EX-10 12 ex106licensefromdetectiontoe.htm LICENSE FROM DETECTION TO ENVIRONMENTAL Converted by EDGARwiz

SUB LICENSE AGREEMENT

THIS  SUB  LICENSE  AGREEMENT,  including  the  Schedules  referred  to

herein and attached hereto (the "Agreement"), is made and entered into  this   I0th

day  of  June  2010  by  and  between  Rampart  Detection  Systems  Ltd  ,  a  private

company incorporated in the Province of British Columbia, Canada ("Licensor") and

Rampart Environmental Solutions, Inc., a private company incorporated in the State

of Nevada ("Licensee").

RECITALS

WHEREAS  Licensor  owns  and  has  the  right  to  grant sub licenses wider

certain patents, patent applications, technology, trade secrets, data, know-how and

other intellectual property relating to electromagnetic signal detection as set out in

detail in Schedule A attached (as amended) and hereafter referred to collectively as

the Licensed Products; and

WHEREAS Licensee desires to obtain from Licenser, and Licensor is willing

to   grant   to   Licensee,   an   exclusive   sub-license   for   the   development   and

commercialization of the Licensed Products in the United States of America in the

Licensed Field as defined in Schedule B, under the terms and conditions herein;

NOW, THEREFORE, in consideration of the mutual covenants and obligations set

forth  herein,  and  for  other  good  and  valuable  consideration,  the  receipt  and

sufficiency of which is hereby acknowledged, Licensor and Licensee hereby agree

as follows:

1.0  DEFINITIONS

As  used  in  this  Agreement,  the  following  terms  shall  have  the  meanings

indicated:

1.1     "Confidential Information" shall  have the meaning set forth in Section

9.1 below.

1.2     "Deductible  Expenses"  shall  mean  the  following  items  of  expense

actually  incurred  in  connection  with  Sales  of  Licensed  Products  (as  hereinafter

defined) to the extent paid or allowed by Sub-licensees and included in accordance

with  recognized  principles  of  accounting  (consistently  applied)  in  the  gross  sales

price billed: (a) sales, use or turnover taxes, (b) excise value added or other taxes,

custom duties or consular fees; (c) transportation, freight, and handling charges, and

insurance  on  shipments  to  customers;  (d)  trade,  cash  Or  quantity  discounts  or

rebates to the extent actually panted, (e) agent fees or commissions; and if) refunds


and credits for any rejected or returned Licensed Products or because of retroactive

price reductions, rebates or charges

1.3     “License  Field”  shall  mean  the  permitted  market  applications  and

marketing  territory  of  the  Licensed  Products  and  Improvements  as  specified  in

Schedule B attached

1.4     "improvements"   shall   mean   all   improvements,   modifications,   or

enhancements to the Licensed Products made by the Licensee; or licensor within

the term of this sublicense for application by the Licensee or any Sub-Licensee for

use only within the Licensed Field.

1.5     "Joint Inventions" means inventions made or conceived jointly by or for

employees of Licensor and Licensee during the term of this Agreement and which,

under principles arising under the patent laws and regulations of the United States

and/or  Canada  governing  inventorship,  would  be  found  to  be  jointly  invented  by

Licensor and  Licensee, and all intellectual property and proprietary rights therein,

thereto and thereunder

1.6     "Licensed Patents" shall mean those patents, inventors' certificates and

patent  applications  relating  to  the  application  of  Licensed  Products  as  set  forth  in

Schedule A, together with any renewal, division, continuation, continued prosecution

application   or   continuation-in   part   of   any   of   such   patents,   certificates   and

applications, any and all patents or certificates of invention issuing thereon, and any

and all reissues, reexaminations, extensions, divisions, renewals of or to any of the

foregoing, and any foreign counterparts of any of the foregoing.

1.7     “Licensed Trademark” shall mean trademarks owned by Licensor under

the Master License Agreement.

1.8     "Licensed  Trade  Secrets"  shall  mean  all  proprietary  and  confidential

technical information owned by the Licensor under the Master License Agreement

and relating to the inventions owned or claimed in the licensed Patents.

1.9     "Licensed Product" shall additionally mean any material, composition,

product, device or procedure the manufacture, use or sale of which would infringe

a  Valid  Claim  (as  hereinafter  defined)  in  the  country  of  such  manufacture,  use  or

sale, but for a license granted hereunder.

