Document:

ex1030form8k061711.htm

  

  

  

SALE AND PURCHASE AGREEMENT

This Agreement for sale and purchase together with the Exhibits A to E attached hereto, hereinafter referred to as "Contract" or "Agreement", is executed this 17th day of June, 2011, by and between, A. Sudhish M. P. Anandan of 18, SSS1/43, Kampung Tunku, 47300 Petaling Jaya, Selangor D.E, Malaysia, Kam Chong Heng of 18, SSS1/39, Kampung Tunku, 47300 Petaling Jaya, Selangor D.E, Malaysia and Thanabalasingam S. Manickam of No 21, Jalan U6/2B, Desa Subang Permai, 40150 Shah Alam, Selangor D.E, Malaysia, hereinafter collectively referred to as "Seller", and Intelligent Communication Enterprise Corporation Inc., a company incorporated in Pennsylvania, USA, Corporation, and whose registered office is 1515 Market Street, Suite 1210, Philadelphia, PA 19102, United States of America, hereinafter referred to as "Buyer"

Seller or Buyer is referred to individually as “Party” and Buyer and Seller collectively are referred to as “the Parties” in this Agreement.

WITNESSETH:

WHEREAS, Seller is the beneficial owner of all shares (hereinafter referred to as “the Shares”), of i-amtv Limited, a company incorporated in Brunei Darussalam, whose registered office is at Room 51, 5th Floor, Brittania House, Jalan Cator, Bandar Seri Begawan BS8811, Negara Brunei Darussalam (and its subsidiary companies), hereinafter referred to as the "Company"; and

WHEREAS, during the twelve months prior to this Agreement the Seller has held senior executive positions within the Company and is considered to be aware of all material facts about the Company; and

WHEREAS, Buyer is desirous of acquiring a percentage of the Shares and Seller is desirous of selling those Shares to Buyer;

NOW, THEREFORE, for and in consideration of the mutual covenants and promises hereinafter contained, the Seller agrees to sell and the Buyer agrees to buy the Shares upon the following terms and conditions.

1.  PURCHASE PRICE AND METHOD OF PAYMENT.  Buyer shall pay and Seller shall accept the Purchase Price for the Shares in the manner of payment set forth in Exhibit "B" attached hereto and made a part hereof.

2.  EFFECTIVE DATE AND CLOSING.  This Agreement is effective and binding on the Parties on 18th day of June, 2011 (the “Effective Date”), with the closing of the transactions contemplated by this Agreement, to be 1st July 2011, and hereinafter referred to as the “Closing Date, in Kuala Lumpur as the Parties hereto may agree.

	
Intelligent Communication Enterprise Corporation Inc.

	
Sale And Purchase Agreement

	
Strictly Confidential

	
17 June 2011

	
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3.  REPRESENTATIONS AND WARRANTIES OF SELLER.  Seller represents and warrants to Buyer the correctness, truthfulness and accuracy of the matters shown on Exhibit "C" attached hereto, all of which shall survive closing.  In addition, Seller represents and warrants to Buyer that the documents enumerated in Exhibit "D" attached hereto and made a part hereof, are true, authentic and correct copies of the original, or, if appropriate, the originals themselves, and no alterations or modifications thereof have been made.

4.  TRANSACTIONS PRIOR TO CLOSING.  Seller hereby covenants the following:

a. Conduct of Seller's Business Until Closing.  Except as Buyer may otherwise consent in writing prior to the Closing Date, Seller will not enter into any transaction, take any action or fail to take any action which would result in, or could reasonably be expected to result in or cause any of the representations and warranties of Seller contained in this Agreement to be void, invalid or false on the Closing Date.

b. Resignations.  Seller shall deliver to Buyer prior to the Closing Date, such resignations of officers or employees of the business as Buyer shall indicate, each such resignation to be effective on the Closing Date.

c. Satisfactions.  Seller shall deliver to Buyer on the Closing Date a satisfaction of any encumbrance or lien on the Shares satisfactory in form and substance to the Buyer indicating that the then outstanding unpaid principal balance of any promissory note secured thereby has been paid in full prior to or simultaneously with the closing.

d. Advice of Changes and Claims.  Between the date hereof and the Closing Date, Seller will promptly advise Buyer in writing of any fact including but not limited to any impending legal action, threat of legal action or other claims whatsoever which, if existing or known at the date hereof, that would adversely affect the value of the Shares would have been required to be set forth herein or disclosed pursuant to this Agreement.

e. Documents.  Seller shall deliver to Buyer at closing such documents which are, in Buyer's sole discretion, necessary to fully satisfy the objectives of this Agreement in content and form reasonably intended to do so.

5.           SELLER’S OBLIGATIONS TO THE COMPANY.

a. The Seller will continue to work and deliver all of the services they have been providing, prior to the closing, to and/or on behalf of the company in good faith for a period of not less than thirty-six (36) months after the Effective Date of this Agreement.

b. Should the buyer exercise the option to acquire the remaining shares in the company, the Seller commits to continue to work and deliver all of the services they have been providing, prior to the Effective Date, to and/or on behalf of the company in good faith for a period of twelve (12) months, or for a period mutually agreed to between the parties, from the execution of the agreement for the buy-out of the remaining shares.

	
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c. Within twelve (12) months of the Effective Date of this Agreement, the Seller commits to put in place a team to perform all the functions and tasks necessary for the continued smooth operations of i-amtv Limited.

d. Post-Closing Condition.  The Seller undertakes to procure an addendum to i-amtv’s existing agreement with The Music Kampany Sdn. Bhd. (“Music Kampany”) that commits Music Kampany to continue providing its services for a period not less than thirty-six (36) months from the Effective Date.  Such addendum to the agreement shall be in a form agreeable to the Buyer.

6.  EXPENSES.  Each of the parties hereto shall pay its own expenses in connection with this Agreement and the transactions contemplated hereby, including but not limited to the fees and expenses of its counsel and its certified public accountants.

7.  GENERAL.

a. Survival of Representations and Warranties.  Each of the parties to this Agreement covenants and agrees that their respective representations, warranties, covenants, statements, and agreements contained in this Agreement shall survive the Closing Date.  Except as set forth in this Agreement, the exhibits hereto or in the documents and papers delivered by Seller to Buyer in connection herewith, there are no other agreements, representations, warranties, or covenants by or among the parties hereto with respect to the subject matter hereof.

b. Waivers.  No action taken pursuant to this Agreement, including any investigation by or on behalf of any party shall be deemed to constitute a waiver by the party taking such action of compliance with any representation, warranty, covenant or agreement contained herein or therein and in any documents delivered in connection herewith or therewith.  The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach.

c. Notices.  All notices, requests, demands and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered or mailed, first class mail, postage prepaid,

To Seller:

i-amtv Limited

E02-02, East Wing,

Business Park Subang Square,

SS15/4G, 47500, Subang Jaya,

Selangor D.E.,

Malaysia

To Buyer:

Intelligent Communication Enterprise Corporation Inc.

13, Spottiswoode Park Road,

Singapore, 088640

Singapore

or to such other address as such party shall have specified by notice in writing to the other party.

 

	
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d. Sections and Other Headings.  The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretations of this Agreement.

e. Governing Law.  This Agreement and all transactions contemplated hereby, shall be governed by, construed and enforced in accordance with the laws of the State of New York.  The parties herein waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter jurisdiction located in the State of New York.  In the event that litigation results from or arises out of this Agreement or the performance thereof, the parties agree to reimburse the prevailing party's reasonable attorney's fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition to any other relief to which the prevailing party may be entitled.  In such event, no action shall be entertained by said court or any court of competent jurisdiction if filed more than one year subsequent to the date the cause(s) of action actually accrued regardless of whether damages were otherwise as of said time calculable.

f. Conditions Precedent.  The Conditions Precedent to the enforceability of this Agreement are outlined more fully in Exhibit "E", attached hereto and made a part hereof.  In the event that said Conditions Precedent are not fulfilled by the appropriate dates thereof, then this Agreement shall be deemed null and void and any deposits or other form of advance compensation paid at said time shall be returned to the Buyer forthwith.

g. Captions.  The Captions of this contract are for convenience and reference only and in no way define, describe, extend, or limit the scope or intent of this contract, or the intent of any provisions hereof.

h. Typewritten or Handwritten Provisions.  Hand-written provisions inserted in this contract and typewritten provisions initialed by both parties shall control over the typewritten provisions in conflict therewith.

i. Time is of the Essence.  Time and timely performance are of the essence of this contract and of the covenants and provisions hereunder.

j. Successors and Assigns.  Rights and obligations created by this contract shall be binding upon and inure to the benefit of the parties hereto, their successors and assigns.  Whenever used, the singular number shall include the plural, the plural the singular, and the use of any gender shall include all genders.

k. Contractual Procedures.  Unless specifically disallowed by law, should litigation arise hereunder, service of process therefore may be obtained through certified mail, return receipt requested; the parties hereto waiving any and all rights they may have to object to the method by which service was perfected.

l. Extraordinary Remedies.  To the extent cognizable at law, the parties hereto, in the event of breach and in addition to any and all other remedies available thereto, may obtain injunctive relief, regardless of whether the injured party can demonstrate that no adequate remedy exists at law.

	
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m. Non-Compete: Seller shall refrain from entering into any trade that directly or indirectly competes with the Company for a period of one year from closing.  This restriction would apply globally.  During such one year term, the Seller will not engage in such business on his own account, or become interested therein, directly or indirectly, as an individual, partner, shareholder, director, consultant, independent contractor, officer, clerk, principal, agent, employee, trustee, or in any relation or capacity whatsoever.  In addition, Seller shall not solicit or induce any employee of the Company to terminate their employment with the Company for a three year period commencing from the date when this agreement is signed.

8.  INITIALS AND EXHIBITS.  This contract shall not be valid and enforceable unless it is properly executed by Buyer and Seller and their initials affixed to each page of the exhibits attached hereto and made a part hereof.

