Document:

BH
LLP Draft

      June
9, 2010 

    

     

    ETERNAL
ENERGY CORP.

    2549 West
Main Street, Suite 202

    Littleton,
CO 80120

    Telephone:
(303) 798-5235 Facsimile: (303) 798-5767

     

    June 18,
2010

    

    American
Eagle Energy Inc.

    27 North
27th
Street, Suite 21G

    Billings,
MT  59101

    

    Attention:  Richard
Findley

    

    Dear Mr.
Findley:

    

    
      
        	
                Re:

              	
                Hardy
      Assets; Spyglass Assets

              

    

    
      

    

     

    This
letter sets out the agreement between the undersigned concerning the matters
described below:

    

    Background

    

    A.           Eternal
Energy Corp. and its nominee, EERG Energy ULC, its wholly-owned Canadian
subsidiary (collectively, “Eternal”), own approximately
4,320 net acres located in Saskatchewan Province, Canada, and certain leases,
assets, interests, and rights related thereto, all as set forth and described in
Schedule “A” attached hereto (collectively, the “Hardy Assets”).

     

    B.           American
Eagle Energy Inc. and its nominee, AEE Canada Inc., its wholly-owned Canadian
subsidiary (collectively, “American Eagle”), own
approximately 5,990 net acres located in Divide County, North Dakota, and
certain leases, assets, interests, and rights related thereto, all as set forth
and described in Schedule “B” attached hereto (collectively, the “Spyglass
Assets”).

     

    C.           Eternal
has agreed to sell and American Eagle has agreed to purchase a 50% undivided
interest in the Hardy Assets in consideration of American Eagle’s sale to
Eternal of a 50% undivided interest in the Spyglass Assets, as described
below.

     

    Agreement

     

    Now,
therefore, the parties agree as follows:

     

    
      	
              1.

            	
              Schedules.  The
      following schedules are attached hereto and made a part of this
      Agreement:

            

    

     

    Schedule
“A”  -             Hardy
Assets

    Schedule
“B”  -              Spyglass
Assets

    Schedule
“C”  -              Form
of Operating Agreement

    

    
      	
              2.

            	
              Sale
      of Hardy
      Assets; Sale of Spyglass Assets.  Eternal, for the
      consideration set out in Clause 3, agrees to sell, convey, transfer, and
      assign to American Eagle 50% of Eternal’s right, title, estate, and
      interest in and to the Hardy Assets.  American Eagle, for the
      consideration set out in Clause 3, agrees to sell, convey, transfer, and
      assign to Eternal 50% of American Eagle’s right, title, estate, and
      interest in and to the Spyglass
Assets.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              3.

            	
              Consideration.  In
      consideration of these premises, the respective representations and
      warranties of the parties, the sale, conveyance, transfer, and assignment
      transactions contemplated herein, (i) American Eagle shall sell, convey,
      transfer, and assign to Eternal 50% of American Eagle’s right, title,
      estate, and interest in and to the Spyglass Assets and (ii) Eternal shall
      sell, convey, transfer, and assign to American Eagle 50% of Eternal’s
      right, title, estate, and interest in and to the Hardy
    Assets.

            

    

     

    
      	
              4.

            	
              Management
      and Operation of the Hardy Assets and the Spyglass
      Assets.  The management and operation of the Hardy Assets
      and the Spyglass Assets shall be governed by an Operating Agreement, the
      general form of which (subject to commercially reasonable modifications)
      is attached hereto as Schedule “C” (the “Operating
      Agreement”).  Eternal and American Eagle shall each
      execute the Operating Agreement as soon as commercially reasonable, but,
      in any event, no later than 30 days, following Closing (as defined
      below).

            

    

     

    
      	
              5.

            	
              Closing.  The
      closing shall take place on June 25, 2010 at such time, place, and manner
      as the parties may mutually agree upon in writing (the “Closing”).  On
      Closing (a) Eternal shall execute and deliver such general and specific
      conveyances, transfers, and assignments, and other documents, as American
      Eagle may reasonably require to complete the sale, conveyance, transfer,
      and assignment of the Hardy Assets, and (b) American Eagle shall
      execute and deliver such general and specific conveyances, transfers, and
      assignments, and other documents, as Eternal may reasonably require to
      complete the sale, conveyance, transfer, and assignment of the Spyglass
      Assets.  Each party shall also deliver such further
      documentation as the other party may reasonably request to complete the
      transactions contemplated hereby, including, without limitation, officer’s
      certificates in respect of each party’s representations and
      warranties.  All documentation delivered at Closing shall be in
      form and substance satisfactory to the parties, acting
      reasonably.  Eternal shall make available to American Eagle all
      of its lease and agreement files and other records pertaining to the Hardy
      Assets as soon as commercially reasonable following Closing and American
      Eagle, in turn, shall make available to Eternal all of its lease and
      agreement files and other records pertaining to the Spyglass Assets as
      soon as commercially reasonable following
  Closing.

            

    

     

    
      	
              6.