1.10   "Operational   Date"   shall   mean   the   first   day   that   the   Licensee

commences business operations relative to the Licensed Product.

1.11   “Net Revenues" shall mean the combined amounts (whether in cash or


in  non  cash  consideration)  received  or  invoiced  by  Licensee  and  Sub  licensees,

whichever is earlier, from Sales or distribution of Licensed Products to third parties,

less Deductible Expenses.

1.12   "Sale"  or  "Sold"  shall  mean  the  sale,  transfer,  exchange  or  other

disposition  of  Licensed  Products  to  a  third  party,  whether  by  gift  or  otherwise,

including but not by way of limitation, the use of Licensed Products. Any commercial

use of a Licensed Product by a Sub licensee shall be considered a Sale hereunder

for accounting and royalty purposes  Sales of Licensed Products shall be deemed

consummated upon the first to occur of:

a)

Receipt of payment from the purchaser;

b)

Delivery of Licensed Products to the purchaser or a common carrier,

c)

Release of licensed Products from consignment;

d)

If deemed sold by use, when first put to such use; or

e)

If otherwise transferred, exchanged or disposed of, whether by gift or

otherwise,  when  such  transfer,  exchange,  gift  or  other  disposition

occurs.

1.13   "Sub  licensee(s)"  shall  mean  any  third  party  to  whom  Licensee  has

sublicensed any or all of the rights in, to and under  the Licensed Patents licensed

to Licensee hereunder.

1.14   "Sublicense  Income"  shall  mean  any  proceeds,  whether  cash  or

non-cash  consideration,  received  by  Licensee  in  connection  with  a  grant  of  a

sublicense  to  the  Licensed  Patents,  Licensed  Trademarks  or  Licensed  Trade

Secrets, including without limitation, any license fee payments, milestone payments,

royalty payments or other cash revenues related to such sublicense grant. For the

avoidance of doubt, Sublicense Income does not include amounts received by Sub-

licensee  for  Sales  of  Licensed  Products,  which  shall  constitute  Net  Revenues  In

addition, Sublicense income shall not include timounts received in consideration of

equity or debt securities of Licensee (with the exception of equity premiums).

1.15   “Valid  Claim"  shall  mean  (a)  any  claim  of  an  issued  and  unexpired

patent within the Licensed Patents which has not been held unenforceable or invalid

by a court or other governmental agency of competent jurisdiction in an unappealed

or  unappealable  decision,  and  which  bas  not  been  disclaimed  or  admitted  to  be

invalid or unenforceable through reissue or otherwise. (b) a claim in a pending patent

application  within  the  Licensed  Patents  (e)  any claim  related  to  a  Licensed  Trade

Secret and (d) any claim related to a Licensed Trade Mark which has not been held

unenforceable  or  invalid  by  a  court  or  other  governmental  agency  of  competent

jurisdiction  in  an  unappealed  or  unappealable  decision,  and  which  has  not  been

disclaimed or admitted to he invalid or unenforceable through reissue or otherwise.


2.0  LICENSES

2.1     LICENSE   GRANT.   Subject   to   the   terms   and   conditions   of   this

Agreement, Licensor hereby grants to Licensee a royalty bearing, exclusive license

to develop and commercialize applications of the Licensed Products as set forth in

Schedule B, and improvements thereto in the United States of America as per the

License  Field,  including  the  right  to  grant  sublicenses  in  accordance  with  Section

2.3.

2.2.    OWNERSHIP; RESERVATION OF RIGHTS. Licensee acknowledges

and  agrees  that,  except  as  expressly  provided  herein,  no  right  title,  or  interest  is

granted by Licensor to Licensee, implied or otherwise, in to or under the Licensed

Patents, Licensed Trademarks, Licensed Trade Secrets or the Improvements other

than as expressly set forth in this Sublicense Agreement.

2.3.    SUBLICENSES. Subject to the terms and conditions of this  Agreement,

Licensee  shall  have  the  right  to  sublicense  any  or  all  of  the  rights  granted  to

Licensee under Section 2.1; provided that any such sublicense  (a)  shall be made

pursuant to a binding and written agreement which protects Licensor's interests and

rights  in  its  proprietary  information  and  intellectual  property  to  at  least  the  same

extent  as  tins  Agreement  and  includes  specific  reference  and  terms  for  royalty

payments to be paid to the. Licensor During the kiln of this Agreement, licensee shall

provide Licensor with a copy of each fully executed sublicense agreement in which

Licensee sublicenses any or all of the rights set forth in Section 2.1. Licensor must

approve  all  sub  licenses  in  writing.,which  approval  shall  not  be  unreasonably

withheld.