IN WITNESS WHEREOF, this Agreement has been executed by each of the individual parties hereto and signed by an officer thereunto duly authorized and attested under the corporate seal of the Secretary of the Corporate party hereto, if any, all on the date and year first above written.

Signed, sealed and delivered in the presence of:

	
For Seller

 

For and on behalf of

I-AMTV LIMITED

 

 

/s/  A. Sudhish M. P. Anandan

By: A. Sudhish M. P. Anandan

Date: 17 June 2011

 

/s/  Kam Chong Heng

By: Kam Chong Heng

Date: 17 June 2011

 

/s/ Thanabalasingam S. Manickam

By: Thanabalasingam S. Manickam

Date: 17 June 2011

 

	
For Buyer

 

 

 

 

 

/s/  Bala Balamurali

By: Bala Balamurali

Date: 17 June 2011

	
 

Witnessed by:

 

/s/ Viji Rajasundram

Name: Viji Rajasundram

Date 17th June 2011

 

	
 

Witnessed by:

 

/s/ Viji Rajasundram

Name: Viji Rajasundram

Date 17 June 2011

 

	
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EXHIBIT "A"

THE SHARES:

a. The Seller offers and the Buyer accepts to swap Forty Percent (40%) of the total shares available in i-amtv Limited, in exchange for a number of shares in Intelligent Communication Enterprise Corporation Inc. (“ICE Corp” ) equivalent to the amount defined in Exhibit “B”.

b. The Seller further offers an irrevocable option, to the Buyer, for the outright purchase of the remaining Sixty Percent (60%) of the shares held by the Seller.

c. This irrevocable option is offered by the Seller to the Buyer for a period of twenty-four (24) months from the Effective Date of this Agreement (“Option Period”), after which this option lapses.

d. The amount to be paid and the terms of payment are described in Exhibit “B”

e. The Seller warrants that they will not sell the remaining shares they hold in i-amtv Limited within the twenty-four (24) month Option Period to any other party other than the Buyer.

f. The Seller warrants that they will not issue additional shares, subsequent to the Closing Date, unless agreed to by the Buyer, in writing.

Initials:

Seller /s/ BSM

Buyer /s/ BM

	
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EXHIBIT "B"

AMOUNT AND PAYMENT OF PURCHASE PRICE IN THE FORM OF SHARES IN INTELLIGENT COMMUNICATION ENTERPRISE CORPORATION INC. (“ICE Corp”):

a. In consideration for the forty percent of shares in i-amtv Limited, the Buyer will pay to the Seller with shares of ICE Corp, an equivalent to the value of United States Dollars Three Hundred and Eighty Thousand Only (US$380,000).

b. The unit price of the ICE Corp shares ( OTCBB : ICMC ) will be determined to be the value weighted average price per share over a ten day period, prior to the Effective Date of this Agreement.

c. If and when the Buyer exercises the option to purchase the remaining Sixty Percent (60%) of shares in i-amtv Limited held by the Seller after the execution of this Agreement, the Buyer and Seller agree that the Buyer must pay the predetermined price of United States Dollars One Million One Hundred and Forty Thousand Dollars (US$1,140,000) Only for those shares.

d. The Buyer will pay the Seller in cash to exercise the option to buy the remaining (60%) shares in i-amtv Limited.

Initials:

Seller /s/ BSM

Buyer /s/ BM

	
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EXHIBIT "C"

REPRESENTATIONS AND WARRANTIES OF SELLER

In this Exhibit C, “Seller’s Knowledge” means a fact, circumstance, or other matter of which the Seller has actual knowledge or reasonably should have knowledge after due inquiry of its i-amtv Limited’s officers, directors, and key employees and reasonable review of its books and records

A:           REPRESENTATIONS AND WARRANTIES: The Seller represents and warrants to the Buyer as follows as of the Effective Date of this Agreement.

	
  

	
1.

	
Organization, Good Standing, and Qualification.  i-amtv Limited (including its subsidiaries If any) is an entity duly organized, validly existing, and in good standing under the laws of the jurisdiction of its organization and has all requisite power and authority to carry on its business as now conducted and to own its properties.

 

	
  

	
2.

	
Authorization.  Seller has full power and authority and has taken all requisite action on the part of Seller necessary for the authorization, execution, and delivery of this Agreement.

 

	
  

	
3.

	
Consents.  The execution, delivery, and performance by Seller of this Agreement requires no consent of, action by or in respect of, or filing with any Person, governmental body, agency, or official.

 

	
  

	
4.

	
Intellectual Property Rights over video and audio content/media.  Seller warrants that i-amtv Limited continues to own all rights for the content / media both video and audio, for all territories including but not limited to Cable, Satellite , Terrestrial and Internet (IPTV) Television and Radio broadcast.

 

	
  

	
5.

	
Term of Intellectual Property Rights. i-amtv Limited will retain  its rights over the content it owns, or contents to which it has had broadcast rights assigned to it by the rightful owners for a period of not less than thirty-six (36) months from the Effective Date of this Agreement.

 

	
  

	
6.

	
i-amtv brand name, Logo.  i-amtv Limited owns the i-amtv brand name and the i-amtv logo included below :

 

	
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Internet Domain “www.i-amtv.com”.  i-amtv Limited owns the Internet domain “www.i-amtv.com”.

 

	
  

	
8.

	
No Material Adverse Change.  Since the 23rd day of March, 2011, except as described herein, there has not been:

 

a.           any change in the consolidated assets, liabilities, financial condition, or operating results of i-amtv Limited, except for changes in the ordinary course of business that have not and could not reasonably be expected to have a Material Adverse Effect, individually or in the aggregate;

b.           any declaration or payment of any dividend, or any authorization or payment of any distribution, on any of the capital stock of i-amtv Limited, or any redemption or repurchase of any securities of i-amtv Limited;

c.           any material damage, destruction, or loss, whether or not covered by insurance to any assets or properties of i-amtv Limited or its Subsidiaries;

d.           any waiver, not in the ordinary course of business, by i-amtv Limited or any Subsidiary of a material right or of a material debt owed to it;

e.           any satisfaction or discharge of any lien, claim, or encumbrance or payment of any obligation by i-amtv Limited or a Subsidiary, except in the ordinary course of business and which is not material to the assets, properties, financial condition, operating results, or business of i-amtv Limited and its Subsidiaries taken as a whole (as such business is presently conducted and as it is proposed to be conducted);

f.           any change or amendment to i-amtv Limited’s charter documents, or material change to any material contract or arrangement by which i-amtv Limited or any Subsidiary is bound or to which any of their respective assets or properties is subject;

g.           any material labor difficulties or labor union organizing activities with respect to employees of i-amtv Limited or any Subsidiary;

h.           any transaction entered into by i-amtv Limited or a Subsidiary other than in the ordinary course of business;

i.           the loss of the services of any key employee or material change in the composition or duties of the senior management of i-amtv Limited or any Subsidiary;

j.           the loss or threatened loss of any customer that has had or could reasonably be expected to have a Material Adverse Effect; or

k.           any other event or condition of any character that has had or could reasonably be expected to have a Material Adverse Effect.

	
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9.

	
No Conflict, Breach, Violation, or Default.  To Seller’s Knowledge, the execution, delivery, and performance of this Agreement by Seller will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute a default under (a) –amtv Limited’s charter documents in effect on the date hereof (copies of which have been provided to Buyer before the date hereof); or (b)(i) any statute, rule, regulation, or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over i-amtv Limited, any Subsidiary, or any of their respective assets or properties, or (ii) any agreement or instrument to which i-amtv Limited or any Subsidiary is a party or by which i-amtv Limited or a Subsidiary is bound or to which any of their respective assets or properties is subject.

 

	
  

	
10.

	
Tax Matters.  To Seller’s Knowledge, i-amtv Limited have timely prepared and filed all tax returns required to have been filed by i-amtv Limited with all appropriate governmental agencies and timely paid all taxes shown thereon or otherwise owed by it. The charges, accruals, and reserves on the books of the i-amtv Limited  in respect of taxes for all fiscal periods are adequate in all material respects, and there are no material unpaid assessments against i-amtv Limited nor, to Seller’s Knowledge, any basis for the assessment of any additional taxes, penalties, or interest for any fiscal period or audits by any federal, state, or local taxing authority, except for any assessment that is not material to i-amtv Limited taken as a whole.  To Seller’s Knowledge all taxes and other assessments and levies that i-amtv Limited is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper governmental entity or third party when due.  There are no tax liens or claims pending or, to Seller’s Knowledge, threatened against Seller or any Subsidiary or any of their respective assets or property.  There are no outstanding tax-sharing agreements or other such arrangements between i-amtv Limited or other corporation or entity.

 

	
  

	
11.

	
Title to Properties.  To the Seller’s Knowledge, i-amtv Limited has good and marketable title to all real properties and all other properties and assets owned by it, in each case free from liens, encumbrances, and defects that would materially affect the value thereof or materially interfere with the use made or currently planned to be made thereof by them; and i-amtv Limited holds any leased real or personal property under valid and enforceable leases with no exceptions that would materially interfere with the use made or currently planned to be made thereof by them.

 

	
  

	
12.

	
Certificates, Authorities, and Permits.  To Seller’s Knowledge, i-amtv Limited possess adequate certificates, authorities, or permits issued by appropriate governmental agencies or bodies necessary to conduct the business now operated by it, and i-amtv Limited has not received any notice of proceedings relating to the revocation or modification of any such certificate, authority, or permit that, if determined adversely to Seller or such Subsidiary, could reasonably be expected to have a Material Adverse Effect, individually or in the aggregate.

 

	
  

	
13.

	
No Labor Disputes.  No material labor dispute with the employees of i-amtv Limited exists or, to Seller’s Knowledge, is imminent.

 

	
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14.

	
Intellectual Property

 

	
  

	
a.

	
To Seller’s knowledge, all Intellectual Property of i-amtv Limited is currently in compliance with all legal requirements (including timely filings, proofs, and payments of fees) and is valid and enforceable.  No Intellectual Property of i-amtv Limited that is necessary for the conduct of i-amtv Limited’s business is currently conducted or as currently proposed to be conducted has been or is now involved in any cancellation, dispute, or litigation and, to Seller’s Knowledge, no such action is threatened.  No patent of i-amtv Limited has been or is now involved in any interference, reissue, reexamination, or opposition proceeding.

