Document:

Asset Purchase Agreement

ASSET
PURCHASE AGREEMENT

 

This
asset purchase agreement is made as of this 30th day of
April, 2004 by and between Northern
Star Distributors Ltd., a British
Columbia corporation with an executive office at Suite 210D, 8351 Alexandra
Road, Richmond, British Columbia, V6X 3P3, Canada (the “Buyer”), and
Hansa
Capital Corp., a
British Columbia company with an executive office at 1145 West 7th Avenue,
Vancouver, British Columbia, V6H 1B5, Canada (the “Seller”).

 

Factual
Background

 

The
parties acknowledge that the agreement set forth below is premised upon the
following mutual understanding:

 

 

	
      A.  
	
      The
      Seller is the owner of the Internet domain name “northernstarmall.com”
      (the “Domain
      Name”).

 

 

	
      B.  
	
      Buyer
      desires to purchase the Domain Name and certain related assets of the
      Seller in accordance with the terms and conditions set forth
      herein.

 

Terms
of Agreement

 

In
consideration of the mutual promises and obligations set forth below, the
parties agree that:

 

 

	
      1.  
	
      Currency.
      All references to dollars are to Canadian dollars unless otherwise
      indicated.

 

 

	
      2.  
	
      Assets
      to be Transferred by the Seller. In
      exchange for the purchase price and other agreements described below, the
      Seller will transfer to the Buyer by warranty bill of sale and assignment,
      free and clear of all liens, encumbrances and other rights or
      restrictions, all of the following assets (collectively the “Assets”):

 

 

	
      a.  
	
      all
      right, title and interest of the Seller in the Domain
  Name;

 

 

	
      b.  
	
      all
      right, title and interest that the Seller may have in the trade name
      “northernstarmall.com” and all logos and other marks associated with the
      trade name (the “Trade
      Names”);
      and

 

 

	
      c.  
	
      all
      right, title and interest in the inventory used in the business associated
      with the Domain Name and the Trade Names.

 

 

	
      3.  
	
      Purchase
      Price.
      The Buyer will pay to the Seller Ten Thousand Dollars ($10,000) for the
      Assets (the “Purchase
      Price”).

 

 

	
      4.  
	
      Payment
      of Purchase Price. As
      consideration for the Purchase Price, the Buyer will give a promissory
      note to the Seller for the principal amount of $10,000 with a simple
      interest rate of 3% per annum, which is the sum of the overnight rate set
      by the Bank of Canada on April 13, 2004, plus an additional 1%, all to be
      paid on or before December 31, 2004 (the “Promissory
      Note”).
      The Promissory Note will be in a form that is acceptable to the Seller and
      its counsel.

 

 

	
      5.  
	
      Closing.
      The parties will agree on a Closing date not later than April 30, 2004. On
      the date hereof, each of the parties will sign all of the documents
      required to complete this agreement. The Buyer will submit a transfer
      request to the Seller’s domain registration agent and the Seller will,
      upon receipt of the transfer request from its domain registration agent,
      approve and accept the transfer of the
Domain.

Asset
-1 - Pur Agr

 

	
      6.  
	
      Conditions
      Precedent to Buyer’s Obligations.
      The obligations of the Buyer to complete this agreement are expressly
      subject to the following conditions:

 

 

	
      a.  
	
      The
      Seller must have approved and accepted the transfer
    request.

 

 

	
      b.  
	
      The
      Seller must have delivered to the Buyer the warranty bill of sale and
      assignments conveying good and marketable title to the Assets, free of all
      liens and encumbrances, in a form acceptable to the Buyer and its
      counsel.

 

 

	
      c.  
	
      All
      representations and warranties of the Seller set forth in this agreement
      must be true, complete and accurate as of the date of the
      Closing.

 

 

	
      7.  
	
      Conditions
      Precedent to Seller’s Obligations.
      The obligations of the Seller to complete this agreement are expressly
      subject to the following conditions:

 

 

	
      a.  
	
      The
      Buyer must have submitted a transfer request to the Seller’s domain
      registration agent 

 

 

	
      b.  
	
      The
      Buyer must have delivered the Promissory Note to the
    Seller.

 

 

	
      c.  
	
      All
      representations and warranties of the Buyer set forth in this agreement
      must be true, complete and accurate as of the date of the
      Closing.

 

 

	
      8.  
	
      Representations
      and Warranties of the Seller.
      As a material inducement to the Buyer to purchase the Assets as
      contemplated by this agreement, the Seller represents and warrants to the
      Buyer that:

 

 

	
      a.  
	
