Document:

Form 8-K

Page 1 of 2

TERMINATION
AGREEMENT

THIS
AGREEMENT is made effective the 6th day of July, 2006.

BETWEEN:

Tora
Technologies Inc.
205-1990 Kent Ave. SE
Vancouver, BC
Canada,
V5P 4X5

(hereinafter called “TORA”)

AND:

LA
Embroidery Inc.
818 Renfrew St.
Vancouver, BC
Canada, V4K
4B6

(hereinafter called “LA”)

WHEREAS:

TORA
and LA wish to terminate all Service Agreements that have been
previously entered into.

NOW
THEREFORE THIS AGREEMENT WITNESS THAT the parties mutually agree
as follows:

	
	TERMINATION

	
	TORA and LA
	agree to immediately terminate all agreements that have been
	previously entered into. Additionally, TORA and LA agree that there
	will be no further financial commitments between the two parties.

	
	GOVERNING
	LAW

	
	This
	Agreement shall be governed by and construed in accordance of the
	laws of the province of British Columbia, Canada, and the parties
	hereby irrevocably attorn to the courts of such province.

Page 2 of 2

IN WITNESS WHEREOF the parties have executed
this Agreement by their duly authorized signatories as the day and
year first above written.

	
			Tora Technologies, Inc.

			Per: /s/ Ralph Biggar

			Ralph Biggar

			
			LA Embroidery Inc.

			Per: /s/ Antonio Pires

			Antonio PiresEX-10.1

 Share Purchase Agreement

1. Interpretation

	 	 	 
	1.1

1.2

1.3

1.4

1.5

	 	Definitions

Headings

Extended Meanings

Accounting Principles

Currency

2. Schedules

3. Purchased Shares and Purchase Price

	 	 	 
	3.1 Purchase

3.2

3.3

	 	

Payment of Purchase Price

Adjustment to Purchase Price

4. Vendor’s and Wave Wireless’ Representations and Warranties

	 	 	 
	4.1

4.2

4.3

4.4

4.5

	 	Corporate and Share Representations

Financial and Tax Representations

Property Representations

Contractual Representations

General Vendor and Wave Wireless’ Representations

5. Purchaser’s Representations and Warranties

5.1 Corporate and General Representations

6. Vendor’s and Wave Wireless’ Covenants

	 	 	 
	6.1

6.2

6.3

6.4

6.5

6.6

	 	Consents

Possession

Books and Records

Interim Management—Positive Covenants

Interim Management—Negative Covenants

Other

7. Purchaser’s Covenant

	 	7.1	 	Financial Records

	 	7.2	 	Other

8. Purchaser’s Conditions of Closing

	 	8.1	 	Conditions

	 	8.2	 	Termination

8.3 Waiver

9. Vendor’s and Wave Wireless’ Conditions of Closing

	 	 	 
	9.1

9.2

9.3

	 	Conditions

Termination

Waiver

10. Closing Arrangements

	 	 	 
	10.1

10.2

10.3

	 	Closing Location

Vendor’s and Wave Wireless’ Closing Documents

Purchaser’s Closing Documents

10.4 Witholding Tax and Clearance Certificate

11. General

	 	 	 
	11.1

11.2

11.3

11.4

11.5

11.6

11.7

11.8

11.9

11.10

11.11

11.12

11.13

11.14

11.15

11.16

	 	Reliance

Survival of Vendor’s and Wave Wireless’ Representations

Indemnification by the Vendor and Wave Wireless

Survival of Purchaser’s Representations

Indemnification by the Purchaser

Commissions, Legal Fees

Notices

Time of Essence

Further Assurances

Proper Law

Entire Agreement

Assignment

Benefit and Binding Nature of the Agreement

Amendments and Waiver

Notice by the Corporation

Counterparts

THIS AGREEMENT made as of July 1, 2006

BETWEEN:

WaveRider Communications Inc., a Delaware Corporation, having a principal place of
business at 255 Consumers Road, Suite 500, Toronto, Ontario, M2J 1R4.

(the “Vendor”)

	 	 	 	Wave Wireless Corporation, a Delaware Corporation, which is the parent company
of

the Vendor, having a principal place of business at 1996 Lundy Avenue, San Jose, CA
95131.

(“Wave Wireless”)

AND:

VCom Inc., a Canadian Corporation having a place of business at 4210 Commerce Circle,
Victoria, BC, Canada, V8Z 6N6.

(“VCom” or the “Purchaser”)

	 	 	WHEREAS:

	A.	 	The Vendor is the registered and beneficial owner of all the issued and outstanding shares in
the capital of WaveRider Communications (Canada) Inc. (“WaveRider Canada”), being 3,200 common
 shares (the “WaveRider Canada Shares”).

	B.	 	WaveRider Canada is the registered and beneficial owner of all of the issued and outstanding
 shares of Jetstream Internet Services Inc. (“Jetstream”), being 1 common share (the “Jetstream
Share”).

	C.	 	The Vendor is the registered and beneficial owner of all the issued and outstanding shares in
the capital of Avendo Wireless Inc. (“Avendo”), being 3,090,000 common shares, (the “Avendo
Shares”).

	D.	 	The Vendor is the registered and beneficial owner of all the issued and outstanding shares in
the capital of WaveRider Communications (USA) Inc. (“WaveRider USA”), being 100 common shares,
(the “WaveRider USA Shares”).

	E.	 	Wave Wireless is the registered and beneficial owner of all of the issued and outstanding
 shares of the Vendor.

	F.	 	The Vendor, as the registered and beneficial owner of the Acquired Shares, has agreed to
sell, and the Purchaser has agreed to purchase, the Acquired Shares, on the terms and
conditions contained in this Agreement.

	G.	 	Following the purchase of the Acquired Shares by the Purchaser from the Vendor, the
Purchaser will use commercially reasonable efforts to continue WaveRider Canada’s business of
the manufacture, distribution and servicing of a line of 900 MHz radios and related products
and peripheral equipment (the “900 MHz Product Line”). Subject to the provisions of Recitals J
and K below, the Purchaser intends to take over the responsibility for having the 900 MHz
Product Line manufactured and delivered to Wave Wireless. Wave Wireless and the Vendor will
continue to offer the 900 MHz Product Line for sale to its customers. The Purchaser will add
the 900 MHz Product Line to its offering to its customers worldwide.

	H.	 	Following the purchase of the Shares, the Purchaser will use commercially reasonable efforts
to continue Jetstream’s business of operating an ISP business in Salmon Arm, British Columbia
serving approximately 1,700 subscribers.

	I.	 	Manufacture of the 900 MHz Product Line is performed by Solectron Corporation (“Solectron”)
pursuant to a supply agreement entered into by WaveRider Canada and Solectron (the “Solectron
Supply Agreement”). Wave Wireless and the Vendor will facilitate Purchaser’s transition into
managing the 900 MHz Product Line product supply by providing the IP Licence (defined below)
and all necessary design, manufacturing and testing information, as well as all dyes and test
jigs to the Purchaser to allow the Purchaser to manufacture the 900 MHz Product Line. Prior to
closing, Wave Wireless and the Vendor shall use their best efforts to negotiate the discharge
of security interest granted by WaveRider Canada to Solectron (the “Solectron Lien”) as part
of the Solectron Supply Agreement.

	J.	 	The Purchaser and Wave Wireless will use their commercially reasonable best efforts to enter
into a long-term supply agreement with respect to the 900 MHz Product Line (the “VCom Supply
Agreement”). The Purchaser will review the Solectron Supply Agreement and will, where
practicable, and commercially reasonable, incorporate its terms into the VCom Supply
Agreement. Wave Wireless and the Vendor shall provide the Purchaser with a General Security
Agreement creating a security interest over all of its present and after acquired properties
and assets as security for performance of its obligations under the VCom Supply Agreement and
repayment of any indebtedness owing by Wave Wireless or the Vendor to the Purchaser pursuant
to the VCom Supply Agreement. The VCom Supply Agreement shall set forth the prices for
products which are part of the 900 MHz Product Line, which prices shall be FOB factory. The
VCom Supply Agreement will also include provisions pursuant to which Wave Wireless and the
Vendor will provide the Purchaser with initial support in manufacturing the 900 MHz Product
Line. The initial prices for products which are part of the 900 MHz Product Line shall be as
set forth in Schedule 11 to this Agreement. The VCom Supply Agreement will also contain terms
pursuant to which the Purchaser will agree to provide repair services to Wave Wireless
customers with respect to the 900 MHz Product Line products currently in the customer base
including repair services performed under warranty. The Purchaser and Wave Wireless shall
agree to a fee schedule with respect to these repair services prior to the Purchaser being
obligated to provide such services.

