Document:

ex10-1.htm

Exhibit 10.1

 

 

 

 

SUBLEASE

 

 

by and between

 

 

NOVABAY PHARMACEUTICALS, INC., 
a Delaware corporation,

 

as Sublandlord,

 

 

and

 

 

ZYMERGEN, INC., 
a Delaware corporation,

 

as Subtenant,

 

 

at

 

Suite 550, EmeryStation North Building, 5980 Horton Street, Emeryville, CA

 

 

 

1

 

 

SUBLEASE

 

THIS SUBLEASE (“Sublease”) is made as of July 11, 2016, by and between NOVABAY PHARMACEUTICALS, INC., a Delaware corporation (“Sublandlord”), and ZYMERGEN, INC., a Delaware corporation (the “Subtenant”) with reference to the following facts:

 

R E C I T A L S

 

A.     Sublandlord is the tenant under that certain Office Lease dated as of June 3, 2004, as amended by First Amendment dated June 22, 2004, by Second Amendment dated July 22, 2004, by Third Amendment dated March 25, 2005, by Fourth Amendment dated September 30, 2006, by Fifth Amendment dated November 20, 2007, by Sixth Amendment dated September 1, 2008, by Seventh Amendment whose effective date was March 1, 2012, and by Eighth Amendment dated April 10, 2013 (collectively, the “Lease”) with Emery Station Office II, LLC, a California limited liability company (“Landlord”), pursuant to which Sublandlord leases from Landlord and Landlord leases to Sublandlord certain office and laboratory space comprising approximately 16,465 rentable square feet (the “Master Premises”) located at EmeryStation North Building, 5980 Horton Street, Emeryville, CA (the “Project” or “Building”).

 

B.     Sublandlord desires to sublease to Subtenant, and Subtenant desires to sublease from Sublandlord, the Master Premises incorporated herein by this reference (the “Sublease Premises”), upon the terms, covenants and conditions set forth in this Sublease and per the allowances for this Sublease provided in the Lease.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.            CAPITALIZED TERMS. All capitalized terms when used herein shall have the same meaning as is given such terms in the Lease, unless expressly superseded by the terms of this Sublease.

 

2.             SUBLEASE.

 

(a)      Grant of Sublease. Pursuant to the express terms, covenants and conditions set forth in this Sublease, Sublandlord hereby subleases to Subtenant and Subtenant hereby subleases from Sublandlord, the Sublease Premises on an “as-is,” “where-is” basis, subject to the terms of Section 2(b) below.

 

(b)     Condition of Sublease Premises. Except as may expressly be set forth herein, no representations or warranties of any kind have been made by Sublandlord, or any party on behalf of Sublandlord, to Subtenant concerning the condition of the Sublease Premises, nor have any promises to alter or improve the Sublease Premises been made by Sublandlord or any party on behalf of Sublandlord. Subtenant is subleasing the Sublease Premises from Sublandlord after having had an opportunity to fully inspect the entire Sublease Premises and the right not to execute this Sublease if the results of said inspection were unacceptable. Subtenant hereby agrees that the term “as is”, as used in the previous subsection, means Subtenant is agreeing to sublease the Sublease Premises without warranty or representation as to the physical condition of the Sublease Premises and/or the compliance of same with building, fire, health and zoning codes and other applicable laws, ordinances and regulations. Sublandlord hereby expressly disclaims any and all warranties or representations set forth in the Lease that were made by Landlord to Sublandlord therein and any warranties or representations made to Subtenant, whether the same were made by any partner, officer, director, employee or agent of Sublandlord, whether oral or written, express or implied.

 

 

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3.             TERM. The term of this Sublease (“Term”) shall commence on the earlier of (i) Sublandlord vacating the Sublease Premises entirely, currently estimated to be September 1, 2016, but in no case later than October 31, 2016. This sublease term shall expire on October 21, 2020 unless this Sublease is sooner terminated pursuant to any provision of this Sublease or the Lease.

 

4.             RENT.

 

(a)    Base Rent. The Monthly Base Rent due and payable for the entirety of the Subtenant’s Premises shall be $58,450.75. That Monthly Base Rent is calculated at $3.55 per rentable square feet multiplied against 16,465 rentable square feet. That Monthly Base Rent amount shall increase three percent (3%) upon the first anniversary of the Sublease commencement date and annually thereafter throughout the Sublease Term. Monthly detail of the rent is detailed in Exhibit A.

 

(b)     Rent Commencement. The rent commencement shall take place ninety (90) days from the Sublease commencement date.

 

(c)     Base Rent Abatement. In lieu of additional free rent in the initial portion of the Term, necessary to off-set construction costs, Subtenant shall receive base rental abatement later in the term in accordance with the following schedule: January 2018, July 2018, January 2019, and October 2020.

 

(d)     Operating Expenses. In addition to the base rent, Subtenant will be responsible for Sublandlord’s proportionate share of the Building’s operating expenses, utilities costs and tax expenses (collectively, the “Expenses”).

 

5.          SECURITY DEPOSIT. Three (3) month’s rent, based on the monthly rental amount during the 50th month of the term, September 2020: $197,580.

 

6.          USE.

 

(a)     General. The Sublease Premises shall be used for general office and laboratory use consistent with the provisions of the Lease and shall not be used or permitted to be used for any other purpose without the prior written consent of Sublandlord and Landlord, which consent shall not be unreasonably withheld by Sublandlord or Landlord, as the case may be.

 

(b)     Parking. Subtenant’s parking allocation will be pursuant to the Lease. Subtenant shall be entitled under the Sublease to use up to a total of sixty (60) unreserved parking stalls in the Terraces Garage at the Landlord’s quoted rates. Subtenant shall have the right to five (5) spaces of its total parking allotment be so-called “premium” spaces located in the parking garage in the ground level of the Building, for which Subtenant shall pay Landlord’s quoted rates for such premium spaces.