            	
              Representations
      and Warranties.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Eternal:  Eternal
      makes the following representations and warranties to American Eagle, all
      of which shall be true and accurate in all material respects as of the
      Closing:

            

    

     

    
      	
               
      

            	
              (i)

            	
              Organization and
      Standing:  Eternal Energy Corp. is a corporation duly
      organized, validly existing and in good standing under the laws of the
      State of Nevada and EERG Energy ULC is a corporation duly organized,
      validly existing and in good standing under the laws of Saskatchewan
      Canada;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Power and
      Authority:  Eternal has all requisite power and authority
      to carry on its business as presently conducted, to enter into this
      Agreement, and to perform its obligations hereunder.  This
      Agreement has been approved by all necessary corporate action on the part
      of Eternal and the consummation of this Agreement will not violate, nor be
      in conflict with, (A) any provision of the governing documents of Eternal,
      (B) any agreements to which Eternal is a party, or (C) any judgment,
      decree, ordinance, law, regulation, or
permit;

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (iii)

            	
              Enforceability:  This
      Agreement and all other agreements and instruments executed in accordance
      herewith shall constitute the valid and binding obligation of Eternal
      enforceable in accordance with their respective terms, subject to
      applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
      or similar laws affecting the rights of creditors generally and subject to
      the general principles of equity;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Sole Ownership and No
      Encumbrances:  Eternal is the sole owner of and has good
      and marketable title to the Hardy Assets, free and clear of material
      liens, claims, and encumbrances;

            

    

     

    
      	
               
      

            	
              (v)

            	
              No Consents or Rights
      of First Refusal:  There are no consents required or
      rights of first refusal or similar rights triggered as a result of the
      contemplated sale and transfer of the Hardy Assets or the transactions
      contemplated by the Closing;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              Compliance with
      Laws:  To the best of Eternal’s knowledge, all laws,
      rules, regulations, ordinances, and orders of all local, provincial, and
      federal governmental bodies having jurisdiction over the Hardy Assets have
      been complied with; and

            

    

     

    
      	
               
      

            	
              (vii)

            	
              Full
      Disclosure:  To the best of Eternal’s knowledge, none of
      the above representations and warranties fails to state a material fact
      necessary to make the statements contained therein not
      misleading.

            

    

     

    
      	
               
      

            	
              (b)

            	
              American
      Eagle:  American Eagle makes the
      following  representations and warranties to Eternal, all of
      which shall be true and accurate in all material respects as of the
      Closing:

            

    

     

    
      	
               
      

            	
              (i)

            	
              Organization and
      Standing:  American Eagle Energy Inc. is a corporation
      duly organized, validly existing and in good standing under the laws of
      the State of Nevada and AEE Canada Inc. is a corporation duly organized,
      validly existing and in good standing under the laws of Saskatchewan
      Canada;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Power and
      Authority:  American Eagle has all requisite power and
      authority to carry on its business as presently conducted, to enter into
      this Agreement, and to perform its obligations hereunder.  This
      Agreement has been approved by all necessary corporate action on the part
      of American Eagle and the consummation of this Agreement will not violate,
      nor be in conflict with, (A) any provision of the governing documents of
      American Eagle, (B) any agreements to which American Eagle is a party, or
      (C) any judgment, decree, ordinance, law, regulation, or
      permit;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Enforceability:  This
      Agreement and all other agreements and instruments executed in accordance
      herewith shall constitute the valid and binding obligation of American
      Eagle enforceable in accordance with their respective terms, subject to
      applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
      or similar laws affecting the rights of creditors generally and subject to
      the general principles of
equity;

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (iv)

            	
              Sole Ownership and No
      Encumbrances:  American Eagle is the sole owner of and
      has good and marketable title to the Spyglass Assets, free and clear of
      material liens, claims, and
encumbrances.

            

    

     

    
      	
               
      

            	
              (v)

            	
              No Consents or Rights
      of First Refusal:  There are no consents required or
      rights of first refusal or similar rights triggered as a result of the
      contemplated sale and transfer of the Spyglass Assets or the transactions
      contemplated by the Closing;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              Compliance with
      Laws:  To the best of American Eagle’s knowledge, all
      laws, rules, regulations, ordinances and orders of all local, state, and
      federal governmental bodies having jurisdiction over the Spyglass Assets
      have been complied with; and

            

    

     

    
      	
               
      

            	
              (vii)

            	
              Full
      Disclosure:  To the best of American Eagle’s knowledge,
      none of the above representations and warranties fails to state a material
      fact necessary to make the statements contained therein not
      misleading.

            

    

     

    
      	
              7.

            	
              Survival.  The
      representations and covenants of Eternal and American Eagle shall survive
      the Closing for a period of 6 months and shall be deemed to apply to all
      agreements and instruments executed in accordance herewith, it being the
      express intention of the parties that there shall not be any merger of the
      aforesaid representations and covenants notwithstanding any rule of law,
      equity, or statute to the contrary, all such rules being
      waived.  Each of Eternal and American Eagle shall indemnify the
      other from and against all claims arising within the aforesaid survival
      period that are occasioned by reason of a representation being untrue or
      inaccurate.

            

    

     

    
      	
              8.

            	
              No
      Consequential Damages.  No party shall be liable to the
      other hereunder for indirect, consequential, special, or punitive damages,
      including, without limitation, loss of future revenue, income or profits,
      diminution of value, or loss of business reputation or
      opportunity.

            

    

     

    
      	
              9.

            	
              Press
      Releases; SEC Reports.  The parties each acknowledge that
      the other is a publicly traded entity and that each shall be required to
      issue a press release and to file with the Securities and Exchange
      Commission a Current Report on Form 8-K concerning this Agreement and the
      transactions contemplated hereunder.  Nothing herein shall
      prevent a party from furnishing any information to any governmental agency
      or regulatory authority or to the public insofar and to the extent such
      disclosure is required by applicable law (including, without limitation,
      securities laws or the rules or regulations of any stock exchange or other
      trading medium applicable to such party), provided that a party that
      proposes to make such a public disclosure shall, to the extent reasonably
      possible, provide the other party with a draft of such statement in
      sufficient time prior to its release to enable such other party to review
      such draft and advise the disclosing party of any comments it may have
      with respect thereto.

            

    

     

    
      	
              10.