	K.	 	The Purchaser and Vendor will use their commercially reasonable best efforts to enter into a
licence agreement with respect to the intellectual property related to the 900 MHz Product
Line, pursuant to which VCom will receive a transferable, perpetual, exclusive, worldwide
licence from the Vendor (the “IP Licence”): (i) to utilize the existing intellectual property,
which is owned by, or licensed by its Affiliates to, the Vendor in the 900 MHz Product Line,
and in the support, repair, development, improvement, manufacture, use, licensing (at any
level)sale and lease thereof; and (ii) to incorporate such intellectual property into
derivative products (the “Derivative Products”) and utilize such intellectual property in the
support, repair, development, improvement, manufacture, use, licensing (at any level) sale and
lease thereof . With respect to current products in the 900 MHz Product Line, the IP Licence
shall be royalty free with respect to 900 MHz Product Line sales made by the Purchaser to Wave
Wireless or its Affiliates and shall provide for a royalty fee of 5% of the net sales price
(net of discounts, charge-backs, returns, warranty claims and other setoffs) actually received
by the Purchaser in respect of any 900 MHz Product Line sales made by the Purchaser to its
customers. With respect to Derivative Products, the IP Licence shall be royalty free with
respect to Derivative Products sold to Wave Wireless or its affiliates. The Purchaser and the
Vendor will use their commercially reasonable best efforts to negotiate a royalty fee (the
“Derivative Product Royalty Fee”) to be paid by the Purchaser to the Vendor in respect of each
Derivative Product which is sold by the Purchaser to its customers.

TERMS OF AGREEMENT

NOW THEREFORE, in consideration of the respective covenants, agreements, representations,
warranties and indemnities herein contained and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby covenant and agree as follows:

	1.	 	INTERPRETATION

	1.1	 	Definitions

Whenever used in this Agreement or in the Schedules hereto, unless there is something in the
subject matter or context inconsistent therewith, the following words and terms will have the
indicated meanings and grammatical variations of such words and terms will have corresponding
meanings:

	 	(a)	 	“Acquired Companies” means WaveRider Canada, Jetstream, Avendo and WaveRider
USA.

	 	(b)	 	“Acquired Shares” means the WaveRider Canada Shares, the Avendo Shares and
the WaveRider USA Shares;

	 	(c)	 	“Affiliate” has the meaning set out in the Canada Business Corporations Act;

	 	(d)	 	“Agreement” means this share purchase agreement together with its schedules
and all amendments made hereto by written agreement between the Vendor, Wave Wireless
and the Purchaser;

	 	(e)	 	“Business” means, in the case of:

	 	(i)	 	WaveRider Canada, its business of the manufacture,
distribution and servicing of a line of 900 MHz radios to customers worldwide;

	 	(ii)	 	Jetstream, its business as an Internet Service Provider;

	 	(iii)	 	Avendo, its business of the development of its MIMO antenna
technology; and

	 	(iv)	 	WaveRider USA, its business as an investment holding company.

	 	(f)	 	“Clearance Certificate” – means a certificate issued by the Canadian Minister
of National Revenue pursuant to Section 116 of the Tax Act (a “Section 116
Certificate”);

	 	(g)	 	“Closing Date” means July 1, 2006 or such other date as may be mutually
agreed upon in writing by the parties;

	 	(h)	 	“Contracts” includes all contracts listed in Schedule 6 and all other
contracts entered into by the Acquired Companies in the ordinary course of business;

	 	(i)	 	“Encumbrances” means mortgages, charges, pledges, security interests, liens,
encumbrances, actions, rights and claims, adverse interests, acquisition rights of
Third Parties, demands and equities of any nature, whatsoever or howsoever arising,
and any rights or privileges capable of becoming any of the foregoing;

	 	(j)	 	“Financial Statements” means: (i) the audited financial statements of the
Acquired Companies for the year ending December 31, 2005, and (ii) the unaudited
interim financial statements of the Acquired Companies for the period ending May 31,
2006; copies of which are attached to this Agreement as Schedule 1;

	 	(k)	 	“General Security Agreement” means the general security agreement, to be
entered into by Wave Wireless and the Purchaser, creating a security interest over all
of Wave Wireless and its Affiliates’ present and after acquired properties and assets
as security for performance of its obligations under the VCom Supply Agreement and
repayment of any indebtedness owing by Wave Wireless or its Affiliates to the
Purchaser pursuant to the VCom Supply Agreement;

	 	(l)	 	“Holdback” means 25% of the portion of the Purchase Price allocated to the
WaveRider Canada Shares and the Avendo Shares, which amount is to be retained by VCom
pending finalization of the transfer of WaveRider Canada’s business operations,
delivery by the Vendor to the Purchaser of a Clearance Certificate fixing an amount
equal to the portion of the Purchase Price allocated to the WaveRider Canada Shares
and the Avendo Shares and any other adjustments contemplated herein.

(m) “Leases” means the leases listed in Schedule 7;

(n) “Licences and Permits” means the licences and permits listed in Schedule 10;

	 	(o)	 	“Purchaser’s Closing Certificate” means the instrument in the form attached
as Schedule 2 to be executed and delivered by the Purchaser to the Vendor under
Section 9.1(d);

	 	(p)	 	“Returns” shall mean all reports, estimates, declarations, information
statements, elections, designations and returns of any kind relating to, or required
to be filed in connection with, any Taxes;

(q) “Shares” means the Acquired Shares and the Jetstream Share;

	 	(r)	 	“Taxes” shall mean, with respect to any person, all taxes, however
denominated (including any interest, penalties or other additions that may become
payable in respect thereof) imposed by any federal, provincial, territorial, state,
local or foreign government or any agency or political subdivision of any such
government, which taxes shall include all income or profits taxes (including federal,
provincial and state income taxes), capital taxes, payroll and employee withholding
taxes, health taxes, employment insurance premiums, Canada or Quebec Pension Plan
contributions, social insurance taxes, sales and use taxes, goods and services tax, ad
valorem taxes, excise taxes, franchise taxes, gross receipts taxes, business license
taxes, occupation taxes, real and personal property taxes, stamp taxes, environmental
taxes, transfer taxes, workers’ compensation and other governmental charges, and other
obligations of the same or of a similar nature to any of the foregoing, which a person
is directly or indirectly required to pay, withhold, remit, or collect and, in
particular and without limiting the generality of the foregoing, all amounts payable
under the Tax Act;

	 	(s)	 	“Tax Act” means the Income Tax Act (Canada) and the regulations thereunder,
as amended;

	 	(t)	 	“Time of Closing” means 12 Noon Eastern Daylight timeon the Closing Date or
at such other time on the Closing Date as may be mutually agreed upon in writing by
the parties; and

	 	(u)	 	“Vendor’s Closing Certificate” means the instrument in the form attached as
Schedule 3 to be executed and delivered by the Vendor and Wave Wireless to the
Purchaser under Section 8.1(e).

	1.2	 	Headings

The division of this Agreement into Articles and sections and the insertion of headings are for
convenience of reference only and shall not affect the construction or interpretation of this
Agreement. The terms “this Agreement”, “hereof”, “hereunder” and similar expressions refer to this
Agreement and not to any particular Article, section or other portion hereof and include any
agreement supplemental hereto. Unless something in the subject matter or context is inconsistent
therewith, references herein to Articles and sections are to Articles and sections of this
Agreement. The parties hereto acknowledge that their respective legal counsel have reviewed and
participated in settling the terms of this Agreement, and the parties hereby agree that any rule of
construction to the effect that any ambiguity is to be resolved against the drafting party shall
not be applicable in the interpretation of this Agreement.

	1.3	 	Extended Meanings

In this Agreement words importing the singular number only shall include the plural and vice versa,
wordings importing the masculine gender shall include the feminine and neuter genders and vice
versa and words importing persons shall include individuals, partnerships, associations, trusts,
unincorporated organizations and companies. The term “including” shall mean including without
limitation.

	1.4	 	Accounting Principles

Wherever in this Agreement reference is made to a calculation to be made in accordance with
generally accepted accounting principles, such reference shall be deemed to be to the generally
accepted accounting principles from time to time approved by, in the case of the WaveRider Canada,
Jetstream and Avendo, the Canadian Institute of Chartered Accountants, and in the case of WaveRider
USA, the American Institute of Certified Public Accountants, or any successor institute, applicable
as at the date on which such calculation is made or required to be made in accordance with
generally accepted accounting principles applied on a basis consistent with prior years.

	1.5	 	Currency

All references to currency herein are to lawful money of Canada unless otherwise indicated.

