Document:

ex101-_17088.htm

EXHIBIT 10.1

 

REAL PROPERTY SALE AND LEASE AGREEMENT

This Agreement is made this the 18th day of January, 2011 between Greystone Real Estate L.L.C.(“Real Estate”) an Oklahoma Limited Liability Company  with a place of business located at 1613 E. 15th Street, Tulsa, OK 74120 and Greystone Manufacturing, LLC (“Greystone”), an Oklahoma Limited Liability Company with its mailing address and chief place of business at 2601 Shoreline Drive, Bettendorf, IA 52722..

The parties hereto, desiring legally to be bound, hereby do agree as follows:

	
1.

	
SALE/LEASE:

 

Greystone agrees to sell to Real Estate the Real Property as described in Schedule A hereto and all of the fixtures and appurtenances thereto, free and clear of all liens and encumbrances for $2,700,000.00. Payment to Greystone shall be made by Real Estate through the payoff of a loan ($1,305,546.00) plus accrued interest ($35,917.58) to Greystone Plastics, Inc. at Attn: Bill Hamilton, 28439 Great River Road, Princeton IA., 52768, a cash deposit of $658,536.42 to Greystone’s account No. 348643 at F&M Bank, Tulsa, OK, and a note payable in the amount of $700,000.00 from Real Estate to Greystone.  The note payable will accrue interest at the rate of five percent (5%) per annum with a maturity date of April 18, 2011  Real Estate agrees to lease to Greystone, and Greystone agrees to lease from Real Estate, the Real Property described in the attached schedule which is incorporates the terms of this Lease.  Any reference to “Lease” shall mean this Lease Agreement, the Real Property Schedule(s) and all Rider(s) and Supplement(s) thereto, if any.   {Real Estate and Greystone agree, and Greystone represents for the benefit of Real Estate and its Assignee (s), that, except as otherwise provided in a particular Real Property Schedule, the Lease is intended to be a “finance lease” and not a “lease intended as security” as those terms are used in the Uniform Commercial Code (including Article 2A thereof); and that the Lease is intended to be a “true lease” as said term is commonly used under the Internal Revenue Code of 1986, as amended. }

	
2. 

	
DEFINITIONS:

 

(a) The “Effective Date” shall be:

 

(i)   The date hereof;

       (b) The “Daily Rental” means 1/30th of the amount set forth as the Monthly Rental.

	
3. 

	
TERM OF LEASE:

 

(a) The term of this Lease, as to all Real Property designated on any Real Property Schedule, shall commence on the Effective Date and shall continue for an initial period of one hundred and twenty (120) months (the “Initial Term”).  Any such termination shall be effective only on the last day of the Initial Term.

	
4. 

	
RENTAL:

 

The monthly rental payable hereunder is as follows:  The monthly rental shall be fixed at $20,133.33 per month (60,400 sq. ft. @ $4.00 per sq. ft./year) payable on the 15th of each month and every month thereafter through the one hundred and twentieth month.

 

Lease Penalty Interest on any past due payments under this Lease shall accrue at the rate of 1 1/2% per month, or, if less, the maximum rate allowed by law, and shall be payable on demand.  Charges for taxes, levies, imposts, duties, fees, assessments or other charges, penalties and interest shall be promptly paid by Greystone when due.   Greystone shall, at its expense, insure the Real Property at its full replacement cost and name Real Estate and it’s designees as loss payee under the policy.  Real Estate, at its option, may elect to accumulate such late charges and collect them on a periodic basis.  Additionally, all reasonable sums incurred or expended by Real Estate in the collection of any late payment shall be without demand, immediately due and payable by Greystone and considered rent hereunder.

 

  

  

  

	
5. 

	
INSTALLATION, USE AND QUIET POSSESSION OF REAL PROPERTY:

 

(a) Greystone shall use the Real Property solely in the conduct of its business and in a careful and proper manner consistent with the requirements of all applicable insurance policies.

 

(b) Greystone will at all times keep the Real Property in good repair and in compliance with the laws of the State of Iowa.

 

(c) Greystone, shall not use, alter or locate or permit the Real Property to be used, altered or located in any manner or for any purpose for which, in the opinion of the insurer, the Real Property is not designed or reasonably suitable or which would increase the risk of any damage or loss to the Real Property or to any other persons or property.  Greystone shall comply with all governmental laws, rules and regulations regarding its use, maintenance, and operation of the Real Property.

	
6. 

	
OWNERSHIP AND INSPECTION:

 

(a) Greystone shall have no interest in the Real Property other than the rights acquired as a Lessee hereunder.  As owner, Real Estate will retain title to the Real Property however Greystone will assume all governmental reporting responsibilities in connection therewith. The Real Property is and shall always remain separate identifiable real property.  Greystone shall not permit the Real Property to be used or maintained in such a manner or under such circumstances that any person might acquire any right in such Real Property paramount to the rights of Real Estate

 

(b) GREYSTONE SHALL KEEP THE REAL PROPERTY CLEAR OF ALL LIENS AND ENCUMBRANCES EXCEPT LIENS OR ENCUMBRANCES ARISING THROUGH THE ACTIONS OR OMISSIONS OF REAL ESTATE.  (GREYSTONE SHALL NOT ASSIGN OR OTHERWISE ENCUMBER THIS LEASE OR ANY OF ITS RIGHTS HEREUNDER OR SUBLEASE THE REAL PROPERTY WITHOUT THE PRIOR WRITTEN CONSENT OF REAL ESTATE, SUCH CONSENT NOT TO BE UNREASONABLY WITHHELD), except that Greystone, upon prior notice to Real Estate, may assign this Lease or sublease the Real Property to its parent or any subsidiary corporation.  No assignment or sublease shall relieve Greystone of any of its obligations hereunder.

 

(c) With prior written notice to Greystone, Real Estate and/or its agents shall have free access to the Real Property at all reasonable times for the purpose of inspection and for any other purpose contemplated in this Lease.

 

(d) Greystone shall immediately notify Real Estate of all details concerning any damage to, or loss of, the Real Property arising out of any event or occurrence whatsoever, including but not limited to, the alleged or apparent improper manufacture, functioning or operation of the Real Property.

 

	
7. 

	
WARRANTIES:

 

(a) Greystone represents, covenants and agrees that, at the Effective Date set forth in the applicable Real Property Schedule, it shall have (i) thoroughly inspected the Real Property, (ii) determined for itself that all Real Property are in good condition, and are of a size, design, capacity and manufacture selected by it and (iii) satisfied itself that the Real Property are suitable for Greystone’s purposes. Real Estate shall not be responsible for any direct or consequential loss or damage resulting from the operation, maintenance or use of the Real Property by Greystone’s personnel.  Greystone hereby assumes, and will defend, indemnify and hold Real Estate harmless against, any and all claims, demands and liabilities arising out of or in connection with the possession, use or operation of the Real Property.

 

(b) Greystone agrees that the application, statements, and financial reports submitted by it to Real Estate are material inducement to the execution by Real Estate of this Lease, and Greystone warrants that such application, statements, and reports are, and all information hereafter furnished by Greystone Real Estate will be, true and correct in all material respects as of the date submitted.

	
8. 

	
EVENTS OF DEFAULT AND REMEDIES:

 

The occurrence of any one of the following shall constitute an Event of Default hereunder:

 

(a) Greystone fails to pay any installment of rent on or before the fifth day following the date when the same becomes due and payable;

 

(b) Greystone attempts to, sell, transfer, encumber, sublet or part with possession of the Real Property or any items thereof, except as expressly permitted herein;

 

(c) Greystone shall fail to observe or perform any of the other obligations required to be observed or performed by Greystone hereunder and such failure shall continue uncured for (10) days after written notice thereof to Greystone by Real Estate.

