<PAGE>
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
Of the SECURITIES EXCHANGE ACT OF 1934
For the months of December 1999, January 2000.
Sideware Systems Inc.
Suite 102, 930 West First Street, North Vancouver, British Columbia,
Canada V7Y 3N4
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.]
Form 20-F X . Form 40-F .
------------- --------------
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to RULE 12G3-2(B) under the Securities Exchange Act of
1934.]
Yes . No X .
-------------------------- -------------------
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with RULE 12G3-2(B): 82 - .
<PAGE>
This is the form required under section 139 of the SECURITIES RULES and, if
applicable, by an order issued under section 76 of the SECURITIES ACT.
FORM 20
SECURITIES ACT
REPORT OF EXEMPT DISTRIBUTION
(PLEASE REFER TO THE INSTRUCTIONS BEFORE COMPLETING THE INFORMATION BELOW.)
Report of a distribution of a security under section 74(2)(1) to (5), (8) to
(10), 11(i), (14), (16)(i), (18), (19) or (23) to (26) of the SECURITIES ACT,
R.S.B.C. 1996, c. 418, or section 128(a), (b), (c) or (e) to (h) of the
SECURITIES RULES, R.B.C. Reg. 194/97 or, if applicable, by an order issued
under section 76 of the SECURITIES ACT.
1. Name, address and telephone number of the issuer of the security
distributed.
SIDEWARE SYSTEMS INC.
102 - 930 West 1st Street
North Vancouver, B.C.
V7P 3N4
Telephone Number: (604) 986-6121
2. State whether the issuer is or is not an exchange issuer (ie. listed
on the Canadian Venture Exchange, but not listed or quoted on any
other stock exchange or trading or quotation system in Canada).
The Issuer is an exchange issuer.
3. Describe the type of security and the aggregate number distributed.
2,500,000 units with each unit comprising one common share and one
share purchase warrant. Each underlying warrant will entitle the
holder thereof to purchase one additional common share of the Issuer
for a period of two years at a price of US$1.64 per share in the
first year and US$1.89 per share in the second year.
4. Date of the distribution(s) of the security.
January 21, 2000
5. Specify the section(s) of the Act or Rules and, if applicable, the
date of the discretionary order or the blanket order number under
which the distribution(s) of the security was made.
Section 74(2)(4) of the Act, section 128(h) of the Rules and BOR
#98/11.
6. If the distribution(s) of the security was made to 50 purchasers or
less, circle and
<PAGE>
2
complete clause (a) of this section. If the distribution(s) of the
security was made to more than 50 purchasers, circle clause (b) of
this section.
(a)
<TABLE>
<CAPTION>
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Section of Act/Rules
and if applicable,
Number of Date of Discretionary
Full Name and Residential Address of Securities Price Per Share Total Purchase Price Order or Blanket Order
Purchaser Purchased (Canadian $) (Canadian $) Number
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
<S> <C> <C> <C> <C>
James Streit
15 Cricket Lane
Dobbs Ferry, NY $2.41 $150,625
10522 62,500 Units (US$1.64) (US$102,500) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Andrew Fisher
475 Steamboat Road
Greenwich, CT $2.41 $1,807,500
06830 750,000 Units (US$1.64) (US$1,230,000) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Kevin J. Murray
21 Pilgrim Road
Rye, NY $2.41 $150,625
10580 62,500 Units (US$1.64) (US$102,500) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Brian C. Pennington
28 Rock Ridge Avenue
Greenwich, CT $2.41 $753,125
06831 312,500 Units (US$1.64) (US$512,500) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Joshua L. Mandell
44 Elm Rock Road
Bronxville NY $2.41 $301,250
10708 125,000 Units (US$1.64) (US$205,000) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Jeffrey Rosenbluth
Sousa Drive
Sands Point, NY $2.41 $401,667.47
11050 166,667 Units (US$1.64) (US$273,334) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Dennis Keegan
13 Partridge Hollow Road
Greenwich, CT $2.41 $150,625
06831 62,500 Units (US$1.64) (US$102,500) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
</TABLE>
<PAGE>
3
<TABLE>
<CAPTION>
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Section of Act/Rules
and if applicable,
Number of Date of Discretionary
Full Name and Residential Address of Securities Price Per Share Total Purchase Price Order or Blanket Order
Purchaser Purchased (Canadian $) (Canadian $) Number
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
<S> <C> <C> <C> <C>
Robert Stavis
211 Hommocks Road
Larchmont, NY $2.41 $401,667.47
10538 166,667 Units (US$1.64) (US$273,334) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
William Montgomery
825 West End Avenue #15C
New York, NY $2.41 $401,665.06
10025 166,666 Units (US$1.64) (US$273,333) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Frank Jordan
57 Old Church Road
Greenwich, CT $2.41 $150,625
06830 62,500 Units (US$1.64) (US$102,500) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Titan Investment Group, LLC
5101 Sunnyside Avenue
College Park, MD $2.41 $440,849.25
20740 182,925 Units (US$1.64) (US$299,997) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
MacroSoft eCommerce Partners
1200 Braddock Place
Suite 201
Alexandria, VA $2.41 $146,949.75
22314 60,975 Units (US$1.64) (US$99,999) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Grant Sutherland
1600 - 777 Dunsmuir St.
Vancouver, BC $2.41 $144,600
V7Y 1K4 60,000 Units (US$1.64) (US$98,400) 74(2)(4)
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Owen Jones
309 - 9th Avenue
New Westminster, BC $2.41 $144,600
V3L 2A2 60,000 Units (US$1.64) (US$98,400) 74(2)(4)
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
James L. Speros
1111 Grand Hamptons Drive
Herndon, Virginia $2.41 $144,600
20170 60,000 Units (US$1.64) (US$98,400) 74(2)(4)
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Reicher Capital Management
Company Inc.
#1 Bridge Street
Irvington, NY $2.41 $301,250
10533 125,000 Units (US$1.64) (US$205,000) BOR #98/11
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
</TABLE>
<PAGE>
4
<TABLE>
<CAPTION>
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
Section of Act/Rules
and if applicable,
Number of Date of Discretionary
Full Name and Residential Address of Securities Price Per Share Total Purchase Price Order or Blanket Order
Purchaser Purchased (Canadian $) (Canadian $) Number
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
<S> <C> <C> <C> <C>
Erica Hughes
4635 Keith Road
West Vancouver, BC $2.41 32,776
V7W 2M8 13,600 Units (US$1.64) (US$22,304) 128(h)
- --------------------------------------- ------------------- ------------------- --------------------- ------------------------
</TABLE>
(b) The issuer has prepared and certified a list of purchasers
comprising the same information required by clause (a) of
this section and a certified true copy of the list will be
provided to the Commission upon request.