3.0  PAYMENTS AND RELATED OBLIGATIONS

3.1     ROYALTY PAYMENTS.  In  consideration  for  the  rights  and licenses

granted  pursuant  to  Article  2  above,  the  Licensee  shall  pay  to  the  Licensor  on  a

calendar quarterly basis an amount equal to 5% of the gross benefit derived directly

or  indirectly,  in  cash  or  in  kind,  from  the  sale  of  the  Licensed  Products  and

Improvements thereto. The Licensee shall remit a detailed accounting in support of

the quarterly royalty payment. Where the Licensee grants a Sublicense under the

terms of this Agreement, sublicense shall make payments to Licensor as mutually

agreed by the Licensee and Licensor in the Sublicense agreement.

3.2     Intentionally omitted.


3.3.    ADDITIONAL  PAYMENTS.   Except  as  otherwise  expressly  provided

herein, all other payments due to Licensor pursuant to the terms and conditions of

this  Agreement  shall  be  due  and  payable  within  30  days  after  receipt  of  a  proper

invoice  therefor  from  Licensor.  Any  sums  not  paid  when  due,  including  amounts

determined to be due under Section 3.6, shall automatically accrue interest from the

date when due until actually paid at a rate of [10% per annum].

3.4     PAYMENT   FORM.     All   payments   made   by   Licensee   under   this

Agreement shall be made in a currency to be designated by the Licensor, and such

payments shall be made by check or wire transfer to one or more bank accounts to

be designated in writing by Licensor.

3.5     TAXES.   Licensee  shall  pay,  and  shall  indemnify  and  hold  Licensor

harmless  from  all  taxes,  duties  and  fees  directly  imposed  by  all  foreign,  federal,

state, local or other taxing authorities (including, without !imitation, export, sales, use,

excise, and value-added taxes) based on the transactions or payments under this

Agreement, other than taxes imposed or based on Licensors net income, including

royalty income under this Agreement.

3.6     INSPECTION OF BOOKS AND RECORDS.  Licensee shall maintain

complete  and  accurate  books  rind  records.  Licensee  shall  retain  such  books  and

records  for  each  quarterly  period  for  six  (6)  years  after  the  submission  of  the

corresponding  report  under  Section  3.4.   Upon  two  weeks  prior  written  notice  to

Licensee,  Licensor  or  independent  accountants  selected  by  Licensor  may  have

access to such books and records to conduct a review or audit no more than twice

per  calendar  year  at  Licensors  discretion,  for  the  sole  purpose  of  verifying  the

accuracy  of  Licensee's  reports  and  Licensee's  compliance  with  this  Agreement.

Such access shall be permitted during Licensee's normal business hours during the

term of this Agreement and for three (3) years after the expiration or termination of

this Agreement. In the event of any underpayment, Licensee shall promptly pay to

Licensor  the  difference  between  the  amount  actually  paid  by  Licensee  and  the

amount determined to be owing under this Section 3.6. Any such inspection or audit

shall be at Licensor's expense.

3.7     REGULATORY FILINGS.  Where required by securities or regulatory

authority having jurisdiction, the Licensee and Licensor agree to make full disclosure

and comply with all securities, exchange and regulatory requirements.

4.0  DUE DILIGENCE

4.1.    DEVELOPMENT REPORTS. Licensee shall deliver to Licensor, every


120 days following the Operational Date, a written report setting forth in reasonable

detail (a) the identity of all Licensed Products or prototype products in research or

manufacturing,  (b)  the  stage  of  development  for  each  such  Licensed  Product  or

prototype  licensed  and  (c)  the  identity  of  any  pending  customer,  partnership  or

collaboration status, if any, related to the Licensee's efforts in connection with the

development and commercialization of the licensed Products.

4.2     EFFORTS. Licensee agrees to develop and commercialize Licensed

Products  in  a  secure  and  business-like  manner  within  the  Licensed  Field  and  to

obtain such approvals as may be necessary for the sale of Licensed Products in the

Licensed Field.  Licensee may conduct such activities itself or through third parties.