 

	
  

	
b.

	
All of the licenses and sublicenses and consent, royalty, or other agreements concerning Intellectual Property that are necessary for the conduct of i-amtv Limited’s business as currently conducted or as currently proposed to be conducted to which i-amtv Limited is a party or by which any of its assets are bound (other than generally commercially available, non-custom, off-the-shelf software application programs having a retail acquisition price of less than US$3,000 per license) are valid and binding obligations of i-amtv Limited that is party thereto and, to Seller’s Knowledge, the other parties thereto, enforceable in accordance with their terms, except to the extent that enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other similar laws affecting the enforcement of creditors’ rights generally, and there exists no event or condition that will result in a material violation or breach of or constitute (with or without due notice or lapse of time or both) a default by i-amtv Limited under any such license agreement.

 

	
  

	
c.

	
To Seller’s knowledge, i-amtv Limited owns or have the valid right to use all of the Intellectual Property that is necessary for the conduct of i-amtv Limited’s business as currently conducted or as currently proposed to be conducted and for the ownership, maintenance, and operation of i-amtv Limited’s properties and assets, free and clear of all liens, encumbrances, adverse claims, or obligations to license all such owned Intellectual Property and Confidential Information, other than licenses entered into in the ordinary course of i-amtv Limited’s business.  i-amtv Limited has a valid and enforceable right to use all third-party Intellectual Property and Confidential Information used or held for use in the respective businesses of i-amtv Limited.

 

	
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d.

	
To Seller’s knowledge, the conduct of i-amtv Limited’s business as currently conducted does not Infringe any Intellectual Property rights of any third party or any confidentiality obligation owed to a third party and the Intellectual Property and Confidential Information of i-amtv Limited that are necessary for the conduct of i-amtv Limited’s business as currently conducted or as currently proposed to be conducted are not being Infringed by any third party.  There is no litigation or order pending or outstanding or, to Seller’s Knowledge, threatened or imminent that seeks to limit or challenge or that concerns the ownership, use, validity, or enforceability of any Intellectual Property or Confidential Information of i-amtv Limited and i-amtv Limited’s use of any Intellectual Property or Confidential Information owned by a third party and, to Seller’s Knowledge, there is no valid basis for the same.

 

	
  

	
e.

	
To Seller’s knowledge, the consummation of the transactions contemplated hereby will not result in the alteration, loss, impairment of, or restriction on i-amtv Limited’s  ownership or right to use any of the Intellectual Property or Confidential Information that is necessary for the conduct of i-amtv Limited’s business as currently conducted or as currently proposed to be conducted.

 

	
  

	
f.

	
All software owned by i-amtv Limited and, to Seller’s Knowledge, all software licensed from third parties by i-amtv Limited: (i) is free from any material defect, bug, virus, or programming, design, or documentation error; (ii) operates and runs in a reasonable and efficient business manner; and (iii) conforms in all material respects to the specifications and purposes thereof.

 

	
  

	
g.

	
i-amtv Limited has taken reasonable steps to protect the rights of i-amtv Limited in their Intellectual Property and Confidential Information.  Each employee, consultant, and contractor that has had access to Confidential Information that is necessary for the conduct of the i-amtv Limited’s business as currently conducted or as currently proposed to be conducted has executed an agreement to maintain the confidentiality of such Confidential Information and has executed appropriate agreements that are substantially consistent with i-amtv Limited’s standard forms thereof.  Except under confidentiality obligations, there has been no material disclosure of any of the Confidential Information of i-amtv Limited to any third party.

 

 

	
  

	
15.

	
Litigation.  There are no pending actions, suits, or proceedings against or affecting i-amtv Limited, or any of its properties; and to Seller’s Knowledge, no such actions, suits, or proceedings are threatened or contemplated.

 

	
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16.

	
Financial Statements.  The financial statements of i-amtv Limited present fairly, in all material respects, the consolidated financial position of i-amtv Limited as of the dates shown and its consolidated results of operations and cash flows for the periods shown, and such financial statements have been prepared in conformity with United States generally accepted accounting principles applied on a consistent basis (except as may be disclosed therein or in the notes thereto).  Except as set forth in the financial statements described in Exhibit “D”, i-amtv Limited has not incurred any liabilities, contingent or otherwise, except those incurred in the ordinary course of business and consistent (as to amount and nature) with past practices since the date of such financial statements, individually or in the aggregate, that have or could reasonably be expected to have a Material Adverse Effect.

 

	
  

	
17.

	
Insurance Coverage.  To Seller’s Knowledge, i-amtv Limited maintains in full force and effect insurance coverage that is customary for comparably situated companies for the business being conducted and properties owned or leased by i-amtv Limited, and Seller reasonably believes such insurance coverage to be adequate against all liabilities, claims, and risks against which it is customary for comparably situated companies to insure.

 

	
  

	
18.

	
Brokers and Finders.  No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest, or claim against or upon Seller, i-amtv Limited, or Buyer for any commission, fee, or other compensation pursuant to any agreement, arrangement, or understanding entered into by or on behalf of Seller.

 

	
  

	
19.

	
Questionable Payments. i-amtv Limited, to Seller’s Knowledge, any of their respective current or former stockholders, directors, officers, employees, agents, or other Persons acting on behalf of i-amtv Limited, on behalf of i-amtv Limited or in connection with their respective businesses, has not: (a) used any corporate funds for unlawful contributions, gifts, entertainment, or other unlawful expenses relating to political activity; (b) made any direct or indirect unlawful payments to any governmental officials or employees from corporate funds; (c) established or maintained any unlawful or unrecorded fund of corporate monies or other assets; (d) made any false or fictitious entries on the books and records of i-amtv Limited; or (e) made any unlawful bribe, rebate, payoff, influence payment, kickback, or other unlawful payment of any nature.

 

	
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20.

	
Transactions with Affiliates.  None of the officers or directors of i-amtv Limited and, to Seller’s Knowledge, none of the employees of i-amtv Limited is presently a party to any transaction with i-amtv Limited (other than as holders of stock options and/or warrants, and for services as employees, officers, and directors), including any contract, agreement, or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director, or such employee or, to Seller’s Knowledge, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, or partner.

 

	
  

	
21.

	
Internal Controls.  i-amtv Limited maintains a system of internal accounting controls sufficient to provide reasonable assurance that (a) transactions are executed in accordance with management’s general or specific authorizations, (b) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (c) access to assets is permitted only in accordance with management’s general or specific authorization, and (d) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

	
  

	
22.

	
Disclosures.  This Agreement, including all exhibits and schedules thereto, does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein, in light of the circumstances under which they were made, not misleading.

 

 

B:           SURVIVAL AND INDEMNIFICATION

	
  

	
1.

	
Survival.  All representations, warranties, covenants, and agreements contained in this Agreement shall be deemed to be representations, warranties, covenants, and agreements as of the date hereof and shall survive the execution and delivery of this Agreement for a period of three years from the date of this Agreement.

 

	
  

	
2.

	
Indemnification. The Seller agrees to indemnify and hold harmless, on an after-insurance recovery basis, the Buyer and its Affiliates and their respective directors, officers, employees, and agents from and against any and all losses, claims, damages, liabilities, and expenses (including reasonable attorney fees, disbursements, and other expenses incurred in connection with investigating, preparing, or defending any action, claim, or proceeding, pending or threatened, and the costs of enforcement hereof) to which the Buyer may become subject to as a result of any breach of representation, warranty, covenant, or agreement made by the Seller under this Agreement, and will reimburse the Buyer for all such amounts as they are incurred by the Buyer.

 

 

	
Intelligent Communication Enterprise Corporation Inc.

	
Sale And Purchase Agreement

	
Strictly Confidential

	
17 June 2011

	
14

  

  

  

 

 

	
  

	
3.

	
Conduct of Indemnification Proceedings.  Promptly after receipt by the Buyer or its Affiliates and their respective directors, officers, employees, and agents (the “Indemnified Person”) of notice of any demand, claim, or circumstances that would or might give rise to a claim or the commencement of any action, proceeding, or investigation in respect of which indemnity may be sought pursuant to this Agreement, such Indemnified Person shall promptly notify the Seller (the “Indemnifying Party”) in writing and Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Person, and shall assume the payment of all fees and expenses; provided, however, that the failure of any Indemnified Person so to notify Indemnifying Party shall not relieve Indemnifying Party of its obligations hereunder except to the extent that Indemnifying Party is materially prejudiced by such failure to notify.  In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (a) Indemnifying Party and the Indemnified Person shall have mutually agreed to the retention of such counsel; or (b) in the reasonable judgment of counsel to such Indemnified Person representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.  Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent, or if there be a final judgment for the plaintiff, Indemnifying Party shall indemnify and hold harmless such Indemnified Person from and against any loss or liability (to the extent stated above) by reason of such settlement or judgment.  Without the prior written consent of the Indemnified Person, which consent shall not be unreasonably withheld, Indemnifying Party shall not affect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Person from all liability arising out of such proceeding.

 

	
Intelligent Communication Enterprise Corporation Inc.

	
Sale And Purchase Agreement

	
Strictly Confidential

	
17 June 2011

	
15

  

  

  

 

EXHIBIT "D"

DOCUMENTS FOR REVIEW

The Agreement between i-amtv Limited and it’s appointed agent The Music Kampany Sdn. Bhd.;

All documentation and Agreements describing the arrangements between the bands and i-amtv Limited and/or it’s appointed agents, such as Music Kampany Sdn. Bhd.;

Financial/Accounting and Operating Statements ( Profit & Loss, Balance sheets etc. ) for the last 2 years;

Bank statements for accounts that i-amtv own and operate;

The Agreements with all customers (Radio stations, Cable Television Network operators etc.) to whom i-amtv Limited supply content to;

Any other agency agreements, partnership agreements and distribution agreements that the Seller is or should be aware of;

Projected Profit & Loss Statement for current year;

List of assets, debtors, creditors and other liabilities;

Corporate Articles of Incorporation of the Company;

Corporate By-laws of the Company.

