Document:

FORM OF OPTION AGREEMENT

 

EXHIBIT 10.3

THIS STOCK OPTION AGREEMENT dated for reference
the ________ day of ____________________, 2005.

BETWEEN:

	 	 	 	DATAWAVE SYSTEMS INC., a Delaware company, having an office at 13575 Commerce
Parkway, Suite 110, Richmond, British Columbia, Canada, V6V 2L1
	 
	 	 	 	(the “Company”)

AND:

	 	 	 	______________________________, of ______________________________________
	 
	 	 	 	(the “Optionee”)

WHEREAS:

A.     The Company has established its 2000 Stock Option Plan (the “Plan”) to advance the interests of
the Company by encouraging the directors, officers, employees and consultants of the Company to
acquire shares in the Company, thereby increasing their proprietary interest in the Company,
encouraging them to remain associated with the Company and furnishing them with additional
incentive in their efforts on behalf of the Company in the conduct of their affairs;

B.     All capitalized words used but not otherwise defined in this Agreement have the meaning ascribed
to them in the Plan;

C.     The Optionee is a director, officer, employee, or consultant of the Company; and

D.     The Company wishes to grant to the Optionee an option to purchase common shares of the Company;

NOW THEREFORE THIS AGREEMENT WITNESSES that, in continued provision of services by the Optionee to
the Company and other good and valuable consideration (the receipt and sufficiency of which are
acknowledged by the Company), the parties agree as follows:

1.     The Company grants to the Optionee, under the provisions of the Plan and on the terms and
conditions set out in this Agreement and in the Plan, as of _______________ (the “Date of Grant”),
an irrevocable right and option (the “Option”) to purchase, from time to time, up to ____________
common shares (the “Optioned Shares”) at the exercise price of US$0.10 per Optioned Share,
exercisable from the date of this Agreement until 5:00 p.m. (Pacific Standard Time) on
____________________ (the “Expiry Date”), unless earlier terminated under section 7. The Option is/is
not granted to the Optionee as an Incentive Stock Option.)

2.     The Option will, after 5:00 p.m. (Pacific Standard Time) on the Expiry Date, expire and be of no
further force or effect as to any Optioned Shares in respect of which the Option has not been
exercised.

3.     The Option shall vest immediately / over __________ according to the following schedule __________.

4.     Subject to the provisions of this Agreement and the Plan, the Optionee or the Optionee’s legal
personal representative(s) may exercise the Option or a portion thereof from time to time by
signing a notice in writing addressed to the Company in the form attached as Exhibit A hereto, and
delivering the

 

 

notice to the Company at the address of the Company specified above. The notice must be
accompanied by payment in full for the Optioned Shares being purchased, in cash or by certified
cheque, bank draft or money order payable to the Company.

5.     The Option is non-assignable and non-transferable and, except in the case of the Optionee’s
death, is exercisable only by the Optionee; provided that, subject to the prior approval of the
Plan Administrator and, if necessary, any stock exchange on which the Company’s shares may then be
listed, the Optionee may assign the Option to a company or a trust which is established exclusively
for the benefit of the Optionee and the Optionee’s immediate family, which exclusive beneficial
ownership or relationship will continue for as long as any portion of the Option remains
unexercised. THE OPTIONEE IS URGED TO CONSULT HIS OR HER OWN TAX ADVISERS BEFORE TRANSFERRING OR
ASSIGNING THE OPTION.

6.     The Optionee and the Company represent that the Optionee is a director, officer, employee, or
consultant of the Company, or a company of which all of the voting securities are beneficially
owned by one or more of the foregoing.

7.     The Optionee represents that he or she has not been induced to enter into this Agreement by the
expectation of employment or continued employment or retention or continued retention by the
Company.

8.     The Option will terminate under the following circumstances:

	 	(a)	 	If the Optionee ceases to be a director of the Company by reason of his or her
removal as a director for cause, or ceases to be an employee or consultant of the
Company by reason of his or her termination of employment or engagement for cause, the
Option will terminate on the effective date of the Optionee ceasing to be a director,
employee or consultant, as the case may be, for that reason.
	 
