Document:

Exhibit 10.8

 

LOXO ONCOLOGY, INC.

 

FOUNDER’S RESTRICTED STOCK PURCHASE AGREEMENT

 

This Agreement is made and entered into as of June 28, 2013 (the “Effective Date”) by and between Loxo Oncology, Inc. (the “Company”), a Delaware corporation, and Joshua H. Bilenker (the “Purchaser”).

 

1.                                      PURCHASE OF SHARES.  On the Effective Date and subject to the terms and conditions of this Agreement, Purchaser hereby purchases from the Company, and Company hereby sells to Purchaser, an aggregate of Two Hundred Fifty Thousand (250,000) shares of the Company’s Common Stock, $0.0001 par value per share (the “Shares”), at an aggregate purchase price of Two Hundred Fifty Dollars and No Cents ($250.00) (the “Purchase Price”) or $0.001 per Share (the “Purchase Price Per Share”).  As used in this Agreement, the term “Shares” refers to the Shares purchased under this Agreement and includes all securities received (a) in substitution of the Shares, (b) as a result of stock dividends or stock splits with respect to the Shares, and (c) in replacement of the Shares in a merger, recapitalization, reorganization or similar corporate transaction.

 

2.                                      PAYMENT OF PURCHASE PRICE; CLOSING.

 

2.1                                     Deliveries by Purchaser.  Purchaser hereby delivers to the Company:  (a) a duly executed copy of this Agreement, (b) two (2) copies of a blank Stock Power and Assignment Separate from Stock Certificate in the form of Exhibit 1 attached hereto (the “Stock Powers”), both executed by Purchaser (and Purchaser’s spouse, if any), and (c) payment of the Purchase Price by check in the amount of $250.00, a copy of which is attached hereto as Exhibit 2.

 

2.2                                     Deliveries by the Company.  Upon its receipt of the entire Purchase Price and all the documents to be executed and delivered by Purchaser to the Company under Section 2.1, the Company will issue a duly executed stock certificate evidencing the Shares in the name of Purchaser, registered in Purchaser’s name, with such certificate to be placed in escrow as provided in Section 7 until expiration or termination of the Company’s Right of First Refusal described in Section 5.

 

3.                                      REPRESENTATIONS AND WARRANTIES OF PURCHASER.  Purchaser hereby represents and warrants to the Company as follows.

 

3.1                                     Purchase for Own Account for Investment.  Purchaser is purchasing the Shares for Purchaser’s own account for investment purposes only and not with a view to, or for sale in connection with, a distribution of the Shares within the meaning of the Securities Act of 1933, as amended (the “1933 Act”).  Purchaser has no present intention of selling or otherwise disposing of all or any portion of the Shares and no one other than Purchaser has any beneficial ownership of any of the Shares.

 

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3.2                                     Access to Information.  Purchaser has had access to all information regarding the Company and its present and prospective business, assets, liabilities and financial condition that Purchaser reasonably considers important in making the decision to purchase the Shares, and Purchaser has had ample opportunity to ask questions of the Company’s representatives concerning such matters and this investment.

 

3.3                                     Understanding of Risks.  Purchaser is a founder of the Company and is fully aware of:  (a) the highly speculative nature of the investment in the Shares; (b) the financial hazards involved; (c) the lack of liquidity of the Shares and the restrictions on transferability of the Shares (e.g., that Purchaser may not be able to sell or dispose of the Shares or use them as collateral for loans); (d) the qualifications and backgrounds of the management of the Company; and (e) the tax consequences of investment in the Shares.

 

3.4                                     Purchaser’s Qualifications.  Purchaser has a preexisting personal or business relationship with the Company and/or certain of its officers and/or directors of a nature and duration sufficient to make Purchaser aware of the character, business acumen and general business and financial circumstances of the Company and/or such officers and directors.  By reason of Purchaser’s business or financial experience, Purchaser is capable of evaluating the merits and risks of this investment, has the ability to protect Purchaser’s own interests in this transaction and is financially capable of bearing a total loss of this investment.

 

3.5                                     No General Solicitation.  At no time was Purchaser presented with or solicited by any publicly issued or circulated newspaper, mail, radio, television or other form of general advertising or solicitation in connection with the offer, sale and purchase of the Shares.

 

3.6                                     Compliance with Securities Laws.  Purchaser understands and acknowledges that, in reliance upon the representations and warranties made by Purchaser herein, the Shares are not being registered with the Securities and Exchange Commission (“SEC”) under the 1933 Act or being qualified under the California Corporate Securities Law of 1968, as amended (the “Law”), but instead are being issued under an exemption or exemptions from the registration and qualification requirements of the 1933 Act and the Law or other applicable state securities laws which impose certain restrictions on Purchaser’s ability to transfer the Shares.

 

3.7                                     Restrictions on Transfer.  Purchaser understands that Purchaser may not transfer any Shares unless such Shares are registered under the 1933 Act and qualified under the Law or other applicable state securities laws or unless, in the opinion of counsel to the Company, exemptions from such registration and qualification requirements are available.  Purchaser understands that only the Company may file a registration statement with the SEC or the California Commissioner of Corporations or other applicable state securities commissioners and that the Company is under no obligation to do so with respect to the Shares.  Purchaser has also been advised that exemptions from registration and qualification may not be available or may not permit Purchaser to transfer all or any of the Shares in the amounts or at the times proposed by Purchaser.

 

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3.8                                     Rule 144.  In addition, Purchaser has been advised that SEC Rule 144 promulgated under the 1933 Act, which permits certain limited sales of unregistered securities, is not presently available with respect to the Shares and, in any event, requires that the Shares be held for a minimum of six months, and in certain cases one year, after they have been purchased and paid for (within the meaning of Rule 144), before they may be resold under Rule 144.  Purchaser understands that Rule 144 may indefinitely restrict transfer of the Shares so long as Purchaser remains an “affiliate” of the Company and certain information about the Company (as defined in Rule 144) is not publicly available.