	2.	 	SCHEDULES

The following schedules are attached to and incorporated in this Agreement by reference and deemed
to be part of this Agreement:

	 	 	 	Schedule 1—Financial Statements (1(c), 4.2(b))

	 	 	 	Schedule 2—Purchaser’s Closing Certificate (1(d), 9.1(e))

	 	 	 	Schedule 3—Vendor’s Closing Certificate (1(f), 8.1(f))

	 	 	 	Schedule 4—Articles of the Acquired Companies (4.1(h))

	 	 	 	Schedule 5—Non-arm’s Length Property (4.2(o))

	 	 	 	Schedule 6—Material Assets, Contracts and Agreements (4.3(a), 4.3(b), 4.4(a), 4.4(b), 4.5(b))

	 	 	 	Schedule 7—Leases (4.3(a), 4.3(c), 4.4(b))

	 	 	 	Schedule 8—Employees (4.4(b), 4.4(d))

	 	 	 	Schedule 9—Directors and Officers of the Acquired Companies (4.4(e))

	 	 	 	Schedule 10—Licences and Permits (4.3(a), 4.4(a), 4.4(b), 4.5(h))

Schedule 11 – Initial Prices for 900 MHz Product Line

	3.	 	PURCHASED SHARES AND PURCHASE PRICE

	3.1	 	Purchase

Subject to the terms and conditions of this Agreement and based on the representations and
warranties of the Vendor set forth in this Agreement, on the Closing Date the Vendor will sell,
assign and transfer to the Purchaser and the Purchaser will purchase from the Vendor all (but not
less than all) of the Acquired Shares for a total purchase price of US$915,878.00  (the “Purchase
Price”) subject to adjustment in the manner provided in Section 3.3 below. The Purchase Price
shall be allocated as follows:

	 	 	 	 	 
	
 
	 	WaveRider Canada Shares

Avendo Shares

WaveRider USA Shares
	 	US$915,876.00

US$ 1.00

US$ 1.00
	 
	 	 	 	 
	3.2

	 	Payment Purchase Price
	 	

The Purchase Price will be paid and satisfied as provided in Section 10.3 and delivered by the
Purchaser to the Vendor on the Closing Date against delivery to the Purchaser of a share
certificates evidencing the Shares duly endorsed for transfer to the Purchaser.

	3.3	 	Adjustment to Purchase Price

The Purchase Price shall be initially based on the May 31, 2006 interim Financial Statements for
the Acquired Companies and shall be finally adjusted post closing to reflect the net changes in the
items in 3.3(a) to (g) below between May 31, 2006 and the Closing Date (the “Post Closing Purchase
Price Adjustments”). The Purchase Price will be:

	 	(a)	 	decreased, dollar for dollar, by an amount equal to all liabilities owing by
the Acquired Companies to non-arm’s length or related parties (including the Vendor,
Wave Wireless and their Affiliates) other than other Acquired Companies as at the
Closing Date ;

	 	(b)	 	decreased, dollar for dollar, by an amount equal to any severance or similar
obligation owed by the Acquired Companies to any of the employees to be terminated by
the Acquired Companies prior to or contemporaneously with the Closing and not fully
reflected in the current liabilities of the Acquired Companies as at the Closing Date
; and

	 	(c)	 	increased, dollar for dollar, by an amount equal to the value of the
non-obsolete inventory of the Acquired Companies as at the Closing Date subject to
verification by physical inventory count to be performed by the Purchaser within 90
days of Closing, based on the actual cost of such inventory to the Acquired Companies;

	 	(d)	 	increased, dollar for dollar, by an amount equal to the net cash balances of
the Acquired Companies as at the Closing Date;

	 	(e)	 	increased, dollar for dollar, by an amount equal to the accounts receivable
of the Acquired Companies which have been outstanding for less than 90 days as at the
Closing Date;

	 	(f)	 	decreased, dollar for dollar, by an amount equal to the accounts payable of
the Acquired Companies as at Closing Date.

	 	(g)	 	increased or decreased, as the case may be, for the net change in the other
assets or liabilities of the Acquired Companies not specifically listed in 3(a) to (f)
as at the Closing Date, with the exception of the intercompany debt owed by WaveRider
Canada to WaveRider USA.

	4.	 	VENDOR’S AND WAVE WIRELESS’ REPRESENTATIONS AND WARRANTIES

	 	 	In order to induce the Purchaser to enter into and consummate this Agreement, the Vendor and
Wave Wireless jointly and severally represent and warrant to the Purchaser as follows and
acknowledge that notwithstanding any independent searches or investigations that may be
undertaken by or on behalf of the Purchaser, except as otherwise disclosed in any document
provided to the Purchaser , the Purchaser is relying upon the accuracy of each of such
representations and warranties in connection with its purchase of the Acquired Shares and
completion of the other transactions contemplated hereunder:

	4.1	 	Corporate and Share Representations

	 	(a)	 	WaveRider Canada is a valid and subsisting corporation, duly incorporated and
organized under the law of Canada, is not a reporting issuer and is in good standing
with respect to the filing of annual returns pursuant to the Canada Business
Corporations Act.

	 	(b)	 	Jetstream is a valid and subsisting corporation, duly incorporated and
organized under the law of Canada, is not a reporting issuer and is in good standing
with respect to the filing of annual returns pursuant to the Canada Business
Corporations Act.

	 	(c)	 	Avendo is a valid and subsisting corporation, duly incorporated and organized
under the law of Ontario, is not a reporting issuer and is in good standing with
respect to the filing of annual returns pursuant to the Ontario Business Corporations
Act.

	 	(d)	 	WaveRider USA is a valid and subsisting corporation, duly incorporated and
organized under the law of Nevada , is not a reporting issuer and is in good standing
with respect to the filing of annual returns pursuant to the General Corporation Law
of the State of Nevada.

	 	(e)	 	Each of the Acquired Companies has the corporate power to own the assets
owned by it and to carry on its Business.

	 	(f)	 	The authorized capital of WaveRider Canada is an unlimited number of common
 shares with no par value, of which the WaveRider Canada Shares are the only shares of
WaveRider Canada issued and outstanding. The WaveRider Canada Shares are validly
issued and outstanding as fully paid and non-assessable shares in the capital of
WaveRider Canada.

	 	(g)	 	The authorized capital of the Jetstream is 2,000,000 common shares with no
par value, of which the Jetstream Share is the only share of Jetstream issued and
outstanding. The Jetstream Share is validly issued and outstanding as a fully paid and
non-assessable share in the capital of Jetstream.

	 	(h)	 	The authorized capital of Avendo is an unlimited number of            common shares
with no par value, of which the Avendo Shares are the only shares of Avendo issued and
outstanding. The Avendo Shares are validly issued and outstanding as fully paid and
non-assessable shares in the capital of Avendo.

	 	(i)	 	The authorized capital of the WaveRider USA is 1,000 common shares with a
par value of US$0.01, of which the WaveRider USA Shares are the only shares of
WaveRider USA issued and outstanding. The WaveRider USA Shares are validly issued and
outstanding as fully paid and non-assessable shares in the capital of WaveRider USA.

	 	(j)	 	The Vendor owns all of the Acquired Shares as legal and beneficial owner,
free and clear of all Encumbrances. WaveRider Canada owns the Jetstream Share as
legal and beneficial owner, free and clear of all Encumbrances

	 	(k)	 	The Vendor and Wave Wireless have due and sufficient right and authority to
enter into this Agreement on the terms and conditions set forth in this Agreement and
to transfer the legal and beneficial title to and ownership of the Acquired Shares to
the Purchaser, free and clear of all Encumbrances.

	 	(l)	 	No person, firm or corporation has any agreement or option or any right
capable at any time of becoming an agreement to:

	 	(i)	 	purchase or otherwise acquire the Shares or any of the
unissued shares in the capital of the Acquired Companies; or

	 	(ii)	 	require the Vendor or Wave Wireless to sell, transfer,
assign, pledge, charge, mortgage or in any other way dispose of or encumber
any of the Shares other than under this Agreement.

	 	(m)	 	The Articles of Incorporation of each of the Acquired Companies are as
attached in Schedule 4.

	4.2	 	Financial and Tax Representations

	 	(a)	 	The Financial Statements of the Acquired Companies are true and correct in
every material respect and present fairly the assets, liabilities and financial
position of each of the Acquired Companies as at December 31, 2005, or May 31, 2006,
as the case may be, including without limitation, all contingent liabilities and the
results of its operations for the period set out in each of the Financial Statements,
in accordance with generally accepted accounting principles applied on a basis
consistent with that of the previous period.

	 	(b)	 	There are no liabilities, contingent or otherwise, of the Acquired Companies
which are not disclosed or reflected in the Financial Statements except those incurred
in the ordinary course of business, none of which are material, and (except in
respect of the Solectron Lien, if not discharged prior to the Time of Closing) none of
the Acquired Companies have guaranteed, or agreed to guarantee, any debt, liability or
other obligation of any person, firm or corporation. Except as disclosed in the
Financial Statements, there are no liabilities of any other party capable of creating
an Encumbrance on any of the assets of any of the Acquired Companies.

	 	(c)	 	None of the Acquired Companies is indebted to the Vendor, Wave Wireless, the
other Acquired Companies, or any of their respective Affiliates, directors, officers
or employees except as disclosed in the Financial Statements.