	 	(b)	 	If the Optionee dies, the Optionee’s personal representative will have the
right to exercise in whole or in part any unexercised portion of the Option at any time
until the earlier of: (i) the Expiry Date, and (ii) the date that is 12 months after
the date of the Optionee’s death.
	 
	 	(c)	 	If the Optionee is a director or officer or an employee of the Company and
ceases to be a director or officer or an employee for any reason other than as set out
in sections 8(a) or 8(b), the Option will terminate on the earlier of: (i) the Expiry
Date, and (ii) the date that is 3 months after the effective date of the Optionee
ceasing to be a director or officer or employee for that other reason.
	 
	 	(d)	 	If the Optionee ceases to be one type of Optionee (i.e., director, officer,
employee, consultant, or a company 100% beneficially owned by one of them) but
concurrently is or becomes one or more other type of Optionee, the Option will not
terminate but will continue in full force and effect, and the Optionee may exercise the
Option until the earlier of: (i) the Expiry Date, and (ii) the applicable date set
forth in section 8(a), (b) or (c) where the Optionee ceases to be any type of Optionee.
	 
	 	(e)	 	The Option will not be affected by any change of the Optionee’s employment
where the Optionee continues to be employed by the Company.

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9.     Neither this Agreement nor the Plan confers on the Optionee the right to continue in the employ
of or association with the Company, nor do they interfere in any way with the right of the Optionee
or the Company to terminate the Optionee’s employment at any time.

10.   The Optionee acknowledges receipt of a copy of the Plan. The Optionee has read and understands
the terms and provisions of the Plan and this Agreement, and accepts this Option subject to all of
the terms and provisions of the Plan and this Agreement. The Optionee acknowledges that there may
be adverse tax consequences upon exercise of the Option or disposition of the Optioned Shares and
that Optionee should consult a tax adviser prior to such exercise or disposition.

11.   The undersigned hereby acknowledges and agrees that:

	 	(a)	 	the Option, and any underlying Optioned Shares that may be purchased upon
exercise of the Option, may be issued pursuant to exemptions from the registration and
prospectus requirements of applicable securities legislation, and that the Optioned
Shares will therefore be subject to restrictions on transfer and resale; and
	 
	 	(b)	 	certificate(s) representing the Optioned Shares may bear one or more
restrictive legends as may be required under applicable securities legislation.

12.   If the Option is intended to qualify as an Incentive Stock Option, and if the Optionee sells or
otherwise disposes of any of the Optioned Shares acquired pursuant to exercise of the Option on or
before the later of (a) the date two years after the Date of Grant, and (b) the date one
year after issuance of such Optioned Shares to the Optionee upon exercise of the Option, the
Optionee shall immediately notify the Company in writing of such disposition. The Optionee
acknowledges that the Optionee may be subject to income tax withholding by the Company on the
compensation income recognized by the Optionee from the early disposition by payment in cash or out
of the current wages or other compensation payable to Optionee.

13.   Prior to the issuance of the Optioned Shares upon exercise of the Option, the Optionee must pay
or provide for any applicable federal, provincial or state withholding obligations of the Company.
At the sole discretion of the Company, Optioned may be permitted to provide for payment of
withholding taxes upon exercise of the Option by requesting that the Company retain Shares with a
fair market value equal to the minimum amount of taxes required to be withheld. In such case, the
Company shall issue the net number of Optioned Shares to the Optioned by deducting the Optioned
Shares retained from the Optioned Shares issuable upon exercise.

14.   If the Option is granted intending to qualify as an Incentive Stock Option under federal U.S.
income tax law, the Company does not represent or guarantee that the Option qualifies as such. The
Optionee agrees and acknowledges that there are or may be federal and state income tax consequences
to The Optionee as a result of the exercise of the Option and disposition of the Shares. THE
OPTIONEE IS URGED TO CONSULT HIS OR HER OWN TAX ADVISERS BEFORE EXERCISING THE OPTION OR DISPOSING
OF THE OPTIONED SHARES.

15.   Time is of the essence of this Agreement.

16.   This Agreement will enure to the benefit of and be binding on the Company and its successors,
and the Optionee and, to the extent provided in sections 5 and 8(b) of this Agreement, the
Optionee’s permitted assignee or personal representative(s), as the case may be.