 

(d) Any representation or warranty made by Greystone herein or in any document or certificate furnished in connection herewith shall prove incorrect in any material respect;

  

  

  

(e) Greystone ceases doing business as a going concern, makes an assignment for the benefit of creditors, admits in writing its inability to pay its debts as they become due, files a voluntary petition in bankruptcy, is adjudicated a bankrupt or an insolvent, files a petition seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar arrangement under any present or future statute, law or regulation or files an answer admitting the material allegations of a petition filed against it in any such proceeding, consents to or acquiesces in the appointment of a trustee, receiver, or liquidator of it or off all or any substantial part of its assets or Real Estate, or if it or its shareholders shall take any action looking to its dissolution or liquidation; or

 

(f) Within 30 days after the commencement of any proceedings against Greystone seeking reorganization, arrangement readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such proceedings shall not have been dismissed, or if within 30 days after the appointment, without Greystone’s consent or acquiescence of any trustee, receiver or liquidator of it or of all or any substantial part of its assets and Real Estate, such appointment shall not be vacated.

 

Upon the occurrence of an Event of Default, Real Estate may at its option do any or all of the following: (i) By notice to Greystone terminate this Lease as to any or all Real Property Schedules;  (ii) whether or not this Lease is terminated as to any or all Real Property Schedule, take possession of any or all of the Real Property listed on any or all Real Property Schedules, wherever situated, and for such purpose, enter upon any premises without liability for so doing or Real Estate may cause Greystone, and Greystone hereby agrees, to return the Real Property to Real Estate as provided in this Lease:  (iii) recover from Greystone, as liquidated damages for loss of a bargain and not as a penalty, an amount equal to the present value of all monies to be paid by Greystone during the remainder of the Initial Term or any successive period then in effect, discounted at the rate of four  percent (4%) per annum, which payment shall become immediately due and payable; and (iv) sell, dispose of, hold, or use or lease any Real Property as Real Estate in its sole discretion may determine without, except as provided below, any duty to account to Greystone (and Real Estate shall not be obligated to give preference to the sale, lease or other disposition of the Real Property over the sale, lease or other disposition of similar Real Property owned or leased by Real Estate).  In any event, Greystone shall, without further demand, pay to the Real Estate an amount equal to all sums due and payable for all periods up to and including the date on which Real Estate has declared this Lease to be in default.

 

In the event that Greystone shall have paid to Real Estate the liquidated damages referred to in clause (iii) above, Real Estate hereby agrees to pay to Greystone, promptly after receipt thereof, all rentals or proceeds received from the reletting or sale of the Real Property to the extent such rentals or proceeds are attributable to the balance of the Initial Term (after deduction of all expenses incurred by Real Estate and, in the case of a sale, Real Estate’ reasonably determined residual interest in the Real Property as of the scheduled expiration of the Initial Term), said amount never to exceed the amount of the liquidated damages paid by Greystone.  Greystone agrees that Real Estate shall have no obligation to sell or lease the Real Property and shall not be required to give preference to the sale, lease or other disposition of the Real Property over the sale, lease or other disposition of similar Real Property owned or leased by Real Estate.  Greystone shall in any event remain fully liable for reasonable damages as provided by law and for all costs and expenses incurred by Real Estate on account of such default including, but not limited to, all court costs and reasonable attorney’s fees.  The rights afforded Real Estate hereunder shall not be deemed to be exclusive, but shall be in addition to any rights or remedies provided by law.  Real Estate agree to seek to mitigate its damages in a commercially reasonable manner.

	
9. 

	
NET LEASE:

 

        It is understood and agreed that this is a net lease and that as between Real Estate and Greystone, Greystone shall be responsible for all the costs and expenses of every nature whatsoever arising out of or in connection with or related to this Lease or the Real Property, including but not limited to taxes, utilities, insurance and/or loss, damage or maintenance related to the Real Property.  Real Estate shall be named as an additional insured as to all insurance policies insuring the Real Property.  Greystone hereby agrees that in the event that Greystone fails to pay or perform any obligation under this Lease, Real Estate may, at its option, pay or perform said obligation and any payment made or expense incurred by Real Estate in connection therewith shall become additional rent which shall be due and payable by Greystone upon demand.

	
10. 

	
ASSIGNMENT:

 

Greystone agrees that Real Estate may transfer or assign all or any part of Real Estate’ right, title and interest in, under or to the Real Property and this Lease and any or all sums due or to become due pursuant to any of the above, to any third party (the “Assignee”) for any reason.  Greystone agrees that upon receipt of written notice from Real Estate of such assignment, Greystone shall perform all of its obligations hereunder for the benefit of Assignee and, if so directed, shall pay all sums due or to become due hereunder directly to the Assignee or to any other party designated by the Assignee.  Greystone hereby covenants, represents, warrants and agrees that the Assignee shall be entitled to rely on and shall be considered a third party beneficiary of the following covenants, representations and warranties: (i) Greystone’s obligations to Assignee hereunder are absolute and unconditional and are not subject to any abatement, reduction, recoupment, defense, offset or counterclaim available to Greystone for any reason whatsoever including, without limitation, operation of law, defect in the Real Property, failure of Real Estate to 

 

  

  

  

perform any of its obligations hereunder or under any other agreement Greystone may have with Real Estate regarding the Real Property which is the subject of this Lease or for any other cause or reason whatsoever, whether similar or dissimilar to the foregoing (Greystone reserving its rights to have separate recourse directly against Real Estate on account of any thereof); nor, except as otherwise expressly provided herein, shall this Agreement terminate, or the respective obligations of Real Estate or Greystone be otherwise affected, by reason of any of the foregoing or for any other cause whether similar or dissimilar to the foregoing, any present or future law to the contrary notwithstanding, it being the intention of the parties hereto that the Monthly Rental, additional rental, and all the other sums payable by Greystone hereunder shall continue to be payable in all events and at the times herein provided; (ii) Greystone shall not look to Assignee to perform any of Real Estate’ obligations hereunder, (iii) Greystone will not amend or modify this Agreement without the prior written consent of the Assignee; and (iv) Greystone will send a copy to Assignee of each notice which Greystone sends to Real Estate. Upon receipt of notice of such assignment, Greystone agrees to execute and deliver to Real Estate such documentation as Assignee may require, including but not limited to an acknowledgment of or consent to, assignment which may require Greystone to make certain representations or reaffirmations as to some of the basic terms and covenants contained in this Lease.  Nothing contained in any documentation required by Assignee shall be derogation of any of the rights granted to Greystone hereunder.  Notwithstanding such assignment: (i) Real Estate shall not be relieved of any of its obligations hereunder; and (ii) the rights of Greystone hereunder shall not be impaired.

	
11. 

	
INDEMNIFICATION:

 

Greystone hereby agrees to assume liability for, and does hereby agree to indemnify, protect, save and keep harmless Real Estate and its respective successors and assigns against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses or disbursements (including legal fees and expenses) of any kind and nature whatsoever which may be imposed on, incurred by or asserted against Real Estate or any of its respective successors and assigns, in any way relating to or arising out of this Lease or any document contemplated hereby, or the performance or enforcement of any of the terms hereof, or in any way relating to or arising out of the lease, possession or use of the Real Property or any accident in connection therewith (including, without limitation, latent and other defects, whether or not discoverable).  Greystone shall not be required to indemnify Real Estate or its respective successors and assigns, for loss or liability in respect of any item of Real Property arising from acts or events which occur after possession of such item of Real Property has been returned to Real Estate or loss or liability resulting from the active willful misconduct of the party otherwise to be indemnified hereunder.

 

Greystone shall name Real Estate as an additional insured under all of its liability policies and shall each year provide Real Estate with a certificate of insurance designating Real Estate as an additional insured.

 

Greystone also acknowledges and agrees that Real Estate and/or its Assignee may be taking certain tax benefits available to an owner of Real Property, including accelerated cost recovery or depreciation benefits under various sections of the Internal Revenue Code of 1986 as amended (the “Tax Benefits”).  Greystone agrees that it will take no action inconsistent with the foregoing and that it will indemnify Real Estate and its Assignee on an after-tax basis for any loss of or delay in obtaining Tax Benefits due to Greystone’s act, omission to act or misrepresentation, including but not limited to an Event of Default by Greystone.

	
12. 