            	
              Amendment.  This
      Agreement may only be amended by a formal written instrument executed by
      proper signing officers for the
parties.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
              11.

            	
              Waiver.  The
      parties acknowledge and agree that any waiver of the provisions of this
      Agreement shall only be binding upon the waiving party if evidenced in
      writing and signed on behalf of the waiving party; any such waiver shall
      apply only to the particular breach, default, obligation, or provision
      specifically identified and waived and not to any other breaches,
      defaults, obligations, or provisions, whether or not similar; any such
      waiver shall not constitute a continuing waiver unless expressly stated;
      and any delay or omission on the part of a party in exercising any right
      or power under this Agreement shall not impair the ability of such party
      to exercise such right or power or be considered to be a waiver of, or
      acquiescence to, any breach or
default.

            

    

     

    
      	
              12.

            	
              Notices.  Any
      notices which may be required to be given under the terms of this
      Agreement shall be in writing and shall be considered duly delivered if
      personally delivered or sent by facsimile to the addresses of the parties
      as set out below:

            

    

     

    
      
        
          
            	
                    If to Eternal:

                  	
                    If to American Eagle:

                  
	
                    Eternal
      Energy Corp.

                    2549
      West Main Street, Suite 202

                    Littleton,
      Colorado 80120

                    Facsimile:  303.798.5767

                    Attn:    Brad
      Colby

                                Chief
      Executive Officer

                  	
                    American
      Eagle Energy Inc.

                    27
      North 27th Street, Suite 21G

                    Billings,
      Montana 59101

                    Facsimile:

                    Attn:    Richard
      Findley

                                 President

                  

          

        

      

    

     

    
      	
              13.

            	
              Non-Assignable.  This
      Agreement is not assignable by either party without the prior written
      consent of the other party, such consent not to be unreasonably withheld,
      delayed, or denied.

            

    

     

    
      	
              14.

            	
              Inurement.  This
      Agreement shall be binding upon and inure to the benefit of the parties
      and their respective successors and/or
assigns.

            

    

     

    
      	
              15.

            	
              Headings.  The
      headings utilized in this Agreement are inserted for convenience of
      reference only and shall not affect the construction of the provisions
      hereof.

            

    

     

    
      	
              16.

            	
              Gender
      and Number.  This Agreement shall be read with all
      changes in gender and number as may be required by the
      context.

            

    

     

    
      	
              17.

            	
              Conflict.  Wherever
      any provision, whether express or implied, of any schedule conflicts or is
      at variance with any provision of the main body of this Agreement, the
      provision in the main body shall prevail.  Wherever any
      provision, whether express or implied, of this Agreement conflicts or is
      at variance with any documentation issued in furtherance thereof, the
      provision of this Agreement shall
prevail.

            

    

     

    
      	
              18.

            	
              Governing
      Laws/Courts.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Governing
      Laws:  This Agreement shall, in all respects, be subject
      to, interpreted, construed, and enforced in accordance with and under the
      laws of the State of North Dakota, without regard to principals of
      conflicts of law.  To the extent that the location of the Hardy
      Assets in the Province of Saskatchewan requires the application of the
      laws in force in the Province of Saskatchewan, such laws shall be adduced
      as evidence in the North Dakota courts having jurisdiction in respect of a
      dispute arising hereunder.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              Courts:  The
      parties irrevocably attorn and submit to the exclusive jurisdiction of the
      courts of the State of North Dakota and courts of appeal therefrom in
      respect of all matters arising out of this
  Agreement.

            

    

     

    
      	
              19.

            	
              Invalidity
      of Provisions.  If any provision of this Agreement or the
      application thereof to any party or circumstance shall to any extent be
      held invalid, illegal, or unenforceable by a court of competent
      jurisdiction, the remainder of this Agreement, the application of such
      provision to parties or circumstances other than those to which it is held
      invalid, illegal, or unenforceable, or the validity, legality, or
      enforceability of such provision in any other jurisdiction shall not in
      any way be affected or impaired thereby and such provision shall be
      severable from this Agreement to the extent of such invalidity,
      illegality, or unenforceability.

            

    

     

    
      	
              20.

            	
              Negotiated
      Transaction.  The parties have participated jointly in
      the negotiation and drafting of this Agreement and, in the event an
      ambiguity or question of intent or interpretation arises, this Agreement
      shall be construed as jointly drafted by the parties and no presumption or
      burden of proof shall arise favoring or disfavoring any party by virtue of
      the authorship of any provision of this
  Agreement.

            

    

     

    
      	
              21.

            	
              Intent;
      Further Assurances.  It is Eternal’s intent to convey,
      transfer, and assign to American Eagle 50% of Eternal’s right, title,
      estate, and interest in and to the Hardy Assets, legal, beneficial, or
      equitable; and it is likewise American Eagle’s intent to convey, transfer,
      and assign to Eternal 50% of American Eagle’s right, title, estate, and
      interest in and to the Spyglass Assets, legal, beneficial, or
      equitable.  In this regard, both parties agree to execute and
      deliver all such instruments, conveyances, and other documents and do such
      other acts not inconsistent with the terms of this Agreement as may be
      necessary or advisable to carry out each party’s intent as stated
      herein.

            

    

     

    
      	
              22.

            	
              Complete
      Agreement.  This Agreement constitutes the complete
      agreement between the parties regarding the matters addressed herein and
      shall supercede all prior agreements between the parties in relation
      thereto, whether written or oral.

            

    

     

    
      	
              23.

            	
              Counterpart
      Execution/Delivery.  This Agreement may be executed in
      one or more counterparts, each of which shall be considered an original
      but all of which together shall constitute one and the same
      instrument.  In addition, facsimile or scanned email copies of
      executed counterparts shall be conclusively regarded for all purposes as
      originally executed counterparts pending the delivery of the
      originals.