 

4.                                      MARKET STANDOFF AGREEMENT.  Purchaser agrees in connection with any registration of the Company’s securities under the 1933 Act that, upon the request of the Company or the underwriters managing any registered public offering of the Company’s securities, Purchaser will not sell or otherwise dispose of any Shares without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days) after the effective date of such registration requested by such managing underwriters and subject to all restrictions as the Company or the managing underwriters may specify for employee-shareholders generally.  Purchaser further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing and that such underwriters are express third party beneficiaries of this Section 4.

 

5.                                      RIGHT OF FIRST REFUSAL.  Before any Shares held by Purchaser or any transferee of such Shares (either sometimes referred to herein as the “Holder”) may be sold or otherwise transferred (including without limitation a transfer by gift or operation of law), the Company and/or its assignee(s) will have a right of first refusal to purchase the Shares to be sold or transferred (the “Offered Shares”) on the terms and conditions set forth in this Section (the “Right of First Refusal”).

 

5.1                                     Notice of Proposed Transfer.  The Holder of the Offered Shares will deliver to the Company a written notice (the “Notice”) stating:  (a) the Holder’s bona fide intention to sell or otherwise transfer the Offered Shares; (b) the name and address of each proposed purchaser or other transferee (the “Proposed Transferee”); (c) the number of Offered Shares to be transferred to each Proposed Transferee; (d) the bona fide cash price or other consideration for which the Holder proposes to transfer the Offered Shares (the “Offered Price”); and (e) that the Holder acknowledges this Notice is an offer to sell the Offered Shares to the Company and/or its assignee(s) pursuant to the Company’s Right of First Refusal at the Offered Price as provided for in this Agreement.

 

5.2                                     Exercise of Right of First Refusal.  At any time within thirty (30) days after the date of the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all (or, with the consent of the Holder, less than all) the Offered Shares proposed to be transferred to any one or more of the Proposed Transferees named in the Notice, at the purchase price determined in accordance with Section 5.3 below.

 

5.3                                     Purchase Price.  The purchase price for the Offered Shares purchased under this Section will be the Offered Price, provided that if the Offered Price consists of no legal consideration (as, for example, in the case of a transfer by gift), the purchase price will be

 

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the fair market value of the Offered Shares as determined in good faith by the Company’s Board of Directors.  If the Offered Price includes consideration other than cash, then the value of the non-cash consideration, as determined in good faith by the Company’s Board of Directors, will conclusively be deemed to be the cash equivalent value of such non-cash consideration.

 

5.4                                     Payment.  Payment of the purchase price for the Offered Shares will be payable, at the option of the Company and/or its assignee(s) (as applicable), by check or by cancellation of all or a portion of any outstanding indebtedness owed by the Holder to the Company (or to such assignee, in the case of a purchase of Offered Shares by such assignee) or by any combination thereof.  The purchase price will be paid without interest within sixty (60) days after the Company’s receipt of the Notice, or, at the option of the Company and/or its assignee(s), in the manner and at the time(s) set forth in the Notice.

 

5.5                                     Holder’s Right to Transfer.  If all of the Offered Shares proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Offered Shares to each Proposed Transferee at the Offered Price or at a higher price, provided that (a) such sale or other transfer is consummated within one hundred twenty (120) days after the date of the Notice, (b) any such sale or other transfer is effected in compliance with all applicable securities laws, and (c) each Proposed Transferee agrees in writing that the provisions of this Section will continue to apply to the Offered Shares in the hands of such Proposed Transferee.  If the Offered Shares described in the Notice are not transferred to each Proposed Transferee within such one hundred twenty (120) day period, then a new Notice must be given to the Company, pursuant to which the Company will again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred.

 

5.6                                     Exempt Transfers.  Notwithstanding anything to the contrary in this Section, the following transfers of Shares will be exempt from the Right of First Refusal: (a) the transfer of any or all of the Shares during Purchaser’s lifetime by gift or on Purchaser’s death by will or intestacy to Purchaser’s “Immediate Family” (as defined below) or to a trust for the benefit of Purchaser or Purchaser’s Immediate Family, provided that each transferee or other recipient agrees in a writing satisfactory to the Company that the provisions of this Section will continue to apply to the transferred Shares in the hands of such transferee or other recipient; (b) except as provided in Section 5.7 clause (b) below, any transfer or conversion of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations; or (c) any transfer of Shares pursuant to the winding up and dissolution of the Company.  As used herein, the term “Immediate Family” will mean Purchaser’s spouse or Spousal Equivalent, the lineal descendant or antecedent, brother or sister, of Purchaser or Purchaser’s spouse or Spousal Equivalent, or the spouse or Spousal Equivalent, of any lineal descendant or antecedent, brother or sister of Purchaser, or Purchaser’s spouse or Spousal Equivalent, whether or not any of the above are adopted.  As used herein, a person is deemed to be a “Spousal Equivalent” if the relevant person and the related party are registered as “domestic partners” under the laws of the State of California or any other law having similar effect or provided the following circumstances are true:  (a) irrespective of whether or not the relevant person and the Spousal Equivalent are the same sex, they are the sole spousal equivalent of the other for the last twelve (12) months, (b) they intend to remain so indefinitely, (c) neither

 

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are married to anyone else, (d) both are at least eighteen (18) years of age and mentally competent to consent to contract, (e) they are not related by blood to a degree of closeness that which would prohibit legal marriage in the state in which they legally reside, (f) they are jointly responsible for each other’s common welfare and financial obligations, and (g) they reside together in the same residence for the last twelve (12) months and intend to do so indefinitely.