N/A
7. State the total dollar value (Canadian $) of the securities
distributed by the issuer to purchasers resident in British Columbia
in respect of which this report is filed.
$321,976
8. State the name and address of any person acting as agent in
connection with the distribution(s) of the security, the
compensation paid or to be paid to the agent and the name(s) of the
purchasers(s) in respect of which the compensation was paid or is to
be paid.
The following finder's fee was paid in connection with a portion of
the distribution:
<TABLE>
<CAPTION>
- ------------------------------- ------------------------------ ------------------------- -----------------------------
COMPENSATION PAID (NUMBER
AND TYPE OF
NAME AND ADDRESS SECURITY AND/OR CASH PRICE PER SHARE
OF AGENT AMOUNT ) (CANADIAN $) NAME OF PURCHASER
- ------------------------------- ------------------------------ ------------------------- -----------------------------
<S> <C> <C> <C>
BRIAN COHN $397,782 N/A ANDREW FISHER
5410 Cathedral Avenue N.W. (US$270,600) FRANK JORDAN
Washington, DC JAMES STREIT
20016 JOSHUA MANDELL
KEVIN MURRAY
BRAIN PENNINGTON
REICHER CAPITAL MANAGEMENT
ROBERT STAVIS
JEFFREY ROSENBLUTH
WILLIAM MONTGOMERY
DENNIS KEEGAN
- ------------------------------- ------------------------------ ------------------------- -----------------------------
</TABLE>
<PAGE>
5
<TABLE>
<CAPTION>
- ------------------------------- ------------------------------ ------------------------- -----------------------------
COMPENSATION PAID (NUMBER
AND TYPE OF
NAME AND ADDRESS SECURITY AND/OR CASH PRICE PER SHARE
OF AGENT AMOUNT ) (CANADIAN $) NAME OF PURCHASER
- ------------------------------- ------------------------------ ------------------------- -----------------------------
<S> <C> <C> <C>
MONTGOMERY
DENNIS KEEGAN
- ------------------------------- ------------------------------ ------------------------- -----------------------------
</TABLE>
9. If the distribution of the security was made under section 128(a) of
the Rules, state the number of different purchasers who acquired any
securities of the issuer under that section during the 12 month period
preceding the distribution of this security.
N/A
10. If the distribution of the security was made under section 128(h) of
the Rules, state
(a) the number of different purchasers who acquired any
securities of the issuer under that section during the 12
month period preceding the distribution of this security, and
N/A
(b) the total dollar value (Canadian $) of all securities of the
issuer distributed under that section (including the
distribution of this security), during the 12 month period
preceding the distribution of this security.
$32,776
The undersigned hereby certifies that the statements made in this report are
true and correct.
DATED at Vancouver, this 21 day of January, 2000.
SIDEWARE SYSTEMS INC.
------------------------------------------
Name of issuer (PLEASE PRINT)
"GRANT SUTHERLAND"
------------------------------------------
Signature of authorized signatory
GRANT SUTHERLAND, DIRECTOR
------------------------------------------
Name and office of authorized signatory
(PLEASE PRINT)
IT IS AN OFFENCE FOR A PERSON TO MAKE A STATEMENT IN A RECORD REQUIRED TO BE
FILED OR PROVIDED UNDER THE SECURITIES ACT OR SECURITIES RULES THAT, AT THE
TIME AND IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH IT IS MADE, IS A
MISREPRESENTATION.
<PAGE>
[LETTERHEAD]
SIDEWARE SYSTEMS INC. CLOSES PRIVATE PLACEMENT
INVESTOR CONTACTS:
Richard S. Simpson or
Jennifer Burke
[email protected]
(604) 988-0440
FOR IMMEDIATE RELEASE - JANUARY 21, 2000
VANCOUVER, B.C. - Sideware Systems Inc. (CDNX:SYD.U and OTC-BB:SDWSF)
announces that it has closed its private placement previously announced on
December 1, 1999. The private placement comprised 2,500,000 units at a price
of US$1.64 per unit. The securities issued are subject to a hold period in
British Columbia which expires at midnight on April 14, 2000 (Vancouver Time).
Each unit comprises one common share and one share purchase warrant. Each
underlying warrant entitles the holder to purchase one additional common
share of the Company, for a period of two years, at a price of US$1.64 per
warrant share at any time on or before 4:00 p.m. (Vancouver Time) on December
14, 2000 and thereafter at a price of US$1.89 per warrant share at any time
on or before December 14, 2001.
The proceeds from the private placement in the sum of US$4,100,000 will be
used for product development, sales & marketing, expansion and general
working capital.
ABOUT SIDEWARE
Sideware is an IBM ISV and Business Partner providing products, solutions and
integration services. The company has coupled Dr. Bean e-Customer
Relationship Management Technology ("e-CRMT") with IBM products providing a
flexible e-Business "backbone" for small companies to large corporations. The
company is a Java developer and has exclusively built Dr. Bean using Java and
Enterprise Java technologies. For further information on Sideware's total
solution or turnkey products and services, please visit WWW.SIDEWARE.COM. For
investment information visit WWW.TECHWESTMGMT.COM/SIDEWARE. Sideware Systems
Inc., Corporate Headquarters in North Vancouver, BC publicly trades on both
the OTC Bulletin Board, "SDWSF" and the Canadian Venture Stock Exchange
(CDNX) -"SYD-U". Sideware Corp., is Headquartered in Herndon, VA, and is the
centre for the company's product sales and service operations.
ON BEHALF OF THE BOARD
"Grant Sutherland"
Grant Sutherland
Chairman
-more-
<PAGE>
-2-
THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbour" for forward-looking statements. Certain information included in this
communication (as well as information included in oral statements or other
written statements made or to be made by Sideware Systems Inc.) contains
statements that are forward-looking, such as statements relating to the
future anticipated direction of the high technology industry, plans for
future expansion, various business development activities, planned capital
expenditures, future funding sources, anticipated sales growth and potential
contracts. Such forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results in the
future and, accordingly, such results may differ from those expressed in any
forward-looking statements made by or on behalf of Sideware Systems Inc.
These risks and uncertainties include, but are not limited to, those relating
to development and expansion activities, dependence on existing management,
financial activities, domestic and global economic conditions, changes in
federal or state income tax laws, and market competition factors.
