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Exhibit 4(c)    
    

HEWLETT-PACKARD COMPANY

  

and

  

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

AS TRUSTEE

     

  
 

    SECOND SUPPLEMENTAL INDENTURE  
    
  

to

   
  INDENTURE

   

DATED AS OF OCTOBER 14, 1997

   

   

BETWEEN

   

HEWLETT-PACKARD COMPANY

   

AND

   

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

AS TRUSTEE
  (as successor to Chase Trust Company of California) 

        SECOND SUPPLEMENTAL INDENTURE (this "Second Supplemental Indenture") dated as of August 24, 2004, is entered into by and between
Hewlett-Packard Company, a Delaware corporation ("HP"), and J.P. Morgan Trust Company, National Association, as trustee (the "Trustee"). 

        WHEREAS,
HP previously executed and delivered to the Trustee an indenture, dated as of October 14, 1997, and a First Supplemental Indenture, dated as of March 16, 2000 (as
supplemented, the "Indenture"), providing for the issuance by HP of its Liquid Yield Option Notes due 2017 (Zero Coupon Subordinated); 

        WHEREAS,
HP now desires to amend Article V of the Indenture as set forth in this Second Supplemental Indenture; 

        WHEREAS,
Section 9.01(4) of the Indenture permits HP and the Trustee, at any time and from time to time, to enter into one or more supplemental indentures to the Indenture without
notice to or consent of the Securityholders to make any change to the Indenture that does not materially and adversely affect the rights of any Securityholder; and 

        WHEREAS,
HP has requested that the Trustee execute and deliver this Second Supplemental Indenture in connection with the amendment of Article V. 

        NOW,
THEREFORE, HP and the Trustee hereby agree that the following Sections of this Second Supplemental Indenture supplement the Indenture with respect to Securities issued thereunder: 

        SECTION
1.    Definitions.    Capitalized terms used herein and not defined herein have the meanings ascribed to such terms in the
Indenture, and the words "herein," "hereof" and "hereby" and other
words of similar import used in this Second Supplemental Indenture refer to this Second Supplemental Indenture as a whole and not to any particular section hereof. 

        SECTION
2.    Amendment.    Article V, Section 5.01(3) of the Indenture is hereby amended as by inserting the following
phrase immediately at the beginning of such Section, "in a transaction in which the Company is not the surviving person,". 

        SECTION
3.    Recitals and Validity.    The Trustee accepts the trusts in this Second Supplemental Indenture declared and provided upon
the terms and conditions set forth in the Indenture. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Second Supplemental
Indenture or the due execution hereof by HP or for, or in respect of the recitals and statements contained herein, all of which recitals and statements are made by HP and not the Trustee. 

        SECTION
4.    Notices.    Pursuant to Section 13.02 of the Indenture, any notice or communication to HP should be addressed as
follows: 

	 	 	Hewlett-Packard Company

3000 Hanover Street

MS20-1050

Palo Alto, CA 94304

Attention: General Counsel

Facsimile: (650) 857-4837	 	 

        SECTION
9.    Duplicate Originals.    The parties may sign any number of copies of this Second Supplemental Indenture. Each signed copy
shall be an original, but all of them together represent the same agreement. 

        SECTION
10.    Governing Law.    This Second Supplemental Indenture shall be governed by, and construed in accordance with, the laws of
the State of New York. 

        SECTION
11.    Separability.    In case any provision in this Second Supplemental Indenture is invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. 

 

        SECTION
12.    Headings.    The headings of the Sections of this Second Supplemental Indenture have been inserted for convenience of
reference only, and are not to be considered a part of this Second Supplemental Indenture and in no way modify or restrict any of the terms and provisions of this Second Supplemental Indenture. 

[The
remainder of this page is intentionally left blank]. 

2

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be duly executed, all as of the date first written above. 

	 	 	Hewlett-Packard Company
	

 	
 	

By:	
 	

/s/  CHARLES N. CHARNAS      
 Charles N. Charnas

Vice President, Deputy General Counsel

and Assistant Secretary

	

 	
 	
J.P. Morgan Trust Company, National Association
	

 	
 	

By:	
 	

/s/  JAMES NAGY      

	 	 	Name:	 	James Nagy
	 	 	Title:	 	Assistant Vice President

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Exhibit 4(c)

SECOND SUPPLEMENTAL INDENTUREFiled by Automated Filing Services Inc. (604) 609-0244 - V G TECH, Inc. - Exhibit 10.1

 SHARE PURCHASE AGREEMENT 

THIS AGREEMENT is dated for reference as of the 3rd day of September, 2004. 

AMONG: 

  
    
       WATER-CAPITAL-HOLDING LTD., a company duly formed
        under the laws of Dubai and the United Arab Emirates, having an address
        c/o Meyer-Reumann, Legal Consultancy, World Trade Center, level 13, P.O.
        Box 9353, Dubai, United Arab Emirates 

       (hereinafter called the "Vendor") 

    

  

 OF THE FIRST PART 

AND: 

  
    
       V G TECH, INC., a corporation duly formed
        under the laws of Nevada with its principal office at 4676 West 6th
        Avenue, Suite A, Vancouver, British Columbia, Canada V6K 1V7 

       (hereinafter called the "Purchaser") 

    

  

 OF THE SECOND PART 

AND: 

  
    
       AQUA SOCIETY GMBH, a company with limited
        liability duly formed under the laws of Germany with its principal office
        at Raiffeisenstrasse 1, D-61169, Friedberg, Germany 

       (hereinafter called the "Company") 

    

  

 OF THE THIRD PART 

AND:

  
    
       STEVE LIVINGSTON of 2345 West 15th
        Avenue, Vancouver, British Columbia, Canada V6K 249

       (hereinafter called the "Principal Shareholder") 

    

  

 OF THE FOURTH PART 

WHEREAS: 

 A.                The
  Purchaser has offered to purchase all of the issued and outstanding shares of
  the Company; 

 B.                The
  Vendor has agreed to sell to the Purchaser all of the issued and outstanding
  shares of the Company held by the Vendor on the terms and conditions set forth
  herein; 

 1

 C.                
  In order to induce the Vendor to sell the shares of the Company to the Purchaser,
  the Principal Shareholder has agreed to transfer to the Vendor certain shares
  of the Purchaser; 

 D.                
  In order to record the terms and conditions of the agreement among them the
  parties wish to enter into this Agreement; 

 NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration
  of the foregoing and of the sum of $1.00 paid by the Purchaser to the Vendor
  and to the Company, the receipt of which is hereby acknowledged, the parties
  hereto agree each with the other as follows: 

 1.                INTERPRETATION

 1.1                
                 
  Where used herein or in any amendments or Schedules hereto, the following terms
  shall have the following meanings: 

	 	 (a)      	 "Business" means the business in which
        the Company is engaged, namely: 

	 
	 	 	 (i)      
	 the sale of equipment for the extraction of potable
        water from the atmosphere; and 

	 
	 	 	 (ii)     
      
	 any other enterprise that is directly related to
        the foregoing. 

	 
	 	 (b)      	 "Closing Date" means the fifth business
        day following the day on which the Company delivers the financial statements
        referred to in Article 5 to the Purchaser or such other date as may be
        mutually agreed upon by the parties hereto but in any event not more than
        60 days from the date of this Agreement. 

	 
	 	 (c)      	 "Company Financial Statements" means those
        financial statements of the Company, audited in accordance with Generally
        Accepted Accounting Principals of the United States of America, as at
        July 31, 2004, which are attached as Schedule "A" hereto. 

	 
	 	 (d)      	 "Company Shares" means the one share of
        common stock in the capital of the Company held by the Vendor, being all
        of the issued and outstanding shares of the Company. 

	 
	 	 (e)      	 "Principal Shares" means the 36,000,000
        presently issued restricted common shares of the Purchaser to be transferred
        to the Vendor as described in paragraph 2.5. 

	 
	 	 (f)      	 "Purchaser Audited Financial Statements"
        means those audited financial statements of the Purchaser as at September
        30, 2003, attached as Schedule "B" hereto. 

	 
	 	 (g)      	 "Purchaser Financial Statements" means,
        collectively, the Purchaser Audited Financial Statements and the Purchaser
        Unaudited Financial Statements. 

2

 

	 	 (h)      	 "Purchaser Shares" means those fully paid and non-assessable
        post-split shares in the common stock of the Purchaser to be issued by
        the Purchaser to the Vendor as set out in Article 2. 

	 
	 	 (i)      	 "Purchaser Unaudited Financial Statements" means
        those unaudited financial statements of the Purchaser as at June 30, 2004,
        attached as Schedule "B" hereto. 

	 
	 	 (j)      	 "Purchaser Warrants" means those special warrants,
        in the form attached as Schedule "I" hereto, entitling the holder to acquire
        one share in the common stock of the purchaser for each special warrant
        held, to be issued by the Purchaser to the Vendor pursuant to Article
        2. 

	 
	 	 (k)      	 "Securities Act" means the United States Securities
        Act of 1933. 

 1.2                      
             All dollar amounts
  referred to in this Agreement are in United States funds, unless expressly stated
  otherwise.

 1.3                        
           The following schedules are
  attached to and form part of this Agreement: 

                
  Schedule A - Company Financial Statements

                 
  Schedule B - Purchaser Financial Statements 

                 
  Schedule C - Employment, Service & Pension Agreements of the Company 

                 
  Schedule D - Real Property & Leases of the Company

                 
  Schedule E - Encumbrances on the Company's Assets 

                 
  Schedule F - Company Litigation 

                 
  Schedule G - Purchaser Litigation 

                 
  Schedule H - Registered Trademarks, Trade Names & Patents of the Company
  

                 
  Schedule I - Form of Purchaser Warrants 

  2.               
    SHARE EXCHANGE AND PURCHASE OF SHARES 

  2.1                
                   
    The Vendor hereby covenants and agrees to sell, assign and transfer to the Purchaser,
    and the Purchaser covenants and agrees to purchase from the Vendor, the Company
    Shares held by the Vendor. 

 2.2               
                 
  In consideration for the sale of the Company Shares by the Vendor to the Purchaser,
  the Purchaser shall: 

                
  (a)                
  allot and issue to the Vendor the Purchaser Shares; and 

                
  (b)                
  issue to the Vendor the Purchaser Warrants. 

2.3                
  The total number of Purchaser Shares to be allotted and issued by the Purchaser
  to the Vendor and the Nominees shall be 10,000,000 shares.

 2.4                
  The total number of Purchaser Warrants to be issued by the Purchaser to the
  Vendor and the Nominees shall be 34,000,000 special warrants. 

 3

 2.5                      
           In consideration for the Vendor
  entering into this Agreement and completing the sale of the Company Shares to
  the Purchaser, the Principal Shareholder agrees to transfer the Principal Shares
  to the Vendor on the Closing Date. 

 2.6                      
            The Vendor acknowledges
  that the Purchaser Shares are "restricted securities" within the meaning of
  the Securities Act and will be issued to the Vendor in accordance with Regulation
  S of the Securities Act. Any certificates representing the Purchaser Shares
  will be endorsed with the following legend in accordance with Regulation S of
  the Securities Act: 

  
     "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
      NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE
      BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
      OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT. SUCH SECURITIES
      MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT
      IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE
      REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION
      UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE
      CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT". 