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17.   This Agreement and any amendments are subject to: (a) the provisions of the Plan; and (b) such
shareholder or regulatory approvals as may be required by the rules and policies of any stock
exchange on which the Company’s shares may then be listed or of any other regulatory body having
jurisdiction.

18.   This Agreement will be governed by and construed in accordance with the law of State of
Delaware.

19.   This Agreement may be executed in counterparts, each of which will be deemed to be an original
and all of which will together constitute one and the same instrument.

20.   Delivery of an executed copy of this Agreement by electronic facsimile transmission or other
means of electronic communication capable of producing a printed copy will be deemed to be
execution and delivery of this Agreement as of the date first written above.

          IN WITNESS WHEREOF the parties have signed this Agreement as of the date first written above.

	 	 	 	 
	DATAWAVE
SYSTEMS INC.

	 	 	 
	Authorized Signatory	 	 	 
	 
	 
	 
	SIGNED, SEALED and DELIVERED by
	 	)	 
	____________________ in the presence of:
	 	)	 
	 	 	)	 
	 	 	)	 
	Signature
	 	)	 
	 	 	)	 
	Print Name
	 	)	 
	 	 	)	 
	Address
	 	)	 
	 	 	)	 
	 
	 	)	 
	 	 	)	 
	Occupation	 	)	 

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EXHIBIT A

To:   DataWave Systems Inc.

Notice of Election to Exercise

This Notice of Election to Exercise shall constitute proper notice pursuant to Section 4 of that
certain Stock Option Agreement (the “Agreement”) dated as of the ________ day of _______________, 200__,
between the Company and the undersigned.

The undersigned hereby elects to exercise Optionee’s option to
purchase ___________________ common
shares in the capital of the Company at a price of $________ per share, for aggregate consideration of
$__________, on the terms and conditions set forth in the Agreement and the Company’s 2000 Stock
Option Plan. Such aggregate consideration, in the form specified in Section 4 of the Agreement,
accompanies this notice.

The Optionee hereby directs the Company to issue, register and deliver the certificates
representing the shares as follows:

	 	 	 
	Registration Information:
	 	   Delivery Instructions:
	 	 	 
	 	 	 
	Name to appear on certificates
	 	   Name
	 	 	 
	 	 	 
	Address
	 	   Address
	 	 	 
	 	 	 
	 
	 	 
	 	 	 
	 	 	 
	 
	 	   Telephone Number
	 	 	 

DATED at ______________________________, the _____________ day of
____________________, 20____.

 

	 	 	 
	 
	 	(Name of Optionee – Please type or print)
	 	 	 
	 
	 	(Signature and, if applicable, Office)
	 	 	 
	 
	 	(Address of Optionee)
	 	 	 
	 
	 	City, State/Province, and Zip/Postal Code of Optionee)FORM OF INDEMNITY AGREEMENT

 

EXHIBIT 10.4

INDEMNITY AGREEMENT

THIS AGREEMENT made as of the 7th day of March, 2003.

BETWEEN:

DATAWAVE SYSTEMS INC.., a corporation incorporated under the laws of
the Province of British Columbia and having an office at 101 West 5th
Avenue, Vancouver, British Columbia, V5Y 4A5

(the “Indemnitor”)

AND:

                                        , director and/or officer, of DataWave Systems
Inc.

(the “Indemnitee”)

WHEREAS:

A. The Indemnitee has held and now holds positions as a director and/or officer of the Indemnitor;
and

B. In consideration of $1.00 and other good and valuable consideration received, the Indemnitor has
agreed to indemnify the Indemnitee for all liability, losses, damages, costs, charges, expenses,
fines and penalties which have been or may be sustained by the Indemnitee as a result of his acting
as a director and/or officer of the Indemnitor.