<PAGE>
FORM 27
SECURITIES ACT
MATERIAL CHANGE REPORT UNDER SECTION 85(1) OF THE ACT
ITEM 1. REPORTING ISSUER
Sideware Systems Inc.
102 - 930 West 1st Street
North Vancouver, B.C.
V7P 3N4
ITEM 2. DATE OF MATERIAL CHANGE
January 21, 2000
ITEM 3. PRESS RELEASE
The News Release was issued on January 21, 2000.
ITEM 4. SUMMARY OF MATERIAL CHANGE
The Company announces that its private placement previously
announced on December 1, 1999 has closed.
ITEM 5. FULL DESCRIPTION OF MATERIAL CHANGE
The Company announces that it has closed its private placement
previously announced on December 1, 1999. The private placement
comprised 2,500,000 units at a price of US$1.64 per unit. The
securities issued are subject to a hold period in British Columbia
which expires at midnight on April 14, 2000 (Vancouver Time).
Each unit comprises one common share and one share purchase warrant.
Each underlying warrant entitles the holder to purchase one additional
common share of the Company, for a period of two years, at a price of
US$1.64 per warrant share at any time on or before 4:00 p.m. (Vancouver
Time) on December 14, 2000 and thereafter at a price of US$1.89 per
warrant share at any time on or before December 14, 2001.
<PAGE>
2
The proceeds from the private placement in the sum of US$4,100,000 will
be used for product development, sales & marketing, expansion and
general working capital.
ITEM 6. RELIANCE ON SECTION 85(2) OF THE ACT
N/A
ITEM 7. OMITTED INFORMATION
N/A
ITEM 8. SENIOR OFFICERS
Grant Sutherland: (604) 986-6121
ITEM 9. STATEMENT OF SENIOR OFFICER
The foregoing accurately discloses the material change referred to
herein.
DATED at Vancouver, British Columbia, this 21st day of January, 2000.
Sideware Systems Inc.
/s/ "GRANT SUTHERLAND"
-----------------------
Grant Sutherland
Chairman of the Board
<PAGE>
APPENDIX 16B*
*Last amended March 1999
DECLARATION OF CERTIFIED FILING
PRIVATE PLACEMENT
RE: SIDEWARE SYSTEMS INC. (THE "COMPANY")
This Declaration accompanies an application to the Canadian Venture Exchange
(the "Exchange") for acceptance for filing of the Private Placement summarized
in the Notice Form (Appendix 16C) filed as the Notice or attached hereto (the
"Filing").
The Undersigned hereby certifies that:
a) the undersigned is a Director and/or Senior Officer of the Company and
has been duly authorized by a Resolution of the Board of Directors of
the listed company to make this Declaration;
b) the Filing is in all respects in accordance with Policy 16 in Section D
of the Exchange's Listing Policy and Procedures Manual, in effect as of
the date of this Declaration or any deviations are disclosed in the
attached Notice Form;
c) there are no material changes in the affairs of the Company which have
not been publicly disclosed;
d) any changes to the terms of this private placement since the
preliminary acceptance of the Notice have been disclosed in an
attachment to this Declaration.
Dated this 19th day of January, 2000.
/s/ GRANT SUTHERLAND
-------------------------
Name of Director and/or
Senior Officer
/s/ "GRANT SUTHERLAND"
-------------------------
Signature
/s/ CHAIRMAN & DIRECTOR
-------------------------
Official Capacity
<PAGE>
THIS DOCUMENT WILL BE PLACED IN THE COMPANY'S PUBLIC FILE
IN ACCORDANCE WITH THE TERMS OF THE COMPANY'S
LISTING AGREEMENT
<PAGE>
APPENDIX 16E
Private Placement Summary Form
Company Name: SIDEWARE SYSTEMS INC.
-------------------------------------------------------------
Date: JANUARY 20, 2000
---------------------------------------------------------------------
Date of News Release: DECEMBER 1, 1999
-----------------------------------------------------
Total Number and Type of Security: 2,500,000 UNITS
----------------------------------------
1)
<TABLE>
<CAPTION>
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ -------------
Present
Section of Direct &
Number of Purchase price Act/Rules Indirect
Full Name & Residential Securities per Security Prospectus Holdings in Payment Insider
Address of Purchaser Purchased (US$) Exemption the Company Date * Y/N
<S> <C> <C> <C> <C> <C> <C>
- -------------------------- ---------------- ------------------ -------------- -------------- ------------- ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------- ------------
James Streit
15 Cricket Lane
Dobbs Ferry, NY BOR
10522 62,500 Units 102,500 #98/11 0 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Andrew Fisher
475 Steamboat Road
Greenwich, CT BOR
06830 750,000 Units 1,230,000 #98/11 0 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Kevin J. Murray
21 Pilgrim Road
Rye, NY BOR
10580 62,500 Units 102,500 #98/11 0 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Brian C. Pennington
28 Rock Ridge Avenue
Greenwich, CT BOR
06831 312,500 Units 512,500 #98/11 0 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Joshua L. Mandell
44 Elm Rock Road
<PAGE>
Bronxville NY BOR
10708 125,000 Units 205,000 #98/11 0 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Jeffrey Rosenbluth
Sousa Drive
Sands Point, NY BOR
11050 166,667 Units 273,334 #98/11 0 12/14/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Dennis Keegan
13 Partridge Hollow Road
Greenwich, CT BOR
06831 62,500 Units 102,500 #98/11 0 12/09/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Robert Stavis
211 Hommocks Road
Larchmont, NY BOR
10538 166,667 Units 273,334 #98/11 0 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
William Montgomery
825 West End Avenue #15C
New York, NY
10025 166,666 Units 273,333 BOR #98/11 0 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Frank Jordan
57 Old Church Road
Greenwich, CT
06830 62,500 Units 105,500 BOR #98/11 0 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Titan Investment Group,
LLC
5101 Sunnyside Avenue
College Park, MD BOR
20740 182,925 Units 299,997 #98/11 40,000 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
MacroSoft eCommerce
Partners
1200 Braddock Place
<PAGE>
Suite 201
Alexandria, VA BOR
22314 60,975 Units 100,000 #98/11 350,000 12/10/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Grant Sutherland
1600 - 777 Dunsmuir St.
