Contract
THIS
PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES
TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT
U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT").
NONE
OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT RELATES HAVE BEEN
REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO
REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) 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
AND PROVINCIAL LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES
MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.
SUBSCRIPTION
AGREEMENT
TO: SURF
A MOVIE SOLUTIONS INC. (the “Company”)
Suite 149, 00000 Xxxxx Xxxxxxxxx,
Xxxxxxxxxx Xxxxx, XX, 00000, XXX
DATE: August
12, 2008
1.
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Subscription for
Shares
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1.1
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The
undersigned (the "Subscriber") hereby irrevocably subscribes for and
agrees to purchase 1,400,000 common shares in the capital of the Company
(the "Shares") at a price of US$0.005 per Share (such subscription and
agreement to purchase being the "Subscription"), for the total purchase
price of US$ 7,000.00 (the "Subscription Proceeds"), which is tendered
herewith, on the basis of representations and warranties and subject to
the terms and conditions set forth
herein.
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1.2
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The
Company hereby irrevocably 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.
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1.3
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Subject
to the terms hereof, the Subscription will be effective upon its
acceptance by the Company.
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2.
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Payment
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2.1
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The
Subscription Proceeds must accompany this Subscription and shall be paid
by cash, cheque or bank draft drawn on a major Canadian or U.S. chartered
bank made payable to the Company and delivered to the Company or its
lawyers or may be wired directly to either one of them. If the
Subscription proceeds are delivered to the Company's lawyers, the
Subscriber authorizes the Company's lawyers to deliver the Subscription
Proceeds to the Company on the Closing
Date.
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2.2
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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 30 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.
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2.3
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Where
the Subscription Proceeds are paid to the Company, the Company is entitled
to treat such Subscription Proceeds as an interest free loan to the
Company until such time as the Subscription is accepted and the
certificates representing the Shares have been issued to the
Subscriber.
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3.
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Documents Required
from Subscriber
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3.1
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The
Subscriber must complete, sign and return to the Company an executed copy
of this Subscription Agreement.
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3.2
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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.
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4.
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Closing
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4.1
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Closing
of the offering of the Shares (the "Closing") shall occur on or before
April 1, 2007 or on such other date as may be determined by the Company
(the "Closing Date").
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5.
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Acknowledgements of
Subscriber
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5.1
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The
Subscriber acknowledges and agrees
that:
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a.
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none
of the Shares have been or will be 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, directly or indirectly, to U.S. Persons, as that term is defined in
Regulation S under the 1933 Act ("Regulation S"), except in accordance
with the provisions of Regulation S, pursuant to an effective registration
statement under the 1933 Act, or 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 any applicable state and
provincial securities laws;
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b.
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the
Company has not undertaken, and will have no obligation, to register any
of the Shares under the 1933 Act or to qualify any of the Shares under any
state or provincial securities
laws;
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c.
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the
Subscriber has received and carefully read this Subscription
Agreement;
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d.
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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;
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e.
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by
execution hereof the Subscriber has waived the need for the Company to
communicate its acceptance of the purchase of the Shares pursuant to this
Subscription Agreement;
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f.
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the
Company is entitled to rely on the representations and warranties of the
Subscriber contained in this Subscription Agreement and the Subscriber
will hold harmless the Company from any loss or damage it or they may
suffer as a result of the Subscriber's failure to correctly complete this
Subscription Agreement;
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g.
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the
Subscriber 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;
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h.
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the
Subscriber has been advised to consult his 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 he is solely
responsible (and the Company is not in any way responsible) for compliance
with applicable resale
restrictions;
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i.
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there
is no market for the Shares, no market for the Shares may ever exist and
none of the Shares are listed on any stock exchange or automated dealer
quotation system 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;
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j.
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neither
the SEC nor any other securities commission or similar regulatory
authority has reviewed or passed on the merits of the
Shares;
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k.
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no
documents in connection with the sale of the Shares hereunder have been
reviewed by the SEC or any state securities
administrators;
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l.