5.0  IMPROVEMENTS AND JOINT INVENTIONS.

5.1     DISCLOSURE.  As soon as reasonably possible. either upon creation,

development  of  an  Improvement  or  conception  or  reduction  to  practice  of  a  Joint

Invention, as the case may be. each party shall disclose the same in writing to the

other.  All such disclosures shall be maintained in strict confidence by the receiving

party.

5.2     IMPROVEMENTS.

5.2.1.   In  the  event  that  Licensor  develops  or  creates  Improvements,

and subject to the terms and conditions of this Agreement, Licensor agrees to grant

and  hereby  grants  to  Licensee  an  extension  to  The  Licensed  Field  for  such

Improvements  inside  the  Licensed  Field  under  the  same  terms  as  this  license

agreement.

5.2.2.   In the event that Licensee develops or creates Improvements,

and subject to the terms and conditions of this Agreement. Licensee agrees to grant

and   hereby   grants   to   Licensor   a   worldwide,   royalty-free,   sub-licensable,

non-cancellable.  exclusive  right  and  license  for  development,  application  and

commercialization for outside the Licensed Field.

6.0  REPRESENTATIONS. WARRANTIES AND COVENANTS

6.1     REPRESENTATIONS,    WARRANTIES    AND    COVENANTS    OF

LICENSOR.  Licensor represents and warrants that, as of the date hereof :

6.1.1.  Licensor is a corporation, duly organized, validly existing and on

good standing under the laws of the Province of its incorporation.

6.1.2.  Licensor has the right and authority to gram he rights and license


gamed to Licensee under this Agreement;

6.1.3.  The execution, delivery and performance of this Agreement have

been duly authorized by all necessary corporate action on the part of Licensor.

6.2     REPRESENTATIONS,    WARRANTIES    AND    COVENANTS    OF

LICENSEE.   Licensee  represents,  warrants  and  covenants  that,  as  of  the  date

hereof:

6.2.1.  Licensee  is a corporation, duly organized, validly existing and

in good standing under the laws of The United Kingdom.

6.2.2.  The execution, delivery and performance of this Agreement has

been duly authorized by all necessary corporate action on the part of Licensee: and

6.2.3.   Licensee  will  not  practice  any  of  the  rights  in,  to  or  under  the

Licensed  Products,  Licensed  Patents,  Joint  Patents,  Trade  Secrets  or  Licensed

Trademarks outside of the Licensed Field.

6.3     Nothing   in   this   Agreement   shall   be   construed   as   conferring,   by

implication,  estoppel  or  otherwise,  any  license  or  rights  under  any  patents,  trade

secrets or trademarks of Licensor other than the Licensed Patents, Licensed Trade

Secrets or Licensed Trademarks, regardless of whether such patents or trademarks

are  dominant  or  subordinate  to  the  Licensed  Patents  or  Licensed  Trademarks

respectively.

6.4     DISCLAIMER.  EXCEPT  AS  EXPRESSLY  PROVIDED  FOR  IN  THIS

AGREEMENT,   NEITHER   PARTY   MAKES,   AND   EACH   PARTY   HEREBY

DISCLAIMS, ANY AND ALL REPRESENTATIONS AND WARRANTIES OF ANY

KIND. EXPRESS OR IMPLIED, WITH RESPECT TO THE SUBJECT MATTER OF

THIS  AGREEMENT,  INCLUDING  WITHOUT  LIMITATION,  WARRANTIES  OF

MERCHANTABILITY,    FITNESS    FOR    A    PARTICULAR    PURPOSE    AND

NON-INFRINGEMENT AND ANY WARRANTY ARISING OUT OF PRIOR COURSE

OF DEALING AND USAGE OF TRADE.

7.0 INDEMNIFICATION

7.1     INDEMNITY.    Licensee  shall  indemnify,  defend  and  hold  harmless

Licensor  and  its  directors,  officers,  employees,  agents  and  consultants  (each  an

"Indemnitee")  from  and  against  any  and  all  liabilities,  damages,  losses,  costs  or

expenses (including reasonable attorneys' and professional fees and other expenses

of litigation and/or arbitration) (a "Liability") resulting from or arising out of a claim,


suit or proceeding brought by a third party against an Indemnitee for personal injury,

death,   product   liability   or   property   damage   arising   out   of   or   related   to   the

manufacture, use, or sale of Licensed Products within the Licensed Field except to

the  extent  such  claim  is  caused  by  the  gross  negligence  or  willful  misconduct  of

Licensor.