Vancouver, BC
V7Y 1K4 60,000 Units 98,400 74(2)(4) 2,539,900 12/10/99 Y
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Owen Jones
309 - 9th Avenue
New Westminster, BC
V3L 2A2 60,000 Units 98,400 74(2)(4) 4,948,200 12/10/99 Y
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
James L. Speros
1111 Grand Hamptons Drive
Herndon, Virginia
20170 60,000 Units 98,400 74(2)(4) 3,378,500 12/06/99 Y
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Reicher Capital
Management Company Inc.
#1 Bridge Street
Irvington, NY BOR
10533 125,000 Units 205,000 #98/11 0 12/14/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
Erica Hughes
4635 Keith Road
West Vancouver, BC
V7W 2M8 13,600 Units 22,304 128(h) 0 12/14/99 N
- -------------------------- ---------------- ------------------ -------------- -------------- ------------ ------------
</TABLE>
*Has each placee advanced payment to the company or have the placement funds
been placed in trust pending receipt of all necessary approvals?
YES X NO
If NO, please explain:
2) Each purchaser has been advised of the applicable Securities Act or
Canadian Venture Exchange hold period. All certificates for securities
issued which are subject to a hold period bear the appropriate legend
restricting their transfer until the expiry of the applicable hold period.
<PAGE>
3) Where there is a change in the control of the company or the creation of a
control block pursuant to Policy 16.1.28, resulting from the issuance of
the private placement shares, indicate the names of the new controlling
shareholders, and provide the date on which shareholder approval has been
or will be obtained for the transaction.
N/A
-------------------------------------------------------------------
-------------------------------------------------------------------
-------------------------------------------------------------------
-------------------------------------------------------------------
4) An Appendix 16F - Corporate Placee Registration Form with current
information is enclosed or has been filed for each subscriber that is not
an individual.
Yes
If Appendix 16F on file does not contain current information, a new Form, or
amendment to the Form, must be submitted by the placee.
THIS DOCUMENT WILL BE PLACED IN THE COMPANY'S PUBLIC FILE IN ACCORDANCE WITH
THE TERMS OF THE COMPANY'S LISTING AGREEMENT
<PAGE>
APPENDIX 16C
PRIVATE PLACEMENT NOTICE FORM
Company Sideware Systems Inc. (the "Company")
-----------------------------------------------
Symbol SYD
------------------------------
Issued and Outstanding Shares 48,373,784
--------------------------------
Date of News Release Announcing the Placement December 1, 1999
-------------------------------
Relevant Policies: Policy 16 - Private Placements
This form is designed to assist companies in the preparation of a Notice
Letter for a private placement, by setting out the required information and
documentation, and therefore, to speed up Exchange acceptance.
Required Information:
A. SECURITIES ISSUED PURSUANT TO THE PRIVATE PLACEMENT
1. Total amount of funds to be raised
$ US4,100,000
-----------------------------------------------------------------
2. Type of securities to be issued (eg. common/special warrants/other)
COMMON SHARES
-----------------------------------------------------------------
3. Number of securities to be issued
2,500,000
-----------------------------------------------------------------
4. Price of per share/unit
$US1.64
-----------------------------------------------------------------
5. Number of share purchase warrants to be issued
2,500,000
-----------------------------------------------------------------
<PAGE>
6. Number of shares eligible to be purchased on exercise of share
purchase warrants
2,500,000
-----------------------------------------------------------------
7. Exercise price of share purchase warrants
-----------------------------------------------------------------
Year 1 US$1.64 Year 2 US$1.89
------------- --------------
B. IF PLACEMENT INCLUDES CONVERTIBLE SECURITIES:
1. Aggregate amount of debenture
N/A
-----------------------------------------------------------------
2. Conversion terms
N/A
-----------------------------------------------------------------
3. Debenture due date
N/A
-----------------------------------------------------------------
4. Interest Rate
N/A
-----------------------------------------------------------------
5. Default provisions
N/A
-----------------------------------------------------------------
6. Describe how the company proposes to meet any periodic interest or
dividend payment obligations and redemption requirements.
N/A
-----------------------------------------------------------------
C. PLACEES
1. Please complete the following chart (or include an attachment) for
non-brokered private placements at the Notice Letter stage. For brokered
private placements, the chart may be completed at the final filing stage.
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================
NAME AND ADDRESS OF NUMBER AND TYPE OF
PLACEE (IF PLACEE IS A SECURITIES TO BE PURCHASE PRICE APPLICABLE STATUTORY
COMPANY, STATE THE NAMES PURCHASED PER SECURITY EXEMPTION(S)
OF THE BENEFICIAL OWNER(S))
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
James Streit 62,500 Units US$1.64 BOR #98/11
15 Cricket Lane
Dobbs Ferry, NY
10522
- --------------------------------------------------------------------------------------------------------------------
Andrew Fisher 750,000 Units US$1.64 BOR #98/11
475 Steamboat Road
Greenwich, CT
06830
- --------------------------------------------------------------------------------------------------------------------
Kevin J. Murray 62,500 Units US$1.64 BOR #98/11
21 Pilgrim Road
Rye, NY
10580
- --------------------------------------------------------------------------------------------------------------------
Brian C. Pennington 312,500 Units US$1.64 BOR #98/11
28 Rock Ridge Avenue
Greenwich, CT
06831
- --------------------------------------------------------------------------------------------------------------------
Joshua L. Mandell 125,000 Units US$1.64 BOR #98/11
44 Elm Rock Road
Bronxville NY
10708
- --------------------------------------------------------------------------------------------------------------------
Jeffrey Rosenbluth 166,667 Units US$1.64 BOR #98/11
Sousa Drive
Sands Point, NY
11050
- --------------------------------------------------------------------------------------------------------------------
Dennis Keegan 62,500 Units US$1.64 BOR #98/11
13 Partridge Hollow Road
Greenwich, CT
06831
- --------------------------------------------------------------------------------------------------------------------
Robert Stavis 166,667 Units US$1.64 BOR #98/11
211 Hommocks Road
Larchmont, NY
10538
====================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================
NAME AND ADDRESS OF NUMBER AND TYPE OF
PLACEE (IF PLACEE IS A SECURITIES TO BE PURCHASE PRICE APPLICABLE STATUTORY
COMPANY, STATE THE NAMES PURCHASED PER SECURITY EXEMPTION(S)
OF THE BENEFICIAL OWNER(S))
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
William Montgomery 166,666 Units US$1.64 BOR #98/11
825 West End Avenue #15C
New York, NY
10025
- --------------------------------------------------------------------------------------------------------------------
Frank Jordan 62,500 Units $US1.64 BOR #98/11
57 Old Church Road
Greenwich, CT
06830
- --------------------------------------------------------------------------------------------------------------------
Titan Investment Group, LLC 182,925 Units $US1.64 BOR #98/11
5101 Sunnyside Avenue
College Park, MD
20740
- --------------------------------------------------------------------------------------------------------------------
MacroSoft eCommerce Partners 60,975 Units $US1.64 BOR #98/11
1200 Braddock Place
Suite 201
Alexandria, VA
22314
- --------------------------------------------------------------------------------------------------------------------
Grant Sutherland 60,000 Units $US1.64 74(2)(4)
1600 - 777 Dunsmuir St.