 

 

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(c)     Signage. Subtenant, subject to Landlord’s approval, shall have the right to install Subtenant’s identity signage at the entrance to the Sublease Premises and to have its name on the Building’s directory board.

 

7.             LEASE.

 

(a)     As applied to this Sublease, the words “Landlord” and “Tenant” as used in the Lease shall be deemed to refer to Sublandlord and Subtenant hereunder, respectively, unless otherwise provided in the Lease and except where Landlord, Sublandlord or Subtenant, respectively, may solely possess unique rights and obligations under the Lease. Subtenant and this Sublease shall be subject in all respects to the terms of, and the rights of Landlord under the Lease. Subtenant acknowledges receipt of a true and correct copy of the Lease. Subtenant confirms that it has read the Lease and is familiar with the terms and provisions thereof. Except as otherwise expressly provided herein, the covenants, agreements, terms, provisions and conditions of the Lease insofar as they relate to the Sublease Premises and insofar as they are not inconsistent with the terms of this Sublease are made a part of and incorporated into this Sublease as if recited herein in full, and the rights and obligations of Landlord and the Tenant under the Lease shall be deemed the rights and obligations of Sublandlord and Subtenant respectively hereunder and shall be binding upon and inure to the benefit of Sublandlord and Subtenant respectively, (i) unless otherwise provided in the Lease and except where Landlord, Sublandlord or Subtenant, respectively, may solely possess unique rights and obligations under the Lease, and (ii) except that the time limits contained in the Lease for the giving of notices, making of demands, or performing of any act, condition or covenant on the part of Subtenant as tenant under the Lease or for the exercise by Sublandlord as landlord under the Lease of any right, remedy or option, are changed for the purposes of incorporation herein by shortening the same in each instance by two (2) business days so that in each instance Subtenant shall have two (2) business days less time to observe or perform under this Sublease than Sublandlord has as tenant under the Lease. As between the parties hereto only, in the event of a conflict between the terms of the Lease and the terms of this Sublease, the terms of this Sublease shall control only to the extent they are inconsistent with the terms of the Lease and their respective counterpart provisions in the Lease shall be excluded only to such extent; provided, however, that in no event shall any provisions of this Sublease control to the extent any inconsistencies between this Sublease and the Lease would represent a breach of material terms and conditions of the Lease or otherwise subject Subtenant to any direct or indirect liability.

 

(b)     Option to Renew. Pursuant to the Lease.

 

(c)     Sub-Sublet & Assignment. Pursuant to the Lease.

 

(d)    Subtenant Improvements. Subject to the terms of the Lease, Subtenant shall be allowed to go directly to Landlord for any and all approval of contemplated design and construction of the premises.

 

(e)     Building Warranty. Pursuant to the Lease.

 

 

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8.             EXCLUDED LEASE PROVISIONS. Notwithstanding anything to the contrary herein, the following provisions of the Lease shall not apply to this Sublease: Sections 1.1, 2.2, 2.4, 2.5, 2.6, Articles 3, 4 and 5, Articles 13 and 22, Exhibits A and B, and the 4th, 5th, and 6th Amendments to the Lease.

 

9.             LANDLORD’S PERFORMANCE UNDER LEASE. Subtenant recognizes that Sublandlord, pursuant to its rights under the Lease, may not have the legal or contractual right to render certain of the services or to perform certain of the obligations required by Sublandlord by the terms of this Sublease, as set forth in Exhibit B hereto. Therefore, except as expressly set forth herein, Subtenant acknowledges and Sublandlord warrants and agrees that performance by Sublandlord of its obligations with respect to those items are subject to due performance by Landlord of its corresponding obligations under the Lease. Sublandlord shall not be liable to Subtenant for any default of Landlord under the Lease for any items that Landlord expressly is solely responsible for performing, whether under the Lease or in a separate writing. Subject to the foregoing, Subtenant shall not have any claim against Sublandlord by reason of Landlord’s failure or refusal to comply with any of the provisions of the Lease. Subtenant covenants and warrants that it fully understands and agrees to be subject to and bound by all of the covenants, agreements, terms, provisions and conditions of the Lease, except as modified herein. Furthermore, Subtenant further covenants not to take any action or do or perform any act or fail to perform any act which would result in the failure or breach of any of the covenants, agreements, terms, provisions or conditions of the Lease on the part of the “Tenant” thereunder. The foregoing notwithstanding, Sublandlord hereby covenants and agrees that it shall use all commercially reasonable efforts to (a) fulfill its remaining obligations under the Lease following the execution of this Sublease (e.g., meeting its obligations to timely pay rent to Landlord), (b) to render all services and perform all obligations to Subtenant it is legally and contractually able to perform under this Sublease and the Lease, and (c) timely coordinate and cooperate with Landlord in procuring for Subtenant services and the fulfillment of obligations under the Lease that only Landlord may legally or contractually perform.