 

5.7                                     Termination of Right of First Refusal.  The Right of First Refusal will terminate as to all Shares (a) on the effective date of the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the SEC under the 1933 Act (other than a registration statement relating solely to the issuance of Common Stock pursuant to a business combination or an employee incentive or benefit plan) or (b) on any transfer or conversion of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations if the common stock of the surviving corporation or any direct or indirect parent corporation thereof is registered under the Securities Exchange Act of 1934, as amended.

 

6.                                      RIGHTS AS OWNER OF SHARES.

 

6.1                                     Encumbrances on Shares.  Purchaser may grant a lien or security interest in, or pledge, hypothecate or encumber Shares only if each party to whom such lien or security interest is granted, or to whom such pledge, hypothecation or other encumbrance is made, agrees in a writing satisfactory to the Company that:  (a) such lien, security interest, pledge, hypothecation or encumbrance will not apply to such Shares after they are acquired by the Company and/or its assignees under this Section; and (b) the provisions of this Section will continue to apply to such Shares in the hands of such party and any transferee of such party.

 

6.2                                     Encumbrance on Shares.  Subject to the terms and conditions of this Agreement, Purchaser will have all of the rights to the Shares from and after the date that Purchaser delivers payment of the Purchase Price until such time as Purchaser disposes of the Shares or the Company and/or its assignee(s) exercise(s) the Right of First Refusal.  Upon an exercise of the Right of First Refusal, Purchaser will have no further rights as a holder of the Shares so purchased upon such exercise, except the right to receive payment for the Shares so purchased in accordance with the provisions of this Agreement, and Purchaser will promptly surrender the stock certificate(s) evidencing the Shares so purchased to the Company for transfer or cancellation.

 

7.                                      ESCROW.  As security for Purchaser’s faithful performance of this Agreement, Purchaser agrees, immediately upon receipt of the stock certificate(s) evidencing the Shares, to deliver such certificate(s), together with the Stock Powers executed by Purchaser and by Purchaser’s spouse, if any (with the date, transferee, stock certificate number and number of Shares left blank), to the Secretary of the Company or other designee of the Company (the “Escrow Holder”), who is hereby appointed to hold such certificate(s) and Stock Powers in escrow and to take all such actions and to effectuate all such transfers and/or releases of such Shares as are in accordance with the terms of this Agreement.  Escrow Holder will act solely for the Company as its agent and not as a fiduciary.  Purchaser and the Company agree that Escrow Holder will not be liable to any party to this Agreement (or to any other party) for any actions or

 

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omissions unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of Escrow Holder under this Agreement.  Escrow Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely on the advice of counsel and obey any order of any court with respect to the transactions contemplated by this Agreement.  The Shares will be released from escrow upon termination of the Right of First Refusal.

 

8.                                      TAX CONSEQUENCES.  PURCHASER UNDERSTANDS THAT PURCHASER MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF PURCHASER’S PURCHASE OR DISPOSITION OF THE SHARES.  PURCHASER REPRESENTS (a) THAT PURCHASER HAS CONSULTED WITH A TAX ADVISER THAT PURCHASER DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND (b) THAT PURCHASER IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE.  represents that Purchaser has consulted any tax advisors Purchaser deems advisable in connection with Purchaser’s purchase of the Shares.

 

9.                                      RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

 

9.1                                     Legends.  Purchaser understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s) evidencing the Shares, together with any other legends that may be required by state or federal securities laws, the Company’s Certificate of Incorporation or Bylaws, any other agreement between Purchaser and the Company or any third party:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND TRANSFER, INCLUDING THE RIGHT OF FIRST REFUSAL HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S), AND A MARKET STANDOFF RESTRICTION, AS SET FORTH IN A FOUNDER’S RESTRICTED STOCK PURCHASE AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE

 

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PRINCIPAL OFFICE OF THE ISSUER.  SUCH PUBLIC SALE AND TRANSFER RESTRICTIONS, INCLUDING THE RIGHT OF FIRST REFUSAL, AND THE MARKET STANDOFF RESTRICTION, ARE BINDING ON TRANSFEREES OF THESE SHARES.

 

9.2                                     Stop-Transfer Instructions.  Purchaser agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.  The Company will not be required (a) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (b) to treat as owner of such Shares, or to accord the right to vote or pay dividends, to any purchaser or other transferee to whom such Shares have been so transferred.

 

10.                               COMPLIANCE WITH LAWS AND REGULATIONS.  The issuance and transfer of the Shares will be subject to and conditioned upon compliance by the Company and Purchaser with all applicable state and federal laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s Common Stock may be listed or quoted at the time of such issuance or transfer.

 

11.                               GENERAL PROVISIONS.

 

11.1                        Notices.  Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following:  (a) at the time of personal delivery, if delivery is in person; (b) one (1) business day after deposit with an express overnight courier for United States deliveries, or two (2) business days after such deposit for deliveries outside of the United States; or (c) three (3) business days after deposit in the United States mail by certified mail (return receipt requested) for United States deliveries.  All notices for delivery outside the United States will be sent by express courier.  All notices not delivered personally will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address set forth below the signature lines of this Agreement or at such other address as such other party may designate by one of the indicated means of notice herein to the other party hereto.  A “business day” shall be a day, other than Saturday or Sunday, when the banks in the city of San Francisco are open for business.

 

11.2                        Further Assurances.  The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement.

 

11.3                        Titles and Headings.  The titles, captions and headings of this Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Agreement.  Unless otherwise specifically stated, all references herein to “sections” and “exhibits” will mean “sections” and “exhibits” to this Agreement.

 

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11.4                        Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of California, without giving effect to that body of laws pertaining to conflict of laws.