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there
is no government or other insurance covering any of the
Shares;
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m.
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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;
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n.
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the
statutory and regulatory basis for the exemption claimed for the offer and
sale of the Shares, although in technical compliance with Regulation S,
would not be available if the offering is part of a plan or scheme to
evade the registration provisions of the 1933 Act;
and
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o.
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this
Subscription Agreement is not enforceable by the Subscriber unless it has
been accepted by the Company.
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6.
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Representations,
Warranties and Covenants of the
Subscriber
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6.1
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The
Subscriber hereby represents and warrants to and covenants with the
Company (which representations, warranties and covenants shall survive the
Closing) that:
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a.
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he
is not a U.S. Person;
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b.
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he
is not acquiring the Shares for the account or benefit of, directly or
indirectly, any U.S. Person;
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c.
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he
is resident in the jurisdiction set out under the heading "Name and
Address of Subscriber" on the signature page of this Subscription
Agreement and the sale of the Shares to the Subscriber as contemplated in
this Subscription Agreement complies with or is exempt from the applicable
securities legislation of the jurisdiction of residence of the
Subscriber;
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d.
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he
is purchasing the Shares as principal for investment purposes only and not
with a view to resale or distribution and, in particular, he has no
intention to distribute, either directly or indirectly, any of the Shares
in the United States or to U.S.
Persons;
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e.
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he
is outside the United States when receiving and executing this
Subscription Agreement;
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f.
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he
is aware that an investment in the Company is speculative and involves
certain risks, including the possible loss of the entire
investment;
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g.
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he
has made an independent examination and investigation of an investment in
the Shares and the Company and has depended on the advice of his legal and
financial advisors and agrees that the Company will not be responsible in
any way whatsoever for the Subscriber's decision to invest in the Shares
and the Company;
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h.
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he
(i) has adequate net worth and means of providing for his 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;
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i.
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he
(i) is able to fend for himself in the Subscription; (ii) has such
knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of his investment in the Shares
and the Company; and (iii) has the ability to bear the economic risks of
his prospective investment and can afford the complete loss of such
investment;
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j.
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he
understands and agrees that the Company and others will rely upon the
truth and accuracy of the acknowledgements, representations and agreements
contained in this Subscription Agreement and agrees that if any of such
acknowledgements, representations and agreements are no longer accurate or
have been breached, he shall promptly notify the
Company;
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k.
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he
has duly executed and delivered this Subscription Agreement and it
constitutes a valid and binding agreement of the Subscriber enforceable
against the Subscriber in accordance with its
terms;
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l.
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he
is not an underwriter of, or dealer in, the common shares of the Company,
nor is the Subscriber participating, pursuant to a contractual agreement
or otherwise, in the distribution of the
Shares;
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m.
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he
understands and agrees that 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, directly or indirectly, to U.S. Persons
except in accordance with the provisions of Regulation S, pursuant to an
effective registration statement under the 1933 Act, or 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 and provincial securities
laws;
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n.
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he
understands and agrees that offers and sales of any of the Shares prior to
the expiration of a period of one year after the date of original issuance
of the Shares (the one year period hereinafter referred to as the
"Distribution Compliance Period") shall only be made in compliance with
the safe harbor provisions set forth in Regulation S, pursuant to the
registration provisions of the 1933 Act or an exemption therefrom, and
that all offers and sales after the Restricted Period shall be made only
in compliance with the registration provisions of the 1933 Act or an
exemption therefrom;
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o.
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he
understands and agrees not to engage in any hedging transactions involving
any of the Shares unless such transactions are in compliance with the
provisions of the 1933 Act;
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p.
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he
understands and agrees that the Company will refuse to register any
transfer of the Shares not made in accordance with the provisions of
Regulation S, pursuant to an effective registration statement under the
1933 Act or pursuant to an available exemption from the registration
requirements of the 1933 Act;
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q.
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if
he is acquiring the Shares as a fiduciary or agent for one or more
investor accounts, he has sole investment discretion with respect to each
such account and he has full power to make the foregoing acknowledgments,
representations and agreements on behalf of such
account;
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r.