Initials:

Seller /s/ BSM

Buyer /s/ BM

	
Intelligent Communication Enterprise Corporation Inc.

	
Sale And Purchase Agreement

	
Strictly Confidential

	
17 June 2011

	
16

  

  

  

 

EXHIBIT "E"

CONDITIONS PRECEDENT

All loans and liabilities on the books of i-amtv Limited due to the Seller as of the Effective Date estimated to be US$338,148 shall be converted into equity by the Seller prior to the Closing Date and prior to the transfer of the 40% of shares to the Buyer in accordance with this Agreement.

Buyer agrees to discontinue operations in any other entity controlled by the Buyer and operating under any name that contains “i-amtv” prior to the Closing Date.

Any other conditions precedent, contained within this Agreement are to be completed prior to the Closing Date.

Initials:

Seller /s/ BSM

Buyer /s/ BM

	
Intelligent Communication Enterprise Corporation Inc.

	
Sale And Purchase Agreement

	
Strictly Confidential

	
17 June 2011

	
17

  

  

  

 

ADDENDUM TO SALE AND PURCHASE AGREEMENT

THIS ADDENDUM TO SALE AND PURCHASE AGREEMENT (the “Addendum”) is an addendum to Exhibit C of that Sale and Purchase Agreement (the “Agreement”) entered into as of June 18, 2011, by and among A. Sudhish M. P. Anandan of 18, SSS1/43, Kampung Tunku, 47300 Petaling Jaya, Selangor D.E, Malaysia, Kam Chong Heng of 18, SSS1/39, Kampung Tunku, 47300 Petaling Jaya, Selangor D.E, Malaysia and Thanabalasingam S. Manickam of No 21, Jalan U6/2B, Desa Subang Permai, 40150 Shah Alam, Selangor D.E, Malaysia, hereinafter collectively referred to as “Seller,” and Intelligent Communication Enterprise Corporation, a company incorporated in Pennsylvania, USA, and whose registered office is 1515 Market Street, Suite 1210, Philadelphia, PA 19102, USA, hereinafter referred to as “Buyer.”

1.           Seller Representations; Access to Information; Independent Investigation.

(a)           Offshore Transaction.  In connection with Seller’s acquisition of the shares of common stock of Buyer (the “ICE Shares”), Seller represents and warrants to Buyer as follows:

(i)           Seller is not a U.S. person, as that term is defined under Regulation S, and is not purchasing the ICE Shares on behalf of any U.S. person.  Under Regulation S, a U.S. person means:

(1)           any natural person resident in the United States;

(2)           any partnership or corporation organized or incorporated under the laws of the United States;

(3)           any estate of which any executor or administrator is a U.S. person;

(4)           any agency or branch of a foreign entity located in the United States;

(5)           any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person;

(6)           any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated or (if an individual) resident in the United States; and

(7)           any partnership or corporation if (A) organized or incorporated under the laws of any foreign jurisdiction; and (B) formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act of 1933 (“Securities Act”), unless it is organized or incorporated and owned by accredited investors (as defined in Rule 501 of Regulation D) that are not natural persons, estates, or trusts.

1

  

  

  

 

(ii)           Seller was outside of the United States as of the date of execution and delivery of the Agreement and this Addendum.  No offer to purchase the ICE Shares was made in the United States.

(iii)           Seller is purchasing the ICE Shares for its own account or for the account of beneficiaries for whom Seller has full investment discretion, each of which beneficiaries is bound to all of the terms and provisions hereof including all representations and warranties herein.  Seller is purchasing the ICE Shares for investment purposes only and not with a view to, or for sale in connection with, any “distribution” (as such term is used in Section 2(11) of the Securities Act) thereof or for the account or on behalf of any U.S. person.

(iv)           The ICE Shares have not been registered under the Securities Act and may not be transferred, sold, assigned, hypothecated, or otherwise disposed of, unless such transaction is the subject of a registration statement filed with and declared effective by the United States Securities and Exchange Commission (“SEC”) or unless an exemption from the registration requirements under the Securities Act is available.  Seller represents and warrants and hereby agrees that the ICE Shares are “restricted securities” as defined in Rule 144.

(v)           Seller acknowledges that the purchase of the ICE Shares involves a high degree of risk and is aware of the risks and further acknowledges that it can bear the economic risk of the purchase of the ICE Shares, including the total loss of its investment.

(vi)           Seller understands that the ICE Shares are being offered and sold to it in reliance on the safe harbor from the registration requirements of the Securities Act, and that Buyer is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments, and understandings of Seller set forth herein in order to determine the applicability of such safe harbor and the suitability of Seller to acquire the ICE Shares.

(vii)           Seller is sufficiently experienced in financial and business matters to be capable of evaluating the merits and risks of its investments, to make an informed decision relating thereto, and to protect its own interests in connection with the transaction.

(viii)           In evaluating its investment, Seller has consulted its own investment and/or legal and/or tax advisers.

(ix)           Seller understands that in the view of the SEC, the statutory basis for the safe harbor claimed for this transaction would not be present if the offering of the ICE Shares, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the Securities Act.

(x)           Seller is not an underwriter of, or dealer in, the ICE Shares, and Seller is not participating pursuant to a contractual agreement in the distribution of the ICE Shares.

 

2

  

  

  

(xi)           Seller has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the ICE Shares or any use of this Addendum or the Agreement, including: (1) the legal requirements within its jurisdiction for the purchase of the ICE Shares; (2) any foreign exchange restrictions applicable to such purchase; (3) any governmental or other consents that may need to be obtained; and (4) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the ICE Shares.  Seller’s subscription and payment for, and its continued ownership of the ICE Shares, will not violate any applicable securities or other laws of its jurisdiction.

(xii)           No consent, approval or authorization of, or designation, declaration or filing with any governmental authority on the part of Seller is required in connection with the valid execution and delivery of this Addendum or the Agreement.

(b)           Current Public Information.  Seller acknowledges that Seller has been furnished with or has acquired copies of Buyer’s most recent Annual Report on the Form 10-K filed with the SEC and the Forms 10-Q and 8-K filed thereafter.

(c)           Independent Investigation; Access.  Seller acknowledges that Seller, in making the decision to purchase the ICE Shares subscribed for, has relied upon independent investigations made by it and its Seller representatives, if any, and Seller and such representatives, if any, have prior to any sale to it, been given access and the opportunity to examine all material contracts and documents relating to this offering and an opportunity to ask questions of, and to receive answers from, Buyer or any person acting on its behalf concerning the terms and conditions of this offering.  Seller and its advisers, if any, have been furnished with access to all publicly available materials relating to the business, finances, and operation of Buyer and materials relating to the offer and sale of the ICE Shares that have been requested.  Seller and its advisers, if any, have received complete and satisfactory answers to any such inquiries.

(d)           No Governmental Recommendation or Approval.  Seller understands that no federal or state agency has passed on or made any recommendation or endorsement of the ICE Shares.

2.           Restrictive Legend.  Buyer will prepare and issue one or more certificates for the ICE Shares registered in such name or names as specified by Seller.  Such certificate(s) shall bear a legend in substantially the following form:

These shares have been issued pursuant to Regulation S as an exemption to the registration provisions under the Securities Act of 1933, as amended.  These shares cannot be transferred, offered, or sold in the U.S. or to U.S. persons (as defined in Regulation S) unless the securities are registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available.

 

3

  

  

  

 

3.           Exemption; Reliance on Representation.  Seller understands that the offer and sale of the ICE Shares is not being registered under the Securities Act.  Buyer is relying on the terms and provisions governing offers and sales made outside the United States pursuant to Rules 901 through 905 of Regulation S and the Preliminary Notes thereto, which govern this transaction.

4.           Effect of this Addendum.  This Addendum is intended to supplement the provisions of Part A of Exhibit C (Representations and Warranties of Seller) to the Agreement and does not affect or supersede any other provision, term, or condition of the Agreement as executed between Seller and Buyer.

IN WITNESS WHEREOF, the parties have executed this Addendum on the dates set forth below their signatures.

	
For Seller

 

/s/  A. Sudhish M. P. Anandan

By: A. Sudhish M. P. Anandan

Date: 1/7/2011

 

By: Kam Chong Heng

Date:

 

/s/ Thanabalasingam S. Manickam

By: Thanabalasingam S. Manickam

Date: July 1, 2011

 

	
For Buyer

 

/s/  Bala Balamurali

By: Bala Balamurali

Date: 1 July 2011

	
 

Witnessed by:

 

/s/ Viji Rajasundram

Name: Viji Rajasundram

Date

 

	
 

Witnessed by:

 

s/ Viji Rajasundram

Name:    Viji Rajasundram

Date

4TransAKT Ltd.: Exhibit 10.1 - Filed by newsfilecorp.com

PRIVATE PLACEMENT SUBSCRIPTION

TRANSAKT LTD.
No.3, Lane 141, Sec. 3, Beishen Rd.,

Shenkeng Township, 
Taipei County 222, Taiwan (R.O.C.)

PRIVATE PLACEMENT

INSTRUCTIONS TO SUBSCRIBER:

	1. 	
      COMPLETE the information on page 2 of this
      Subscription Agreement.

	 	 
	2. 	
      If resident in the United States, COMPLETE the
      Prospective Investor Suitability Questionnaire attached as Appendix 1 to
      this Subscription Agreement and the Canadian Questionnaire attached as
      Appendix 2 to this Subscription Agreement.

	 	 
	3. 	
      If resident in Canada or an international jurisdiction
      outside of the United States, COMPLETE the Canadian Questionnaire
      attached as Appendix 2 to this Subscription Agreement only.