	
PURCHASE AND RENEWAL OPTIONS:

 

(a)  So long as there is no Event of Default (or event which, with the giving of notice, passage of time or both, would constitute an Event of Default), Greystone shall have the option, with at least two months’ prior written notice to Real Estate, to purchase the Real Property at a price equal to fair market value as determined by a reputable commercial real estate appraiser who is acceptable to both parties.

	
13. 

	
MISCELLANEOUS:

 

(a) Neither this Lease nor any consent or approval provided for herein shall be binding upon Real Estate unless signed on its behalf by a duly authorized officer.  This Agreement shall be deemed to have been made in the State of Ohio and shall be governed in all respects by the laws of such State.

 

(b) This Lease constitutes the entire agreement between Greystone and Real Estate with respect to the Real Property, and no covenant, condition or other term or provision may be waived or modified orally.

 

(c) All notices hereunder shall be in writing and shall be delivered in person or sent by registered or certified mail, postage prepaid, to the address of the other party as set forth herein, or to such other address as such party shall have designated by proper notice.

 

(d) This Lease shall be binding upon and inure to the benefit of Real Estate and Greystone and their respective successors and assigns (including any subsequent assignee of Assignee).

 

  

  

  

(e) If any term or provision of this Lease or the application thereof to any person is, to any extent, invalid or unenforceable, the remainder of this lease, or the application of such provision to the person other than those to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

 

(f) No waiver of any of the terms and conditions hereof shall be effective unless in writing and signed by the party against whom such waiver is sought to be enforced. The waiver by the Real Estate or Greystone of any breach of any obligation of Greystone or Real Estate shall not be deemed a waiver of such obligation or of any subsequent breach of the same or any other obligation.  The subsequent acceptance of rental payments hereunder by Real Estate shall not be deemed a waiver of any prior existing breach of Greystone regardless of Real Estate’ knowledge of such prior existing breach at the time of acceptance of such rental payments.  The rights afforded Real Estate and Greystone under this Paragraph shall not be deemed to be exclusive, but shall be in addition to any rights or remedies provided by law.

 

(g) Real Estate is hereby authorized by Greystone to cause this Lease or other instruments, including Uniform Commercial Code Financing Statements, to be filed or recorded for the purposes of showing Real Estate’ interest in the Real Property and Greystone agrees to execute and deliver all such instruments at the request of Real Estate necessary to do so.

 

(h) There shall be only one original of each Real Property Schedule to the Lease, and it shall be marked “Original,” and all other counterparts will be duplicates.  To the extent, if any, that any Real Property Schedule(s) to this Lease constitutes chattel paper (or as such term is defined in the Uniform Commercial Code as in effect in any applicable jurisdiction) no security in any Real Property Schedule(s) may be created in any document(s) other than the “Original.”

 

(i) In the event of the conflict between the terms and conditions of this Lease Agreement and the terms and conditions of any Real Property Schedule(s) or Rider(s) thereto, the terms and conditions of such Real Property Schedule(s) or Rider(s) shall prevail.

 

(j) Upon request of Real Estate, Greystone hereby agrees to deliver to Real Estate a copy of Greystone’s financial statements within a reasonable time after said statements are available.

 

(k) The obligations which Greystone is required to perform during the term of this Lease shall survive the expiration or other termination of this Lease, but only to the extent that such obligations remain unperformed as the expiration or termination of this Lease.

 

(m)  Greystone represents, warrants and covenants that, with respect to this Agreement and each Real Property Schedule executed hereunder:  (i)  Greystone is a corporation duly organized and validly existing in good standing in the state of Iowa, (ii)  The execution, delivery and performance thereof by Greystone have been duly authorized by all necessary corporate or other action and does not conflict with Greystone’s charter or by-laws or other organizational documentation or with any indenture, contract or agreement by which it is bound, or with any statute, judgment, decree, rule or regulation binding upon it.  (iii)  Any individual executing this Agreement or any documents delivered in connection herewith on behalf of Greystone is duly authorized to do so. (iv) This Agreement and each Real Property Schedule constitute legal, valid and binding agreements of Greystone enforceable in accordance with their respective terms.  (v)  The Real Property is personal property and when subjected to use by Greystone will not be or become a fixture under applicable law.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year above written.

 

	 
REAL ESTATE: Greystone Real Estate L.L.C.

 

By: Warren F. Kruger—Manager

 

/s/ Warren F. Kruger 

	 
GREYSTONE: Greystone Manufacturing L.L.C.

 

By: William W. Rahhal – VicePresident and CFO

 

/s/ William W. Rahhalex10-1.htm

THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.

 

UNLESS OTHERWISE PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES 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.

 

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT

(Non US Subscribers)

 

	
TO:

	
Kore Nutrition Incorporated (the “Company”)

2505 Anthem Village, Suite E-460

Henderson, Nevada 89052

 

	
  

	
PURCHASE OF UNITS

 

	
1.

	
Subscription

 

1.1           On the basis of the representations and warranties and subject to the terms and conditions set forth herein, the undersigned (the “Subscriber”) hereby irrevocably subscribes for and agrees to purchase units (the “Units”) of the Company at a price of $0.10 per Unit (such subscription and agreement to purchase being the “Subscription”), for an aggregate purchase price as set out on the signature page of this Subscription Agreement (the “Subscription Proceeds”) which is tendered herewith, on the basis of the representations and warranties and subject to the terms and conditions set forth herein.

 

1.2           Each Unit will consist of one common share in the capital of the Company (each, a “Share”) and one common share purchase warrant (each, a “Warrant”) subject to adjustment.  Each Warrant shall be non-transferable.  Each Warrant shall entitle the holder thereof to purchase one common share in the capital of the Company (each, a “Warrant Share”), as presently constituted, for a period of 2 years commencing from the Closing Date (defined herein) at an exercise price of $0.15 per Warrant Share.  Certificates representing the Warrants will be in the form attached as Exhibit B hereto.  The Shares, Warrants and Warrant Shares are referred to herein as the “Securities”.

 

1.3           The Company hereby agrees to sell, on the basis of the representations and warranties and subject to the terms and conditions set forth herein, the Units to the Subscriber.  Subject to the terms hereof, the Subscription Agreement will be effective upon its acceptance by the Company.

 

1.4            Unless otherwise provided, all dollar amounts referred to in this Subscription Agreement are in lawful money of the United States of America.

 

1.5            Payment

  

  

  

1.6           The Subscription Proceeds must accompany this Subscription and shall be paid by certified cheque or bank draft drawn on a Canadian chartered bank, and made payable and delivered to the Company.  Alternatively, the Subscription Proceeds may be wired to the Company or its lawyers pursuant to wiring instructions that will be provided to the Subscriber upon request.  If the funds are wired to the Company’s lawyers, those lawyers are authorized to immediately deliver the funds to the Company.

 

1.7           The Subscriber acknowledges and agrees that this Subscription Agreement, the Subscription Proceeds and any other documents delivered in connection herewith will be held on behalf of the Company.  In the event that this Subscription Agreement is not accepted by the Company for whatever reason, which the Company expressly reserves the right to do, within 45 days of the delivery of an executed Subscription Agreement by the Subscriber, this Subscription Agreement, the Subscription Proceeds (without interest thereon) and any other documents delivered in connection herewith will be returned to the Subscriber at the address of the Subscriber as set forth in this Subscription Agreement.

 

1.8           Where the Subscription Proceeds are paid to the Company, the Company is entitled to treat such Subscription Proceeds as an interest free loan to the Company until such time as the Subscription is accepted and the certificates representing the Shares have been issued to the Subscriber.

 

	
2.

	
Documents Required from Subscriber

 

2.1           The Subscriber must complete, sign and return to the Company the following documents:

 

	
  

	
(a)

	
two (2) executed copies of this Subscription Agreement; and

 

	
  

	
(b)

	
an Investor Questionnaire (the “Questionnaire”) attached as Exhibit A to this Subscription Agreement.

 

2.2           The Subscriber shall complete, sign and return to the Company as soon as possible, on request by the Company, any additional documents, questionnaires, notices and undertakings as may be required by any regulatory authorities and applicable law.