 

10.           CONSENTS. All references in this Sublease to the consent or approval of Landlord and/or Sublandlord shall be deemed to mean the written consent or approval of Landlord and/or Sublandlord, as the case may be (unless otherwise provided in the Lease and except where Landlord, Sublandlord or Subtenant, respectively, may solely possess unique rights and obligations under the Lease for providing or receiving consent), on a form reasonably approved by Subtenant and no consent or approval of Landlord and/or Sublandlord, as the case may be, shall be effective for any purpose unless such consent or approval is set forth in a written instrument executed by Landlord and/or Sublandlord, as the case may be. If Sublandlord has determined to give its consent or approval, Sublandlord shall cooperate reasonably with Subtenant in endeavoring to obtain Landlord’s consent or approval upon and subject to the following terms and conditions: (1) Subtenant shall reimburse Sublandlord for any reasonable out-of-pocket costs incurred by Sublandlord in connection with seeking such consent or approval; (2) Sublandlord shall not be required to make any payments to Landlord or to enter into any agreements or to modify the Lease or this Sublease in order to obtain any such consent or approval; and (3) if Subtenant agrees or is otherwise obligated to make any payments to Sublandlord or Landlord in connection with such request for such consent or approval, Subtenant shall have made arrangements for such payments which are reasonably satisfactory to Sublandlord. Nothing contained in this Section 10 shall be deemed to (A) require Sublandlord to give any consent or approval because Landlord has given such consent or approval, or (B) require Subtenant to make additional payments to Sublandlord in order to obtain Sublandlord’s consent to a request otherwise approved, or to be approved, by Landlord.

 

 

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11.           CONSENT OF LANDLORD. This Sublease shall not be effective until Landlord has signed and delivered to Sublandlord and Subtenant a consent to this Sublease (the “Consent”). Promptly following execution and delivery hereof, Sublandlord will submit this Sublease to Landlord for such consent. Subtenant agrees that it shall cooperate in good faith with Sublandlord and shall comply with any reasonable request made of Subtenant by Sublandlord or Landlord in connection with the procurement of the Consent. In the event, for any reason whatsoever, the Consent is not delivered to Sublandlord within forty-five (45) calendar days after Sublandlord’s request therefor from Landlord, Sublandlord may, in its sole discretion, cancel this Sublease by giving written notice to Subtenant before the Consent is actually delivered to Sublandlord. Subtenant shall reimburse Sublandlord on demand (or, at Sublandlord’s option, pay directly to Landlord) any processing charge or other charges from Landlord relating to this Sublease.

 

12.          NOTICES. Any and all notices, approvals or demands required or permitted under this Sublease shall be in writing, shall be served either personally, by United States certified mail, postage prepaid, return receipt requested or by reputable overnight carrier and, shall be deemed to have been given or made on the day on which it was received and shall be addressed to the parties at the addresses set forth below. Any party may, from time to time, by like notice, give notice of any change of address, and in such event, the address of such party shall be deemed to have been changed accordingly. The address for each party is:

 

	
If to Sublandlord:  
	
NovaBay Pharmaceuticals, Inc.  

	
 
	
Suite 550  

	
 
	
5980 Horton Street  

	
 
	
Emeryville, California 94608  

	
 
	
Attn: CEO  

	
 
	
 
	
With Copies to Legal Department

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	If to Subtenant:	 	 
	 	 	 
	
 
	
Zymergen, Inc.

	
 
	
6121 Hollis St., Suite 700

	
 
	
Emeryville, CA 94608

13.           BROKERS. Subtenant’s broker is Newmark Cornish and Carey (“Subtenant’s Broker”) and Sublandlord’s broker is Kidder Matthews (“Sublandlord’s Broker” and collectively with Subtenant’s Broker, the “Brokers”). Sublandlord shall pay a leasing commission to the Brokers pursuant to a separate agreement. Each party represents and warrants to the other party that it has not had any dealings with any real estate broker, finder, or other person with respect to this Lease other than Subtenant’s Broker and Sublandlord’s Broker and each party shall hold harmless the other party from all damages, expenses, and liabilities resulting from any claims that may be asserted against the other party by any broker, finder, or other person with whom the other party has or purportedly has dealt, other than the above named brokers.

 

 

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If Sublandlord fails to pay any amounts towards the Commissions on or before the date due as part of a Sublease, Sublandlord agrees that upon thirty (30) days written notice, Subtenant shall be allowed to pay those expenses and offset those costs against Base Rent, Operating Expenses and Taxes that would otherwise be due.

 

14.           INSURANCE.

 

(a)     Proceeds and Awards. Notwithstanding anything contained in the Lease to the contrary, as between Sublandlord and Subtenant only, all insurance proceeds (other than those proceeds paid out on insurance obtained by Subtenant) or condemnation awards claimed and received by Sublandlord under the Lease shall be deemed to be the property of Sublandlord.

 

(b)     Requirements. Subtenant shall comply with all of the insurance requirements and obligations of Sublandlord (applicable to the Sublease Premises) made known and verified to Subtenant in writing, as tenant under the Lease, and shall, whether required by the Lease or not, name Landlord and Sublandlord as additional insureds, as their interests may appear, on all policies of insurance required to be carried by Subtenant hereunder or thereunder.

 

15.          INDEMNITY. Subtenant hereby agrees to indemnify, protect, defend and hold Sublandlord, its shareholders, affiliates, assignees, transferees and successors and their respective employees, officers and/or agents, harmless from and against any and all claims, losses and damages including, without limitation, reasonable attorneys’ fees and disbursements, (a) which may at any time be asserted by (1) Landlord for failure of Subtenant to perform any of the covenants, agreements, terms, provisions or conditions contained in the Lease which by reason of the provisions of this Sublease Subtenant is obligated to perform, or (2) any person or entity by reason of Subtenant’s use and/or occupancy of the Sublease Premises, and (b) resulting from any failure by Subtenant to comply with the terms of this Sublease and the Lease, except to the extent any of the foregoing is caused by the gross negligence or willful misconduct of Sublandlord, its shareholders, affiliates, assignees, transferees and successors and their respective employees, officers and/or agents. The provisions of this Section 15 shall survive the expiration or earlier termination of the Lease and/or this Sublease.

 

16.          ASSIGNMENT AND SUBLETTING. Subtenant shall have no right to assign this Sublease or sublease all or any portion of the Sublease Premises without Sublandlord’s prior written consent, which consent may be withheld in Sublandlord’s sole discretion. In addition to Sublandlord’s consent, Subtenant must also have procured the written consent of Landlord to the extent required pursuant to the Lease.

