Document:

global_s1a5-ex1039.htm

 

    
      

    

    Exhibit 10.39

     

     

    
      SETTLEMENT AGREEMENT AND
RELEASE 

       

      This Settlement Agreement and Release
(this "Agreement") between Global Resource Corporation, a Nevada Corporation with
its principal executive office located at 1000 Atrium Way, Suite 100, Mount Laurel, New
Jersey 08054 ("GRC" or the "Company"), and Eric Swain, who resides at 151 Summit Avenue,
Pompton Lakes, New Jersey 07442, for himself and any heirs, executors and administrators
(collectively referred to throughout this Agreement as "Swain") is dated as of
10/02, 2009.

       

      WITNESSETH:

       

      WHERAS, Swain had served as the
Company's Chief Executive Officer and on the Board of Directors of the Company
prior to July 6, 2009.

       

      NOW,
THEREFORE, in
consideration of the mutual covenants and representations contained in this Agreement and
for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties agree as follows:

       

      1.          Termination
of Prior Agreements. The Company and Swain hereby agree that all
understandings and agreements, written or oral, between the Company and Swain,
including, without limitation, that certain Summary of Terms of Proposed
Employment Agreement (undated) by and between the Company and Swain, filed as
Exhibit 10.1 to the Company's Current Report on Form 8-K filed on October 2,
2008 (the "Summary of Proposed Terms"), have been terminated and are of no
further force or effect with no further consideration and/or benefits due from
GRC and/or its affiliates to Swain thereunder or otherwise.

       

      2.          Consideration.
As consideration for entering into this Agreement and the continued compliance
with the representations, covenants and obligations of Swain hereunder, but
subject to Swain's continued compliance with the terms of this Agreement, the
Company agrees
that:

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          	
                	
                  (a)

                	
                  through
      January 6, 2011, the Company shall pay to Swain any bonuses that would
      have been payable to Swain pursuant to the section of the Summary of
      Proposed Terms entitled "Bonus" as if the Summary of Proposed Terms was
      still in effect solely for this purpose and solely for bonuses that may be
      earned through January 6,
2011;

                

        

      

       

      
        
          	
                	
                  (b)

                	
                  the
      Company shall continue to provide to Swain full health insurance benefits
      through July 5, 2010 as provided to him prior to the termination of
      employment with the Company and shall retroactively reimburse Swain for
      any expenses incurred by him from July 6, 2009 through the date hereof
      that would have been paid for by the Company pursuant to such health
      insurance benefits;

                

        

      

       

      
        
          	
                	
                  (c)

                	
                  of
      the options previously granted to Swain by the Company to purchase
      5,000,000 shares of the Company's Common Stock at an exercise price of
      $1.18, (i) Swain shall retain options to purchase 1,000,000 shares of
      Common Stock at an exercise price of $1.18 that vested prior to July 6,
      2009, (ii) Swain shall retain additional options to purchase 1,000,000
      shares of Common Stock at an exercise price of $1.18 that have not yet
      vested and which shall fully vest on December 1, 2009, (iii) Swain shall
      retain additional options to purchase 1,000,000 shares of Common Stock at
      an exercise price of $1.18 that have not yet vested and which shall fully
      vest on December 1, 2010 and (iv) the remaining options to purchase
      2,000,000 shares of Common Stock at an exercise price of $1.18 are
      hereby
      cancelled;

                

        

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          	
                	
                  (d)

                	
                  as
      soon as legally possible after the execution of this Agreement, but no
      later than 5 business days after execution of this Agreement, the Company
      shall issue to Swain
      600,000 shares of its Common Stock that are registered under the
      Securities Act of 1933 pursuant to an effective registration statement on
      Form S-8 filed on January 29, 2008 (the "S-8"). For a period of one
      hundred eighty (180) days commencing upon execution of this Agreement,
      Swain shall refrain from selling more than 35,000 shares of S-8 shares
      during any calendar week. The Company has determined that the fair market
      value for this issuance of stock with the restrictions placed upon it is
      $0.50 per share. The
      Company will issue Swain a Form 1099 in the amount
      of $300,000.00;

                

        

      

       

      
        
          	
                	
                  (e)

                	
                  on
      July 1, 2010 and October 6, 2011, the Company shall issue to Swain 600,000
      shares of its Common Stock that are registered under the Securities Act of
      1933 pursuant to the S-8, for total issuances aggregating 1,800,000 shares
      (the "S-8 Shares"), which issuances shall be at the closing price on the
      last day of trading preceding the issuance date. The Company will issue
      Swain a Form 1099 upon each issuance reflecting the price at issuance. The
      shares issued on July 1, 2010 and October 6, 2011 will not be subject to
      the restrictions in trading set forth in paragraph
  2(d);

                

        

      

       

      
        
          	
                	
                  (f)

                	
                  upon
      execution, the Company will additionally issue to Swain 450,000 shares of
      restricted stock subject to SEC Rule 144;
and

                

        

      

       

      
        
          	
                	
                  (g)

                	
                  as
      promptly as practicable after the execution of this Agreement, the
      Company
      shall transfer to Swain the title of ownership of the Company's car
      currently in Swain's possession and provide him a Form 1099 for
      approximately $27,000. The Company acknowledges that Swain has obtained
      automobile insurance with respect to such car and has provided evidence
      thereof to the Company.

                

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      3.          No
Consideration
Absent Execution of this Agreement. The parties understand and agree that
the parties are entering into this Agreement in reliance on the representations,
warranties and covenants contained herein and that either party would not
receive the consideration and benefits specified in this Agreement except for
the party's execution of this Agreement and the party's complete and timely
fulfillment of their respective obligations contained herein.

       

      4.          Right of First
Offer.

       

      (a)      
  If Swain desires to sell any S-8 Shares, excluding the 600,000 shares
issued upon execution of the Agreement, he shall first deliver to the Company a
written notice (the "Offer Notice"), which Offer Notice shall include: (A) the
number of S-8 Shares to be sold (the "Offered Stock"); (B) the purchase price
for the shares of Offered Stock; and (C) an offer to sell such Offered Stock to
the Company (or its assignee or designee) in accordance with this Section 4, at
the purchase price specified in such Offer Notice. The Company and/or its
assignee(s) or designee(s) shall then have the first right and option (but not
the obligation) to purchase all or any of the Offered Stock at the purchase
price stated in the Offer Notice. Such right and option may be exercised by the
Company and/or its assignee or designee by giving written notice of such
election (including the amount of Offered Stock the purchaser desires to
purchase) to Swain within three (3) days following receipt of the of the Offer
Notice if the purchase price is equal to or less than $0.75 per share or within
ten (10) days if the purchase price is greater than $0.75 per share (the
"Acceptance Notice").

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)        
Unless the parties otherwise agree in writing, the closing of any purchase
and sale of Offered Stock pursuant to this Section 4 shall take place on
the tenth (10th) day following delivery of the Acceptance Notice (or the next
succeeding business day if such day is not a business day). In the event
the Company and/or its assignee or designee fails to deliver an Acceptance Notice with respect to all of the
Offered Stock set forth in any Offer Notice within three (3) days
following receipt of the of the Offer Notice if the purchase price is equal to
or less than $0.75 or within ten (10) days if the purchase price is greater than
$0.75, Swain shall have the right
to sell any remaining Offered Stock. Such sale shall close during the calendar
quarter in question. If Swain does not consummate any such sale within
such calendar quarter, then such sale may not be consummated without repetition
of the procedures set forth in this Section 4.

       

      5.          
Non-Compete/Non-Solicit. Swain agrees that for a period of two
(2) years following the
date of execution of this Agreement (the "Restricted Period"), Swain
shall not, directly or indirectly, in any manner whatsoever engage or
participate in, either alone or with others (including as an employee,
representative, agent, independent contractor, broker, consultant, partner,
owner, director, trustee or stockholder of any partnership, business trust,
company, corporation or other business entity that engages in), any activity
that in any way competes with any company involved in the business of microwave
resource recovery technology. During the Restricted Period, Swain shall not,
directly or indirectly: (i) contact any Company employee other than the Company's CEO with respect to
any matter (except as explicitly requested by the
Company) or induce or attempt to influence any then current employee of the
Company to leave its employ with the Company or hire an individual who was
employed by the Company within the year
prior to this Agreement; or (ii) contact (except as explicitly- requested
by the Company), solicit or direct any then-existing customer of the Company for
the purpose of competing with the Company, or in any manner attempting to
influence any other person or other entity to cease or alter its business
relationship with the Company, or with respect to any matter relating to the
business or the intellectual property of the Company, or (iii) commit any act
that injures the business or business relationships of the Company or otherwise
has an adverse economic effect on the Company, if such act was committed
intentionally to have such consequence. If a court of competent jurisdiction
explicitly determines in a final judgment that Swain breached his obligations
under this Section 5, then the time periods hereunder shall be extended by the
period of time equal to that period beginning when the activities constituting
such violation commenced and ending when the activities constituting such
violation terminated. It is understood that the provisions of the preceding
sentence shall be in addition to any remedies otherwise available to the Company
hereunder for the breach by Swain of the terms of this Agreement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      6.          
Confidential
Information. Swain acknowledges that he had access to information
that is confidential and proprietary to the Company, including without
limitation, business, operational and marketing plans, financial information,
ideas, concepts, processes, business methods, procedures, operations, software,
source, code, object codes, specifications, documentation, trade secrets,
technology, cost, pricing and sales information, lists and files of the Company
in whatever form or media (collectively, "Confidential Information"). Swain
agrees that GRC had no obligation to specifically identify any information as
Confidential Information for it to be entitled to protection as such. Swain
agrees to return to GRC all copies of Confidential Information directly or
indirectly in his possession or control. Swain further agrees not to
disclose to any person, other than his legal representatives and accountants as
necessary, any Confidential Information without the prior written consent of
GRC.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.          Non-Disparagement.
In consideration of the parties' agreements as set forth herein, the parties
agree that they will not make disparaging or defamatory statements, nor will
they take any action which would reasonably have the effect of injuring the
Company, about each other or, as applicable, their past or present officers,
directors, agents and employees, to any third parties, including, without
limitation, to any customer, employee, vendor, stockholder or
client.

       

      8.          Amendment
to 8-K. As promptly as practicable after the execution of this Agreement,
the Company shall file a Form 8-K/A amending the Form 8-K filed by the Company
of July 10, 2009, in form and substance as set forth in Exhibit A to this
Agreement.

