1. General Notices

NOTHING IN THIS ELECTRONIC TRANSMISSION CONSTITUTES AN OFFER OF SECURITIES FOR SALE TO ANY PERSON IN GIBRALTAR UNDER THE FINANCIAL SERVICES ACT 2019 OR OTHERWISE, OR ANY JURISDICTION WHERE IT IS UNLAWFUL TO DO SO. THE TOKENS ARE NOT INTENDED TO CONSTITUTE A DIGITAL CURRENCY, BOND, DEBT INSTRUMENT, COMMODITY, SECURITY, FINANCIAL INSTRUMENT OR ANY OTHER FORM OF INVESTMENT IN ANY JURISDICTION NOR ARE THE TOKENS INTENDED TO REPRESENT ANY FORM OF MONEY OR LEGAL TENDER IN ANY JURISDICTION, NOR ANY REPRESENTATION OF MONEY (INCLUDING ELECTRONIC MONEY). THESE TERMS, THE WHITEPAPER, AND ALL OTHER [HUGS TOKEN] DOCUMENTS LINKED TO THE HOLDING AND USE OF TOKENS DO NOT CONSTITUTE A PROSPECTUS OR OFFERING DOCUMENT AND ARE NOT A SOLICITATION FOR INVESTMENT AND DO NOT CONSTITUTE AN OFFER OF SECURITIES TO THE PUBLIC OR A COLLECTIVE INVESTMENT SCHEME. THE TOKENS HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER ANY SECURITIES REGISTRATION ORGANISM OR BODY.

IF YOU ARE A CITIZEN OR RESIDENT OF THE UNITED STATES OF AMERICA, PLEASE NOTE AND BE AWARE THAT THE TOKENS HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS (OR EQUIVALENT LEGISLATION) OF ANY STATE IN THE UNITED STATES OF AMERICA OR OTHER JURISDICTION (INCLUDING GIBRALTAR) AND THE TOKENS MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE OR LOCAL SECURITIES LAWS.

GIVEN THAT THE HUGS DOCUMENTS AND/OR PROJECT AT THE POINT-OF-SALE FALLS OUTSIDE OF THE SCOPE OF BEING A DISTRIBUTED LEDGER TECHNOLOGY PROVIDER UNDER THE FINANCIAL SERVICES ACT 2019 (SCHEDULE 2, PART 16 AND THE FINANCIAL SERVICES (DISTRIBUTED LEDGER TECHNOLOGY PROVIDERS) REGULATIONS 2020) THE COMPANY WAS NOT REQUIRED TO FILE OR SEEK APPROVAL BY ANY GIBRALTAR COMPETENT AUTHORITY OF THE HUGS DOCUMENTS. THE COMPANY WILL USE REASONABLE COMMERCIAL ENDEAVOURS TO COMPLY WITH ALL GIBRALTAR REGULATIONS AND, TO THE EXTENT REASONABLY PRACTICABLE WITH THE REGULATIONS OF SUCH OTHER JURISDICTIONS THAT IT IS ABLE TO. HOWEVER, DUE TO THE CURRENT UNCERTAIN STATE OF REGULATION RELATING TO DISTRIBUTED LEDGER TECHNOLOGY AND TOKEN SALES ACROSS THE WORLD, THE COMPANY CANNOT GUARANTEE THE LEGALITY OF THE TOKEN GENERATING EVENT OR TOKENS TO BE USED AS ENVISAGED BY THE AVAILABLE INFORMATION OR THE COMPANY’S ABILITY TO DEVELOP, STRUCTURE AND LICENSE ANY FUTURE TOKEN FUNCTIONALITY IN EVERY JURISDICTION BUT THE COMPANY WILL USE REASONABLE COMMERCIAL ENDEAVOURS TO BE RESPONSIVE AND COMPLIANT IN THE FACE OF ANY REGULATORY INQUIRY.

THE COMPANY WILL USE REASONABLE ENDEAVOURS TO COMPLY WITH ANTI-MONEY LAUNDERING REQUIREMENTS IN GIBRALTAR IN RELATION TO THE SALE OF HUGS TOKENS, INCLUDING REGISTERING THE COMPANY AS A RELEVANT FINANCIAL BUSINESS WITH THE GIBRALTAR FINANCIAL SERVICES COMMISSION. AS A RESULT, THE COMPANY WILL OBSERVE STRICT PROCESSES IN RELATION TO THE SALE OF HUGS TOKENS, INCLUDING DUE DILIGENCE PROCESSES.