	 	(d)	 	Neither the Vendor, Wave Wireless nor any Affiliate, officer, director or
employee of the Acquired Companies is now indebted or under obligation to any of the
Acquired Companies on any account.

	 	(e)	 	Since December 31, 2005, no dividend or other distribution on any shares in
the capital of the Acquired Companies has been made, declared or authorized and none
of the Acquired Companies has either purchased or redeemed or agreed to purchase or
redeem any of the Shares.

	 	(f)	 	No payment of any kind has been made or authorized by the Acquired Companies
since December 31, 2005 to or on behalf of the Vendor or Wave Wireless. Since December
31, 2005, the Acquired Companies have not paid or agreed to pay any compensation,
pension, bonus, share of profits or other benefit to, or for the benefit of, any
employee, director or officer of the Acquired Companies except in the ordinary course
of business.

	 	(g)	 	Since December 31, 2005:

	 	(i)	 	there has not been any material adverse change in the
affairs, business, prospects, operations or condition of the Acquired
Companies, financial or otherwise, or any damage, loss or other material
adverse change in circumstances affecting the affairs, business, prospects,
operations or condition of the Acquired Companies, their Businesses or assets
or their right or capacity to carry on business;

	 	(ii)	 	the Acquired Companies have not waived or surrendered any
right of material value;

	 	(iii)	 	the Acquired Companies have not discharged or satisfied or
paid any Encumbrance or obligation or liability except in the ordinary course
of business;

	 	(iv)	 	the Businesses have been carried on in the ordinary course;
and

	 	(v)	 	no capital expenditures in excess of $5,000.00 have been
authorized or made by any of the Acquired Companies.

	 	(h)	 	Except for the Solectron Lien, the Acquired Companies are the owners with
good and marketable title, free and clear of all Encumbrances and any other rights of
others, of all assets shown or reflected on the Financial Statements, except only such
assets of the Acquired Companies as have been disposed of in the usual and ordinary
course of business since the date of the Financial Statements and of all assets
acquired by the Acquired Companies since the date of the Financial Statements.

	 	(i)	 	All material transactions of the Acquired Companies have been promptly and
properly recorded or filed in or with its respective books and records. The minute
books of the Acquired Companies contain records of all the meetings and proceedings of
shareholders and directors of the Acquired Companies.

	 	(j)	 	The Acquired Companies have not before the date of this Agreement, except in
the normal course of business:

	 	(i)	 	acquired any asset from a person with whom they were not
dealing at arm’s length except as set out in Schedule 5; or

	 	(ii)	 	disposed of anything to a person with whom the Acquired
Companies were not dealing at arm’s length for proceeds less than the fair
market value.

	 	(k)	 	All Returns required to be filed by or on behalf of the Acquired Companies
have been duly filed on a timely basis or, if any such Returns have been filed late or
will be filed late, all penalties, costs, interest or other charges whatsoever related
to such late filed Returns have been or will be paid, and such Returns are true,
complete and correct in all material respects and no adjustment relating to such
Returns has been proposed formally or informally by any governmental authority and, to
the knowledge of the Vendor, no basis exists for any such adjustment involving a
material amount of Taxes. All Taxes shown to be payable on the Returns or on
subsequent assessments with respect thereto have been paid in full on a timely basis,
and no other Taxes are directly or indirectly payable by the Acquired Companies with
respect to items or periods covered by such Returns;

	 	(l)	 	The Acquired Companies have paid or provided adequate accruals in the
Financial Statements for Taxes, including income taxes and related future taxes, in
conformity with generally accepted accounting principles. With respect to any period
commencing after December 31, 2005, no liability for Taxes has arisen for any of the
Acquired Companies except for Taxes arising in the ordinary course of business;

	 	(m)	 	The Acquired Companies have made adequate and timely installments on account
of material Taxes for each period ending on or prior to the date hereof to the extent
required by applicable law;

	 	(n)	 	For all periods ending on and after December 31, 2001, the Vendor has been
furnished by the Acquired Companies or given access to true and complete copies of (i)
assessments and reassessments concerning Canadian and American Returns, (ii) relevant
portions of income tax audit reports, statements of deficiencies, closing or other
agreements received by the Acquired Companies or on behalf of the Acquired Companies
relating to Canadian or American Taxes, and (iii) drafts of all Canadian and American
federal, provincial and state income and other tax returns of the Acquired Companies
which are prepared for filing prior to the Closing Time.

	 	(o)	 	No deficiencies exist or have been asserted, directly or indirectly, against
the Acquired Companies with respect to Taxes. None of the Acquired Companies are a
party to any action or proceeding for assessment or collection of Taxes, nor has any
such event been directly or indirectly asserted or threatened against any of them or
any of their assets. No waiver or extension of any statute of limitations is in
effect with respect to Taxes or Returns of the Acquired Companies. No audit of the
Canadian or American Returns of the Acquired Companies is in process or, to the
knowledge of the Vendor, pending or threatened.

	 	(p)	 	The Acquired Companies have provided adequate accruals in the Financial
Statements (or such amounts are fully funded), for all pension or other employee
benefit obligations of the Acquired Companies arising under or relating to each of the
pension or retirement income plans or other employee benefit plans or agreements or
policies maintained by or binding on the Acquired Companies to the extent required
under generally accepted accounting principles.

	 	(q)	 	The Acquired Companies have in all material respects withheld from payments
made to their past or present employees, officers and directors, and to non-residents,
the required amount in respect of Taxes and other deductions to be withheld therefrom,
and have remitted any material amounts so withheld to the applicable governmental
entity within the required time periods under the applicable legislation.

	 	(r)	 	The Acquired Companies have collected all material Taxes that they were
required to collect and, as of the date hereof, all material Taxes (of the nature of
payroll or sales taxes) have been remitted to the applicable governmental entity
within the required time period.

	 	(s)	 	None of the Acquired Companies have received any material refund of Taxes or
any material credit against Taxes from any relevant governmental entity to which it
was not entitled and which has not been returned to any relevant governmental entity.

	 	(t)	 	None of the Acquired Companies have entered into any Tax allocation, Tax
indemnification or Tax sharing agreement in, or having effect during, the past seven
years.

	 	(u)	 	None of the Acquired Companies have any liability for the Taxes of any other
person under any applicable Tax law as a transferee or successor, by contract,
operation of law or otherwise.

	 	(v)	 	WaveRider Canada, Jetstream and Avendo are “taxable Canadian Corporations” as
defined in the Tax Act;

	 	(w)	 	As at December 31, 2005:

	 	(i)	 	WaveRider Canada has filed non-capital loss carry-forwards of
$21,721,933.00

(ii) Jetstream has non-capital loss carry-forwards of $287,348.00; and

	 	(iii)	 	Avendo has non-capital loss carry-forwards of
$2,273,049.00.

	 	(x)	 	As set out in the Financial Statements as at May 31, 2006, the accounts
receivable of:

	 	(i)	 	WaveRider Canada will be good and collectible to a reserve of
not less than US$825,000.00; and

	 	(ii)	 	Jetstream will be good and collectible to a reserve of not
less than US$3,700.00.

	4.3	 	Property Representations

	 	(a)	 	Except for the Leases described in Schedule 7, the Solectron Lien and the
Licences and Permits described in Schedule 10, the Acquired Companies have good and
marketable title to all their assets and in particular the assets described in
Schedule 6, free and clear of all Encumbrances and all of such assets are in good
order and repair.

	 	(b)	 	Except for the Leases, the Acquired Companies are not a party to any lease or
agreement in the nature of a lease for real property, whether as lessor or lessee.

	 	(c)	 	All equipment listed in Schedule 6, including machinery and trucks, was
purchased new, since purchase has been maintained in a manner recommended by the
manufacturers and installers, and is in good operating condition and in a state of
good maintenance and repair, ordinary wear and tear excepted.

	 	(d)	 	The Acquired Companies have good leasehold title to the land and equipment
held by it under the Leases, free and clear of all Encumbrances with the exception of
the Solectron Lien, has not made any default in the performance of the terms of the
Leases that would entitle any of the lessors to terminate any of the Leases or would
render the Acquired Companies liable in damages and has not assigned or encumbered any
such Leases.

	 	(e)	 	Except for the intellectual property related to the 900 MHz Products, none of
the Vendor, Wave Wireless or any of their Affiliates (other than the Acquired
Companies), directors, officers, or shareholders own any assets which are used by any
of the Acquired Companies or are necessary or useful in the conduct of their
respective Businesses.

	4.4	 	Contractual Representations

	 	(a)	 	The Contracts and the Licences and Permits are all in good standing and in
full force and effect and none of the Acquired Companies or, to the knowledge of the
Vendor or Wave Wireless, any other party thereto, are in default of any of their
respective obligations thereunder.