Vancouver, BC
V7Y 1K4
- --------------------------------------------------------------------------------------------------------------------
Owen Jones 60,000 Units $US1.64 74(2)(4)
309 - 9th Avenue
New Westminster, BC
V3L 2A2
- --------------------------------------------------------------------------------------------------------------------
James L. Speros 60,000 Units $US1.64 74(2)(4)
1111 Grand Hamptons Drive
Herndon, Virginia
20170
- --------------------------------------------------------------------------------------------------------------------
Reicher Capital Management 125,000 Units $US1.64 BOR #98/11
Company Inc.
#1 Bridge Street
Irvington, NY
10533
- --------------------------------------------------------------------------------------------------------------------
Erica Hughes 13,600 Units $US1.64 128(h)
====================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================
NAME AND ADDRESS OF NUMBER AND TYPE OF
PLACEE (IF PLACEE IS A SECURITIES TO BE PURCHASE PRICE APPLICABLE STATUTORY
COMPANY, STATE THE NAMES PURCHASED PER SECURITY EXEMPTION(S)
OF THE BENEFICIAL OWNER(S))
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
4635 Keith Road
West Vancouver, BC
V7W 2M8
====================================================================================================================
</TABLE>
2. If brokered, provide the name of the agent conducting the Private
Placement.
N/A
-----------------------------------------------------------------
D. USE OF PROCEEDS
1. Complete the following table showing the proposed use of proceeds, and
an allocation of funds to major expenditure categories with a
comparison to expenditures on similar categories in the preceding
twelve month period.
<TABLE>
<CAPTION>
====================================================================================================================
USE OF PROCEEDS EXPENDITURE ON SIMILAR CATEGORIES IN THE PAST 12 MONTHS
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
To provide capital for financing product development, General & Administrative expense for 12 months ending
sales and marketing, company expansion and general November 30, 1999:.....................................
working capital ..................... US$4,100,000 approx. $1,800,000
====================================================================================================================
</TABLE>
2. State the approximate working capital on hand as at the preceding
month end.
APP $6,000,000 CDN. AS AT NOVEMBER 30, 1999
-----------------------------------------------------------------
E. FINDERS
1. Describe the particulars (including name, address, and beneficial
ownership where applicable of the finder) of any proposed finder's fee
or commission.
Brian Cohn of 5410 Cathedral Avenue N.W., Washington, D.C., 20016
-----------------------------------------------------------------
will receive 8% on the amount of US$3,382,501 of the total proceeds
-----------------------------------------------------------------
derived from U.S. resident purchasers, being $US270,600, payable as
-----------------------------------------------------------------
165,000 units having the same terms and conditions as set forth in
-----------------------------------------------------------------
the foregoing, at $US1.64 per unit.
-----------------------------------------------------------------
2. If the finder is not a Member:
a) include confirmation of its registration as a securities
dealer, or provide the applicable registration exemption in
the place where the relevant placee resides.
<PAGE>
The Company has been advised by its US legal counsel that
--------------------------------------------------------
its payment of finders' fees to Brian Cohn does not
--------------------------------------------------------
contravene any US state or federal law.
--------------------------------------------------------
b) state whether or not the finder is a registered representative
or officer of a Member.
The finder is not a registered representative or officer
--------------------------------------------------------
of a Member.
--------------------------------------------------------
c) confirm that the finder is at Arm's Length to the company.
The finder is at Arm's Length to the Company.
--------------------------------------------------------
F. OTHER
1. Describe the particulars of any other proposed material changes in the
affairs of the company.
N/A
-----------------------------------------------------------------
2. Describe any unusual particulars of the transaction (i.e. tax "flow
through" shares, etc.),
None
-----------------------------------------------------------------
3. Is shareholder approval of the private placement being sought?
Yes No X
---------- ----------
4. If this transaction is not fully in accordance with Policy 16 - Private
Placements, indicate where there are deviations, and explain why a
waiver of Exchange policy is in the best interests of the company and
the investing public.
N/A
-----------------------------------------------------------------
5. Enclose the prescribed fee (enclose at the NOTICE stage, not the final
acceptance stage).
-----
X
-----
<PAGE>
[Sideware Letterhead]
FOR IMMEDIATE RELEASE: DECEMBER 1, 1999
INVESTOR CONTACTS:
Richard S. Simpson or
Jennifer Burke
[email protected]
(604) 988-0440
SIDEWARE SYSTEMS INC. ANNOUNCES US $4,100,000
PRIVATE PLACEMENT
VANCOUVER, B.C. - Sideware Systems Inc. (VSE-SYD) has
arranged a non-brokered private placement in the sum of US $4,100,000. Under
the private placement, 2,500,000 units will be issued at price of US $1.64
per unit, subject to regulatory approval.
Each unit is comprised of one common share and one share purchase warrant.
Each share purchase warrant entitles the holder to purchase one additional
common share of the company for a period of two years, at a price of US $1.64
per share in the first year or US $1.89 per share in the second year. A
finder's fee of 8% will be paid in cash or securities or a combination
thereof, subject to regulatory approval.
The proceeds in the sum of US $4,100,000 will be used to finance product
development, sales and marketing, company expansion and general working
capital.
ON BEHALF OF THE BOARD
"Grant Sutherland"
Grant Sutherland
Chairman
THE VANCOUVER STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ACCURACY OF THIS NEWS RELEASE.
<PAGE>
FORM 27
SECURITIES ACT
MATERIAL CHANGE REPORT UNDER SECTION 85(1) OF THE ACT
ITEM 1. REPORTING ISSUER
Sideware Systems Inc.
102 - 930 West 1st Street
North Vancouver, B.C.
V7P 3N4
ITEM 2. DATE OF MATERIAL CHANGE
December 1, 1999
ITEM 3. PRESS RELEASE
The News Release was issued on December 1, 1999.
ITEM 4. SUMMARY OF MATERIAL CHANGE
The Company announces a non-brokered private placement of up
to 2,500,000 units at a price of US $1.64.
