Document:

Filed by sedaredgar.com - Panglobal Brands Inc. - Exhibit 10.1

CONVERTIBLE LOAN AGREEMENT 

                      
THIS AGREEMENT dated for reference the 9th day of April, 2009
and made, 

BETWEEN: 

  
    PANGLOBAL BRANDS INC., a company incorporated
      under the laws of Delaware, having an office at 2853 E. Pico Blvd, Los Angeles,
      CA 90023; 

    (the “Borrower”) 

  

AND: 

  
    Those parties listed on Schedule A hereto who
      have advanced funds pursuant to this Agreement; 

    (the “Lenders” ) 

  

                      
WITNESSES THAT WHEREAS:

A.                  
The Borrower has applied to the Lenders for a loan in the aggregate principal
amount of up to US$2,500,000 (the “Loan”) to be utilized by the Borrower
for the purposes described in Section 3. 

B.                  
Lenders have agreed to make the Loan available to Borrower provided they are
secured in the same manner and pari passu with prior secured Lenders; and 

C.                  
The parties wish to provide for the terms and conditions upon which the Loan
will be made available to the Borrower. 

                       THEREFORE
in consideration of the premises and of the mutual covenants and agreements
hereinafter set forth, the Lenders and the Borrower warrant and represent to and
covenant and agree with each other as set forth below. 

1.                   
 DEFINITIONS; INTERPRETATION 

1.1                  
For the purpose of this Agreement, the following words and phrases will have
meanings set forth below unless the parties or the context otherwise require(s):

	 	(a) 	
      “Accredited Investor” means an accredited investor
      as that term is defined by Regulation D promulgated under the Securities
      Act and /or Canadian Securities Administrators’ National Instrument
      45-105, as applicable;

	 	 	 
	 	(b) 	
      “Affiliate” has the meaning given to it in the
      Securities Act;

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	 	(c) 	
      “Agreement” and “this Agreement” means this
      agreement and all schedules hereto as the same may be amended, modified,
      replaced or restated from time to time;

	 	 	 
	 	(d) 	
      “Borrower’s Indebtedness” means all present and
      future indebtedness and liability, direct and indirect, of the Borrower to
      the Lenders arising under and pursuant to the Loan Documents (including,
      without limitation, at any point in time the principal amount outstanding
      under the Loan, all unpaid accrued interest thereon, liquidated damages,
      and all fees and costs and expenses then payable in connection
      therewith);

	 	 	 
	 	(e) 	
      “Business Day” means any day, other than a
      Saturday or a Sunday, on which commercial banks in California are required
      to be open for business;

	 	 	 
	 	(f) 	
      “Common Shares” means fully paid non assessable
      common shares par value $0.0001 in the capital of the Borrower;

	 	 	 
	 	(g) 	
      “Conditions Precedent” means the conditions
      precedent described in Article 9 hereof;

	 	 	 
	 	(h) 	
      “Conversion” means the right of the Lenders to
      convert any portion of the outstanding Loan as set out in section
  8;

	 	 	 
	 	(i) 	
      “Event of Default” means any of the events
      specified in Section 13, and “Default” mean any of such events,
      whether or not any such requirement has been satisfied;

	 	 	 
	 	(j) 	
      “GAAP” means United States generally accepted
      accounting principles, as applied on a consistent basis;

	 	 	 
	 	(k) 	
      “Interest Payment Date” means the last day of
      October and April in each year, commencing October 31, 2009;

	 	 	 
	 	(l) 	
      “Interest Rate” means nine percent (9%) per annum
      calculated as herein provided;

	 	 	 
	 	(m) 	
      “Lien” means, with respect to any Person, any
      mortgage, lien, pledge, hypothecation, charge (whether fixed or floating),
      security interest (including, without limitation, any assignment, notice
      or security interest filed pursuant to applicable federal, state or other
      laws) or other encumbrance, or any interest or title of any vendor,
      lessor, or Lenders to or other secured party of such Person under any
      conditional sale or other title retention agreement, upon or with respect
      to any property, asset or undertaking of such Person, including any
      agreement to create any of the foregoing, and whether arising under any
      statute, law, contract or otherwise;

	 	 	 
	 	(n) 	
      “Loan” means the convertible loan of US$1,000,000
      established by the Lenders in favour of the Borrower pursuant to this
      Agreement;

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	 	(o) 	
      “Loan Documents” means this Agreement, the Pari
      Passu and Modification Agreement and the Security Documents;

	 	 	 	 
	 	(p) 	
      “material adverse effect” in respect of the
      Borrower means a material adverse effect on:

	 	 	 	 
	 		(i) 	
      the business, operations, affairs, financial condition,
      property, assets or undertakings of the Borrower, or

	 	 	 	 
	 		(ii) 	
      the validity, priority or enforceability of any Loan
      Document to which that Borrower is a party or by which any of its
      property, assets and undertakings are bound;

	 	 	 	 
	 	(q) 	
      “material” means, in respect of the Borrower,
      material in relation to the business, operations, affairs, financial
      condition, assets, properties, or prospects of the Borrower;

	 	 	 	 
	 	(r) 	
      “Maturity Date” has the meaning set out in Section
      5 of this Agreement;

	 	 	 	 
	 	(s) 	
      “Pari Passu and Modification Agreement” means the
      agreement among the Borrower, the Lenders and the Prior Loan Lenders
      whereby the Prior Loans are equal to and pari passu with the Loan in
      priority over the assets of the Borrower;

	 	 	 	 
	 	(t) 	
      “Person” means and includes an individual, a
      partnership, a joint venture, a corporation, a limited liability company,
      a trust, an unincorporated organization and a government or any department
      or agency thereof;

	 	 	 	 
	 	(u) 	
      “Priority Claim” means a claim of a Person
      pursuant to a Lien which, in the opinion of the Lenders or its solicitors,
      acting reasonably, ranks or could rank pari passu with or in priority to
      any Lien that the Lenders may have pursuant to the Security
    Documents;

	 	 	 	 
	 	(v) 	
      “Prior Factor” means a Person in the business of
      factoring accounts receivable for the purpose of financing the Borrower’s
      accounts receivable in whole or in part;

	 	 	 	 
	 	(w) 	
      “Prior Factor’s Loan” means the loan made by the
      Prior Factor to the Borrower for the purposes of factoring the Borrower’s
      accounts receivables in whole or in part;

	 	 	 	 
	 	(x) 	
      “Prior Factor’s Lien” means the Lien in favour of
      the Prior Factor over the Borrower’s accounts receivable which have been
      assigned to the Prior Factor for the repayment of the Prior Factor’s Loan
      and interest;

	 	 	 	 
	 	(y) 	
      “Prior Permitted Liens” means:

	 	 	 	 
	 		(i) 	
      the Prior Factor’s Lien;

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	 	(ii) 	
      Liens in favour of the Prior Loan Lenders;

	 	 	 
	 	(iii) 	
      any other Lien from time to time agreed to as such by the
      Lenders in writing;

	 	 	 
	 	(iv) 	
      Liens incidental to the conduct of Borrower’s business as
      the ownership of its property; and

	 	 	 
	 	(v) 	
      Liens granted to factors over specific accounts
      receivable which the said factor is collecting on behalf of the
      Company.

	 	(z) 	
      “Prior Loans” means the Loan Agreement dated March
      4, 2008 for the principal amount of US$750,000 and the Loan Agreement
      dated January 15, 2009 for the principal amount of $1,000,000 in favour of
      the Prior Loan Lenders;

	 	 	 
	 	(aa) 	
      “Prior Loan Lenders” means Sinecure Holdings Ltd.,
      Capella Investments Inc. and Providence Wealth Management Ltd.;

	 	 	 
	 	(bb) 	
      “Securities” means the Warrants and the Common
      Shares;

	 	 	 
	 	(cc) 	
      “Securities Act” means the United States
      Securities Act of 1933, as amended or replaced from time to
time;

	 	 	 
	 	(dd) 	
      “Security Documents” means the security documents
      set out in Section 12 to this Agreement and any other security document(s)
      from time to time taken by the Lenders from the Borrower or any other
      Person as security for the payment, observance and performance of the
      Borrower’s Indebtedness in whole or in part;

	 	 	 
	 	(ee) 	
      “Subsidiary” has the meaning given to it in the
      Securities Act;

	 	 	 
	 	(ff) 	
      “UCC” shall mean the Uniform Commercial Code as in
      effect in the applicable jurisdiction;

	 	 	 
	 	(gg) 	
      “Units” means the unit of one Common Share and one
      Warrant;

	 	 	 
	 	(hh) 	
      “US$” means lawful currency of the United States;
      and

	 	 	 
	 	(ii) 	
      “Warrant” means a warrant to purchase a Common
      Share for a period of twenty four months from issuance. One whole warrant
      may be exercised at a price US$0.15 per Common
Share.

1.2                  
All dollar figures refer to $USD.

2.                   
 LOAN

2.1                  
Subject to the terms and conditions of this Agreement, the Lenders hereby
establish and agree to advance the Loan to the Borrower in the sums as set out
in Schedule A attached. 