  

 2.7                
                 
  The Vendor acknowledges that the Purchaser Warrants and the securities to be
  issued upon their exercise are "restricted securities" within the meaning of
  the Securities Act and will be issued to the Vendor in accordance with Regulation
  S of the Securities Act. Any certificates representing the Purchaser Warrants
  will be endorsed with the following legend in accordance with Regulation S of
  the Securities Act: 

  
     "THE SPECIAL WARRANTS REPRESENTED BY THIS CERTIFICATE
      AND THE SECURITIES TO BE ISSUED UPON THE EXERCISE OF THESE SPECIAL WARRANTS
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND
      HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
      OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT. THESE SPECIAL
      WARRANTS MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED
      EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN
      EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
      FROM REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THESE SPECIAL
      WARRANTS OR THE SECURITIES TO BE ISSUED ON THE EXERCISE OF THESE SPECIAL
      WARRANTS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT. THE SPECIAL
      WARRANTS REPRESENTED BY THIS CERTIFICATE MAY NOT BE EXERCISED BY OR ON BEHALF
      OF ANY U.S. PERSON AS THAT TERM IS DEFINED BY REGULATION S UNLESS REGISTERED
      UNDER THE ACT OR AN EXEMPTION TO REGISTRATION IS AVAILABLE." 

  

 4

 3.                
  COVENANTS, REPRESENTATIONS AND WARRANTIES OF THE VENDOR AND
  THE COMPANY 

                
                 
  The Vendor and the Company jointly and severally covenant with and represent
  and warrant to the Purchaser as follows, and acknowledge that the Purchaser
  is relying upon such covenants, representations and warranties in connection
  with the purchase by the Purchaser of the Company Shares: 

 3.1                
                 
  The Company has been duly incorporated and organized, is a validly existing
  company with limited liability and is in good standing under the laws of Germany;
  it has the corporate power to own or lease its property and to carry on the
  Business; it is duly qualified as a company with limited liability to do business
  and is in good standing with respect thereto in each jurisdiction in which the
  nature of the Business or the property owned or leased by it makes such qualification
  necessary; and it has all necessary licenses, permits, authorizations and consents
  to operate its Business in accordance with the terms of its business plan. 

 3.2                
                 
  The stated share capital of the Company is ¬ 25,000 with one share issued
  and outstanding. 

 3.3                
                 
  The Company Shares owned by the Vendor are owned by it as the beneficial and
  recorded owner with good and marketable title thereto, free and clear of all
  mortgages, liens, charges, security interests, adverse claims, pledges, encumbrances
  and demands whatsoever. 

 3.4                
                 
  No person, firm or corporation has any agreement or option or any right or privilege
  (whether by law, pre-emptive or contractual) capable of becoming an agreement
  or option for the purchase from the Vendor of any of the Company Shares held
  by it. 

 3.5                
                 
  No person, firm or corporation has any agreement or option, including convertible
  securities, warrants or convertible obligations of any nature, or any right
  or privilege (whether by law, pre-emptive or contractual) capable of becoming
  an agreement or option for the purchase, subscription, allotment or issuance
  of any of the unissued shares in the capital of the Company or of any securities
  of the Company. 

 3.6                
                 
  The Company does not have any subsidiaries or agreements of any nature to acquire
  any subsidiary or to acquire or lease any other business operations and will
  not prior to the Closing Date acquire, or agree to acquire, any subsidiary or
  business without the prior written consent of the Purchaser. 

 3.7                
                 
  The Company will not, without the prior written consent of the Purchaser, issue
  any additional shares from and after the date hereof to the Closing Date or
  create any options, warrants or rights for any person to subscribe for or acquire
  any unissued shares in the capital of the Company. 

 3.8                
                 
  The Company is not a party to or bound by any guarantee, warranty, indemnification,
  assumption or endorsement or any other like commitment of the obligations, liabilities
  (contingent or otherwise) or indebtedness of any other person, firm or corporation.

 3.9                
                 
  The books and records of the Company fairly and correctly set out and disclose
  in all material respects, in accordance with generally accepted accounting principles,
  the financial 

 5

 position of the Company as at the date hereof, and all material
  financial transactions of the Company relating to the Business have been accurately
  recorded in such books and records. 

 3.10               
                 
  The Company Financial Statements present fairly the assets, liabilities (whether
  accrued, absolute, contingent or otherwise) and the financial condition of the
  Company as at the date thereof and there will not be, prior to the Closing Date,
  any increase in such liabilities. 

 3.11                
                
  The entering into of this Agreement and the consummation of the transactions
  contemplated hereby will not result in the violation of any of the terms and
  provisions of the constating documents or bylaws of the Company or of any indenture,
  instrument or agreement, written or oral, to which the Company or the Vendor
  may be a party. 

 3.12                
                
  The entering into of this Agreement and the consummation of the transactions
  contemplated hereby will not, to the best of the knowledge of the Company and
  the Vendor, result in the violation of any law or regulation of Germany or of
  any states in which they are resident or in which the Business is or at the
  Closing Date will be carried on or of any municipal bylaw or ordinance to which
  the Company or the Business may be subject. 

 3.13                
                
  This Agreement has been duly authorized, validly executed and delivered by the
  Company and the Vendor. 

 3.14                
                
  The Business has been carried on in the ordinary and normal course by the Company
  since the date of the Company Financial Statements and will be carried on by
  the Company in the ordinary and normal course after the date hereof and up to
  the Closing Date. 

 3.15                
                
  Except in connection with the real property leases described on Schedule D hereto,
  no capital expenditures in excess of $5,000 have been made or authorized by
  the Company since the date of the Company Financial Statements and no capital
  expenditures in excess of $5,000 will be made or authorized by the Company after
  the date hereof and up to the Closing Date without the prior written consent
  of the Purchaser. 

 3.16                
                
  Except as disclosed in the Schedules hereto, the Company is not a party to any
  written or oral employment, service or pension agreement, and, the Company does
  not have any employees who cannot be dismissed on not more than one months notice
  without further liability. 

 3.17                
                
  Except as disclosed in the Schedules hereto, the Company does not have outstanding
  any bonds, debentures, mortgages, notes or other indebtedness, and the Company
  is not under any agreement to create or issue any bonds, debentures, mortgages,
  notes or other indebtedness, except liabilities incurred in the ordinary course
  of business. 

 3.18                
                
  Except as disclosed in the Schedules hereto, the Company is not the owner, lessee
  or under any agreement to own or lease any real property. 

 3.19                
                
  Except as disclosed in the Schedules hereto, the Company owns, possesses and
  has good and marketable title to its undertaking, property and assets, and without
  restricting the generality of the foregoing, all those assets described in the
  balance sheet included in the Company Financial Statements, free and clear of
  any and all mortgages, liens, pledges, charges, security interests, encumbrances,
  actions, claims or demands of any nature whatsoever or howsoever arising. 

 6

 3.20                
                
  The Company has its property insured against loss or damage by all insurable
  hazards or risks on a replacement cost basis and such insurance coverage will
  be continued in full force and effect to and including the Closing Date; to
  the best of the knowledge of the Company and the Vendor, the Company is not
  in default with respect to any of the provisions contained in any such insurance
  policy and has not failed to give any notice or present any claim under any
  such insurance policy in due and timely fashion. 

 3.21                
                
  Except as disclosed herein the Company does not have any outstanding material
  agreements, contracts or commitments, whether written or oral, of any nature
  or kind whatsoever, including, but not limited to, employment agreements, except:

	 	 (a)      	 agreements, contracts and commitments in the ordinary
        course of business; 

	 
	 	 (b)      	 service contracts on office equipment; 

	 
	 	 (c)      	 the employment, services and pension agreements
        described in the Schedules hereto; and 

	 
	 	 (d)      	 the lease described in the Schedules hereto. 

 3.22                
               
    Except as provided in the Schedules hereto, there are no actions, suits
  or proceedings (whether or not purportedly on behalf of the Company), pending
  or threatened against or affecting the Company or affecting the Business, at
  law or in equity, or before or by any federal, state, municipal or other governmental
  department, commission, board, bureau, agency or instrumentality, domestic or
  foreign and neither the Company nor the Vendor are aware of any existing ground
  on which any such action, suit or proceeding might be commenced with any reasonable
  likelihood of success. 

 3.23                
                
  The Company is not in material default or breach of any contracts, agreements,
  written or oral, indentures or other instruments to which it is a party and
  there are no facts, which, after notice or lapse of time or both, that would
  constitute such a default or breach, and all such contracts, agreements, indentures
  or other instruments are now in good standing and the Company is entitled to
  all benefits thereunder. 

 3.24                
                
  The Company has the right to use all of the registered trade marks and trade
  names, both domestic and foreign, in relation to the Business as set out in
  the Schedules hereto. 

 3.25                
                
  To the best of the knowledge of the Company and the Vendor, the conduct of the
  Business does not infringe upon the patents, trade marks, trade names or copyrights,
  domestic or foreign, of any other person, firm or corporation. 

 3.26                
                 
  To the best of the knowledge of the Company and the Vendor, the Company is conducting
  and will conduct the Business in compliance with all applicable laws, rules
  and regulations of each jurisdiction in which the Business is or will be carried
  on, the Company is not in material breach of any such laws, rules or regulations
  and is, or will be on the Closing Date, fully licensed, registered or qualified
  in each jurisdiction in which the Company owns or leases property or carries
  on or proposes to carry on the Business to enable the Business to be carried
  on as now conducted and its property and assets to be owned, leased and operated,
  and all 

 7

 such licenses, registrations and qualifications are or will
  be on the Closing Date valid and subsisting and in good standing and that none
  of the same contains or will contain any provision, condition or limitation
  which has or may have a materially adverse effect on the operation of the Business.

 3.27                
                
  All facilities and equipment owned or used by the Company in connection with
  the Business are in good operating condition and are in a state of good repair
  and maintenance. 

 3.28                
                
  Except as disclosed in the Company Financial Statements and salaries incurred
  in the ordinary course of business since the date thereof, the Company has no
  loans or indebtedness outstanding which have been made to or from directors,
  former directors, officers, shareholders and employees of the Company or to
  any person or corporate body not dealing at arm's length with any of the foregoing,
  and will not, prior to closing, pay any such indebtedness unless in accordance
  with budgets agreed in writing by the Purchaser. 

 3.29                
                
  The Company has made full disclosure to the Purchaser of all aspects of the
  Business and has made all of its books and records available to the representatives
  of the Purchaser in order to assist the Purchaser in the performance of its
  due diligence searches and no material facts in relation to the Business have
  been concealed by the Company or the Vendor. 

 3.30                
                
  There are no material liabilities of the Company of any kind whatsoever, whether
  or not accrued and whether or not determined or determinable, in respect of
  which the Company or the Purchaser may become liable on or after the consummation
  of the transaction contemplated by this Agreement, other than liabilities which
  may be reflected on the Company Financial Statements, liabilities disclosed
  or referred to in this Agreement or in the Schedules attached hereto, or liabilities
  incurred in the ordinary course of business and attributable to the period since
  the date of the Company Financial Statements, none of which has been materially
  adverse to the nature of the Business, results of operations, assets, financial
  condition or manner of conducting the Business. 