      The
      Seller is duly organized, validly existing and in good standing under the
      laws of the Province of British Columbia, and has the power under its
      articles of incorporation to transfer the Assets and enter into and
      perform this agreement.

 

 

	
      b.  
	
      The
      execution, delivery and performance of this agreement have been validly
      authorized by appropriate corporation action, the authorization is
      effective, and no other corporate authorization is necessary for the
      Seller to properly complete the transactions contemplated in this
      agreement.

 

 

	
      c.  
	
      On
      the date of the Closing the Seller will have good and marketable title to
      the Assets, free and clear of liens, encumbrances and rights of
      others.

 

 

	
      d.  
	
      The
      Seller has properly registered the Domain Name without committing fraud or
      misrepresentation, has not received any claim from a third party that the
      use of Domain Name violates the rights of the third party, has not used
      the Domain Name for any illegal purpose.

 

 

	
      e.  
	
      The
      use of the Domain Name does not infringe the rights of any third party in
      any jurisdiction. 

 

 

	
      f.  
	
      No
      legal actions, suits, or other legal or administrative proceedings are
      pending or, to the best of the Seller’s knowledge, threatened against the
      Seller in regard to the Assets, and the Seller is not aware of any facts
      that might result in any action, suit or
proceeding.

 

 

	
      g.  
	
      No
      representation or warranty made by Seller in this agreement or in any
      statement or certificate furnished to Buyer under this agreement or in
      connection with it, contains any untrue statement of material fact or
      omits to state a material fact necessary to make the statements contained
      not misleading.

 

Asset
-2 - Pur Agr

 

	
      h.  
	
      The
      representations and warranties of the Seller set forth above are made upon
      the signing of this agreement and will be deemed to be made again at the
      time of the Closing, and such representations and warranties will survive
      the date of the Closing.

 

 

	
      9.  
	
      Representations
      and Warranties of the Buyer. As
      a material inducement to the Seller to sell the Assets as contemplated by
      this agreement, the Buyer represents and warrants to the Seller
      that:

 

 

	
      a.  
	
      The
      Buyer is duly organized, validly existing and in good standing under the
      laws of the Province of British Columbia, and has the power under its
      articles of incorporation to acquire the Assets and enter into and perform
      this agreement.

 

 

	
      b.  
	
      The
      execution, delivery and performance of this agreement have been validly
      authorized by appropriate corporation action, the authorization is
      effective, and no other corporate authorization is necessary for the Buyer
      to properly complete the transactions contemplated in this
      agreement.

 

 

	
      c.  
	
      No
      representation or warranty made by Buyer in this agreement or in any
      statement or certificate furnished or to be furnished to Seller pursuant
      hereto or in connection herewith, contains or will contain any untrue
      statement of material fact or omits or will omit to state a material fact
      necessary to make the statements contained therein not
      misleading.

 

 

	
      d.  
	
      The
      representations and warranties of the Buyer set forth above are made upon
      the signing of this agreement and will be deemed to be made again at the
      time of the Closing, and such representations and warranties will survive
      the date of the Closing.

 

 

	
      10.  
	
      General
      Provisions.

 

 

	
      a.  
	
      Time.
      Time is of the essence of this agreement and any amendment to
      it.

 

 

	
      b.  
	
      Assignment.
      This agreement is binding upon and inures to the benefit of the parties
      and their respective successors and permitted assigns. Neither party may
      assign this agreement without the written consent of the
      other.

 

 

	
      c.  
	
      Notices.
      All
      notices and statements must be in writing and, together with any payments,
      be delivered personally or by overnight courier service, return receipt
      requested, delivery prepaid to the intended party at the address given at
      the beginning of this agreement. Any notice is deemed to be received upon
      delivery, if personally delivered, or one business day after depositing
      with an overnight courier service if so
deposited.

 

 

	
      d.  
	
      Entire
      Understanding.
      This agreement represents the entire understanding and agreement between
      the parties and supersedes all prior negotiations, representations and
      agreements made by and between them

 

 

	
      e.  
	
      Counterparts.
      This agreement may be signed in two or more counterparts and delivered to
      the parties by fax. The counterparts together are deemed to be one
      original agreement.

 

 

	
      f.  
	
      Enforceability.
      The
      invalidity or enforceability of any particular provision of this agreement
      does not affect the other provisions, and the agreement must construed in
      all respects as if the invalid or unenforceable provisions were
      omitted.