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2.2                  
The amount due and owing to each Lender will be established by the Borrower in
records, which records will be prima facie evidence of the amount owed. In case
of a dispute as to the amount owed to a Lender, the auditors of the Borrower
will provide the amount and such amount provided by the auditors will be
conclusive.

2.3                  
Each Lender agrees and acknowledges that all payments made by the Borrower will
be made in proportion to the relative amounts of the indebtedness of the
Borrower to each Lender as at the date of such payment.

2.4                  
Each Lender hereby consents to the creation by the Borrower of the Security
Documents and security interest contained therein in favour of the other Lenders
and agrees that the creation, registration, filing and existence of such
Security Documents and security interest shall not constitute an event of
default under its Security Documents. 

2.5                  
Notwithstanding the order of attachment or perfection of the security interests
under the Security Documents, or the date upon which a Lender lends funds to the
Borrower under these same terms and conditions, the Lenders agree that the
security interests of all Lenders under this Convertible Loan Agreement shall
have equal priority and that in the event that a Lender realizes on its security
interest, the proceeds of any such realization shall be allocated and paid as
between the Lenders in proportion to the relative amounts of the indebtedness of
the Borrower to each Lender as at the date of such realization. 

2.6                  
In addition, the Lenders agree that the security interests of all Prior Loan
Lenders under the Prior Loans shall have equal priority with the Loans
established under this Convertible Loan Agreement and that in the event that a
Lender realizes on its security interest, the proceeds of any such realization
shall be allocated and paid as between the Lenders and the Prior Loan Lenders
all in proportion to the relative amounts of the indebtedness of the Borrower to
each Lender and Prior Loan Lender as at the date of such realization. 

3.                    
PURPOSE 

3.1                  
The Loan will be made available to the Borrower for its general corporate
purposes and for no other purpose without the prior written consent of the
Lenders. 

4.                   
 AVAILABILITY AND SUBORDINATION 

4.1                  
The Loan will be available on the day of closing of this Agreement. Closing will
occur immediately upon execution of the Loan Documents and advance of the Loan
to the Borrower’s attorneys for closing.

4.2                  
The Loan will be subordinated to a Prior Factor who is arranged by the Borrower,
so long as the borrowings of the Borrower from the Prior Factor do not exceed
90% of the Borrower’s accounts receivable and security granted to such Prior
Factor are limited to an assignment of such accounts receivable collected by the
Prior Factor.

4.3                  
The Loan will rank equally with the Prior Loans and the Borrower will ensure
execution by the Prior Loan Lenders of the Pari Passu and Modification
Agreement.

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5.                  
TERM 

5.1                  
Subject to the provisions of Section 7, the Borrower will pay the Borrower’s
Indebtedness to the Lenders in full on April 30, 2011, unless sooner prepaid or
accelerated upon the occurrence and during the continuance of an Event of
Default (the “Maturity Date”). 

6.                   
 INTEREST 

6.1                  
The outstanding principal balance of the Loan will bear interest at the Interest
Rate. 

6.2                  
Interest at the Interest Rate will be calculated bi-annually, not in advance, as
well as before maturity, default, demand and judgment. 

6.3                  
All overdue and unpaid interest and all fees, costs, and other amounts payable
by the Borrower hereunder or under any of the Loan Documents will be added to
the principal balance of the Loan and will bear interest at the Interest Rate
until paid in full. 

6.4                  
If Interest calculated under the laws of the State of California is determined
to be in excess of the maximum interest rate permitted by law, the parties agree
to reduce the Interest payable to such rate of interest as is 0.1% below the
maximum permitted by California law and to reduce Interest otherwise paid or
payable to such adjusted rate. Any excess amount of Interest received by the
Lenders shall be first applied to any unpaid principal balance owed by the
Borrower, and if the then remaining excess amount is greater than the previously
unpaid principal balance, the Lenders shall promptly refund such excess amount
to the Borrower. 

7.                   
 REPAYMENT 

7.1                  
On each Interest Payment Date, the Borrower will pay the Lenders all interest
which has accrued on account of the outstanding balance of the Lender’s Loan and
then remains unpaid. Interest may be paid in cash or Common Shares, or any
combination thereof at the discretion of the Borrower. If any portion of the
interest is paid in Common Shares, the conversion price will be US$0.15 in value
of interest for every one Common Share issued.

7.2                  
On the Maturity Date the Borrower will pay to the Lenders the Borrower’s
Indebtedness then outstanding in full. 

7.3                  
The Borrower will be entitled to prepay the whole or any portion of the
Borrower’s Indebtedness at any time and from time to time, with two weeks
notice, without bonus or penalty, provided that upon the Lender receiving such
prepayment notice the Lender may provide notice of conversion of the whole or
any portion of the Loan, which notice of conversion will take precedence over
notice of prepayment. 

7.4                  
All amounts payable by the Borrower under this Agreement will be paid without
set-off or counterclaim, and without any deductions or withholdings whatsoever.

7.5                  
Subject to the provisions hereof, all payments received by the Lenders on
account of the Borrower’s Indebtedness will be applied first in payment of
outstanding interest and 

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secondly in reduction of the principal balance of the Loan then
outstanding. If any payment is received at any time while an Event of Default
remains outstanding or after demand has been made for the repayment of the
Borrower’s Indebtedness, the Lenders may appropriate such payment to such part
or parts of the Borrower’s Indebtedness as the Lenders in its sole discretion
may determine and the Lenders may from time to time revoke and change any such
appropriation. 

7.6                  
The Lenders is hereby authorized to open and maintain books of account and other
books and records evidencing all advances under the Loan, interest accruing
thereon, fees, charges, and other amounts from time to time charged to the
Borrower under the Loan Documents; and amounts from time to time owing, paid, or
repaid by the Borrower under this Agreement. All such books, accounts, and
records will constitute prima facie evidence of the amount owing by the Borrower
under the Loan Documents; but the failure to make any entry or recording in such
books, accounts, and records will not limit or otherwise affect the obligations
of the Borrower under the Loan Documents. 

7.7                  
Notwithstanding anything in this Agreement to the contrary, any payment of
principal of or interest on the Borrower’s Indebtedness that is due on a date
other than a Business Day will be made on the next succeeding Business Day. If
the date for any payment on the Borrower’s Indebtedness is extended to the next
succeeding Business Day by reason of the preceding sentence, the period of such
extension will not be included in the computation of the interest payable on
such Business Day. 

8.                    
CONVERSION TO UNITS 

8.1                  
At any time until the Maturity Date, if the Borrower has not paid the Loan in
full, the Lenders or any of them may by written notice (the "Notice") to
the Borrower, exercise its rights of Conversion in respect of either a portion
of or the total outstanding amount of the Loan but not including accrued
Interest as of that date into Units, at a price per Unit of US$0.10.

8.2                  
Within seven (7) days of Notice by a Lender exercising its rights of Conversion
hereunder, the Borrower shall deliver a Share Certificate and a Warrant
Certificate to the Lender representing the number of Shares and Warrants
acquired by the Lender pursuant to the calculation set out in subparagraph 8.1
of this Agreement. 

8.3                  
Reserved. 

9.                    
CONDITIONS PRECEDENT 

9.1                  
The Lender’s obligation to make the Loan is subject to the following conditions
precedent having been met to the Lenders’ sole satisfaction or waived by the
Lenders in writing at the time of that Advance, namely: 

	 	(a) 	
      the Lenders having received a properly executed original
      of this Agreement and the Security Documents then in
  effect;

- 8 - 

	 	(b) 	
      the Borrower’s representations and warranties contained
      herein and in the Security Documents then in effect then being true and
      correct in all material respects;

	 	 	 
	 	(c) 	
      the Security Documents being registered against the
      Borrower in the state of California;

	 	 	 
	 	(d) 	
      there then being no outstanding Default or Event of
      Default;

	 	 	 
	 	(e) 	
      each of the Prior Lenders have converted US$187,500
      (total US$562,500) of their Prior Loans into the equity private placement
      as set out in a subscription agreement dated for reference April 9, 2009,
      and have converted the balance of their Prior Loans of US$1,187,500 into
      this Convertible Loan Agreement; and

	 	 	 
	 	(f) 	
      the Prior Loan Lenders have signed the Pari Passu and
      Modification Agreement; and

	 	 	 
	 	(g) 	
      new funds of US$1,000,000 are subscribed pursuant to this
      Convertible Loan Agreement, unless this condition is waived by an
      individual Lender . Funds advanced by any Lender pending closing shall be
      returned forthwith if this condition is not fulfilled or waived.
  .