ITEM 5. FULL DESCRIPTION OF MATERIAL CHANGE
Sideware Systems Inc. (CDNX:SYD.U and OTC-BB:SDWSF) has
arranged a non-brokered private placement in the sum of up to
US $4,100,000. Under the private placement, up to 2,500,000
units will be issued at price of US $1.64 per unit, subject to
regulatory approval.
Each unit is comprised of one common share and one share
purchase warrant. Each share purchase warrant entitles the
holder to purchase one additional common share of the company
for a period of two years, at a price of US $1.64 per share in
the first year or US $1.89 per share in the second year. A
finder's fee of 8% will be paid in cash or securities or a
combination thereof, subject to regulatory approval.
The proceeds will be used to finance product development,
sales and marketing, company expansion and general working
capital.
ITEM 6. RELIANCE ON SECTION 85(2) OF THE ACT
<PAGE>
2
N/A
ITEM 7. OMITTED INFORMATION
N/A
ITEM 8. SENIOR OFFICERS
Grant Sutherland: (604) 986-6121
ITEM 9. STATEMENT OF SENIOR OFFICER
The foregoing accurately discloses the material change referred to
herein.
DATED at Vancouver, British Columbia, this 13th day of December, 1999.
Sideware Systems Inc.
"Grant Sutherland"
- --------------------------------
Grant Sutherland
Director
<PAGE>
This is the form required under section 139 of the SECURITIES REGULATION and, if
applicable, by an order issued under section 76 of the SECURITIES ACT.
FORM 20
SECURITIES ACT
REPORT OF EXEMPT DISTRIBUTION
(PLEASE REFER TO THE INSTRUCTIONS BEFORE COMPLETING THE INFORMATION BELOW.)
Report of a distribution under section 74(2)(1) to (5), (8) to (10), 11(i),
(14), (16)(i), (18) or (23) to (26) of the SECURITIES ACT, R.S.B.C. 1996,
c.418 (the "Act"), section 128(a), (b), (c) or (e) to (h) of the Securities
Rules, B.C. Reg. 479/95 (the "Rules"), or, where required, under an Order
issued under section 76 of the Act.
1. Name, address and telephone number of the issuer of the security
distributed (the "Issuer"):
SIDEWARE SYSTEMS INC.
102 - 930 West 1st Street
North Vancouver, B.C.
V7P 3N4
Telephone Number: (604) 986-6121
2. State whether the Issuer is an exchange issuer (ie. Listed on the
Canadian Venture Exchange, but not listed or quoted on any other stock
exchange or trading or quotation system in Canada).
The Issuer is an exchange issuer.
3. Describe the type of security and the aggregate number distributed:
Stock options on a total of 150,000 common shares, exercisable at a
price of $2.78 per share until October 20, 2004.
4. Date of the distribution(s) of the security.
December 17, 1999
5. Specify the section(s) of the Act or Rules and, if applicable,the date
of the discretionary order or the blanket order number under which the
distribution(s) of the security was made.
<PAGE>
2
s. 74(2)(9) of the Act
6. If the distribution(s) of the security was made to 50 purchasers or
less, circle and complete clause (a) of this section. If the
distribution(s) of the security was made to more than 50 purchasers,
circle clause (b) of this section.
(a)
<TABLE>
<CAPTION>
==========================================================================================================================
Number of Price Per Total Section of Act/Rules and if
Full Name and Residential Securities Share Purchase Price applicable, Date of Discretionary
Address of Purchaser Purchased (Canadian $) (Canadian $) Order or Blanket Order Number
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Al Unger 10,000 * * s. 74(2)(9)
7500 Arnold Road
Chilliwack BC
V2R 4J7
- --------------------------------------------------------------------------------------------------------------------------
Ed VanDrimmlen 10,000 * * s. 74(2)(9)
5 - 45712 Watson Road
Sardis BC
V2R 5L5
- --------------------------------------------------------------------------------------------------------------------------
Tony Drezet 10,000 * * s. 74(2)(9)
3224 St. John's Street
Port Moody BC
V3H 2C9
- --------------------------------------------------------------------------------------------------------------------------
Gary Mounts 5,000 * * s. 74(2)(9)
3220 Carroll Road
Huntingtown, MD
20639
- --------------------------------------------------------------------------------------------------------------------------
Shanna Benson 20,000 * * s. 74(2)(9)
401 - 121 Shoreline Circle
Port Moody BC
V6E 5G2
- --------------------------------------------------------------------------------------------------------------------------
Vince Sturniolo 20,000 * * s. 74(2)(9)
13153 Kidwell Field Rd
Herndon, VA
==========================================================================================================================
</TABLE>
<PAGE>
3
<TABLE>
<CAPTION>
==========================================================================================================================
Number of Price Per Total Section of Act/Rules and if
Full Name and Residential Securities Share Purchase Price applicable, Date of Discretionary
Address of Purchaser Purchased (Canadian $) (Canadian $) Order or Blanket Order Number
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
20170
- --------------------------------------------------------------------------------------------------------------------------
Paul Hildebrand
5649 Balaclava Street
Vancouver BC
V6N 1K9 25,000 * * s. 74(2)(9)
- --------------------------------------------------------------------------------------------------------------------------
Harry Liu
9 - 5291 Oakmount Crescent
Burnaby BC
V5H 4S7 20,000 * * s. 74(2)(9)
- --------------------------------------------------------------------------------------------------------------------------
Sava Jurisic
904 - 1330 Pendrell Street
Vancouver BC
V6E 1L9 20,000 * * s. 74(2)(9)
- --------------------------------------------------------------------------------------------------------------------------
Chris Hall
5905 Wood Sorrel Crescent
Burke VA
22015 10,000 * * s. 74(2)(9)
==========================================================================================================================
</TABLE>
* incentive option - no cash paid
(b) The issuer has prepared and certified a list of purchasers
comprising the same information required by clause (a) of this
section and a certified true copy of the list will be provided
to the Commission upon request.
N/A
7. State the total dollar value (Canadian $) of the securities distributed
by the issuer to purchasers resident in British Columbia in respect of
which this report is filed.
Nil
8. State the name and address of any person acting as agent in connection
with the distribution(s) of the security, the compensation paid or to
be paid to the agent and the name(s) of the purchaser(s) in respect of
which the compensation was paid or is to be paid.