 

17.           MISCELLANEOUS.

 

(a)     Severability. If any term or provision of this Sublease or the application thereof to any person or circumstances shall, to any extent, be invalid and unenforceable, the remainder of this Sublease or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term or provision of this Sublease shall be valid and be enforced to the fullest extent permitted by law.

 

 

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(b)     Entire Agreement; Waiver. This Sublease contains the entire agreement between the parties hereto and shall be binding upon and inure to the benefit of their respective heirs, representatives, successors and permitted assigns. Any agreement hereinafter made shall be ineffective to change, modify, waive, release, discharge, terminate or effect an abandonment hereof, in whole or in part, unless such agreement is in writing and signed by the parties hereto.

 

(c)     Further Assurances. The parties hereto agree that each of them, upon the request of the other party, shall execute and deliver, in recordable form if necessary, such further documents, instruments or agreements and shall take such further action that may be necessary or appropriate to effectuate the purposes of this Sublease.

 

(d)     Attorneys’ Fees. In the event of the bringing of any action or suit by any party or parties hereto against another party or parties hereunder alleging a breach of any of the covenants, conditions, agreements or provisions of this Sublease, the prevailing party or parties shall recover all reasonable costs and expenses of suit including, without limitation, reasonable attorneys’ fees, consultants fees and fees of expert witnesses.

 

(e)     Choice of Law. This Sublease shall be governed by and construed in accordance with the laws of the State of California without regard to choice of law principles.

 

(f)     Power and Authority. Each of the persons executing this Sublease on behalf of Subtenant and Sublandlord respectively warrants and represent to the other that they have full power and authority to execute this Sublease and bind their respective parties hereto.

 

(g)     Counterparts. This Sublease may be executed in one or more counterparts, each of which shall be deemed original, and all of which together shall constitute one and the same instrument.

 

(h)     WAIVER OF JURY TRIAL. TO THE FULL EXTENT PERMITTED BY LAW, SUBTENANT AND SUBLANDLORD EACH HEREBY WAIVES ANY RIGHT THAT EITHER MAY HAVE TO TRIAL BY JURY IN ANY SUMMARY PROCEEDING OR OTHER ACTION OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS SUBLEASE, WITH THE RELATIONSHIP OF SUBLANDLORD TO SUBTENANT, OR WITH THE SUBLEASE PREMISES AND THE USE AND OCCUPANCY THEREOF.

 

[Signature Page Follows]

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this Sublease to be effective as of the day and year first above written.

 

	
 
	
SUBLANDLORD:
	
 

	 	 	 
	 	NOVABAY PHARMACEUTICALS, INC., 	 
	 	a Delaware corporation	 
	
 
	
 
	 	
 
	
 

	
 
	
 
	 	
 
	
 

	
 
	
By: 
	/s/ Mark M. Sieczkarek	
 

	 	 	 	 	 
	
 
	
 
	
Name: Mark M. Sieczkarek
	
 

	
 
	
 
	 	
 
	
 

	 	 	Its: CEO	 
	 	 	 	 	 
	 	 	 	 	 
	 	SUBTENANT:	 
	 	 	 	 	 
	 	ZYMERGEN, INC., 	 
	 	a Delaware corporation	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Joshua Hoffman	 
	 	 	 	 	 
	 	 	Name: Joshua Hoffman	 
	 	 	 	 	 
	 	 	Its: CEO	 

 

9ex-10.1

 THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND ARE PROPOSED TO BE ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT. UPON ANY SALE, SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT AND IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. 
 

 

 DEBT SETTLEMENT AGREEMENT
 

 THIS AGREEMENT is made effective as of the 11th day of July, 2016.
 

 BETWEEN:
 HAMPSHIRE INFOTECH SDN, a company with an address of
 

 156 Jalan Utama, 10450 Georgetown, Malaysia
 

 (the "Creditor")
 OF THE FIRST PART
 

 AND: 
 VGRAB COMMUNICATIONS INC., a British Columbia company with a corporate office at Suite 810, 789 West Pender Street, Vancouver, British Columbia, V6C 1H2
 

 (the “Company")
 OF THE SECOND PART
 

 WHEREAS:
 

 A.
 As of the date of this Agreement, the Company was indebted to the Creditor in the amount of the Indebtedness for services provided by the Creditor; and
 

 B.
 The Creditor and the Company have agreed to settle the Indebtedness by issuance to the Creditor of  common shares of the Company at a price of $0.12 per share on the terms and conditions set out herein,
 

 THE PARTIES HEREBY AGREE AS FOLLOWS:
 

 1.
 DEFINITIONS
 

 1.1
 The following terms will have the following meanings for all purposes of this Agreement.
 

 (a)
 "Agreement" means this Debt Settlement Agreement, and all schedules and amendments to in the Agreement;
 

 (b)
 "Exchange Act" means the United States Securities Exchange Act of 1934, as amended;
 

 (c)
 “Indebtedness” means the indebtedness of the Company to the Creditor in the amount of $359,394.22, consisting of the principal amount of $330,000 and interest accrued there on of $29,394.22;
 

 (d)
 “MI 51-105” means Multilateral Instrument 51-105 – Issuers Quoted in the U.S. Over-the-Counter Markets of the Canadian Securities Administrators, as amended;
 

 (e)
 “NI 45-106” means National Instrument 45-106 – Prospectus and Registration Exemptions of the Canadian Securities Administrators, as amended;
 

 
 

 (f)
 “Offered Securities” means the Shares;
 

 (g)
 "Offering" means the offering of the Offered Securities being made by the Company pursuant to this Agreement;
 

 (h)
 “Purchase Price” means the purchase price payable by the Creditor to the Company in consideration for the purchase and sale of the Shares in accordance with Section 2.1 of this Agreement;
 

 (i)
 "SEC" means the United States Securities and Exchange Commission;
 

 (j)
 "Securities Act" means the United States Securities Act of 1933, as amended; 
 

 (k)
 "Shares" means common shares of the Company.
 