 

 

	
      g.  
	
      Jurisdiction.
      This agreement is governed by the laws of British Columbia, and any
      litigation arising out of this agreement must be conducted in the courts
      of British Columbia.

 

Asset
-3 - Pur Agr

 

 

Execution
by the Parties

 

The duly
authorized signatures of the parties below are evidence of the parties’
agreement as of the date set out on page 1.

 

Northern
Star Distributors Ltd., a
British Columbia corporation

 

 

 

By: 
  /s/
Zuber Jamal 
   
   
   
  

 

Its:
 
  President 
   
  , duly
authorized

 

Hansa
Capital Corp., a
British Columbia corporation

 

 

 

By: 
  /s/
signed 
   
   
   
  

 

Its:
 
  President 
   
  , duly
authorized

 

Asset
-4 - Pur AgrSublease

 

SUBLEASE

 

THIS
SUBLEASE dated for reference April
1, 2004

 

BETWEEN:

 

David
Higano a person residing in the province of British Columbia and having an
office at Suite 210D, 8351 Alexandra Rd. Richmond BC V6X 3P3

 

(the
“Sublandlord”)

 

AND:

 

Northern
Star Distributors Ltd., a
corporation duly incorporated under the laws of the province of British Columbia
and having an office at Suite 1107-11871 Horseshoe Way, Richmond, BC V7A
5H5

 

(the
“Subtenant”)

 

WHEREAS:

 

A.  By a
lease made as of Feb 1, 2004 (collectively, the “Head Lease leased to the
Sublandlord upon and subject to the terms of the Head Lease, certain premises
located on the 2nd floor in
the building municipally known as 8351
Alexandra Rd. Richmond BC V6X 3P3 (the
“Building”), which premises (the “Leased Premises”) are more particularly
described in the Head Lease.

 

B.  The
Sublandlord and the Subtenant have agreed to enter into this Sublease on the
terms hereinafter set forth.

 

NOW
THEREFORE in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by each of
the parties, the parties agree as follows:

 

	(1)  	
      Capitalized
      Terms

 

Capitalized
terms used in this Sublease will have the meanings ascribed to them in the Head
Lease unless otherwise defined herein.

 

	(2)  	
      Grant
      Of Sublease.

 

Subject
to the consent of the Head Landlord, the Sublandlord subleases the Leased
Premises (referred to as the “Sublet Premises” in this Sublease) from the
Sublandlord for the balance of the Term, less one day (the “Sublease
Term”).

 

	(3)  	
      Basic
      Rent and Additional Rent

 

The
Subtenant covenants to pay as basic rent (“Sublease Basic Rent”) for the whole
period of the Sublease Term commencing on April
1, 2004 and
ending on March 31, 2005 the sum of $6,000 per annum, in equal monthly
instalments payable in advance on the first day of each and every month. The
Subtenant covenants to pay all Additional Rent when due under the Head Lease.
The Sublease Basic Rent and Additional Rent will be referred to collectively as
“Rent”.

 

 

Sublease -1 -
Exhibit

 

 

	(4)  	
      Net
      Rent

 

Rent
payable under this Sublease will be net and care free to the Sublandlord, and
will be payable without deduction or set-off by the Subtenant throughout the
Sublease Term. All costs incurred by the Sublandlord in collecting any amounts
payable hereunder or enforcing any right or obligation of the Subtenant under
this Sublease will be payable by the Subtenant on demand and will be deemed to
be Rent for all purposes from the date demand therefor is made. In addition to
Rent hereunder, the Subtenant will remit to the Sublandlord any goods and
services tax or other tax or imposition collectible by the Sublandlord for the
use of the Sublet Premises by the Subtenant or goods or services provided to the
Subtenant, and the Sublandlord will be entitled to exercise all remedies in
respect of any failure by the Subtenant to pay such amounts as if they were Rent
in arrears. From the date any Rent or other amounts payable under this Sublease
are due until they are actually paid, they will bear interest at the rate of
[percentage] % per
annum.

 

	(5)  	
      Subtenant’s
      Covenants.

 

The
Subtenant acknowledges having received and read a copy of the Head Lease and
covenants and agrees with the Sublandlord:

 

	(a)  	
      to
      perform all of the obligations of the Tenant under the Head
      Lease.

