or
          imposition of any security  interest,  mortgage,  encumbrances,  lien,
          charge,  adverse claim or restriction of any kind on the  Intellectual
          Property,  or (c) violate any statute or law or any judgment,  decree,
          order,  regulation  or rule of any  court or other  governmental  body
          applicable to the Vendor.

     6.3. Title to  Intellectual  Property.  The  Vendor  owns the  Intellectual
          Property   free  from  any  and  all  security   interest,   mortgage,
          encumbrances,  lien, charge, adverse claim or restriction of any kind,
          including  but not limited to any  restriction  on the use,  transfer,
          licensing,  receipt of income or other  exercise of any  attributes of
          ownership.

     6.4. Carnegie Mellon  University  Licensing  Agreement.  It is the Vendor's
          understanding  that the  Purchaser  may be  required  to enter  into a
          royalty-free  licensing  agreement (in a form and has contents similar
          to the licensing  agreement set out in EXHIBIT A hereto) with, and pay
          a one-time  license fee to, Carnegie  Mellon  University in respect of
          the use and  resale  by the  Purchaser  of the  IMAP  server  software
          developed as part of Carnegie Mellon University's  "Cyrus" IMAP server
          software which forms part of the Intellectual Property. To the best of
          the Vendor's knowledge and belief,  Carnegie Mellon University has not
          terminated  its policy of licensing its "Cyrus" IMAP server  software.
          It is the  understanding  of the Vendor that, as of June 30, 2000, the
          date of the Letter of Intent,  the one-time  licensing  fee charged by
          Carnegie  Mellon  University for its "Cyrus" IMAP server  software was
          US$20,000.  The Vendor is not aware of any adverse change, proposed or
          otherwise,



                                                                               5
<PAGE>

          in Carnegie Mellon University's licensing policy and licensing fees.

     6.5. Consents  and  Approvals  of  Governmental  Authorities.  No  consent,
          approval or authorization  of, or declaration,  filing or registration
          with, any governmental  body is required to be made or obtained by the
          Vendor in connection  with the execution,  delivery,  performance  and
          consummation of this Agreement by the Vendor.

     6.6. Other  Consents.  Other than the consent of the board of  directors of
          the Vendor  (which is already  obtained),  no consent of any person is
          required to be obtained by the Vendor for the execution,  delivery and
          performance  of this  Agreement  or the  consummation  of the sale and
          purchase of the Intellectual Property to the Purchaser.

     6.7. No Litigation. There is no claim, action, suit, inquiry, proceeding or
          investigation  by or before any court or governmental  body pending or
          threatened in writing against the Vendor which may affect the value of
          the  Intellectual  Property or the Vendor's title to the  Intellectual
          Property.

     6.8. Non-Competition. The Vendor warrants and represents that, for a period
          of not less than 24 months after the  termination of the  transitional
          development assistance described in Section 5 herein, the Vendor shall
          not, directly or indirectly,  either individually or in partnership or
          jointly or in conjunction  with any third party, as principal,  agent,
          beneficiary,  independent contractor, supplier, consultant, financier,
          lender, guarantor,  partner, proprietor or shareholder in any capacity
          whatsoever or in any other manner whatsoever carry on or be engaged in
          or be concerned with or interested in,  financially or otherwise,  any
          business or undertaking competitive with the Intellectual Property.

     6.9. Vendor's Representations as to POPstar Restricted Common Stock:

          6.9.1. No Qualification.  The Vendor understands and acknowledges that
               (i) none of the Restricted  Common Stock have been qualified by a
               prospectus or registration  statement or otherwise  qualified for
               sale under the securities laws of any  jurisdiction;  (ii) absent
               an exemption  from  registration  or prospectus  requirements  of
               applicable Federal and State securities laws of the United States
               of America,  the issuance and sale of the Restricted Common Stock
               would  require the  involvement  of a  registered  dealer and the
               filing  of  a   prospectus   and   registration   statement   (if
               applicable); (iii) POPstar is and will be issuing such securities
               in reliance upon exemptions from the  registration and prospectus
               requirements of such securities  laws; and (iv) the  availability
               of such exemptions depends upon, among other things, the Vendor's
               representations,  warranties  and  agreements  contained  in this
               Agreement, including, without limitation, the bona fide nature of
               the  investment  intent as expressed  herein.  The Vendor further
               understands and acknowledges  that POPstar is under no obligation
               to  register  or qualify the  Restricted  Common  Stock under any
               applicable securities law, or to comply with any exemptions under
               any applicable  securities  law in connection  with any resale of
               such



                                                                               6
<PAGE>

               Restricted Common Stock.