 

2.3            Both parties to this Subscription Agreement acknowledge and agree that Clark Wilson LLP has acted as counsel only to the Company and is not protecting the rights and interests of the Subscriber.  The Subscriber acknowledges and agrees that the Company and Clark Wilson LLP have given the Subscriber the opportunity to seek, and have recommended that the Subscriber obtain, independent legal advice with respect to the subject matter of this Subscription Agreement and, further, the Subscriber hereby represents and warrants to the Company and Clark Wilson LLP that the Subscriber has sought independent legal advice or waives such advice.

 

	
3.

	
Conditions and Closing

 

3.1             Closing of the purchase and sale of the Shares shall occur on or before __________________, or on such other date as may be determined by the Company in its sole discretion (the “Closing Date”).  The Subscriber acknowledges that Shares may be issued to other subscribers under this offering (the “Offering”) before or after the Closing Date.  The Company, may, at its discretion, elect to close the Offering in one or more closings, in which event the Company may agree with one or more subscribers (including the Subscriber hereunder) to complete delivery of the Shares to such subscriber(s) against payment therefore at any time on or prior to the Closing Date.

 

3.2             The Subscriber acknowledges that the certificates representing the Shares and the Warrants will be available for delivery upon Closing provided that the Subscriber has satisfied the requirements of Section 3 hereof and the Company has accepted this Subscription Agreement.

 

3.3            Acknowledgements and Agreements of Subscriber

  

2

  

3.4            The Subscriber acknowledges and agrees that:

 

	
  

	
(a)

	
none of the Securities have been or will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or under any state securities or “blue sky” laws of any state of the United States, and, unless so registered, may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S under the 1933 Act (“Regulation S”), except in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act and in each case only in accordance with applicable state and provincial securities laws;

 

	
  

	
(b)

	
the Subscriber acknowledges that the Company has not undertaken, and will have no obligation, to register any of the Securities under the 1933 Act or any other securities legislation;

 

	
  

	
(c)

	
by completing the Questionnaire, the Subscriber is representing and warranting that the Subscriber satisfies one of the categories of registration and prospectus exemptions provided in National Instrument 45-106 (“NI 45-106”) adopted by the British Columbia Securities Commission (the “BCSC”) and other provincial securities commissions;

 

	
  

	
(d)

	
the decision to execute this Subscription Agreement and acquire the Securities agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company and such decision is based entirely upon a review of any public information which has been filed by the Company with the Securities and Exchange Commission (the “SEC”) in compliance, or intended compliance, with applicable securities legislation;

 

	
  

	
(e)

	
the Subscriber and the Subscriber’s advisor(s) have had a reasonable opportunity to ask questions of and receive answers from the Company in connection with the distribution of the Securities hereunder, and to obtain additional information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of the information about the Company;

 

	
  

	
(f)

	
the books and records of the Company were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by the Subscriber during reasonable business hours at its principal place of business, and all documents, records and books in connection with the distribution of the Securities hereunder have been made available for inspection by the Subscriber, the Subscriber’s lawyer and/or advisor(s);

 

	
  

	
(g)

	
the Company is entitled to rely on the representations and warranties of the Subscriber contained in this Subscription Agreement and the Subscriber will hold harmless the Company from any loss or damage it or they may suffer as a result of the Subscriber’s failure to correctly complete this Subscription Agreement;

 

	
  

	
(h)

	
the Subscriber will indemnify and hold harmless the Company and, where applicable, its directors, officers, employees, agents, advisors and shareholders, from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation or warranty of the Subscriber contained in this Subscription Agreement or in any document furnished by the Subscriber to the Company in connection herewith being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;

 

	
  

	
 

  

3

  

 

	
  

	
(i)

	
none of the Securities are listed on any stock exchange or automated dealer quotation system and no representation has been made to the Subscriber that any of the Securities will become listed on any stock exchange or automated dealer quotation system;

 

	
  

	
(j)

	
the Company will refuse to register any transfer of the Securities not made in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption from the registration requirements of the 1933 Act and in accordance with any other applicable securities laws;

 

	
  

	
(k)

	
the Subscriber has been advised to consult the Subscriber’s own legal, tax and other advisors with respect to the merits and risks of an investment in the Securities and with respect to applicable resale restrictions, and it is solely responsible (and the Company is not in any way responsible) for compliance with:

 

	
  

	
(i)

	
any applicable laws of the jurisdiction in which the Subscriber is resident in connection with the distribution of the Securities hereunder, and

 

	
  

	
(ii)

	
applicable resale restrictions;

 

	
  

	
(l)

	
in addition to resale restrictions imposed under U.S. securities laws, there are additional restrictions on the Subscriber’s ability to resell any of the Securities in Canada under the Securities Act (British Columbia) (the “BC Act”) and National Instrument 51-102 as adopted by the BCSC;

 

	
  

	
(m)

	
the Company has advised the Subscriber that the Company is relying on an exemption from the requirements to provide the Subscriber with a prospectus to issue the Securities and, as a consequence of acquiring the Securities pursuant to such exemption certain protections, rights and remedies provided by the applicable securities legislation of British Columbia including statutory rights of rescission or damages, will not be available to the Subscriber;

 

	
  

	
(n)

	
neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the Securities;

 

	
  

	
(o)

	
no documents in connection with the sale of the Securities hereunder have been reviewed by the SEC or any state securities administrators;

 

	
  

	
(p)

	
there is no government or other insurance covering any of the Securities; and

 

	
  

	
(q)

	
this Subscription Agreement is not enforceable by the Subscriber unless it has been accepted by the Company.

 

	
4.

	
Representations, Warranties and Covenants of the Subscriber

 

4.1            The Subscriber hereby represents and warrants to and covenants with the Company (which representations, warranties and covenants shall survive the Closing) that:

 

	
  

	
(a)

	
the Subscriber is not a U.S. Person;

 

	
  

	
(b)

	
the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto;

 

	
  

	
(c)

	
the entering into of this Subscription Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and 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 the Subscriber is or may be bound;

 

	
  

	
(d)

	
the Subscriber has duly executed and delivered this Subscription Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;

 

	
  

	
 

  

4

  

 

	
  

	
(e)

	
the Subscriber has received and carefully read this Subscription Agreement;

 

	
  

	
(f)

	
the Subscriber is resident in the jurisdiction set out under the heading “Name and Address of Subscriber” on the signature page of this Subscription Agreement;

 

	
  

	
(g)

	
the Subscriber:

 

	
  

	
(i)

	
is knowledgeable of, or has been independently advised as to, the applicable securities laws of the securities regulators having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the acquisition of the Securities,

 

	
  

	
(ii)

	
is purchasing the Securities pursuant to exemptions from prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the Subscriber is permitted to purchase the Securities under the applicable securities laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions,

 

	
  

	
(iii)

	
acknowledges that the applicable securities laws of the authorities in the International Jurisdiction do not require the Company to make any filings or seek any approvals of any kind whatsoever from any securities regulator of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of any of the Securities,

 

	
  

	
(iv)

	
represents and warrants that the acquisition of the Securities by the Subscriber does not trigger:

 

	
  

	
A.