            

    

     

    Please
confirm your agreement to the foregoing by signing and returning a copy of this
Agreement to the attention of the undersigned prior to 4:30 p.m. MDT on June
1, 2010.

    

    Sincerely,

    

    ETERNAL
ENERGY CORP.

    

    
      
        	
                Per:

              	
                /s/ Bradley M. Colby

              
	 
      	
                Bradley
      M. Colby

              
	 
      	
                Chief
      Executive Officer

              

      

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    AGREED to
and ACCEPTED this 18th day of
June, 2010.

    

    AMERICAN
EAGLE ENERGY INC.

    

    
      
        	
                Per:

              	
                /s/ Richard Findley

              
	 
      	
                Richard
      Findley

              
	 
      	
                President

              

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      
        	
                SCHEDULE
“A”

              

      

    

    
      

    

    HARDY
ASSETS

     

    
      
        
          	
                  Title Documents

                	 
      	
                  Lands

                
	
                  Lease
      PN62328
  

                  Converted
      from EL 00795 (Block 4067)

                	 
      	
                  4-21
      W2M: W/2 5 & All 6

                  PNG
      Surface To The Top of the Precambrian

                
	
                  Lease
      PN62329
  

                  Converted
      from EL 00795 (Block 4071)

                	 
      	
                  4-21
      W2M: N/2 & SE 9, LSDs 5 & 6, 16, 17, 18 and W/2 21

                  PNG
      Surface To The Top of the Precambrian

                
	
                  Lease
      PN61691

                    

                  (Parcel
      227)

                	 
      	
                  4-21
      W2M: NE & S/2 4

                  PNG
      Surface To The Top of the Precambrian

                
	
                  Lease
      PN61692
  
(Parcel
      228)

                	 
      	
                  4-21
      W2M: NE 5

                  PNG
      To The Top Of The Precambrian

                
	
                  Lease
      PN61693
  
(Parcel
      229)

                	 
      	
                  4-21
      W2M: 9 LSDs 3 & 4

                  PNG
      From The Top Of The Watrous Formation to the Top of the
      Precambrian

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                SCHEDULE
“B”

              

      

    

    
      

    

    SPYGLASS
ASSETS

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                SCHEDULE
“C”

              

      

    

     

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

     

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

    

    PRIVATE
PLACEMENT SUBSCRIPTION

    FOR
NON U.S. SUBSCRIBERS

    

    AMERICAN
EAGLE ENERGY INC.

    

    PRIVATE
PLACEMENT

    

    INSTRUCTIONS
TO SUBSCRIBER:

    

    
      	
              1.

            	
              COMPLETE the information
      on page 2 of this Subscription
Agreement.

            

    

    

    
      	
              2.

            	
              IF RESIDENT IN CANADA
      COMPLETE the Questionnaire attached as Schedule A to this
      Subscription Agreement (the
"Questionnaire").

            

    

    

    
      	
              3.

            	
              FAX a copy of page 2 of
      this Subscription Agreement, and all pages of the Questionnaire to
      Macdonald Tuskey, attention William L. Macdonald at (604)
      681-4760.

            

    

    

    
      	
              4.

            	
              COURIER the originally
      executed copy of the entire Subscription Agreement, together with the
      Questionnaire, to Macdonald Tuskey, counsel to the Company,
    to

            

    

    

    
      Macdonald
Tuskey, Corporate and Securities Lawyers

    

    
      1210 –
777 Hornby Street

    

    
      Vancouver,
BC, Canada   V6Z 1S4

    

    
      Attention:
William L. Macdonald

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2
 

    AMERICAN
EAGLE ENERGY INC.

    PRIVATE
PLACEMENT

     

    The
Subscriber hereby irrevocably subscribes for, and on Closing will purchase from
the Company, the following securities at a price of US$0.75 per
Share

    

    
      
        
          
            
              
                
                  
                    	
                                                                  Shares

                          
	 
      

                  

                

              

            

          

        

      

    

    

    The
Subscriber directs the Company to issue, register and deliver the certificates
representing the Shares as follows:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    REGISTRATION
      INSTRUCTIONS:

                                  	 
      	
                                    DELIVERY
      INSTRUCTIONS:

                                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                    Name
      to appear on certificate

                                  	 
      	
                                    Name
      and account reference, if applicable

                                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                    SIN/Tax
      ID No.

                                  	 
      	
                                    Contact
      name

                                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                    Address

                                  	 
      	
                                    Address

                                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                                      

                                  	
                                    Telephone
      number

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    EXECUTED
by the Subscriber this _______ day of__________, _____. By executing this
Agreement, the Subscriber certifies that the Subscriber and any beneficial
purchaser for whom the Subscriber is acting is resident in the jurisdiction
shown as the “Address of the Subscriber”. The address of the Subscriber will be
accepted by the Company as a representative as to the address of residency for
the Subscriber.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            	
                                                                                                    WITNESS:

                                                                                                  	 
      	
                                                                                                    EXECUTION BY
      SUBSCRIBER:

                                                                                                  
	 	 	 	 
	 
      	 
      	
                                                                                                    X

                                                                                                  	 
      
	
                                                                                                    Signature
      of witness

                                                                                                  	 
      	
                                                                                                    Signature
      of individual (if Subscriber is an
      individual)

                                                                                                  
	 
      	 
      	 
      
	 
      	 
      	
                                                                                                    X

                                                                                                  	 
      
	
                                                                                                    Name
      of witness

                                                                                                  	 
      	
                                                                                                    Authorized
      signatory (if Subscriber is not an
      individual)

                                                                                                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                                                                    Address
      of witness

                                                                                                  	 
      	
                                                                                                    Name
      of Subscriber (please
      print)

                                                                                                  
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 	 
      	
                                                                                                    Name
      of authorized signatory (please
      print)

                                                                                                  
	
                                                                                                    ACCEPTED
      this _______ day of ___________, _____.