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

 2.
 PURCHASE AND SALE OF SHARES
 

 2.1
 Subject to the terms and conditions of this Agreement, the Creditor hereby subscribes for and agrees to purchase from the Company 2,994,951 Shares at a price equal to $0.12 per Share (the “Purchase Price”).  Upon execution, the subscription by the Creditor for the Shares will be irrevocable.
 

 2.2
 Notwithstanding any other provision of this Agreement, the Company’s obligation to issue Shares to the Creditor under the terms of this Agreement is conditional upon the Offering and the sale of the Shares to the Creditor complying with all securities laws and other applicable laws of the jurisdiction in which the Creditor is resident.  The Creditor agrees to deliver to the Company all other documentation, agreements, representations and requisite government forms required by the lawyers for the Company as required to comply with all securities laws and other applicable laws of the jurisdiction of the Creditor.
 

 2.3
 The Creditor hereby authorizes and directs the Company to deliver the securities to be issued to such Creditor pursuant to this Agreement to the Creditor’s address indicated on the first page of this Agreement.
 

 3.
 SETTLEMENT OF INDEBTEDNESS
 

 3.1
 The Company and the Creditor agree to offset the full amount of the Purchase Price against the full amount of the Indebtedness.  
 

 3.2
 Forthwith upon the execution of this Agreement by the Creditor and the Company, the Company agrees to deliver to the Creditor a share certificate representing the Shares issuable under this Agreement.
 

 3.3
 Upon the delivery by the Company of the share certificate representing the Shares issuable under this Agreement, the Creditor agrees to remise, release and forever discharge the Company and its respective directors, officers, servants and agents (collectively the “Releasees”) from any and all debts, obligations, claims, demands, dues, actions and causes of action whatsoever, at law or in equity, and whether known or unknown, suspected or unsuspected which the Creditor has or may in the future have against the Releasees or any of them with respect to any matter relating to the Indebtedness, whether on account of principal, interest or otherwise.
 

 4.
 U.S. RESTRICTED SHARE AGREEMENTS OF THE CREDITOR
 

 4.1
 The Creditor represents and warrants to the Company that the Creditor is not a “U.S. Person” as defined by Regulation S of the Securities Act and is not acquiring the Shares for the account or benefit of a U.S. Person.  A copy of the definition of a US Person as set out in Regulation S is attached as Schedule A to this Agreement.
 

 4.2
 The Creditor acknowledges, represents and warrants to the Company that the Creditor was not in the United States both at the time the offer to purchase the Shares was received and at the time the Creditor’s decision to purchase the Shares was made. 
 

 

 
 

 4.3
 The Creditor acknowledges that the Shares are “restricted securities” within the meaning of the Securities Act and will be issued to the Creditor in accordance with Regulation S of the Securities Act.
 

 4.4
 The Creditor agrees not to engage in hedging transactions with regard to the Shares unless in compliance with the Securities Act.
 

 4.5
 The Creditor agrees to resell the Shares only in accordance with the provisions of Regulation S of the Securities Act, pursuant to an effective registration statement under the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act, and in each case in accordance with any applicable state securities laws.  The Creditor further agrees that the Company will refuse to register any transfer of the Shares not made in accordance with the provisions of Regulation S of the Securities Act, pursuant to an effective registration statement under the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act, and in each case in accordance with any applicable state securities laws. 
 

 4.6
 The Creditor acknowledges and agrees that all certificates representing the Shares will be endorsed with restrictive legends substantially similar to the following in accordance with Regulation S of the Securities Act and MI 51-105: 
 

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

 “THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY IN OR FROM A JURISDICTION IN CANADA UNLESS THE CONDITIONS IN SECTION 13 OF MULTILATERAL INSTRUMENT 51-105 ISSUERS QUOTED IN THE U.S. OVER-THE-COUNTER MARKETS ARE MET.”
 

 5.
 ADDITIONAL AGREEMENTS, COVENANTS, REPRESENTATIONS AND WARRANTIES OF THE CREDITOR
 

 The Creditor agrees, covenants, represents and warrants with and to the Company as follows, and acknowledges that the Company is relying upon such agreements, covenants, representations and warranties in connection with the sale of the Shares to such Creditor:
 

 5.1
 The Creditor is an “accredited investor” as that term is defined in NI 45-106 and the Creditor has completed, signed, and delivered with this Agreement, a copy of the Canadian Accredited Investor Certificate and Risk Acknowledgement Form attached as Schedules A and B to this Agreement.
 

 5.2
 The Creditor acknowledges and agrees that (i) the Company is an “OTC reporting issuer” as that term is defined in MI 51-105, (ii) the Offered Securities may not be traded in or from a jurisdiction in Canada unless the following conditions have been met, (iii) the Creditor will comply with such conditions in making any trade of the Offered Securities in or from a jurisdiction in Canada and (iv) the Company will refuse to register any transfer of the Offered Securities made in connection with a trade of the Offered Securities in or from a jurisdiction in Canada and not made in accordance with the provisions of MI 51-105:
 

 (a)
 A four month period has passed from the later of (i) the date that the Company distributed the Offered Securities, and (ii) the date the Offered Securities were distributed by a control person of the Company;
 

 (b)
 If the person trading the Offered Securities is a control person of the Company, such person has held the Offered Securities for at least 6 months;
 

 
 

 (c)
 The number of Offered Securities that the person proposes to trade, plus the number of securities of the same class that such person has traded in the preceding 12 months, does not exceed 5% of the Company’s outstanding securities of the same class;
 

 (d)
 The trade is made through an investment dealer registered in a jurisdiction in Canada;
 

 (e)
 The investment dealer executes the trade through any of the over-the-counter markets in the United States;
 

 (f)
 There has been no unusual effort made to prepare the market or create a demand for the Offered Securities;
 

 (g)
 No extraordinary commission or other consideration is paid to a person for the trade;
 

 (h)
 If the person trading the Offered Securities is an insider of the Company, the person reasonably believes that the Company is not in default of securities legislation; and
 

 (i)
 All certificates representing the Offered Securities bear the Canadian restrictive legend set out in Section 13(1) of MI 51-105.
 

