Extension Agreement dated as of January 14, 2006 between NorPac Technologies, Inc. and Balsam Ventures, Inc

Extension of Minimum Royalty Commencement Date. Section 4.3 of the License Agreement is hereby revised to read as follows:

“Notwithstanding that there may be no Gross Profits or Gross License Revenues the Licensee shall pay minimum royalties to the Licensor on the 15th day of each month commencing on January 15, 2007 of $5,000 per month, which minimum royalty payments shall be credited to any royalties that may become payable in the fiscal quarter in which they are paid.”

Grant of Extension. In consideration of the grant of the extension of the Minimum Royalty Commencement Date, Balsam agrees to:

issue 500,000 shares of its common stock (the “Balsam Shares”) to NorPac; and

pay US$20,000 to NorPac on or before January 31, 2006.

Issuance of Balsam Shares. The Balsam Shares to be issued pursuant to this Extension Agreement will be “restricted shares”, as contemplated under United States Securities Act of 1933, and the certificates representing the Balsam Shares will be endorsed with the following legend:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN ISSUED IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED

FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE EXEMPT FROM SUCH REGISTRATION.”

No Other Modification. The parties confirm that the terms, covenants and conditions of the License Agreement remain unchanged and in full force and effect, except as modified by this Agreement.

Headings. The headings of the various sections of this Extension Agreement have been inserted for convenience of reference only and shall not be deemed to be part of this Extension Agreement.

Counterparts. This Extension Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties.

Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

Equal Participation in Drafting. The parties have equally participated in the drafting of the Extension Agreement, each having had the opportunity to be independently represented by counsel. Balsam acknowledges that O’Neill Law Group PLLC have acted solely for NorPac in connection with the preparation, negotiation and execution of this Extension Agreement and Balsam has been advised to obtain the advice of independent legal counsel in entering into this Extension Agreement.

Entire Agreement. This Extension Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subject hereof.