       

      9.          Relief for Breach of this
Agreement.

       

      (a)      If
a court of competent jurisdiction explicitly determines in a final judgment that
Swain has materially breached the terms of this Agreement, the Company shall be
forever relieved of all of its obligations under Section 2 (Consideration) of
this Agreement not yet undertaken and Swain shall be prohibited from (i) selling
any S-8 Shares already received by him hereunder of which Swain still owns or
controls, which S-8 Shares shall immediately revert back to the Company and (ii)
exercising any previously unexercised options to purchase shares of the
Company's Common Stock, which options shall be deemed immediately cancelled. It
is understood that the provisions of the preceding sentence shall be in addition
to any remedies otherwise available to the Company hereunder for the breach by
Swain of the terms of this Agreement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)      
  Each party agrees that it is fair, reasonable and necessary for the
party to make the
covenants and undertakings set forth herein. Each party further agrees that if
such party breaches or attempts to breach or violate any of the provisions, the
other party will be irreparably harmed and monetary damages will not provide an
adequate remedy. Accordingly, it is agreed that each party may seek and shall be
entitled to temporary, preliminary and permanent injunctive relief (without the
necessity of posting a bond or other security) to prevent any breach or
threatened breach of this Agreement or to enforce the provisions hereof, and
each party hereby consents to the granting of such injunctive relief, including
specific performance, without having to prove the inadequacy of the available
remedies at law or actual damages and without the requirement of posting a bond
or other security. It is understood that any such injunctive remedy shall not be
exclusive or waive any rights to seek other remedies at law or in equity, and
each party shall be entitled to commence legal, judicial or other process. Each
party agrees that the covenants and undertakings covered by this Agreement are
reasonable in light of the facts as they exist on the date hereof However, if at
any time, a court having jurisdiction over this Agreement shall determine that
the scope, subject matter or duration of any covenant contained herein is
unreasonable in any respect, it shall be modified as such court determines may
be reasonable so that each party's interests are protected.

       

      10.       
General
Release of Claims.

       

      (a)         
Swain knowingly and voluntarily releases and forever discharges GRC, including
all present or former affiliates, successors, predecessors, purchasers or
sellers of stock or assets, subsidiaries, divisions, successors, assigns,
insurers, counsel, investors, creditors, representatives and the current and
former employees, stockholders, partners, associates, attorneys, officers,
directors and agents thereof (collectively, "GRC Parties"), from any and all
claims, known to Swain, which Swain has or may have against such GRC Parties as
of the date of
execution of this Agreement, including, without limitation, any and all claims
related to the termination of Swain's employment with the Company and his
removal from the Company's Board of Directors, as well as the description
thereof contained in the Form 8-K filed by the Company of July 10, 2009, and in any other
Company statements and filings and any claims for slander or libel related
thereto. Swain further covenants and agrees not to sue the Company or any
current or future officer, director, employee or other representative of the
Company with respect to any matter whatsoever except in relation to the
violation by the Company of this Agreement, or arising from any breach or
alleged breach of any representation, warranty, covenant or obligation of the
Company under the Agreement.

       

      (b)        
GRC knowingly and voluntarily releases and forever discharges Swain from any and
all claims, the basis of which are known to GRC and occurred during Swain's term
of employment, which GRC has or may have against Swain as of the date of
execution of this Agreement; but specifically excluding any claims relating to
(i) acts of fraud or illegality committed by Swain at any time during his term
of employment with Company or (ii) arising from any breach or alleged breach of
any representation, warranty, covenant or obligation of Swain under this
Agreement.

       

      11.     Further
Assurances. Swain hereby
agrees to execute and deliver such other instruments
and take such other action as GRC may request in connection with the
transactions contemplated by this Agreement. In addition, (i) upon explicit
written request by the Company, Swain shall reasonably cooperate and assist with
all inquiries from Company
employees, vendors and/or customers at no additional cost or expense to the
Company and without any further consideration to Swain hereunder, and (ii) Swain
agrees to reasonably cooperate with the Company regarding any potential suit,
claim, litigation or demand for damages of any kind or nature
brought by a third party against the Company, without expense or loss of any
type to Swain.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      12.         Governing
Law and Interpretation. This Agreement shall be governed and conformed
in accordance with the laws of the State of New Jersey, without regard to its
choice or conflict of laws provisions. Any litigation proceeding under
this Agreement shall be confidential in nature
to the fullest extent permitted by applicable law. In any action, lawsuit
or proceeding brought to enforce or interpret the provisions of this Agreement
and/or arising out of or relating to any dispute between the parties, the
prevailing party with respect to each specific issue in a matter shall be
entitled to recover all of his or its costs and expenses relating to such issue
(including without limitation, reasonable attorney's fees and disbursements) in
addition to any other relief to which such party may be entitled.

       

      13.   
Notices. Any notice required or
permitted to be given under this Agreement shall be sufficient if in writing,
and if sent by overnight courier service for next day delivery to the address
of such party below (or such other addresses as the party may later specify in a
written notice to the other party sent in accordance with this Notice
provision):

       

      To Swain:

       

      Eric
Swain

      151
Summit Avenue

      Pompton
Lakes, NJ 07442

       

      With a
copy to:

       

      Bienstock
& Michael, P.C.

      Continental
Plaza

      411
Hackensack Ave., 7th
Floor

      Hackensack,
NJ 07601

      Attn:
Ronald S. Bienstock, Esq.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

       

      To the
Company:

       

      Global
Resource Corporation

      1000
Atrium Way, Suite 100

      Mount
Laurel, NJ 08054

      Attention:
CEO

       

      With a
copy to:

       

      Westerman
Ball Ederer Miller & Sharfstein, LLP

      170 Old
Country Road, 4th
floor

      Mineola,
New York 11501

      Attn:
Alan C. Ederer, Esq.

       

      All
notices hereunder shall be deemed received the day after being sent by next-day
delivery with a recognized overnight courier service.

       

                Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

       

      15.     Headings. The section and other headings
contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

       

      16.          Amendment.
This Agreement may not be modified, altered or changed except in writing, in a
document signed by all parties.

       

      17.       
  Entire
Agreement. This Agreement sets forth the entire agreement between the
parties hereto, and fully supersedes any prior agreements or understandings
between the parties.

       

      18.         Severability.
Any term or provision of this Agreement which is invalid or unenforceable shall
be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining rights of the party intended to
be benefited by such provision.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      19.         
Product
of Negotiation. The terms of this Agreement are the product of
negotiation
and compromise between the parties. The meaning, effect and terms of this
Agreement have been discussed by the parties with their respective counsel and
agreed upon by the parties hereto. In the event of an ambiguity in the
interpretation of this Agreement, no party shall be deemed to have been the
draftsman thereof.

       

      IN
WITNESS WHEREOF, the parties hereto have knowingly and voluntarily executed this
Agreement as of the date first set forth above.

       

       

      

      
      

       

      
        	 	
                /s/  Eric
      Swain                                             
      

                ERIC SWAIN

                 

                 

                
                  GLOBAL
      RESOURCE CORPORATION

                   

                  By:  /s/ P.A.
      Worthington                             
      

                  Name:  
      P.A. Worthington

                  Title:  
      Chairman

                

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
      

       

      
        	

                 /s/ Eric
      Swain                                             
      

                ERIC SWAIN

              	

                
                  GLOBAL
      RESOURCE CORPORATION

                   

                  By:  /s/ P.A.
      Worthington                             
      

                  Name:  
      Peter Anthony Worthington

                  Title:  
      Acting Chairman

                

              

      

       

      
      

       

      
        	
                /s/
      Tiffany
      Rex                                            
      

                Name:  Tiffany Rex

                Witness

              	
                 /s/ Sandija Bayot

                Name:  Sandija
      Bayot

                Witness

              

      

       

      
      

       

       

       

      
        	On this, the 2nd
      day of October, 2009, before me a New Jersey  Attorney,
      personally appeared Eric Swain and the witness, Tiffany Rex,  known
      to me (or satisfactorily proven) to be the persons whose names are
      subscribed to the within instrument, and acknowledged that they executed
      the same for the purposes therein contained.	On this,
      the 28th day of September, 2009, before me a notary public,
      personally appeared Peter Worthington and the witness, Sandija
      Bayot,  known
      to me (or satisfactorily proven) to be the persons whose names are
      subscribed to the within instrument, and acknowledged that they executed
      the same for the purposes therein
  contained.

      

       

       

      
      

       

      
        	
                In
      witness hereof, I hereunto set my hand.

                 

                 

                /s/
      [unreadable]                                           
      

                New Jersey Attorney-at-Law

              	
                In
      witness hereof, I hereunto set my hand and official
seal.

                 

                /s/ Melinda
      Saenz

                Notary PublicFiled by sedaredgar.com - Adira Energy Ltd. - Exhibit 4.6

AMG OIL LTD. 
SUBSCRIPTION AGREEMENT 

TO:          
AMG Oil Ltd. (the “Corporation”) 

The undersigned (hereinafter referred to as the
“Subscriber”) hereby irrevocably subscribes for and agrees to purchase
the number of units (“Units”) of the Corporation set forth below for the
aggregate subscription price set forth below, representing a subscription price
of US$0.25 per Unit, upon and subject to the terms and conditions set forth in
“Terms and Conditions of Subscription” attached hereto (together with this page
and the attached Schedules, the “Subscription Agreement”). Each Unit
consists of one common share (“Common Share”) in the capital of the
Corporation and one half of one transferable Common Share purchase warrant (each
whole such purchase warrant a “Warrant”). Each whole Warrant shall be
exercisable into one additional Common Share of the Corporation (“Warrant
Share”) at an exercise price of US$0.50 per Warrant Share for a period of
two years from the date of issuance.

The Subscriber agrees to be bound by the “Terms and Conditions
of Subscription” attached hereto and agrees that the Corporation may rely upon
the covenants, representations and warranties contained in the Subscription
Agreement. In addition to the face page, the Subscriber must also complete all
applicable schedules attached hereto. All dollar values referred to in this
Subscription Agreement are Canadian dollars unless otherwise indicated. 