	 	 
	4. 	
      COURIER the originally executed copy of the entire
      Subscription Agreement, together with the Questionnaire, to the Company
      at:

TransAKT Ltd. c/o
Macdonald Tuskey, Corporate and
Securities Lawyers 
1210 – 777 Hornby Street 
Vancouver, BC, Canada, V6Z
1S4 
Attention: William L. Macdonald

If you have any questions please contact James Wu, Chief
Executive Officer of the Company, at: 886-2-26624343

- 2 -

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT

TO:    TransAKT Ltd. (the “Company”)

Subject and pursuant to the attached “Terms and Conditions” of
this Subscription Agreement, including all schedules and appendices attached
hereto, the Subscriber hereby irrevocably subscribes for, and on the Closing
Date, will purchase from the Company, the following securities at the following
price:

	           
                         
                         
                         
                         
                         
                       Shares
      
	 
	US$________per Share for a total purchase
      price of
      US$                                         
      
	 
	The Subscriber owns, directly or
      indirectly, the following securities of the Company: 
	 
	N/A 
	 
	[Check if applicable] The Subscriber
      is  [   ]   an affiliate of the Company
  

The Subscriber directs the Company to issue, register and
deliver the certificates representing the Shares as follows:

	REGISTRATION INSTRUCTIONS 	 	DELIVERY INSTRUCTIONS
    
	 	 	 
	 	 	 
	Name to appear on certificate 	 	Name
      and account reference, if applicable 
	 	 	 
	 	 	 
	Account reference if applicable 	 	Contact
      name 
	 	 	 
	 	 	 
	Address 	 	Address
    
	 	 	 
	 	 	 
	Tax I.D./E.I.N./S.S.N. 	 	Telephone Number 

EXECUTED by the Subscriber this _______day of _____________,
2010.

	                 
                         
                 WITNESS: 	 	             
               EXECUTION BY SUBSCRIBER: 
	 	 	 
	  	 	X 
	Signature of Witness
    	 	Signature of individual (if Subscriber is an
      individual) 
	 	 	 
	  	 	X 
	Name of Witness 	 	Authorized signatory (if Subscriber is not an
      individual) 
	 	 	 
	 
    	 	  
	Address of Witness
    	 	Name of
      Subscriber (please print) 
	 	 	 
	  	 	  
	  	 	Name of
      authorized signatory (please print) 
	ACCEPTED and
      EFFECTIVE this ______day of 	 	 
    
	____________________, 20____ 	 	 
    
	 	 	 
	TRANSAKT LTD.
    	 	Address
      of Subscriber (residence) 
	 	 	 
	per: 	 	  
	  	 	Telephone Number 
	 	 	 
	Authorized Signatory
    	 	  
	  	 	E-mail
      address 
	 	 	 
	  	 	  
	  	 	Social Security/Insurance No.: 

By signing this acceptance, the Subscriber agrees to be bound
by the term and conditions of this Subscription Agreement.

- 3 -

NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT
SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE
OFFERED OR SOLD IN THE UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS
(AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE
ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

TERMS AND CONDITIONS

1.            
Subscription

1.1          
The undersigned (the "Subscriber") hereby irrevocably subscribes for
and agrees to purchase the number of shares of the Company's common stock (the
"Shares") as set out on page 2 of this Subscription Agreement at a price of
US$______per Share (such subscription and agreement to purchase being the
"Subscription"), for the total subscription price as set out on page 2 of this
Subscription Agreement (the "Subscription Proceeds"), which Subscription
Proceeds are tendered herewith, on the basis of the representations and
warranties and subject to the terms and conditions set forth herein.

1.2          
The Company hereby agrees to sell, on the basis of the representations
and warranties and subject to the terms and conditions set forth herein, to the
Subscriber the Shares. Subject to the terms hereof, the Subscription Agreement
will be effective upon its acceptance by the Company.

1.3          
Unless otherwise provided, all dollar amounts referred to in this
Subscription Agreement are in lawful money of the United States of America.

2.          
 Payment

2.1          The Subscription Proceeds must accompany this Subscription and shall be
paid to the Company by certified cheque, bank draft of money order. If the funds
are wired to the Company's lawyers, those lawyers are authorized to immediately
deliver the funds to the Company without further authorization from the
Subscriber.

2.2          The Subscriber acknowledges and agrees that this Subscription
Agreement, the Subscription Proceeds and any other documents delivered in
connection herewith will be held by the Company's lawyers on behalf of the
Company. In the event that this Subscription Agreement is not accepted by the
Company for whatever reason within 60 days of the delivery of an executed
Subscription Agreement by the Subscriber, this Subscription Agreement, the
Subscription Proceeds and any other documents delivered in connection herewith
will be returned to the Subscriber at the address of the Subscriber as set forth
in this Subscription Agreement without interest or deduction.

2.3          Where the Subscription Proceeds are paid to the Company, the Company
may treat the Subscription Proceeds as a non-interest bearing loan and may use
the Subscription Proceeds prior to this Subscription Agreement being accepted by
the Company.

3.           
Questionnaires and Undertaking and Direction

3.1          The Subscriber must complete, sign and return to the Company the
following documents:

	 	(a) 	
      One (1) executed copy of this Subscription
    Agreement;

	 	 	 
	 	(b) 	
      the US Questionnaire in the form attached as Appendix 1
      if the Subscriber is resident in the United States; and

	 	 	 
	 	(c) 	
      the Canadian Questionnaire in the form attached as
      Appendix 2.

- 4 -

3.2          The Subscriber shall complete, sign and return to the Company as soon
as possible, on request by the Company, any documents, questionnaires, notices
and undertakings as may be required by regulatory authorities, stock exchanges
and applicable law.

4.           
Closing

4.1          Closing of the purchase and sale of the Shares shall be deemed to be
effective on such date as may be determined by the Company in its sole
discretion (the "Closing Date"). The Subscriber acknowledges that Shares may be
issued to other subscribers under this offering (the "Offering") before or after
the Closing Date. The Company, may, at its discretion, elect to close the
Offering in one or more closings, in which event the Company may agree with one
or more subscribers (including the Subscriber hereunder) to complete delivery of
the Shares to such subscriber(s) against payment therefore at any time on or
prior to the Closing Date.

5.           
Acknowledgements of Subscriber

5.1          The Subscriber acknowledges and agrees that:

	 	(a) 	
      none of the Shares have been registered under the 1933
      Act, or under any state securities or “blue sky” laws of any state of the
      United States, and, unless so registered, may not be offered or sold in
      the United States or to U.S. Persons, as that term is defined in
      Regulation S under the 1933 Act (“Regulation S”), except pursuant to an
      exemption from, or in a transaction not subject to, the registration
      requirements of the 1933 Act;

	 	 	 
	 	(b) 	
      the Subscriber acknowledges that the Company has not
      undertaken, and will have no obligation, to register any of the Shares
      under the 1933 Act;

	 	 	 
	 	(c) 	
      the decision to execute this Subscription Agreement and
      purchase the Shares agreed to be purchased hereunder has not been based
      upon any oral or written representation as to fact or otherwise made by or
      on behalf of the Company. If the Company has presented a business plan to
      the Subscriber, the Subscriber acknowledges that the business plan may not
      be achieved or be achievable;

	 	 	 
	 	(d) 	
      the Subscriber and the Subscriber’s advisor(s) have had a
      reasonable opportunity to ask questions of and receive answers from the
      Company in connection with the sale of the Shares hereunder, and to obtain
      additional information, to the extent possessed or obtainable without
      unreasonable effort or expense, necessary to verify the accuracy of the
      information about the Company;

	 	 	 
	 	(e) 	
      by completing the Canadian Questionnaire, the Subscriber
      is representing and warranting that the Subscriber satisfies one of the
      categories of registration and prospectus exemptions provided for in
      National Instrument 45-106 ("NI 45-106") adopted by the Canadian
      Securities Administrators (the "CSA");

	 	 	 
	 	(f) 	
      the decision to execute this Subscription Agreement and
      purchase the Shares agreed to be purchased hereunder has not been based
      upon any oral or written representation as to fact or otherwise made by or
      on behalf of the Company and such decision is based solely upon a review
      of publicly available information regarding the Company available on the
      website of the United States Securities and Exchange Commission (the
      "SEC") available at www.sec.gov (the "Company Information");

	 	 	 
	 	(g) 	
      the books and records of the Company were available upon
      reasonable notice for inspection, subject to certain confidentiality
      restrictions, by Subscribers during reasonable business hours at its
      principal place of business and that all documents, records and books in
      connection with the sale of the Shares hereunder have been made available
      for inspection by the Subscriber, the Subscriber’s attorney and/or
      advisor(s);

	 	 	 
	 	(h) 	
      by execution of this Subscription Agreement the
      Subscriber has waived the need for the Company to communicate its
      acceptance of the purchase of the Shares pursuant to this Subscription
      Agreement;

- 5 -

	 	(i) 	
      all information which the Subscriber has provided to the
      Company in the Questionnaire is correct and complete as of the date the
      Questionnaire is signed, and if there should be any change in such
      information prior to the Subscription being accepted by the Company, the
      Subscriber will immediately provide the Company with such
    information;

	 	 	 
	 	(j) 	
      the Company is entitled to rely on the representations
      and warranties and the statements and answers of the Subscriber contained
      in this Subscription Agreement and in the Questionnaire, and the
      Subscriber will hold harmless the Company from any loss or damage it may
      suffer as a result of the Subscriber’s failure to correctly complete this
      Subscription Agreement or the Questionnaire;

	 	 	 
	 	(k) 	
      it will indemnify and hold harmless the Company and,
      where applicable, its respective directors, officers, employees, agents,
      advisors and shareholders from and against any and all loss, liability,
      claim, damage and expense whatsoever (including, but not limited to, any
      and all fees, costs and expenses whatsoever reasonably incurred in
      investigating, preparing or defending against any claim, lawsuit,
      administrative proceeding or investigation whether commenced or
      threatened) arising out of or based upon any representation or warranty of
      the Subscriber contained herein or in any document furnished by the
      Subscriber to the Company in connection herewith being untrue in any
      material respect or any breach or failure by the Subscriber to comply with
      any covenant or agreement made by the Subscriber to the Company in
      connection therewith;