 

11.5                        Assignments; Successors and Assigns.  The Company may assign any of its rights and obligations under this Agreement, including but not limited to its right to repurchase Shares under the Right of First Refusal.  Any assignment of rights and obligations by any other party to this Agreement requires the Company’s prior written consent.  This Agreement, and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives.

 

11.6                        Entire Agreement.  This Agreement and the documents referred to herein constitute the entire agreement and understanding of the parties with respect to the subject matter of this Agreement, and supersede all prior understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof.

 

11.7                        Amendment and Waivers.  This Agreement may be amended only by a written agreement executed by each of the parties hereto.  No amendment of or waiver of, or modification of any obligation under this Agreement will be enforceable unless set forth in a writing signed by the party against which enforcement is sought.  Any amendment effected in accordance with this section will be binding upon all parties hereto and each of their respective successors and assigns.  No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance.  No waiver granted under this Agreement as to any one provision herein shall constitute a subsequent waiver of such provision or of any other provision herein, nor shall it constitute the waiver of any performance other than the actual performance specifically waived.

 

11.8                        Severability.  If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto.  If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in this Agreement.  Notwithstanding the forgoing, if the value of this Agreement based upon the substantial benefit of the bargain for any party is materially impaired, which determination as made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.

 

11.9                        Counterparts; Facsimile Signatures.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement.  This Agreement may be executed and delivered by facsimile and upon such delivery the facsimile signature will be deemed to have the same effect as if the original signature had been delivered to the other party.

 

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[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the Company has caused this Founder’s Restricted Stock Purchase Agreement to be executed by its duly authorized representative and Purchaser has executed this Agreement, each as of the Effective Date.

 

	
“COMPANY”

 

LOXO   ONCOLOGY, INC.
    	
 
    	
“PURCHASER”

 

JOSHUA H. BILENKER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Joshua H. Bilenker
    	
 
    	
By:
    	
/s/ Joshua H. Bilenker
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Joshua H. Bilenker
    	
 
    	
Address:
    	
888 7th Avenue
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
CEO
    	
 
    	
30th Floor
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
888 7th Avenue, 30th Floor
    	
 
    	
New York, NY 10106
    
	
 
    	
 
    	
 
    	
 
    
	
New York, NY 10106
    	
 
    	
 
    

 

 

Exhibit 1:              Stock Power and Assignment

Exhibit 2:              Copy of Purchaser’s Check

 

[SIGNATURE PAGE TO FOUNDER’S RESTRICTED STOCK PURCHASE AGREEMENT]

 

 

EXHIBIT 1

 

STOCK POWER AND ASSIGNMENT

 

SEPARATE FROM STOCK CERTIFICATE

 

 

STOCK POWER AND ASSIGNMENT

 

SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED and pursuant to that certain Founder’s Restricted Stock Purchase Agreement dated as of June 24, 2013 (the “Agreement”), the undersigned hereby sells, assigns and transfers unto                                                             ,                      shares of the Common Stock, $0.0001 par value per share, of Loxo Oncology, Inc., a Delaware corporation (the “Company”), standing in the undersigned’s name on the books of the Company represented by Certificate No(s).          delivered herewith, and does hereby irrevocably constitute and appoint the Secretary of the Company as the undersigned’s attorney-in-fact, with full power of substitution, to transfer said stock on the books of the Company.  THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT AND ANY EXHIBITS THERETO.

 

 

	
Dated:
    	
6/24/13
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
PURCHASER
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
/s/ Joshua H. Bilenker
    
	
 
    	
 
    	
 
    	
(Signature)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Joshua H. Bilenker
    
	
 
    	
 
    	
 
    	
(Please Print Name)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(Spouse’s Signature, if any)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(Please Print Spouse’s Name)
    

 

Instructions to Purchaser:  Please do not fill in any blanks other than the signature line.  The purpose of this Stock Power and Assignment is to enable the Company and/or its assignee(s) to acquire the shares upon exercise of its “Right of First Refusal” set forth in the Agreement without requiring additional signatures on the part of the Purchaser or Purchaser’s Spouse, if any.

 

 

EXHIBIT 2

 

COPY OF PURCHASER’S CHECKLake Victoria Mining Company, Inc.: Exhibit 10.40 - Filed by newsfilecorp.com

LAKE VICTORIA RESOURCES (T) LTD.
a subsidiary of
Lake Victoria Mining Company, Inc. 

FORWARD GOLD PURCHASE
AGREEMENT 

INSTRUCTIONS TO PURCHASER 

	1. 	
      All purchasers must complete all the information in the
      boxes on page 2 and sign where indicated with an “X”.

	 	 
	2. 	
      If you are paying for your gold purchase with funds drawn
      from a Canadian bank, you may pay by certified cheque or bank draft drawn
      on a Canadian chartered bank.

	 	 
	3. 	
      If you are paying for your Gold Purchase with funds drawn
      on any source other than a Canadian chartered bank, you may only pay by
      wire transfer to our company pursuant to the wiring instructions to be
      provided by our company upon request or with your purchase
  invoice.

LAKE VICTORIA RESOURCES (T) LTD. 

A SUBSIDIARY OF LAKE VICTORIA MINING COMPANY, INC. 

FORWARD GOLD PURCHASE AGREEMENT 

The undersigned (the “Purchaser”) hereby irrevocably
subscribes for and agrees to purchase from LAKE VICTORIA RESOURCES (T) LTD. (the
“Seller”), a subsidiary of Lake Victoria Mining Company, Inc., that
amount of forward gold production of the Seller as represented below at a price
of US$____________per ounce of gold. The Purchaser agrees to be bound by the
terms and conditions set forth in this Forward Gold Purchase Agreement, the
“Terms and Conditions” and Schedule A “Security of Forward Gold Purchase
Agreement” all of which are attached hereto and form part of this Forward Gold
Purchase Agreement. 