Name and Address of Subscriber: 

	Details of Subscriber: 	 	  
	 	 	Number of Units:
      _____________________________________ 
	  	 	
	(Name of Subscriber - please print) 	 	  
	 	 	 
	 
    	 	  
	By:   _________________________________________	 	Aggregate Subscription Price:
      __________________________
	         (Authorized Signature) 	 	(the “Subscription Price”) 
	 
    	 	  
	  	 	Details of Beneficial Purchaser (if not the same
      as 
	(Official Capacity or Title - please print) 	 	Subscriber): 
	 
    	 	  
	 	 	 
	(Please print name of individual whose signature 	 	(Name of Beneficial Purchaser) 
	appears above if different than the name of the 	 	  
	Subscriber printed above.) 	 	  
	  	 	(Beneficial Purchaser’s Address) 
	 	 	 
	(Subscriber’s Address) 	 	  
	  	 	(Beneficial Purchaser’s Telephone Number) 
	 	 	 
	(Telephone Number) 	 	  
	 	 	 
	 
    	 	  
	(E-Mail Address) 	 	  
	 	 	 
	 	 	 

	Register the Units as set forth below: 	 	Deliver the Units as set forth below:
    
	 	 	 
	 	 	 
	(Name) 	 	(Name)
    
	 	 	 
	 	 	 
	(Account reference,
      if applicable) 	 	(Account reference, if applicable) 
	 	 	 
	 	 	 
	(Address) 	 	(Contact Name) 
	 	 	 
	 	 	 
	(Address 	 	(Address) 
	 	 	 
	 	 	 
	  	 	(Address) 

	ACCEPTANCE: The undersigned hereby accepts the above
      subscription on the terms and conditions contained in the Subscription
      Agreement. 
	
	AMG OIL LTD. 
	 
	 
	Per:             
       __________________________________________                        
      Date: ________________________________________
	                                                             
      Authorized Signatory 

 Terms and Conditions of Subscription

 Subscription

	
1. 		
The Subscriber hereby irrevocably subscribes for and agrees to purchase the number of Units set on the cover page hereof. The Subscriber acknowledges and agrees that the issue and sale of the Units is conditional upon the
acceptance of this Subscription Agreement by the Corporation. It is understood and agreed that this Subscription Agreement and the Subscription Price shall be returned without interest or deduction to the Subscriber at the address indicated above if
the subscription is not accepted by the Corporation.

	
	 	 
	
2. 		
The Subscriber tenders herewith the Subscription Price by wire transfer in accordance with the instructions contained in Schedule “D” hereto and acknowledges that the issuance of the Common Shares and Warrants shall take
place forthwith after acceptance by the Corporation.

	

 Representations and Warranties of the Subscriber

	
3. 		
The Subscriber represents and warrants to the Corporation as follows and acknowledges that the Corporation is relying on such representations and warranties in accepting this subscription:

	
	 	 	 
		
(a) 		
the Subscriber is purchasing the Units as principal for its own account and not for the benefit of any other person or is deemed under securities laws of Canada to be purchasing as principal, and in either case, is purchasing the
Units for investment only and not with a view to resale or distribution;

	
	 	 	 
		
(b) 		
this Subscription Agreement has been duly authorized, executed and delivered by the Subscriber and constitutes a legal, valid, binding and enforceable obligation of the Subscriber;

	
	 	 	 
		
(c) 		
if an individual, the Subscriber has obtained the age of majority and is legally competent to execute this Subscription Agreement and complete the subscription for Units hereunder;

	
	 	 	 
		
(d) 		
if not an individual, (i) the Subscriber is a valid and existing entity, has, full power, necessary capacity and absolute authority to execute this Subscription Agreement and to observe and perform its covenants and obligations
hereunder and has taken all necessary action in respect thereof; (ii) all necessary approvals have been given to authorize it to execute this Subscription Agreement; (iii) the Subscriber agrees to deliver to the Corporation such evidence of such
authority may be reasonably required; (iv) the execution of this Subscription Agreement and the transactions contemplated hereby will not result in the violation of any terms or provisions of any law applicable to or the constating documents of the
Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which it is or may be bound;

	
	 	 	 
		
(e) 		
the Subscriber has not received any document purporting to describe the business and affairs of the Corporation that has been prepared primarily for delivery to and review by prospective investors so as to assist those investors
to make an investment decision in respect of the Units being sold;

	
	 	 	 
		
(f) 		
the Subscriber has had opportunity to review the filings made by the Corporation under the United States Securities Exchange Act of 1934, as amended, which filings may be viewed at the web site of the United States Securities
Exchange Commission at www.sec.gov and at www.sedar.com, including the Form 20-F shell company report filed by the Corporation with the SEC on September 4, 2009 (the “Form 20-F Report”);

	

	 	(g) 	
      all prior agreements between Corporation and the
      Subscriber, including any prior subscription agreements, shareholders’
      agreements or other documents, are hereby terminated, superseded and
      replaced by this Subscription Agreement;

	 	 	 	 
	 	(h) 	
      if the Subscriber is a resident in a province or
      territory of Canada, the Subscriber has completed and duly executed a copy
      of the Accredited Investor Certificate, which is attached to this
      Subscription Agreement as Schedule “A”;

	 	 	 	 
	 	(i) 	
      the Subscriber hereby acknowledges the volatile nature of
      investments in the junior oil and gas exploration sector and the
      consequent potential that the entire investment in the Corporation could
      be lost as a result of the inherent risks associated with such investments
      as well as the uncertainty in procuring adequate and ongoing funding
      required by the Corporation to bring any project to profitable production.
      The Subscriber has been referred to the Form 20-F Report for a full
      discussion of such risks. The Subscriber further hereby acknowledges and
      agrees that it has not relied in any manner upon the information and/or
      advice given by the Corporation or any subsidiary thereof in the
      preparation, negotiation and/or implementation of this subscription and
      has taken all reasonable actions to satisfy itself as to the consequences
      of entering into this subscription and any decision taken by it to invest
      in the Corporation is as a result of its own investigations of the
      information provided by the Corporation and from no other
source;

	 	 	 	 
	 	(j) 	
      the Subscriber confirms that:

	 	 	 	 
	 		(i) 	
      the Subscriber is not resident in the United States or a
      “U.S. Person” as defined in Regulation S under the United States
      Securities Act of 1933, as amended (the “U.S. Securities
      Act”);

	 	 	 	 
	 		(ii) 	
      the Subscriber was not offered the Units in the United
      States;

	 	 	 	 
	 		(iii) 	
      the structure of this transaction is not a scheme to
      avoid the registration requirements of the U.S. Securities Act;

	 	 	 	 
	 		(iv) 	
      the Subscriber has no intention to distribute either
      directly or indirectly the Units in the United States, except in
      compliance with U.S. Securities Act;

	 	 	 	 
	 		(v) 	
      the Subscriber did not execute or deliver this
      Subscription Agreement in the United States; and

	 	 	 	 
	 		(vi) 	
      the authorized representative of the Subscriber that
      originated the buy order on the Subscriber’s behalf was not in the United
      States when the buy order was originated;

	 	 	 	 
	 	(k) 	
      the Subscriber acknowledges that the offer and sale of
      the Units has not been registered under the U.S. Securities Act or the
      securities laws of any state of the United States, that the Units may not
      be offered or sold, directly or indirectly, in the United States except
      pursuant to registration under the U.S. Securities Act and the securities
      laws of all applicable states or available exemptions therefrom and the
      Corporation has no obligation or present intention of filing a
      registration statement under the U.S. Securities Act or any state
      securities laws in respect of any of the Units;

	 	 	 	 
	 	(l) 	
      if the Subscriber is not a resident of Canada and is not
      a resident of the United States, or otherwise not subject to the
      securities laws of any of the provinces of Canada, the Subscriber has
      completed and duly executed a copy of the International Subscriber
      Certificate, which is attached to this Subscription Agreement as Schedule
      “B”;

	 	 	 	 
	 	(m) 	
      every Subscriber that is not a resident of Canada or the
      United States represents and warrants the following:

	 	 	 	 
	 		(i) 	
      it is resident and located outside of Canada and the
      United States;

	 	 	 	 
	 		(ii) 	
      all acts of solicitation, conduct or negotiations
      directly or indirectly in furtherance of the purchase of the Units
      occurred outside of Canada and the United States and no offer
  was

	 		
      made to the Subscriber in Canada or the United States and
      the buy order in respect of the subscription was not placed from within
      Canada or the United States;

	 	 	 	 
	 	(iii) 	
      is knowledgeable of, or has been independently advised as
      to, the applicable securities laws of the securities regulatory
      authorities (the “Authorities”) having application in the
      jurisdiction in which the Subscriber is resident (the “International
      Jurisdiction”) which would apply to the acquisition of the
      Subscriber’s Units;

	 	 	 	 
	 	(iv) 	
      the Subscriber is purchasing the Units pursuant to
      exemptions from all prospectus and registration requirements, or
      equivalent requirements, under applicable securities laws or the
      Subscriber is permitted to purchase the Units under the applicable
      securities laws of the Authorities in the International Jurisdiction
      without the need to rely on any exemptions;

	 	 	 	 
	 	(v) 	
      the applicable securities laws of the Authorities in the
      International Jurisdiction do not require the Corporation to make any
      filings or seek any approvals of any kind whatsoever from any Authority of
      any kind whatsoever in the International Jurisdiction in connection with
      the issue and sale or resale of the Units; and

	 	 	 	 
	 	(vi) 	
      the purchase of the Units by the Subscriber does not
      trigger:

	 	 	 	 
	 		(1) 	
      any obligation to prepare and file a prospectus or
      similar document, or any other report with respect to such purchase in the
      International Jurisdiction; or

	 	 	 	 
	 		(2) 	
      any continuous disclosure reporting obligation of the
      Corporation in the International Jurisdiction; and

	 	 	 	 
	 		(3) 	
      the Subscriber will, if requested by the Corporation,
      deliver to the Corporation a certificate or opinion of local counsel from
      the International Jurisdiction which will confirm certain of the matters
      referred to in the subparagraphs above to the satisfaction of the
      Corporation, acting reasonably.

	 	(n) 	
      the Subscriber has not made its decisions to purchase the
      Units through or as a result of any general solicitation or general
      advertising, including articles, notices, investor presentations or other
      communications published in a newspaper, magazine or similar media or any
      seminar or meeting whose attendees have been invited by general
      solicitation or general advertising and the distribution of the Units has
      not been accompanied by any advertisement, including, without limitation,
      in printed public media, radio, television or telecommunications,
      including electronic display or as part of a general
  solicitation;

	 	 	 	 
	 	(o) 	
      no person has made any written or oral
      representations:

	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase the
    Units;

	 	 	 	 
	 		(ii) 	
      that any person will refund the Subscription Price;
    or

	 	 	 	 
	 		(iii) 	
      as to the future price or value of the Units;
  and

	 	 	 	 
	 	(p) 	
      None of the funds being used to purchase the Units are,
      to the Subscriber’s knowledge, proceeds obtained or derived, directly or
      indirectly, as a result of illegal activities.