IN WITNESS THEREFORE that in consideration of the premises and subject to the conditions hereunder
and in consideration of the sum of ONE DOLLAR ($1.00) now paid by the Indemnitee to the Indemnitor
and other good and valuable consideration (the receipt and sufficiency of which is hereby
acknowledged by the Indemnitor), the parties agree as follows:

1. General Indemnity. Subject to section 4 hereof, the Indemnitor agrees to indemnify and
save the Indemnitee harmless from and against:

(a) any and all costs, charges, expenses, fees, damages or liabilities, regardless of when
they arose and howsoever arising and whether arising in law or in equity or under statute,
regulation or governmental ordinance of any jurisdiction, common law or otherwise (including
legal or other professional fees), and whether incurred alone or jointly with others, which
the Indemnitee may suffer, sustain, incur or be required to pay arising out of, in
connection with or incidental to any action, suit, demand, proceeding, investigation or
claim which may be brought, commenced, made, prosecuted or threatened against the Indemnitee
(any of the same hereinafter being referred to as a “Claim”) for or in respect of any act,
deed, matter or thing done, made, permitted or in

 

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respect of any omission to do, make or permit any act, deed, matter or thing whatsoever
required or desirable to do, make or permit, by the Indemnitee arising out of, in connection
with or incidental to the management, operations, activities or affairs of the Indemnitor or
the exercise by the Indemnitee of his powers or the performance of his duties as a director
and/or officer of the Indemnitor, whether sustained or incurred by reason of his negligence,
default, breach of duty, failure to exercise due diligence or otherwise in relation to the
Indemnitor;

(b) any and all costs, charges, expenses, fees, damages or liabilities which the Indemnitee
may suffer, sustain or incur or be required to pay in connection with investigating,
initiating, defending, preparing for, providing evidence in, instructing and receiving the
advice of his own or other counsel, or any amount paid to satisfy any judgment made, fine
imposed, damages or costs or any amount paid or liability incurred by the Indemnitee to
settle any Claim, or any amount of tax assessed against the Indemnitee in respect of any
indemnity under this Agreement;

(c) that to the extent not satisfied, paid or reimbursed by the Indemnitor, the Indemnitor
shall pay or reimburse the Indemnitee for any and all costs, charges, expenses, fees or
liabilities the Indemnitee sustains, incurs or is required to pay in or in relation to the
management, operations, activities or affairs of the Indemnitor in the Indemnitee’s capacity
as a director and/or officer of the Indemnitor, whether or not incurred in connection with
any Claim.

2. Specific Indemnity for Statutory Obligations. Without limiting the generality of the
provisions of section 1 hereof and subject to section 4 hereof, the Indemnitor agrees to indemnify
and save the Indemnitee harmless from and against any and all charges, costs, expenses, penalties,
assessments and liabilities arising by operation of statute and incurred by the Indemnitee in
relation to the management, operations, activities or affairs of the Indemnitor in the Indemnitee’s
capacity as a director and/or officer of the Indemnitor, including but not limited to all statutory
obligations to employees, suppliers, contractors, subcontractors, repairers and the like and any
government or any agency or division of any government, whether federal, provincial, state,
regional or municipal.

3. Exclusion of Liability. Subject to section 4 hereof, the Indemnitee, in his capacity as
a director and/or officer of the Indemnitor, shall not be liable for:

(a) any act, default, omission, or neglect of any other consultant, employee, director or
officer of the Indemnitor;

(b) any loss or damages incurred by the Indemnitor owing to any receipt or act of any
consultant, employee, director or officer of the Indemnitor in which the Indemnitee has
concurred or joined in for conformity;

(c) any loss or damages incurred by the Indemnitor through the insufficiency or deficiency
of title to any property acquired by order of the board of directors or the officers of the
Indemnitor for or on behalf of the Indemnitor;

(d) the insufficiency or deficiency of any security in or upon which any money of the
Indemnitor shall be invested or loaned;

(e) any loss or damage arising from the bankruptcy, insolvency or tortious act of any person
with whom any money, security or effect of the Indemnitor shall be deposited;

 

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(f) any loss, conversion, misapplication or misappropriation of or any damage resulting from
any dealings with any money, security or other asset belonging to the Indemnitor;

(g) any loss or damage occasioned by any error of judgment or oversight on the part of the
Indemnitee; or

(h) any other loss, damage or misfortune whatever.

4. Limitation of Indemnity and Exclusion from Liability. The indemnity provided for in
sections 1 and 2 hereof is subject to the Yukon Business Corporation Act, and will only be
effective if the directors:

(a) acted honestly and in good faith with a view to the best interests of the corporation,
and

(b) in the case of a criminal or administrative action or proceeding that is enforced by a
monetary penalty, the director had reasonable grounds for believing that his/her conduct was
lawful.