                                                                                                  	 	 
      	 
      
	 	 	 	 
	
                                                                                                    AMERICAN
      EAGLE ENERGY INC.

                                                                                                  	 	 
      	Address
      of Subscriber (residence)  
	
                                                                                                    Per:

                                                                                                  	 	 
      	
                                                                                                     

                                                                                                  
	 
      	 	 
      	 
      
	
                                                                                                    Authorized
      signatory

                                                                                                  	 	 
      	Telephone
      number and e-mail address  
	 
      	 	
                                                                                                      

                                                                                                  	 
      

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    By
signing this acceptance, the Company agrees to be bound by all representations,
warranties, covenants and agreements on pages 3-11 hereof.

    

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3

     

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

    

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

     

    PRIVATE
PLACEMENT SUBSCRIPTION

    (Non U.S.
Subscribers Only)

    

    
      
        	
                TO:

              	
                AMERICAN EAGLE ENERGY INC.
      (the “Company”)

              
	 
      	
                2120
      WEST LITTLETON BLVD.,

              
	 
      	
                SUITE
      300  LITTLETON, CO
80120

              

      

    

     

    Purchase of
Shares

     

    
      	
              1.

            	
              SUBSCRIPTION

            

    

     

    1.1                    The
undersigned (the "Subscriber") hereby irrevocably subscribes for and agrees to
purchase the number of shares of the Company's common stock (the "Shares") as
set out on page 2 of this Subscription Agreement at a price of US$0.75 per Share
(such subscription and agreement to purchase being the "Subscription"), for the
total subscription price as set out on page 2 of this Subscription Agreement
(the "Subscription Proceeds"), which Subscription Proceeds are tendered
herewith, on the basis of the representations and warranties and subject to the
terms and conditions set forth herein.  The Shares are referred to as
the “Securities”.

     

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

     

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

     

    
      	
              2.

            	
              PAYMENT

            

    

     

    2.1                    The
Subscription Proceeds must accompany this Subscription Agreement.  The
Subscriber authorizes the Company's lawyers to deliver the Subscription Proceeds
to the Company if the Subscription Proceeds are delivered to the Company’s
lawyers, without further instructions required.

     

    2.2                    The
Subscriber acknowledges and agrees that this Subscription Agreement and any
other documents delivered in connection herewith will be held by the Company's
lawyers on behalf of the Company.  In the event that this Subscription
Agreement is not accepted by the Company for whatever reason within 90 days of
the delivery of an executed Subscription Agreement by the Subscriber, or the
minimum offering amount is not achieved by that time, this Subscription
Agreement, the Subscription Proceeds and any other documents delivered in
connection herewith will be returned to the Subscriber at the address of the
Subscriber as set forth in this Subscription Agreement without interest or
deduction.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4

     

    2.3                    Where
the Subscription Proceeds are paid to the Company, the Company may treat the
Subscription Proceeds as a non-interest bearing loan and may use the
Subscription Proceeds prior to this Subscription Agreement being accepted by the
Company.

     

    2.4                    If
resident in Canada, the Subscriber must complete, sign and return to the Company
an executed copy of this Subscription Agreement, the Questionnaire attached
hereto as Schedule A (the “Questionnaire”) and any other schedules attached
hereto.

     

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

     

    
      	
              3.

            	
              CLOSING

            

    

     

    3.1                    Closing
of the purchase and sale of the Shares shall occur on or before _____________,
2009, or on such other date as may be determined by the Company in its sole
discretion (the "Closing Date").  The Subscriber acknowledges that
Shares may be issued to other subscribers under this offering (the "Offering")
before or after the Closing Date.  The Company, may, at its
discretion, elect to close the Offering in one or more closings, in which event
the Company may agree with one or more subscribers (including the Subscriber
hereunder) to complete delivery of the Shares to such subscriber(s) against
payment therefore at any time on or prior to the Closing Date.

     

    
      	
              4.

            	
              ACKNOWLEDGEMENTS OF
      SUBSCRIBER

            

    

     

    4.1                    The
Subscriber acknowledges and agrees that:

     

    
      	
               
      

            	
              (a)

            	
              none
      of the Securities have been registered under the Securities Act of 1933,
      as amended (the "1933 Act"), or under any state securities or "blue sky"
      laws of any state of the United States, and 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 (as defined herein), 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 state and provincial securities
laws;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Company will refuse to register any transfer of any 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)

            	
              by
      completing the Questionnaire, the Subscriber is representing and
      warranting that the Subscriber satisfies one of the categories of
      registration and prospectus exemptions provided for in National Instrument
      45-106 ("NI 45-106") adopted by the Canadian Securities Administrators
      (the "CSA");

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      decision to execute this Subscription Agreement and purchase the Shares
      agreed to be purchased hereunder has not been based upon any oral or
      written representation as to fact or otherwise made by or on behalf of the
      Company and such decision is based solely upon a review of publicly
      available information regarding the Company available on the website of
      the United States Securities and Exchange Commission (the "SEC") available
      at www.sec.gov (the "Company
Information");

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5

     

    
      	
               
      

            	
              (e)

            	
              the
      Subscriber and the Subscriber's advisor(s) have had a reasonable
      opportunity to review the Company Information and to ask questions of and
      receive answers from the Company 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 Company Information, or any other document
      provided to the Subscriber;