7.2     PROCEDURE. For purposes of Section 7.1, the Indemnitee shall give

prompt written notice to Licensee of any claims, suits or proceedings by third parties

which may give rise to any claim tor which indemnification may be required under

this Article 7.  Licensee shall be entitled to assume the defense and control of any

such claim at its own cost and expense, provided, however, that the Indemnitee shall

have the right to be represented by its own counsel at its own cost in such matters.

Neither licensee nor the Indemnitee shall settle or dispose of any such matter in any

manner  which  would  adversely  affect  the  rights  or  interests  of  the  other  party

(Including the obligation to indemnify hereunder) without the prior written consent of

the  other  party, which shall not be unreasonably withheld or delayed.   Each party

shall reasonably cooperate with the other party and its counsel in the course of the

defense  of  any  such  suit,  claim  or  demand,  such  cooperation  to  include,  without

limitation,  using  reasonable  efforts  to   provide  or  make  available  documents,

information and witnesses.

8.0  TERMINATION

8.1     TERM. The term of this Agreement shall commence upon the execution

of this agreement by both parties and continue in full force and effect for 15 years

unless terminated at an earlier date in accordance with Sections 8.2 and 8.3 below.

8.2     TERMINATION BY LICENSEE. Licensee shall have the right, but not

the  obligation,  to  terminate  this  Agreement  upon  the  occurrence  of  any  of  the

following events:

a)  Breach or default by Licensor of any representation or warranty made in

an material term or obligation pursuant to this Agreement, which breach or default

is  not  cured  within  thirty  (30)  days  after  notice  thereof  to  Licensor,  or  within  such

longer  reasonable  period  of  rime  during  which  Licensor  is  engaged  in  good  faith,

best efforts to cure such breach or default.

8.3 TERMINATION BY LICENSOR.  Licensor shall have the right but not the

obligation to terminate this Agreement upon the occurrence of any of the following

events:

(a)   Breach  or  default  of  any  material  term  or  obligation  pursuant  to  this

Agreement, which breach or default is not cured within thirty (30) days after notice


thereof,  or  within  such  longer  reasonable  period  of  time  during  which  Licensee  is

engaged in good faith, best efforts to cure such breach or default; or

(b)  The filing by Licensee of a petition in bankruptcy or for reorganization or

for  an  arrangement  pursuant  to  any  bankruptcy  law  of  the  United  Kingdom,  and

either  (i)  Licensee  consents  to  such  filing,  or  such  petition  is  not  dismissed  by

Licensee within thirty (30) days after the filing thereof.

(c)  The filing of a petition proposing the adjudication of Licensee pursuant to

any bankruptcy laws of the United Kingdom, and either fi licensee consents to such

filing and such petition is not dismissed by Licensee within thirty (30) days after the

filing thereof.

8.4     EFFECT  OF TERMINATION.   Article 6,  7,  9  and 10 shall survive the

termination of this Agreement.  All other provisions of this Agreement shall be of no

further force and effect upon such expiration or termination of this Agreement.  It is

expressly  recognized  that  termination  pursuant  to  Sections  8.2  and  8.3  hereof

(herein "for cause”) does not reduce or eliminate any monies due and payable at that

time.  Should  the  Licensor  terminate  this  License,  for  cause,  then  Licensee  is

obligated to cease all business operations, including the use of the name Rampart

and will be required to return to the Licensor all materials of any nature associated

with  or  encompassing  the  licensee's  activities  within  the  Licensed  Field.  This  will

include  all  financial  books  and  records  together  with  pending  and  past  customer

records.

9.0 CONFIDENTIAL INFORMATION

9.1     CONFIDENTIALITY.  In connection with this Agreement, the parties will

provide  to  each  other  Confidential  information,  including  but  not  limited,  to  each

party's know how, invention disclosures, proprietary materials and/or technologies,

economic information, business or research strategies, trade secrets and material

embodiments   thereof.   As   used   herein,   "Confidential   Information"   means   any

information  of  a  confidential  or  proprietary  nature  disclosed  by  a  party  to  this

Agreement to the other party in written or oral form.