          6.9.2. No Regulatory  Review.  The Vendor understands and acknowledges
               that no securities commission or similar regulatory authority has
               made any finding or  determination  regarding the fairness of the
               offer, sale or issuance of the securities  described herein,  has
               made any  recommendation  or endorsement of the offer and sale of
               the securities  described herein or has reviewed or passed in any
               way upon this  Agreement  or upon the  merits  of the  securities
               described herein.

          6.9.3. Investment. The Vendor is acquiring the Restricted Common Stock
               as principal,  for investment purposes only, for the Vendor's own
               account  and not  with  the view to or for  immediate  resale  or
               redistribution.

          6.9.4.   Speculative   Investment.   The  Vendor  is  aware  that  the
               acquisition  of the  Restricted  Common  Stock  is a  speculative
               investment  involving  a high degree of risk and that there is no
               guarantee   that  the  Vendor  will  realize  any  gain  from  an
               investment in such  Restricted  Common Stock.  The Vendor further
               understands  that the Vendor could lose the entire  amount of the
               Vendor's  investment in such Restricted  Common Stock. The Vendor
               is financially able to bear the economic risk of an investment in
               the Restricted  Common Stock,  including the ability to hold such
               Restricted  Common  Stock  indefinitely  and to afford a complete
               loss of the Vendor's investment in such Restricted Common Stock.

          6.9.5. Resale Restrictions.  The Vendor acknowledges that the Vendor's
               rights  to  transfer   the   Restricted   Common  Stock  will  be
               restricted,  including  restrictions under applicable  securities
               laws,  and that the Vendor has been  independently  advised as to
               such  restrictions,  and,  without limiting the generality of the
               foregoing,  the fact that the Vendor will not be able to trade in
               such  Restricted  Common  Stock  except  where  an  exemption  is
               available   under  relevant   securities   laws  and  the  Vendor
               understands such restrictions.  The Vendor covenants that it will
               not sell,  transfer or otherwise dispose of the Restricted Common
               Stock except in compliance with the applicable  securities  laws.
               In connection therewith, the Vendor acknowledges that POPstar may
               make a notation on its share registers and records  regarding the
               restrictions  on  transfers  set forth in this  Section  and will
               transfer  securities  on the books of POPstar  only to the extent
               not inconsistent therewith.

          6.9.6. No Advertising.  The offering and sale of the Restricted Common
               Stock were not made through an advertisement of the securities in
               the  printed  media of general and  regular  unpaid  circulation,
               radio or television or any other form of advertisement or as part
               of a  general  solicitation.  The  Vendor  acknowledges  that the
               information  received  by the Vendor  does not,  individually  or
               collectively,   constitute  an  offering  memorandum  or  similar
               document  describing the business or affairs of POPstar which has
               been, or



                                                                               7
<PAGE>

               appears or purports to have been,  prepared  for delivery to, and
               review by, prospective  Vendors in order to assist them in making
               an investment decision in respect of securities of POPstar.

          6.9.7. Investor's Acknowledgement. The Vendor acknowledges, represents
               and  warrants,  as at the date  given  above and at the  Closing,
               that:

               6.9.7.1. POPstar is offering the restricted Common Stock pursuant
                    to an exemption under Section 4 (2) of the Securities Act of
                    1933 of the  United  States  of  America,  as  amended  (the
                    "Securities Act") not involving any public offering;

               6.9.7.2.  the  Vendor is not a U.S.  Person  (as  defined  in the
                    Securities Act) and is not purchasing the restricted  Common
                    Stock for the account of or the benefit of a U.S. Person;

               6.9.7.3. the Vendor was not offered the  restricted  Common Stock
                    in the United  States (as defined in  Regulation S under the
                    Securities Act);

               6.9.7.4. the Vendor did not execute or deliver this  Agreement in
                    the United States (as so defined); and

               6.9.7.5. to the extent that the Vendor is not a U.S. Person,  the
                    Vendor has satisfied itself as to the full observance of the
                    laws of its  jurisdiction in connection with its acquisition
                    of the restricted Common Stock.