	Purchaser
      Information 

    

 
	(Name of Purchaser)
    

 
	Account Reference (if applicable):
    

    

 
	X 
	(Signature of Purchaser – if the Purchaser is an
      Individual) 

    

 
	X 
	(Signature of
      Authorized Signatory – if the Purchaser is not an Individual) 

    

 
	(Name and Title of Authorized Signatory – if the Purchaser
      is not an 
	Individual)
    

    

 
	(SIN, SSN, or
      other Tax Identification Number of the Purchaser) 

    

 
	(Purchaser’s
      Street Address) 

    

 
	(Purchaser’s City
      and State ) 

    

 
	(Purchaser’s
      Country and Postal Code) 

    

 
	(Telephone Number)
    

    

 
	(Email Address) 

	Ounces to be Purchased
    

 	  
	Total Number of Ounces:
                                           X $               
    

    

 	 
	Description:
    _____________________________________	 
    
	 
    

 	  
	Aggregate
      Purchase Price: 	 
    
	             
                         
                  (the “Purchase Amount”,
      plus wire fees if applicable) 

 

	Please complete if purchasing as agent or trustee for a
      principal (beneficial purchaser) (a “Disclosed Principal”) and not
      purchasing as trustee or agent for accounts fully managed by it. 

    

 
	(Name of Disclosed
      Principal) 

    

 
	(Address of
      Disclosed Principal) 

    

 
	(Account
      Reference, if applicable) 

    

 
	(SIN, SSN, or other Tax Identification Number of Disclosed
      Principal) 

 
	Deliver the
      Gold as set forth below: Gold cannot be delivered to a P.O. Box 

    

 
	(Attention – Full
      Name) 

    

 
	(Street Address)
    

    

 
	(City and State )
    

    

 
	(Country and
      Postal Code) 

    

 
	(Telephone Number)
    

    

 

The Seller shall distribute _________________(_____) ounces of
..999 gold during the calendar months listed, for a total of
________________(_____) ounces of .999 gold, as per the following monthly
amounts: 

	(i) 	
      ____________(____) ounces of .999 gold within the
      calendar month of _______________, 201__; and

	 	 
	(ii) 	
      ____________(____) ounces of .999 gold within the
      calendar month of _______________, 201__; and

	 	 
	(iii) 	
      ____________(____) ounces of .999 gold within the
      calendar month of _______________, 201__; and

	 	 
	(iv) 	
      ____________(____) ounces of .999 gold within the
      calendar month of _______________, 201__.

TERMS AND CONDITIONS OF FORWARD GOLD PURCHASE
AGREEMENT

1.                 
Subscription 

1.1                 
On the basis of the representations and warranties and subject to the terms and
conditions set forth herein, the Purchaser hereby irrevocably subscribes for and
agrees to purchase Forward Gold Production of the Seller at a price per ounce of
gold (such subscription and agreement to purchase being the “Aggregate
Purchase”), and Aggregate Purchase Price shown on page 2 of the Forward Gold
Purchase Agreement (the “Agreement”), which is tendered herewith, on the
basis of the representations and warranties and subject to the terms and
conditions set forth in this Terms and Conditions of Forward Gold Purchase
Agreement. 

1.2                 
The Seller hereby agrees to forward sell the gold to the Purchaser on the basis
of the representations and warranties and subject to the terms and conditions
set forth in this Agreement. Subject to the terms of this Agreement, this
Agreement will be effective upon its acceptance by the Seller. 

1.3                 
The Purchaser acknowledges that the gold has been offered as part of an offer by
the Seller to other Purchasers for such other number of ounces of gold as may be
determined by the board of directors of the Seller in its sole discretion (the
“Offering”). 

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

2.                 
Payment 

2.1                 
The Purchase Amount must be received within five (5) business days of your
purchase order and shall be paid by: (i) if the Purchaser is drawing funds from
a Canadian bank to pay for this Agreement, a certified cheque or bank draft
drawn on a US dollar account with a Canadian chartered bank; or (ii) if the
Purchaser is drawing funds from any source other than a Canadian chartered bank
to pay for this Agreement, then only by wire transfer to the Seller pursuant to
the wiring instructions to be provided by the Seller upon request or with the
purchase invoice. If the funds are wired to the Seller’s lawyers, those lawyers
are irrevocably authorized by the Purchaser to immediately deliver the funds to
the Seller upon receipt of the funds from the Purchaser, even if the Offering
has not been consummated.

2.2                 
Where the Purchase Amount is paid to the Seller, the Purchaser authorizes the
Seller to treat such Purchase Amount as an interest free loan to the Seller
until such time as the Agreement is accepted. 

3.                 
Documents Required from Purchaser 

3.1                 
The Purchaser must complete, sign and return to the Seller an executed copy of
this Agreement; 3.2 The Purchaser shall complete, sign and return to the Seller
as soon as possible, on request by the Seller, any additional documents,
questionnaires, notices and undertakings as may be required by any regulatory
authorities and applicable law. 

3.3                 
Both parties to this Agreement acknowledge and agree that Clark Wilson LLP has
acted as counsel only to the Seller and is not protecting the rights and
interests of the Purchaser. The Purchaser acknowledges and agrees that the
Seller and Clark Wilson LLP have given the Purchaser the opportunity to seek,
and are hereby recommending that the Purchaser obtain, independent legal advice
with respect to the subject matter of this Agreement and, further, the Purchaser
hereby represents and warrants to the Seller and Clark Wilson LLP that the
Purchaser has sought independent legal advice or waives such advice.