	
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

 

	
  

	
B.

	
any continuous disclosure reporting obligation of the Company in the International Jurisdiction, and

 

	
  

	
(v)

	
the Subscriber will, if requested by the Company, deliver to the Company a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Company, acting reasonably;

 

	
  

	
(h)

	
the Subscriber is purchasing the Securities as principal for investment only and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and, in particular, it has no intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons;

 

	
  

	
(i)

	
the Subscriber is aware that an investment in the Company is speculative and involves certain risks, including the possible loss of the entire investment;

 

	
  

	
(j)

	
the Subscriber has made an independent examination and investigation of an investment in the Securities and the Company and has depended on the advice of its legal and financial advisors and agrees that the Company will not be responsible in any way whatsoever for the Subscriber’s decision to invest in the Securities and the Company;

 

	
  

	
(k)

	
the Subscriber (i) has adequate net worth and means of providing for its current financial needs and possible personal contingencies, (ii) has no need for liquidity in this investment, and (iii) is able to bear the economic risks of an investment in the Securities for an indefinite period of time;

 

	
  

	
(l)

	
the Subscriber understands and agrees that the Company and others will rely upon the truth and accuracy of the acknowledgements, representations and agreements contained in this Subscription Agreement and the Questionnaire and agrees that if any of such acknowledgements,

 

	
  

	
 

  

5

  

 

	
  

	
(m)

	
representations and agreements are no longer accurate or have been breached, the Subscriber shall promptly notify the Company;

 

 

	
  

	
(n)

	
the Subscriber (i) is able to fend for him/her/itself in the Subscription; (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the Securities; and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;

 

	
  

	
(o)

	
the Subscriber is outside the United States when receiving and executing this Subscription Agreement;

 

	
  

	
(p)

	
the Subscriber understands and agrees that offers and sales of any of the Securities prior to the expiration of the period specified in Regulation S (such period hereinafter referred to as the “Distribution Compliance Period”) shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the 1933 Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the 1933 Act or an exemption therefrom and in each case only in accordance with applicable state and provincial securities laws;

 

	
  

	
(q)

	
the Subscriber understands and agrees not to engage in any hedging transactions involving any of the Securities unless such transactions are in compliance with the provisions of the 1933 Act and in each case only in accordance with applicable state and provincial securities laws;

 

	
  

	
(r)

	
the Subscriber acknowledges that it has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S under the 1933 Act) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of any of the Securities pursuant to registration of any of the Securities pursuant to the 1933 Act and any applicable securities laws or under an exemption from such registration requirements and as otherwise provided herein;

 

	
  

	
(s)

	
the Subscriber understands and agrees that none of the Securities have been registered under the 1933 Act, or under any state securities or “blue sky” laws of any state of the United States, and, unless so registered, may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons except in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act and in each case only in accordance with applicable state and provincial securities laws;

 

	
  

	
(t)

	
the Subscriber is not an underwriter of, or dealer in, the common shares of the Company, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;

 

	
  

	
(u)

	
the Subscriber understands and agrees that the Company will refuse to register any transfer of the Securities not made in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption from the registration requirements of the 1933 Act;

 

	
  

	
(v)

	
the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring the Securities as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and

 

	
  

	
(w)

	
no person has made to the Subscriber any written or oral representations:

 

	
  

	
 

  

6

  

 

	
  

	
(x)

	
that any person will resell or repurchase any of the Securities:

 

	
  

	
(i)

	
that any person will refund the purchase price of any of the Securities;

 

	
  

	
(ii)

	
as to the future price or value of any of the Securities; or

 

	
  

	
(iii)

	
that any of the Securities will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the Securities of the Company on any stock exchange or automated dealer quotation system.

 

4.2           In this Subscription Agreement, the term “U.S. Person” shall have the meaning ascribed thereto in Regulation S promulgated under the 1933 Act and for the purpose of the Subscription Agreement includes any person in the United States.

 

	
5.

	
Representations and Warranties will be Relied Upon by the Company

 

5.1            The Subscriber acknowledges that the representations and warranties contained herein and in the Questionnaire, if applicable, are made by it with the intention that such representations and warranties may be relied upon by the Company and its legal counsel in determining the Subscriber’s eligibility to purchase the Securities under applicable securities legislation, or (if applicable) the eligibility of others on whose behalf it is contracting hereunder to purchase the Securities under applicable securities legislation.  The Subscriber further agrees that by accepting delivery of the certificates representing the Securities on the Closing Date, it will be representing and warranting that the representations and warranties contained herein and in the Questionnaire, if applicable, are true and correct as at the Closing Date with the same force and effect as if they had been made by the Subscriber on the Closing Date and that they will survive the purchase by the Subscriber of the Securities and will continue in full force and effect notwithstanding any subsequent disposition by the Subscriber of such Securities.

 

	
6.

	
Acknowledgement and Waiver

 

6.1            The Subscriber has acknowledged that the decision to acquire the Securities was solely made on the basis of publicly available information.  The Subscriber hereby waives, to the fullest extent permitted by law, any rights of withdrawal, rescission or compensation for damages to which the Subscriber might be entitled in connection with the distribution of any of the Securities.

 

	
7.

	
Legending and Registration of Subject Securities

 

7.1            If the Subscriber is a resident of British Columbia, the Subscriber hereby consents to the placement of a legend on any certificate orthe Subscriber consents to the placement of a legend on any certificate or other document evidencing any of the Securities to the effect that such securities have not been registered under the 1933 Act, any state securities or “blue sky” laws, or under the prospectus and registration requirements of any applicable Canadian securities laws, and setting forth or referring to the restrictions on transferability and sale thereof contained in this Subscription Agreement,  such legend to be substantially as follows:

 

“THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

 

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER

  

7

  

 

THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.

 

UNLESS OTHERWISE PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES 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.”

 

7.2           If the Subscriber is not a resident of British Columbia, the Subscriber hereby consents to the placement of a legend on any certificate or other document evidencing any of the Securities to the effect that such securities have not been registered under the 1933 Act or any state securities or “blue sky” laws and setting forth or referring to the restrictions on transferability and sale thereof contained in this Subscription Agreement such legend to be substantially as follows:

 

“THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

 

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.”

 

7.3           The Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Subscription Agreement.

 

	
8.

	
Resale Restrictions

 

8.1           The Subscriber acknowledges that any resale of any of the Securities will be subject to resale restrictions contained in the securities legislation applicable to the Subscriber or proposed transferee.  The Subscriber acknowledges that none of the Securities have been registered under the 1933 Act or the securities laws of any state of the United States.  The Securities may not be offered or sold in the United States unless registered in accordance with federal securities laws and all applicable state securities laws or exemptions from such registration requirements are available.

 

8.2           The Subscriber acknowledges that the Securities are subject to resale restrictions in Canada and may not be traded in Canada except as permitted by the applicable provincial securities laws and the rules made thereunder.

 

8.3           If the Subscriber is not a resident of British Columbia, the Subscriber represents, warrants and acknowledges that: 
 

  

8

  

 

	
  

	
(a)

	
pursuant to British Columbia Instrument 51-509 – Issuers Quoted in the U.S. Over–the-Counter Markets (“BCI 51-509”), as adopted by the BCSC, a subsequent trade in the Securities in or from British Columbia will be a distribution subject to the prospectus and registration requirements of applicable Canadian securities legislation (including the BC Act) unless certain conditions are met, which conditions include, among others, a requirement that any certificate representing the Securities (or ownership statement issued under a direct registration system or other book entry system) bear the restrictive legend (the “BC Legend”) specified in BCI 51-509;

 

	
  

	
(b)

	
the Subscriber is not a resident of British Columbia and undertakes not to trade or resell any of the Securities in or from British Columbia unless the trade or resale is made in accordance with BCI 51-509.  The Subscriber understands and agrees that the Company and others will rely upon the truth and accuracy of these representations and warranties made in this Section 10.3 and agrees that if such representations and warranties are no longer accurate or have been breached, the Subscriber shall immediately notify the Company;

 

	
  

	
(c)

	
by executing and delivering this Agreement and as a consequence of the representations and warranties made by the Subscriber in this Section 10.3, the Subscriber will have directed the Company not to include the BC Legend on any certificates representing the Securities to be issued to the Subscriber. As a consequence, the Subscriber will not be able to rely on the resale provisions of BCI 51-509, and any subsequent trade in any of the Securities in or from British Columbia will be a distribution subject to the prospectus and registration requirements of the BC Act; and

 

	
  

	
(d)

	
if the Subscriber wishes to trade or resell any of the Securities in or from British Columbia, the Subscriber agrees and undertakes to return, prior to any such trade or resale, any certificate representing the Securities to the Company’s transfer agent to have the BC Legend imprinted on such certificate or to instruct the Company’s transfer agent to include the BC Legend on any ownership statement issued under a direct registration system or other book entry system.

 

	
9.

	
Collection of Personal Information

 

9.1           The Subscriber acknowledges and consents to the fact that the Company 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 Company to (a) stock exchanges or securities regulatory authorities, (b) the Company’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 Securities 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 Company in order to comply with the foregoing.