5. Court Applications. The Indemnitor represents and warrants that it will in a timely
manner take all necessary steps, including without limitation any and all necessary court
applications, to discharge its obligations under this Agreement.

6. Extensions, Modifications. Except as otherwise provided herein, this Agreement is
absolute and unconditional and the obligations of the Indemnitor shall not be affected, discharged,
impaired, mitigated or released by any extension of time, indulgence or modification which the
Indemnitee may extend or make with any person making any Claim or demand against the Indemnitee in
connection with his duty as a director and/or officer of the Indemnitor or in respect of any
liability incurred by him as a director and/or officer of the Indemnitor.

7. Other Rights and Remedies. The indemnification provided by this Agreement shall not be
deemed to derogate from or exclude any other rights to which the Indemnitee may be entitled under
any provision of any statute or otherwise at law.

8. Insolvency. The liability of the Indemnitor under this Agreement shall not be affected,
discharged, impaired, mitigated or released by reason of the discharge or release of the Indemnitee
in any bankruptcy, insolvency, receivership or other proceedings of creditors.

9. Multiple Proceedings. No action or proceeding brought or instituted under this
Agreement and no recovery pursuant thereto shall be a bar or defence to any further action or
proceeding which may be brought under this Agreement.

10. Modification. No modification of this Agreement shall be valid unless the same shall
be in writing and signed by the Indemnitor and the Indemnitee, provided however that if the
Indemnitee is requested to or agrees to act as a director and/or officer of any subsidiary of the
Indemnitor, the indemnity provided for herein shall be deemed to apply to the Indemnitee acting as
such, mutatis mutandis.

11. Procedure For Claims.

 

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(1) In the event the Indemnitee is named as a party in any action, claim, suit, proceeding
or investigation upon which the Indemnitee intends to base a claim for indemnification
hereunder, the Indemnitee shall give the Indemnitor prompt written notice of such action,
claim, suit, proceeding or investigation (provided, however, that failure of the Indemnitee
to provide such notice shall not relieve the Indemnitor of any liability to the Indemnitee
the Indemnitor may have under this Agreement except to the extent that the Indemnitor is
materially prejudiced by such failure).

(2) The Indemnitor shall participate in and, assume the defence of any such action,
including for certainty any derivative action, claim, suit, proceeding or investigation all
at the Indemnitor’s expense provided, however, that counsel retained by the Indemnitor shall
be satisfactory to the Indemnitee in the exercise of his reasonable judgement.
Notwithstanding the Indemnitor’s assumption of the defense of such action, claim, suit,
proceeding or investigation, the Indemnitee shall have the right to employ separate counsel
and to participate in, but not control, the defense of such action, claim, suit, proceeding
or investigation, and the Indemnitor shall bear the reasonable fees, costs and expenses of
such separate counsel as such fees, costs and expenses are incurred (provided that with
respect to any single action, claim, suit, proceeding or investigation, the Indemnitor shall
not be required to bear the fees, costs and expenses of more than one such counsel in any
single jurisdiction) if (a) the use of counsel chosen by the Indemnitor to represent the
Indemnitee would present such counsel with a conflict of interest; (b) the defendants,
respondents or other parties in any such action, claim, suit, proceeding or investigation
include both the Indemnitee on the one hand and the Indemnitor on the other hand, and the
Indemnitee has reasonably concluded that representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between them (in which
case the Indemnitor shall not have the right to direct the defense of such action, claim,
suit, proceeding or investigation on behalf of the Indemnitee); (c) the Indemnitor shall not
have employed counsel satisfactory to the Indemnitee in the exercise of the Indemnitee’s
reasonable judgment to represent him, within a reasonable time after notice of the
institution of such action, proceeding or investigation; or (d) the Indemnitor authorizes
the Indemnitee to employ separate counsel at the Indemnitor’s expense.

(3) The Indemnitee shall cooperate with the Indemnitor in the Indemnitor’s defense by
providing such information and other assistance which the Indemnitor may reasonably request
in connection with such defense.