            

    

     

    
      	
               
      

            	
              (f)

            	
              the
      books and records of the Company were available upon reasonable notice for
      inspection, subject to certain confidentiality restrictions, by the
      Subscriber during reasonable business hours at its principal place of
      business and that all documents, records and books pertaining to this
      Offering have been made available for inspection by the Subscriber, the
      Subscriber's attorney and/or
advisor(s);

            

    

     

    
      	
               
      

            	
              (g)

            	
              by
      execution hereof the Subscriber has waived the need for the Company to
      communicate its acceptance of the purchase of the Shares pursuant to this
      Subscription Agreement;

            

    

     

    
      	
               
      

            	
              (h)

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

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Subscriber will indemnify and hold harmless the Company 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 acknowledgment,
      representation or warranty of the Subscriber contained herein, the
      Questionnaire or in any other document furnished by the Subscriber to the
      Company in connection herewith, being untrue in any material respect or
      any breach or failure by the Subscriber to comply with any covenant or
      agreement made by the Subscriber to the Company in connection
      therewith;

            

    

     

    
      	
               
      

            	
              (j)

            	
              the
      issuance and sale of the Shares to the Subscriber will not be completed if
      it would be unlawful or if, in the discretion of the Company acting
      reasonably, it is not in the best interests of the
  Company;

            

    

     

    
      	
               
      

            	
              (k)

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

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

            	
              applicable
      resale restrictions;

            

    

     

    
      	
               
      

            	
              (l)

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

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6

     

    
      	
               
      

            	
              (m)

            	
              the
      Subscriber is outside the United States when receiving and executing this
      Subscription Agreement and is acquiring the Shares as principal for its
      own account, for investment purposes only, and not with a view to, or for,
      resale, distribution or fractionalization thereof, in whole or in part,
      and no other person has a direct or indirect beneficial interest in such
      Shares;

            

    

     

    
      	
               
      

            	
              (n)

            	
              the
      statutory and regulatory basis for the exemption claimed for the offer and
      sale of the Shares, although in technical compliance with Regulation S,
      would not be available if the offering is part of a plan or scheme to
      evade the registration provisions of the 1933
  Act;

            

    

     

    
      	
               
      

            	
              (o)

            	
              the
      Company has advised the Subscriber that, if the Subscriber is a Canadian
      resident, the Company is relying on an exemption from the requirements to
      provide the Subscriber with a prospectus and to sell the Shares through a
      person registered to sell securities and, as a consequence of acquiring
      the Shares pursuant to this exemption, certain protections, rights and
      remedies provided, including statutory rights of rescission or damages,
      will not be available to the
Subscriber;

            

    

     

    
      	
               
      

            	
              (p)

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

            

    

     

    
      	
               
      

            	
              (q)

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

            

    

     

    
      	
               
      

            	
              (r)

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

            

    

     

    
      	
               
      

            	
              (s)

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

            

    

     

    
      	
               
      

            	
              (t)

            	
              this
      Subscription Agreement is not enforceable by the Subscriber unless it has
      been accepted by the Company, and the Subscriber acknowledges and agrees
      that the Company reserves the right to reject any subscription for any
      reason.

            

    

     

    
      	
              5.

            	
              REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF THE
  SUBSCRIBER

            

    

     

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

     

    
      	
               
      

            	
              (a)

            	
              the
      Subscriber is not a U.S. Person (as defined
  herein);

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Subscriber is not acquiring the Shares for the account or benefit of,
      directly or indirectly, any U.S. Person (as defined
    herein);

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Subscriber is resident in the jurisdiction set out on page 2 of this
      Subscription Agreement;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Subscriber:

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
               
      

            	
              (iv)

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

            

    

     

    
      	
               
      

            	
              A.

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

            

    

     

    
      	
               
      

            	
              B.

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

            

    

     

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

     

    
      	
               
      

            	
              (e)

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

            

    

     

    
      	
               
      

            	
              (f)

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

            

    

     

    
      	
               
      

            	
              (g)

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

            

    

     

    
      	
               
      

            	
              (h)

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

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Subscriber 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 Subscriber 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
Subscriber;

            

    

     

    
      	
               
      

            	
              (j)

            	
              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 Subscriber, or of any agreement, written or oral, to
      which the Subscriber may be a party or by which the Subscriber is or may
      be bound;

            

    

     

    
      	
               
      

            	
              (k)

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

            

    

     

    
      	
               
      

            	
              (l)

            	
              the
      Subscriber has received and carefully read this Subscription
      Agreement;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8

     

    
      	
               
      

            	
              (m)

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

            

    

     

    
      	
               
      

            	
              (n)

            	
              the
      Subscriber 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 Company, and the Subscriber is
      providing evidence of knowledge and experience in these matters through
      the information requested in the
Questionnaire;

            

    

     

    
      	
               
      

            	
              (o)

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

            

    

     

    
      	
               
      

            	
              (p)

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

            

    

     

    
      	
               
      

            	
              (q)

            	
              the
      Subscriber is purchasing the Shares 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 Shares, and the Subscriber
      has not subdivided his interest in the Shares with any other
      person;

            

    

     

    
      	
               
      

            	
              (r)

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

            

    

     

    
      	
               
      

            	
              (s)

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

            

    

     

    
      	
               
      

            	
              (t)

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

            

    

     

    
      	
               
      

            	
              (u)

            	
              the
      Subscriber is not aware of any advertisement of any of the Shares and is
      not acquiring the Shares 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;

            

    

     

    
      	
               
      

            	
              (v)

            	
              no
      person has made to the Subscriber 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 Company on any stock
      exchange or automated dealer quotation system;
  and

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9

     

    
      	
               
      

            	
              (w)

            	
              the
      Subscriber acknowledges and agrees that the Company shall not consider the
      Subscriber's Subscription for acceptance unless the undersigned provides
      to the Company, along with an executed copy of this Subscription
      Agreement:

            

    

     

    
      	
               
      

            	
              (i)

            	
              if
      resident in Canada, a fully completed and executed Questionnaire in the
      form attached hereto as Schedule A,
and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              such
      other supporting documentation that the Company or its legal counsel may
      request to establish the Subscriber's qualification as a qualified
      investor.

