国外律师事务所起草的专业股权并购意见书

LETTEROFINTENTOctober4,2004To:AirwavesSoundDesignLtd.SecondFloor,25EastSecondAvenueVancouver,BC,CanadaV5T1B3RE:Purchaseofalloftheissuedandoutstandingshares(theShares)ofAirwavesSoundDesignLtd.andAirwavesDigitalGroupLtd.ThefollowingsetsoutthebasictermsuponwhichwewouldbepreparedtopurchasetheShares.Thetermsarenotcomprehensiveandweexpectthatadditionalterms,includingreasonablewarrantiesandrepresentations,willbeincorporatedintoaformalagreement(theFormalAgreement)tobenegotiated.Thebasictermsareasfollows:1.Purchaser:InternetStudios.com,Inc.(thePurchaser)2.Target:AirwavesSoundDesignLtd.andAirwavesDigitalGroupLtd.(collectively,theTarget)3.PrincipalShareholders:AlexDownieandanyothershareholdersoftheTarget(theVendors)4.Shares:ThePurchaseragreestopurchasefromtheVendorsandtheVendorsagreetosell,assignandtransferandtocauseallholdersoftheSharestosell,assignandtransfertothePurchaser,theSharesfreeandclearofallliens,chargesandencumbrances.5.Transaction:ThePurchaser,theTargetandtheVendorswillenterintoabusinesscombination(theCombination)wherebythePurchaserwillacquirealloftheissuedandoutstandingsecuritiesoftheTargetfromalltheVendorsinexchangefor500,000sharesinthecapitalofthePurchaserandoptionstopurchase1,500,000sharesinthecapitalofthePurchaseratanexercisepricepershareequaltothepricepersharepaidbytheinstitutionalinvestorsintheFinancing(asdefinedherein),whichoptionswillvestasismutuallyagreedtoamongthePurchaserandtheVendors(theAcquisition).6.Structure:InordertofacilitatetheAcquisition,thePurchaser,theTargetandtheVendorsagreethateachwillusetheirbesteffortstoformulateastructurefortheCombinationwhichisacceptabletoeachofthepartiesandwhichisformulatedto:oocomplywithallnecessarylegalandregulatoryrequirements;oominimizeoreliminateanyadversetaxconsequences;andoobeascosteffectiveaspossible.-2-7.Financing:TheVendorshaveadvisedthePurchaserthatitwillarrangefortheprivateplacementofsharesinthecapitalofthePurchaserforaminimumof$2million,whichinvestmentwillcloseonorbeforetheClosing(asdefinedherein)andwillbeonthesametermsastheinvestmenttobemadebyinstitutionalinvestorsbeingarrangedbythePurchaser'sadvisors,WestLBSecurities(theFinancing).AportionoftheproceedsraisedinconnectionwiththistransactioncontemplatedbythisLetterofIntent,shallbeallocatedtowardthepurchaseofacompanyinvolvedinpostproductionvideoservicesontermsacceptabletothePurchaser.8.AccesstoInformation:ImmediatelyuponexecutionofthisLetterofIntent,thePurchaseranditsadvisorswillhavefullaccessduringnormalbusinesshoursto,ortheTargetandtheVendorswilldelivertothePurchaser,copiesofalldocuments(theMaterials)pertainingtotheoperationsoftheTarget.9.Condition(s)Precedent:TheobligationofthePurchasertopurchasetheShareswillbesubjecttosatisfactionorwrittenwaiverbythePurchaserofthefollowingcondition(s)(theConditionsPrecedent)within10daysafterexecutionanddeliveryoftheFormalAgreement:ooreviewandapprovalofallmaterialsinthepossessionandcontroloftheTargetandtheVendorswhicharegermanetothedecisiontopurchasetheShares;oothePurchaseranditssolicitorshavinghadareasonableopportunitytoperformthesearchesandotherduediligencereasonableorcustomaryinatransactionofasimilarnaturetothatcontemplatedhereinandthatboththesolicitorsandthePurchaseraresatisfiedwiththeresultsofsuchduediligence;oothePurchaseranditsaccountanthavinghadareasonableopportunitytoreviewtheauditedfinancialstatements(includingcorporatetaxreturns,generalledgerlistings,adjustingentriesandopeningtrialbalances)oftheTarget,preparedinaccordancewithgenerallyacceptedaccountingprinciplesandthatboththePurchaseranditsaccountantaresatisfiedwiththecontentofsuchfinancialstatements;oosatisfactoryarrangementsbeingmadetohirehourlyandsalariedstaffnecessarytooperatethebusinessoftheTargetincludingtheTargetenteringintoanexecutivemanagementcontractwithAlexDownie;oothePurchaserobtainingtheconsentfromanypartiesfromwhomconsenttothetransferoftheSharesisrequired;oothePurchaserobtainingconfirmationthatanynamesusedinthebusinessoftheTargetisavailableforusebythePurchaserandcanberegisteredasatrademarkofthePurchaser;oonomaterialadversechangehavingoccurredinconnectionwiththebusinessoftheTargetortheShares;-3-ooallrepresentationsandwarrantiesoftheTargetandtheVendorsbeingtrueandallcovenantsoftheTargetandtheVendorshavingbeenperformedinallmaterialrespectsasoftheClosing;oonolegalproceedingspendingorthreatenedtoenjoin,restrictorprohibitthetransactionscontemplatedinthisLetterofIntent;ooasatisfactorylegalopinionbeingavailablefromVendors'counsel;oocompletionofsatisfactoryphysicalinspectionoftheassetsoftheTarget;oosatisfactoryreviewoftitletotheassetsoftheTarget;andooapprovaloftheBoardofDirectorsofthePurchaserbeingobtained.oItwouldbetheexpectationofthePurchaserthatmanyoftheConditionsPrecedentwillbenarrowedoreliminatedaltogetherasthePurchasercompletesitsduediligenceandtheFormalAgreementandschedulestheretoarefinalized.10.ReturnofMaterials:TheMaterialswillbereturnedtotheTargetand/ortheVendors,asapplicable,ordestroyediftheFormalAgreementisnotexecutedwithinthetimeprovided.11.Closing:Theclosing(theClosing)ofthetransa