          6.9.8.  Certificate   Legending.   The  certificates   evidencing  the
               Restricted  Common  Stock  may  contain a legend  similar  to the
               following or substantially as follows:

               THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
               REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  AND MAY
               NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS A COMPLIANCE WITH THE
               REGISTRATION  PROVISIONS  OF SUCH  ACT HAS  BEEN  MADE OR  UNLESS
               AVAILABILITY  OF AN EXEMPTION FROM SUCH  REGISTRATION  PROVISIONS
               HAS BEEN  ESTABLISHED,  OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
               THE SECURITIES ACT OF 1933.

          6.9.9. No  Representation.  Other  than as set forth  herein and those
               included  in the  documents  to be  delivered  with  the  Closing
               contemplated  hereby, the Vendor acknowledges that the Vendor has
               not  received  and  will  not  receive  any   representations  or
               warranties  from  POPstar  or any of its  respective  affiliates,
               employees or agents in making an investment  decision  related to
               the acquisition of the Restricted Common Stock described herein.



                                                                               8
<PAGE>

7.   Representations and Warranties by the Purchaser

     The Purchaser represents and warrants to the Vendor that:

     7.1. Organization  of the  Purchaser.  The Purchaser is a corporation  duly
          organized, validly existing and in good standing under the laws of the
          British  Virgin  Islands with full  corporate  power and  authority to
          execute  and deliver  this  Agreement  and to perform its  obligations
          hereunder.  The execution,  delivery and performance of this Agreement
          have been duly  authorized  by all necessary  corporate  action of the
          Purchaser  and  this   Agreement   constitutes  a  valid  and  binding
          obligation of the Purchaser; enforceable against it in accordance with
          its terms.

     7.2. No Conflict as to the Purchaser. Neither the execution and delivery of
          this   Agreement  nor  the   consummation   of  the  purchase  of  the
          Intellectual  Property by the Purchaser will (a) violate any provision
          of the certificate of incorporation,  memorandum, articles, by-laws or
          other constituting  documents of the Purchaser,  or (b) violate, be in
          conflict with, or constitute a default (or an event which, with notice
          or  lapse of time or both,  would  constitute  a  default)  under  any
          agreement to which the  Purchaser is a party which will result in this
          Agreement  becoming  null and void,  invalid and  non-binding,  or (c)
          violate any statute or law or any judgment,  decree, order, regulation
          or rule of any  court or other  governmental  body  applicable  to the
          Purchaser.

8.   Representations and Warranties by POPstar

     POPstar represents and warrants to the Vendor that:

     8.1. Organization  of POPstar.  POPstar is a  corporation  duly  organized,
          validly  existing and in good standing  under the laws of the State of
          Nevada, U.S.A., with full corporate power and authority to execute and
          deliver this Agreement and to perform its obligations  hereunder.  The
          execution,  delivery and  performance of this Agreement have been duly
          authorized  by all  necessary  corporate  action of  POPstar  and this
          Agreement  constitutes  a valid and  binding  obligation  of  POPstar;
          enforceable against it in accordance with its terms.

     8.2. No Conflict as POPstar.  Neither the  execution  and  delivery of this
          Agreement  nor the  consummation  of the purchase of the  Intellectual
          Property  by the  Purchaser  will (a)  violate  any  provision  of the
          certificate of incorporation,  memorandum,  articles, by-laws or other
          constituting  documents  of POPstar,  or (b)  violate,  be in conflict
          with, or constitute a default (or an event which, with notice or lapse
          of time or both,  would  constitute a default)  under any agreement to
          which POPstar is a party which will result in this Agreement  becoming
          null and void, invalid and non-binding,  or (c) violate any statute or
          law or any judgment, decree, order, regulation or rule of



                                                                               9
<PAGE>

          any court or other governmental body applicable to POPstar.