10.                  
REPRESENTATIONS AND WARRANTIES 

10.1                
The Borrower represents and warrants as follows:

	 	(a) 	
      it is a corporation duly organized, validly existing and
      in good standing under the laws of Delaware;

	 	 	 
	 	(b) 	
      it has the (corporate) power and capacity to carry on
      business as currently conducted by it, own property or interests therein,
      borrow and lend money, grant security, make, keep, observe and perform
      representations, warranties, covenants and agreements and incur
      obligations and liabilities, all as contemplated hereby;

	 	 	 
	 	(c) 	
      there is no action, suit, investigation or proceeding
      outstanding or pending or, to the knowledge of the Borrower, threatened
      against it or any of its property, assets or undertakings by or before any
      court, arbitrator or administrative or governmental body which would
      reasonably be expected to have a material adverse effect;

	 	 	 
	 	(d) 	
      it has not agreed or consented to, nor has it agreed to
      cause or permit in the future (upon the happening of a contingency or
      otherwise), any of its property, whether now owned or hereafter acquired,
      to be subject to a Lien other than Prior Permitted Liens; and

	 	 	 
	 	(e) 	
      the execution and delivery by it of this Agreement and
      the Security Documents and the performance by it of its obligations
      hereunder and thereunder, do not and

- 9 - 

will not conflict with or result in a
material breach of any of the terms, conditions, or provisions of: 

	 	(i) 	
      its organizational documents,

	 	 	 
	 	(ii) 	
      any law, regulation, or decree applicable or binding on
      it or any of its property, assets and undertaking, or

	 	 	 
	 	(iii) 	
      any material agreement or instrument binding to which it
      or any of its property assets or undertakings is a party or bound, the
      breach of which could reasonably be expected to have a material adverse
      effect or result in, or require or permit the imposition of any Lien in or
      with respect to the property, assets and undertakings now owned or
      hereafter acquired by it.

11.                  
COVENANTS 

11.1                
The Borrower will: 

	 	(a) 	
      comply with all applicable laws, ordinances or
      governmental rules or regulations to which it or any of its property,
      assets and undertaking are subject;

	 	 	 
	 	(b) 	
      obtain and maintain in effect all licenses, certificates,
      permits, franchises and other governmental authorizations necessary to the
      ownership of its property, assets and undertakings or to the conduct of
      its businesses, in each case to the extent necessary to ensure that
      non-compliance with such applicable laws, ordinances or governmental rules
      or regulations or failures to obtain or maintain in effect such licenses,
      certificates, permits, franchises and other governmental authorizations
      could not, individually or in the aggregate, reasonably be expected to
      have a material adverse effect; and

	 	 	 
	 	(c) 	
      maintain and keep, or cause to be maintained and kept,
      its property, assets and undertakings in good repair, working order and
      condition (other than ordinary wear and tear), so that the business(es)
      carried on by it may be properly conducted at all times, provided that
      this section will not prevent the Borrower from discontinuing the
      operation and the maintenance of any of its property, assets and
      undertakings if such discontinuance is desirable in the conduct of its
      business and such the Borrower has concluded that such discontinuance
      could not, individually or in the aggregate, reasonably be expected to
      have a material adverse effect.

11.2                
So long as this Agreement remains in effect, the Borrower will not, without the
prior written consent of the Lenders, which consent will not be unreasonably
withheld: 

	 	(a) 	
      alter any of its organizational documents or its
      corporate organization;

	 	 	 
	 	(b) 	
      amalgamate, consolidate or merge with any other
      Person;

	 	 	 
	 	(c) 	
      redeem any of its redeemable shares or securities or
      otherwise change its capital structure;

- 10 - 

	 	(d) 	
      incur any further indebtedness of either a direct or
      indirect nature to any party other than from the Lenders, the Prior Factor
      and the Prior Loan Lenders except in the normal course of
  business;

	 	 	 
	 	(e) 	
      grant or allow any further Lien to be registered against
      it or exist on any of its property, assets and undertaking, save and
      except for security in favour of the Lenders and Prior Permitted
    Liens;

	 	 	 
	 	(g) 	
      make any advances or loan to, or any investment in, or
      provide any guarantees on behalf of, any Person, other than the
      endorsement of checks in the ordinary course;

	 	 	 
	 	(h) 	
      become a party to any transaction whereby all or a
      substantial part of its property assets and undertakings or of any of its
      subsidiaries would become the property of any other Person, whether by way
      of reconstruction, reorganization, amalgamation, merger, transfer, sale,
      lease or otherwise;

	 	 	 
	 	(i) 	
      in any fiscal year of the Borrower or any of its
      subsidiaries, pay dividends on any class or kind of its shares, repurchase
      or redeem any of its shares, or reduce its capital in any way
      whatsoever.

11.3                
So long as this Agreement remains in effect, the Borrower will provide the
Lenders with the following information: 

	 	(a) 	
      within 90 days of each fiscal year end of the Borrower,
      consolidated and non consolidated financial statements of the Borrower
      prepared by an independent public accountant approved by the Lenders
      (which approval shall not be unreasonably withheld) on a review engagement
      basis, which statements must include a balance sheet, an income statement,
      a statement of retained earnings, and a statement of changes in financial
      position, and must be prepared in accordance with GAAP applied on a basis
      consistent with the statements for the previous fiscal year and be
      approved and signed by two directors of the Borrower;

	 	 	 
	 	(b) 	
      within 30 days of each calendar month end, management
      prepared monthly financial statements and aged payables and receivables
      for the Borrower;

	 	 	 
	 	(a) 	
      within 30 days of each calendar month end, an aged list
      of the Borrower’s accounts receivable; and

	 	 	 
	 	(c) 	
      at the written request of the Lenders, such other
      reports, certificates, projections of income and cash flow or other
      matters affecting its business affairs or financial condition as the
      Lenders may reasonably request from time to time.

12.                  
SECURITY

12.1                
As security for payment, observance and performance of the Borrower’s
Indebtedness, the Borrower agrees to execute and deliver the following documents
(collectively, the “Security Documents”) in a form and manner
satisfactory to the Lenders and the Lender’s 

- 11 - 

attorneys a security agreement from the Borrower creating a
security interest by way of priority security interest in the Borrower’s present
and after-acquired personal property (including its accounts receivable) and
such other collateral described in the Security Documents, subject to the terms
described therein. 

12.2                
Each Security Document is given as additional, concurrent and collateral
security to the remainder of the Security Documents and will not operate to
merge, novate or discharge the Borrower’s Indebtedness or any of the other
Security Documents. The execution and delivery of each Security Document will
not in any way suspend or affect the present or future rights and remedies of
the Lenders in respect of the Borrower’s Indebtedness, or the other Security
Documents. No action or judgment taken by the Lenders in respect of any of the
Security Documents or with respect to the Borrower’s Indebtedness will affect
the liability of the Borrower hereunder and nothing but the actual payment in
full by the Borrower to the Lenders of the Borrower’s Indebtedness will
discharge the Borrower or any of the Security Documents. 

13.                 
 EVENTS OF DEFAULT 

13.1                
Notwithstanding and without prejudice to the demand nature of the Loan, at the
option of the Lenders, the Borrower’s Indebtedness will immediately become due
and payable and this Agreement and the Security Documents will become
enforceable upon the happening of any one or more of the following events: 

	 	(a) 	
      if the Borrower:

	 	 	 	 
	 		(i) 	
      fails to make any payment of principal, interest, or
      other money payable by it hereunder or under any of the Security Documents
      when the same becomes due hereunder or thereunder which failure continues
      unremediated for more than Five (5) days, or

	 	 	 	 
	 		(ii) 	
      fails to observe or perform any covenant contained in
      this Agreement or any of the Security Documents and upon notice by the
      Lenders, the Borrower fails to cure the same within Thirty (30) days of
      the Borrower’s receipt of such notice;

	 	 	 	 
	 	(b) 	
      if any representation or warranty given by or on behalf
      of the Borrower is untrue in any material respect;

	 	 	 	 
	 	(c) 	
      if an order is made or a resolution is passed for the
      winding-up of the Borrower, or if a petition is filed for the winding-up
      of the Borrower;

	 	 	 	 
	 	(d) 	
      if the Borrower commits or threatens to commit any act of
      bankruptcy; becomes insolvent; or makes an assignment or proposal under
      applicable federal, state or other legislation in any jurisdiction, a
      general assignment in favour of its creditors, or a bulk sale of its
      assets; or if a bankruptcy petition is filed or presented against the
      Borrower;

- 12 - 

	 	(e) 	
      if a receiver, receiver and manager, or receiver-manager,
      or any person with like powers, is appointed for all or any of the
      property, assets and undertakings of the Borrower;

	 	 	 
	 	(f) 	
      if the Borrower permits any sum which has been admitted
      as due by it, or is not disputed to be due by it, and which forms or is
      capable of being made a charge upon any of its property, assets and
      undertakings in priority to any charge created by any of the Security
      Documents, to remain unpaid for 30 days after proceedings have been taken
      to enforce the same;

	 	 	 
	 	(g) 	
      if the Borrower ceases to carry on any material aspect of
      its business;

	 	 	 
	 	(h) 	
      if the Borrower makes default in payment of any of the
      Borrower’s Indebtedness or liability to the Lenders, whether secured by
      the Security Documents or not;

	 	 	 
	 	(i) 	
      if the holder (other than the Lenders) of any Lien
      against the property, assets and undertakings of the Borrower, any
      subsidiary of the Borrower, does anything to enforce or realize on such
      Lien, and if, in the reasonable opinion of the Lenders, such enforcement
      or realization would have a material adverse effect on the security for
      the Borrower’s Indebtedness or on the Borrower’s ability to repay the
      Borrower’s Indebtedness;

	 	 	 
	 	(j) 	
      if, without the prior written consent of the Lenders, the
      Borrower transfers its property, assets or undertakings or any material
      part thereof to any other Person;

	 	 	 
	 	(k) 	
      if any execution, sequestration, extent, or any other
      process of any kind is levied upon or enforced against any part of the
      property, assets or undertakings of the Borrower, any subsidiary of the
      Borrower and remains unsatisfied for a period of Thirty (30) days as to
      personal property, unless such process is disputed in good faith and, in
      the reasonable opinion of the Lenders, does not jeopardize or impair the
      security constituted by the Security Documents in any material
  way;

	 	 	 
	 	(l) 	
      if a distress or analogous process is levied upon the any
      of the property, assets or undertakings of the Borrower, any subsidiary of
      the Borrower, or any part thereof, unless the process is disputed in good
      faith and adequate security is given to pay the amount claimed in full;
      and

	 	 	 
	 	(m) 	
      if, without the prior written consent of the Lenders, the
      Borrower grants a Lien against any of its property, assets or undertakings
      other than in favour of the Lenders or the holder of a Prior Permitted
      Lien.