 

9.2           Furthermore, the Subscriber is hereby notified that:

 

	
  

	
(a)

	
the Company may deliver to a provincial securities commission and/or the SEC certain personal information pertaining to the Subscriber, including such Subscriber’s full name, residential address and telephone number, the number of shares or other securities of the Company owned by the Subscriber, the number of Securities purchased by the Subscriber and the total purchase price paid for such Securities, the prospectus exemption relied on by the Company and the date of distribution of the Securities,

 

	
  

	
 

  

9

  

 

	
  

	
(b)

	
such information is being collected indirectly by the provincial securities commission under the authority granted to it in securities legislation, and

 

	
  

	
(c)

	
such information is being collected for the purposes of the administration and enforcement of the securities legislation of Canada.

 

	
10.

	
Costs

 

10.1         The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber (including any fees and disbursements of any special counsel retained by the Subscriber) relating to the purchase of the Securities shall be borne by the Subscriber.

 

	
11.

	
Governing Law

 

11.1          This Subscription Agreement is governed by the laws of the Province of British Columbia.

 

	
12.

	
Currency

 

12.1          Any reference to currency in this Subscription Agreement is to the currency of the United States of America unless otherwise indicated.

 

	
13.

	
Survival

 

13.1          This Subscription Agreement, including without limitation the representations, warranties and covenants contained herein, shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the purchase of the Securities by the Subscriber pursuant hereto.

 

	
14.

	
Assignment

 

14.1          This Subscription Agreement is not transferable or assignable.

 

	
15.

	
Severability

 

15.1          The invalidity or unenforceability of any particular provision of this Subscription Agreement shall not affect or limit the validity or enforceability of the remaining provisions of this Subscription Agreement.

 

	
16.

	
Entire Agreement

 

16.1          Except as expressly provided in this Subscription Agreement and in the agreements, instruments and other documents contemplated or provided for herein, this Subscription Agreement contains the entire agreement between the parties with respect to the sale of the Securities and there are no other terms, conditions, representations or warranties, whether expressed, implied, oral or written, by statute or common law, by the Company or by anyone else.

 

	
17.

	
Notices

 

17.1           Any notice required or permitted to be given to the Company will be in writing and may be given by prepaid registered post, electronic facsimile transmission or other means of electronic communication capable of producing a printed copy to the address of the Company set forth below or such other address as the Company may specify by notice in writing to the Holder, and any such notice will be deemed to have been given and received by the Company to whom it was addressed if mailed, on the third day following the mailing thereof, if by facsimile or other electronic communication, on successful transmission, or, if delivered, on delivery; but if at the time or mailing or between the time of mailing and the third business day thereafter there is a strike, lockout, or other labour disturbance affecting postal service, then the notice will not be effectively given until actually delivered:

 

Kore Nutrition Incorporated

2505 Anthem Village, Suite E-460

Henderson, Nevada 89052

  

10

  

 

Attention: President

Fax No. (604) 687-6314     c/o Virgil Z. Hlus

 

	
18.

	
Counterparts and Electronic Means

 

18.1         This Subscription Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute an original and all of which together shall constitute one instrument.  Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Agreement as of the date hereinafter set forth.

 

IN WITNESS WHEREOF the Subscriber has duly executed this Subscription Agreement as of the date of acceptance by the Company.

 

(Number of Units being purchased)                                        (Name of Subscriber – Please type or print)

 

_____________________________________________

(Total Subscription Price)                                                           (Signature and, if applicable, Office)

 

_____________________________________________

(Address of Subscriber)

 

_____________________________________________

(City, State or Province, Postal Code of Subscriber)

 

_____________________________________________

(Country of Subscriber)

 

_____________________________________________

(Email Address)

 

_____________________________________________

(Telephone Number)

  

11

  

 

A C C E P T A N C E

 

The above-mentioned Subscription Agreement in respect of the Units is hereby accepted by Kore Nutrition Incorporated.

 

DATED at __________________________________, the _______ day of _________________, 2010.

 

KORE NUTRITION INCORPORATED

 

 

 

Per:          _____________________________________ 

Authorized Signatory

  

12

  

 

EXHIBIT A

 

INVESTOR QUESTIONNAIRE

 

All capitalized terms herein, unless otherwise defined, have the meanings ascribed thereto in the Subscription Agreement between Kore Nutrition Incorporated (the “Company”) and the undersigned (the “Subscriber”).

 

The purpose of this Questionnaire is to assure the Company that the Subscriber will meet certain requirements of National Instrument 45-106 (“NI 45-106”).  The Company will rely on the information contained in this Questionnaire for the purposes of such determination.

 

The Subscriber covenants, represents and warrants to the Company that:

 

	
  

	
1.

	
if the Subscriber is not a resident of Ontario, the Subscriber is (tick one or more of the following boxes):

	  o  	
(A)

	
a director, executive officer, founder or control person of the Company or an affiliate of the Company

	  o  	
(B)

	
a spouse, parent, grandparent, brother, sister or child of a director, executive officer, founder or control person of the Company or an affiliate of the Company

	  o  	
(C)

	
a parent, grandparent, brother, sister or child of the spouse of a director, executive officer, founder or control person of the Company or an affiliate of the Company

	  o  	
(D)

	
a close personal friend of a director, executive officer, founder or control person of the Company

	  o  	
(E)

	
a close business associate of a director, executive officer, founder or control person of the Company or an affiliate of the Company

	  o  	
(F)

	
an accredited investor

	  o  	
(G)

	
a company, partnership or other entity of which a majority of the voting securities are beneficially owned by, or a majority of the directors are, persons described in paragraphs A to F

	  o  	
(H)

	
a trust or estate of which all of the beneficiaries or a majority of the trustees or executors are persons described in paragraphs A to F

 

	
  

	
2.

	
if the Subscriber has checked box B, C, D, E, G or H in Section 1 above, the director, executive officer, founder or control person of the Company with whom the undersigned has the relationship is:

 

        

(Instructions to Subscriber: fill in the name of each director, executive officer, founder and control person which you have the above-mentioned relationship with.  If you have checked box G or H, also indicate which of A to F describes the securityholders, directors, trustees or beneficiaries which qualify you as box G or H and provide the names of those individuals.  Please attach a separate page if necessary).

  

13

  

                3.           if the Subscriber is resident in Ontario, the Subscriber is (tick one or more of the following boxes):

 

	  o  	
(A)

	
a founder of the Company

	  o  	
(B)

	
an affiliate of a founder of the Company

	  o  	
(C)

	
a spouse, parent, brother, sister, grandparent or child of an executive officer, director or founder of the Company

	  o  	
(D)

	
a control person of the Company

	  o  	
(E)

	
an accredited investor

 

	
  

	
4.

	
if the Subscriber has checked box C in Section 3 above, the executive officer, director or founder of the Company with whom the undersigned has the relationship is:

 

 

(Instructions to Subscriber:  fill in the name of each executive officer, director or founder which you have the above-mentioned relationship with.)

 

	
  

	
5.

	
if the Subscriber has ticked box F in Section 1 or box E in Section 3 above, the Subscriber satisfies one or more of the categories of “accredited investor” (as that term is defined in NI 45-106) indicated below (please check the appropriate box):

 

	
  

	 o 	
(a) an individual who either alone or with a spouse beneficially owns, directly or indirectly, financial assets (as defined in NI 45-106) having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds CDN$1,000,000;

 

	
  

	 o 	
(b) an individual whose net income before taxes exceeded CDN$200,000 in each of the two more recent calendar years or whose net income before taxes combined with that of a spouse exceeded CDN$300,000 in each of those years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;

 

	
  

	 o 	
(c) an individual who, either alone or with a spouse, has net assets of at least CDN $5,000,000;

 

	
  

	 o 	
(d) a person, other than an individual or investment fund, that had net assets of at least CDN$5,000,000 as reflected on its most recently prepared financial statements.