By accepting the Units, the Subscriber
shall be representing and warranting that the foregoing representations and
warranties are true and correct as at the time of completion of the subscription
for Units on the date of acceptance of this Subscription by the Corporation,
with the same force and effect as if they had been made by the Subscriber at
such time and shall in each case survive the closing of the transactions
contemplated hereby notwithstanding any subsequent disposition by the Subscriber
of the Units.

Representations, Warranties and Covenants of the Corporation

	4. 	
      The Corporation represents and warrants to the Subscriber
      as follows and acknowledges that the Subscriber is relying on such
      representations and warranties in accepting this subscription:

	 	 	 
		(a) 	
      the Corporation has been incorporated and is validly
      subsisting and is in good standing under the laws of its jurisdiction of
      incorporation;

	 	 	 
		(b) 	
      the Corporation has full power and authority to execute,
      deliver and perform each of its obligations under this Subscription
      Agreement, including the issue of the Common Shares and
Warrants;

	 	 	 
		(c) 	
      this Subscription Agreement, when accepted by the
      Corporation, and will constitute a valid and binding obligation of the
      Corporation, enforceable in accordance with its terms;

	 	 	 
		(d) 	
      the Corporation will promptly comply with all filing and
      other requirements under all applicable securities laws and the issuance
      and sale of the Common Shares and Warrants shall be carried out in
      compliance with all applicable securities legislation relating to the
      issue and sale of the Common Shares and Warrants; and

	 	 	 
		(e) 	
      the Corporation will have taken all necessary steps to
      duly and validly create the Common Shares and Warrants for issuance before
      their issuance.

Acknowledgments and Covenants of the Subscriber

	5. 	
      The Subscriber acknowledges and covenants that:

	 	 	 
		(a) 	
      the Common Shares, Warrants and Warrant Shares are
      subject to transfer and resale restrictions pursuant to the constating
      documents of the Corporation, the Securities Act (Ontario) and the
      regulation, rules, orders, instruments and published policy statements
      applicable thereunder, including National Instrument 45-102 Resale of
      Securities and the restrictions set out in section 11
hereof;

	 	 	 
		(b) 	
      the Subscriber shall not knowingly transfer his, her or
      its Common Shares, Warrants or Warrant Shares in whole or in part to a
      person who is not able to make the representations, warranties and
      covenants contained in this Subscription Agreement or otherwise requested
      by the Corporation;

	 	 	 
		(c) 	
      the certificates representing the Common Shares, Warrants
      and Warrant Shares, will bear, as of the date of issuance, a legend
      substantially in the following form and with the necessary information
      inserted:

	 	 	 
			
      “UNLESS PERMITTED BY SECURITIES LEGISLATION, THE
      HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [INSERT DATE OF
      ISSUANCE]”

	 	 	 
		(d) 	
      The Common Shares, Warrants and Warrant Shares may be
      subject to British Columbia Instrument 51-509 - Issuers Quoted in the
      U.S. Over-the-Counter Markets (“BC Instrument 51- 509”) if the
      securities are to be sold in or from British Columbia and in addition, may
      therefore need to be endorsed with the following legend contemplated by BC
      Instrument 51-509:

	 	 	 
		(e) 	
      “Unless otherwise permitted under securities legislation,
      the holder of this security must not trade the security in or from British
      Columbia unless the conditions in section 12 (2) of BC Instrument 51-509
      Issuers Quoted in the U.S. Over-the-Counter Market are
  met”;

	 	(f) 	
      the Units subscribed for by the Subscriber do not form
      part of an offering of a larger number of Units;

	 	 	 
	 	(g) 	
      the Subscriber is responsible for obtaining such legal
      advice as the Subscriber considers appropriate in connection with the
      execution, delivery and performance of this Subscription Agreement and any
      subsequent transfer or resale of the Common Shares, Warrants or Warrant
      Shares;

	 	 	 
	 	(h) 	
      the Subscriber has such knowledge and experience in
      financial and business affairs as to be capable of evaluating the merits
      and risks of the investment in the Corporation and is able to bear the
      economic risk of loss of such investment. The Subscriber acknowledges and
      agrees that it is responsible for obtaining such legal, investment,
      accounting and tax advice as the Subscriber considers appropriate in
      connection with the execution, delivery and performance by it of this
      Subscription Agreement and the transactions contemplated
  hereunder;

	 	 	 
	 	(i) 	
      the Subscriber understands that (i) there is no right to
      demand any distribution from the Corporation, (ii) it is not anticipated
      that there will be any public market for the Common Shares, Warrants or
      Warrant Shares and (iii) it may not be possible to sell or dispose of the
      Common Shares, Warrants or Warrant Shares; and

	 	 	 
	 	(j) 	
      the Subscriber agrees to comply with all applicable laws
      of its jurisdiction of incorporation/residence in connection with this
      Subscription Agreement and the issuance of the Common Shares, Warrants and
      Warrant Shares hereunder.

Restrictions under the U.S. Securities Act

	6. 	
      The Subscriber acknowledges and agrees that the Common
      Shares, Warrants and Warrant Shares will not be offered and sold to the
      Subscriber without such offer and sale being registered under the U.S.
      Securities Act and will be issued to the Subscriber in an offshore
      transaction outside of the United States in accordance with a safe harbour
      from the registration requirements of the U.S. Securities Act provided by
      Rule 903 of Regulation S of the U.S. Securities Act based on the
      representations and warranties of the Subscriber in this Agreement. As
      such, the Subscriber acknowledges that Common Shares, Warrants and Warrant
      Shares may not be offered, resold, pledged or otherwise transferred except
      through an exemption from registration under the U.S. Securities Act or
      pursuant to an effective registration statement under the U.S. Securities
      Act and in accordance with all applicable state securities laws and the
      laws of any other jurisdiction. Further, the Subscriber acknowledges that
      the Warrants cannot be exercised unless pursuant to the provisions of
      Regulation S of the U.S. Securities Act, pursuant to an exemption from
      registration under the U.S. Securities Act or pursuant to an effective
      registration statement under the U.S. Securities Act, and in each case in
      accordance with all applicable state securities laws and the laws of any
      other jurisdiction. The Subscriber agrees to resell the Common Shares,
      Warrants and Warrant Shares only in accordance with the provisions of
      Regulation S of the U.S. Securities Act, pursuant to registration under
      the U.S. Securities Act, or pursuant to an available exemption from
      registration pursuant to the U.S. Securities Act. The Subscriber agrees
      that the Corporation may refuse to register any transfer of the Common
      Shares, Warrants and Warrant Shares not made in accordance with the
      provisions of Regulation S of the U.S. Securities Act, pursuant to
      registration under the U.S. Securities Act, pursuant to an available
      exemption from registration. The Subscriber agrees that Corporation may
      require the opinion of legal counsel reasonably acceptable to the
      purchaser in the event of any offer, sale, pledge or transfer of any of
      the Common Shares, Warrants and Warrant Shares by Subscriber pursuant to
      an exemption from registration under the U.S. Securities Act. The
      Subscriber acknowledges that the purchaser has no obligation to register
      the resale of any of the Common Shares, Warrants and Warrant Shares by the
      Subscriber pursuant to the U.S. Securities Act. The Subscriber
      acknowledges and agrees that the Corporation was a “shell company” as
      defined under the U.S. Securities Act until August 31, 2009 and, as a
      consequence, the Subscriber will not be entitled to resell any of Common
      Shares, Warrants and Warrant Shares issued to them in the United States
      within the period of one year following the date that the Corporation
      files a “Form 10 Information”, as defined in Rule 144 under the U.S.
      Securities Act, with the United States Securities and Exchange
      Commission.

The certificates representing the
Shares and the Warrant Shares will be endorsed with the following legend in
order to ensure compliance with the U.S. Securities Act: 

“THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “U.S. SECURITIES ACT”) AND MAY NOT BE OFFERED OR
SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
PERSONS UNTIL 41 DAYS AFTER [DATE OF ISSUANCE] AND THEN ONLY IN
COMPLIANCE WITH RULE 144 OF THE U.S. SECURITIES ACT OR ANOTHER AVAILABLE
EXEMPTION FROM REGISTRATION, EXCEPT IN EITHER CASE IN ACCORDANCE WITH REGULATION
S UNDER THE U.S. SECURITIES ACT. A CERTIFICATE WITHOUT A LEGEND MAY BE OBTAINED
FROM THE REGISTRAR AND TRANSFER AGENT OF THE CORPORATION IN CONNECTION WITH A
SALE OF THE SECURITIES REPRESENTED HEREBY AT A TIME WHEN THE CORPORATION IS A
“FOREIGN ISSUER” AS DEFINED IN REGULATION SUNDER THE U.S. SECURITIES ACT. UPON
DELIVERY OF THIS CERTIFICATE, AN EXECUTED DECLARATION AND, IF REQUESTED BY THE
CORPORATION OR THE TRANSFER AGENT, AN OPINION OF COUNSEL OF RECOGNIZED STANDING,
EACH IN FORM SATISFACTORY TO THE TRANSFER AGENT OF THE CORPORATION AND THE
CORPORATION, TO THE EFFECT THAT SUCH SALE OF THE SECURITIES REPRESENTED HEREBY
IS BEING MADE IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S.
SECURITIES ACT.” 

provided that if any such common shares
are being sold under Rule 904 of Regulation S and in compliance with Canadian
local laws and regulations, and provided that the Company is a “foreign issuer”
within the meaning of Regulation S of the U.S. Securities Act at the time of
sale, the legend may be removed by providing a declaration to Computershare
Investor Services Inc., as registrar and transfer agent, in the form attached as
Schedule C to this Agreement, as may be amended from time to time by the
Company, to the effect that the Common Shares are being sold outside of the
United States in compliance with Rule 904 of Regulation S of the U.S. Securities
Act. 

The certificates representing the
Warrants will be endorsed with the following legends in order to ensure
compliance with the U.S. Securities Act: 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “U.S. SECURITIES ACT”) OR ANY STATE SECURITIES LAWS, AND MAY BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION (B)
OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE
U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) IN
COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY
APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND
REGULATIONS GOVERNING THE OFFER AND SALE OF SECURITIES AND IT HAS, IN THE CASE
OF EACH OF (C) AND (D), PRIOR TO SUCH TRANSFER FURNISHED TO THE CORPORATION AN
OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO
THE CORPORATION. 

THIS WARRANT AND THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OR THE SECURITIES LAWS OF ANY STATE. THIS WARRANT MAY NOT BE
EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A PERSON IN THE UNITED
STATES OR A U.S. PERSON UNLESS THE WARRANT AND THE UNDERLYING SECURITIES HAVE
BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES
LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION
REQUIREMENTS IS AVAILABLE. THE TERMS "UNITED STATES" AND "U.S. PERSON" HAVE THE
MEANINGS GIVEN THEM UNDER REGULATION S PROMULGATED PURSUANT TO THE U.S.
SECURITIES ACT. 