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he
acknowledges that he has not acquired the Shares as a result of, and will
not himself engage in, any "directed selling efforts" (as defined in
Regulation S under the 0000 Xxx) in the United States in respect of any of
the Shares which would include any activities undertaken for the purpose
of, or that could reasonably be expected to have the effect of,
conditioning the market in the United States for the resale of any of the
Shares; provided, however, that the Subscriber may sell or otherwise
dispose of any of the Shares pursuant to registration of any of the Shares
pursuant to the 1933 Act and any applicable state securities laws or under
an exemption from such registration requirements and as otherwise provided
herein;
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s.
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the
Subscriber is not aware of any advertisement of any of the Shares and 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; and
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t.
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no
person has made to the Subscriber any written or oral
representations:
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i.
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that
any person will resell or repurchase any of the
Shares;
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ii.
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that
any person will refund the purchase price of any of the
Shares;
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iii.
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as
to the future price or value of any of the Shares;
or
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iv.
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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.
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6.2
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In
this Subscription Agreement, the term "U.S. Person" shall have the meaning
ascribed thereto in Regulation S.
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7.
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Representations
and Warranties will be Relied Upon by the
Company
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7.1
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The
Subscriber acknowledges that the representations and warranties contained
herein are made by him with the intention that such representations and
warranties 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 he 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, he 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 on the Closing Date and that they will survive the
purchase by the Subscriber of Shares and will continue in full force and
effect notwithstanding any subsequent disposition by the Subscriber of
such Shares.
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8.
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Resale
Restrictions
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8.1
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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. The Subscriber acknowledges that
the Shares have not been registered under the 1933 Act of the securities
laws of any state of the United States and that the Company does not
intend to register same under the 1933 Act, or the securities laws of any
such state and has no obligation to do so. The Shares may not be offered
or sold in the United States unless registered in accordance with United
States federal securities laws and all applicable state securities laws or
exemptions from such registration requirements are
available.
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9.
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Acknowledgement and
Waiver
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9.1
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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.
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10.
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Legending and
Registration of Subject
Shares
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10.1
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The
Subscriber hereby acknowledges that a legend may be placed on the
certificates representing any of the Shares to the effect that the Shares
represented by such certificates are subject to a hold period and may not
be traded until the expiry of such hold period except as permitted by
applicable securities legislation.
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10.2
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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.
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11.
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Costs
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11.1
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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.
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12.
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Governing
Law
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12.1
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13.
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Survival
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13.1
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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.
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14.
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Assignment
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14.1
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This
Subscription Agreement is not transferable or
assignable.
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15.
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Execution
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15.1
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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.
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16.
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Severability
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16.1
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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.
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17.
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Entire
Agreement
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17.1
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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.
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18.
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Notices
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18.1
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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 6 and notices to the Company shall be directed to
it at SURF A MOVIE SOLUTIONS INC., SUITE 149, 00000 XXXXX XXXXXXXXX,
XXXXXXXXXX XXXXX, XX, 00000, Attention: The
TREASURER.
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19.
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Counterparts
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19.1
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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.
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IN
WITNESS WHEREOF the Subscriber has duly executed this Subscription Agreement as
of the date first mentioned above.
The
undersigned hereby acknowledges that it will deliver to the Company all such
additional completed forms in respect of the Subscriber's purchase of the Shares
as may be required for filing with the appropriate securities commissions and
regulatory authorities.
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(Signature)
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Xxxx
Xxxx
(Name)
Xxxxxxxxxxxx xxxxxxx 00,
00000
(Xxxxxxx
of Subscriber)
Berlin
(City,
Province/State)
Germany
(Country,
Postal Code)
ACCEPTANCE
The
above-mentioned Subscription Agreement in respect of the Shares is hereby
accepted by SURF A MOVIE SOLUTIONS INC.
DATED at
Huntington Beach, CA, USA the 12th day of August 2008.
Per:
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Authorized
Signatory
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