 5.3
 The Creditor represents and warrants that it is a resident of the jurisdiction specified in the Creditor’s address  as set out in the first page to this Agreement and that it does not presently intend to trade any of the Offered Securities in or from a jurisdiction in Canada.  If the Creditor does, in the future, intend to trade the Offered Securities in or from a jurisdiction in Canada, it will, in addition to complying with the provisions of Section 4.2, re-submit all certificates representing the Offered Securities to the Company for purposes of having the legend set out in Section 13(1) of MI 51-105 endorsed on such certificates.
 

 5.4
 The Creditor acknowledges that an investment in the Company is highly speculative, and involves a high degree of risk as the Company is in the early stages of developing its business, and may require substantial funds in addition to the proceeds of this private placement, and that only creditors who can afford the loss of their entire investment should consider investing in the Company.  The Creditor is an investor in securities of businesses in the development stage and acknowledges that the Creditor is able to fend for himself/herself/itself, can bear the economic risk of the Creditor's investment, and has such knowledge and experience in financial or business matters such that the Creditor is capable of evaluating the merits and risks of an investment in the Company’s securities as contemplated in this Agreement.  
 

 5.5
 If the Creditor is not an individual, was not organized for the purpose of acquiring the Offered Securities.
 

 5.6
 The Creditor has had full opportunity to review the Company’s periodic filings with the SEC pursuant to the Exchange Act, and the Company’s filings on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR), including, but not limited to, the Company’s annual reports, quarterly reports, current reports and additional information regarding the business and financial condition of the Company.  The Creditor has had full opportunity to ask questions and receive answers from the Company regarding this information, and to review and discuss this information with the Creditor's legal and financial advisors.  The Creditor believes he/she/it has received all the information he/she/it considers necessary or appropriate for deciding whether to purchase the Shares and that the Creditor has had full opportunity to discuss this information with the Creditor’s legal and financial advisors prior to executing this Agreement.
 

 5.7
 The Creditor acknowledges that the offering of the Offered Securities by the Company has not been reviewed by the SEC or any other securities commission or regulatory body, and that the Offered Securities are being issued by the Company pursuant to an exemption from registration under the Securities Act and an exemption from the prospectus requirements under applicable Canadian securities laws.
 

 5.8
 The Creditor understands that the Offered Securities will be characterized as "restricted securities" under the Securities Act as they are being acquired from the Company in a transaction not involving a public offering and that, under the Securities Act and the regulations promulgated thereunder, such securities may be resold without registration under the Securities Act only in certain limited circumstances. The Creditor represents that the Creditor is familiar with SEC Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.
 

 
 

 5.9
 The Offered Securities will be acquired by the Creditor for investment for the Creditor's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Creditor has no present intention of selling, granting any participation in, or otherwise distributing the same.  The Creditor does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Offered Securities.
 

 5.10
 The Creditor is not aware of any advertisement or general solicitation regarding the offer or sale of the Company’s securities.
 

 5.11
 This Agreement has been duly authorized, validly executed and delivered by the Creditor.
 

 5.12
 The Creditor acknowledges that this Agreement and the Schedules hereto require the Creditor to provide certain personal information to the Company.  Such information is being collected by the Company for the purposes of completing the Offering, which includes, without limitation, determining the Creditor's eligibility to purchase the Offered Securities and any other securities issuable hereunder under applicable securities laws, or preparing and registering certificates representing the Offered Securities to be issued to the Creditor, as the case may be, and completing filings required by any stock exchange or securities regulatory authority. The Creditor's personal information may be disclosed by the Company to stock exchanges or securities or other regulatory authorities, and any of the other parties involved in the Offering, including the Company’s legal counsel, and may be included in record books in connection with the Offering. By executing this Agreement, the Creditor is deemed to be consenting to the foregoing collection, use and disclosure of the Creditor's personal information. The Creditor also consents to the filing of copies or originals of any of the Creditor's documents described herein as may be required to be filed with any stock exchange or securities or other regulatory authority in connection with the transactions contemplated hereby. 
 

 5.13
 The Creditor has satisfied himself/herself/itself as to the full observance of the laws of the Creditor's jurisdiction in connection with any invitation to subscribe for the Offered Securities or any use of this Agreement, including (i) the legal requirements within the Creditor's jurisdiction for the purchase of the Offered Securities; (ii) any foreign exchange restrictions applicable to such purchase; (iii) any governmental or other consents that may need to be obtained; (iv) the income tax and other tax consequences, if any, that may be relevant to an investment in the Offered Securities; and (v) any restrictions on transfer applicable to any disposition of the Offered Securities imposed by the jurisdiction in which the Creditor is resident.
 

 6.
 REPRESENTATIONS BY THE COMPANY
 

 6.1
 The Company represents and warrants to the Creditor that:
 

 (a)
 The Company is a corporation duly organized, existing and in good standing under the laws of the Province of British Columbia and has the corporate power to conduct the business which it conducts and proposes to conduct.
 