Commissions

	7. 	
      The subscriber acknowledges that a 7% cash commission is
      payable by the Corporation in connection with the issuance of the
      securities subscribed for under this Subscription
  Agreement.

Collection of Personal Information 

	8. 	 The Subscriber acknowledges and consents to the fact
        that the Corporation is collecting the Subscriber’s personal information
        for the purpose of fulfilling this Subscription Agreement and completing
        the Offering. The Subscriber’s personal information (and, if applicable,
        the personal information of those on whose behalf the Subscriber is contracting
        hereunder) may be disclosed by the Corporation to (a) stock exchanges
        or securities regulatory authorities (including the Ontario Securities
        Commission as referred to below), (b) the Corporation’s registrar
        and transfer agent, (c) Canadian tax authorities, (d) authorities pursuant
        to the Proceeds of Crime (Money Laundering) and Terrorist Financing
        Act (Canada) and (e) any of the other parties involved in the Offering,
        including legal counsel, and may be included in record books in connection
        with the Offering. By executing this Subscription Agreement, the Subscriber
        is deemed to be consenting to the foregoing collection, use and disclosure
        of the Subscriber’s personal information (and, if applicable, the
        personal information of those on whose behalf the Subscriber is contracting
        hereunder) and to the retention of such personal information for as long
        as permitted or required by law or business practice. Notwithstanding
        that the Subscriber may be purchasing Units as agent on behalf of an undisclosed
        principal, the Subscriber agrees to provide, on request, particulars as
        to the identity of such undisclosed principal as may be required by the
        Corporation in order to comply with the foregoing.

Furthermore, the Subscriber is hereby notified that: 

	 	(a) 	
      the Corporation may deliver to the Ontario Securities
      Commission certain personal information pertaining to the Subscriber,
      including such Subscriber’s full name, residential address and telephone
      number, the number of Units purchased by the Subscriber and the total
      purchase price paid for such Units, the prospectus exemption relied on by
      the Corporation and the date of distribution of the Units,

	 	 	 
	 	(b) 	
      such information is being collected indirectly by the
      Ontario Securities Commission under the authority granted to it in
      securities legislation,

	 	 	 
	 	(c) 	
      such information is being collected for the purposes of
      the administration and enforcement of the securities legislation of
      Ontario, and

	 	 	 
	 	(d) 	
      the Subscriber may contact the following public official
      in Ontario with respect to questions about the Ontario Securities
      Commission’s indirect collection of such information at the following
      address and telephone number:

	 	 	 
	 		
      Administrative Assistant to the Director of Corporate
      Finance Ontario Securities Commission Suite 1903, Box 55, 20 Queen Street
      West Toronto, Ontario, M5H 3S8 Telephone: (416)
593-8086

Indemnity

	9. 	
      The Subscriber agrees to indemnify the Corporation
      against all losses, claims, costs, expenses and damages or liabilities
      which they may suffer or incur or cause arising from the reliance on the
      representations, certifications, warranties, covenants and
      acknowledgements of the Subscriber to the Corporation, as the case may
      be.

Confidentiality

	10. 	
      The Subscriber hereby agrees to keep confidential all
      information which may be provided to the Subscriber relating to the
      business and affairs of the Corporation upon becoming a shareholder of the
      Corporation, and not to distribute or otherwise make available any such
      information to any other person or otherwise exploit any such
      information.

General Provisions

	11. 	
      The Subscriber shall execute and deliver such additional
      instruments, certificates and other documents as may be required or
      requested by the Corporation, acting reasonably, to permit the purchase of
      the Units or otherwise to carry out the provisions and intent of this
      Subscription Agreement.

	 	 
	12. 	
      The Subscriber hereby authorizes the Corporation to
      correct any minor errors in, or complete any information missing from any
      part of this Subscription Agreement.

	 	 
	13. 	
      No rights or obligations of the Subscriber hereunder may
      be assigned without the prior written consent of the
Corporation.

	 	 
	14. 	
      This Subscription Agreement shall be governed by and
      construed in accordance with the laws of the Province of Ontario and the
      federal laws of Canada applicable therein. The Subscriber irrevocably
      attorns to the non-exclusive jurisdiction of the courts of Ontario with
      respect to any matters arising out of this Subscription
  Agreement.

	 	 
	15. 	
      The Corporation shall be entitled to rely on delivery by
      facsimile or email of an executed copy of this Subscription Agreement and
      acceptance by the Corporation of that delivery shall be legally effective
      to create a valid and binding agreement between the Subscriber and the
      Corporation in accordance with the terms of this Subscription
      Agreement.

	 	 
	16. 	
      This Subscription Agreement shall be read with such
      changes in number and gender as the context or the reference to parties
      may require.

	 	 
	17. 	
      Time shall be of the essence in this Subscription
      Agreement and every part hereof and no extension or variation of this
      Subscription Agreement shall operate as a waiver of this
  provision.

	 	 
	18. 	
      This Subscription Agreement constitutes the only
      agreement between the Corporation and the Subscriber with respect to the
      subject matter hereof and shall supercede any and all prior negotiations
      and understandings and there are no representations, warranties, covenants
      or other agreements relating to the subject matter hereof except as stated
      or referred to herein or therein.

	 	 
	19. 	
      This Subscription Agreement shall enure to the benefit of
      and be binding upon the parties hereto and their respective heirs,
      executors, administrators, legal personal representatives, successors and
      permitted assigns.

	 	 
	20. 	
      The terms of this Subscription Agreement may only be
      amended in writing.

	 	 
	21. 	
      The parties hereto confirm their express wish that this
      Subscription Agreement and all documents and agreements directly or
      indirectly relating thereto be drawn up in the English language. Les
      parties reconnaissent leur volonté expresse que la présente ainsi que tous
      les documents et contrats s’y rattachant directement ou indirectement
      soient rédigés en anglais.

	SCHEDULE “A” 
	 
	 

REPRESENTATION LETTER 

TO BE COMPLETED BY CANADIAN SUBSCRIBERS 

TO:          
AMG Oil Ltd. (the “Corporation”) 

In connection with the purchase of Units of the Corporation by
the undersigned subscriber (the “Subscriber”, for the purposes of this
Schedule “A”) on or about ______________________, 2009, the Subscriber hereby
represents, warrants, covenants and certifies (by completing and signing this
certificate) on behalf of itself and, if applicable, the person on whose behalf
the Subscriber is contracting, to the Corporation and its counsel (which
representations, warranties and certifications shall survive the closing of the
purchase of the Units for a period of two years, notwithstanding the completion
of the purchase of the Units), acknowledging that the Corporation and its
counsel are relying thereon, that: 

	 	(a) 	 it is (the clause checked below
        applies): 

	 	  	  
	  

	 	  	 (i) 
	 [ ]      
         purchasing the securities as principal; or 

	 	  	  
	  

			 (ii) 
	 [ ]       
        deemed to be purchasing as principal under applicable securities laws,
        in accordance with the following statutory provisions: 

	 	  	  
	  

	 	(b) 	  
	  

	 	  	  
	  

	 	(c) 	 an “accredited investor”
        within the meaning of NI 45-106 on the basis that the undersigned fits
        within the category of an “accredited investor” reproduced in
        the Exhibit to this Representation Letter beside which the undersigned
        has marked his initials; and 

	 	  	  
	  

	 	(d) 	 upon execution of this Schedule
        “A” by the Subscriber, this Schedule “A” shall be
        incorporated into and form a part of the Subscription Agreement and all
        capitalized terms not otherwise defined herein shall have the meaning
        ascribed thereto in the Subscription Agreement.

Name of Subscriber (please print) 

By:    
_____________________________________________

          Authorized
Signature 

__________________________________________________
Official
Title or Capacity (please print) 

__________________________________________________ 

Name of Signatory (please print name
of individual whose signature appears above different than name of
Subscriber)

DATED at _________________________ this _______ day of
______________, 2009. 

	IMPORTANT 

PLEASE COMPLETE THE
      EXHIBIT TO THIS REPRESENTATION LETTER BY MARKING 
YOUR INITIALS
      BESIDE THE CATEGORY TO WHICH YOU BELONG 

EXHIBIT TO SCHEDULE “A” 

TO BE COMPLETED BY CANADIAN SUBSCRIBERS 

	PLEASE MARK YOUR INITIALS BESIDE THE
      CATEGORY TO WHICH YOU BELONG 

Please complete the Representation Letter to the Corporation by
marking your initials beside the category of “accredited investor” to which you
belong: 

	[ ] 1. 	Canadian financial institution,
      or a Schedule III bank. 
	 	  
	[ ] 2. 	
      The Business Development Bank of Canada incorporated
      under the Business Development Bank of Canada Act (Canada).
      

	 	
       

	[ ] 3. 	
      A subsidiary of any person referred to in paragraphs (1)
      or (2), if the person owns all of the voting securities of the subsidiary,
      except the voting securities required by law to be owned by directors of
      that subsidiary. 

	 	
       

	[ ] 4. 	
      A person registered under the securities legislation of a
      jurisdiction of Canada as an adviser or dealer, other than a person
      registered solely as a limited market dealer under one or both of the
      Securities Act (Ontario) or the Securities Act (Newfoundland
      and Labrador). 

	 	
       

	[ ] 5. 	
      An individual registered or formerly registered under the
      securities legislation of a jurisdiction of Canada as a representative of
      a person referred to in paragraph (4). 

	 	
       

	[ ] 6. 	
      Government of Canada or a jurisdiction of Canada, or any
      crown corporation, agency or wholly owned entity of the Government of
      Canada or a jurisdiction of Canada. 

	 	
       

	[ ] 7. 	
      Municipality, public board or commission in Canada and a
      metropolitan community, school board, the Comité de gestion de la taxe
      scolaire de l’île de Montréal or an intermunicipal management board in
      Québec. 

	 	
       

	[ ] 8. 	
      Any national, federal, state, provincial, territorial or
      municipal government of or in any foreign jurisdiction, or any agency of
      that government. 

	 	
       

	[ ] 9. 	
      A pension fund that is regulated by either the Office of
      the Superintendent of Financial Institutions (Canada) or a pension
      commission or similar regulatory authority of a jurisdiction of Canada.
      

	 	
       

	[ ] 10. 	
      An individual who, either alone or with a spouse,
      beneficially owns, directly or indirectly, financial assets having an
      aggregate realizable value that before taxes, but net of any related
      liabilities, exceeds $1,000,000. 