4.                 
Conditions and Closing 

4.1                 
The closing of the Agreement and forward sale of the Gold shall occur on or
before the date to be determined by the Seller in its sole discretion (the
“Closing Date”). The Purchaser acknowledges that Agreements may be issued
to other Purchasers under this offering (the “Offering”) before or after
the Closing Date. The Seller, may, in its discretion, elect to close the
Offering in one or more closings, in which event the Seller may agree with one
or more Purchasers (including the Purchaser hereunder) to complete Agreements
with such Purchaser(s) against payment therefore at any time on or prior to the
Closing Date. 

5.                 
Acknowledgements and Agreements of Purchaser 

5.1                 
The Purchaser acknowledges and agrees that: 

	 	(a) 	
      There is no market for the Agreements and that they are
      not transferable;

	 	 	 
	 	(b) 	
      Seller has not undertaken, and will have no obligation,
      to register any of the Agreements under the 1933 Act or any other
      securities legislation;

	 	 	 
	 	(c) 	
      the decision to execute this Agreement and acquire the
      gold 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
      Seller and such decision is based entirely upon a review of any public
      information which has been filed by the Issuer with the United States
      Securities and Exchange Commission (the “SEC”) and with the
      Canadian provincial securities commissions on www.sedar.com (collectively,
      the “Public Record”);

	 	 	 
	 	(d) 	
      there are risks associated with the forward purchase of
      gold, as more fully described in the Seller’s periodic disclosure forming
      part of the Public Record;

	 	(e) 	
      the Purchaser understands and agrees that the Seller and
      others will rely upon the truth and accuracy of the acknowledgements,
      representations, warranties, covenants and agreements contained in this
      Agreement and agrees that if any of such acknowledgements, representations
      and agreements are no longer accurate or have been breached, the Purchaser
      shall promptly notify the Seller;

	 	 	 
	 	(f) 	
      the Purchaser and the Purchaser’s advisor(s) have had a
      reasonable opportunity to ask questions of and receive answers from the
      Seller in connection with the Agreement 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 Seller;

	 	 	 
	 	(g) 	
      finder’s fees or broker’s commissions may be payable by
      the Seller to finders who introduce purchasers to the Seller;

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

	 	 	 
	 	(i) 	
      all of the information which the Purchaser has provided
      to the Seller is correct and complete as of the date this Agreement is
      signed, and if there should be any change in such information prior to the
      Closing, the Purchaser will immediately provide the Seller with such
      information;

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

	 	 	 
	 	(k) 	
      the Purchaser has been advised to consult the Purchaser’s
      own legal, tax and other advisors with respect to the merits and risks of
      an investment in a Forward Gold Purchase Agreement and with respect to
      applicable resale restrictions, and it is solely responsible (and the
      Seller is not in any way responsible) for compliance with:

	 	 	 
	 	(i) 	
      any applicable laws of the jurisdiction in which the
      Purchaser is resident in connection with the completion of the Agreement
      hereunder, and

	 	 	 
	 	(ii) 	
      that there is no possibility of resale of the
      Agreement;

	 	 	 
	 	(l) 	
      the Purchaser understands and agrees that there may be
      material tax consequences to the Purchaser of an acquisition or
      disposition of the gold. The Seller gives no opinion and makes no
      representation with respect to the tax consequences to the Purchaser under
      federal, state, provincial, local or foreign tax law of the Purchaser’s
      acquisition or disposition of the gold;

	 	 	 
	 	(m) 	
      no documents in connection with the sale of the Agreement
      have been reviewed by the SEC or any securities administrators;

	 	 	 
	 	(n) 	
      neither the SEC nor any securities commission or similar
      regulatory authority has reviewed or passed on the merits of any of the
      Agreement;

	 	 	 
	 	(o) 	
      there is no government or other insurance covering any of
      the Agreement;

	 	 	 
	 	(p) 	
      this Agreement is not enforceable by the Purchaser unless
      it has been accepted by the Issuer and Seller, and the Purchaser
      acknowledges and agrees that the Issuer and Seller reserves the right to
      reject any Agreement for any reason whatsoever; and

	 	 	 
	 	(q) 	
      the Purchaser has a substantive pre-existing relationship
      with one or more of the directors and/or officers of the Seller and
      learned about the Offering through such relationship and director contact
      with such directors and/or officers or by the Seller’s advertising on its
      website and other sources of information and did not become aware of the
      Offering through any registration statement that has been filed by the
      Parent.

6.                 
Representations, Warranties and Covenants of the Purchaser

6.1                 
The Purchaser hereby represents and warrants to and covenants with the Seller
(which representations, warranties and covenants shall survive the Closing)
that: 

	 	(a) 	
      the Purchaser (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, (iii) is
      able to bear the economic risks of an investment in the Agreement for an
      indefinite period of time, and (iv) can afford the complete loss of such
      investment;

	 	 	 	 
	 	(b) 	
      if the Purchaser is resident outside of Canada:

	 	 	 	 
	 		(i) 	
      the Purchaser is knowledgeable of, or has been
      independently advised as to, the applicable laws of the securities
      regulators having application in the jurisdiction in which the Purchaser
      is resident (the “International Jurisdiction”) which would apply to
      the offer and forward sale of of gold defined by the Agreement,

	 	 	 	 
	 		(ii) 	
      the applicable laws of the authorities in the
      International Jurisdiction do not require the Seller 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
      offer, issue, forward sale of gold defined by the Agreement.,

	 		(iii) 	
      the execution of the Agreement by the Purchaser 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
      Seller in the International Jurisdiction, and

	 	 	 	 	 
	 		(iv) 	
      the Purchaser will, if requested by the Seller, deliver
      to the Seller 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
      Seller, acting reasonably;

	 	 	 	 	 
	 	(c) 	
      the Purchaser has the legal capacity and competence to
      enter into and execute this Agreement and to take all actions required
      pursuant hereto and, if the Purchaser is a corporate entity, it is duly
      incorporated and validly subsisting under the laws of its jurisdiction of
      incorporation and all necessary approvals by its directors, shareholders
      and others have been obtained to authorize execution and performance of
      this Agreement on behalf of the Purchaser;