     8.3. POPstar  Restricted  Common Stock. The delivery of certificates to the
          Vendor  provided  in Section 3 of this  Agreement  will  result in the
          Vendor's  acquisition of registered and beneficial  ownership of those
          Restricted  Common  Stock,  free  and  clear  of all and any  security
          interest,  mortgage,  encumbrances,  lien,  charge,  adverse  claim or
          restriction  of any  kind  other  than as  required  by  U.S./Canadian
          Federal and State/Provincial securities laws.

9.   General Provisions

     9.1. If any  provisions of this  Agreement are determined by a court of law
          or  arbitral  tribunal to be invalid,  illegal or  unenforceable,  the
          validity,  legality and enforceability of the remaining  provisions of
          this Agreement shall not in any way be affected or impaired thereby.

     9.2. This Agreement  shall be governed by and construed in accordance  with
          the laws of the Province of British  Columbia,  Canada and the parties
          hereby  submit  to the  non-exclusive  jurisdiction  of the  courts of
          British  Columbia  (provided  that actions to enforce a judgement of a
          British  Columbia  court  may  be  pursued  by  either  party  in  any
          jurisdiction).  Any  disputes  arising  out  of or  relating  to  this
          Agreement  or the  interpretation,  breach,  termination  or  validity
          hereof shall be settled first through friendly  consultations  between
          the parties. Such consultations will begin immediately after one party
          has   delivered   to  the  other  party   written   request  for  such
          consultation.  If, within thirty (30) days following the date on which
          such notice is given (the "Arbitration  Request Period"),  the dispute
          cannot be settled  through  consultations,  the dispute shall,  on the
          request of either party with notice to the other  party,  be submitted
          to  arbitration  in British  Columbia.  Any decision by the arbitrator
          will be final and binding on the parties,  and the parties agree to be
          bound thereby and to act  accordingly.  If neither party has requested
          arbitration  within the Arbitration  Request Period,  either party may
          bring suit in the courts of British  Columbia,  and each party  hereby
          submits  to the  non-exclusive  jurisdiction  of the courts of British
          Columbia for such purpose (provided that actions to enforce a judgment
          of a British  Columbia  court may be  pursued  by either  party in any
          jurisdiction).

     9.3. All notices, consents,  assignments and other communication under this
          Agreement  shall be in  writing  and shall be deemed to have been duly
          given when (a) delivered by hand, (b) sent by telex or facsimile (with
          receipt confirmed), provided that a copy is mailed by registered mail,
          return  receipt  requested,  or (c) received by the  delivery  service
          (receipt requested), in each case to the appropriate addresses,  telex
          numbers and facsimile set forth below (or to such other address, telex
          numbers and  facsimile as a party may designate as to itself by notice
          to the other parties).

          (a)  If to the Vendor:



                                                                              10
<PAGE>

               Belcarra Messaging Corp.
               Unit 11-555 Clarke Road Suite 13
               Coquitlam, BC V3K 3X0 Canada
               Attn:  Bruce Balden
               Facsimile no:  604-931-6057

          (b)  If to the Purchaser:
               POPstar Global Communications Inc.
               c/o POPstar Communications Canada Corp.
               107 East 3rd Avenue
               Vancouver, BC V5T 1C7 Canada
               Attn:  Don Lau
               Facsimile no:  604-872-6601

          (c)  If to POPstar:
               POPstar Communications, Inc.
               c/o POPstar Communications Canada Corp.
               107 East 3rd Avenue
               Vancouver, BC V5T 1C7 Canada
               Attn:  Don Lau
               Facsimile no:  604-872-6601

     9.4. Each party shall bear its own expenses  incidental to the preparation,
          negotiation,   execution  and  delivery  of  this  Agreement  and  the
          performance of its obligations hereunder.

     9.5. The captions in this  Agreement are for  convenience of reference only
          and shall not be given any effect in interpretation of this Agreement.