 

	
  

	 o 	
(e) a person registered under securities legislation of a jurisdiction of Canada as an advisor or dealer, or an individual registered or formerly registered as a representative of such an adviser or dealer, other than a limited market dealer registered under the Securities Act (Ontario) or the Securities Act (Newfoundland);

 

	
  

	 o 	
(f) an investment fund that distributes it securities only to persons that are accredited investors at the time of distribution, a person that acquires or acquired a minimum of CDN$150,000 of value in securities, or a person that acquires or acquired securities under Sections 2.18 or 2.19 of NI 45-106; or

 

	
  

	 o 	
(g) a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law are persons or companies that are accredited investors.

  

14

  

 

	
  

	
The Subscriber acknowledges and agrees that the Subscriber may be required by the Company to provide such additional documentation as may be reasonably required by the Company and its legal counsel in determining the Subscriber’s eligibility to acquire the Securities under relevant legislation.

 

IN WITNESS WHEREOF, the undersigned has executed this Questionnaire as of the ________ day of __________, 2010.

 

	
If an Individual:

	
If a Corporation, Partnership or Other Entity:

	
 

___________________________________

Signature

 

___________________________________

Print or Type Name

 

	
 

__________________________________

Print or Type Name of Entity

 

__________________________________

Signature of Authorized Signatory

 

__________________________________

Type of Entity

 

  

15

  

EXHIBIT B

 

FORM OF WARRANT

 

THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.

UNLESS OTHERWISE PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES 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.

 

Warrant No. ___________

 

THESE WARRANTS WILL EXPIRE AND BECOME NULL AND VOID

AT _____________ (______________ TIME) ON ____________________, 20____.

 

SHARE PURCHASE WARRANTS TO PURCHASE COMMON SHARES OF

 

KORE NUTRITION INCORPORATED

 

THIS IS TO CERTIFY THAT _____________________, (the “Holder”) of ________________, has the right to purchase, upon and subject to the terms and conditions hereinafter referred to, up to _______________ fully paid and non-assessable common shares (the “Shares”) in the capital of Kore Nutrition Incorporated (the “Company”) on or before _______ p.m. (________ time) on ____________________, 20____ (the “Expiry Date”) at a price per Share of US$0.15 (the “Exercise Price”) on the terms and conditions attached hereto as Appendix A (the “Terms and Conditions”).

 

	
  

	
1.

	
ONE (1) WARRANT AND THE EXERCISE PRICE ARE REQUIRED TO PURCHASE ONE SHARE.  THIS CERTIFICATE REPRESENTS __________________ WARRANTS.

 

	
  

	
2.

	
These Warrants are issued subject to the Terms and Conditions, and the Warrant Holder may exercise the right to purchase Shares only in accordance with those Terms and Conditions.

 

	
  

	
3.

	
Nothing contained herein or in the Terms and Conditions will confer any right upon the Holder hereof or any other person to subscribe for or purchase any Shares at any time subsequent to the Expiry Date, and from and after such time, this Warrant and all rights hereunder will be void and of no value.

 

IN WITNESS WHEREOF the Company has executed this Warrant Certificate this ________ day of ___________, 2011.

 

KORE NUTRITION INCORPORATED

 

Per:           _____________________________

Authorized Signatory

  

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APPENDIX A

TERMS AND CONDITIONS dated ________, 2011, attached to the Warrants issued by Kore Nutrition Incorporated.

 

	
1.

	
INTERPRETATION

 

1.1                      Definitions

 

In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith:

 

	
  

	
(a)

	
“Company” means Kore Nutrition Incorporated, until a successor corporation will have become such as a result of consolidation, amalgamation or merger with or into any other corporation or corporations, or as a result of the conveyance or transfer of all or substantially all of the properties and estates of the Company as an entirety to any other corporation and thereafter “Company” will mean such successor corporation;

 

	
  

	
(b)

	
“Company’s Auditors” means an independent firm of accountants duly appointed as auditors of the Company;

 

	
  

	
(c)

	
“Director” means a director of the Company for the time being, and reference, without more, to action by the directors means action by the directors of the Company as a Board, or whenever duly empowered, action by an executive committee of the Board;

 

	
  

	
(d)

	
“herein”, “hereby” and similar expressions refer to these Terms and Conditions as the same may be amended or modified from time to time; and the expression “Article” and “Section,” followed by a number refer to the specified Article or Section of these Terms and Conditions;

 

	
  

	
(e)

	
“person” means an individual, corporation, partnership, trustee or any unincorporated organization and words importing persons have a similar meaning;

 

	
  

	
(f)

	
“shares” means the common shares in the capital of the Company as constituted at the date hereof and any shares resulting from any subdivision or consolidation of the shares;

 

	
  

	
(g)

	
“Warrant Holders” or “Holders” means the holders of the Warrants; and

 

	
  

	
(h)

	
“Warrants” means the warrants of the Company issued and presently authorized and for the time being outstanding.

 

1.2                      Gender

 

Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine and neuter genders.

 

1.3                      Interpretation not affected by Headings

 

The division of these Terms and Conditions into Articles and Sections, and the insertion of headings are for convenience of reference only and will not affect the construction or interpretation thereof.

 

1.4                      Applicable Law

 

The Warrant and the terms hereof are governed by the laws of the Province of British Columbia.  The Holder, in its personal or corporate capacity and, if applicable, on behalf of each beneficial purchaser for whom it is acting, irrevocably attorns to the jurisdiction of the courts of the Province of British Columbia.

  

17

  

ISSUE OF WARRANTS

 

1.5                      Additional Warrants

 

The Company may at any time and from time to time issue additional warrants or grant options or similar rights to purchase shares of its capital stock.

 

1.6                      Warrants to Rank Pari Passu

 

All Warrants and additional warrants, options or similar rights to purchase shares from time to time issued or granted by the Company, will rank pari passu whatever may be the actual dates of issue or grant thereof, or of the dates of the certificates by which they are evidenced.

 

1.7                      Issue in substitution for Lost Warrants

 

	
  

	
(a)

	
In case a Warrant becomes mutilated, lost, destroyed or stolen, the Company, at its sole discretion, may issue and deliver a new Warrant of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for and in place of and upon cancellation of such mutilated Warrant, or in lieu of, and in substitution for such lost, destroyed or stolen Warrant and the substituted Warrant will be entitled to the benefit hereof and rank equally in accordance with its terms with all other Warrants issued or to be issued by the Company.

 

	
  

	
(b)

	
The applicant for the issue of a new Warrant pursuant hereto will bear the cost of the issue thereof and in case of loss, destruction or theft furnish to the Company such evidence of ownership and of loss, destruction, or theft of the Warrant so lost, destroyed or stolen as will be satisfactory to the Company in its discretion and such applicant may also be required to furnish indemnity in amount and form satisfactory to the Company in its sole discretion, and will pay the reasonable charges of the Company in connection therewith.

 

1.8                      Warrant Holder Not a Shareholder

 

The holding of a Warrant will not constitute the Holder thereof as a shareholder of the Company, nor entitle him to any right or interest in respect thereof except as in the Warrant expressly provided.

 

	
2.

	
NOTICE

 

2.1                      Notice to Warrant Holders

 

Any notice required or permitted to be given to the Holders will be in writing and may be given by prepaid registered post, electronic facsimile transmission or other means of electronic communication capable of producing a printed copy to the address of the Holder appearing on the Holder’s Warrant or to such other address as any Holder may specify by notice in writing to the Company, and any such notice will be deemed to have been given and received by the Holder to whom it was addressed if mailed, on the third day following the mailing thereof, if by facsimile or other electronic communication, on successful transmission, or, if delivered, on delivery; but if at the time or mailing or between the time of mailing and the third business day thereafter there is a strike, lockout, or other labour disturbance affecting postal service, then the notice will not be effectively given until actually delivered.

 

2.2                      Notice to the Company

 

Any notice required or permitted to be given to the Company will be in writing and may be given by prepaid registered post, electronic facsimile transmission or other means of electronic communication capable of producing a printed copy to the address of the Company set forth below or such other address as the Company may specify by notice in writing to the Holder, and any such notice will be deemed to have been given and received by the

  

18

  

Company to whom it was addressed if mailed, on the third day following the mailing thereof, if by facsimile or other electronic communication, on successful transmission, or, if delivered, on delivery; but if at the time or mailing or between the time of mailing and the third business day thereafter there is a strike, lockout, or other labour disturbance affecting postal service, then the notice will not be effectively given until actually delivered:

 

Kore Nutrition Incorporated

2505 Anthem Village, Suite E-460

Henderson, Nevada 89052

 

Attention: President

Fax No. (604) 687-6314     c/o Virgil Z. Hlus

 

	
3.