9.2     CONFIDENTIALITY AND NON-USE.  The recipient of a disclosing party

s confidential information shall maintain such Confidential Information in confidence

and  shall  disclose  such  Confidential  Information  only  to  those  of  Its  employees,

agents, consultants, subcontractors, attorneys, accountants and other advisors who

have a reasonable need to know such Confidential Information and who are bound

by obligations of confidentiality and non-use no less restrictive than those set forth

herein. The recipient of the disclosing party's Confidential Information shall use such

Confidential Information solely to exercise its rights and perform its obligations under


this  Agreement  including,  without  limitation,  the  right  to  use  and  disclose  such

Confidential  Information  in  regulatory  applications  and  filings),  unless  otherwise

mutually  agreed   in   writing.

The   recipient   of   the   other   party’s   Confidential

Information  shall  take  the  same  degree  of  care  that  it  uses  to  protect  its  own

confidential and proprietary information of a similar  nature  and  importance (but in

any event no less than reasonable care).

9.3     EXCLUSIONS.  Confidential information shall not include information

that: (a)  is in the recipient's possession prior to receipt from the disclosing party as

demonstrated by contemporaneous documentation, (b) is or becomes, through no

fault of the recipient, publicly known; (c) is furnished to the recipient by a third party

without bleach of a duty to the disclosing party; (d) is independently developed by

the  recipient  without  use  of.  application  of  or  reference  to  the  disclosing  party's

Confidential Information as demonszated by contemporaneous documentation.

9.4     LEGAL  DISCLOSURES.  It  shall  not  be  a  violation  of  this  Article  9  to

disclose Confidential Information required to he disclosed under applicable law, but

such disclosure shall be only for the sole purpose of and solely to the extent required

by such  law,  and  provided  that  the  recipient,  to  the  extent  possible,  shall  give  the

disclosing party prior written notice of the proposed disclosure and cooperate fully

with the disclosing party to minimize the scope of any such required disclosure, to

the extent possible and in accordance with applicable law.

9..5. TERMINATION. All obligations of confidentiality and non-use imposed

under  this  Article  9  shall  expire  three  (3)  years  after  the  termination  of  this

Agreement.

10.  MISCELLANEOUS

10.1   USE OF NAME. Licensee agrees that it shall not use the name of the

Licensor in any advertising or publicity material, or make any form of representation

or statement which would constitute an express or implied endorsement by Licensor

of any Licensed Product, and that it shall not authorize others to do so, without first

having  obtained  written  approval  from  Licensor,  except  as  may  be  required  by

governmental law, rule or regulation.

10.2   PRESS  RELEASES.  The  parties  may  agree  to  issue  a  joint  press

release upon execution of this Agreement or as promptly as practicable thereafter.

The content of any such Joint press release will be agreed upon by both parties.

10 3.   MARKING REQUIREMENT. Licensee agrees to mark the appropriate

patent  number  or  numbers  on  all  Licensed  Products  made  or  Sold  in  accordance

with all applicable governmental laws, rules and regulations to the extent reasonably


possible, and to require. its Sub licensees to do the same.

10 4.  GOVERNING   LAW.   This   Agreement   shall   be   governed   by, and

construed and interpreted, in accordance with the internal laws of the Province of

British Columbia, Canada, without giving effect to any choice of law rule that would

cause the application of the laws of any jurisdiction other than the internal laws of the

Province of British Columbia to the rights and duties of the parties.

10.5   ARBITRATION.  All  disputes  arising  between  the  parties  under  this

Agreement  will  be  settled  by  arbitration  conducted  in  the  English  language  in

accordance  with  the  Commercial  Arbitration  Rules  of  the  Canadian  Arbitration

Association. The parties will cooperate with each other in causing the arbitration to

be  held  in  as  efficient  and  expeditious  a  manner  as  practicable.  Any  arbitration

proceeding instituted under this Agreement will be brought in a mutually  agreeable

neutral territory.  Any award rendered by the arbitrators will be final and binding upon

the parties hereto.  Judgment upon the award may be entered in any court of record

of  competent  jurisdiction.   Each  party will  pay its  own  expenses  of  arbitration  and

expenses  of the arbitrators will be equally shared unless the arbitrators assess as

part of their award all or any part of the arbitration expenses of one party (including

reasonable  attorneys'  fees  against  the  other  party.   Each  party  irrevocably  and

unconditionally consents to the jurisdiction of any such proceeding and waives any

objection that it may have to personal jurisdiction or the laying of venue of any such

proceeding.