THE COMPANY HAS USED REASONABLE ENDEAVOURS TO APPROACH THE TOKEN GENERATING EVENT IN A RESPONSIBLE AND SENSIBLE MANNER. GIVEN THE LEGAL UNCERTAINTY OF DISTRIBUTED LEDGER TECHNOLOGIES, BUSINESSES AND ACTIVITIES AS WELL AS CRYPTOCURRENCIES AND CRYPTOCURRENCY-RELATED BUSINESSES AND ACTIVITIES IN A NUMBER OF JURISDICTIONS, THE COMPANY HAS SPENT TIME AND RESOURCES TO CONSIDER ITS BUSINESS APPROACH AND WHERE IT PROPOSES TO OPERATE NOW AND IN THE FUTURE. IT IS POSSIBLE THAT THE COMPANY’S TOKENS DESCRIBED IN THIS WHITEPAPER AND WHICH ARE THE SUBJECT OF THE TOKEN GENERATING EVENT MAY COMPRISE A SECURITY IN YOUR JURISDICTION OR THE OFFER FOR SALE BY THE COMPANY OF THE TOKENS IN YOUR JURISDICTION MAY BE A REGULATED OR PROHIBITED ACTIVITY AND IN EITHER OF THESE CASES THE COMPANY MAY BE LIABLE FOR THE SAME. THE COMPANY ACCEPTS NO RESPONSIBILITY OR LIABILITY TO YOU IN THESE OR ANY OTHER CIRCUMSTANCES. YOU ARE STRONGLY ADVISED TO TAKE INDEPENDENT LEGAL ADVICE IN RESPECT OF THE LEGALITY IN YOUR JURISDICTION OF YOUR PARTICIPATION IN THE TOKEN GENERATING EVENT AND PURCHASE OF TOKENS.

YOU UNDERSTAND AND AGREE THAT TO THE EXTENT THAT YOU ARE NOT A PROHIBITED PARTICIPANT, IT IS SOLELY UP TO YOU TO ENSURE THAT NO PRIOR OR SUBSEQUENT APPROVAL, NOTIFICATION, REGISTRATION OR LICENCE IS NEEDED TO PARTICIPATE IN, ACQUIRE, HOLD AND/OR USE THE TOKENS. IF SUCH IS NEEDED, IT IS SOLELY UP TO YOU TO OBTAIN SUCH PRIOR OR SUBSEQUENT APPROVAL, NOTIFICATION, REGISTRATION OR LICENCE OR ANY OTHER FORM FOR THE PARTICIPATION IN, ACQUISITION, HOLDING AND/OR USE OF THE TOKENS. ALL OF THIS APPLIES IN THE COUNTRY WHERE YOU ARE A CITIZEN, NATIONAL, RESIDENT OR HAVING A SIMILAR CONNECTION OR WHERE THE PERSON MAY BE INCORPORATED, REGISTERED OR EFFECTIVELY MANAGED, AND YOU UNDERSTAND THAT THE COMPANY SHALL NOT IN ANY WAY BE LIABLE FOR ANY NON-CONFORMITY OF THE ABOVE BY YOU.

TOKENS DO NOT ENTITLE YOU TO ANY EQUITY, GOVERNANCE, VOTING, ANY CONTROL OVER THE MANAGEMENT OF THE COMPANY WHATSOEVER OR SIMILAR RIGHT OR ENTITLEMENT IN THE COMPANY OR IN ANY OF ITS AFFILIATED COMPANIES AND DO NOT EVIDENCE INTERESTS IN OR REPRESENT AN ARRANGEMENT WITH RESPECT TO POOLED PROPERTY OR THE RIGHT TO PARTICIPATE IN OR RECEIVE PROFITS OR INCOME ARISING FROM THE ACQUISITION, MANAGEMENT OR DISPOSAL OF POOLED PROPERTY OR SUMS PAID OUT OF SUCH PROFITS OR INCOME. THE COMPANY DOES NOT RECOMMEND THAT YOU PURCHASE TOKENS UNLESS YOU HAVE PRIOR EXPERIENCE WITH CRYPTOCURRENCY TOKENS, BLOCKCHAIN-BASED SOFTWARE, DISTRIBUTED LEDGER TECHNOLOGY AND UNLESS YOU HAVE TAKEN INDEPENDENT PROFESSIONAL ADVICE.

YOU UNDERSTAND AND AGREE THAT THE COMPANY SHALL NOT BE HELD LIABLE FOR ANY SPECULATIVE INTENTION BY YOU OR FROM ANY THIRD PARTIES WHO ATTEMPT TO HOLD THE TOKENS FOR ANY OTHER REASON.

YOU UNDERSTAND AND AGREE THAT THE TOKENS CARRY NO RIGHTS, WHETHER EXPRESS OR IMPLIED, OTHER THAN THE RIGHT TO USE THE TOKENS AS SET OUT IN THIS DOCUMENT AND DOES NOT REPRESENT OR CONFER ANY OWNERSHIP RIGHT OR STAKE, SHARE OR SECURITY OR EQUIVALENT RIGHTS, INTELLECTUAL PROPERTY RIGHTS OR ANY OTHER FORM OF PARTICIPATION RELATING TO THE COMPANY. THE COMPANY DOES NOT GIVE YOU ANY ENTITLEMENT TO ACQUIRE ANY SUCH INTEREST OR ENTITLEMENT IN RESPECT OF THE COMPANY.