 3.31                
                
  The Articles, bylaws and other constating documents of the Company in effect
  with the appropriate corporate authorities as at the date of this Agreement
  will remain in full force and effect without any changes thereto as at the Closing
  Date. 

 3.32                
                
  The directors and officers of the Company are as follows: 

	 	 Name  	 Position  	 
	 	 Achim Stamm  	 Managing Director  	 

 3.33                
                
  The Vendor represents and warrants to the Purchaser and the Principal Shareholder
  that the Vendor is not a "U.S. Person" as defined by Regulation S of the United
  States Securities Act of 1933 and is not acquiring the Purchaser Shares for
  the account or benefit of a U.S. Person. 

 3.34                
                
  The Vendor represents and warrants to the Purchaser that it is acquiring the
  Purchaser Shares for investment purposes, only, with no present intention of
  dividing its interest with others or reselling or otherwise disposing of any
  or all of the Purchaser Shares. 

 8

 3.35                
                
  The Vendor acknowledges that the Vendor was not in the United States at the
  time the offer to acquire the Purchaser Shares was received it.

 4.                
  COVENANTS, REPRESENTATIONS AND WARRANTIES  OF THE PURCHASER
  AND THE PRINCIPAL SHAREHOLDER

                
                 
  The Purchaser and the Principal Shareholder covenant with and represent and
  warrant to the Vendor and the Company as follows and acknowledge that the Vendor
  is relying upon such covenants, representations and warranties in entering into
  this Agreement: 

 4.1               
                 
  The Purchaser has been duly incorporated and organized and is validly subsisting
  under the laws of the State of Nevada; it is a reporting issuer under the United
  States Securities Exchange Act of 1934 and is in good standing with
  respect to all filings required to be made under such statutes with the United
  States Securities and Exchange Commission; it has the corporate power to own
  or lease its properties and to carry on its business as now being conducted
  by it; and it is duly qualified as a corporation to do business and is in good
  standing with respect thereto in each jurisdiction in which the nature of its
  business or the property owned or leased by it makes such qualification necessary.

 4.2                
                 
  The authorized capital of the Purchaser consists of 100,000,000 shares of common
  stock with a par value $0.001 per share, of which 69,908,000 shares are currently
  issued and outstanding as fully paid and non-assessable. 

 4.3                
                 
  No person, firm or corporation has any agreement or option, including convertible
  securities, warrants or convertible obligations of any nature, or any right
  or privilege (whether by law, pre-emptive or contractual) capable of becoming
  an agreement or option for the purchase, subscription, allotment or issuance
  of any of the unissued shares in the capital of the Purchaser.

 4.4                
                 
  The Purchaser will not, without the prior written consent of the Vendor, issue
  any additional shares from and after the date hereof to the Closing Date or
  create any options, warrants or rights for any person to subscribe for any unissued
  shares in the capital of the Purchaser. 

 4.5                
                 
  The directors and officers of the Purchaser are as follows:

	 	 Name  	 Position  
	 	 Steve Livingston  	  Director, President, Secretary and Treasurer 
    

 4.6               
                 
  The Purchaser Audited Financial Statements present fairly the assets, liabilities
  (whether accrued, absolute, contingent or otherwise) and the financial condition
  of the Purchaser as at the date thereof. 

 4.7                
                 
  The Purchaser Unaudited Financial Statements present fairly the assets, liabilities
  (whether accrued, absolute, contingent or otherwise) and the financial condition
  of the Purchaser as of the date thereof and there will not be, prior to the
  Closing Date, any material increase in such liabilities. 

 9

 4.8                
                 
  There have been no material adverse changes in the financial position or condition
  of the Purchaser or damage, loss or destruction materially affecting the business
  or property of the Purchaser since the date of the Purchaser Unaudited Financial
  Statements except as may be disclosed by the Purchaser in Current Reports on
  Form 8-K filed with the United States Securities and Exchange Commission. 

 4.9                
                 
  The Purchaser has made full disclosure to the Company of all material aspects
  of the Purchaser's business and has made all of its books and records available
  to the representatives of the Company in order to assist the Company in the
  performance of its due diligence searches and no material facts in relation
  to the Purchaser's business have been concealed by the Purchaser. 

 4.10                
                
  The Purchaser is not a party to or bound by any agreement or guarantee, warranty,
  indemnification, assumption or endorsement or any other like commitment of the
  obligations, liabilities (contingent or otherwise) or indebtedness or any other
  person, firm or corporation. 

 4.11                
                
  Except as disclosed in the Schedules attached hereto, there are no actions,
  suits or proceedings (whether or not purportedly on behalf of the Purchaser),
  pending or threatened against or affecting the Purchaser or affecting the Purchaser's
  business, at law or in equity, or before or by any federal, state, municipal
  or other governmental department, commission, board, bureau, agency or instrumentality,
  domestic or foreign and the Purchaser is not aware of any existing ground on
  which any such action, suit or proceeding might be commenced with any reasonable
  likelihood of success. 

 4.12                
                
  The Purchaser's common shares are quoted on the NASD OTC Bulletin Board and
  the Purchaser is not in breach of any regulation, by-law or policy of, or any
  of the terms and conditions of its quotation on the NASD OTC Bulletin Board
  applicable to the Purchaser or its operations. 

 4.13                
                
  The Purchaser does not currently have any employees and is not party to any
  collective agreements with any labour unions or other association of employees.

 4.14                
                
  The Purchaser does not have any subsidiaries or agreements of any nature to
  acquire any subsidiary or to acquire or lease any other business operations
  and will not prior to the Closing Date acquire, or agree to acquire, any subsidiary
  or business without the prior written consent of the Company. 

 4.15                
                
  The business of the Purchaser now and until the Closing Date will be carried
  on in the ordinary and normal course after the date hereof and upon to the Closing
  Date and no material transactions shall be entered into until the Closing Date
  without the prior written consent of the Vendor. 

 4.16                
                
  No liability, cost or expense will be incurred or payable by the Purchaser in
  connection with the disposition of any of its properties. 

 4.17                
                
  No capital expenditures in excess of $5,000 have been made or authorized by
  the Purchaser since the date of the Purchaser Audited Financial Statements and
  no capital 

 10

 expenditures in excess of $5,000 will be made or authorized
  by the Purchaser after the date hereof and up to the Closing Date without the
  prior written consent of the Vendor. 

 4.18                
                
  The Purchaser is not indebted to any of its directors or officers nor are any
  of the Purchaser's directors or officers indebted to the Purchaser. 

 4.19                
                
  The Purchaser has good and marketable title to its properties and assets as
  set out in the Purchaser Audited Financial Statements and such properties and
  assets are not subject to any mortgages, pledges, liens, charges, security interests,
  encumbrances, actions, claims or demands of any nature whatsoever or howsoever
  arising. 

 4.20                
                
  The Corporate Charter, Articles of Incorporation and Bylaws and any other constating
  documents of the Purchaser in effect with the appropriate corporate authorities
  as at the date of this Agreement will not have been materially changed as at
  the Closing Date other than to effect any changes set out in Article 5. 

 4.21                
                
  There are no material liabilities of the Purchaser of any kind whatsoever, whether
  or not accrued and whether or not determined or determinable, in respect of
  which the Purchaser or the Company may become liable on or after the consummation
  of the transaction contemplated by this Agreement, other than liabilities which
  may be reflected on the Purchaser Audited Financial Statements, liabilities
  disclosed or referred to in this Agreement or in the Schedules attached hereto,
  or liabilities incurred in the ordinary course of business and attributable
  to the period since the date of the Purchaser Audited Financial Statements,
  none of which has been materially adverse to the nature of the Purchaser's business,
  results of operations, assets, financial condition or manner of conducting the
  Purchaser's business. 

 4.22                
                
  The entering into of this Agreement and the consummation of the transactions
  contemplated hereby will not result in the violation of any of the terms and
  provisions of the constating documents or bylaws of the Purchaser or of any
  indenture, instrument or agreement, written or oral, to which the Purchaser
  may be a party. 

 4.23                
                
  The entering into of this Agreement and the consummation of the transactions
  contemplated hereby will not, to the best of the knowledge of the Purchaser,
  result in the violation of any law or regulation of the United States or the
  State of Nevada or of any local government bylaw or ordinance to which the Purchaser
  or the Purchaser's business may be subject. 

 4.24                
                
  This Agreement has been duly authorized, validly executed and delivered by the
  Purchaser. 

 4.25                
                
  The Purchaser has no contracts with any officers, directors, accountants, lawyers
  or others which cannot be terminated with not more than one month's notice.

 4.26                
                
  No agreement has been made with Purchaser in respect of the purchase and sale
  contemplated by this Agreement that could give rise to any valid claim by any
  person against the Company or the Vendor for a finder's fee, brokerage commission
  or similar payment. 

 11

 5.               
  ACTS IN CONTEMPLATION OF CLOSING 

 5.1                
                 
  The Company covenants and agrees with the Purchaser and the Principal Shareholder
  to, prior to or on the Closing Date, deliver to the Purchaser the Company Financial
  Statements to be reviewed and commented upon or audited by the Purchaser or
  the Purchaser's agent as may required by Item 310 of Regulation SB of the United
  States Securities and Exchange Commission in order to permit the Purchaser to
  make the United States Securities and Exchange Commission filings required in
  respect of the purchase and sale of the shares of the Company in accordance
  with this Agreement.

 6.               
  CONDITIONS OF CLOSING 

 6.1                
                 
  All obligations of the Purchaser under this Agreement are subject to the fulfilment,
  at or prior to the Closing Date, of the following conditions: 

	 	 (a)      	 Except as affected by the completion of
        the acts set out in Article 5, the respective representations and warranties
        of the Vendor and the Company contained in this Agreement or in any Schedule
        hereto or certificate or other document delivered to the Purchaser pursuant
        hereto shall be substantially true and correct as of the date hereof and
        as of the Closing Date with the same force and effect as though such representations
        and warranties had been made on and as of such date, regardless of the
        date as of which the information in this Agreement or any such Schedule
        or certificate is given, and the Purchaser shall have received on the
        Closing Date certificates dated as of the Closing Date, in forms satisfactory
        to counsel for the Purchaser and signed under seal by the Vendor and by
        two senior officers of the Company to the effect that their respective
        representations and warranties referred to above are true and correct
        on and as of the Closing Date with the same force and effect as though
        made on and as of such date, provided that the acceptance of such certificates
        and the closing of the transactions herein provided for shall not be a
        waiver of the respective representations and warranties contained in Articles
        3 and 4 or in any Schedule hereto or in any certificate or document given
        pursuant to this Agreement which covenants, representations and warranties
        shall continue in full force and effect for the benefit of the Purchaser;
      

	 
	 	 (b)      	 the Company shall have caused to be delivered
        to the Purchaser either a certificate of an officer of the Company or,
        at the Purchaser's election, an opinion of legal counsel acceptable to
        the Purchaser's legal counsel, in either case, in form and substance satisfactory
        to the Purchaser, dated as of the Closing Date, to the effect that: 