14.                  
SECURITIES ISSUED 

14.1                
The Lenders each represent and warrant to, and covenants and agrees with the
Borrower that: 

	 	(a) 	
      each Lender makes the Loan to the Borrower and acquires
      the Conversion right in reliance upon the Exemption from registration
      provided by Section 4(2) of the

- 13 - 

	 		
      Securities Act, Section 506 of Regulation D of the
      Securities Act, or Rule 903 of Regulation S of the Securities Act for the
      private offering of securities;

	 	 	 	 
	 	(b) 	
      each Lender is eligible to make the Loan to the Borrower
      and acquire the Securities in the Borrower under Section 4(2) of the
      Securities Act, Regulation D of the Securities Act or Regulation S of the
      Securities Act;

	 	 	 	 
	 	(c) 	
      each Lender is aware of the significant economic and
      other risks involved in making the Loan to the Borrower and in acquiring
      and/or exercising the Conversion right;

	 	 	 	 
	 	(d) 	
      the Lender has consulted with its own securities advisor
      as to its eligibility to acquire the Securities under the laws of its home
      jurisdiction and acknowledges that the Borrower has made no effort and
      takes no responsibility for the consequences to the Lenders as a non-U.S.
      investor acquiring the Securities and, in particular, in purchasing
      U.S.-based securities upon exercise, if any, of the Conversion
    right;

	 	 	 	 
	 	(e) 	
      no federal or state agency has passed upon, or make any
      finding or determination as to the fairness of this investment, and that
      there have been no federal or state agency recommendations or endorsements
      of the investment made hereunder;

	 	 	 	 
	 	(f) 	
      each Lender acknowledges that:

	 	 	 	 
	 		(i) 	
      there are substantial restrictions on the sale or
      transferability of any Securities and understands that, although the
      Borrower is a reporting company, the Lenders is purchasing unregistered
      securities;

	 	 	 	 
	 		(ii) 	
      the Borrower is not contractually obligated to register
      the Securities under the Securities Act; and

	 	 	 	 
	 		(iii) 	
      any Securities acquired by the Lenders upon exercise of
      the Conversion right may not be sold or otherwise transferred without
      registration under the Securities Act, unless an exemption from
      registration is available.

	 	 	 	 
	 	(g) 	
      each Lender has received all information and
      documentation and has asked all questions of Company representatives that
      it or its advisor deems necessary or desirable so that it can make an
      informed decision regarding the investment made hereunder;

	 	 	 	 
	 	(h) 	
      each Lender, alone or with its advisor, has enough
      knowledge and experience in financial and business matters to make it
      capable of evaluating the merits and risks of investing in the
    Company.

14.2                
Each Lender makes the Loan to the Borrower and acquires the Conversion right as
principal for its own account and not for the benefit of any other person. 

- 14 - 

15.                 
 APPOINTMENT OF ATTORNEY FOR ALL PURPOSES 

15.1                
The Lenders hereby constitute and irrevocably appoint Chelsea Capital
Corporation (the “Representative”) as the true and lawful attorney of the
Lenders for and in the name or otherwise on behalf of the Lenders with full
power of substitution to do and execute any and all acts, consents and/or
waivers that are requested by the Company to be given under this Agreement and
to receive any notices from the Company that are required to be given under this
Agreement. 

15.2                
The Company may treat the Representative as the representative of the Lenders
for all purposes, and forward all correspondence and other communications for
the Lenders to the Representative and the Representative’s instructions
regarding any aspect of this Agreement are the instructions of the Lender for
all purposes. The Company, in its discretion, may deal solely with the
Representative regarding all matters affecting or concerning the Lender,
including without limitation all communications to or from the Lenders and
amendments to this Agreement.

15.3                
The Representative is authorized to make amendments to this Agreement on behalf
of the Lenders, in the sole judgment of the Representative, acting
reasonably.

16.                 
 SECURITIES EXEMPTION 

16.1                
The Lenders acknowledge that any Securities issued pursuant hereto will have
such hold periods as are required under applicable securities laws and as a
result may not be sold, transferred or otherwise disposed, except pursuant to an
effective registration statement under the Securities Act, or pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act and in each case only in accordance with all
applicable securities laws.

16.2                
Each certificate for the Securities of the Lenders that has not been so
registered and that has not been sold under an exemption that permits removal of
the legend, shall bear a legend substantially in the following form, as
appropriate: 

  
    “THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED
      IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED
      HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT
      OF 1933, AS AMENDED (THE “SECURITIES ACT”). NONE OF THE SECURITIES
      REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE SECURITIES 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 SECURITIES ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
      UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
      IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
      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 SECURITIES ACT. “UNITED
      STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S
      UNDER THE SECURITIES ACT.” 

  

- 15 - 

16.3            
    Upon the request of the Lenders for a certificate
representing any Securities issuable pursuant hereto, the Borrower shall cause
its transfer agent to remove the foregoing legend from the certificate and issue
to the Lenders a new certificate free of any transfer legend if:

	 	(a) 	
      without an effective registration statement with such
      request, Borrower shall have received either:

	 	 	 	 
	 		(i) 	
      an opinion of counsel, in form, substance and scope
      customary for opinions in such circumstances, to the effect that any such
      legend may be removed from such certificate, or

	 	 	 	 
	 		(ii) 	
      satisfactory representations from the Lenders that the
      Lenders is eligible to sell such security under Rule 144; or

	 	 	 	 
	 	(b) 	
      a registration statement under the Securities Act
      covering the resale of such securities is in
effect.

16.4                
By executing and delivering this Agreement, each Lender resident in Canada will
have directed the Company not to include a Canadian Legend on any certificates
representing the Securities to be issued to such Lender. As a consequence, the
Lender will not be able to rely on the resale provisions of Multilateral
Instrument 45-102, and any subsequent trade in the Securities in Canada will be
a distribution subject to the prospectus and registration requirements of
Canadian securities legislation, to the extent that the trade is at that time
subject to any such Canadian securities legislation. The securities may
therefore not be traded in Canada except pursuant to a prospectus exemption.

17.                  
WAIVER 

17.1                
The Lenders may waive any breach by the Borrower of any of the provisions
contained in this Agreement or in the Security Documents or any default by the
Borrower in the observance or performance of any covenant or condition required
to be observed or performed by the Borrower under the terms of this Agreement or
any of the Security Documents; but any waiver by the Lenders of such breach or
default, or any failure to take any action to enforce its rights hereunder or
under any of the Security Documents, will not extend to or be taken in any
manner whatsoever to affect any subsequent breach or default or the rights
resulting therefrom.

18.                  
REMEDIES UNDER THIS AGREEMENT AND THE SECURITY DOCUMENTS

18.1                
Any Event of Default by the Borrower under this Agreement or under any of the
Security Documents will constitute an Event of Default under the remainder of
the Security Documents. 

18.2                
All rights and remedies stipulated for the Lenders hereunder or in any of the
Security Documents will be deemed to be in addition to and not restrictive of
the right and remedies which the Lenders might be entitled to at law or in
equity; and the Lenders may realize on the Security Documents or any part
thereof in any manner and in such order as it may be 

- 16 - 

advised, and any such realization by any means will not bar
realization of any other security or any part or parts thereof, nor will any
single or partial exercise of any right or remedy preclude any other or further
exercise thereof, nor will any failure on the part of the Lenders to exercise,
or any delay in exercising any rights under this Agreement or any of the
Security Documents operate as a waiver. 

18.3                
The acceptance by the Lenders of any further security or of any payment of or on
account of any of the Borrower’s Indebtedness after a Default or of any payment
on account of any past Default will not be construed to be a waiver of any right
in respect of any future default or of any past default not completely cured
thereby; and the Lenders may, in its uncontrolled discretion, exercise any and
all rights, powers, remedies and recourses available to it in accordance with
this Agreement and the Security Documents concurrently or individually without
the necessity of any election. 

19.                  
LAPSE AND CANCELLATION PERIODIC REVIEW 

19.1                
If, in the opinion of the Lenders, any material adverse change in risk occurs or
if the Borrower fails to comply with the conditions herein, then the Lenders’
obligations to continue to make Advances hereunder may, at the option of the
Lenders, be withdrawn or cancelled. 