	 	(b)	 	None of the Acquired Companies have any pension plan, profit sharing plan,
bonus plan, group insurance or similar plan, or material contract, agreement,
undertaking or arrangement, whether oral, written or implied, with any employees,
lessees, licensees, managers, accountants, suppliers, agents, distributors, officers,
directors, lawyers or others, except as set out in Schedules 6, 7, 8 and 10.

	 	(c)	 	None of the Acquired Companies is a party to any collective agreement with
any labour union or other association of employees and no attempt has been made to
organize or certify the employees of any of the Acquired Companies as a bargaining
unit.

	 	(d)	 	The employees of the Acquired Companies remaining with the Acquired Companies
after Closing and their current remuneration and terms of employment are described in
Schedule 8.

	 	(e)	 	The directors and officers of the Acquired Companies are set out in Schedule
9.

	4.5	 	General Vendor and Wave Wireless Representations

	 	(a)	 	There is no basis for and there is no action, suit, judgment, investigation
or proceeding outstanding or, to the knowledge of the Vendor or Wave Wireless, pending
or threatened against or affecting any of the Acquired Companies.

	 	(b)	 	None of the Acquired Companies are in breach of any law, ordinance, statute,
regulation, bylaw, order, decree, covenant, restriction, plan or permit to which it is
subject or which applies to it and the uses to which the assets of any of the Acquired
Companies have been put are not in breach of any law, ordinance, statute, regulation,
bylaw, order, decree, covenant, restriction, plan or permit, including those
regulating the discharge of material into the environment and the storage, treatment
and disposal of waste or otherwise relating to the protection of the environment and
the health and safety of persons. For greater certainty, none of the assets of the
Acquired Companies have been used in a manner which does or will give rise to any
obligation of restoration or removal or any liability for the costs of restoration or
removal or for the payment of damages to any third party. Except as disclosed in
Schedule 6, there are no underground storage tanks on any of the lands or leasehold
properties which form part of the assets of the Acquired Companies, nor is there
located on them any material amount of toxic chemical, hazardous material, waste or
any noxious or dangerous substance which is designated a toxic or hazardous substance
in applicable federal, provincial or municipal law, bylaw, regulation or ordinance
relating to environmental matters, including asbestos, polychlorinated biphenyls
(PCBs), urea formaldehyde, radon gas or radioactive decay products of radon, whether
or not they are so designated.

	 	(c)	 	Each of the Acquired Companies is authorized to carry on business in Ontario,
the other provinces and territories of Canada and in the other countries in which each
conducts its Business.

	 	(d)	 	None of the Acquired Companies have experienced nor are any of them or the
Vendor or Wave Wireless aware of any occurrence or event which has had, or might
reasonably be expected to have, a materially adverse effect on the Business or the
results of its operations.

	 	(e)	 	Neither the making of this Agreement, the completion of the transactions
contemplated by it, nor the performance of or compliance with its terms will violate
the Memorandum or Articles of any of the Acquired Companies or any agreement to which
the Vendor, Wave Wireless or any of the Acquired Companies are a party and will not
give any person or company any right to terminate or cancel any agreement or any right
enjoyed by any of the Acquired Companies and will not result in the creation or
imposition of any Encumbrance or restriction of any nature in favour of a third party
upon or against the assets of any of the Acquired Companies or any of the Shares or
the violation of any law or regulation of Canada, the United States or of any state,
province or territory of Canada or the United States, any municipal bylaw, regulation
or ordinance or any order or decree of any court or tribunal to which the Vendor, Wave
Wireless or an Acquired Company is subject which could materially affect the Business
or the Acquired Company or prevent the due and valid transfer of the Shares as
provided in this Agreement.

	 	(f)	 	Each of the Acquired Companies maintains such insurance, in the name of the
Vendor, against loss or damage to their assets and with respect to public liability as
is reasonably prudent for companies such as the Acquired Companies which coverage will
cease on Closing.

	 	(g)	 	Other than in respect of WaveRider Canada’s ownership of the Jetstream Share,
none of the Acquired Companies own, directly or indirectly, any shares or interests in
any other company or firm.

	 	(h)	 	None of the Acquired Companies is a partner or participant in any
partnership, joint venture, profit-sharing arrangement or other similar association of
any kind, or a party to any agreement under which it agrees to carry on any part of a
business or any other activity in such manner or by which it agrees to share any
revenue or profit with any other person.

	 	(i)	 	Schedule 10 contains all Licences and Permits (including operating
authorities) required for carrying on each of the Acquired Companies’ Businesses in
the manner in which it has heretofore been carried on and all such Licences and
Permits are in good standing.

	 	(j)	 	None of the information and documents furnished by or on behalf of the Vendor
or Wave Wireless, or any of their representatives, to the Purchaser or any of its
representatives in connection with any of the Acquired Companies, their respective
Businesses, the Acquired Shares or the transactions contemplated hereby which are
contained in this Agreement or any document incorporated by reference or delivered
pursuant hereto, were false or misleading, or contained any untrue statements or
misstatement of fact or omitted to state any fact necessary to be stated in order to
make any statement therein not misleading in any material respect. To the knowledge
of the Vendor and Wave Wireless, all information relating to any of the Acquired
Companies, their respective Businesses or the Acquired Shares that would materially
affect the Purchaser has in fact been disclosed to the Purchaser.

	5.	 	PURCHASER’S REPRESENTATIONS AND WARRANTIES

The Purchaser hereby represents and warrants to the Vendor as follows, and acknowledges that,
notwithstanding any independent searches or investigations that may be undertaken by or on behalf
of the Vendor and notwithstanding any information or document provided to the Vendor (unless the
applicable representation or warranty is specifically qualified by reference to such document in
this Agreement), the Vendor is relying upon the accuracy of each of such representations and
warranties in connection with the sale of the Purchased Shares by the Vendor to the Purchaser and
the completion of the other transactions contemplated hereunder:

	5.1	 	Corporate and General Representations

	 	(a)	 	The Purchaser is a valid and subsisting corporation, duly incorporated and
organized under the law of Canada, is a reporting issuer and is in good standing with
respect to the filing of annual returns pursuant to the Canada Business Corporations
Act.

	 	(b)	 	Neither the making of this Agreement, the completion of the transactions
contemplated by it, nor the performance of or compliance with its terms will violate
the Memorandum or Articles of the Purchaser or any agreement to which the Purchaser is
a party, and will not result in the creation or imposition of any lien, claim, charge,
encumbrance or restriction of any nature in favour of a third party upon or against
the assets of the Acquired Companies or the Shares or the violation of any law or
regulation of Canada or of any province or territory of Canada, any municipal bylaw or
ordinance or any order or decree of any court or tribunal to which the Purchaser is
subject which could prevent the due and valid transfer of the Shares as provided in
this Agreement.

	 	(c)	 	The Purchaser is not a non-Canadian as that term is defined in the Investment
Canada Act.

	 	(d)	 	The Purchaser has due and sufficient right, power and authority to enter into
this Agreement on the terms and conditions set forth in this Agreement and to perform
its obligations under this Agreement.

	6.	 	VENDOR’S AND WAVE WIRELESS’ COVENANTS

The Vendor and Wave Wireless jointly and severally covenant and agree with the Purchaser that they
shall do or cause to be done the following:

	6.1	 	Consents

Both before and after the Closing Date, the Vendor and Wave Wireless will use all reasonable
efforts to assist the Purchaser in obtaining from all appropriate federal, provincial, state,
municipal and other governmental or administrative bodies and all other persons all such approvals
and consents in form and terms satisfactory to counsel for the Purchaser as are necessary or
required in order to permit the sale, transfer and assignment of all of the right, title and
interest of the Vendor and Wave Wireless in and to the Acquired Shares to the Purchaser.

	6.2	 	Possession

At or before the Time of Closing, the Vendor and Wave Wireless will deliver to the Purchaser
possession of all books, records, book accounts, lists of suppliers and customers of the Acquired
Companies and all other documents, files, records and other data, financial or otherwise, relating
to the Business and the assets of the Acquired Companies.

	6.3	 	Books and Records

At all times up to the Closing Date, the Vendor and Wave Wireless will permit the Purchaser, and
its auditors, solicitors and other authorized persons, to make such investigation of the assets of
the Acquired Companies and of their financial and legal condition as the Purchaser deems necessary
or advisable to familiarize itself with such assets and other matters and to have full access to
the Business premises and to all records, documents and other information related to any of the
Acquired Companies or their respective Businesses, including all working papers (internal and
external) and details of accounts and inventories prepared, obtained or used in connection with the
preparation of the Financial Statements.