	 	
       

	[ ] 11. 	
      An individual whose net income before taxes exceeded
      $200,000 in each of the 2 most recent calendar years or whose net income
      before taxes combined with that of a spouse exceeded $300,000 in each of
      the 2 most recent calendar years and who, in either case, reasonably
      expects to exceed that net income level in the current calendar year.
    

	 	
       

	[ ] 12. 	
      An individual who, either alone or with a spouse, has net
      assets of at least $5,000,000. 

	 	
       

	[ ] 13. 	
      A person, other than an individual or investment fund,
      that has net assets of at least $5,000,000 as shown on its most recently
      prepared financial statements. 

	 	
       

	[ ] 14. 	
      An investment fund that distributes or has distributed
      its securities only to (i) a person that is or was an accredited investor
      at the time of the distribution, (ii) a person that acquires or acquired
      securities in the circumstances referred to in sections 2.10 [Minimum
      amount investment] of National Instrument 45-106, and 2.19
      [Additional investment in investment funds] of National Instrument
      45-106, or (iii) a person 

		
      described in (i) or (ii) that acquires or acquired
      securities under section 2.18 [Investment fund reinvestment] of
      National Instrument 45-106. 

	  	
       

	[ ] 15. 	
      An investment fund that distributes or has distributed
      securities under a prospectus in a jurisdiction of Canada for which the
      regulator or, in Québec, the securities regulatory authority, has issued a
      receipt. 

	  	
       

	[ ] 16. 	
      A trust company or trust corporation registered or
      authorized to carry on business under the Trust and Loan
      Companies Act (Canada) or under comparable legislation in a
      jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a
      fully managed account managed by the trust company or trust corporation,
      as the case may be. 

	  	
       

	[ ] 17. 	
      A person acting on behalf of a fully managed account
      managed by that person, if that person (i) is registered or authorized to
      carry on business as an adviser or the equivalent under the securities
      legislation of a jurisdiction of Canada or a foreign jurisdiction, and
      (ii) in Ontario, is purchasing a security that is not a security of an
      investment fund. 

	  	
       

	[ ] 18. 	
      A registered charity under the Income Tax Act
      (Canada) that, in regard to the trade, has obtained advice from an
      eligibility adviser or an adviser registered under the securities
      legislation of the jurisdiction of the registered charity to give advice
      on the securities being traded. 

	  	
       

	[ ] 19. 	
      An entity organized in a foreign jurisdiction that is
      analogous to any of the entities referred to in paragraphs (1) to (4) or
      paragraph (9) in form and function. 

	  	
       

	[ ] 20. 	
      A person in respect of which all of the owners of
      interests, direct, indirect or beneficial, except the voting securities
      required by law to be owned by directors, are persons that are accredited
      investors. 

	  	
       

	[ ] 21. 	
      An investment fund that is advised by a person registered
      as an adviser or a person that is exempt from registration as an adviser.
      

	  	
       

	[ ] 22. 	
      A person that is recognized or designated by the
      securities regulatory authority or, except in Ontario and Québec, the
      regulator as (i) an accredited investor, or (ii) an exempt purchaser in
      Alberta or British Columbia. 

Interpretative Aids 

The following definitions relate to certain of the categories
of NI 45-106 - Accredited Investor set forth above: 

	 	(e) 	
      “bank” means a bank named in Schedule I or II of the
      Bank Act (Canada);

	 	 	 	 	 
	 	(f) 	
      “Canadian financial institution” means

	 	 	 	 	 
	 		(i) 	
      an association governed by the Cooperative Credit
      Associations Act (Canada) or a central cooperative credit society for
      which an order has been made under section 473(1) of that Act,
or

	 	 	 	 	 
	 		(ii) 	
      a bank, loan corporation, trust company, trust
      corporation, insurance company, treasury branch, credit union, caisse
      populaire, financial services cooperative, or league that, in each case,
      is authorized by an enactment of Canada or a jurisdiction of Canada to
      carry on business in Canada or a jurisdiction of Canada;

	 	 	 	 	 
	 	(g) 	
      “control person” has the same meaning as in securities
      legislation except in Manitoba, Newfoundland and Labrador, Northwest
      Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island and
      Quebéc where control person means any person that holds or is one of a
      combination of persons that holds

	 	 	 	 	 
	 		(i) 	
      a sufficient number of any of the securities of an issuer
      so as to affect materially the control of the issuer, or

	 	 	 	 	 
	 		(ii) 	
      more than 20% of the outstanding voting securities of an
      issuer except where there is evidence showing that the holding of those
      securities does not affect materially the control of the issuer;

	 	 	 	 	 
	 	(h) 	
      “director” means:

	 	 	 	 	 
	 		(i) 	
      a member of the board of directors of a company or an
      individual who performs similar functions for a company, and

	 	 	 	 	 
	 		(ii) 	
      with respect to a person that is not a company, an
      individual who performs functions similar to those of a director of a
      company;

	 	 	 	 	 
	 	(i) 	
      “eligibility adviser” means

	 	 	 	 	 
	 		(i) 	
      a person that is registered as an investment dealer or in
      an equivalent category of registration under the securities legislation of
      the jurisdiction of a purchaser and authorized to give advice with respect
      to the type of security being distributed, and

	 	 	 	 	 
	 		(ii) 	
      in Saskatchewan and Manitoba, also means a lawyer who is
      a practicing member in good standing with a law society of a jurisdiction
      of Canada or a public accountant who is a member in good standing of an
      institute or association of chartered accountants, certified general
      accountants or certified management accountants in a jurisdiction of
      Canada provided that the lawyer or public accountant must not

	 	 	 	 	 
	 			A. 	
      have a professional, business or personal relationship
      with the issuer, or any of its directors, executive officer, founders, or
      control persons, and

	 	 	 	 	 
	 			B. 	
      have acted for or been retained personally or otherwise
      as an employee, executive officer, director, associate or partner of a
      person that has acted for or

been retained by the issuer or any of
its directors, executive officers, founders or control persons within the
previous 12 months; 

	 	(j) 	
      “executive officer” means, for an issuer, an individual
      who is

	 	 	 	 
	 		(i) 	
      a chair, vice-chair or president,

	 	 	 	 
	 		(ii) 	
      a vice-president in charge of a principal business unit,
      division or function including sales, finance or production,

	 	 	 	 
	 		(iii) 	
      an officer of the issuer or any of its subsidiaries and
      who performs a policy-making function in respect of the issuer,
  or

	 	 	 	 
	 		(iv) 	
      performing a policy-making function in respect of the
      issuer;

	 	 	 	 
	 	(k) 	
      “financial assets” means cash, securities, or a contract
      of insurance, a deposit or an evidence of a deposit that is not a security
      for the purposes of securities legislation.;

	 	 	 	 
	 	(l) 	
      “founder” means, in respect of an issuer, a person
      who,

	 	 	 	 
	 		(i) 	
      acting alone, in conjunction, or in concert with one or
      more persons, directly or indirectly, takes the initiative in founding,
      organizing or substantially reorganizing the business of the issuer,
      and

	 	 	 	 
	 		(ii) 	
      at the time of the trade is actively involved in the
      business of the issuer;

	 	 	 	 
	 	(m) 	
      “foreign jurisdiction” means a country other than Canada
      or a political subdivision of a country other than Canada;

	 	 	 	 
	 	(n) 	
      “fully managed account” means an account of a client for
      which a person makes the investment decisions if that person has full
      discretion to trade in securities for the account without requiring the
      client’s express consent to a transaction;

	 	 	 	 
	 	(o) 	
      “investment fund” has the same meaning as in National
      Instrument 81-106 Investment Fund Continuous Disclosure;

	 	 	 	 
	 	(p) 	
      “jurisdiction” means a province or territory of Canada
      except when used in the term foreign jurisdiction;

	 	 	 	 
	 	(q) 	
      “non-redeemable investment fund” means an
  issuer,

	 	 	 	 
	 		(i) 	
      where contributions of securityholders are pooled for
      investment,

	 	 	 	 
	 		(ii) 	
      where securityholders do not have day-to-day control over
      the management and investment decisions of the issuer, whether or not they
      have the right to be consulted or to give directions, and

	 	 	 	 
	 		(iii) 	
      whose securities do not entitle the securityholder to
      receive on demand, or within a specified period after demand, an amount
      computed by reference to the value of a proportionate interest in the
      whole or in part of the net assets of the issuer;

	 	 	 	 
	 	(r) 	
      “person” includes

	 	 	 	 
	 		(i) 	
      an individual,

	 	 	 	 
	 		(ii) 	
      a corporation,

	 	(iii) 	
      a partnership, trust, fund and an association, syndicate,
      organization or other organized group of persons, whether incorporated or
      not, and

	 	 	 
	 	(iv) 	
      an individual or other person in that person’s capacity
      as a trustee, executor, administrator or personal or other legal
      representative;

	 	(s) 	
      “regulator” means, for the local jurisdiction, the
      Executive Director as defined under securities legislation of the local
      jurisdiction;

	 	 	 	 
	 	(t) 	
      “related liabilities” means

	 	 	 	 
	 		(i) 	
      Liabilities incurred or assumed for the purpose of
      financing the acquisition or ownership of financial assets, or

	 	 	 	 
	 		(ii) 	
      Liabilities that are secured by financial
  assets;

	 	 	 	 
	 	(u) 	
      “Schedule III bank” means an authorized foreign bank
      named in Schedule III of the Bank Act (Canada);

	 	 	 	 
	 	(v) 	
      “spouse” means, an individual who,

	 	 	 	 
	 		(i) 	
      is married to another individual and is not living
      separate and apart within the meaning of the Divorce Act (Canada), from
      the other individual,

	 	 	 	 
	 		(ii) 	
      is living with another individual in a marriage-like
      relationship, including a marriage-like relationship between individuals
      of the same gender, or

	 	 	 	 
	 		(iii) 	
      in Alberta, is an individual referred to in paragraph (i)
      or (ii) above, or is an adult interdependent partner within the meaning of
      the Adult Interdependent Relationships Act (Alberta);

	 	 	 	 
	 	(w) 	
      “subsidiary” means an issuer that is controlled directly
      or indirectly by another issuer and includes a subsidiary of that
      subsidiary;

	 	 	 	 
	 	(x) 	
      An issuer is an affiliate of another issuer if:

	 	 	 	 
	 		(i) 	
      one of them is the subsidiary of the other, or

	 	 	 	 
	 		(ii) 	
      each of them is controlled by the same person,
  and

	 	 	 	 
	 	(y) 	
      A person (first person) is considered to control another
      person (second person) if:

	 	 	 	 
	 		(i) 	
      the first person, directly or indirectly, beneficially
      owns or exercises control or direction over securities of the second
      person carrying votes which, if exercised, would entitle the first person
      to elect a majority of the directors of the second person, unless that
      first person holds the voting securities only to secure an
    obligation,

	 	 	 	 
	 		(ii) 	
      the second person is a partnership, other than a limited
      partnership, and the first person holds more than 50% of the interest of
      the partnership, or

	 	 	 	 
	 		(iii) 	
      the second person is a limited partnership and the
      general partner of the limited partnership is the first
  person.