20.                 
 MISCELLANEOUS

20.1                
If for the purpose of obtaining or enforcing any judgment on any matter under
this Agreement in any court in any jurisdiction, it becomes necessary to convert
into any other currency (such other currency being hereinafter called the
“Judgment Currency”) an amount due in respect of the Borrower’s
Indebtedness, then the conversion shall be made at the option of the Lenders at
the Rate of Exchange (defined below) prevailing either on the Business Day
before the date of default or on the Business Day before the day on which the
judgment is given (the date as of which such conversion is made being
hereinafter called the “Currency Conversion Date”). If there is a
change between the Rate of Exchange in effect on the Conversion Date (or any
other date which shall be specified in any judgment or judicial award) and the
Rate of Exchange in effect on the date of payment, then the Borrower covenants
and agrees to pay such additional amounts, if any, but in any event not a lesser
amount, as may be necessary, together with the amount paid in the Judgment
Currency converted at the Rate of Exchange in effect on the date of payment, to
produce the amount in the currency of the said amount due in respect of the
Borrower’s Indebtedness which could have been purchased with the amount of
Judgment Currency stipulated in the judgment or judicial award at the Rate of
Exchange in effect on the Currency Conversion Date or such other date as
specified in such judgment or judicial award. Any amount due under this clause
shall be due as a separate and independent debt and shall not be affected by
judgment being obtained for amounts otherwise due under or in respect of the
Borrower’s Indebtedness. For the purposes of this clause, “Rate of
Exchange” means, for any relevant date and currency, the spot rate at
which any large commercial bank, in accordance with its normal practice, is able
on the relevant date to purchase such currency with the Judgment Currency and
includes premiums and costs of exchange payable in connection with such
purchase. 

- 17 - 

20.2                
Each of the parties hereto will forthwith at all times, and from time to time,
at the Borrower’s sole cost and expense, do, execute, acknowledge and deliver,
or cause to be done, executed, acknowledged and delivered, all such further
acts, deeds, documents and assurances which, in the opinion of a Lenders, acting
reasonably, are necessary or advisable for the better accomplishing and
effecting of the intent of this Agreement. 

20.3                
The Borrower will pay all legal costs, registration fees and other costs
incurred by the Lenders in investigating title, preparing this Agreement and the
Security Documents and in perfecting the security for the Borrower’s
Indebtedness

20.4                
None of the execution and delivery of the Security Documents, the registration
of the Security Documents and making of any Advance will in any way merge or
extinguish this Agreement or the terms and conditions hereof, which will
continue in full force and effect.

20.5                
In the event of any inconsistency or conflict between any of the provisions of
this Agreement and any of the provisions of the Security Documents, the
provisions of this Agreement will prevail; but the omission from this Agreement
of any covenant, agreement, term, or condition contained in any of the Security
Documents will not be considered to be an inconsistency or a conflict. 

20.6                
Neither this Agreement nor any benefits hereunder may be transferred, assigned
or otherwise disposed of by the Borrower to any Person without the prior written
consent of the Lenders. 

20.7                
No amendment, waiver or modification of, or agreement collateral to, this
Agreement or any of the Security Documents will be enforceable against the
Lenders unless it is by a formal instrument in writing expressed to be a
modification of this Agreement or the Security Documents, as the case may be,
and executed in the same fashion as this Agreement. 

20.8                
All covenants and other agreements in this Agreement contained by or on behalf
of any of the parties hereto will bind and enure to the benefit of the
respective successors and assigns of the parties hereto (including, without
limitation, any transferee) whether so expressed or not; provided, however, that
the Borrower may not assign its rights or obligations hereunder to any Person.

20.9                
Any notice required or permitted to be given under this Agreement will be in
writing and may be given by delivering, sending by electronic facsimile
transmission or other means of electronic communication capable of producing a
printed copy, or sending by prepaid registered mail posted in Canada or the
United States, as the case may be, the notice to the following address or
number: 

	 	(a) 	
      If to the Borrower:

	 	 	 
	 		
      PANGLOBAL BRANDS INC.

	 		
      2853 E. Pico Blvd

	 		
      Los Angeles, CA 90023 USA

	 	 	 
	 		
      Attention:     Stephen
  Soller

- 18 - 

	 		
      Facsimile No.: (323) 266-6505 
email:
      StephenS@mynkbrand.com

	 	 	 
	 		
      with a copy to (which does not constitute
  notice):

	 	 	 
	 		
      CLARK WILSON LLP

	 	 	 
	 		800 – 885 West Georgia Street
	 		
      Vancouver, BC V6C 3H1 
Canada

	 	 	 
	 		
      Attention: Bernard Pinsky

	 	 	 
	 		
      Facsimile No.: (604) 687-6314
 email:
      bip@cwilson.com

	 	 	 
	 	(b) 	
      If to the Lenders:

	 	 	 
	 		
      To the address as set out for each Lender on Schedule
      A,

	 	 	 
	 		
      With a copy to the Representative as follows:

	 	 	 
	 		
      Chelsea Capital Corporation.

	 		666 Burrard Street,
	 		
      Vancouver, BC V6C 2X8 
Canada

	 	 	 
	 		
      Attention:         
      Darryl Yea / Michael O”Brian

	 	 	 
	 		
      Facsimile No.: (604) 688-6520 
email:
      darryl.yea@investco.ca

(or to such other address or number as any party may specify by
notice in writing to another party). 

                     Any
notice delivered or sent by electronic facsimile transmission or other means of
electronic communication capable of producing a printed copy on a business day
will be deemed conclusively to have been effectively given on the day the notice
was delivered, or the transmission was sent successfully to the number set out
above, as the case may be. Any notice sent by prepaid registered mail will be
deemed conclusively to have been effectively given on the third business day
after posting; but if at the time of posting or between the time of posting 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. 

20.10               The
descriptive headings of the several sections of this Agreement are inserted for
convenience only and do not constitute a part of this Agreement. 

20.11              
This Agreement will be construed and enforced in accordance with, and the rights
of the parties will be governed by the laws of the State of California and
applicable federal laws 

- 19 - 

thereto. The Lenders and the Borrower hereby attorn to the
courts of competent jurisdiction located in the County of Los Angeles, State of
California in any proceedings hereunder. 

20.12               The
Lenders acknowledge that they have consulted with and are represented by
separate legal counsel.

20.13              
This Agreement may be executed simultaneously in two or more counterparts, each
of which will be deemed an original, and it will not be necessary in making
proof of this Agreement to produce or account for more than one such
counterpart. This Agreement may be executed by delivery of executed signature
pages by fax or other form of electronic transmission and such transmission will
be effective for all purposes. 

20.14              
This Agreement, the schedules attached hereto and the Security Documents contain
the entire agreement between the parties with respect to the subject matter
hereof and supersede all prior arrangements and understandings, both written and
oral, expressed or implied, with respect thereto. Any preceding correspondence
is expressly superseded and terminated by this Agreement. 

20.15              
All covenants hereunder will be given independent effect so that if a particular
action or condition is prohibited by any one of such covenants, the fact that it
would be permitted by an exception to, or otherwise be in compliance within the
limitations of, another covenant will not avoid the occurrence of a Default or
Event of Default if such action is taken or such condition exists. 

20.16             Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions of this Agreement, and any such prohibition or unenforceability in
any jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction. 

20.17               At
such time as the Loan is repaid in full, Lenders shall promptly release and
discharge the Security Documents to the Borrower (or its designee), and release
all security interests which are granted to Lenders pursuant hereto. Under such
circumstances, the Lenders shall, upon the Borrower’s request, promptly return
to the Borrower all original copies of this Agreement and the Security
Agreement, and shall promptly execute such termination statements and other
documents as may be required by Borrower to evidence the same. 

      
                   IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered by their respective officers thereunto duly authorized on
the 15th day of June, 2009. 

PANGLOBAL BRANDS INC. 

Per:       /s/ Stephen
Soller

            
Authorized Signatory 

SCHEDULE A 

LIST OF LENDERS 

	Lender 	Principal Amount
    	Signature of Authorized Signatory
    
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	$_______________ 	Per:
  ________________________________________
	  	  	           
       Authorized Signatory 
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	$_______________ 	Per:
  ________________________________________
	  	  	           
       Authorized Signatory 
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	$_______________ 	Per: _____________________________________
	  	  	           
       Authorized Signatory 
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	$_______________ 	Per: _____________________________________
	  	  	           
       Authorized Signatory 
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	$_______________ 	Per: ______________________________________
	  	  	           
       Authorized Signatory 
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	$_______________ 	Per: _____________________________________
	  	  	           
       Authorized SignatoryFiled by sedaredgar.com - Panglobal Brands Inc. - Exhibit 10.2

This is Page 1 of 12 pages of a subscription agreement and
related appendices, schedules and forms. Collectively, these pages together are
referred to as the “Subscription Agreement”. 

NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT
SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE
OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN)
EXCEPT 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 SECURITIES LAWS. 

PANGLOBAL BRANDS INC. 