	 	 	 
	 	(l) 	
      the issuance and sale of the Shares to the Subscriber
      will not be completed if it would be unlawful or if, in the discretion of
      the Company acting reasonably, it is not in the best interests of the
      Company;

	 	 	 
	 	(m) 	
      it has been advised to consult its own legal, tax and
      other advisors with respect to the merits and risks of an investment in
      the Shares and with respect to applicable resale restrictions and it is
      solely responsible (and the Company is not in any way responsible) for
      compliance with applicable resale restrictions;

	 	 	 
	 	(n) 	
      none of the Shares are listed on any stock exchange and
      no representation has been made to the Subscriber that any of the Shares
      will become listed on any stock exchange or automated dealer quotation
      system;

	 	 	 
	 	(o) 	
      it is acquiring the Shares as principal for its own
      account, for investment purposes only, and not with a view to, or for,
      resale, distribution or fractionalization thereof, in whole or in part,
      and no other person has a direct or indirect beneficial interest in such
      Shares;

	 	 	 
	 	(p) 	
      the Subscriber is acquiring the Shares pursuant to an
      exemption from the registration and prospectus requirements of applicable
      securities legislation in all jurisdictions relevant to this Subscription,
      and, as a consequence, the Subscriber will not be entitled to use most of
      the civil remedies available under applicable securities legislation and
      the Subscriber will not receive information that would otherwise be
      required to be provided to the Subscriber pursuant to applicable
      securities legislation;

	 	 	 
	 	(q) 	
      the Subscriber has been advised that the business of the
      Company is in a start-up phase and acknowledges that there is no assurance
      that the Company will raise sufficient funds to adequately capitalize the
      business or that the business will be profitable in the future;

	 	 	 
	 	(r) 	
      no documents in connection with the sale of the Shares
      hereunder have been reviewed by the Securities and Exchange Commission or
      any state securities administrators;

	 	 	 
	 	(s) 	
      there is no government or other insurance covering any of
      the Shares; and

	 	 	 
	 	(t) 	
      this Subscription Agreement is not enforceable by the
      Subscriber unless it has been accepted by the
Company.

- 6 -

6.           
Representations, Warranties and Covenants of the Subscriber

6.1          The Subscriber hereby represents and warrants to and covenants with the
Company (which representations, warranties and covenants shall survive the
Closing) that:

	 	(a) 	
      the Subscriber is resident in the jurisdiction set forth
      on page 2 underneath the Subscriber’s name and signature;

	 	 	 
	 	(b) 	
      the Subscriber has the legal capacity and competence to
      enter into and execute this Subscription Agreement and to take all actions
      required pursuant hereto and, if the Subscriber is a corporation, it is
      duly incorporated and validly subsisting under the laws of its
      jurisdiction of incorporation and all necessary approvals by its
      directors, shareholders and others have been obtained to authorize
      execution and performance of this Subscription Agreement on behalf of the
      Subscriber;

	 	 	 
	 	(c) 	
      the Subscriber (i) has adequate net worth and means of
      providing for its current financial needs and possible personal
      contingencies, (ii) has no need for liquidity in this investment, and
      (iii) is able to bear the economic risks of an investment in the Shares
      for an indefinite period of time;

	 	 	 
	 	(d) 	
      the Subscriber has made an independent examination and
      investigation of an investment in the Shares and the Company and has
      depended on the advice of its legal and financial advisors and agrees that
      the Company will not be responsible in anyway whatsoever for the
      Subscriber’s decision to invest in the Shares and the Company;

	 	 	 
	 	(e) 	
      all information contained in the Questionnaire is
      complete and accurate and may be relied upon by the Company and the
      Subscriber will notify the Company immediately of any material change in
      any such information occurring prior to the closing of the purchase of the
      Shares;

	 	 	 
	 	(f) 	
      the entering into of this Subscription Agreement and the
      transactions contemplated hereby do not result in the violation of any of
      the terms and provisions of any law applicable to, or the constating
      documents of, the Subscriber or of any agreement, written or oral, to
      which the Subscriber may be a party or by which the Subscriber is or may
      be bound;

	 	 	 
	 	(g) 	
      the Subscriber has duly executed and delivered this
      Subscription Agreement and it constitutes a valid and binding agreement of
      the Subscriber enforceable against the Subscriber;

	 	 	 
	 	(h) 	
      it understands and agrees that none of the Shares have
      been registered under the 1933 Act or any state securities laws, and,
      unless so registered, none may be offered or sold in the United States or,
      directly or indirectly, to U.S. Persons (as defined herein) except
      pursuant to an exemption from, or in a transaction not subject to, the
      Registration Requirements of the 1933 Act and in each case only in
      accordance with state securities laws;

	 	 	 
	 	(i) 	
      it is purchasing the Shares for its own account for
      investment purposes only and not for the account of any other person and
      not for distribution, assignment or resale to others, and no other person
      has a direct or indirect beneficial interest is such Shares, and the
      Subscriber has not subdivided his interest in the Shares with any other
      person;

	 	 	 
	 	(j) 	
      it is able to fend for itself in the Subscription and has
      the ability to bear the economic risks of its prospective investment and
      can afford the complete loss of such investment;

	 	 	 
	 	(k) 	
      if it is acquiring the Shares as a fiduciary or agent for
      one or more investor accounts, it has sole investment discretion with
      respect to each such account and it has full power to make the foregoing
      acknowledgments, representations and agreements on behalf of such
      account;

	 	 	 
	 	(l) 	
      it understands and agrees that the Company and others
      will rely upon the truth and accuracy of the acknowledgments,
      representations and agreements contained in sections 5 and 6 hereof and
      agrees that if any of such acknowledgments, representations and agreements
      are no longer accurate or have been breached, it shall promptly notify the
      Company;

- 7 -

	 	(m) 	
      the Subscriber:

	 	 	 	 	 
	 		(i) 	
      is knowledgeable of, or has been independently advised as
      to, the applicable securities laws of the securities regulators having
      application in the jurisdiction in which the Subscriber is resident (the
      “International Jurisdiction”) which would apply to the acquisition of the
      Shares,

	 	 	 	 	 
	 		(ii) 	
      is purchasing the Shares pursuant to exemptions from
      prospectus or equivalent requirements under applicable securities laws or,
      if such is not applicable, the Subscriber is permitted to purchase the
      Shares under the applicable securities laws of the securities regulators
      in the International Jurisdiction without the need to rely on any
      exemptions,

	 	 	 	 	 
	 		(iii) 	
      acknowledges that the applicable securities laws of the
      authorities in the International Jurisdiction do not require the Company
      to make any filings or seek any approvals of any kind whatsoever from any
      securities regulator of any kind whatsoever in the International
      Jurisdiction in connection with the issue and sale or resale of any of the
      Securities, and

	 	 	 	 	 
	 		(iv) 	
      represents and warrants that the acquisition of the
      Shares by the Subscriber does not trigger:

	 	 	 	 	 
	 			A. 	
      any obligation to prepare and file a prospectus or
      similar document, or any other report with respect to such purchase in the
      International Jurisdiction, or

	 	 	 	 	 
	 			B. 	
      any continuous disclosure reporting obligation of the
      Company in the International Jurisdiction, and

	 	 	 	 	 
	 	(n) 	
      the Subscriber will, if requested by the Company, deliver
      to the Company a certificate or opinion of local counsel from the
      International Jurisdiction which will confirm the matters referred to in
      subparagraphs (ii), (iii) and (iv) above to the satisfaction of the
      Company, acting reasonably

	 	 	 	 	 
	 	(o) 	
      the Subscriber is not acquiring the Shares as a result of
      any form of general solicitation or general advertising including
      advertisements, articles, notices or other communications published in any
      newspaper, magazine or similar media or broadcast over radio, or
      television, or any seminar or meeting whose attendees have been invited by
      general solicitation or general advertising;

	 	 	 	 	 
	 	(p) 	
      no person has made to the Subscriber any written or oral
      representations:

	 	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase any of the
      Shares;

	 	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of any of
      the Shares;

	 	 	 	 	 
	 		(iii) 	
      as to the future price or value of any of the Shares;
      or

	 	 	 	 	 
	 		(iv) 	
      that any of the Shares will be listed and posted for
      trading on any stock exchange or automated dealer quotation system or that
      application has been made to list and post any of the Shares of the
      Company on any stock exchange or automated dealer quotation system, except
      that currently certain market makers make market in the shares of the
      Company's common stock on the OTC Bulletin Board.

6.2          
In this Subscription Agreement, the term “U.S. Person” shall have the
meaning ascribed thereto in Regulation S and for the purpose of the Subscription
includes any person in the United States.

7.          
  Acknowledgement and Waiver

7.1          The Subscriber has acknowledged that the decision to purchase the
Shares was solely made on the basis of publicly available information. The
Subscriber hereby waives, to the fullest extent permitted by law, any rights of
withdrawal, rescission or compensation for damages to which the Subscriber might
be entitled in connection with the distribution of any of the Shares.

- 8 -

8.           
Representations and Warranties will be Relied Upon by the
Company

8.1          The Subscriber acknowledges that the representations and warranties
contained herein are made by it with the intention that they may be relied upon
by the Company and its legal counsel in determining the Subscriber’s eligibility
to purchase the Shares under applicable securities legislation, or (if
applicable) the eligibility of others on whose behalf it is contracting
hereunder to purchase the Shares under applicable securities legislation. The
Subscriber further agrees that by accepting delivery of the certificates
representing the Shares on the Closing Date, it will be representing and
warranting that the representations and warranties contained herein are true and
correct as at the Closing Date with the same force and effect as if they had
been made by the Subscriber at the Closing Date and that they will survive the
purchase by the Subscriber of the Shares and will continue in full force and
effect notwithstanding any subsequent disposition by the Subscriber of such
Shares.

9.           
Resale Restrictions

9.1          
The Subscriber acknowledges that any resale of the Shares will be
subject to resale restrictions contained in the securities legislation
applicable to each Subscriber or proposed transferee as set forth in paragraph 6
of this Subscription Agreement. The Shares may not be offered or sold in the
United States unless registered in accordance with federal securities laws and
all applicable state securities laws or exemptions from such registration
requirements are available.