	 
	 	 	 (i)     
      
	 the Company owns, possesses and has good and marketable
        title to its undertaking, property and assets, and without restricting
        the generality of the foregoing, those assets described in the balance
        sheet included in the Company Financial Statements, free and clear of
        any and all mortgages, liens, pledges, charges, security interests, encumbrances,
        actions, claims or demands of any nature whatsoever and howsoever arising;
      

12

	 	 	(ii)
	 the Company has been duly incorporated, organized
        and is validly existing under the laws of Germany, it has the corporate
        power to own or lease its properties and to carry on its business that
        is now being conducted by it and is in good standing with respect to filings
        with the appropriate governmental authorities; 

	 	 	 	 
	 	 	(iii)
	 the issued and authorized capital of the Company
        is as set out in this Agreement and all of the issued and outstanding
        shares have been validly issued as fully paid and non-assessable; 

	 	 	 	 
	 	 	(iv)
	all necessary approvals and all necessary steps and
        corporate proceedings have been obtained or taken to permit the Company
        Shares to be duly and validly transferred to and registered in the name
        of the Purchaser; and 

	 	 	 	 
	 	 	(v)
	 the consummation of the purchase and sale contemplated
        by this Agreement, including, but not limited to, the transfer of the
        Company Shares to the Purchaser, will not be in breach of any laws of
        Germany , and, in particular but without limiting the generality of the
        foregoing, the execution and delivery of this Agreement by the Vendor
        and the Company has not breached and the consummation of the purchase
        and sale contemplated hereby will not be in breach of any laws of Germany
        or of any other country or state in which a Vendor is resident or the
        Company carries on business; 

	 	 	 	 
	 	 	 and, without
        limiting the generality of the foregoing, that all corporate proceedings
        of the Company, its shareholders and directors and all other matters which,
        in the reasonable opinion of counsel for the Purchaser, are material in
        connection with the transaction of purchase and sale contemplated by this
        Agreement, have been taken or are otherwise favourable to the completion
        of such transaction. 

	 	 	 	 
	 	 (c)      	 At the Closing Date there
        shall have been no materially adverse change in the affairs, assets, liabilities,
        or financial condition of the Company or the Business (financial or otherwise)
        from that shown on or reflected in the Company Financial Statements. 

	 	 	 	 
	 	 (d)      	 	 No substantial damage by fire or other hazard to
        the Business shall have occurred prior to the Closing Date. 

	 	 	 	 
	 	 (e)      	 	 The Company shall have completed or be able to complete
        on the Closing Date those acts required to have been done by it in contemplation
        of closing as set out in Article 5. 

 6.2               
                 
  In the event any of the foregoing conditions contained in paragraph 6.1 hereof
  are not fulfilled or performed at or before the Closing Date to the reasonable
  satisfaction of the Purchaser, the Purchaser may terminate this Agreement by
  written notice to the Vendor and in such event the Purchaser shall be released
  from all further obligations hereunder but any of such conditions may be waived
  in writing in whole or in part by the Purchaser without prejudice to its rights
  of termination in the event of the non-fulfilment of any other conditions. 

 13

 6.3               
                 
  All obligations of the Vendor under this Agreement are subject to the fulfilment,
  at or prior to the Closing Date, of the following conditions: 

	 	 (a)      	 The representations and warranties of
        the Purchaser contained in this Agreement or in any Schedule hereto or
        certificate or other document delivered to the Company and the Vendor
        pursuant hereto shall be substantially true and correct as of the date
        hereof and as of the Closing Date with the same force and effect as though
        such representations and warranties had been made on and as of such date,
        regardless of the date as of which the information in this Agreement or
        any such Schedule or certificate is given, and the Vendor shall have received
        on the Closing Date a certificate dated as of the Closing Date, in a form
        satisfactory to the Vendor and signed under seal by two senior officers
        of the Purchaser, to the effect that such representations and warranties
        referred to above are true and correct on and as of the Closing Date with
        the same force and effect as though made on and as of such date, provided
        that the acceptance of such certificate and the closing of the transaction
        herein provided for shall not be a waiver of the representations and warranties
        contained in Article 4 or in any Schedule hereto or in any certificate
        or document given pursuant to this Agreement which covenants, representations
        and warranties shall continue in full force and effect for the benefit
        of the Vendor. 

	 
	 	 (b)      	 The Purchaser shall have caused to be
        delivered to the Vendor either a certificate of an officer of the Purchaser
        or, at the Vendor's election, an opinion of legal counsel acceptable to
        counsel to the Vendor, in either case, in form and substance satisfactory
        to the Vendor, dated as of the Closing Date, to the effect that: 

	 
	 	 	 (i)      
	 the Purchaser has been duly incorporated and organized
        and is validly subsisting under the laws of the State of Nevada, it has
        the corporate power to own or lease its properties and to carry on its
        business that is now being conducted by it and is in good standing with
        respect to all filings with the appropriate corporate authorities in Nevada
        and with respect to all annual and quarterly filings with the United States
        Securities and Exchange Commission; 

	 
	 	 	 (ii)      
	 the issued and authorized capital of the Purchaser
        is as set out in this Agreement and all issued shares have been validly
        issued as fully paid and non-assessable; 

	 
	 	 	 (iii)      
	 all necessary approvals and all necessary steps
        and corporate proceedings have been obtained or taken to permit the Purchaser
        Warrants to be duly and validly issued to the Vendor and the Purchaser
        Shares to be duly and validly allotted and issued to and registered in
        the name of the Vendor; 

	 
	 	 	 (iv)     
      
	 the consummation of the purchase and sale contemplated
        by this Agreement, including, but not limited to, the issuance and delivery
        of the Purchaser Shares and the Purchaser Warrants to the Vendor, in consideration
        of the purchase of the Company Shares from the Vendor, will not be in
        breach of any laws of Nevada and, in particular, 

14

	 	 	 but without limiting the generality of the foregoing,
        the execution and delivery of this Agreement by the Purchaser has not
        breached, and the consummation of the purchase and sale contemplated hereby
        will not be in breach of, any securities laws of the United States of
        America; 

	 
	 	 	 and, without limiting the generality of the foregoing,
        that all corporate proceedings of the Purchaser, its shareholders and
        directors and all other matters which, in the reasonable opinion of counsel
        for the Company, are material in connection with the transaction of purchase
        and sale contemplated by this Agreement, have been taken or are otherwise
        favourable to the completion of such transaction. 

	 
	 	 (c)      	 At the Closing Date there shall have been no materially
        adverse change in the affairs, assets, liabilities, financial condition
        or business (financial or otherwise) of the Purchaser from that shown
        on or reflected in the Purchaser Audited Financial Statements. 

	 
	 	 (d)      	 The Purchaser shall have completed or be able to
        complete on the Closing Date those acts required to have been done by
        it in contemplation of closing as set out in Article 5. 

 6.4                
                 
  In the event that any of the conditions contained in paragraph 6.3 hereof shall
  not be fulfilled or performed by the Purchaser at or before the Closing Date
  to the reasonable satisfaction of the Vendor then the Vendor shall have all
  the rights and privileges granted to the Purchaser under paragraph 6.2, mutatis
  mutandis. 

 7.               
  CLOSING ARRANGEMENTS 

 7.1               
                 
  The closing shall take place on the Closing Date at the offices of O'Neill Law
  Group PLLC at Suite 1880, 1055 West Georgia Street, Vancouver, British Columbia,
  Canada V6E 3P3. 

 7.2                
                 
  On the Closing Date, upon fulfilment of all the conditions set out in Article
  6 which have not been waived in writing by the Purchaser or by the Vendor, as
  the case may be, then: 

	 	 (a)      	 the Vendor shall deliver to the Purchaser:
      

	 
	 	 	 (i)      
	 certificates representing all the Company Shares
        duly endorsed in blank for transfer or with a stock power of attorney
        (in either case with the signature guaranteed by the appropriate official)
        with all applicable security transfer taxes paid; 

	 
	 	 	 (ii)      
	 the certificates and officer's certificate or opinion
        referred to in paragraph 6.1; and 

	 
	 	 	 (iii)   
          
	 evidence satisfactory to the Purchaser and its legal
        counsel of the completion by the Company and the Vendor of those acts
        referred to in paragraph 5.1. 

15

	 	 (b)      	 the Vendor and the Company shall cause
        the Company Shares to be transferred into the name of the Purchaser, or
        its nominee, to be duly and regularly recorded in the books and records
        of the Company; 

	 
	 	 (c)      	 the Purchaser shall issue and deliver
        to the Vendor: 

	 
	 	 	 (i)     
      
	 certificates representing the Purchaser Shares and
        the Purchaser Warrants duly endorsed with legends, acceptable to the Purchaser's
        counsel, respecting restrictions on transfer as required by or necessary
        under the applicable securities legislation of the United States or any
        state, including, but not limited to, the non-transferability of such
        shares for a period of one year from the Closing Date; 

	 
	 	 	 (ii)      
	 the certificates and officer's certificate or opinion
        referred to in paragraph 6.3; and 

	 
	 	 	 (iii)      
	 sequential resignations and directors resolutions
        such that all of the directors and officers of the Purchaser will have
        resigned and the following will have been appointed directors and/or officers
        of the Purchaser immediately following closing: 

	 	 	 	 Name  	 Position  
	 	 	 	 Achim Stamm  	 Director, President, Secretary and Treasurer 
    

	 	(d)	

      The Principal Shareholder shall deliver to the Vendor
        the certificates representing all the Principal Shares duly endorsed in
        blank for transfer or with a stock power of attorney (in either case with
        the signature guaranteed by the appropriate official) with all applicable
        security transfer taxes paid. 

 8.               
  ACTS TO BE TAKEN AFTER CLOSING 

 8.1               
                 
   The Purchaser covenants and agrees with the Company and the Vendor to,
  as soon as is reasonably practicable following the Closing Date, seek the approval
  of its shareholders to amend the articles of the Purchaser by: 

	 	 (a)      	 changing the name of the Purchaser to "Aqua Society, Inc."; and 
	 	 	 
	 	 (b)      	 increasing the number of shares of common stock that the Purchaser is
      authorized to issue to 200,000,000 shares, 

 and, subject to the Purchaser obtaining such shareholder approval,
  to forthwith take such actions as are necessary to effect those amendments to
  the articles of the Purchaser.

 9.               
  GENERAL PROVISIONS 

 9.1               
                 
  Time shall be of the essence of this Agreement. 

 16

 9.2                
                 
  This Agreement contains the whole agreement between the parties hereto in
  respect of the purchase and sale of the Company Shares and there are no warranties,
  representations, terms, conditions or collateral agreements expressed, implied
  or statutory, other than as expressly set forth in this Agreement. 

 9.3                
                 
  This Agreement shall enure to the benefit of and be binding upon the parties
  hereto and their respective successors and permitted assigns. The Purchaser
  may not assign this Agreement without the consent of the Company which consent
  may be withheld for any reason whatsoever. 

 9.4                
                 
  Any notice to be given under this Agreement shall be duly and properly given
  if made in writing and delivered or telecopied to the addressee at the address
  as set out on page one of this Agreement. Any notice given as aforesaid shall
  be deemed to have been given or made on, if delivered, the date on which it
  was delivered or, if telecopied, on the next business day after it was telecopied.
  Any party hereto may change its address for notice from time to time by providing
  notice of such change to the other parties hereto in accordance with the foregoing.