	6.4	 	Interim Management—Positive Covenants

From the date of this Agreement to the Closing Date, the Vendor and Wave Wireless will:

	 	(a)	 	cause each of the Acquired Companies to:

	 	(i)	 	carry on its Business in the ordinary course, in a prudent,
businesslike and efficient manner and substantially in accordance with the
procedures and practices in effect on December 31, 2005;

	 	(ii)	 	maintain insurance on its assets as they are insured on the
date of this Agreement;

	 	(iii)	 	use all reasonable efforts to preserve and maintain the
goodwill of its Business and the Businesses of the other Acquired Companies;

	 	(iv)	 	do all necessary repairs and maintenance to its assets and
take reasonable care to protect and safeguard those assets;

	 	(b)	 	use all reasonable best efforts to negotiate the discharge of the Solectron
Lien together with any other security interest granted by the WaveRider Canada to
Solectron as part of the Solectron Supply Agreement;

	 	(c)	 	provide interim financial statements for each of the Acquired Companies for
the period ending May 31, 2006;

	 	(d)	 	take such steps as are necessary to remove the guarantees made by any of the
Acquired Companies to the Silicon Valley Bank; and

	 	(e)	 	take such steps as are necessary to terminate the employment of all employees
of any of the Acquired Companies who are not listed in Schedule 8, and to fully
discharge any obligations of severance, notice or payment in lieu of notice owed to
such employees prior to the Time of Closing.

	6.5	 	Interim Management—Negative Covenants

From the date of this Agreement to the Closing Date, the Vendor and Wave Wireless will not permit
any of the Acquired Companies, without the prior consent in writing of the Purchaser to:

	 	(a)	 	purchase or sell, consume or otherwise dispose of any of its assets except in
the ordinary course of business;

	 	(b)	 	enter into any contract or assume or incur any liability except in the
ordinary course of business or which is not material;

	 	(c)	 	settle any account receivable of a material nature at less than face value
net of the reserve for that account;

	 	(d)	 	waive or surrender any material right;

	 	(e)	 	discharge, satisfy or pay any Encumbrance or other obligation or liability
except in the ordinary course of business or as specifically required hereunder;

	 	(f)	 	make any capital expenditure or commitment for any capital expenditure; or

	 	(g)	 	make any changes to existing accounting practices related to any of the
Acquired Companies, except as required by law or generally accepted accounting
principles, or make any material Tax election inconsistent with past practice.

	6.6	 	Other

Both before and after the Closing Date, the Vendor and Wave Wireless:

	 	(a)	 	will use their best efforts to negotiate and finalize the terms of the VCom
Supply Agreement;

	 	(b)	 	will use their best efforts to negotiate and finalize the terms of the IP
Licence and the Product Royalty Fee;

	 	(c)	 	will use their best efforts to negotiate and finalize the terms of the
General Security Agreement;

	6.7	 	Tax Returns

	 	(a)	 	The Vendor shall be responsible for preparing and filing, and the Purchaser
shall allow the Vendor to and shall take reasonable steps to ensure that the Vendor is
allowed to, on behalf of and in the name of each of the Acquired Companies, prepare
and file all tax returns, elections, filings or reports required by law to be filed
for each of the Acquired Companies’ taxation years ending on or before December 31,
2005 and the Purchaser shall cause the Acquired Companies to execute the foregoing
documents, provided that:

	 	(i)	 	the Purchaser shall, and shall cause the Acquired Companies
to, provide such reasonable assistance to and cooperate with the Vendor to
have such tax returns, elections, filings or reports.

	 	(ii)	 	all such tax returns, elections, filings or reports shall be
consistent in all respects with the representations and warranties in respect
of tax matters contained herein;

	 	(iii)	 	prior to filing any such tax returns, elections, filings or
reports, the Vendor shall first supply draft copies of the finalized documents
to the Purchaser for review and comment and shall only file the same upon
obtaining the prior consent of the Purchaser thereto (such consent not to be
unreasonably withheld or delayed).

	 	(b)	 	The Vendor shall be responsible for preparing and filing, on behalf of and in
the name of each of the Acquired Companies, all tax returns, elections, filings or
reports required by law to be filed for each of the Acquired Companies’ taxation years
ending on or immediately before the Closing Date, provided that:

	 	(i)	 	the Purchaser shall provide such reasonable assistance to
and cooperate with the Vendor to have such tax returns, elections, filings or
reports prepared;

	 	(ii)	 	prior to filing any such tax returns, elections, filings or
reports, the Vendor shall first supply draft copies of the finalized
documents to the Purchaser for review and comment and shall only file the
same upon obtaining the prior consent of the Purchaser thereto (such consent
not to be unreasonably withheld and delayed).

	 	(c)	 	Both before and after the Closing Date, the Vendor and Wave Wireless:

	 	(i)	 	will not permit any of the Acquired Companies to amend any
Returns filed with the Canada Revenue Agency or the Internal Revenue Service
without the prior written consent of the Purchaser; and

	 	(ii)	 	will not amend any Returns filed by either of them with the
Canada Revenue Agency or the Internal Revenue Service where such amendment is
related to any of the Acquired Companies, their Businesses or the Vendor or
Wave Wireless’ ownership of the Acquired Shares or financial support of, or
other dealings with, any of the Acquired Companies, without the prior written
consent of the Purchaser.

	7.	 	PURCHASER’S COVENANT

	 	 	The Purchaser covenants and agrees with the Vendor that it shall do or cause to be done the
following:

	7.1	 	Financial Records

The Purchaser will undertake commercially reasonable steps to maintain in safekeeping for seven
years following the Closing Date all material financial records of the Acquired Companies which
come into the possession of the Purchaser on the Closing Date and which relate to the Business
before the Closing Date and will allow the Vendor and Wave Wireless access thereto if the Purchaser
makes any claim against the Vendor or Wave Wireless relating to this Agreement, if the Vendor or
Wave Wireless is investigated or audited by a taxation or other authority, or for any other bona
fide business purpose which is not adverse to the interests of the Acquired Companies, as
determined by the Purchaser acting reasonably.

	7.2	 	Other

Both before and after the Closing Date, the Purchaser:

	 	(a)	 	will use its best efforts to negotiate and finalize the terms of the VCom
Supply Agreement;

	 	(b)	 	will use its best efforts to negotiate and finalize the terms of the IP
Licence and the Product Royalty Fee;

	 	(c)	 	will use its best efforts to negotiate and finalize the terms of the General
Security Agreement.

	8.	 	PURCHASER’S CONDITIONS OF CLOSING

	8.1	 	Conditions

The obligations of the Purchaser under this Agreement are subject to the following conditions for
the exclusive benefit of the Purchaser being: (i) fulfilled in all material respects in the
reasonable opinion of the Purchaser at the Time of Closing; or, (ii) where such conditions are not
so fulfilled, (A) waived by the Purchaser at or before the Time of Closing; or (B) if agreed by the
Vendor, Wave Wireless and the Purchaser, indemnified for by the Vendor and Wave Wireless:

	 	(a)	 	the representations and warranties of the Vendor and Wave Wireless contained
in this Agreement will be true and correct on and as of the Closing Date;

	 	(b)	 	the Vendor and Wave Wireless will have complied with all terms, covenants and
agreements in this Agreement agreed to be performed or caused to be performed by it on
or before the Closing Date;

	 	(c)	 	no material loss or destruction of or damage to any of the assets of any of
the Acquired Companies will have occurred between the date of this Agreement and the
Time of Closing;

	 	(d)	 	no action or proceeding against any of the Acquired Companies, the Vendor or
Wave Wireless will be pending or threatened by any person, company, firm, governmental
authority, regulatory body or agency to enjoin or prohibit:

	 	(i)	 	the purchase and sale of the Acquired Shares contemplated by
this Agreement or the right of the Purchaser to own the Acquired Shares; or

	 	(ii)	 	the right of each of the Acquired Companies to conduct its
operations and carry on its Business in the ordinary course as such Business
and operations have been carried on in the past;

	 	(e)	 	the Vendor and Wave Wireless will tender to the Purchaser a Vendor’s Closing
Certificate substantially in the form of Schedule 3 signed by the Vendor certifying
the truth and correctness at the closing of the representations and warranties of the
Vendor and Wireless contained in Article 4, the performance of all covenants and
agreements of the Vendor and Wave Wireless and that the condition described in
subsection 8.1(d) does not exist as at the Closing Date;

	 	(f)	 	all directors and officers of the Acquired Companies specified by the
Purchaser will resign and only the employees listed in Schedule 8 will be employed by
the Acquired Companies;

	 	(g)	 	the Vendor, Wave Wireless and all directors, officers and shareholders of the
Acquired Companies will have executed releases in favour of the Acquired Companies, in
a form satisfactory to the Purchaser, from any and all possible claims against the
Acquired Companies arising from any act, matter or thing arising at or before the Time
of Closing;

	 	(h)	 	all necessary steps and proceedings will have been taken to permit the
Acquired Shares to be duly and regularly transferred to and registered in the name of
the Purchaser; and

	 	(i)	 	The Vendor and Wave Wireless will deliver to the Purchaser at the Time of
Closing an opinion of the Vendor’s and Wave Wireless’ counsel, addressed to the
Purchaser, in form satisfactory to Purchaser’s counsel that:

	 	(i)	 	Each of the Acquired Companies is a valid and subsisting
corporation, duly incorporated and organized under laws of the Canada, Ontario
and Nevada as the case may be and is in good standing with respect to the
filing of annual reports pursuant to the Canada Business Corporations Act,
Ontario Business Corporations Act and the General Corporation Law of the State
of Nevada Act, as the case may be;

	 	(ii)	 	the number of authorized and issued shares in the capital of
the Acquired Companies is as warranted by the Vendor and Wave Wireless and the
Shares are duly authorized, validly issued and outstanding as fully paid and
non-assessable; and

	 	(iii)	 	all necessary steps and corporate proceedings have been
taken to permit the Shares to be duly and validly transferred to and
registered in the name of the Purchaser.