 

	(b)  	
      to
      abide by any rules and regulations governing the use of the Premises and
      the Building appended to the Head Lease, as the same may be amended from
      time to time;

 

	(c)  	
      to
      pay Rent and perform all of the obligations of the Subtenant under this
      Sublease;

 

	(d)  	
      not
      to do or omit to do any act in or around the Sublet Premises which would
      cause a breach of the Sublandlord’s obligations as Tenant under the Head
      Lease;

 

	(e)  	
      to
      promptly pay when due to the authorities having jurisdiction all Taxes
      (whether imposed upon the Subtenant or otherwise) attributable to the
      personal property, trade fixtures, business, income, or occupancy of the
      Subtenant or any other occupant of the Sublet Premises and to any
      leasehold improvements or fixtures within the Sublet Premises, and to the
      use by the Subtenant or its officers, employees, and invitees of any of
      the Common Facilities; and

 

	(f)  	
      to
      indemnify and save harmless the Sublandlord against and from any and all
      expenses, costs, damages, suits, actions, or liabilities arising or
      growing out of the failure of the Subtenant to perform any of its
      obligations hereunder and from all claims and demands of every kind and
      nature made by any person or persons to or against the Sublandlord for all
      and every manner of costs, damages, or expenses incurred by or injury or
      damage to such person or persons or his, her, or their property, to the
      extent such claims or demands arise out of the use and occupation of the
      Sublet Premises by the Subtenant or its officers, employees, or any other
      person authorized or permitted by the Subtenant to be on the Sublet
      Premises or in or about the Building or any of the above-mentioned, and
      from all costs, counsel fees, expenses, and liabilities incurred by reason
      of any such claim or any action or proceeding brought
    thereon.

 

	(6)  	
      Subtenant’s
      Breach

 

If the
Subtenant fails to perform any of its obligations herein, the Sublandlord will
have all of the remedies against the Subtenant which the Head Landlord has under
the Head Lease for a breach thereof, whether expressly set out in the Head Lease
or arising in law or equity.

 

 

Sublease -2 -
Exhibit

 

 

	(7)  	
      Sublandlord’s
      Covenants

 

Subject
to the Head Landlord first consenting to this Sublease and the due performance
by the Subtenant of its obligations herein, the Sublandlord covenants and agrees
with the Subtenant:

 

	(a)  	
      for
      quiet enjoyment of the Sublet Premises;

 

	(b)  	
      to
      enforce against the Head Landlord for the benefit of the Subtenant the
      obligations of the Head Landlord under the Head Lease which materially
      affect the Sublet Premises;

 

	(c)  	
      to
      perform all of the obligations of the Sublandlord under this Sublease;
      and

 

	(d)  	
      to
      perform all of the obligations of the Sublandlord under the Head Lease
      which materially affect the Sublet Premises, including without limitation
      the payment of Rent pursuant to the Head
Lease.

 

	(8)  	
      Use

 

The
Sublet Premises will be used by the Subtenant solely for the purpose of
corporate offices
and for no other purpose.

 

	(9)  	
      Insurance

 

The
Subtenant will take out and maintain throughout the Sublease Term insurance with
respect to the Sublet Premises providing for the coverages and upon the terms
required in the Head Lease to be maintained by the Sublandlord. The Sublandlord
and the Head Landlord will be shown as named insureds on all liability policies,
with a cross liability and severability of interest endorsement, and each
property insurance policy will contain a waiver of subrogation with respect to
the Head Landlord and the Sublandlord. The Subtenant releases the Sublandlord
from any claim the Subtenant may have which is or would be insured against by
the insurance policies which the Subtenant is required to maintain by this
Sublease.

 

	(10)  	
      Assigning
      or Subletting by the Subtenant

 

The
Subtenant agrees that with respect to any assigning or subletting by it, the
provisions of the Head Lease apply with the following amendments
thereto:

 

	(a)  	
      each
      reference to the Landlord, the Tenant, the Lease and the Leased Premises
      will become, respectively, the Sublandlord, the Subtenant, the Sublease
      and the Sublet Premises;

 

	(b)  	
      any
      references to a period of days will be extended by 30
      days; and

 

	(c)  	
      the
      Sublandlord will have the additional right to withhold and/or delay its
      consent if it has not received the prior written consent of the Head
      Landlord.

 

	(11)  	
      Exercise
      of Rights

 

The
determination of any state of facts, promulgation of any rules or regulations,
or the taking of any other action or exercise of any other rights under the Head
Lease which is permitted to the Head Landlord will, upon written notice to the
Subtenant of such action or exercise, be binding upon the Subtenant and the
Sublet Premises.