            

    

     

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

     

    
      	
              6.

            	
              ACKNOWLEDGEMENT AND
      WAIVER

            

    

     

    6.1                    The
Subscriber has acknowledged that the decision to purchase the Shares was solely
made on the Company Information.  The Subscriber hereby waives, to the
fullest extent permitted by law, any rights of withdrawal, rescission or
compensation for damages to which the Subscriber might be entitled in connection
with the distribution of any of the Shares.

     

    
      	
              7.

            	
              REPRESENTATIONS AND
      WARRANTIES WILL BE RELIED UPON BY THE
  COMPANY

            

    

     

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

     

    
      	
              8.

            	
              RESALE
      RESTRICTIONS

            

    

     

    8.1                    The
Subscriber acknowledges that any resale of the Securities will be subject to
resale restrictions contained in the securities legislation applicable to the
Subscriber or proposed transferee.  The Subscriber acknowledges that
none of the Securities have been registered under the 1933 Act or the securities
laws of any state of the United States.  None of the Securities may be
offered or sold in the United States unless registered in accordance with
federal securities laws and all applicable state securities laws or exemptions
from such registration requirements are available.

     

    
      	
              9.

            	
              LEGENDING AND
      REGISTRATION OF SUBJECT
SECURITIES

            

    

     

    9.1                    The
Subscriber hereby acknowledges that upon the issuance thereof, and until such
time as the same is no longer required under the applicable securities laws and
regulations, the certificates representing the Shares will bear a legend in
substantially the following form:

     

    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 "1933
ACT").

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    10

     

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

     

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

     

    
      	
              10.

            	
              COLLECTION OF PERSONAL
      INFORMATION

            

    

     

    10.1                 
The Subscriber acknowledges and consents to the fact that the Company is
collecting the Subscriber's personal information for the purpose of fulfilling
this Subscription Agreement and completing the Offering.  The
Subscriber's personal information (and, if applicable, the personal information
of those on whose behalf the Subscriber is contracting hereunder) may be
disclosed by the Company to (a) stock exchanges or securities regulatory
authorities, (b) the Company's registrar and transfer agent, (c) Canadian tax
authorities, (d) authorities pursuant to the Proceeds of Crime (Money Laundering)
and Terrorist Financing Act (Canada) and (e) any of the other parties
involved in the Offering, including legal counsel, and may be included in record
books in connection with the Offering.  By executing this Subscription
Agreement, the Subscriber is deemed to be consenting to the foregoing
collection, use and disclosure of the Subscriber's personal information (and, if
applicable, the personal information of those on whose behalf the Subscriber is
contracting hereunder) and to the retention of such personal information for as
long as permitted or required by law or business
practice.  Notwithstanding that the Subscriber may be purchasing
Shares as agent on behalf of an undisclosed principal, the Subscriber agrees to
provide, on request, particulars as to the identity of such undisclosed
principal as may be required by the Company in order to comply with the
foregoing.

     

    
      	
              11.

            	
              COSTS

            

    

     

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

     

    
      	
              12.

            	
              GOVERNING
      LAW

            

    

     

    12.1                  This
Subscription Agreement is governed by the laws of the State of
Nevada.  The Subscriber, in its personal or corporate capacity and, if
applicable, on behalf of each beneficial purchaser for whom it is acting,
irrevocably attorns to the exclusive jurisdiction of the Courts of the State of
Nevada.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    11

     

    
      	
              13.

            	
              SURVIVAL

            

    

     

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

     

    
      	
              14.

            	
              ASSIGNMENT

            

    

     

    14.1                  This
Subscription Agreement is not transferable or assignable.

     

    
      	
              15.

            	
              SEVERABILITY

            

    

     

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

     

    
      	
              16.

            	
              ENTIRE
      AGREEMENT

            

    

     

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

     

    
      	
              17.

            	
              NOTICES

            

    

     

    17.1                  All
notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted by any standard form of
telecommunication.  Notices to the Subscriber shall be directed to the
address on page 2 and notices to the Company shall be directed to it at the
first page of this Subscription Agreement.

     

    
      	
              18.

            	
              COUNTERPARTS AND
      ELECTRONIC MEANS

            

    

     

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
A

     

    CANADIAN
QUESTIONNAIRE

     

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

     

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

     

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

     

    
      	
               
      

            	
              1.

            	
              the
      Subscriber has such knowledge and experience in financial and business
      matters as to be capable of evaluating the merits and risks of the
      transactions detailed in the Subscription Agreement and the Subscriber is
      able to bear the economic risk of loss arising from such
      transactions;

            

    

     

    
      
        	
                 
      

              	
                2.

              	
                the
      Subscriber is (tick one
      or more of the following boxes):

              
	 	 	 

      

    

    
      
        
          
            	
                    (A)

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

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (B)

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

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (C)

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

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (D)

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

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (E)

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

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (F)

                  	 
      	
                    an
      accredited investor

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (G)

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

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (H)

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

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (I)

                  	
                      

                  	
                    purchasing
      as principal Securities with an aggregate acquisition cost of not less
      than CDN$150,000

                  	
                      

                  	
                     ̈

                  

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 2 -

     

    
      
        	
                 
      

              	
                3.