 9.5                
                 
  This Agreement may be executed in one or more counter-parts, each of which
  so executed shall constitute an original and all of which together shall constitute
  one and the same agreement. 

 9.6                
                 
  This Agreement shall be construed and enforced in accordance with, and the
  rights of the parties shall be governed by, the laws of the State of Nevada,
  and each of the parties hereto irrevocably attorns to the jurisdiction of the
  courts of the State of Nevada. 

 9.7                
                 
  No claim shall be made by the Company or the Vendor against the Purchaser,
  or by the Purchaser against the Company or the Vendor, as a result of any misrepresentation
  or as a result of the breach of any covenant or warranty herein contained unless
  the aggregate loss or damage to such party exceeds $5,000. 

 -- INTENTIONALLY LEFT BLANK --

17

 IN WITNESS WHEREOF the parties hereto have executed
  this Agreement as of the day and year first above written. 

	 THE COMMON SEAL OF  	  
	 AQUA SOCIETY GMBH  	  
	 was hereunto affixed in the presence of:  	 c/s  
	  	 
	 	 
	 Authorized Signatory  	  
	 	 
	 THE COMMON SEAL OF  	  
	 V G TECH, INC.  	 c/s  
	 was hereunto affixed in the presence of:  	  
	  	 
	 	 
	 Authorized Signatory  	  
	 	 
	 THE COMMON SEAL OF  	  
	 WATER-CAPITAL-HOLDING LTD.  	 c/s  
	 was hereunto affixed in the presence of:  	  
	  	 
	 	 
	 Authorized Signatory  	  
	 	 
	 SIGNED, SEALED AND DELIVERED  	  
	 BY STEVE LIVINGSTON  	  
	 in the presence of:  	  
	  	  
	 	 
	 Signature of Witness  	 STEVE LIVINGSTON  
	  	 
	 	 
	 Name  	  
	  	 
	 	 
	 Address  	  

18

SCHEDULE "A" 

      to that Share Purchase Agreement
  

  dated for reference as of the 3rd day of September, 2004

 

V G TECH, INC.

(A Development Stage Company)

REPORT AND FINANCIAL STATEMENTS

September 30, 2003, and 2002 

(Stated in US Dollars)

 

INDEPENDENT AUDITORS' REPORT 

To
  the Stockholders,

V
  G Tech, Inc.

We
  have audited the accompanying balance sheets of V G Tech, Inc. (A Development
  Stage Company) as of September 30, 2003 and 2002 and the related statements
  of operations, stockholders’ equity (deficit) and cash flows for each
  of the years in the three year period ended September 30, 2003 and for the period
  March 2, 2000 (Date of Incorporation) to September 30, 2003.  These financial
  statements are the responsibility of the Company's management.  Our responsibility
  is to express an opinion on these financial statements based on our audits.

We
  conducted our audits in accordance with auditing standards generally accepted
  in the United States of America.  Those standards require that we plan
  and perform an audit to obtain reasonable assurance about whether the financial
  statements are free of material misstatement.  An audit includes examining
  on a test basis, evidence supporting the amounts and disclosures in the financial
  statements.  An audit also includes assessing the accounting principles
  used and significant estimates made by management, as well as evaluating the
  overall financial statement presentation.  We believe that our audits provide
  a reasonable basis for our opinion. 

In
  our opinion, these financial statements referred to above present fairly, in
  all material respects, the financial position of V G Tech, Inc. as of September
  30, 2003 and 2002 and the results of its operations and its cash flows for each
  of the years in the three years ended September 30, 2003 and from March 2, 2000
  (Date of Incorporation) to September 30, 2003, in conformity with accounting
  principles generally accepted in the United States of America. 

The
  accompanying financial statements referred to above have been prepared assuming
  that the Company will continue as a going concern.  As discussed in Note
  1 to the financial statements, the Company is in the development stage, and
  has no established source of revenue and is dependent on its ability to raise
  capital from shareholders or other sources to sustain operations.  These
  factors, along with other matters as set forth in Note 1, raise substantial
  doubt that the Company will be able to continue as a going concern.  The
  financial statements do not include any adjustments that might result from the
  outcome of this uncertainty. 

	 Vancouver,
          Canada
	 “AMISANO HANSON”

	 October
          9, 2003
	 Chartered Accountants

 #

V G TECH, INC.

(A Development Stage Company)

BALANCE SHEETS

September 30, 2003 and 2002

(Stated in US Dollars)

	 ASSETS
	 2003
	 2002

	 Current
	 	 
	 Cash
	 $

        1,913
	 $

        -

	 Advances receivable – Notes 3 and 10
	 4,005
	 3,142

	 Capital
          assets – Note 4
	 8,101
	 5,021

	 	 	 
	 	 $

        14,019
	 $

        8,163

	 	 	 
	 LIABILITIES

	 Current
	 	 
	 Accounts
          payable and accrued liabilities
	 $

        16,000
	 $

        -

	 Loans
          payable – Note 5
	 39,340
	 -

	 	 	 
	 	 55,340
	 -

	 	 	 
	 STOCKHOLDERS’ EQUITY (DEFICIENCY)

	 Common stock, $0.001 par value
	 

        
	 

        

	 25,000,000
          shares authorized
	 

        
	 

        

	 17,515,000
          (2002:  17,477,000) shares issued and outstanding
	 17,516
	 17,478

	 Capital
          in excess of par value
	 75,429
	 74,707

	 Deficit
          accumulated during the development stage
	 (

        134,266)
	 (

        84,022)

	 	 	 
	 	 (

        41,321)
	 8,163

	 	 	 
	 	 $

        14,019
	 $

        8,163

	 	 	 

Nature
  and Continuance of Operations - Note 1

Commitment
  – Note 8

 

 #

SEE ACCOMPANYING NOTES

 

 

  V G TECH, INC.

  (A Development Stage Company)STATEMENTS OF OPERATIONS

for the years ended September 30, 2003, 2002 and 2001,

and for the period March 2, 2000 (Date of Incorporation) to September
  30, 2003

(Stated in US Dollars)

    

	 	 	 	 	 March 2, 2000

	 	 	 	 	 (Date of Incor-

	 	 	 	 	 poration) to

	 	 September 30,
	 September 30,

	 	 2003
	 2002
	 2001
	 2003

	 Revenue
	 	 	 	 
	 Sales
	 $

        4,423
	 $

        -
	 $

        -
	 $

        4,423

	 	 	 	 	 
	 Expenses
	 

        
	 

        
	 

        
	 

        

	 Accounting
          and auditing fees
	 14,701
	 -
	 480
	 15,361

	 Advertising
	 -
	 -
	 -
	 2,202

	 Amortization
	 1,510
	 1,441
	 1,882
	 5,898

	 Bank
          charges and interest
	 286
	 -
	 209
	 584

	 Consulting
          fees – Note 10
	 25,197
	 -
	 -
	 43,097

	 Legal
          fees
	 2,148
	 -
	 19,045
	 21,193

	 Management
          fees
	 -
	 -
	 7,111
	 7,558

	 Office
          and miscellaneous
	 1,835
	 -
	 3,694
	 8,087

	 Printing
	 608
	 -
	 1,455
	 3,291

	 Telephone
	 1,522
	 -
	 1,605
	 4,323

	 Transfer
          agent and filing fees
	 3,488
	 -
	 -
	 3,488

	 Travel
	 2,319
	 -
	 -
	 2,319

	 Website
          costs
	 220
	 -
	 6,670
	 20,455

	 	 	 	 	 
	 	 53,834
	 1,441
	 (

        42,151)
	 137,856

	 	 	 	 	 
	 Net
          loss before other item:
	 (

        49,411)
	 (

        1,441)
	 (

        42,151)
	 (

        133,433)

	 Other
          item:
	 

        
	 

        
	 

        
	 

        

	 Loss
          on disposal of capital asset
	 (

        833)
	 -
	 -
	 (

        833)

	 	 	 	 	 
	 Net
          loss for the period
	 $

        (

        50,244)
	 $

        (

        1,441)
	 $

        (

        42,151)
	 $

        (

        134,266)

	 	 	 	 	 
	 Basic
          loss per share
	 $

        (

        0.00)
	 $

        (

        0.00)
	 $

        (

        0.00)
	 
	 	 	 	 	 
	 Weighted
          average number of shares

         outstanding
          – Note 9
	 

        

        17,505,500
	 

        

        17,477,000
	 

        

        17,021,000
	 

        

 3

SEE ACCOMPANYING NOTES

 

  V G TECH, INC.

(A Development Stage Company)

STATEMENTS OF CASH FLOWS

for the years ended September 30, 2003, 2002 and 2001,

and for the period March 2, 2000 (Date of Incorporation) to September
  30, 2003

 (Stated in US Dollars)

  

	 	 	 	 	 March 2, 2000

	 	 	 	 	 (Date of Incor-

	 	 	 	 	 poration) to

	 	 September 30,
	 September 30,

	 	 2003
	 2002
	 2001
	 2003

	 Cash flows used in Operating Activities
	 	 	 	 
	 Net
          loss for the period
	 $

        (

        50,244)
	 $

        (

        1,441)
	 $

        (

        42,151)
	 $

        (

        134,266)

	 Add
          item not involving cash:
	 

        
	 

        
	 

        
	 

        

	 Amortization
	 1,510
	 1,441
	 1,882
	 5,898

	 Issuance
          of common stock for expenses
	 -
	 -
	 -
	 1,800

	 Loss
          on disposal of capital assets 
	 833
	 -
	 -
	 833

	 Changes
          in non-cash working capital items
	 

        
	 

        
	 

        
	 

        

	 Accounts payable and accrued liabilities
	 16,000
	 -
	 -
	 16,000

	 	 	 	 	 
	 	 (

        31,901)
	 -
	 (

        40,269)
	 (

        109,735)

	 	 	 	 	 
	 Cash
          flow used in  Investing Activities
	 

        
	 

        
	 

        
	 

        

	 Advances receivable
	 (

        863)
	 -
	 (

        1,424)
	 (

        4,005)

	 Acquisition
          of capital assets
	 (

        5,423)
	 -
	 -
	 (

        14,832)

	 	 	 	 	 
	 	 (

        6,286)
	 -
	 (

        1,424)
	 (

        18,837)

	 	 	 	 	 
	 Cash
          flow from Financing Activities
	 

        
	 

        
	 

        
	 

        

	 Issuance
          of common stock
	 760
	 -
	 39,480
	 91,145

	 Loans
          payable
	 39,340
	 -
	 -
	 39,340

	 	 	 	 	 
	 	 40,100
	 -
	 39,480
	 130,485

	 	 	 	 	 
	 Increase
          (decrease) in cash during the period
	 1,913
	 -
	 (

        2,213)
	 1,913

	 	 

        
	 

        
	 

        
	 

        

	 Cash,
          beginning of the period
	 -
	 -
	 2,213
	 -

	 	 	 	 	 
	 Cash
          end of the period
	 $

        1,913
	 $

        -
	 $

        -
	 $

        1,913

	 	 	 	 	 
	 Supplemental
          disclosure of 

          cash
          flow information
	 	 	 	 
	 Cash
          paid for:
	 

        
	 

        
	 

        
	 

        

	 Interest
	 $

        -
	 $

        -
	 $

        -
	 $

        -

	 	 	 	 	 
	 Income
          taxes
	 $

        -
	 $

        -
	 $

        -
	 $

        -

	 	 	 	 	 

 4

SEE ACCOMPANYING NOTES

 

V G TECH, INC.