 (b)
 The Shares, when issued in accordance with the terms and conditions of this Agreement, will be duly and validly issued, fully paid and non-assessable common shares in the capital of the Company.
 

 7.
 MISCELLANEOUS
 

 7.1
 Any notice or other communication given hereunder shall be deemed sufficient if in writing and sent by registered or certified mail, return receipt requested, addressed to the Company, at its corporate office at Suite 810, 789 West Pender Street, Vancouver, British Columbia V6C 1H2, and to the Creditor at his/her/its address indicated on the last page of this Agreement. Notices shall be deemed to have been given on the date of mailing, except notices of change of address, which shall be deemed to have been given when received.
 

 7.2
 The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of this Agreement.
 

 

 

 
 
 7.3
 The Creditor agrees that the representations, warranties and covenants of the Creditor herein will be true and correct both as of the execution of this Agreement and as of the date of this Agreement will survive the closing of the transactions contemplated in this Agreement.  The representations, warranties and covenants of the Creditor herein are made with the intent that they be relied upon by the Company in determining the eligibility of a purchaser of Offered Securities and the Creditor agrees to indemnify the Company and its respective trustees, affiliates, shareholders, directors, officers, partners, employees, advisors and agents against all losses, claims, costs, expenses and damages or liabilities which any of them may suffer or incur which are caused or arise from a breach thereof.  The Creditor undertakes to immediately notify the Company at the address set out above of any change in any statement or other information relating to the Creditor set forth herein.
 

 7.4
 Time shall be of the essence hereof.
 

 7.5
 This Agreement represents the entire agreement of the parties hereto relating to the subject matter hereof and there are no representations, covenants or other agreements relating to the subject matter hereof except as stated or referred to herein. 
 

 7.6
 The terms and provisions of this Agreement shall be binding upon and enure to the benefit of the Creditor and the Company and their respective heirs, executors, administrators, successors and assigns; provided that, except for the assignment by a Creditor who is acting as nominee or agent to the beneficial owner and as otherwise herein provided, this Agreement shall not be assignable by any party without prior written consent of the other parties. 
 

 7.7
 The Creditor, on his/her/its own behalf and, if applicable, on behalf of others for whom he/she/it is contracting hereunder, agrees that this subscription is made for valuable consideration and may not be withdrawn, cancelled, terminated or revoked by the Creditor, on his/her/its own behalf and, if applicable, on behalf of others for whom he/she/it is contracting hereunder. 
 

 7.8
 Neither this Agreement nor any provision hereof shall be modified, changed, discharged or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge or termination is sought.
 

 7.9
 The invalidity, illegality or unenforceability of any provision of this Agreement shall not affect the validity, legality or enforceability of any other provision hereof.
 

 7.10
 The headings used in this Agreement have been inserted for convenience of reference only and shall not affect the meaning or interpretation of this Agreement or any provision hereof. 
 

 7.11
 Notwithstanding the place where this Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be construed in accordance with and governed by the laws of the province of British Columbia.
 

 7.12
 This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each party and delivered to the other party, it being understood that all parties need not sign the same counterpart.
 

 IN WITNESS WHEREOF, this Agreement is executed as of the day and year first written above.
 

 	 	 	
	 HAMPSHIRE INFOTECH SDN
	  
	  

	 by its authorized signatory:
	  
	  

	  
	  
	  

	 /s/ Lim Hun Beng
	  
	  

	 Name: Lim Hun Beng
	  
	  

	 Title:Director
	  
	  

	  
	  
	  

	 VGRAB COMMUNICATIONS INC.
	  
	  

	 by its authorized signatory:
	  
	  

	  
	  
	  

	 /s/ Jack Skurtys
	  
	  

	 Name: Jack Skurtys
	  
	  

	 Title: CEO
	  
	  

 

 

 
 SCHEDULE A
 

 ACCREDITED INVESTOR CERTIFICATE
 

 The Creditor represents and warrants to VGrab Communications Inc. (the “Company”) that the Creditor has read the following definition of an “accredited investor” from National Instrument 45-106 - Prospectus and Registration Exemptions and certifies that the Creditor is an accredited investor by virtue of falling into one or more of the categories below (please initial the appropriate box below):
 

 	 	 	
	 Initials
	  
	  

	  
	  
	  

	 ____
	 (a) 
	 except in Ontario, a Canadian financial institution, or a Schedule III bank, 

	  
	  
	  

	 ____
	 (b)
	 except in Ontario, the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada), 

	  
	  
	  

	 ____
	 (c) 
	 except in Ontario, a subsidiary of any person referred to in paragraphs (a) or (b), 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) 
	 except in Ontario, a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, 

	  
	  
	  

	 ____
	 (e) 
	 an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d), 

	  
	  
	  

	 ____
	 (e.1) 
	 an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador), 

	  
	  
	  

	 ____
	 (f) 
	 except in Ontario, the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada, 

	  
	  
	  

	 ____
	 (g) 
	 except in Ontario, a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec, 

	  
	  
	  

	 ____
	 (h) 
	 except in Ontario, any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government, 

	  
	  
	  

	 ____
	 (i) 
	 except in Ontario, a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada,

	  
	  
	  

	 ____
	 (j) 
	 an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds CAD$1,000,000,  

	  
	  
	  

	 ____
	 (j.1) 
	 an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds CAD$5,000,000,

	  
	  
	  

	 ____
	 (k) 
	 an individual whose net income before taxes exceeded CAD$200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded CAD$300,000 in each of the two most recent calendar 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 CAD$5,000,000, 

	  
	  
	  

	 ____
	 (m) 
	 a person, other than an individual or investment fund, that has net assets of at least CAD$5,000,000 as shown on its most recently prepared financial statements, 

	  
	  
	  