              	
                if
      the Subscriber has checked box B, C, D, E, G or H in Section 2 above, the
      director, execut ive officer, founder or control person of the Company
      with whom the undersigned has the relationship is:

              
	 	 	 

      

    

     

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

     

    
      
        	
                 
      

              	
                4.

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

              
	 	 	 

      

    

    
      
        
          
            	
                    (A)

                  	 
      	
                    a
      founder of the Company

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (B)

                  	 
      	
                    an
      affiliate of a founder of the Company

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (C)

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

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (D)

                  	 
      	
                    a
      person that is a control person of the Company

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (E)

                  	 
      	
                    an
      accredited investor

                  	 
      	
                     ̈

                  
	 
      	 
      	 
      	 
      	 
      
	
                    (F)

                  	
                      

                  	
                    purchasing
      as principal Securities with an aggregate acquisition cost of not less
      than CDN$150,000

                  	
                      

                  	
                     ̈

                  

          

        

      

    

     

    
      
        	
                 
      

              	
                5.

              	
                if
      the Subscriber has checked box A, B, C or D in Section 4 above, the
      director, executive officer, founder or control person of the Company with
      whom the undersigned has the relationship is:

              
	 	 	 

      

    

     

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

     

    
      	
               
      

            	
              6.

            	
              if
      the Subscriber has ticked box F in Section 2 or box E in Section 4 above,
      the Subscriber satisfies one or more of the categories of "accredited
      investor" (as that term is defined in NI 45-106) indicated below (please
      check the appropriate box):

            

    

     

    
      	
               
      

            	
               ̈

            	
              (a)
      a Canadian financial institution as defined in National Instrument 14-101,
      or an authorized foreign bank listed in Schedule III of the Bank Act
      (Canada);

            

    

     

    
      	
               
      

            	
               ̈

            	
              (b)
      the Business Development Bank of Canada incorporated under the Business Development Bank
      Act (Canada);

            

    

     

    
      	
               
      

            	
               ̈

            	
              (c)
      a subsidiary of any person referred to in any of the foregoing categories,
      if the person owns all of the voting securities of the subsidiary, except
      the voting securities required by law to be owned by directors of that
      subsidiary;

            

    

     

    
      	
               
      

            	
               ̈

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

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 3 -

     

    
      	
               
      

            	
               ̈

            	
              (e)
      an individual registered or formerly registered under the securities
      legislation of a jurisdiction of Canada as a representative of a person
      referred to in paragraph (d);

            

    

     

    
      	
               
      

            	
               ̈

            	
              (f)
      the government of Canada or a province, or any crown corporation or agency
      of the government of Canada or a
province;

            

    

     

    
      	
               
      

            	
               ̈

            	
              (g)
      a municipality, public board or commission in Canada and a metropolitan
      community, school board, the Comite de gestion de la taxe scholaire de
      l'ile de Montreal or an intermunicipal management board in
      Québec;

            

    

     

    
      	
               
      

            	
               ̈

            	
              (h)
      a national, federal, state, provincial, territorial or municipal
      government of or in any foreign jurisdiction, or any agency
      thereof;

            

    

     

    
      	
               
      

            	
               ̈

            	
              (i)
      a pension fund that is regulated by either the Office of the
      Superintendent of Financial Institutions (Canada) or a pension commission
      or similar regulatory authority of a jurisdiction of
    Canada;

            

    

     

    
      	
               
      

            	
               ̈

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

            

    

     

    
      	
               
      

            	
               ̈

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

            

    

     

    
      	
               
      

            	
               ̈

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

            

    

     

    
      	
               
      

            	
               ̈

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

            

    

     

    
      	
               
      

            	
               ̈

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

            

    

     

    
      	
               
      

            	
               ̈

            	
              (o)
      an investment fund that distributes or has distributed securities under a
      prospectus in a jurisdiction of Canada for which the regulator or, in
      Québec, the securities regulatory authority, has issued a
      receipt;

            

    

     

    
      	
               
      

            	
               ̈

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

            

    

     

    
      	
               
      

            	
               ̈

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

            

    

     

    
      	
               
      

            	
               ̈

            	
              (r)
      a registered charity under the Income Tax Act (Canada)
      that, in regard to the trade, has obtained advice from an eligibility
      advisor or an advisor registered under the securities legislation of the
      jurisdiction of the registered charity to give advice on the securities
      being traded;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 4 -

     

    
      	
               
      

            	
               ̈

            	
              (s)
      an entity organized in a foreign jurisdiction that is analogous to any of
      the entities referred to in paragraphs (a) to (d) or paragraph (i) in form
      and function;

            

    

     

    
      	
               
      

            	
               ̈

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

            

    

     

    
      	
               
      

            	
               ̈

            	
              (u)
      an investment funds that is advised by a person registered as an advisor
      or a person that is exempt from registration as an advisor;
    or

            

    

     

    
      	
               
      

            	
               ̈

            	
              (v)
      a person that is recognized or designated by the securities regulatory
      authority or, except in Ontario and Québec, the regulator as (i) an
      accredited investor, or (ii) an exempt purchaser in Alberta or British
      Columbia after this instrument comes into
force;

            

    

     

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

     

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

     

    
      
        
          
            
              
                
                  	
                          If
      an Individual:

                        	 
      	
                          If
      a Corporation, Partnership or Other Entity:

                        
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                          Signature

                        	 
      	
                          Print
      or Type Name of Entity

                        
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                          Print
      or Type Name

                        	 
      	
                          Signature
      of Authorized Signatory

                        
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                            

                        	
                          Type
      of
Entity

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]