<PAGE>
4
<TABLE>
<CAPTION>
===============================================================================================================================
Compensation Paid (number
and type of security and/or
cash amount) Price Per Share
Name and Address of Agent (Canadian $) (Canadian $) Name of Purchaser
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
N/A N/A N/A N/A
===============================================================================================================================
</TABLE>
9. If the distribution of the security was under section 128(a) of the
Rules, state the number of different purchasers who acquired any
securities of the issuer under that section during the 12-month period
preceding the distribution of this security.
N/A
10. If the distribution of the security was made under section 128(h) of
the Rules, state
(a) the number of different purchasers who acquired securities of
the issuer under that section during the 12-month period
preceding the distribution of this security, and
N/A
(b) the total dollar value (Canadian $) of all securities of the
issuer distributed under that section (including the
distribution of this security) during the 12 month period
preceding the distribution of this security.
N/A
The undersigned hereby certifies that the statements made in this report are
true and correct.
DATED at Vancouver, British Columbia, this 6th day of January, 2000.
SIDEWARE SYSTEMS INC.
Per: "Owen Jones"
Owen Jones
President of the Company
IT IS AN OFFENCE FOR A PERSON TO MAKE A STATEMENT IN A DOCUMENT REQUIRED TO
BE FILED OR FURNISHED UNDER THE SECURITIES ACT THAT, AT THE TIME AND IN THE
LIGHT OF CIRCUMSTANCES UNDER WHICH IT IS MADE, IS A MISREPRESENTATION.
<PAGE>
APPENDIX 23C
SUMMARY FORM - INCENTIVE STOCK OPTIONS
COMPANY NAME: SIDEWARE SYSTEMS INC. SYMBOL: SYD
DATE: DECEMBER 1, 1999
1. NEW OPTIONS PROPOSED FOR ACCEPTANCE:
Date of Grant: October 20, 1999
<TABLE>
<CAPTION>
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Position
(Director/ Sr.
Officer/ No. of No. of Options
Employee/ Insider? Optioned Exercise Expiry Date Granted in
Name of Optionee Consultant) Yes or No Shares Price (m/d/y) Past 12 months
<S> <C> <C> <C> <C> <C> <C>
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Director of
Dr. James Weatherbee the Subsidiary Yes 100,000 $2.78 10/20/04 Nil
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Al Unger Employee No 10,000 $2.78 10/20/04 Nil
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Ed Vandrimmlen Employee No 10,000 $2.78 10/20/04 Nil
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Tony Drezet Employee No 10,000 $2.78 10/20/04 Nil
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Gary Mounts Employee No 5,000 $2.78 10/20/04 Nil
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Vince Sterniolo Employee No 20,000 $2.78 10/20/04 Nil
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Paul Hildebrand Sr. Officer Yes 25,000 $2.78 10/20/04 155,000
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Shanna Benson Employee No 20,000 $2.78 10/20/04 Nil
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Harry Lai Employee No 20,000 $2.78 10/20/04 Nil
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Sava Jurisic Employee No 20,000 $2.78 10/20/04 Nil
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
Chris Hall Employee No 10,000 $2.78 10/20/04 20,000
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
- -------------------------- ---------------- ------------ --------------- ------------- -------------- ----------------
</TABLE>
Total Number of optioned shares proposed for acceptance: 250,000
2. AMENDED OPTIONS PROPOSED FOR ACCEPTANCE
<TABLE>
<CAPTION>
- ---------------------------- -------------------------- -------------------------- -------------------------- --------------------
Name of Optionee No. of Optioned Shares Amended Exercise Price Original Date of Grant New/Current Expiry
Date
<S> <C> <C> <C> <C>
- ---------------------------- -------------------------- -------------------------- -------------------------- --------------------
- ---------------------------- -------------------------- -------------------------- -------------------------- --------------------
Nil Nil Nil Nil Nil
- ---------------------------- -------------------------- -------------------------- -------------------------- --------------------
</TABLE>
<PAGE>
2
3. OTHER PRESENTLY OUTSTANDING OPTIONS: (excluding those included in
item 2 above)
<TABLE>
<CAPTION>
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
No. Of Optioned
Name of Optionee Shares Remaining Exercise Price Original Date of Grant Expiry Date
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
<S> <C> <C> <C> <C>
Grant Sutherland 250,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Michael Colen 200,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Alex Mahon 20,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Veronica Arias 10,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
May Huang 20,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
John Zhang 25,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Chris Hall 20,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Lyn Gubster 25,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Michelle Mac Gregor 20,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
John Dykstra 20,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Neelam Dhat 20,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Robert Dreskai 10,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Vince Taylor 100,000 $2.66 10/04/99 10/04/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Peter Kozicki 25,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Edward White 25,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Paul Hildebrand 100,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Michael Peacock 50,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Marie Russell 50,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Mac Allen 75,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Victoria Gaidacheva 25,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Alexander Prosvirnitsin 40,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Pam Heibein 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Malcolm Wong 40,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
John Wedel 50,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Richard Ford 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Meghan Wickers 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Michael Shackleford 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
</TABLE>
<PAGE>
3
<TABLE>
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
<S> <C> <C> <C> <C>
Colin Scott 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Alex Mahon 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Jennifer Tulloch 20,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Leanne Dick 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Jennifer Burke 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Dee Regis 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Cindy Drudl 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Lou Capannelli 25,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
John Zhang 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Tim Reilly 20,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Willem Schipper 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Lisa Rogers 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Tom Murray 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Richard Simpson 10,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Grant Sutherland 125,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Owen Jones 125,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
James Speros 125,000 $2.33 06/17/99 06/17/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Michael Peacock 100,000 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Tom Murray 100,000 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Marie Russell 100,000 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Lou Capannelli 25,000 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Lisa Rogers 15,000 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Tim Reilly 50,000 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Richard Simpson 17,500 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
John Wedel 56,000 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