(A Development Stage Company)

STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

for the period March 2, 2000 (Date of Incorporation) to September
  30, 2003 

(Stated in US Dollars)

	 	 	 	 	 Deficit
	 
	 	 	 	 	 Accumulated
	 
	 	 	 	 Capital
          in
	 During
          the
	 
	 	 Common Stock
	 Excess
          of
	 Development
	 
	 	 Number*
	 Par
          Value
	 Par
          Value
	 Stage
	 Total

	 Capital
          stock issued
	 	 	 	 	 
	 For
          services  –  at $0.002
	 9,000,000
	 $

        9,000
	 $

        (

        7,200)
	 $

        -
	 $

        1,800

	 For
          cash  –  at $0.01
	 5,090,500
	 5,091
	 45,814
	 -
	 50,905

	 Net
          loss for the period
	 -
	 -
	 -
	 (

        40,430)
	 (

        40,430)

	 	 	 	 	 	 
	 Balance,
          September 30, 2000
	 14,090,500
	 14,091
	 38,614
	 (

        40,430)
	 12,275

	 Capital
          stock issued 
	 

        
	 

        
	 

        
	 

        
	 

        

	 For
          cash  –  at $0.01
	 2,825,000
	 2,825
	 25,425
	 -
	 28,250

	                 –
          at $0.02
	 561,500
	 562
	 10,668
	 -
	 11,230

	 Net
          loss for the period
	 -
	 -
	 -
	 (

        42,151)
	 (

        42,151)

	 	 	 	 	 	 
	 Balance, September 30, 2001
	 17,477,000
	 17,478
	 74,707
	 (

        82,581)
	 9,604

	 Net
          loss for the period
	 -
	 -
	 -
	 (

        1,441)
	 (

        1,441)

	 	 	 	 	 	 
	 Balance,
          September 30, 2002
	 17,477,000
	 17,478
	 74,707
	 (

        84,022)
	 8,163

	 Capital
          stock issued
	 

        
	 

        
	 

        
	 

        
	 

        

	 For
          cash  –  at $0.02
	 38,000
	 38
	 722
	 -
	 760

	 Net
          loss for the period 
	 -
	 -
	 -
	 (

        50,244)
	 (

        50,244)

	 	 	 	 	 	 
	 Balance,
          September 30, 2003
	 17,515,000
	 $

        17,516
	 $

        75,429
	 $

        (

        134,266)
	 $

        (

        41,321)

	 	 	 	 	 	 

*

The
  number of shares issued and outstanding and the allocation between par value
  and capital in excess of par value has been restated to give retroactive effect
  for a forward stock split on a five for one basis approved by the sole officer
  and director on January 2, 2003.

 5

SEE ACCOMPANYING NOTES

  

V G TECH, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

September 30, 2003 and 2002

(Stated in US Dollars)

Note
  1

Nature
  and Continuance of Operations

The
  Company is in the development stage and is in the business of developing high
  end computer generated 3D digital illustrations and special effects for various
  industries.

These
  financial statements have been prepared on a going concern basis.  The
  Company has accumulated a deficit of $134,266 since inception and has a working
  capital deficiency of $53,427 at September 30, 2003.  Its ability to continue
  as a going concern is dependent upon the ability of the Company to generate
  profitable operations in the future and/or to obtain the necessary financing
  to meet its obligations and repay its liabilities arising from normal business
  operations when they come due.  

The
  Company’s current working capital is not sufficient to support current
  commitments and operations and planned expansion for the next twelve months.
  The Company estimates that it will require approximately $130,000 to fund its
  operations and business plan for the next twelve months and may require an additional
  $70,000 to purchase certain capital assets if the current consulting agreement
  is discontinued. The Company’s services require further development and
  accordingly current sales are limited. The Company currently has no formal financing
  arrangements in place and can provide no assurance that additional funding will
  be available on acceptable terms to the Company.  

The
  Company plans to obtain additional financing by loans from its director and
  president however there is no guarantee that additional funds will be loaned.
  The Company may also solicit loans from other non-affiliated individuals however
  there is no assurance that such loans can be negotiated or that such financing
  will be available on terms favourable to the Company. The Company may also obtain
  additional financing by the sale of its common stock, however the Company is
  not publicly listed nor is its stock currently quoted or traded and currently
  there are no plans for the sale of common stock. The Company’s services
  require further development and there can be no assurance that it will be successful
  in selling its services. During the subsequent year, the cost of developing
  services for sale is likely to exceed their sale proceeds.

The
  Company was incorporated in the State of Nevada, in the United States of America
  on March 2, 2000.

Note
  2

Summary
  of Significant Accounting Policies

The
  financial statements of the Company have been prepared in accordance with accounting
  principles generally accepted in the United States of America.  Because
  a precise determination of many assets and liabilities is dependent upon future
  events, the preparation of financial statements for a period necessarily involves
  the use of estimates which have been made using careful judgement.  Actual
  results may vary from these estimates.

 #

 

 

V G Tech, Inc.

(A Development Stage
  Company)

Notes to the Financial
  Statements

September 30, 2003 and 2002

(Stated
  in US Dollars) – Page #

  

Note
  2

Summary
  of Significant Accounting Policies – (cont’d)

The
  financial statements have, in management’s opinion, been properly prepared
  within reasonable limits of materiality and within the framework of the significant
  accounting policies summarized below:

Development Stage

The Company is a development stage company as defined in Statement
  of Financial Accounting Standards No. 7 as it is devoting substantially all
  of its efforts to establish a new business and planned principal operations
  have not commenced.  

Capital
  Assets and Amortization

Capital assets are recorded at cost.  The Company provides
  for amortization using the declining balance method at the following annual
  rates:

Furniture and fixtures

20%

Computer equipment

30%

Income
  Taxes

The
  Company follows Statement of Financial Accounting Standards No. 109, “Accounting
  for Income Taxes” (“FAS 109”) which requires the use of the
  asset and liability method of accounting of income taxes. Under the assets and
  liability method of FAS 109, deferred tax assets and liabilities are recognized
  for future tax consequences attributable to temporary differences between the
  financial statements carrying amounts of existing assets and liabilities and
  loss carry forwards and their respective tax bases. Deferred tax assets and
  liabilities are measured using enacted tax rates expected to apply to taxable
  income in the year in which those temporary differences are expected to be recovered
  or settled.

Basic
  Loss Per Share

The
  Company reports basic loss per share in accordance with the Statement of Financial
  Accounting Standards No. 128, “Earnings Per Share”.  Basic
  loss per share is computed using the weighted average number of shares outstanding
  during the period.  

Financial
  Instruments

The
  carrying value of the Company’s financial instruments, consisting of cash
  and  accounts payable and accrued liabilities approximate their fair value
  due to the short maturity of such instruments.  Advances and loans payable
  also approximates their fair value.  Unless otherwise noted, it is management’s
  opinion that the Company is not exposed to significant interest, currency or
  credit risks arising from these financial instruments.

 #

V G Tech, Inc.

(A Development Stage
  Company)

Notes to the Financial
  Statements

September 30, 2003 and 2002

(Stated
  in US Dollars) – Page #

Note
  2

Summary
  of Significant Accounting Policies – (cont’d) 

Revenue
  Recognition

Revenue
  from services provided for the development of 3D digital illustration is recognized
  when services have been provided on a completed contract basis, no significant
  obligations remain to be performed and collection is reasonably assured.

Website
  Maintenance

Website
  maintenance costs are expensed as incurred.

Foreign
  Currency Translation

The
  Company uses Canadian dollars as its functional currency and US dollars as its
  reporting currency.  Current assets and liabilities are translated at the
  exchange rate in effect at the date of the balance sheet. Capital assets, stockholders’
  equity, revenues and expenses are translated at the exchange rates in effect
  at the date of the transaction.  Any gains or losses arising as a result
  of such translations are not included in operations but are reported as a separate
  component of equity for cumulative translation adjustments.

New
  Accounting Standards

Management
  does not believe that any recently issued but not effective accounting standards
  if currently adapted could have a material affect on the accompanying financial
  statements.

Note
  3

Advances
  Receivable – Note 10

Advances
  are due from a consultant to the Company.  This amount is unsecured, non-interest
  bearing and has no specific terms for repayment.

Note
  4

Capital
  Assets

	 	 

        
	 2003
	 	 	 2002

	 	 	 Accumulated
	 	 	 
	 	 Cost
	 Amortization
	 Net
	 	 Net

	 Furniture and fixtures
	 $

        9,969
	 $

        3,991
	 $

        5,978
	 	 $

        3,980

	 Computer
          equipment
	 2,363
	 240
	 2,123
	 

        
	 1,041

	 	 	 	 	 	 
	 	 $

        12,332
	 $

        4,231
	 $

        8,101
	 	 $

        5,021

	 	 	 	 	 	 

 #

V G Tech, Inc.

(A Development Stage
  Company)

Notes to the Financial
  Statements

September 30, 2003 and 2002

(Stated
  in US Dollars) – Page #

Note
  5

Loans
  Payable

Loans
  payable are unsecured, non-interest bearing and have no specific terms for repayment.
   Included in loans payable at September 30, 2003 is $22,340 due to the
  director of the Company.

Note 6

Deferred Tax Assets

The
  following table summarizes the significant components of the Company’s
  deferred tax assets:

	 	 Total

	 Deferred
          Tax Assets
	 
	 Non-capital
          losses carryforward
	 $

        35,614

	 Valuation
          allowance for deferred tax asset
	 (

        35,614)

	 	 
	 	 $

        -

	 	 

The
  amount taken into income as deferred tax assets must reflect that portion of
  the income tax loss carryforwards that is likely to be realized from future
  operations.  The Company has chosen to provide an allowance of 100% against
  all available income tax loss carryforwards, regardless of their time of expiry.

Note
  7

Income
  Taxes

No
  provision for income taxes has been provided in these financial statements due
  to the net loss.  At September 30, 2003 the Company has net operating loss
  carryforwards, which expire commencing in 2022, totalling approximately $128,368,
  the benefit of which has not been recorded in the financial statements.

Note
  8

Commitment

By
  a service agreement dated November 1, 2002, the Company agreed to pay $2,000
  per month until November 30, 2003 to a graphic designer for consulting services.

Note
  9

Share
  Capital

Pursuant
  to a directors resolution dated January 2, 2003 and effective on that date,
  the Company declared a forward stock split and increased its issued common stock
  on a five for one basis.  The number of shares and allocation between par
  value of capital in excess of value referred to in these financial statements
  has been restated wherever applicable to give retroactive effect on the forward
  stock split.

 #

V G Tech, Inc.