	 	 	 	 	 
	 	(d) 	
      the entering into of this 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, if applicable, the constating
      documents of, the Purchaser or of any agreement, written or oral, to which
      the Purchaser may be a party or by which the Purchaser is or may be
      bound;

	 	 	 	 	 
	 	(e) 	
      the Purchaser has duly executed and delivered this
      Agreement and it constitutes a valid and binding agreement of the
      Purchaser enforceable against the Purchaser;

	 	 	 	 	 
	 	(f) 	
      the Purchaser is aware that an investment in the Seller
      is speculative and involves certain risks (including those risks disclosed
      in the Public Record), including the possible loss of the entire
      investment;

	 	 	 	 	 
	 	(g) 	
      the Purchaser has made an independent examination and
      investigation of an investment in the Agreement and the Seller and agrees
      that the Seller will not be responsible in any way whatsoever for the
      Purchaser’s decision to invest in the Agreement and the Seller;

	 	 	 	 	 
	 	(h) 	
      the Purchaser is executing the Agreement for its own
      account for investment purposes only and not for the account of any other
      person and not for distribution, assignment or resale to others, and no
      other person has a direct or indirect beneficial interest in such
      Agreement and the Purchaser has not subdivided his interest in the
      Agreement with any other person;

	 	 	 	 	 
	 	(i) 	
      the Purchaser (i) is able to fend for itself in the
      Agreement; (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 Agreement; and (iii) has the ability to bear the
      economic risks of its prospective investment and can afford the complete
      loss of such investment;

	 	 	 	 	 
	 	(j) 	
      the Purchaser is not an underwriter of, or dealer in, any
      of the Agreements, nor is the Purchaser participating, pursuant to a
      contractual agreement or otherwise, in the distribution of the
      Agreements;

	 	 	 	 	 
	 	(k) 	
      no person has made to the Purchaser any written or oral
      representations:

	 	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase any of the
      Agreement,

	 	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of any of
      the Agreement, or

	 	 	 	 	 
	 		(iii) 	
      as to the future price or value of any of the
      Agreements;

	 	 	 	 	 
	 		(l) 	
      the Purchaser understands and agrees that none of the
      Agreements have been or will be registered under the 1933 Act, or under
      any state securities or “blue sky” laws of any state of the United States,
      and are therefore not transferable, the Purchaser understands and agrees
      that offers and sales of any of the Agreements is not possible as the
      Agreements are not transferable.

7.                   Representations and Warranties will be Relied Upon by
the Seller 

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

8.                   Acknowledgement and Waiver 

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

9.                 
Resale Restrictions, Assignment and Registration 

9.1                 
The Purchaser acknowledges that the Agreement is not transferable, assignable or
sellable. 

10.                 
Costs 

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

11.                 
Governing Law 

11.1                 
This Agreement is governed by the laws of the Province of British Columbia and
the federal laws of Canada applicable therein. The Purchaser, 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. 

12.                 
Survival 

12.1                 
This 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 Agreement by the Purchaser pursuant hereto. 

13.                 
Severability 

13.1                 
The invalidity or unenforceability of any particular provision of this Agreement
shall not affect or limit the validity or enforceability of the remaining
provisions of this Agreement. 

14.                 
Entire Agreement 

14.1                 
Except as expressly provided in this Agreement and in the Schedules, agreements,
instruments and other documents attached hereto or contemplated or provided for
herein, this Agreement contains the entire agreement between the parties with
respect to the forward purchase of gold and there are no other terms,
conditions, representations or warranties, whether expressed, implied, oral or
written, by statute or common law, by the Issuer or Seller or by anyone else.

15.                 
Notices 

15.1                 
All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted by any standard form of
telecommunication, including facsimile, electronic mail or other means of
electronic communication capable of producing a printed copy. Notices to the
Purchaser shall be directed to the address of the Purchaser set forth on page 2
of this Agreement and notices to the Issuer and Seller shall be directed to it
at the address of the Seller set forth on page 3 of this Agreement. 

16.                 
Counterparts and Electronic Means 

16.1                 
This 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. 

17.                 
Schedules 

17.1                 
Schedule A is attached hereto and form part of this Agreement. 

18.                 
Indemnity 

18.1                 
The Purchaser will indemnify and hold harmless the Seller 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
Purchaser contained in this Agreement or in any document furnished by the
Purchaser to the Seller in connection herewith being untrue in any material
respect or any breach or failure by the Purchaser to comply with any covenant or
agreement made by the Purchaser to the Seller in connection therewith. 

SCHEDULE A 

SECURITY OF FORWARD GOLD PURCHASE AGREEMENT 

SECURITY A: 

	 	1. 	
      The Subscriber agrees to have their investment secured by
      in-ground gold assets, as described in the Technical Report on the Geology
      of the Kinyambwiga – Murangi – Suguti Properties, Victoria Goldfields,
      Tanzania for Lake Victoria Mining Company, Inc. prepared by Dave R. Webb,
      Geologist of DRW Geological Consultants Ltd. of Vancouver, British
      Columbia (Report is available on the Seller’s corporate website:
      www.lvcamining.com and by public records filed at:
      www.sedar.com. An executive summary of the report is attached as
      Appendix I)

	 	 	 
	 	2. 	
      The Seller commits to allocate a minimum of twenty five
      percent (25%) of the initial gold production from the Kunanga Medium Scale
      Gold Mining project and will delivery such gold to the purchaser upon its
      being refined into .999 gold bars in fulfillment of any and all Forward
      Gold Purchase Agreements according to the amounts purchased and the
      agreement delivery dates.