All monetary references are in Canadian dollars. 

	SCHEDULE “B” 
	 
	 

REPRESENTATION LETTER 

TO BE COMPLETED BY INTERNATIONAL SUBSCRIBERS 

TO:             
AMG Oil Ltd. (the “Corporation”) 

In connection with the purchase of Units of the Corporation by
the undersigned subscriber (the “Subscriber”, for the purposes of this
Schedule “B”) on or about ______________________, 2009, the Subscriber hereby
represents, warrants, covenants and certifies (by completing and signing this
certificate) on behalf of itself and, if applicable, the person on whose behalf
the Subscriber is contracting to the Corporation and its counsel (which
representations, warranties and certifications shall survive the closing of the
purchase of the Units for a period of two years, notwithstanding the completion
of the purchase of the Units) and acknowledges that the Corporation and its
counsel are relying thereon that: 

	 	(a) 	
      it is (the clause checked below applies):

	 	 	 	 
	 		(i) 	
      [ ]        purchasing
      the securities as principal; or

	 	 	 	 
	 		(ii) 	
      [ ]        deemed to
      be purchasing as principal under applicable securities laws, in accordance
      with the following statutory provisions:

	 	 	 	 
	 	(b) 	
      it is located outside of Canada and the United
    States;

	 	 	 	 
	 	(c) 	
      all acts of solicitation, conduct or negotiations
      directly or indirectly in furtherance of the purchase of the securities
      occurred outside of Canada and the United States;

	 	 	 	 
	 	(d) 	
      the securities laws of the jurisdiction in which it is
      resident as set out on the cover page of the Subscription Agreement,
      govern its subscription, and the issuance of the Common Shares, Warrants
      and Warrant Shares to it may be effected by the Corporation without the
      necessity of filing any document with or obtaining any approval from or
      effecting any registration with any governmental entity or similar
      regulatory authority having jurisdiction over the Subscriber and the
      Subscriber complies with the requirements of all applicable laws in the
      jurisdiction of its residence, and will provide such evidence of
      compliance with all such matters as the Corporation may request;

	 	 	 	 
	 	(e) 	
      it is an “accredited investor” within the meaning of NI
      45-106 on the basis that the undersigned fits within the category of an
      “accredited investor” reproduced in the Exhibit to this Representation
      Letter beside which the undersigned has marked his initials;
  and

	 	(f) 	
      upon execution of this Schedule “B” by the Subscriber,
      this Schedule “B” shall be incorporated into and form a part of the
      Subscription Agreement and all capitalized terms not otherwise defined
      herein shall have the meaning ascribed thereto in the Subscription
      Agreement.

Name of Subscriber (please print) 

By:    
_____________________________________________

          
Authorized Signature 

__________________________________________________

Official Title or Capacity (please
print) 

__________________________________________________ 

Name of Signatory (please print name
of individual whose signature appears above different than name of
Subscriber)

DATED at _________________________ this _______ day of
______________, 2009. 

	IMPORTANT 

PLEASE COMPLETE THE
      EXHIBIT TO THIS REPRESENTATION LETTER BY MARKING 
YOUR INITIALS
      BESIDE THE CATEGORY TO WHICH YOU BELONG 

EXHIBIT TO SCHEDULE “B” 

TO BE COMPLETED BY INTERNATIONAL SUBSCRIBERS 

	PLEASE MARK YOUR INITIALS BESIDE THE
      CATEGORY TO WHICH YOU BELONG 

Please complete the Representation Letter to the Corporation by
marking your initials beside the category of “accredited investor” to which you
belong: 

	[ ] 1. 	Canadian financial institution,
        or a Schedule III bank. 

	 	  
	[ ] 2. 	The Business Development
        Bank of Canada incorporated under the Business Development Bank of
        Canada Act (Canada). 

	 	  
	[ ] 3. 	A subsidiary of any person
        referred to in paragraphs (1) or (2), if the person owns all of the voting
        securities of the subsidiary, except the voting securities required by
        law to be owned by directors of that subsidiary. 

	 	  
	[ ] 4. 	A person registered under
        the securities legislation of a jurisdiction of Canada as an adviser or
        dealer, other than a person registered solely as a limited market dealer
        under one or both of the Securities Act (Ontario) or the Securities
        Act (Newfoundland and Labrador). 

	 	  
	[ ] 5. 	An individual registered
        or formerly registered under the securities legislation of a jurisdiction
        of Canada as a representative of a person referred to in paragraph (4).
      

	 	  
	[ ] 6. 	Government of Canada or
        a jurisdiction of Canada, or any crown corporation, agency or wholly owned
        entity of the Government of Canada or a jurisdiction of Canada. 

	 	  
	[ ] 7. 	Municipality, public board
        or commission in Canada and a metropolitan community, school board, the
        Comité de gestion de la taxe scolaire de l’île de Montréal
        or an intermunicipal management board in Québec. 

	 	  
	[ ] 8. 	Any national, federal,
        state, provincial, territorial or municipal government of or in any foreign
        jurisdiction, or any agency of that government. 

	 	  
	[ ] 9. 	A pension fund that is
        regulated by either the Office of the Superintendent of Financial Institutions
        (Canada) or a pension commission or similar regulatory authority of a
        jurisdiction of Canada. 

	 	  
	[ ] 10. 	An individual who, either
        alone or with a spouse, beneficially owns, directly or indirectly, financial
        assets having an aggregate realizable value that before taxes, but net
        of any related liabilities, exceeds $1,000,000. 

	 	  
	[ ] 11. 	An individual whose net
        income before taxes exceeded $200,000 in each of the 2 most recent calendar
        years or whose net income before taxes combined with that of a spouse
        exceeded $300,000 in each of the 2 most recent calendar years and who,
        in either case, reasonably expects to exceed that net income level in
        the current calendar year. 

	 	  
	[ ] 12. 	An individual who, either
        alone or with a spouse, has net assets of at least $5,000,000. 

	 	  
	[ ] 13. 	A person, other than an
        individual or investment fund, that has net assets of at least $5,000,000
        as shown on its most recently prepared financial statements. 

	 	  
	[ ] 14. 	An investment fund that
        distributes or has distributed its securities only to (i) a person that
        is or was an accredited investor at the time of the distribution, (ii)
        a person that acquires or acquired securities in the circumstances referred
        to in sections 2.10 [Minimum amount investment] of National Instrument
        45-106, and 2.19 [Additional investment in investment funds] of
        National Instrument 45-106, or (iii) a person 

		
      described in (i) or (ii) that acquires or acquired
      securities under section 2.18 [Investment fund reinvestment] of
      National Instrument 45-106. 

	  	
       

	[ ] 15. 	
      An investment fund that distributes or has distributed
      securities under a prospectus in a jurisdiction of Canada for which the
      regulator or, in Québec, the securities regulatory authority, has issued a
      receipt. 

	  	
       

	[ ] 16. 	
      A trust company or trust corporation registered or
      authorized to carry on business under the Trust and Loan
      Companies Act (Canada) or under comparable legislation in a
      jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a
      fully managed account managed by the trust company or trust corporation,
      as the case may be. 

	  	
       

	[ ] 17. 	
      A person acting on behalf of a fully managed account
      managed by that person, if that person (i) is registered or authorized to
      carry on business as an adviser or the equivalent under the securities
      legislation of a jurisdiction of Canada or a foreign jurisdiction, and
      (ii) in Ontario, is purchasing a security that is not a security of an
      investment fund. 

	  	
       

	[ ] 18. 	
      A registered charity under the Income Tax Act
      (Canada) that, in regard to the trade, has obtained advice from an
      eligibility adviser or an adviser registered under the securities
      legislation of the jurisdiction of the registered charity to give advice
      on the securities being traded. 

	  	
       

	[ ] 19. 	
      An entity organized in a foreign jurisdiction that is
      analogous to any of the entities referred to in paragraphs (1) to (4) or
      paragraph (9) in form and function. 

	  	
       

	[ ] 20. 	
      A person in respect of which all of the owners of
      interests, direct, indirect or beneficial, except the voting securities
      required by law to be owned by directors, are persons that are accredited
      investors. 

	  	
       

	[ ] 21. 	
      An investment fund that is advised by a person registered
      as an adviser or a person that is exempt from registration as an adviser.
      

	  	
       

	[ ] 22. 	
      A person that is recognized or designated by the
      securities regulatory authority or, except in Ontario and Québec, the
      regulator as (i) an accredited investor, or (ii) an exempt purchaser in
      Alberta or British Columbia. 