10.6   FORCE  MAJEURE.  Neither  party  shall  be  held  responsible  for  any

delay   or   failure   in   performance   (with   the   exception   of   the   payment   of

money)hereunder   to   the   extent   caused   by   strikes,   embargoes,   unexpected

government requirements, civil or military authorities, acts of God, earthquake, or by

the  public  enemy  or  other  causes  reasonably  beyond  such  party's  control  and

without such party's fault or negligence, provided that  the  affected party notify the

unaffected  party  as  soon  as  reasonably  possible,  and  resumes  performance

hereunder as soon as reasonably possible following exception of such force majeure

event.

10.7   INDEPENDENT CONTRACTORS. The relationship of Licensor and

Licensee established by this Agreement is that of independent contractors. Nothing

in  this  Agreement  shall  be  constructed  to  create  any  other  relationship  between

Licensor and Licensee.  Neither party shall have any right, power or authority to bind

the other or assume, create or incur any expense, liability or obligation, express or

implied, on behalf of the other.

10.8   ASSIGNMENT.      The  parties  agree  that  their  rights  and  obligations

under this Agreement may not be transferred or assigned to a third party without the


prior written consent of the other party hereto. Notwithstanding the foregoing, a party

may  transfer  or  assign  its  rights  and  obligations  under  this  agreement,  without

consent, to a successor to all or substantially all of its business or assets relating to

this  Agreement,  whether  by  sale,  merger,  operation  of  law  or  otherwise.    Any

assignment not in conformance with this Section 10.8 shall be null and void and or

no legal effect.

10.9   NOTICES.  Any notice, report, communication or consent required or

permitted  by  this  Agreement  shall  be  in  writing  and  shall  be  sent  (a)  by  prepaid

registered  or  certified  mail,  return  receipt  requested,  (b)  by  overnight  express

delivery service by a nationally recognized courier, or (c) via confirmed facsimile or

telecopy,  followed  within  five  (5)  days  by a  copy mailed  in  the  preceding  manner,

addressed to the other party at the address shown below or at such other address

for  which  such  party  gives  notice  hereunder.  Such  notice  will  be  deemed  to  have

been  given when delivered or, if delivery is not accomplished by some fault of the

addressee, when tendered.

If to Licensor.

Rampart Detection Systems Ltd.

c/o Smetheram & Company

450-1090 West Georgia Street

Vancouver BC Canada

V6E 3V7

If to Licensee

Rampart Reconnaissance, Inc.

c/o Dieterich & Associates

11835 West Olympic, Suite 1235

Los Angeles, CA 90064

10.10 MODIFICATION;  WAIVER.    This  Agreement  may  not  be  altered,

amended  or  modified  in  any  way  except  by  a  writing  signed  by  both  parties.  The

failure of a party to enforce any rights or provisions of the Agreement  shall not be

construed to be a waiver of such rights or provisions, or a waiver by such party to

thereafter  enforce  such  rights  or   provision  or  any  other  rights  or  provisions

hereunder  No  waiver  shall  he  effective  unless  made  in  writing  and  signed  by  the

waiving party.

10.11  SEVERABILITY.   If any provision of this Agreement shall be found by

a court to be void, invalid or unenforceable, the same shall be reformed to comply

with applicable laws.

IN   WITNESS   WHEREOF,   Licensor   and   Licensee   have   caused   this

Agreement to be executed by their respective duly authorized representatives the

day and year first above written.


/s/ Kenneth Swaisland

Rampart Detections Systems, Ltd.

/s/ Kenneth Swaisland

Rampart Environmental Solutions, Inc.


Schedule A - The Licensed Product


[ex106licensefromdetection001.jpg]


[ex106licensefromdetection002.jpg]


[ex106licensefromdetection003.jpg]


Schedule B

The License Field:

The exclusive application of the Licensed Product and Improvements to Oil and Gas

Companies having business operations within the Continental United States and its

Territories, Waterways and Coastal Regions.