10.          
Legending and Registration of Subject Securities

10.1          The Subscriber hereby acknowledges that that upon the issuance thereof,
and until such time as the same is no longer required under the applicable
securities laws and regulations, the certificates representing any of the Shares
will bear a legend in substantially the following form:

If the Subscriber is a US person:

	
      “NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT
      SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED,
      NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES OR, DIRECTLY OR
      INDIRECTLY, TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH
      APPLICABLE STATE SECURITIES LAWS.” 

If the Subscriber is a non-US person:

	
      THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
      OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED
      HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF
      1933, AS AMENDED (THE "1933 ACT"). 

	  
	
      NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN
      REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND,
      UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY,
      IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN
      ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT,
      PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR
      PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
      TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
      ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
      TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
      COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY
REGULATION S UNDER THE 1933 ACT.

- 9 -

10.2          The Subscriber hereby acknowledges and agrees to the Company making a
notation on its records or giving instructions to the registrar and transfer
agent of the Company in order to implement the restrictions on transfer set
forth and described in this Subscription Agreement.

11.          
Notices to Residents of the European Economic Area

11.1         
In relation to each member state of the European Economic Area (the
“EEA”) which has implemented Directive 2003/71/EC (the “Prospectus Directive”)
(each, a “Relevant Member State”), Shares may only be offered or sold in the
Relevant Member State under the following exemptions under the Prospectus
Directive, if they have been implemented in that Relevant Member State:

	 	(a) 	
      to legal entities which are authorised or regulated to
      operate in the financial markets or, if not so authorised or regulated,
      whose corporate purpose is solely to invest in securities;

	 	 	 
	 	(b) 	
      to any legal entity which has two or more of (1) an
      average of at least 250 employees during the last financial year; (2) a
      total balance sheet of more than €43,000,000; and (3) an annual net
      turnover of more than €50,000,000, as shown in its last annual or
      consolidated accounts;

	 	 	 
	 	(c) 	
      in any other circumstances falling within Article 3(2) of
      the Prospectus Directive;

provided that no such offer of Shares shall result in a
requirement for the publication by the Company of a prospectus pursuant to
Article 3 of the Prospectus Directive.

12.          
Costs

12.1          The Subscriber acknowledges and agrees that all costs and expenses
incurred by the Subscriber (including any fees and disbursements of any special
counsel retained by the Subscriber) relating to the purchase of the Shares shall
be borne by the Subscriber.

13.          
Governing Law

13.1         This Subscription Agreement is governed by the laws of the State of
Nevada and the federal laws applicable therein. The Subscriber, in its personal
or corporate capacity and, if applicable, on behalf of each beneficial purchaser
for whom it is acting, irrevocably attorns to the jurisdiction of the State of
Nevada.

14.          
Survival

14.1         This Subscription Agreement, including without limitation the
representations, warranties and covenants contained herein, shall survive and
continue in full force and effect and be binding upon the parties hereto
notwithstanding the completion of the purchase of the Shares by the Subscriber
pursuant hereto.

15.          
Assignment

15.1         This Subscription Agreement is not transferable or assignable.

16.          
Execution

16.1         The Company shall be entitled to rely on delivery by facsimile machine
of an executed copy of this Subscription Agreement and acceptance by the Company
of such facsimile copy shall be equally effective to create a valid and binding
agreement between the Subscriber and the Company in accordance with the terms
hereof.

- 10 -

17.          
Severability

17.1         The invalidity or unenforceability of any particular provision of this
Subscription Agreement shall not affect or limit the validity or enforceability
of the remaining provisions of this Subscription Agreement.

18.          
Entire Agreement

18.1         Except as expressly provided in this Subscription Agreement and in the
agreements, instruments and other documents contemplated or provided for herein,
this Subscription Agreement contains the entire agreement between the parties
with respect to the sale of the Shares and there are no other terms, conditions,
representations or warranties, whether expressed, implied, oral or written, by
statute or common law, by the Company or by anyone else.

19.          
Notices

19.1         All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given if mailed or transmitted by any standard
form of telecommunication. Notices to the Subscriber shall be directed to the
address on page 2 and notices to the Company shall be directed to it at the
first page of this Subscription Agreement.

20.          
Counterparts

20.1          This Subscription Agreement may be executed in any number of
counterparts, each of which, when so executed and delivered, shall constitute an
original and all of which together shall constitute one instrument.

- 11 -

APPENDIX 1

PROSPECTIVE INVESTOR SUITABILITY QUESTIONNAIRE

All capitalized terms herein, unless otherwise defined, have
the meanings ascribed thereto in the Subscription Agreement.

This Questionnaire is for use by each Subscriber who is a US
person (as that term is defined Regulation S of the United States Securities Act
of 1933 (the “1933 Act”)) and has indicated an interest in purchasing Shares of
TransAKT Ltd. (the “Company”). The purpose of this Questionnaire is to assure
the Company that each Subscriber will meet the standards imposed by the 1933 Act
and the appropriate exemptions of applicable state securities laws. The Company
will rely on the information contained in this Questionnaire for the purposes of
such determination. The Shares will not be registered under the 1933 Act in
reliance upon the exemption from registration afforded by Section 3(b) and/or
Section 4(6) of the 1933 Act. This Questionnaire is not an offer of Shares or
any other securities of the Company in any state other than those specifically
authorized by the Company.

All information contained in this Questionnaire will be treated
as confidential. However, by signing and returning this Questionnaire, each
Subscriber agrees that, if necessary, this Questionnaire may be presented to
such parties as the Company deems appropriate to establish the availability,
under the 1933 Act or applicable state securities law, of exemption from
registration in connection with the sale of the Shares hereunder.

The Subscriber covenants, represents and warrants to the
Company that it satisfies one or more of the categories of “Accredited
Investors”, as defined by Regulation D promulgated under the 1933 Act, as
indicated below: (Please initial in the space provide those categories, if any,
of an “Accredited Investor” which the Subscriber satisfies)

		________Category 1 	
      An organization described in Section 501(c)(3) of the
      United States Internal Revenue Code, a corporation, a Massachusetts or
      similar business trust or partnership, not formed for the specific purpose
    of acquiring the Shares, with total assets in excess of US $5,000,000;    

	 	  	
       

		________Category 2 	
      A natural person whose individual net worth, or joint net
      worth with that person’s spouse, on the date of purchase exceeds US
      $1,000,000; 

	 	  	
       

		________Category 3 	
      A natural person who had an individual income in excess
      of US $200,000 in each of the two most recent years or joint income with
      that person’s spouse in excess of US $300,000 in each of those years and
      has a reasonable expectation of reaching the same income level in the
      current year; 

	 	  	
       

		________Category 4 	
      A “bank” as defined under Section (3)(a)(2) of the 1933
      Act or savings and loan association or other institution as defined in
      Section 3(a)(5)(A) of the 1933 Act acting in its individual or fiduciary
      capacity; a broker dealer registered pursuant to Section 15 of the
      Securities Exchange Act of 1934 (United States); an insurance
      company as defined in Section 2(13) of the 1933 Act; an investment company
      registered under the Investment Company Act of 1940 (United
      States) or a business development company as defined in Section 2(a)(48)
      of such Act; a Small Business Investment Company licensed by the U.S.
      Small Business Administration under Section 301(c) or (d) of the Small
      Business Investment Act of 1958 (United States); a plan with total
      assets in excess of $5,000,000 established and maintained by a state, a
      political subdivision thereof, or an agency or instrumentality of a state
      or a political subdivision thereof, for the benefit of its employees; an
      employee benefit plan within the meaning of the Employee Retirement
      Income Security Act of 1974 (United States) whose investment decisions
      are made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank,
      savings and loan association, insurance company or registered investment
      adviser, or if the employee benefit plan has total assets in excess of
      $5,000,000, or, if a self- directed plan, whose investment decisions are
  made solely by persons that are accredited investors; 

- 12 -

		________Category 5 	
      A private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940 (United
      States); 

	 	  	
      

	 	________Category 6 	
  A director or executive officer of the Company;

	 	  	
      

		________Category 7 	
      A trust with total assets in excess of $5,000,000, not
      formed for the specific purpose of acquiring the Shares, whose purchase is
      directed by a sophisticated person as described in Rule 506(b)(2)(ii)
      under the 1933 Act; 

	 	  	
      

		________Category 8 	
      An entity in which all of the equity owners satisfy the
requirements of one or more of the foregoing categories;

Note that prospective Subscribers claiming to satisfy one of
the above categories of Accredited Investor may be required to supply the
Company with a balance sheet, prior years’ federal income tax returns or other
appropriate documentation to verify and substantiate the Subscriber’s status as
an Accredited Investor.

If the Subscriber is an entity which initialled Category 8 in
reliance upon the Accredited Investor categories above, state the name, address,
total personal income from all sources for the previous calendar year, and the
net worth (exclusive of home, home furnishings and personal automobiles) for
each equity owner of the said entity: 

	 
	 
	 
	
      The Subscriber hereby certifies that the information
      contained in this Questionnaire is complete and accurate and the
      Subscriber will notify the Company promptly of any change in any such
      information. If this Questionnaire is being completed on behalf of a
      corporation, partnership, trust or estate, the person executing on behalf
      of the Subscriber represents that it has the authority to execute and
      deliver this Questionnaire on behalf of such entity. 

	 
	IN WITNESS WHEREOF, the undersigned has executed this
      Questionnaire as of the day of _________________ , _______ .

	If a Corporation, Partnership or Other Entity: 	 	If an Individual: 
	  	 	  
	 	 	 
	Print of Type Name of Entity 	 	Signature 
	 	 	 
	 	 	 
	Signature of Authorized Signatory 	 	Print or Type Name 
	 	 	 
	 	 	 
	Type of Entity and Tax I.D. No. 	 	Social Security/Tax I.D. No.

- 13 -

All Subscribers resident in Canada must complete the
Canadian Questionnaire. 