	 ____
	 (n) 
	 an investment fund that distributes or has distributed its securities only to: 
  (i)   a person that is or was an accredited investor at the time of the distribution, 
  (ii)  a person that acquires or acquired securities in the circumstances referred to in NI 45-106 sections 2.10 [Minimum amount investment], or 2.19 [Additional investment in investment funds], or 
  (iii) a person described in paragraph (i) or (ii) that acquires or acquired securities under NI 45-106 section 2.18 [Investment fund reinvestment],

	  
	  
	  

	 ____
	 (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 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, 

	  
	  
	  

	 ____
	 (r) 
	 a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser 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, 

	  
	  
	  

	 ____
	 (t) 
	 a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors, 

	  
	  
	  

	 ____
	 (u) 
	 an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, 

	  
	  
	  

	 ____
	 (v) 
	 a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor, or 

	  
	  
	  

	 ____
	 (w) 
	 a trust established by an accredited investor for the benefit of the accredited investor’s family members of which a majority of the trustees are accredited investors and all of the beneficiaries are the accredited investor’s spouse, a former spouse of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of that accredited investor’s spouse or of that accredited investor’s former spouse;

 

 	
	 Persons described in paragraphs (j), (k) or (l) above must complete Schedule “B” - Risk Acknowledgement Form.

 

 

 The representations and warranties made in this certificate are true and accurate as of the date of this certificate and will be true and accurate as of the date of closing of the transaction contemplated by this Agreement.  If any such representations and warranties becomes untrue or inaccurate prior to the closing, the undersigned Creditor will give the Company immediate written notice.
 

 

 
 

 The Creditor acknowledges that the Company will be relying on this certificate in connection with the Agreement.  The statements made in this certificate are true.
 

 Dated _________________________, 20____.
 

 	 	
	 Signature of Creditor:
	  

	  
	  

	 Name of Creditor:
	  

	  
	  

	 Name and Title of Authorized Signatory of Creditor (if Corporate Creditor):
	  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 SCHEDULE B
 

 RISK ACKNOWLEDGEMENT FORM
 

 Form 45-106F9 
 Form for Individual Accredited Investors
 

 	
	 WARNING!
 This investment is risky. Don’t invest unless you can afford to lose all the money you pay for this investment.

 

 

 	 	 	
	 SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER

	 1. About your investment

	 Type of securities: Shares 
	 Issuer:      VGrab Communications Inc.

	 Purchased from: [Instruction: Indicate whether securities are purchased from the issuer or a selling security holder.] 

	 SECTIONS 2 TO 4 TO BE COMPLETED BY THE PURCHASER

	 2. Risk acknowledgement

	 

 This investment is risky. Initial that you understand that:
	 Your initials

	 Risk of loss – You could lose your entire investment of $___________ . [Instruction: Insert the total dollar amount of the investment.]
	  

	 Liquidity risk – You may not be able to sell your investment quickly – or at all.  
	  

	 Lack of information – You may receive little or no information about your investment. 
	  

	 Lack of advice – You will not receive advice from the salesperson about whether this investment is suitable for you unless the salesperson is registered. The salesperson is the person who meets with, or provides information to, you about making this investment. To check whether the salesperson is registered, go to www.aretheyregistered.ca. 
	  

	 3. Accredited investor status

	 You must meet at least one of the following criteria to be able to make this investment. Initial the statement that applies to you. (You may initial more than one statement.) The person identified in section 6 is responsible for ensuring that you meet the definition of accredited investor. That person, or the salesperson identified in section 5, can help you if you have questions about whether you meet these criteria. 
	 Your initials

	 ·
 Your net income before taxes was more than $200,000 in each of the 2 most recent calendar years, and you expect it to be more than $200,000 in the current calendar year. (You can find your net income before taxes on your personal income tax return.)
	  

	 ·
 Your net income before taxes combined with your spouse’s was more than $300,000 in each of the 2 most recent calendar years, and you expect your combined net income before taxes to be more than $300,000 in the current calendar year.
	  

 

 

 
 

 	 	 	 	
	 ·
 Either alone or with your spouse, you own more than $1 million in cash and securities, after subtracting any debt related to the cash and securities.
	  

	 ·
 Either alone or with your spouse, you have net assets worth more than $5 million. (Your net assets are your total assets (including real estate) minus your total debt.)
	  

	 4. Your name and signature

	 By signing this form, you confirm that you have read this form and you understand the risks of making this investment as identified in this form. 

	 First and last name (please print):

	 Signature: 
	 Date:

	 SECTION 5 TO BE COMPLETED BY THE SALESPERSON

	 5. Salesperson information 

	 [Instruction: The salesperson is the person who meets with, or provides information to, the purchaser with respect to making this investment. That could include a representative of the issuer or selling security holder, a registrant or a person who is exempt from the registration requirement.]

	 First and last name of salesperson (please print):

	 Telephone: 
	 Email:

	 Name of firm (if registered):

	 SECTION 6 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER

	 6. For more information about this investment

	 For investment in a non-investment fund
 

 VGrab Communications Inc.
 810 – 789 West Pender Street
Vancouver, BC
V6C 1H2
 Attention: Jacek P. Skurtys, CEO
 

 For more information about prospectus exemptions, contact your local securities regulator. You can find contact information at www.securities-administrators.ca.

 

 Form instructions:
 

 1.
 This form does not mandate the use of a specific font size or style but the font must be legible. 
 

 2.
 The information in sections 1, 5 and 6 must be completed before the purchaser completes and signs the form.  
 

 3.
 The purchaser must sign this form. Each of the purchaser and the issuer or selling security holder must receive a copy of this form signed by the purchaser. The issuer or selling security holder is required to keep a copy of this form for 8 years after the distribution.

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