(A Development Stage
  Company)

Notes to the Financial
  Statements

September 30, 2003 and 2002

(Stated
  in US Dollars) – Page #

  

Note
  10

Related
  Party Transactions – Note 5

During
  the years ended September 30, 2003, 2002 and 2001, and the period from March
  2, 2000 (Date of Incorporation) to September 30, 2003, the Company incurred
  the following transactions with a director of the Company:

	 	 	 	 	 (Audited)

	 	 	 	 	 March 2, 2000

	 	 	 	 	 (Date of Incor-

	 	 	 	 	 poration) to

	 	 Year ended September30,
	 September 30,

	 	 2003
	 2002
	 2001
	 2003

	 Consulting
          fees
	 $

        -
	 $

        -
	 $

        -
	 $

        1,800

	 	 	 	 	 

This
  charge was measured by the exchange amount, which is the amount agreed upon
  by the transacting parties.

At
  September 30, 2002, the amount of the Advances receivable of $3,142, was due
  from the director of the Company. This amount was unsecured, non-interest bearing
  and had no specific terms for repayment.

Note
  11

Economic
  Dependence

The
  Company received 100% of its sales revenue from one customer.

 #

 

   

  V G TECH, INC.

(A
  Development Stage Company)

INTERIM
  FINANCIAL STATEMENTS 

June
  30, 2004

(Unaudited)

(Stated
  in US Dollars)

V
  G TECH, INC.

(A
  Development Stage Company)

INTERIM
  BALANCE SHEETS

June
  30, 2004 and September 30, 2003

(Unaudited)

(Stated
  in US Dollars)

	 	June
        30,
	September
        30,

	ASSETS
	2004
	2003

	Current
        Assets
	 	 
	Cash
	$

      2,523
	$

      1,913

	 	 	 
	Advances
        receivable
	-
	4,005

	Capital
        assets
	6,727
	8,101

	 	 	 
	 	$

      9,250
	$

      14,019

	 	 	 
	LIABILITIES

	Current
        Liabilities
	

      
	

      

	Accounts
        payable and accrued liabilities
	$

      16,621
	$

      16,000

	Loans
        payable – Note 4
	56,835
	39,340

	 	 	 
	 	73,456
	55,340

	 	 	 
	STOCKHOLDERS’
        DEFICIENCY

	Common
        stock, $0.001 par value
	

      
	

      

	25,000,000
        shares authorized 

      17,477,000
        (September 30, 2003:  17,515,000) shares issued

      and
        outstanding
	17,478
	17,516

	Capital
        in excess of par value
	74,707
	75,429

	Deficit
        accumulated during the development stage
	(

      156,391)
	(

      134,266)

	 	 	 
	 	(

      64,206)
	(

      41,321)

	 	 	 
	 	$

      9,250
	$

      14,019

	 	 	 

  

SEE ACCOMPANYING
  NOTES

 

V
  G TECH, INC.

(A
  Development Stage Company)

INTERIM
  STATEMENTS OF OPERATIONS

for
  the three and nine month periods ended June 30, 2004 and 2003

and
  for the period March 2, 2000 (Date of Incorporation) to June 30, 2004

(Unaudited)

(Stated
  in US Dollars)

	 	 	 	 	 	March
        2, 2000

	 	 	 	 	 	(Date
        of Incor-

	 	Three
        months ended
	Nine
        months ended
	poration)
        to

	 	June
        30,
	June
        30,
	June
        30, 

	 	2004
	2003
	2004
	2003
	2004

	Revenue
	 	 	 	 	 
	Sales
	$

      -
	$

      -
	$

      -
	$

      1,273
	$

      4,423

	 	 	 	 	 	 
	Expenses
	

      
	

      
	

      
	

      
	

      

	Accounting
        and audit fees
	1,791
	3,360
	5,895
	11,239
	21,256

	Advertising
	-
	-
	165
	-
	2,367

	Amortization
	458
	453
	1,374
	1,007
	7,272

	Bank
        charges and interest
	-
	31
	70
	114
	654

	Consulting
        fees – Note 3
	3,000
	6,470
	7,625
	19,196
	50,722

	Legal
        fees
	-
	315
	1,884
	315
	23,077

	Management
        fees
	-
	-
	-
	-
	7,558

	Office
        and miscellaneous
	-
	1,126
	1,078
	2,584
	9,165

	Printing
	-
	608
	658
	608
	3,949

	Telephone
	202
	654
	1,039
	982
	5,362

	Transfer
        agent and filing

       fees
	618
	-
	2,337
	-
	5,825

	Travel
	-
	-
	-
	220
	2,319

	Website
        costs
	-
	-
	-
	1,170
	20,455

	 	 	 	 	 	 
	 	6,069
	13,017
	22,125
	37,435
	159,981

	 	 	 	 	 	 
	Loss
        before other item
	(

      6,069)
	(

      13,017)
	(

      22,125)
	(

      36,162)
	(

      155,558)

	Other
        item:
	 	 	 	 	 
	Loss
        on disposal of capital  assets
	-
	-
	-
	-
	(

      833)

	 	 	 	 	 	 
	Net
        loss for the period
	$

      (

      6,069)
	$

      (

      13,017)
	$

      (

      22,125)
	$

      (

      36,162)
	$

      (

      156,391)

	 	 	 	 	 	 
	Basic
        loss per share
	$

      (

      0.00)
	$

      (

      0.00)
	$

      (

      0.00)
	$

      (

      0.00)
	 
	 	 	 	 	 	 
	Weighted
        average number of shares outstanding
	17,477,000
	17,515,000
	17,495,584
	17,502,333
	

      

	 	 	 	 	 	 

V
  G TECH, INC.

(A
  Development Stage Company)

INTERIM
  STATEMENTS OF CASH FLOWS

for
  the nine month period ended June 30, 2004 and 2003

and
  for the period March 2, 2000 (Date of Incorporation) to June 30, 2004

(Unaudited)

(Stated
  in US Dollars)

	 	 	 	March
        2, 2000

	 	 	 	(Date
        of Incor-

	 	Nine
        months ended
	poration)
        to

	 	June
        30, 
	June
        30, 

	 	2004
	2003
	2004

	Cash
        flows from operating activities
	 	 	 
	Net
        loss for the period
	$

      (

      22,125)
	$

      (

      36,162)
	$

      (

      156,391)

	Add
        items not involving cash:
	

      
	

      
	

      

	Amortization
	1,374
	1,007
	7,272

	Issuance
        of common stock for expenses
	-
	-
	1,800

	Loss
        on disposal of capital assets
	-
	-
	833

	Changes
        in non-cash working capital items:
	

      
	

      
	

      

	Accounts
        payable and accrued liabilities
	621
	11,300
	16,621

	 	 	 	 
	 	(

      20,130)
	(

      23,855)
	(

      129,865)

	 	 	 	 
	Cash
        flows from (used in) Investing Activities
	

      
	

      
	

      

	Advances
        from related parties
	4,005
	-
	-

	Acquisition
        of capital assets
	-
	(

      5,423)
	(

      14,832)

	 	 	 	 
	 	4,005
	(

      5,423)
	(

      14,832)

	 	 	 	 
	Cash
        flows from Financing Activities
	

      
	

      
	

      

	Issuance
        of capital stock
	

      
	760
	91,145

	Cancellation
        of capital stock
	(

      760)
	-
	(

      760)

	Repayment
        of advances from a related party
	-
	3,142
	-

	Advances
        from a related party
	-
	8,740
	-

	Loans
        payable
	17,495
	17,000
	56,835

	 	 	 	 
	 	16,735
	29,642
	147,220

	 	 	 	 
	Net
        increase in cash during the period
	610
	364
	2,523

	 	

      
	

      
	

      

	Cash
        at beginning of the period
	1,913
	-
	-

	 	 	 	 
	Cash
        at end of the period
	$

      2,523
	$

      364
	$

      2,523

	 	 	 	 
	Supplemental
        disclosure of cash flow information:
	 	 	 
	Cash
        paid for:
	 	 	 
	Interest
	$

      -
	$

      -
	$

      -

	 	 	 	 
	Income
        taxes
	$

      -
	$

      -
	$

      -

	 	 	 	 

V
  G TECH, INC.

(A
  Development Stage Company)

STATEMENTS
  OF STOCKHOLDERS’ EQUITY (DEFICIT)

for
  the period March 2, 2000 (Date of Incorporation) to June 30, 2004

 (Unaudited)

(Stated
  in US Dollars)

	 	 	 	 	Deficit
	 
	 	 	 	 	Accumulated
	 
	 	 	 	Capital
        in
	During
        the
	 
	 	Common
        Stock
	Excess
        of
	Development
	 
	 	Number*
	Par
        Value
	Par
        Value
	Stage
	Total

	Capital
        stock issued
	 	 	 	 	 
	For
        services

      –
        at $0.002
	9,000,000
	$

      9,000
	$

      (

      7,200)
	$

      -
	$

      1,800

	For
        cash

      –
        at $0.01
	5,090,500
	5,091
	45,814
	-
	50,905

	Net
        loss for the period
	-
	-
	-
	(

      40,430)
	(

      40,430)

	 	 	 	 	 	 
	Balance,
        September 30, 2000
	14,090,500
	14,091
	38,614
	(

      40,430)
	12,275

	Capital
        stock issued 
	

      
	

      
	

      
	

      
	

      

	For
        cash

      –
        at $0.01
	2,825,000
	2,825
	25,425
	-
	28,250

	–
        at $0.02
	561,500
	562
	10,668
	-
	11,230

	Net
        loss for the period
	-
	-
	-
	(

      42,151)
	(

      42,151)

	 	 	 	 	 	 
	Balance,
        September 30, 2001
	17,477,000
	17,478
	74,707
	(

      82,581)
	9,604

	Net
        loss for the period
	-
	-
	-
	(

      1,441)
	(

      1,441)

	 	 	 	 	 	 
	Balance,
        September 30, 2002
	17,477,000
	17,478
	74,707
	(

      84,022)
	8,163

	Capital
        stock issued
	

      
	

      
	

      
	

      
	

      

	For
        cash

      –
        at $0.02
	38,000
	38
	722
	-
	760

	Net
        loss for the period 
	-
	-
	-
	(

      50,244)
	(

      50,244)

	 	 	 	 	 	 
	Balance,
        September 30, 2003
	17,515,000
	17,516
	75,429
	(

      134,266)
	(

      41,321)

	Capital
        stock cancelled
	(

      38,000)
	(

      38)
	(

      722)
	-
	(

      760)

	Net
        loss for the period
	-
	-
	-
	(

      22,125)
	(

      22,125)

	 	 	 	 	 	 
	Balance,
        June 30, 2004
	17,477,000
	$

      17,478
	$

      74,707
	$

      (

      156,391)
	$

      (

      64,206)

	 	 	 	 	 	 

*

The
  number of shares issued and outstanding and the allocation between par value
  and capital in excess of par value has been restated to give retroactive effect
  for a forward stock split on a five for one basis approved by the sole officer
  and director on January 2, 2003.

V
  G TECH, INC.