APPENDIX 2

SCHEDULE A

CANADIAN QUESTIONNAIRE

All capitalized terms herein, unless otherwise defined, have
the meanings ascribed thereto in the Subscription Agreement.

The purpose of this Questionnaire is to assure the Company that
the Subscriber will meet certain requirements of National Instrument 45-106 ("NI
45-106"). The Company will rely on the information contained in this
Questionnaire for the purposes of such determination.

The Subscriber covenants, represents and warrants to the
Company that:

	 	1. 	
      the Subscriber has such knowledge and experience in
      financial and business matters as to be capable of evaluating the merits
      and risks of the transactions detailed in the Subscription Agreement and
      the Subscriber is able to bear the economic risk of loss arising from such
      transactions;

	 	 	 	 	 
	 	2. 	
      the Subscriber is (tick one or more of the following
      boxes):
	 
	 	 	 	 	 
	 		(A) 	
      a director, executive officer, employee or control person
      of the Company or an affiliate of the Company
	[   ]
	 	 	 	 	 
	 		(B) 	
      a spouse, parent, grandparent, brother, sister or child
      of a director, executive officer, founder or control person of the Company
      or an affiliate of the Company
	[   ] 
	 	 	 	 	 
	 		(C) 	
      a parent, grandparent, brother, sister or child of the
      spouse of a director, executive officer, founder or control person of the
      Company or an affiliate of the Company
	 [   ]
	 	 	 	 	 
	 		(D) 	
      a close personal friend of a director, executive officer,
      founder or control person of the Company
	 [   ]
	 	 	 	 	 
	 		(E) 	
      a close business associate of a director, executive
      officer, founder or control person of the Company or an affiliate of the
      Company
	[   ] 
	 	 	 	 	 
	 		(F) 	
      an accredited investor
	 [   ]
	 	 	 	 	 
	 		(G) 	
      a company, partnership or other entity of which a
      majority of the voting securities are beneficially owned by, or a majority
      of the directors are, persons described in paragraphs A to F
	 [   ]
	 	 	 	 	 
	 		(H) 	
      a trust or estate of which all of the beneficiaries or a
      majority of the trustees or executors are persons described in paragraphs
      A to F
	 [   ]
	 	 	 	 	 
	 		(I) 	
      purchasing as principal Securities with an aggregate
      acquisition cost of not less than CDN$150,000
	 [  
  ]

- 14 -

	 	3. 	
      if the Subscriber has checked box B, C, D, E, G or H in
      Section 2 above, the director, executive officer, founder or control
      person of the Company with whom the undersigned has the relationship
      is:

	 	 	 
	 		
	 	 	 
	 		
      (Instructions to Subscriber: fill in the name of each
      director, executive officer, founder and control person which you have the
      above-mentioned relationship with. If you have checked box G or H, also
      indicate which of A to F describes the securityholders, directors,
      trustees or beneficiaries which qualify you as box G or H and provide the
      names of those individuals. Please attach a separate page if
      necessary).

	 	 	 
	 	4. 	
      if the Subscriber is resident in Ontario, the Subscriber
      is (tick one or more of the following
boxes):

	 	(A) 	
      a founder of the Company
	[    ] 
	 	 	 	 
	 	(B) 	
      an affiliate of a founder of the Company
	 [    ] 
	 	 	 	 
	 	(C) 	
      a spouse, parent, brother, sister, grandparent or child
      of a director, executive officer or founder of the Company
	 [    ] 
	 	 	 	 
	 	(D) 	
      a person that is a control person of the Company
	 [    ] 
	 	 	 	 
	 	(E) 	
      an accredited investor
	 [    ] 
	 	 	 	 
	 	(F) 	
      purchasing as principal Securities with an aggregate
      acquisition cost of not less than CDN$150,000
	 [   
  ] 

	 	5. 	
      if the Subscriber has checked box A, B, C or D in Section
      4 above, the director, executive officer, founder or control person of the
      Company with whom the undersigned has the relationship is:

	 	 	 
	 		
	 	 	 
	 		
      (Instructions to Subscriber: fill in the name of each
      director, executive officer, founder, affiliate and control person which
      you have the above-mentioned relationship with.)

	 	 	 
	 	6. 	
      if the Subscriber has ticked box F in Section 2 or box E
      in Section 4 above, the Subscriber satisfies one or more of the categories
      of "accredited investor" (as that term is defined in NI 45-106) indicated
      below (please check the appropriate box):

		[   ] 	
      (a) a Canadian financial institution as defined in
      National Instrument 14-101, or an authorized foreign bank listed in
      Schedule III of the Bank Act (Canada); 

	 	  	
       

		[   ] 	
      (b) the Business Development Bank of Canada incorporated
      under the Business Development Bank Act (Canada); 

	 	  	
       

		[   ] 	
      (c) a subsidiary of any person referred to in any of the
      foregoing categories, if the person owns all of the voting securities of
      the subsidiary, except the voting securities required by law to be owned
      by directors of that subsidiary; 

	 	  	
       

		[   ] 	
      (d) an individual registered or formerly registered under
      securities legislation in a jurisdiction of Canada, as a representative of
      a person or company registered under securities legislation in a
      jurisdiction of Canada, as an adviser or dealer, other than a limited
      market dealer registered under the Securities Act (Ontario) or the
      Securities Act (Newfoundland); 

	 	  	
       

		[   ] 	
      (e) an individual registered or formerly registered under
      the securities legislation of a jurisdiction of Canada as a representative
      of a person referred to in paragraph (d); 

- 15 -

		[ ] 	
      (f) the government of Canada or a province, or any crown
      corporation or agency of the government of Canada or a province;

	 	  	
       

		[ ] 	
      (g) a municipality, public board or commission in Canada
      and a metropolitan community, school board, the Comite de gestion de la
      taxe scholaire de l'ile de Montreal or an intermunicipal management board
      in Québec; 

	 	  	
       

		[ ] 	
      (h) a national, federal, state, provincial, territorial
      or municipal government of or in any foreign jurisdiction, or any agency
      thereof; 

	 	  	
       

		[ ] 	
      (i) a pension fund that is regulated by either the Office
      of the Superintendent of Financial Institutions (Canada) or a pension
      commission or similar regulatory authority of a jurisdiction of Canada;
      

	 	  	
       

		[ ] 	
      (j) an individual who either alone or with a spouse
      beneficially owns, directly or indirectly, financial assets (as defined in
      NI 45-106) having an aggregate realizable value that, before taxes but net
      of any related liabilities, exceeds CDN$1,000,000; 

	 	  	
       

		[ ] 	
      (k) an individual whose net income before taxes exceeded
      CDN$200,000 in each of the two more recent calendar years or whose net
      income before taxes combined with that of a spouse exceeded $300,000 in
      each of those years and who, in either case, reasonably expects to exceed
      that net income level in the current calendar year; 

	 	  	
       

		[ ] 	
      (l) an individual who, either alone or with a spouse, has
      net assets of at least CDN $5,000,000; 

	 	  	
       

		[ ] 	
      (m) a person, other than an individual or investment
      fund, that had net assets of at least CDN$5,000,000 as reflected on its
      most recently prepared financial statements; 

	 	  	
       

		[ ] 	
      (n) an investment fund that distributes it securities
      only to persons that are accredited investors at the time of distribution,
      a person that acquires or acquired a minimum of CDN$150,000 of value in
      securities, or a person that acquires or acquired securities under
      Sections 2.18 or 2.19 of NI 45-106; 

	 	  	
       

		[ ] 	
      (o) an investment fund that distributes or has
      distributed securities under a prospectus in a jurisdiction of Canada for
      which the regulator or, in Québec, the securities regulatory authority,
      has issued a receipt; 

	 	  	
       

		[ ] 	
      (p) a trust company or trust corporation registered or
      authorized to carry on business under the Trust and Loan Companies Act
      (Canada) or under comparable legislation in a jurisdiction of Canada
      or a foreign jurisdiction, acting on behalf of a fully managed account
      managed by the trust company or trust corporation, as the case may be;
    

	 	  	
       

		[ ] 	
      (q) a person acting on behalf of a fully managed account
      managed by that person, if that person (i) is registered or authorized to
      carry on business as an adviser or the equivalent under the securities
      legislation of a jurisdiction of Canada or a foreign jurisdiction, and
      (ii) in Ontario, is purchasing a security that is not a security of an
      investment fund; 

	 	  	
       

		[ ] 	
      (r) a registered charity under the Income Tax Act
      (Canada) that, in regard to the trade, has obtained advice from an
      eligibility advisor or an advisor registered under the securities
      legislation of the jurisdiction of the registered charity to give advice
      on the securities being traded; 

	 	  	
       

		[ ] 	
      (s) an entity organized in a foreign jurisdiction that is
      analogous to any of the entities referred to in paragraphs (a) to (d) or
      paragraph (i) in form and function; 

- 16 -

		[ ] 	
      (t) a person in respect of which all of the owners of
      interests, direct, indirect or beneficial, except the voting securities
      required by law are persons or companies that are accredited investors;
      

	 	  	
       

		[ ] 	
      (u) an investment funds that is advised by a person
      registered as an advisor or a person that is exempt from registration as
      an advisor; or 

	 	  	
       

		[ ] 	
      (v) a person that is recognized or designated by the
      securities regulatory authority or, except in Ontario and Québec, the
      regulator as (i) an accredited investor, or (ii) an exempt purchaser in
      Alberta or British Columbia after this instrument comes into force;
  

The Subscriber acknowledges and agrees that the Subscriber may
be required by the Company to provide such additional documentation as may be
reasonably required by the Company and its legal counsel in determining the
Subscriber's eligibility to acquire the Securities under relevant
legislation.

     IN WITNESS WHEREOF, the
undersigned has executed this Questionnaire as of the ________day of
__________________, ________.

	If an Individual: 	 	If a Corporation, Partnership or Other Entity:
    
	 	 	 
	 	 	 
	Signature 	 	Print or Type Name of Entity 
	 	 	 
	 	 	 
	Print or Type Name 	 	Signature of Authorized Signatory 
	 	 	 
	 	 	 
	  	 	Type of Entity

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}]]