	 	(j)	 	all actions, proceedings, instruments and documents required to implement
this Agreement, or instrumental thereto, and all legal matters relating to the
purchase of the Acquired Shares, shall have been approved as to form and legality by
Purchaser’s counsel, acting reasonably.

	8.2	 	Termination

If any of the conditions in section 8.1 is not fulfilled or waived or indemnified for, the
Purchaser on the Closing Date may terminate this Agreement by notice in writing to the Vendor and
Wave Wireless. In such event, the Purchaser shall be released from all obligations under this
Agreement, and the Vendor and Wave Wireless will also be released unless the Vendor or Wave
Wireless were reasonably capable of causing such condition or conditions to be fulfilled or the
Vendor or Wave Wireless has breached any of its representations, warranties, covenants or
agreements in this Agreement.

	8.3	 	Waiver

The conditions in section 8.1 may be waived in whole or in part without prejudice to any right of
termination or any other right in the event of the non-fulfillment of any other condition or
conditions. A waiver will be binding only if it is in writing.

	9.	 	VENDOR’S AND WAVE WIRELESS’ CONDITIONS OF CLOSING

	9.1	 	Conditions

The obligations of the Vendor and Wave Wireless under this Agreement are subject to the following
conditions for the exclusive benefit of the Vendor and Wave Wireless being: (i) fulfilled in all
material respects in the reasonable opinion of the Vendor at the Time of Closing; or (ii)where such
conditions are not so fulfilled, (A) waived by the Vendor at or before the Time of Closing; or (B)
if agreed by the Vendor, Wave Wireless and the Purchaser, indemnified for by the Purchaser:

	 	(a)	 	the representations and warranties of the Purchaser contained in the
Agreement will be true and correct on and as of the Closing Date;

	 	(b)	 	the Purchaser will have complied with all terms, covenants and agreements in
this Agreement agreed to be performed or caused to be performed by it on or before the
Closing Date; and

	 	(c)	 	no action or proceeding against the Purchaser will be pending or threatened
by any person, company, firm, governmental authority, regulatory body or agency to
enjoin or prohibit:

	 	(i)	 	the purchase and sale of the Shares contemplated by this
Agreement or the right of the Purchaser to own the Shares; or

	 	(ii)	 	the right of the Acquired Companies to conduct their
operations and carry on the Business in the ordinary course as the Business
and its operations have been carried on in the past; and

	 	(d)	 	the Purchaser will tender to the Vendor a Purchaser’s Closing Certificate
substantially in the form of Schedule 2 signed by an officer of the Purchaser
certifying the truth and correctness at the Closing Date of the representations and
warranties of the Purchaser contained in Article 5, the performance of all covenants
and agreements of the Purchaser, and that the condition described in subsection 9.1(c)
does not exist as at the Closing Date.

	9.2	 	Termination

If any of the conditions in Section 9.1 is not fulfilled or waived or indemnified for, the Vendor
and Wave Wireless on the Closing Date may terminate this Agreement by notice in writing to the
Purchaser. In such event, the Vendor and Wave Wireless shall be released from all obligations under
this Agreement, and the Purchaser will also be released unless the Purchaser was reasonably capable
of causing such condition or conditions to be fulfilled or the Purchaser has breached any of its
representations, warranties, covenants or agreements in this Agreement.

	9.3	 	Waiver

The conditions in section 9.1 may be waived in whole or in part without prejudice to any right of
termination or any other right in the event of non-fulfillment of any other condition or
conditions. A waiver will be binding only if it is in writing.

	10.	 	CLOSING ARRANGEMENTS

	10.1	 	Closing Location

The closing of the purchase and sale and the other transactions contemplated by this Agreement (the
“Closing”) will take place at the Time of Closing on the Closing Date at the offices of the
Purchaser, or such earlier or later date and location as the parties may agree in writing.

	10.2	 	Vendor’s and Wave Wireless’ Closing Documents

At the Closing, the Vendor and Wave Wireless will tender to the Purchaser:

	 	(a)	 	resignations in writing of all directors and officers of each of the Acquired
Companies;

	 	(b)	 	releases from each director, officer and shareholder of each of the Acquired
Companies, releasing the Acquired Companies from any and all possible claims against
any of the Acquired Companies arising from any act, matter or thing arising at or
before the Time of Closing;

	 	(c)	 	certified copies of resolutions of the directors of each of the Authorized
Companies in form satisfactory to the Purchaser, acting reasonably, authorizing the
transfer of the Acquired Shares to and registration of the Acquired Shares in the name
of the Purchaser and issue of new share certificates representing the Acquired Shares
in the name of the Purchaser;

	 	(d)	 	share certificates in the name of the Vendor representing the Acquired Shares
duly endorsed for transfer and duly executed share certificates representing the
Acquired Shares in the name of the Purchaser;

	 	(e)	 	the register of shareholders of the Acquired Companies recording that the
Purchaser is the holder of all issued and outstanding shares of the Acquired
Companies, other than Jetstream and recording that WaveRider Canada is the holder of
all issued and outstanding shares of Jetstream;

	 	(f)	 	an opinion in the form described in section 8.1(i);

	 	(g)	 	all corporate records and books of account of the Acquired Companies
including minute books, share registers and annual reports, and a certificate of good
standing;

	 	(h)	 	every seal of the Acquired Companies; and

	 	(i)	 	all such other documents and instruments as the Purchaser may reasonably
require.

	10.3	 	Purchaser’s Closing Documents

At the Closing, the Purchaser will tender to the Vendor:

(a) a wire transfer payable to the Vendor for the Purchase Price minus:the Holdback; and

(b) all such other documents and instruments as the Vendor may reasonably require.

	10.4	 	Release of Holdback

The Holdback will be released by the Purchaser to the Vendor on the following terms:

	 	(a)	 	If a Clearance Certificate fixing an amount equal to the portion of the
Purchase Price allocated to the WaveRider Canada Shares and the Avendo Shares is
provided by the Vendor to the Purchaser within 90 days from Closing:

	 	(i)	 	the Purchaser shall immediately release that portion of the
Holdback which exceeds 10% of the Purchase Price to the Vendor; and

	 	(ii)	 	the Purchaser shall release the balance of the Holdback
subject to a dollar for dollar adjustment for the Post Closing Purchase Price
Adjustments and a dollar for dollar reduction for any receivables which were
outstanding at the closing date and which remain outstanding 90 days after the
Closing Date (the “Uncollectible Receivables”), 90 days after Closing.

	 	(b)	 	If a Clearance Certificate fixing an amount equal to the portion of the
Purchase Price allocated to the WaveRider Canada Shares and the Avendo Shares is

provided by the Vendor to the Purchaser after 90 days from Closing, the Vendor
shall immediately release the Holdback to the Vendor subject to a dollar for dollar
adjustment for the Post Closing Purchase Price Adjustments, a dollar for dollar
reduction for any amounts paid to the Receiver General of Canada in satisfaction of
the Purchaser’s withholding tax liability hereunder pursuant to Section 116 of the
Tax Act and a dollar for dollar reduction for the Uncollectible Receivables.

	 	(c)	 	Notwithstanding any other provision of this section, if a Clearance
Certificate fixing an amount equal to the the portion of Purchase Price allocated to
the WaveRider Canada Shares and the Avendo Shares has not been provided by the Vendor
to the Purchaser as set out above on or before the 30th day after the end of the month
in which the Closing Date occurs, the Purchaser shall remit that amount which is equal
to 25% of the Purchase Price allocated to the WaveRider Shares and the Avendo Shares
to the Receiver General for Canada as is required to satisfy the Purchaser’s
withholding tax liability in respect of the purchase of the WaveRider Canada Shares
and the Avendo Shares from the Vendor pursuant to section 116 of the Tax Act, unless
the Vendor provides evidence satisfactory to the Purchaser (acting reasonably) that
the Canadian Minister of National Revenue has instructed that the no such portion of
the Holdback be remitted at such time.