     9.6. The failure of a party to insist upon strict  adherence to any term of
          this  Agreement  on any occasion  shall not be  considered a waiver or
          deprive  that  party  the  right  thereafter  to  insist  upon  strict
          adherence  to that  term or any  other  term  of this  Agreement.  The
          parties may waive any term of this Agreement but any waiver must be in
          writing.

     9.7. This Agreement  supersedes all prior agreements among the parties with
          respect to its  subject  matter  with  respect  thereto  and cannot be
          changed or terminated orally.

     9.8. This  Agreement may be executed in two or more  counterparts,  each of
          which shall be considered an original, but all of which together shall
          constitute the same instrument.

     9.9. This  Agreement  shall inure to the benefit of and be binding upon the
          parties hereto and their respective  successors and assigns,  provided
          that none of the parties may assign its rights  hereunder  without the
          consent of the others.



                                                                              11
<PAGE>

THIS AGREEMENT was given on the day and year first above written.


Signed by                              )
                                       )
Name:  Bruce Balden                    )
Title: President                       )
for and on behalf of                   )    /s/ Bruce Balden
Belcarra Messaging Corp.               )    ---------------------------------
                                            Signature

Signed by                              )
                                       )
Name: John McDermott                   )
Title:                                 )
for and on behalf of                   )
POPstar Global                         )    /s/ John McDermott
Communications Inc.                    )    ---------------------------------
                                            Signature

Signed by                              )
                                       )
Name:  John McDermott                  )
Title: President                       )
for and on behalf of                   )    /s/ John McDermott
POPstar Communications, Inc.           )    ---------------------------------
                                            Signature








                                                                              12
<PAGE>




                                    EXHIBIT A




           Form of Licensing Agreement with Carnegie Mellon University
                   In respect of "Cyrus" IMAP server software



CYRUS IMAP                                ASG Home   What's New   Jobs   Search
LICENSING

                                                                     Contact Us

                                              Download Software   Project Cyrus

                                                                            Home


Version  2.0 and later of the Cyrus  IMAP  server is  covered  by the  following
copyright message:

 *  Copyright (c) 1994-2000 Carnegie Mellon University.  All rights reserved.
 *
 *  Redistribution  and use in  source  and  binary  forms,  with or  without
 *  modification, are permitted provided that the following conditions
 *  are met:
 *
 *  1.  Redistributions of source code must retain the above copyright
 *      notice, this list of conditions and the following disclaimer.
 *
 *  2.  Redistributions in binary form must reproduce the above copyright
 *      notice, this list of conditions and the following disclaimer in
 *      the documentation and/or other materials provided with the
 *      distribution.
 *
 *  3.  The name "Carnegie Mellon University" must not be used to
 *      endorse or promote products derived from this software without
 *      prior written permission.  For permission or any legal
 *      details, please contact
*               Office of Technology Transfer
*               Carnegie Mellon University
*               5000 Forbes Avenue
*               Pittsburgh, PA  15213-3890
*               (412) 268-4387, fax: (412) 268-7395
*               [email protected]
*
*  4.   Redistributions of any form whatsoever must retain the following
*       acknowledgment:
*               "This product includes software developed by Computing  Services
*               at Carnegie Mellon University (http://www.cmu.edu/computing/)."
*
*  CARNEGIE MELLON UNIVERSITY DISCLAIMS ALL WARRANTIES WITH REGARD TO
*  THIS SOFTWARE, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY
*  AND FITNESS, IN NO EVENT SHALL CARNEGIE MELLON UNIVERSITY BE LIABLE
*  FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
*  WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN
*  AN ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING
*  OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.

If you find this  software  useful and  valuable  in your work,  we welcome  any
support you can offer toward continuing this work.

We  gratefully   accept   contributions,   whether   intellectual  or  monetary.
Intellectual contributions in the form of code or constructive collaboration can
be directed to [email protected] (even if it is not a bug).

If you wish to  provide  financial  support to the Cyrus  Project,  send a check
payable to Carnegie Mellon University to

       Project Cyrus
       Computing Services
       Carnegie Mellon University
       5000 Forbes Ave
       Pittsburgh, PA 15213
       USA

--------------------------------------------------------------------------------
Last Updated: Sunday, 16-Jul-2000 16:42:48 EDT




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