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT 
UNITS 

INSTRUCTIONS TO PURCHASER 

	1. 	
      This Subscription form is for use by United States
      Accredited Investors.

	 	 
	2. 	
      COMPLETE the information on page 2 of this
      Subscription Agreement.

	 	 
	3. 	
      COMPLETE the Questionnaire attached on page 5 to
      this Subscription Agreement (the “Questionnaire”).

	 	 
	4. 	
      Check or Cashier’s check should be made payable to
      Panglobal Brands Inc. For Wire instructions contact Charles Lesser, CFO of
      Panglobal CharlesL@panglobalbrand.com Tel (323) 266-6500 (Ext
    205).

Wire, check or Cashier’s check may
alternatively be payable to Clark Wilson LLP, attorneys for Panglobal Brands
Inc. Clark Wilson LLP 800 – 885 West Georgia Street, Vancouver, B.C. V6C 3H1
Attention: Bernard Pinsky. If funds are delivered to Clark Wilson LLP, they are
instructed and authorized to hold the said funds until Closing and upon Closing,
release all funds to the Company. If the transaction does not close, the funds
will be returned to the Purchaser. 

All other information must be filled in where appropriate.

	Subscription Agreement (with related appendices,
      schedules and forms) 	Page 2 of 12 

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT 

TO:        PANGLOBAL
BRANDS INC. (the “Issuer”), of 2853 E. Pico Blvd., Los Angeles, CA
90023 

Subject and pursuant to the terms set out in the Terms on pages
3 to 4, the General Provisions on pages 7 to 12 and the other schedules and
appendices attached which are hereby incorporated by reference, the Purchaser
hereby irrevocably subscribes for, and on Closing will purchase from the Issuer,
the following securities at the following price: 

	$                                           
       in value of Convertible Loan 
	 
	 
	The Purchaser owns, directly or indirectly, the following
      securities of the Issuer: 
	 
	 
	[Check if applicable] The Purchaser is [ ] an
      insider of the Issuer or [ ] a member of the professional group
  

The Purchaser directs the Issuer to issue, register and deliver
the certificates representing the Convertible Loan as follows: 

	REGISTRATION INSTRUCTIONS 	 	DELIVERY INSTRUCTIONS 
	 	 	 
	Name to appear on
      certificate 	 	Name
      and account reference, if applicable 
	 	 	 
	Account reference if
      applicable 	 	Contact
      name 
	 	 	 
	Address 	 	Address
    
	 	 	 
	  	 	Telephone Number 

EXECUTED by the Purchaser this _______ day of _____________,
2009. By executing this Subscription Agreement, the Purchaser certifies that the
Purchaser and any beneficial purchaser for whom the Purchaser is acting is
resident in the jurisdiction shown as the “Address of Purchaser”.

	WITNESS: 	 	EXECUTION BY PURCHASER: 
	 	 	 
	 	 	X 
	Signature of Witness
    	 	Signature of individual (if Purchaser is an individual)
    
	 	 	X 
	Name of Witness 	 	Authorized signatory (if Purchaser is not an individual)
    
	 	 	  
	Address of Witness
    	 	Name of
      Purchaser (please print) 
	 	 	  
	 	 	Name of
      authorized signatory (please print) 
	Accepted this day of
      ____________, 2009 	 	  
	PANGLOBAL BRANDS
      INC. 	 	Address
      of Purchaser (residence) 
	Per: 	 	  
	 	 	Telephone Number 
	Authorized Signatory
    	 	  
	 	 	E-mail
      address 
	 	 	  
	 	 	Social Security/Insurance No.:

By signing this acceptance, the Issuer agrees to be bound by
the Terms on pages 3 to 4, the General Provisions on pages 9 to 16 and the other
schedules and appendices incorporated by reference. If funds are delivered to
the Issuer’s lawyers, they are authorized to release the funds to the Issuer on
Closing. 

 

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 3 of 12 

TERMS 

	Reference date of this Subscription
      
Agreement 	
April 9, 2009 (the
      “Agreement Date”) 

The Offering 

	The Issuer 	
      Panglobal Brands Inc. (the
      “Issuer”). 

	  	
       

	Offering 	
      The offering consists of up to $2,500,000 in value of
      Convertible Loan (“Convertible Loan”) of the Issuer, issued
      pursuant to a Convertible Loan Agreement dated as of the
      date hereof. 

	  	
       

		
      Each $0.10 in value of Convertible Loan may be converted
      by the Purchaser into one Unit at any time until maturity. Each Unit
      consists of one share of Common Stock and one common share purchase
      Warrant (“Units”). 

	  	
       

	  	
      All dollar figures refer to United States dollars.
  

	  	
       

	Common Stock 	
      The voting shares of Common Stock of the Issuer par value
      $0.0001 (“Shares”) . 

	  	
       

	Warrants 	
      Each whole Warrant may be exercised for 24 months
      following the Closing Date for one share of Common Stock (a “Warrant
      Share”) at an exercise price of $0.15. The Warrants are
      non-transferrable. The Issuer will deliver a form of Warrant certificate
      and terms on Closing. 

	  	
       

	Total Amount 	
      Up to US $2,500,000 from the sale of Convertible Loans.
      

	  	
       

	Conversion Price 	
      US$0.10 per Unit. 

	  	
       

	Selling Jurisdictions 	
      The Units may be sold in jurisdictions where they may be
      lawfully sold (the ”Selling Jurisdictions”). 

	  	
       

	Exemptions 	
      The offering will be made in accordance with the
      following exemptions: 

	 	(a) 	
      the Accredited Investor exemption as defined by
      Regulation D promulgated under the 1933 Act; and

	 	 	 
	 	(b) 	
      such other exemptions as may be available the securities
      laws of the Selling Jurisdictions.

	Exemptions for Offshore 
Purchasers 	
      Such other exemptions as may be available the securities
      laws of the Selling Jurisdictions and Regulation S of the United States.
      

	  	
       

	No Registration of Securities 	
      The Convertible Loan, the Shares and the Warrants will
      not be registered with the United States Securities and Exchange
      Commission and will be tradable in compliance with Rule 144 restricted
      periods. 

	  	
       

	Resale restrictions and legends 	
      The Purchaser acknowledges that the certificates
      representing the Shares will bear the following legends: 

	  	
       

		
      “NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT
      SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 4 of 12 

		
      “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND,
      UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES OR
      TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT 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
      SECURITIES LAWS.” Purchasers are advised to consult with their own legal
      counsel or advisors to determine the resale restrictions that may be
      applicable to them. 

	  	
       

	Closing Date 	
      The completion of the sale and purchase of the
      Convertible Loan will take place in one or more closings, on a date or
      dates as agreed to by the Issuer and the Purchaser. Payment for, and
      delivery of the Convertible Loan, is scheduled to occur on or about April
      30, 2009 or such other date as may be agreed upon by the Issuer and the
      Purchaser (the “Closing Date”). 

The Issuer 

	Jurisdiction of organization 	
      The Issuer is incorporated under the laws of the State of
      Delaware. 

	  	
       

	Stock exchange listings 	
      Certain market makers make market in the Issuer’s stock
      on the National Association of Securities Dealers Inc.’s OTC Bulletin
      Board. 

	  	
       

	Commissions with Jurisdiction 
Over the
      Issuer 	
      The “Commissions with Jurisdiction Over the
      Issuer” is the United States Securities and Exchange Commission.
    

	  	
       

	Securities Legislation Applicable to 
the
      Issuer 	
      The “Securities Legislation Applicable to the
      Issuer” is the US Securities Exchange Act of 1934.

End of Terms

 

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 5 of 12 

UNITED STATES 

  ACCREDITED INVESTOR QUESTIONNAIRE

All capitalized terms herein, unless otherwise defined, have
the meanings ascribed thereto in the Subscription Agreement. 

This Questionnaire is for use by each Subscriber who is a US
person (as that term is defined Regulation S of the United States Securities Act
of 1933 (the “1933 Act”)) and has indicated an interest in purchasing Securities
of the Issuer. The purpose of this Questionnaire is to assure the Issuer that
each Subscriber will meet the standards imposed by the 1933 Act and the
appropriate exemptions of applicable state securities laws. The Issuer will rely
on the information contained in this Questionnaire for the purposes of such
determination. The Securities will not be registered under the 1933 Act in
reliance upon the exemption from registration afforded by Section 3(b) and/or
Section 4(2) and Regulation D of the 1933 Act. This Questionnaire is not an
offer of the Securities or any other securities of the Issuer in any state other
than those specifically authorized by the Issuer. 

All information contained in this Questionnaire will be treated
as confidential. However, by signing and returning this Questionnaire, each
Subscriber agrees that, if necessary, this Questionnaire may be presented to
such parties as the Issuer deems appropriate to establish the availability,
under the 1933 Act or applicable state securities law, of exemption from
registration in connection with the sale of the Securities hereunder. 

The Subscriber covenants, represents and warrants to the Issuer
that it satisfies one or more of the categories of “Accredited Investors”, as
defined by Regulation D promulgated under the 1933 Act, as indicated below:
(Please initial in the space provide those categories, if any, of an “Accredited
Investor” which the Subscriber satisfies.) 