Interpretative Aids 

The following definitions relate to certain of the categories
of NI 45-106 - Accredited Investor set forth above: 

	 	(z) 	
      “bank” means a bank named in Schedule I or II of the
      Bank Act (Canada);

	 	 	 	 	 
	 	(aa) 	
      “Canadian financial institution” means

	 	 	 	 	 
	 		(i) 	
      an association governed by the Cooperative Credit
      Associations Act (Canada) or a central cooperative credit society for
      which an order has been made under section 473(1) of that Act,
or

	 	 	 	 	 
	 		(ii) 	
      a bank, loan corporation, trust company, trust
      corporation, insurance company, treasury branch, credit union, caisse
      populaire, financial services cooperative, or league that, in each case,
      is authorized by an enactment of Canada or a jurisdiction of Canada to
      carry on business in Canada or a jurisdiction of Canada;

	 	 	 	 	 
	 	(bb) 	
      “control person” has the same meaning as in securities
      legislation except in Manitoba, Newfoundland and Labrador, Northwest
      Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island and
      Quebéc where control person means any person that holds or is one of a
      combination of persons that holds

	 	 	 	 	 
	 		(i) 	
      a sufficient number of any of the securities of an issuer
      so as to affect materially the control of the issuer, or

	 	 	 	 	 
	 		(ii) 	
      more than 20% of the outstanding voting securities of an
      issuer except where there is evidence showing that the holding of those
      securities does not affect materially the control of the issuer;

	 	 	 	 	 
	 	(cc) 	
      “director” means:

	 	 	 	 	 
	 		(i) 	
      a member of the board of directors of a company or an
      individual who performs similar functions for a company, and

	 	 	 	 	 
	 		(ii) 	
      with respect to a person that is not a company, an
      individual who performs functions similar to those of a director of a
      company;

	 	 	 	 	 
	 	(dd) 	
      “eligibility adviser” means

	 	 	 	 	 
	 		(i) 	
      a person that is registered as an investment dealer or in
      an equivalent category of registration under the securities legislation of
      the jurisdiction of a purchaser and authorized to give advice with respect
      to the type of security being distributed, and

	 	 	 	 	 
	 		(ii) 	
      in Saskatchewan and Manitoba, also means a lawyer who is
      a practicing member in good standing with a law society of a jurisdiction
      of Canada or a public accountant who is a member in good standing of an
      institute or association of chartered accountants, certified general
      accountants or certified management accountants in a jurisdiction of
      Canada provided that the lawyer or public accountant must not

	 	 	 	 	 
	 			A. 	
      have a professional, business or personal relationship
      with the issuer, or any of its directors, executive officer, founders, or
      control persons, and

	 	 	 	 	 
	 			B. 	
      have acted for or been retained personally or otherwise
      as an employee, executive officer, director, associate or partner of a
      person that has acted for or

been retained by the issuer or any of
its directors, executive officers, founders or control persons within the
previous 12 months; 

	 	(ee) 	
      “executive officer” means, for an issuer, an individual
      who is

	 	 	 	 
	 		(i) 	
      a chair, vice-chair or president,

	 	 	 	 
	 		(ii) 	
      a vice-president in charge of a principal business unit,
      division or function including sales, finance or production,

	 	 	 	 
	 		(iii) 	
      an officer of the issuer or any of its subsidiaries and
      who performs a policy-making function in respect of the issuer,
  or

	 	 	 	 
	 		(iv) 	
      performing a policy-making function in respect of the
      issuer;

	 	 	 	 
	 	(ff) 	
      “financial assets” means cash, securities, or a contract
      of insurance, a deposit or an evidence of a deposit that is not a security
      for the purposes of securities legislation.;

	 	 	 	 
	 	(gg) 	
      “founder” means, in respect of an issuer, a person
      who,

	 	 	 	 
	 		(i) 	
      acting alone, in conjunction, or in concert with one or
      more persons, directly or indirectly, takes the initiative in founding,
      organizing or substantially reorganizing the business of the issuer,
      and

	 	 	 	 
	 		(ii) 	
      at the time of the trade is actively involved in the
      business of the issuer;

	 	 	 	 
	 	(hh) 	
      “foreign jurisdiction” means a country other than Canada
      or a political subdivision of a country other than Canada;

	 	 	 	 
	 	(ii) 	
      “fully managed account” means an account of a client for
      which a person makes the investment decisions if that person has full
      discretion to trade in securities for the account without requiring the
      client’s express consent to a transaction;

	 	 	 	 
	 	(jj) 	
      “investment fund” has the same meaning as in National
      Instrument 81-106 Investment Fund Continuous Disclosure;

	 	 	 	 
	 	(kk) 	
      “jurisdiction” means a province or territory of Canada
      except when used in the term foreign jurisdiction;

	 	 	 	 
	 	(ll) 	
      “non-redeemable investment fund” means an
  issuer,

	 	 	 	 
	 		(i) 	
      where contributions of securityholders are pooled for
      investment,

	 	 	 	 
	 		(ii) 	
      where securityholders do not have day-to-day control over
      the management and investment decisions of the issuer, whether or not they
      have the right to be consulted or to give directions, and

	 	 	 	 
	 		(iii) 	
      whose securities do not entitle the securityholder to
      receive on demand, or within a specified period after demand, an amount
      computed by reference to the value of a proportionate interest in the
      whole or in part of the net assets of the issuer;

	 	 	 	 
	 	(mm) 	
      “person” includes

	 	 	 	 
	 		(i) 	
      an individual,

	 	 	 	 
	 		(ii) 	
      a corporation,

	 	(iii) 	
      a partnership, trust, fund and an association, syndicate,
      organization or other organized group of persons, whether incorporated or
      not, and

	 	 	 
	 	(iv) 	
      an individual or other person in that person’s capacity
      as a trustee, executor, administrator or personal or other legal
      representative;

	 	(nn) 	
      “regulator” means, for the local jurisdiction, the
      Executive Director as defined under securities legislation of the local
      jurisdiction;

	 	 	 	 
	 	(oo) 	
      “related liabilities” means

	 	 	 	 
	 		(i) 	
      Liabilities incurred or assumed for the purpose of
      financing the acquisition or ownership of financial assets, or

	 	 	 	 
	 		(ii) 	
      Liabilities that are secured by financial
  assets;

	 	 	 	 
	 	(pp) 	
      “Schedule III bank” means an authorized foreign bank
      named in Schedule III of the Bank Act (Canada);

	 	 	 	 
	 	(qq) 	
      “spouse” means, an individual who,

	 	 	 	 
	 		(i) 	
      is married to another individual and is not living
      separate and apart within the meaning of the Divorce Act (Canada), from
      the other individual,

	 	 	 	 
	 		(ii) 	
      is living with another individual in a marriage-like
      relationship, including a marriage-like relationship between individuals
      of the same gender, or

	 	 	 	 
	 		(iii) 	
      in Alberta, is an individual referred to in paragraph (i)
      or (ii) above, or is an adult interdependent partner within the meaning of
      the Adult Interdependent Relationships Act (Alberta);

	 	 	 	 
	 	(rr) 	
      “subsidiary” means an issuer that is controlled directly
      or indirectly by another issuer and includes a subsidiary of that
      subsidiary;

	 	 	 	 
	 	(ss) 	
      An issuer is an affiliate of another issuer if:

	 	 	 	 
	 		(i) 	
      one of them is the subsidiary of the other, or

	 	 	 	 
	 		(ii) 	
      each of them is controlled by the same person,
  and

	 	 	 	 
	 	(tt) 	
      A person (first person) is considered to control another
      person (second person) if:

	 	 	 	 
	 		(i) 	
      the first person, directly or indirectly, beneficially
      owns or exercises control or direction over securities of the second
      person carrying votes which, if exercised, would entitle the first person
      to elect a majority of the directors of the second person, unless that
      first person holds the voting securities only to secure an
    obligation,

	 	 	 	 
	 		(ii) 	
      the second person is a partnership, other than a limited
      partnership, and the first person holds more than 50% of the interest of
      the partnership, or

	 	 	 	 
	 		(iii) 	
      the second person is a limited partnership and the
      general partner of the limited partnership is the first
  person.

All monetary references are in Canadian dollars. 

	SCHEDULE “C” 
	 
	 

FORM OF DECLARATION FOR REMOVAL OF LEGEND 

	TO: 	COMPUTERSHARE INVESTOR
      SERVICES INC. 
	  	as registrar and transfer
      agent for Common Shares of AMG OIL LTD. 

The undersigned (a) acknowledges that the sale of the
securities of AMG OIL INC. (the “Company”) to which this declaration
relates is being made in reliance on Rule 904 of Regulation S under the United
States Securities Act of 1933, as amended (the “U.S. Securities Act”) and
(b) certifies that (1) the undersigned is not an affiliate of the Company (as
that term is defined in Rule 405 under the U.S. Securities Act), (2) the offer
of such securities was not made to a person in the United States or a U.S.
person and either (A) at the time the buy order was originated, the buyer was
outside the United States and not a U.S. person, or the seller and any person
acting on its behalf reasonably believed that the buyer was outside the United
States and not a U.S. person, or (B) the transaction was executed in, on or
through the facilities of the Frankfurt Stock Exchange or another “designated
offshore securities market” and neither the seller nor any person acting on its
behalf knows that the transaction has been prearranged with a buyer in the
United States or a U.S. person, (3) neither the seller nor any affiliate of the
seller nor any person acting on any of their behalf has engaged or will engage
in any “directed selling efforts” in the United States in connection with the
offer and sale of such securities, (4) the sale is bona fide and not for the
purpose of “washing off” the resale restrictions imposed because the securities
are “restricted securities” (as such term is defined in Rule 144(a)(3) under the
U.S. Securities Act), (5) the seller does not intend to replace the securities
sold in reliance on Rule 904 of Regulation S under the U.S. Securities Act with
fungible unrestricted securities, and (6) the contemplated sale is not a
transaction, or part of a series of transactions which, although in technical
compliance with Regulation S under the U.S. Securities Act, is part of a plan or
scheme to evade the registration provisions of the U.S. Securities Act. Terms
used herein have the meanings given to them by Regulation S under the U.S.
Securities Act. 

	Dated: 
      __________________________________	
	 	Name of Seller:
      _______________________________________
	 	  
	 	By: 
      _______________________________________________
	 	            
      Name: 
	 	            
      Title: 

Affirmation by Seller’s Broker-Dealer 

We have read the foregoing representations of our customer,
_____________________________ (the “Seller”), dated
_______________________, with regard to our sale, for such Seller’s account, of
the _________________ Shares, represented by certificate number ______________
(the “Shares”), of the Company described therein, and on behalf of
ourselves we certify and affirm that (A) we have no knowledge that the
transaction had been prearranged with a buyer in the United States or a U.S.
person, (B) the transaction was executed on or through the facilities of the
Toronto Stock Exchange or another “designated offshore securities market” and
(C) neither we, nor any person acting on our behalf, engaged in any “directed
selling efforts” in connection with the offer and sale of such Securities. Terms
used herein have the meanings given to them by Regulation S. 

Name of Firm: _______________________________________

By:
_______________________________________________
           
Authorized Officer 

	SCHEDULE “D” 
	 
	 

INFORMATION REQUIRED TO RECEIVE INCOMING WIRES 

For funds being sent from outside of Canada: 

Beneficiary Name: ADIRA ENERGY CORP. 

Beneficiary Address:   30 ST. CLAIR AVENUE WEST,
SUITE 901

                                        
TORONTO, ONTARIO M4V 3A1

Account No.: XXXXX

Transit No.: XXXXX

Institution No.: XXXXX

Beneficiary Bank: Royal Bank of Canada 

Beneficiary Bank Address:   10 ST. CLAIR AVENUE WEST

                                                  
TORONTO,
ONTARIO 
                                                  
M4V 1L4 

Swift Code: XXXXX

For funds being sent in USD, include the following
information: 

Intermediary Bank: JP Morgan Chase Manhattan, New York, NY

  Swift Code: XXXXX

  ABA: XXXXX

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]