	
EXERCISE OF WARRANTS

 

3.1                      Method of Exercise of Warrants

 

The right to purchase shares conferred by the Warrants may be exercised by the Holder surrendering the Warrant Certificate representing same, with a duly completed and executed subscription in the form attached hereto and a bank draft or certified cheque payable to the Company for the purchase price applicable at the time of surrender in respect of the shares subscribed for in lawful money of the United States of America, to the Company at the address set forth in, or from time to time specified by the Company pursuant to, Section 3.2.

 

3.2                      Effect of Exercise of Warrants

 

	
  

	
(a)

	
Upon surrender and payment as aforesaid the shares so subscribed for will be deemed to have been issued and such person or persons will be deemed to have become the Holder or Holders of record of such shares on the date of such surrender and payment, and such shares will be issued at the subscription price in effect on the date of such surrender and payment.

 

	
  

	
(b)

	
Within ten business days after surrender and payment as aforesaid, the Company will forthwith cause to be delivered to the person or persons in whose name or names the shares so subscribed for are to be issued as specified in such subscription or mailed to him or them at his or their respective addresses specified in such subscription, a certificate or certificates for the appropriate number of shares not exceeding those which the Warrant Holder is entitled to purchase pursuant to the Warrant surrendered.

 

3.3                      Subscription for Less Than Entitlement

 

The Holder of any Warrant may subscribe for and purchase a number of shares less than the number which he is entitled to purchase pursuant to the surrendered Warrant. In the event of any purchase of a number of shares less than the number which can be purchased pursuant to a Warrant, the Holder thereof upon exercise thereof will in addition be entitled to receive a new Warrant in respect of the balance of the shares which he was entitled to purchase pursuant to the surrendered Warrant and which were not then purchased.

 

3.4                      Warrants for Fractions of Shares

 

To the extent that the Holder of any Warrant is entitled to receive on the exercise or partial exercise thereof a fraction of a share, such right may be exercised in respect of such fraction only in combination with another Warrant or other Warrants which in the aggregate entitle the Holder to receive a whole number of such shares.

 

3.5                      Expiration of Warrants

 

After the expiration of the period within which a Warrant is exercisable, all rights thereunder will wholly cease and terminate and such Warrant will be void and of no effect.

  

19

  

 

Time of Essence

 

Time will be of the essence hereof.

 

3.6                      Subscription Price

 

Each Warrant is exercisable at a price per share (the “Exercise Price”) of US$0.15.  One (1) Warrant and the Exercise Price are required to subscribe for each share during the term of the Warrants.

 

3.7                      Adjustment of Exercise Price

 

	
  

	
(a)

	
The Exercise Price and the number of shares deliverable upon the exercise of the Warrants will be subject to adjustment in the event and in the manner following:

 

	
  

	
(i)

	
if and whenever the shares at any time outstanding are subdivided into a greater or consolidated into a lesser number of shares the Exercise Price will be decreased or increased proportionately as the case may be; upon any such subdivision or consolidation the number of shares deliverable upon the exercise of the Warrants will be increased or decreased proportionately as the case may be;

 

	
  

	
(ii)

	
in case of any capital reorganization or of any reclassification of the capital of the Company or in the case of the consolidation, merger or amalgamation of the Company with or into any other Company (hereinafter collectively referred to as a “Reorganization”), each Warrant will after such Reorganization confer the right to purchase the number of shares or other securities of the Company (or of the Company’s resulting from such Reorganization) which the Warrant Holder would have been entitled to upon Reorganization if the Warrant Holder had been a shareholder at the time of such Reorganization.

 

In any such case, if necessary, appropriate adjustments will be made in the application of the provisions of this Section 4.8 relating to the rights and interest thereafter of the Holders of the Warrants so that the provisions of this Section 4.8 will be made applicable as nearly as reasonably possible to any shares or other securities deliverable after the Reorganization on the exercise of the Warrants.

 

The subdivision or consolidation of shares at any time outstanding into a greater or lesser number of shares (whether with or without par value) will not be deemed to be a Reorganization for the purposes of this clause 4.8(a)(ii).

 

	
  

	
(b)

	
The adjustments provided for in this Section 4.8 are cumulative and will become effective immediately after the record date or, if no record date is fixed, the effective date of the event which results in such adjustments.

 

3.8                      Determination of Adjustments

 

If any questions will at any time arise with respect to the Exercise Price or any adjustment provided for in Section 4.8, such questions will be conclusively determined by the Company’s Auditors, or, if they decline to so act any other firm of certified public accountants in the United States of America or chartered accountants in Canada that the Company may designate and who will have access to all appropriate records and such determination will be binding upon the Company and the Holders of the Warrants.

  

20

  

 

WAIVER OF CERTAIN RIGHTS

 

3.9                      Immunity of Shareholders, etc.

 

The Warrant Holder, as part of the consideration for the issue of the Warrants, waives and will not have any right, cause of action or remedy now or hereafter existing in any jurisdiction against any past, present or future incorporator, shareholder, Director or officer (as such) of the Company for the issue of shares pursuant to any Warrant or on any covenant, agreement, representation or warranty by the Company herein contained or in the Warrant.

 

	
4.

	
MODIFICATION OF TERMS, ETC.

 

4.1                      Modification of Terms and Conditions for Certain Purposes

 

From time to time the Company may, subject to the provisions of these presents, modify the Terms and Conditions hereof, for the purpose of correction or rectification of any ambiguities, defective provisions, errors or omissions herein.

 

	
5.

	
WARRANTS NOT TRANSFERABLE

 

The Warrant and all rights attached to it are not transferable.

 

DATED as of the date first above written in these Terms and Conditions.

 

KORE NUTRITION INCORPORATED

 

 

Per:           

Authorized Signatory

 

  

21

  

FORM OF SUBSCRIPTION

 

	
TO:

	
Kore Nutrition Incorporated

2505 Anthem Village, Suite E-460

Henderson, Nevada 89052

 

Attention: President

Fax No. (604) 687-6314     c/o Virgil Z. Hlus

 

The undersigned Holder of the within Warrants hereby subscribes for ____________ common shares (the “Shares”) of Kore Nutrition Incorporated (the “Company”) pursuant to the within Warrants at US$0.15 per Share on the terms specified in the said Warrants.  This subscription is accompanied by a certified cheque or bank draft payable to or to the order of the Company for the whole amount of the purchase price of the Shares.

 

The undersigned represents that, at the time of the exercise of these Warrants, all of the representations and warranties contained in subsections 6.1 and 10.3 of the Subscription Agreement between the Company and the undersigned pursuant to which these Warrants were issued are true and accurate.

 

The undersigned hereby directs that the Shares be registered as follows:

	
NAME(S) IN FULL

	  	
ADDRESS(ES)

	  	
NUMBER OF SHARES

	  	  	  	  	  
	  	  	  	  	  
	  	  	
TOTAL:

	  	  

 

(Please print full name in which share certificates are to be issued, stating whether Mr., Mrs. or Miss is applicable).

 

DATED this ________  day of __________________ , ______.

 

In the presence of:

 

Signature of Witness                                                                           Signature of Warrant Holder

 

Please print below your name and address in full.

 

Name (Mr./Mrs./Miss)                                                                                                                     

 

Address                                

 

 

INSTRUCTIONS FOR SUBSCRIPTION

 

The signature to the subscription must correspond in every particular with the name written upon the face of the Warrant without alteration or enlargement or any change whatever.  If there is more than one subscriber, all must sign.  In the case of persons signing by agent or attorney or by personal representative(s), the authority of such agent, attorney or representative(s) to sign must be proven to the satisfaction of the Company.  If the Warrant certificate and the form of subscription are being forwarded by mail, registered mail must be employed.

  

22

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