	________	Category 1 	
      An organization described in Section 501(c)(3) of the
      United States Internal Revenue Code, a corporation, a Massachusetts or
      similar business trust or partnership, not formed for the specific purpose
      of acquiring the Securities, with total assets in excess of US $5,000,000.
      

	 	  	
       

	________	Category 2 	
      A natural person whose individual net worth, or joint net
      worth with that person’s spouse, on the date of purchase exceeds US
      $1,000,000. 

	 	  	
       

	________	Category 3 	
      A natural person who had an individual income in excess
      of US $200,000 in each of the two most recent years or joint income with
      that person’s spouse in excess of US $300,000 in each of those years and
      has a reasonable expectation of reaching the same income level in the
      current year. 

	 	  	
       

	________	Category 4 	
      A “bank” as defined under Section (3)(a)(2) of the 1933
      Act or savings and loan association or other institution as defined in
      Section 3(a)(5)(A) of the 1933 Act acting in its individual or fiduciary
      capacity; a broker dealer registered pursuant to Section 15 of the
      Securities Exchange Act of 1934 (United States); an insurance
      company as defined in Section 2(13) of the 1933 Act; an investment company
      registered under the Investment Company Act of 1940 (United
      States) or a business development company as defined in Section 2(a)(48)
      of such Act; a Small Business Investment Company licensed by the U.S.
      Small Business Administration under Section 301(c) or (d) of the Small
      Business Investment Act of 1958 (United States); a plan with
      total assets in excess of $5,000,000 established and maintained by a
      state, a political subdivision thereof, or an agency or instrumentality of
      a state or a political subdivision thereof, for the benefit of its
      employees; an employee benefit plan within the meaning of the Employee
      Retirement Income Security Act of 1974 (United States) whose
      investment decisions are made by a plan fiduciary, as defined in Section
      3(21) of such Act, which is either a bank, savings and loan association,
      insurance company or registered investment adviser, or if the employee
      benefit plan has total assets in excess of $5,000,000, or, if a
      self-directed plan, whose investment decisions are made solely by persons
      that are accredited investors. 

	 	  	
       

	________	Category 5 	
      A private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940 (United
      States). 

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 6 of 12 

	________	Category 6 	
      A director or executive officer of the Issuer. 

	 	  	
       

	________	Category 7 	
      A trust with total assets in excess of $5,000,000, not
      formed for the specific purpose of acquiring the Securities, whose
      purchase is directed by a sophisticated person as described in Rule
      506(b)(2)(ii) under the 1933 Act. 

	 	  	
       

	________	Category 8 	
      An entity in which all of the equity owners satisfy the
      requirements of one or more of the foregoing categories.

Note that prospective Subscribers claiming to satisfy one of
the above categories of Accredited Investor may be required to supply the Issuer
with a balance sheet, prior years’ federal income tax returns or other
appropriate documentation to verify and substantiate the Subscriber’s status as
an Accredited Investor. 

If the Subscriber is an entity which initialled Category 8 in
reliance upon the Accredited Investor categories above, state the name, address,
total personal income from all sources for the previous calendar year, and the
net worth (exclusive of home, home furnishings and personal automobiles) for
each equity owner of the said entity:

	 
	
      The Subscriber hereby certifies that the information
      contained in this Questionnaire is complete and accurate and the
      Subscriber will notify the Issuer promptly of any change in any such
      information. If this Questionnaire is being completed on behalf of a
      corporation, partnership, trust or estate, the person executing on behalf
      of the Subscriber represents that it has the authority to execute and
      deliver this Questionnaire on behalf of such entity.

IN WITNESS WHEREOF, the undersigned has executed this
Questionnaire as of the ___ day of  _______________, 2009. 

	If a Corporation, Partnership or Other Entity: 	 	If an Individual: 
	  	 	  
	 	 	 
	 	 	 
	Print of Type Name of Entity 	 	Signature 
	 	 	 
	 	 	 
	Signature of Authorized Signatory 	 	Print or Type Name 
	 	 	 
	 	 	 
	Type of Entity 	 	Social Security/Tax I.D. No.

 

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 7 of 12 

GENERAL PROVISIONS 

1.        
DEFINITIONS 

1.1       In the Subscription
Agreement (including the first (cover) page, the Terms on pages 3 to 4, the
General Provisions on pages 7 to 12 and the other schedules and appendices
incorporated by reference), the following words have the following meanings
unless otherwise indicated: 

	 	(a) 	
      “1933 Act” means the United States Securities Act
      of 1933, as amended;

	 	 	 
	 	(b) 	
      “Applicable Legislation” means the Securities
      Legislation Applicable to the Issuer (as defined on page 4) and all
      legislation incorporated in the definition of this term in other parts of
      the Subscription Agreement, together with the regulations and rules made
      and promulgated under that legislation and all administrative policy
      statements, blanket orders and rulings, notices and other administrative
      directions issued by the Commissions;

	 	 	 
	 	(c) 	
      “Closing” means the completion of the sale and
      purchase of the Securities;

	 	 	 
	 	(d) 	
      “Closing Date” has the meaning assigned in the
      Terms;

	 	 	 
	 	(e) 	
      “Commissions” means the Commissions with
      Jurisdiction over the Issuer (as defined on page 4) and the securities
      commissions incorporated in the definition of this term in other parts of
      the Subscription Agreement;

	 	 	 
	 	(f) 	
      “General Provisions” means those portions of the
      Subscription Agreement headed “General Provisions” and contained on
      pages 7 to 12;

	 	 	 
	 	(g) 	
      “Private Placement” means the offering of the
      Securities on the terms and conditions of this Subscription
    Agreement;

	 	 	 
	 	(h) 	
      “Securities” means the shares of Common Stock, the
      Warrants and the Warrant Shares, as defined in the Terms;

	 	 	 
	 	(i) 	
      “Subscription Agreement” means the first (cover)
      page, the Terms on pages 3 to 4, the General Provisions on pages 7 to 12
      and the other schedules and appendices incorporated by reference;
    and

	 	 	 
	 	(j) 	
      “Terms” means those portions of the Subscription
      Agreement headed “Terms” and contained on pages 3 to
4.

1.2       In the Subscription
Agreement, the following terms have the meanings defined in Regulation S of the
1933 Act (“Regulation S”): “Directed Selling Efforts”, “Foreign
Issuer”, “Substantial U.S. Market Interest”, “U.S.
Person” and “United States”. 

1.3       In the Subscription
Agreement, unless otherwise specified, currencies are indicated in US dollars.

1.4       In the Subscription
Agreement, other words and phrases that are capitalized have the meanings
assigned to them in the body hereof. 

2.        
ACKNOWLEDGEMENTS, REPRESENTATIONS AND WARRANTIES OF PURCHASER

2.1       Acknowledgements
concerning Offering 

The Purchaser acknowledges that: 

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 8 of 12 

	 	(a) 	
      the Securities have not been registered under the 1933
      Act, or under any state securities or “blue sky” laws of any state of the
      United States, and are being offered only in a transaction not involving
      any public offering within the meaning of the 1933 Act, and, unless so
      registered, may not be offered or sold in the United States or to U.S.
      Persons, except 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 Legislation;

	 	 	 
	 	(b) 	
      the Issuer 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, or in a transaction not subject
      to, the registration requirements of the 1933 Act;

	 	 	 
	 	(c) 	
      the Issuer has not undertaken, and will have no
      obligation, to register any of the Securities under the 1933
Act;

	 	 	 
	 	(d) 	
      the decision to execute this Subscription Agreement and
      purchase 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 Issuer and such decision is based entirely upon a
      review of information (the “Issuer Information”) which has been provided
      by the Issuer to the Purchaser. If the Issuer has presented a business
      plan or any other type of corporate profile to the Purchaser, the
      Purchaser acknowledges that the business plan, the corporate profile and
      any projections or predictions contained in any such documents may not be
      achieved or be achievable;

	 	 	 
	 	(e) 	
      the Purchaser and the Purchaser’s advisor(s) have had a
      reasonable opportunity to ask questions of and receive answers from the
      Issuer regarding the Offering, and to obtain additional information, to
      the extent possessed or obtainable without unreasonable effort or expense,
      necessary to verify the accuracy of the information contained in the
      Issuer Information, or any business plan, corporate profile or any other
      document provided to the Purchaser;

	 	 	 
	 	(f) 	
      the books and records of the Issuer are 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 that all documents, records and books
      pertaining to this Offering have been made available for inspection by the
      Purchaser, the Purchaser’s attorney and/or advisor(s);

	 	 	 
	 	(g) 	
      by execution hereof the Purchaser has waived the need for
      the Issuer to communicate its acceptance of the purchase of the Securities
      pursuant to this Subscription Agreement;

	 	 	 
	 	(h) 	
      the Issuer is entitled to rely on the representations and
      warranties and the statements and answers of the Purchaser contained in
      this Subscription Agreement and in the Questionnaire, and the Purchaser
      will hold harmless the Issuer from any loss or damage it may suffer as a
      result of the Purchaser’s failure to correctly complete this Subscription
      Agreement or the Questionnaire;