(4) The Indemnitor shall not, without the Indemnitee’s prior written consent, settle,
compromise, consent to the entry of any judgment in or otherwise seek to terminate any
action, claim, suit or proceeding in respect of which indemnification may be sought
hereunder (whether or not the Indemnitee is a party thereto) unless such settlement,
compromise, consent or termination includes a release of the Indemnitee from any liabilities
arising out of such action, claim, suit or proceeding. The Indemnitee shall not, without
the Indemnitor’s prior written consent, admit liability, settle, compromise, consent to the
entry of any judgment in or otherwise seek to terminate any action, claim, suit,
investigation or proceeding referred to in the preceding paragraph and the Indemnitee shall
not disclose the existence of this Agreement unless required by law, subpoena, court order
or upon the advice of counsel.

 

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12. Resignation. Nothing in this Agreement shall prevent the Indemnitee from resigning as
a director and/or officer of the Indemnitor or from exercising any rights he may have to terminate
any consulting, management or other agreement he may have with the Indemnitor.

13. Termination. The obligations of the Indemnitor shall not terminate or be released upon
the Indemnitee ceasing to act as a director and/or officer of the Indemnitor at any time or times
and such obligations shall survive the termination or resignation of the Indemnitee. The
Indemnitor’s obligations may be terminated or released only by a written instrument executed by the
Indemnitee.

14. Tax Gross Up. The amount of any indemnity payable to the Indemnitee will be computed
in accordance with the following formula:

A = B  - D

       (1 - C)

where:

A = the amount of indemnity payable by the Indemnitor to the Indemnitee pursuant to this Agreement,

B = the amount of indemnity that would otherwise be payable by the Indemnitor to the Indemnitee
pursuant to this Agreement on the assumption that such amount is computed without reference to any
increased liability of the Indemnitee under applicable income, payroll, value added or any other
tax laws (whether of Canada, a province or Territory of Canada, or any other jurisdiction) arising
in consequence of such payment),

C = the aggregate of the highest effective rates of all taxes (including all surtaxes) under such
tax laws applicable to the Indemnitee in respect of such payment, after giving effect to any
applicable bilateral tax convention or treaty, and

D = any such tax required by law to be paid by or for the account of the Indemnitee on or with
respect to the Grossed Up Amount, and which is deducted by the Indemnitor from that amount and
remitted to a lawful taxing authority for the account of the Indemnitee.

For the purposes of this section, “Grossed Up Amount: means:

B

(1 - C)

15. Advances. In any case in which the Indemnitee incurs or becomes liable to pay any
amount in respect of which he is entitled to be indemnified by the Indemnitor pursuant to the
provisions of this Agreement, the Indemnitor shall advance such amount to the Indemnitee by way of
loan forthwith upon written demand therefor by the Indemnitee to the Indemnitor. Such notice shall
be accompanied by a written undertaking by the Indemnitee to repay the full amount of any funds so
advanced forthwith upon it being determined by the court on application for such approval, that the
Indemnitee is not entitled to indemnification in respect thereof. In that event any amount so
advanced shall be repaid forthwith following such determination and shall bear interest at 2% above
the prime rate charged by the Indemnitor’s bankers to its preferred

 

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commercial customers from time to time during the period from the date of advance to the date of
repayment.

16. Notices. Any notice to be given by one party to the other shall be sufficient if
delivered by hand, deposited in any Post Office in Canada, registered, postage prepaid, or sent by
means of electronic transmission (in which case any message so transmitted shall be immediately
confirmed in writing and mailed as provided above), addressed, as the case may be:

	(a)	 	To the Indemnitor:

DataWave Systems Inc.

Suite 110, 13575 Commerce Parkway

Richmond, British Columbia V6V 2L1

Facsimile: (604) 295-1801

Attention: John Gunn, General Manager, Chief Financial Officer

	(b)	 	To the Indemnitee:

                                        

                                        

                                        

Facsimile:                     

or at such other address of which notice is given by the parties pursuant to the provisions of this
section. Such notice shall be deemed to have been received when delivered, if delivered, and if
mailed, on the fifth business day (exclusive of Saturdays, Sundays and statutory holidays) after
the date of mailing. Any notice sent by means of electronic transmission shall be deemed to have
been given and received on the day it is transmitted, provided that if such day is not a business
day then the notice shall be deemed to have been given and received on the next business day
following. In case of an interruption of the postal service, all notices or other communications
shall be delivered or sent by means of electronic transmission as provided above, except that it
shall not be necessary to confirm in writing and mail any notice electronically transmitted.

17. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the Province of British Columbia and all disputes arising under this Agreement shall be
referred to and the parties hereto irrevocably attorn to the jurisdiction of the courts of British
Columbia.

18. Other Acts. The Indemnitor and the Indemnitee agree that they shall do all such
further acts, deeds or things and execute and deliver all such further documents, instruments or
certificates as may be necessary or advisable for the purpose of assuring and confirming unto the
Indemnitee the rights hereby created or intended, and of giving effect to and carrying out the
intention or facilitating the performance of the terms of this Agreement.

19. Interpretation. Wherever the singular or masculine are used throughout this Agreement,
the same shall be construed as meaning the plural or the feminine or body politic or corporate and
whenever the plural is used throughout this Agreement the same shall be construed as meaning the
singular, where the context or the parties hereto so require, and the liabilities and obligations
of the Indemnitor hereunder shall be joint as well as several.

 

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20. Invalid Terms Severable. If any term, clause or provision of this Agreement shall be
held invalid or contrary to law, the validity of any other term, clause or provision shall not be
affected and such invalid term, clause or provision shall be considered severable.

21. Entire Agreement. This Agreement shall supersede and replace any and all prior
agreements between the parties hereto respecting the matters set forth herein, and shall constitute
the entire agreement between the parties in respect of the matters set forth herein. There are no
representations, warranties, collateral agreements, or conditions expect as set forth herein.

22. Binding Effect. All of the agreements, conditions and terms of this Agreement shall
extend to and be binding upon the Indemnitor and their heirs, executors, administrators and other
legal representatives, successors and assigns and shall enure to the benefit of and may be enforced
by the Indemnitee and his heirs, executors, administrators and other legal representatives,
successors and assigns.

23. Independent Legal Advice. The Indemnitor acknowledges that it has been advised by the
Indemnitee to obtain independent legal advice with respect to entering into this Agreement, that
they have obtained such independent legal advice or have expressly waived such advice, and that
they are entering into this Agreement with full knowledge of the contents hereof, of their own free
will and with full capacity and authority to do so.

24. Power and Authority of Indemnitor. The Indemnitor represents and warrants to the
Indemnitee that this Agreement when duly and validly executed and delivered by the Indemnitor will
constitute a legal, valid and binding obligation of the Indemnitor enforceable against the
Indemnitor in accordance with the terms hereof and that the Indemnitor, if a corporation, is duly
incorporated and organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation, has the necessary corporate power, capacity and authority to enter
into this Agreement and perform its obligations hereunder and that the execution and delivery of
this Agreement by the Indemnitor has been duly and properly authorized by all necessary corporate
action and that.

25. Counterparts. This Agreement may be signed in counterparts, in writing or by
electronic facsimile transmission or by other means of electronic communication capable of
producing a printed copy, each of which will be deemed to be an original and all such counterparts
together will constitute one and the same instrument and notwithstanding the date of execution,
will be deemed to be effective as of the date set forth above.

IN WITNESS WHEREOF the Indemnitor and the Indemnitee have hereunto set their hands and seals as of
the day and year first above written.

By the Indemnitor:

DATAWAVE SYSTEMS INC.

Per:                                        

Authorized Signatory

 

 - 8 -

	 	 	 	 	 	 	 
	SIGNED, SEALED and DELIVERED by

	 	 	)	 	 	 
	[ ] (Indemnitee) in the presence of:

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	                                                                                                                                            

	 	 	)	 	 	 
	Name

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	                                                                                                                                            

	 	 	)	 	 	 
	Address

	 	 	)	 	 	                                                                                                                                            
	 

	 	 	)	 	 	(Indemnitee)
	                                                                                                                                            

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	                                                                                                                                            

	 	 	)	 	 	 
	Occupation

	 	 	)	 	 	 

This is page 9 of the Indemnity Agreement dated March ______, 2003 between ________________
(Indemnitee) and DataWave Systems Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]