John Zhang 20,000 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Alex Mahon 20,000 $1.14 04/14/99 04/14/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Richard Simpson 22,500 $1.35 04/29/99 04/29/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Michael Shackleford 20,000 $1.35 04/29/99 04/29/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Richard Ford 20,000 $1.35 04/29/99 04/29/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Meghan Wickers 20,000 $1.35 04/29/99 04/29/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Jennifer Tulloch 20,000 $1.35 04/29/99 04/29/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Paul Hildebrand 55,000 $1.35 04/29/99 04/29/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
</TABLE>
<PAGE>
4
<TABLE>
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
<S> <C> <C> <C> <C>
Cindy Drdul 20,000 $1.35 04/29/99 04/29/04
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Owen Jones 123,000 $0.36 02/12/97 02/12/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
James Speros 250,000 $0.36 07/06/98 07/06/03
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Owen Jones 55,000 $0.36 07/06/98 07/06/03
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Collin Scott 10,000 $0.36 07/06/98 07/06/03
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Ajay Sidda 50,000 $0.36 07/06/98 07/06/03
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Mary Ellen Ajtony 5,000 $0.50 05/01/96 05/01/01
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Paul Hildebrand 100,000 $0.50 05/01/96 05/01/01
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Owen Jones 300,000 $0.50 05/01/96 05/01/01
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Peter Kozicki 50,000 $0.50 05/01/96 05/01/01
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Grant Sutherland 198,000 $0.50 05/01/96 05/01/01
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Edward White 100,000 $0.50 05/01/96 05/01/01
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Jennifer Tulloch 10,000 $0.50 05/01/96 05/01/01
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Peter James MacLean 30,000 $0.82 03/26/97 03/26/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Peter Kozicki 25,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Jennifer Burke 20,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Owen Jones 75,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Grant Sutherland 75,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Willem Schipper 20,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Edward White 25,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
John McDonald 75,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Jennifer Tulloch 20,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Mary Ellen Ajtony 5,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Paul Hildebrand 75,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Leeanne Dick 5,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
Dee Regis 5,000 $0.70 12/16/97 12/16/02
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
- ---------------------------- -------------------- -------------------- ----------------------- ----------------------
</TABLE>
Total Number of shares optioned, including those proposed for acceptance in 1
and/or 2 above:
4,447,000
- -----------------------------------
<PAGE>
5
4. If optionees include Insiders, state the date on which the shareholder
meeting approving the options or amendments was held: JUNE 30, 1999 or
alternatively, indicate if shareholders' approval must still be
obtained: N/A
5. If applicable, state the date of the press release announcing the grant
of options: OCTOBER 20, 1999
6. State the total issued and outstanding share capital at the date of
grant or amendment: 47,476,695
7. State, as a percentage of the issued shares of the Company indicated in
6 above, the aggregate number of shares that are subject to incentive
stock options, including new options, amended options and other
presently outstanding options: 9.37%
8. If the new options are being granted pursuant to a stock option plan,
state the number of remaining shares reserved for issuance under the
plan: N/A
9. If the Company has completed a public distribution of its securities
within six months of the date of grant, state the per share price paid
by the public investors: $ N/A
10. The stock option agreement is in accordance with Exchange Policy
23.2.10 and 23.4.1 for Venture Companies, which includes the following
provisions: (please check boxes)
x a condition that the option is non-assignable and
non-transferable;
x the period (if any) within which the optionee's heirs or
administrators may exercise any portion of the outstanding
option does not exceed one year from the optionee's death;
x the option may only be exercised while the optionee is a
director, officer, employee or consultant within a period of
not more than 30 days after ceasing to be a director, officer,
employee or consultant;
x a condition that shareholder approval to the grant of the
options shall be obtained prior to the exercise of the options
granted to Insiders;
x a condition that shareholder approval shall be obtained in
respect of amendment to the agreement if the option as
originally constituted was approved by the shareholders or if
the optionee is an Insider of the company at the time of the
proposed amendment; and
x if the incentive stock option agreements grant options to
employees, a representation by the employer that the optionee
is a bona fide employee of the company, subsidiary or
management company providing services to the listed company
(other than consultants performing investor relations
services).
<PAGE>
6
11. If the grant of options is not in complete accordance with Policy 23 -
Director and Employee Stock Options, indicate where there are
deviations, and explain why a waiver of Exchange policy is in the best
interests of the company and the investing public.
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Enforcement action by the Vancouver Stock Exchange, the British Columbia
Securities Commission or other regulatory authorities may result if a person
makes a statement in this document that, at the time, and in light of the
circumstances under which it was made, is a misrepresentation.
THIS DOCUMENT WILL BE PLACED IN THE COMPANY'S PUBLIC FILE IN ACCORDANCE WITH
THE TERMS OF THE COMPANY'S LISTING AGREEMENT
<PAGE>
APPENDIX 23D
DECLARATION OF INCENTIVE STOCK OPTIONS
TO: The Canadian Venture Exchange
RE: SIDEWARE SYSTEMS INC. (the "Company")
---------------------
(Name of Listed Company)
This Declaration certifies an application to the Canadian Venture Exchange (the
"Exchange") for acceptance for filing of the Incentive Stock Options summarized
in the Incentive Stock Options Summary Form attached hereto (the "Filing").
The undersigned hereby certifies that:
1. The undersigned is a director and/or senior officer of the Company and
has been duly authorized by a resolution of the board of directors of
the Company to make this Declaration;
2. The Company is not an inactive company as defined in the Exchange's
Policy 11.2.1;
3. If the Company has undergone a Reverse Takeover as defined in the
Exchange's Policy 18.5, at least 30 days have elapsed from the later of
the closing of the Reverse Takeover and resumption of trading;
4. Any optionee being granted options under this Filing, that is providing
promotional or market-making services for the Company, is a director,
senior officer or bona fide employee of the Company;
5. The Filing is EITHER in all respects in accordance with the Exchange's
Policy 23 - DIRECTOR AND EMPLOYEE STOCK OPTIONS, in effect as of the
date of this Declaration, OR ANY DEVIATIONS ARE INDICATED ON THE
ATTACHED SUMMARY FORM;
6. As of the date of grant there were no material changes in the affairs
of the Company which were not publicly disclosed; and
7. The Company is not currently in default of its financial statement and
fee filing requirements with the British Columbia Securities
Commission.
8. The information on the attached INCENTIVE STOCK OPTIONS SUMMARY FORM is
true.
<PAGE>
Dated this 1st day of December, 1999.
GRANT SUTHERLAND
Name of Director or Senior Officer
/S/ "GRANT SUTHERLAND"
----------------------------------
Signature
DIRECTOR
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Official Capacity
Enforcement action by the Canadian Venture Exchange, the British Columbia
Securities Commission or other regulatory authorities may result if a person
makes a statement in this document that, at the time, and in light of the
circumstances under which it was made, is a misrepresentation.
THIS DOCUMENT WILL BE PLACED IN THE COMPANY'S PUBLIC FILE
<PAGE>
SIGNATURES
Pursuant to the requirements of the SECURITIES EXCHANGE ACT OF 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Sideware Systems Inc.
/S/ "Grant Sutherland"
Date: January 27, 2000 By: Grant Sutherland, Chairman