	 	 	 
	 	(i) 	
      the Purchaser will indemnify and hold harmless the Issuer
      and, where applicable, its respective 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 herein, the Questionnaire or in any other document
      furnished by the Purchaser to the Issuer 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
      Issuer in connection therewith;

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 9of 12 

	 	(j) 	
      the issuance and sale of the Securities to the Purchaser
      will not be completed if it would be unlawful or if, in the discretion of
      the Issuer acting reasonably, it is not in the best interests of the
      Issuer;

	 	 	 
	 	(k) 	
      the Purchaser has been advised to consult its 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 Issuer is not in any
      way responsible) for compliance with applicable resale
  restrictions;

	 	 	 
	 	(l) 	
      the Securities are not listed on any stock exchange or
      automated dealer quotation system and no representation has been made to
      the Purchaser that any of the Securities will become listed on any stock
      exchange or automated dealer quotation system, except that currently
      certain market makers make market in shares of the Issuer on the National
      Association of Securities Dealers Inc.’s OTC Bulletin Board;

	 	 	 
	 	(m) 	
      neither the Commissions or similar regulatory authority
      has reviewed or passed on the merits of the Securities;

	 	 	 
	 	(n) 	
      no documents in connection with this Offering have been
      reviewed by the SEC or any state securities administrators;

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

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

	 	 	 
	 	(q) 	
      by executing and delivering this Subscription Agreement,
      each Purchaser will have directed the Issuer not to include a Canadian
      legend on any certificates representing the Securities to be issued to
      such Purchaser. As a consequence, the Purchaser will not be able to rely
      on the resale provisions of National Instrument 45-102, as adopted by the
      securities commissions of Canada, and any subsequent trade in the
      Securities during or after the Canadian hold period described therein will
      be a distribution subject to the prospectus and registration requirements
      of Canadian securities legislation, to the extent that the trade is at
      that time subject to any such Canadian securities
  legislation.

2.2       Representations by
the Purchaser 

The Purchaser represents and warrants to the Issuer that, as at
the Agreement Date and at the Closing: 

	 	(a) 	
      the Purchaser is resident in the United States;

	 	 	 
	 	(b) 	
      the Purchaser has received and carefully read this
      Subscription Agreement;

	 	 	 
	 	(c) 	
      the Purchaser has the legal capacity and competence to
      enter into and execute this Subscription Agreement and to take all actions
      required pursuant hereto and, if the Purchaser is a corporation, 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 Subscription Agreement on behalf of the
      Purchaser;

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

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 10 of 12 

	 	(e) 	
      the Purchaser is aware that an investment in the Issuer
      is speculative and involves certain risks, including the possible loss of
      the investment;

	 	 	 
	 	(f) 	
      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, 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;

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

	 	 	 
	 	(h) 	
      the Purchaser has the requisite knowledge and experience
      in financial and business matters as to be capable of evaluating the
      merits and risks of the investment in the Securities and the Issuer, and
      the Purchaser is providing evidence of such knowledge and experience in
      these matters through the information requested in the
    Questionnaire;

	 	 	 
	 	(i) 	
      the Purchaser understands and agrees that the Issuer and
      others will rely upon the truth and accuracy of the acknowledgements,
      representations and agreements contained in this Subscription 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 Issuer;

	 	 	 
	 	(j) 	
      all information contained in the Questionnaire is
      complete and accurate and may be relied upon by the Issuer, and the
      Purchaser will notify the Issuer immediately of any material change in any
      such information occurring prior to the closing of the purchase of the
      Securities;

	 	 	 
	 	(k) 	
      the Purchaser is purchasing the Securities 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 is such
      Securities, and the Purchaser has not subdivided his interest in the
      Securities with any other person;

	 	 	 
	 	(l) 	
      the Purchaser is not an underwriter of, or dealer in, the
      common shares of the Issuer, nor is the Purchaser participating, pursuant
      to a contractual agreement or otherwise, in the distribution of the
      Securities;

	 	 	 
	 	(m) 	
      the Purchaser 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;

	 	 	 
	 	(n) 	
      the Purchaser understands and agrees that the Issuer 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 1933Act or pursuant to an available exemption from the
      registration requirements of the 1933 Act;

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

	 	 	 
	 	(p) 	
      if the Purchaser is acquiring the Securities as a
      fiduciary or agent for one or more investor accounts, the investor
      accounts for which the Purchaser acts as a fiduciary or agent satisfy the
      definition of an “Accredited Investor”, as the term is defined under
      Regulation D of the 1933 Act;

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 11 of 12 

	 	(q) 	
      if the Purchaser is acquiring the Securities as a
      fiduciary or agent for one or more investor accounts, the Purchaser has
      sole investment discretion with respect to each such account, and the
      Purchaser has full power to make the foregoing acknowledgements,
      representations and agreements on behalf of such account;

	 	 	 	 
	 	(r) 	
      the Purchaser 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

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

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

	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of any of
      the Securities;

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

	 	 	 	 
	 		(iv) 	
      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
      Issuer on any stock exchange or automated dealer quotation
  system.

2.3       Reliance, indemnity
and notification of changes 

The representations and warranties in the Subscription
Agreement (including the first (cover) page, the Terms on pages 3 to 4, the
General Provisions on pages 7 to 12 and the other schedules and appendices
incorporated by reference) are made by the Purchaser with the intent that they
be relied upon by the Issuer in determining its suitability as a purchaser of
Securities, and the Purchaser hereby agrees to indemnify the Issuer against all
losses, claims, costs, expenses and damages or liabilities which any of them may
suffer or incur as a result of reliance thereon. The Purchaser undertakes to
notify the Issuer immediately of any change in any representation, warranty or
other information relating to the Purchaser set forth in the Subscription
Agreement (including the first (cover) page, the Terms on pages 3 to 4, the
General Provisions on pages 7 to 12 and the other schedules and appendices
incorporated by reference) which takes place prior to the Closing. 

2.4       Survival of
representations and warranties 

The representations and warranties contained in this Section
will survive the Closing. 

3.      
ISSUER’S ACCEPTANCE 

The Subscription Agreement, when executed by the Purchaser, and
delivered to the Issuer, will constitute a subscription for Securities which
will not be binding on the Issuer until accepted by the Issuer by executing the
Subscription Agreement in the space provided on the face page(s) of the
Subscription Agreement and, notwithstanding the Agreement Date, if the Issuer
accepts the subscription by the Purchaser, the Subscription Agreement will be
entered into on the date of such execution by the Issuer. 

4.        
CLOSING 

4.1       On or before the end of
the business day before the Closing Date, the Purchaser will deliver to the
Issuer the Subscription Agreement and all applicable schedules and required
forms, duly executed, and payment in full for the total price of the Securities
to be purchased by the Purchaser. 

 

	Subscription Agreement (with related appendices, schedules
      and forms) 	Page 12 of 12 

4.2       At Closing, the Issuer
will deliver to the Purchaser the certificates representing the Securities
purchased by the Purchaser registered in the name of the Purchaser or its
nominee, or as directed by the Purchaser.

5.        
MISCELLANEOUS 

5.1       The Purchaser agrees to
sell, assign or transfer the Securities only in accordance with the requirements
of applicable securities laws and any legends placed on the Securities as
contemplated by the Subscription Agreement. 

5.2       The Purchaser hereby
authorizes the Issuer to correct any minor errors in, or complete any minor
information missing from any part of the Subscription Agreement and any other
schedules, forms, certificates or documents executed by the Purchaser and
delivered to the Issuer in connection with the Private Placement. 

5.3       The Issuer may rely on
delivery by fax machine of an executed copy of this subscription, and acceptance
by the Issuer of such faxed copy will be equally effective to create a valid and
binding agreement between the Purchaser and the Issuer in accordance with the
terms of the Subscription Agreement. 

5.4       Without limitation,
this subscription and the transactions contemplated by this Subscription
Agreement are conditional upon and subject to the Issuer’s having obtained such
regulatory approval of this subscription and the transactions contemplated by
this Subscription Agreement as the Issuer considers necessary. 

5.5       This Subscription
Agreement is not assignable or transferable by the parties hereto without the
express written consent of the other party to this Subscription Agreement. 

5.6       Time is of the essence
of this Subscription Agreement and will be calculated in accordance with the
provisions of the Interpretation Act (British Columbia). 

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

5.8       The parties to this
Subscription Agreement may amend this Subscription Agreement only in writing.

5.9       This Subscription
Agreement enures to the benefit of and is binding upon the parties to this
Subscription Agreement and their successors and permitted assigns. 

5.10     A party to this Subscription
Agreement will give all notices to or other written communications with the
other party to this Subscription Agreement concerning this Subscription
Agreement by hand or by registered mail addressed to the address given on page
1. 

5.11     This Subscription Agreement is to
be read with all changes in gender or number as required by the context. 

5.12     This Subscription Agreement will
be governed by and construed in accordance with the internal laws of British
Columbia (without reference to its rules governing the choice or conflict of
laws), and the parties hereto irrevocably attorn and submit to the exclusive
jurisdiction of the courts of British Columbia with respect to any dispute
related to this Subscription Agreement. 

End of General Provisions 

End of Subscription Agreement

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