	 	(d)	 	In the event that Section 10.4(c) applies to defer the time at which amounts
would otherwise be required to be remitted to the Receiver General for Canada, the
provisions of Section 10.4(c) shall continue to apply to the Holdback as if the
reference to the date that such amounts are required to be remitted to the Receiver
General for Canada were instead a reference to the new date set by the Canada Revenue
Agency as the date for the remittance or the date remittance is otherwise required by
law;

	 	(e)	 	If the certificate limit in the Clearance Certificate provided to the
Purchaser is less than (or is otherwise issued based upon the payment of an amount
less than) the portion of the Purchase Price of the Shares allocated to the WaveRider
Canada Shares and the Avendo Shares, the Purchaser shall remit 25% of the difference
between such excess Purchase Price allocated to the WaveRider Canada Shares and the
Avendo Shares and the certificate limit shown in the Clearance Certificate to the
Receiver General for Canada, in satisfaction of the Purchaser’s withholding tax
liability in respect of the purchase of the Shares pursuant to section 116 of the Tax
Act, and any funds remaining in the Holdback after such payment shall be dealt with as
provided in Sections 10.3(a) and (b). .

	 	(f)	 	If, after the release of the Holdback, the Purchaser receives any funds on
account of Uncollectible Receivables, the Purchaser shall immediately release these
funds to the Vendor.

	 	(g)	 	In the event the Holdback is insufficient to satisfy the dollar for dollar
adjustment for the Post Closing Purchase Price Adjustments, the dollar for dollar
reduction for the Uncollectible Receivables, and the dollar for dollar reduction for
any amounts paid by the Purchaser to the Receiver General of Canada in satisfaction
of the Purchaser’s withholding tax liability hereunder pursuant to Section 116 of the
Tax Act, Wave Wireless and the Vendor agree, jointly and severally, to forthwith pay
VCom the amount of any shorftfall.

	11.	 	GENERAL

	11.1	 	Reliance

The Vendor and Wave Wireless acknowledge and agree that the Purchaser has entered into this
Agreement relying on the representations, warranties, covenants and agreements and other terms and
conditions of this Agreement and that no information which is now known, which may become known or
which could upon investigation have become known to the Purchaser or any of its present or future
officers, directors or professional advisors in any way limits or extinguishes any rights the
Purchaser may have against the Vendor, including without limitation, any right to indemnity under
section 11.3 of this Agreement.

	11.2	 	Survival of Vendor’s and Wave Wireless’ Representations

The representations, warranties, covenants and agreements of the Vendor and Wave Wireless
contained in this Agreement and in any document or certificate given under this Agreement will
survive the closing of the transactions contemplated by this Agreement and remain in full force and
effect for a period of 3 years notwithstanding any waiver by the Purchaser unless such waiver was
made after notice in writing by the Vendor and Wave Wireless to the Purchaser setting forth the
breach.

	11.3	 	Indemnification by the Vendor and Wave Wireless

The Vendor and Wave Wireless, jointly and severally, covenant and agree to indemnify and save the
Purchaser, its directors, officers, employees and shareholders harmless from and against any and
all claims, demands, actions, causes of action, damages, losses, deficiencies, costs, liabilities
(including any tax liability, interest, fines or penalties) and expenses (including legal fees on a
solicitor-and-his own client basis) which may be made or brought against any of the foregoing or
which any of the foregoing may suffer or incur as a result of, in respect of or arising out of,
directly or indirectly:

	 	(a)	 	any non-performance or non-fulfillment of any covenant or agreement on the
part of the Vendor or Wave Wireless contained in this Agreement or in any document
given thereby in order to carry out the transactions contemplated hereby; or

	 	(b)	 	any misrepresentation, inaccuracy, incorrectness or breach of any
representation or warranty made by the Vendor or Wave Wireless contained in this
Agreement, the Vendor’s and Wave Wireless’ Closing Certificate or contained in any
document or certificate given in order to carry out the transactions contemplated
hereby.

	11.4	 	Survival of Purchaser’s Representations

The representations, warranties, covenants and agreements of the Purchaser contained in this
Agreement and in any document or certificate given under this Agreement shall survive the closing
of the transactions contemplated by this Agreement and shall remain in full force and effect for a
period of 3 years notwithstanding any waiver by the Vendor and Wave Wireless unless such waiver was
made after notice in writing by the Purchaser to the Vendor and Wave Wireless setting forth the
breach.

	11.5	 	Indemnification by the Purchaser

The Purchaser covenants and agrees to indemnify and save the Vendor and Wave Wireless, its
directors, officers, employees and shareholders harmless from and against any and all claims,
demands, actions, causes of action, damages, losses, deficiencies, costs, liabilities and expenses
(including legal fees on a solicitor-and-his own client basis) which may be made or brought against
any of the foregoing or which any of the foregoing may suffer or incur as a result of, in respect
of or arising out of, directly or indirectly:

	 	(a)	 	any non-performance or non-fulfillment of any covenant or agreement on the
part of the Purchaser contained in this Agreement or in any document given thereby in
order to carry out the transactions contemplated hereby; or

	 	(b)	 	any misrepresentation, inaccuracy, incorrectness or breach of any
representation or warranty made by the Purchaser contained in this Agreement, the
Purchaser’s Closing Certificate or contained in any document or certificate given in
order to carry out the transactions contemplated hereby.

	11.6	 	Commissions, Legal Fees

Each of the parties will bear the fees and disbursements of the respective lawyers, accountants and
consultants engaged by them respectively in connection with this Agreement and will not cause or
permit any such fees or disbursements to be charged to the Acquired Companies before the Closing
Date.

	11.7	 	Notices

Any notice, direction or other instrument required or permitted to be given under this Agreement
will be in writing and may be given by mailing the same postage prepaid or delivering the same
addressed as follows:

	 	 	 	 	 
	To the Vendor:	 	255 Consumers Road, Suite 500

	 
	 	 	 	 
	and Wave Wireless

	 	Toronto, Ontario M2J 1R4

Attention:
	 	

Charles W. Brown, CEO
	 
	 	 	 	 
	To the Purchaser: .

	 	4210 Commerce Circle

Victoria, BC

V8Z 6N6

Attention:
	 	

Corporate Counsel

or to such other address as a party may specify by notice and shall be deemed to have been
received, if delivered, on the date of delivery if it is a business day and otherwise on the next
succeeding business day and, if mailed in Canada, on the fifth business day following the posting
of the notice except if there is a postal dispute, in which case all communications shall be
delivered.

	11.8	 	Time of Essence

Time is of the essence of this Agreement.

	11.9	 	Further Assurances

Each of the parties will execute and deliver such further documents and instruments and do such
acts and things as may, before or after the Closing Date, be reasonably required by another party
to carry out the intent and meaning of this Agreement and to assure to the Purchaser the Acquired
Shares.

	11.10	 	Proper Law

This Agreement shall in all respects be governed by, and construed and enforced in accordance with,
the laws of the Province of British Columbia and the federal laws of Canada applicable therein
(without regard to conflicts of laws principles).

	11.11	 	Entire Agreement

This Agreement (including its Schedules) contains the whole agreement between the Vendor and Wave
Wireless and Purchaser pertaining to the subject matter hereof and supersedes all prior agreements,
understandings, negotiations and discussions between the parties and there are no representations,
warranties, covenants, conditions or other terms other than expressly contained in this Agreement.

	11.12	 	Assignment

This Agreement may not be assigned by any party without the prior written consent of the other
party, which consent may be arbitrarily withheld.

	11.13	 	Benefit and Binding Nature of the Agreement

This Agreement enures to the benefit of and is binding upon the parties and their respective
successors and permitted assigns.

	11.14	 	Amendments and Waiver

No modification of or amendment to this Agreement will be valid or binding unless set forth in
writing and duly executed by both of the parties and no waiver of any breach of any term or
provision of this Agreement will be effective or binding unless made in writing and signed by the
party purporting to give the same, and unless otherwise provided, will be limited to the specific
breach waived. The rights and remedies of the parties under this Agreement are cumulative and in
addition and without prejudice to and not in substitution for any rights or remedies provided by
law.

	11.15	 	Notice by the Corporation

Each of the Acquired Companies, by its execution hereof, acknowledges that it has notice of the
terms of this Agreement and consents hereto and hereby covenants with the parties hereto to give or
cause to be given such notices, execute or cause to be executed such documents and do or cause to
be done all such acts, matters and things as may from time to time be necessary or required to
carry out the terms and intent hereof.

	11.16	 	Counterparts

This Agreement may be executed in two or more counterparts including facsimile transmissions, each
of which shall be an original and together which shall constitute one and the same instrument.

AS EVIDENCE OF THEIR AGREEMENT the parties have executed this Agreement as of the date and year
first above written.

	 	 	 
	WAVERIDER COMMUNICATIONS INC.	 	 
	By:_____________________________	 	VCOM INCORPORATED
	     

Name:

	 	By:     

Name:
	Title:

	 	Title:
	 
	 	 
	WAVE WIRELESS CORPORATION

By:     

     

Name:

	 	

	Title:

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