 

	(12)  	
      Paramountcy
      of Head Lease

 

The
Subtenant acknowledges and agrees that it has no greater interest in the Sublet
Premises than the Sublandlord under the Head Lease. To the extent that any right
or benefit conferred by this Sublease contravenes or is incompatible with the
Head Lease, such right or benefit will be amended or modified so as not to
contravene or be incompatible with the Head Lease.

 

 

Sublease -3 -
Exhibit

 

 

	(13)  	
      Notices

 

All
notices, consents, and approvals permitted or required to be given hereunder
will be in writing and will be delivered to the Sublandlord or the Subtenant as
the case may be as follows:

 

	(a)  	
      to
      the Sublandlord at 8351
      Alexandra Rd. Richmond BC V6X 3P3

 

Attention:
David Higano;

 

	(b)  	
      to
      the Subtenant at the Sublet Premises

 

Attention:
Zuber Jamal

 

Any
notice so made will be deemed to have been given and received on the date of
delivery on a business day to an adult person on the premises specified above
and if no adult person is present, by posting the notice prominently at the
entrance of the premises specified.

 

	(14)  	
      Successors
      and Assigns

 

Except as
otherwise provided herein, all of the rights and obligations of a party enure to
the benefit of and are binding upon the successors and assigns of that
party.

 

	(15)  	
      Further
      Assurances

 

Each
party agrees to execute such further assurances as may be reasonably required
from time to time by any other party to more fully effect the true intent of
this Sublease.

 

	(16)  	
      Directory
      Boards

 

Subject
to the Head Landlord’s consent and pursuant to the terms of the Head Lease,
where applicable, the Subtenant will have the right to include the name of its
firm on the Building directory board, in the main Building lobby, and on the
2nd floor of
the Building at the Sublandlord’s expense.

 

	(17)  	
      Entire
      Agreement and “As Is”

 

This
Sublease merges and supersedes all prior negotiations, representations, and
agreements between the parties relating in any way to the Sublet Premises. The
parties agree that there are no representations, covenants, agreements,
warranties, or conditions in any way relating to the subject matter of this
Sublease or the occupation or use of the Sublet Premises, whether express or
implied, or otherwise, except as set forth in this Sublease.

 

	(18)  	
      Waiver

 

No waiver
by the Sublandlord of a condition or the performance of an obligation of the
Subtenant hereunder binds the Sublandlord unless in writing and executed by it,
and no waiver given by the Sublandlord will constitute a waiver of any other
condition or performance by the Subtenant of its obligations hereunder in any
other case.

 

	(19)  	
      Sublease
      Execution and Head Landlord’s Consent
Required

 

This
Sublease and all subsequent amendments thereto are only binding on the
Sublandlord and the Subtenant respectively, if in writing and executed by
authorized signatories for the Sublandlord and the Subtenant and if executed
copies thereof have been delivered to each party. It is a condition precedent to
this Sublease and all obligations of the Sublandlord and Subtenant hereunder
that the Head Landlord consents to this Sublease. The parties agree to use their
commercially reasonable best efforts to obtain the consent of the Head Landlord
to this Sublease, and to provide all such information and assurances (other than
third-party guarantees or covenants or additional security) as the Head Landlord
may reasonably require in this regard.

 

 

Sublease -4 -
Exhibit

 

 

	(20)  	
      Governing
      Law

 

This
Sublease will be governed in accordance with laws applicable in the province of
British Columbia, and the parties irrevocably attorn to the non-exclusive
jurisdiction of the courts of British Columbia.

 

IN
WITNESS WHEREOF the parties have duly executed this Sublease as of the date set
out above.

 

[if a
party is an individual:]

	
       

      SIGNED,
      SEALED & DELIVERED 

       

      by
      [name]
      in
      the presence of:

       

      __________________________________________________________________

      Signature
      of Witness

       

      Name:_____________________________________________________________
       

       

      Address:__________________________________________________________

       

      

       

      Occupation:________________________________________________________
	
       

      )

      )

      )

      )

      ) /s/
      David Higano

      ) [name]

      )

      )

      )

      )

      )

      )

      )

      )

 

[if a
party is a corporation:]

 

The
Corporate Seal of Northern Star Distributors Ltd. has been affixed to this
document in the presence of:

 

/s/
Zuber Jamal      

 

Authorized
Signatory                    C/S

 

 

 

Authorized
Signatory

 

The
consent to sublease should include the following schedule:

 

 

Sublease -5 -
Exhibit

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