SECURITY B: 

1. The Seller will also secure the Forward Gold Purchase
Agreement by issuing a pro rata Security Chattel Agreement over the Mining
License area granted by The Energy and Minerals of Tanzania on April 1, 2014.
(the area granted by the Mining License is contained as Appendix II) The pro
rata portion securing a purchaser will be based on the percentage of five
million dollars that the purchaser’s aggregate forward gold purchase in dollars
represents of the total. 

APPENDIX I 

Summary of January 23, 2013 Technical Report 

	Lake Victoria Mining Company Inc. 	January 2013 

Item 1. Summary 

Lake Victoria Mining Company Inc. owns 100% of the
mineral rights to the Kinyambwiga,  Murangi and Suguti properties (the “Kinyambwiga Project”). The
mineral rights consist of 3 Prospecting Licenses totaling 7,676 hectares.
A total of 24 Primary Mining Licenses within the Kinyambwiga Property are
controlled by the Company by agreements. 

The Kinyambwiga Project is located in the Mara region in the
northeast portion of the United Republic of Tanzania, East Africa, immediately
east of the southern shore of Lake Victoria. The Kinyambwiga property is
predominantly underlain by Precambrian granitic and aplitic rocks that fall into
two main groups, syn and late orogenic granites. The granites are unconformably
overlain by the northwest trending Archaean age Musoma-Mara Greenstone Belt. The
Greenstone Belt lithologies include pillow basalts, mafic flows, acid volcanics,
shales and feldspar porphyry. The granites are intruded in places by syn and
post orogenic felsic intrusive and mainly Proterozoic age dolerite dykes that,
in places, appear to trend sub parallel to major structures in the region.
Granitic sands are often covered by mbuga (black organic-rich silts deposited
from a receding Lake and there is very little outcrop.

Previous exploration work was conducted on the Kinyambwiga
property, by Placer Dome (formerly Afrika Mashariki) Anglo-Ashanti Gold, Shanta
Mining, Tanganika Gold and Geo Can Resources. Work included mapping, soil
sampling, trenching, pitting, geophysics, remote sensing and limited reverse
circulation drilling focused on quartz reefs at artisanal workings. Both the
Murangi and Suguti properties are underlain by greenstone and granitic rocks.
The Murangi property is covered by mbuga. Some minor outcrops occur on the south
of the Murangi property. 

Approximately 34% of the Suguti property is covered by mbuga.
Exposure is limited to minor rock outcrops on the north side of the Suguti
shear. To the south, well exposed ridges of banded iron formation form
topographic highs. 

There is no historical exploration on either the Murangi or the
Suguti properties. Lake Victoria Mining Company has spent over $800,000 on
exploration since it purchased the Primary Licenses in May, 2009 from Geo Can
Resources Company Limited. Work included geochemical soil sampling, gradient
array IP surveys, VES target profiling, mapping, trenching, and drilling. 

Most of the work and all of the drilling occurred on the
Kanunga 1, 2 and 3 gold prospects which are located on the Kinyambwiga property.
Ground magnetometer surveys were conducted on the Murangi and Suguti properties.

Lake Victoria Mining Company drilled 35 holes, for a total of
2427 meters, to target quartz veins at Kanunga 1, 2 and 3 Gold Prospects. On the
Kanunga 1 Gold Prospect, drilling confirmed the presence of at least 2
mineralized structures extending along strike. 

There has been no formal development or operations on the 3
properties. On the Kinyambwiga property, there is artisanal activity. On the
Kanunga 2 Gold Prospect, artisanal activity includes a couple of shallow pits at
the south edge of the quartz float and a 25 meter deep shaft located some 430
meters to the southwest along strike. Kanunga 3 Gold Prospect has artisanal activity, comprised
primarily of small pits and shafts. 

There are no formal estimates of either mineral resources or
mineral reserves for the three
properties. 

The following observations can be made from the work completed to date: 

	
1. 		
The Kinyambwiga area is predominantly underlain by Precambrian granitic and aplitic rocks. The granites are uncomformably overlain by the highly prospective northwest trending Archaean age Musoma-Mara Greenstone Belt.

	
	 	 
	
2. 		
Gold deposits in the Musoma-Mara Gold Belt are predominantly shear hosted Archaean Greenstone type deposits similar to those in the Canadian Shield.

	
	 	 
	
3. 		
In the Musoma-Mara Greenstone Belt, the intersection of major northwest trending shear zones and minor east and northeast trending structures, appear to have a primary control on enhanced gold mineralization.

	
	 	 
	
4. 		
The gold mineralization on the Kinyambwiga property is associated with narrow, en echelon, steeply dipping quartz veins associated with a major northeast structural trend that transects the granitic rocks. This is supported by
geological mapping, drilling, trenching and the Schlumberger VES profiling of coincident chargeability/resistivity anomalies which have traced the strike of the quartz veins beneath the black cotton soil cover for some 700 meters.

	
	 	 
	
5. 		
The quartz veins often exhibit pinch and swell structures which vary from less than one meter to over 10 meters in width with strike lengths often greater than 200 meters long.

	
	 	 
	
6. 		
The mineralization appears to be correlatable over significant strike and dips and a conceptual target has been estimated.

	
	 	 
	
7. 		
Similar shear hosted quartz veins have been identified at Kanunga 2 and 3 gold prospects.

	
	 	 
	
8. 		
Gold mineralization on the Murangi and Suguti properties is likely the same.

	

The Kinyambwiga area hosts a conceptual target of between 600,000 to 1,000,000 tonnes grading between 1 and 3 gpt gold to elevation 1,000 m AMSL. 

The potential quantity and grade of these targets are conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a
mineral resource. The conceptual target has been determined on the basis of trenching, mapping, geophysics and both RC and RAB drilling.

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