(A
  Development Stage Company)

NOTES
  TO THE FINANCIAL STATEMENTS

June
  30, 2004

(Unaudited)

(Stated
  in US Dollars)

Note
  1

Interim
  Financial Statements 

While
  the information presented in the accompanying interim financial statements is
  unaudited, it includes all adjustments which are, in the opinion of management,
  necessary to present fairly the financial position, results of operations and
  cash flows for the interim period presented.  All adjustments are of a
  normal recurring nature.  It is suggested that these interim financial
  statements be read in conjunction with the Company’s September 30, 2003
  annual financial statements.

Note
  2

Continuance
  of Operations

The
  financial statements have been prepared using generally accepted accounting
  principles in the United States of America applicable for a going concern which
  assumes that the Company will realize its assets and discharge its liabilities
  in the ordinary course of business.  At June 30, 2004, the Company has
  a working capital deficiency of $70,933 and has accumulated losses of $156,391
  since its commencement.  Its ability to continue as a going concern is
  dependent upon the ability of the Company to obtain the necessary financing
  to meet its obligations and pay its liabilities arising from normal business
  operations when they come due.

Note
  3

Related
  Party Transactions – Note 4 

During
  the interim periods, the Company incurred the following expense charged by the
  director of the Company:

	 	 	 	March
        2, 2000

	 	 	 	(Date
        of Incor-

	 	Nine
        months ended
	poration)
        to

	 	June
        30,
	June
        30,

	 	2004
	2003
	2004

	Consulting
        fees
	$

      -
	$

      -
	$

      1,800

	 	 	 	 

This
  expenditure was measured by the exchange amount, which is the amount agreed
  upon by the transacting parties.

Note
  4

Loans
  Payable

The
  loans payable are unsecured, non-interest bearing and have no specific terms
  for repayment.  Included in loans payable at June 30, 2004 is $35,836 (September
  30, 2003:  $22,340) due to the director of the Company.

SCHEDULE "B" 

      to that Share Purchase Agreement
  

  dated for reference as of the 3rd day of September, 2004 

 

 

COMPANY FINANCIAL STATEMENTS 

AQUA SOCIETY GMBH

  FRIEDBERG

 

Financial Statements

  (US GAAP)

 

  BDO Deutsche Warentreuhand Aktiengesellschaft

  Wirtschaftsprüfungsgesellschaft

 

ha

41/2004/6

CONTENTS

	  	 Page
	 	 
	 Report of Independent Registered Public Accounting Firm	1
	 	 
	 Balance Sheets as of July 31, 2004 and May 13, 2004	2
	 	 
	 Statement of Operations for the Period from inception to July
      31, 2004	3
	 	 
	 Statement of Stockholders' Equity for the Period from inception
      to July 31, 2004	4
	 	 
	 Statement of Cash Flows	5
	 	 
	 Notes to Audited Financial Statements	6

 

   

   

   

   

   

   

   

 SCHEDULE "C" 

 to that Share Purchase Agreement 

  dated for reference as of the 3rd day of September, 2004 

 

 

 EMPLOYMENT, SERVICE & PENSION AGREEMENTS OF THE COMPANY
  

 None.

SCHEDULE "D" 

      to that Share Purchase Agreement
  

  dated for reference as of the 3rd day of September, 2004 

 

 

REAL PROPERTY & LEASES OF THE COMPANY 

None.

SCHEDULE "E" 

      to that Share Purchase Agreement

  dated for reference as of the 3rd day of September, 2004 

 

 

ENCUMBRANCES ON THE COMPANY'S ASSETS 

None. 

SCHEDULE "F" 

      to that Share Purchase Agreement
  

  dated for reference as of the 3rd day of September, 2004 

  

 

COMPANY LITIGATION 

None. 

SCHEDULE "G" 

      to that Share Purchase Agreement
  

  dated for reference as of the 3rd day of September, 2004 

  

 

PURCHASER LITIGATION 

    None.

SCHEDULE "H" 

      to that Share Purchase Agreement
  

  dated for reference as of the 3rd day of September, 2004 

 

 REGISTERED TRADEMARKS, TRADE NAMES & PATENTS OF THE
  COMPANY 

	 	Description
	German Patent Application No. 101 29 047.0	Fully sintered heat exchangers in all possible geometric forms for all
      application purposes.
	German Publication No. DE 102 23 578 A 1
	Device for the production of water for industrial/domestic use
	International Publication No. WO 01/753181 A3
	Transportable Cool Box System Technology
	International Publication No. WO 01/753181 A2
	Transportable Cool Box System Technology

SCHEDULE "I" 

      to that Share Purchase Agreement
  

  dated for reference as of the 3rd day of September, 2004 

  

 

FORM OF PURCHASER WARRANTS 

 "THE SPECIAL WARRANTS REPRESENTED BY THIS CERTIFICATE AND
  THE SECURITIES TO BE ISSUED UPON THE EXERCISE OF THESE SPECIAL WARRANTS HAVE
  NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND HAVE BEEN
  ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
  ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT. THESE SPECIAL WARRANTS
  MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE
  WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION UNDER
  THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT.
  HEDGING TRANSACTIONS INVOLVING THESE SPECIAL WARRANTS OR THE SECURITIES TO BE
  ISSUED UPON EXERCISE OF THESE SPECIAL WARRANTS MAY NOT BE CONDUCTED UNLESS IN
  COMPLIANCE WITH THE ACT. THE SPECIAL WARRANTS REPRESENTED BY THIS CERTIFICATE
  MAY NOT BE EXERCISED BY OR ON BEHALF OF ANY U.S. PERSON AS THAT TERM IS DEFINED
  BY REGULATION S UNLESS REGISTERED UNDER THE ACT OR AN EXEMPTION TO REGISTRATION
  IS AVAILABLE." 

	 SPECIAL WARRANT 
 CERTIFICATE NO. 
    	

        ________________________SPECIAL WARRANTS entitling the holder to acquire,
        subject to adjustment, one share in the common stock of V G Tech, Inc.
        for each Special Warrant represented hereby.

  SPECIAL WARRANT CERTIFICATE 

 V G TECH, INC. 

  (Incorporated under the laws of Nevada) 

 THIS IS TO CERTIFY THAT, for value received, 

 

 (the "Holder") is entitled, without any further payment therefor,
  to acquire in the manner and subject to the restrictions and adjustments set
  forth herein, during the Exercise Period (as defined below) and without the
  payment of any consideration, one fully paid and non-assessable share (a "Common
  Share") in the common stock of V G Tech, Inc. (the "Corporation") for each Special
  Warrant represented hereby.

 "Exercise Period" means the period commencing on the date
  (the "Triggering Date") upon which the Corporation is authorized to issue at
  least 200,000,000 shares in the common stock of the Corporation and ending at
  4:00 p.m. (Pacific Standard time) on the tenth business day after the Triggering
  Date (the "Termination Date"). 

The right to acquire Common Shares may only be exercised within the Exercise Period by the Holder: 

	 	 i)      	 duly completing and executing the Exercise Form
        attached hereto; and 

	 	 	 
	 	 ii)      	 surrendering this special warrant certificate to
        the offices of the Corporation at 4676 West 6 th Avenue, Suite A, Vancouver,
        British Columbia, Canada, V6K 1V7. 

 This special warrant certificate shall be effectively surrendered
  (unless deemed to be surrendered) only upon personal delivery hereof or, if
  sent by mail or other means of transmission, upon actual receipt thereof by
  the Corporation. 

 - 29 - 

 Any Special Warrants not exercised immediately prior to the
  expiry of the Exercise Period shall be deemed to be exercised and this special
  warrant certificate deemed to be surrendered without any further act by the
  Holder and the Common Shares to which the Holder is entitled shall be issued
  in the name of the Holder, effective on the first business day after the Termination
  Date. 

 Upon surrender (or deemed surrender) of this special warrant
  certificate, the person in whose name the Common Shares are issued shall be
  deemed for all purposes to be the holder of record of such Common Shares. The
  Corporation will cause certificates representing such Common Shares to be forthwith
  mailed by registered mail to such person at the address set out on this special
  warrant certificate or as specified in the Exercise Form. 

 If this special warrant certificate is mutilated, lost, destroyed
  or stolen the Corporation shall issue and deliver a new certificate representing
  the same number of Special Warrants as this certificate in lieu of and in substitution
  for such mutilated, lost, destroyed or stolen certificate. The applicant for
  the issue of the new special warrant certificate shall bear the costs of the
  issue thereof and shall furnish the Corporation with such evidence of ownership
  and of the loss, destruction or theft of the certificate and with such indemnity
  and surety bond as the Corporation may require. 

 Upon any alteration of the Common Shares, including any subdivision,
  consolidation or reclassification, and upon any form of reorganization of the
  Corporation, including any amalgamation, merger or arrangement, the Holder,
  upon exercise of the Special Warrants following the occurrence of any of those
  events, shall be entitled to receive the same number and kind of securities
  that it would have been entitled to receive had it exercised its Special Warrants
  immediately prior to the occurrence of those events.

 The holding of the Special Warrants evidenced by this certificate
  shall not constitute the Holder a shareholder of the Corporation or entitle
  the Holder to any right or interest in respect thereof except as expressly provided
  in this certificate. 

 The Special Warrants evidenced by this certificate are not
  transferable. 

 Time shall be of the essence hereof. 

 IN WITNESS WHEREOF the Corporation has caused this
  special warrant certificate to be signed by its duly authorized officer as of
  9th day of September, 2004.

	 	 V G TECH, INC.  
	 	 	  
	 	 	  
	 	By:  	  
	 	 	 Authorized Signatory  

EXERCISE FORM 

	 TO:  	 V G Tech, Inc. (the "Corporation") 
    
	  	4676 West 6 th Avenue, Suite A 
	  	 Vancouver, British Columbia, V6K 1V7  

 The undersigned hereby exercises the right to acquire ________________________________
  shares (the "Common Shares") in the common stock of the Corporation as provided
  in the special warrant certificate surrendered herewith according to the conditions
  thereof. 

 The certificates for the Common Shares are to be issued as
  follows:

	 	NAME:  	  	  
	 	 	           (please
      print)  	  
	 	 	  	 
	 	ADDRESS: 	  	  
		 	 	  

               
  Note: If further certificates required, please attach (and initial) schedule
  giving these particulars. 

 DATED this ________day of ______________________________________, _______________.

  

	 Signature Guaranteed  	  Signature of Special Warrant Holder 
    
	 (see Instruction no. 2)  	  
	 	  
	  	 Name (please print)  

Instructions 

	 1.      	 The registered special warrant holder may exercise
        its right to acquire Common Shares by completing this form and surrendering
        it and the special warrant certificate representing the Special Warrants
        being exercised to the Corporation at the address set out above. Certificates
        for Common Shares will be made available for pick-up or mailed by registered
        mail forthwith after the exercise of the Special Warrants. 

	 
	 2.      	 If the Exercise Form indicates that Common Shares
        are to be issued to a person or persons other than the registered holder
        of the special warrant certificate, the signature of such holder on the
        Exercise Form must be guaranteed by an authorized officer of a chartered
        bank, trust company or an investment dealer who is a member of a recognized
        stock exchange. 

	 
	 3.      	 If the Exercise Form is signed by a trustee, executor,
        administrator, curator, guardian, attorney, officer of a corporation or
        any person acting in a judiciary or representative capacity, it must be
        accompanied by evidence of authority to sign satisfactory to the Corporation.

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