Document:

f8k011013ex10vi_biologix.htm

Exhibit 10.6

 

THIS AMENDING AGREEMENT is made as of the  30th day of November, 2012.

AMONG:

HAIR RESEARCH AND SCIENCE EST. a Seller incorporated under the laws of the Principality of Lichtenstein and with its principal offices at Rätikonstrasse 13, 9490 Vaduz, Liechtenstein;

(hereinafter called, the "Seller")

AND:

BIOLOGIX HAIR SCIENCE LTD., a company incorporated under the laws of Barbados and with its principal offices at The Business Center, Upton, St. Michael, Barbados;

(hereinafter called, the "Purchaser")

WHEREAS:

 

	
A.  

	
The Seller and the Purchaser have previously entered into that certain Intellectual Property Purchase and Sale Agreement dated for reference April 11, 2012 (the "Purchase Agreement"), which Purchase Agreement incorporated the Convertible Grid Promissory Note dated for reference April 11, 2012 (the “Convertible Note”);

 

	
B.  

	
The Seller and the Purchaser now wish to make certain amendments to the provisions of the Purchase Agreement and the Convertible Note; and

 

NOW THEREFORE THIS AMENDING AGREEMENT WITNESSETH that in consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which is also hereby acknowledged by each of the parties hereto, the parties hereto hereby agree as follows:

 

	
1.  

	
All capitalized terms not otherwise defined herein shall have the meanings set out in the Purchase Agreement and Convertible Note, as applicable.

 

	
2.  

	
Section 3.1 of the Purchase Agreement is deleted in its entirety and is replaced with the following:

 

Section 3.1                      Purchase Price. In full consideration of all rights and title and interest granted to Purchaser hereunder, and in consideration of Seller’s representations, warranties and covenants hereunder, the Purchaser agrees to deliver to the Seller $10,640,000 payable to the Seller as follows:

 

	
(i)  

	
US $100,000 upon execution of this Agreement by the parties;

 

  

  

  

 

	
(ii)  

	
500,000 common shares of Biologix Hair Inc. (a company incorporated under the laws of the State of Florida with its principal offices at 82 Avenue Road, Toronto, Ontario  M5R 2H2), valued at US$1 per common share, which shares shall be issued on or before June 30th, 2012 pursuant to the a share subscription agreement in the form attached hereto as Schedule “E”;

 

	
(iii)  

	
US$10,040,000 in the form of a promissory note (the “Promissory Note”) granted to the seller in the form attached hereto as Schedule “C” and for which the following payment schedule has been agreed:

 

	
●  

	

US $500,000 on or before June 30, 2012;

 

	
●  

	

US $1,040,000 on or before February 28th, 2013;

 

	
●  

	

US $2,000,000 on or before June 30th, 2013;

 

	
●  

	

US $3,000,000 on or before October 31st, 2013; and

 

	
●  

	

US $3,500,000 on or before January 31st, 2014.

 

	
3.  

	
Schedule “C” (Convertible Grid Promissory Note dated for reference April 11, 2012) of the Purchase Agreement is deleted in its entirety and is replaced with the Convertible Grid Promissory Note attached hereto as Exhibit 1.

 

	
4.  

	
The Subscription Agreement between Biologix Hair Inc. and the Seller attached hereto as Exhibit 2 shall be incorporated into the Purchase Agreement as Schedule “E”.

 

	
5.  

	
In all other respects the terms and conditions of the Purchase Agreement shall continue in full force and effect and the Purchaser hereby agrees and confirms that the Purchase Agreement is in good standing and that the Seller is not in default of any of its obligations under the Purchase Agreement.

 

	
6.  

	
Each of the parties hereto agrees to do and/or execute all such further and other acts, deeds, things, devices, documents and assurances as may be required in order to carry out the true intent and meaning of this Amending Agreement.

 

	
7.  

	
This Amending Agreement shall enure to the benefit of and be binding upon the parties hereto and each of their successors and permitted assigns, as the case may be.

 

	
8.  

	
This Amending Agreement may be executed in counterparts and by electronic or facsimile transmission, each of which shall be deemed to be an original and all of which shall constitute one and the same document.

 

  

2

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Amending Agreement as of

the day and year first above written.

 

	
HAIR RESEARCH AND SCIENCE EST.

	 
	 	 	 
	
By: 

	/s/ Renzo Zanolari	 
	 	Renzo Zanolari, lic.iur	 
	Its: 	Director	 
	 	 	 

	

BIOLOGIX HAIR SCIENCE LTD.

	 
	 	 	 
	
By: 

	/s/ David Csumrik	 
	 	David Csumrik	 
	Its: 	President and Director	 
	 	 

       

  

3

  

 

EXHIBIT 1 TO AMENDING AGREEMENT DATED AUGUST 1, 2012

 

SCHEDULE “C”

 

CONVERTIBLE GRID PROMISSORY NOTE

 

 

	USD$10,040,000.00	
 DATE: APRIL 11, 2012

 

	
1.  

	
Promise to Pay

 

FOR VALUE RECEIVED Biologix Hair Science Ltd. (together with its successors, the “Borrower”) unconditionally promises to pay to Hair Research And Science Est. (the “Lender”), its successors (including any successor by reason of amalgamation) and assigns, or to its order in lawful money of the United States of America, the amount of TEN  MILLION AND FORTY THOUSAND DOLLARS ($10,040,000.00) (the “Principal Amount”) together with interest on the Principal Amount outstanding from time to time under this promissory note (this “Note”), all as recorded by the Lender on the grid attached hereto as Schedule 1 and, if applicable, on any grids attached hereto as subsequently numbered Schedules (collectively, the “Grid”). The Principal Amount outstanding together with accrued and unpaid interest shall be due and be paid in accordance with the following schedule:

 

	
●  

	

US $500,000 on or before June 30, 2012;

 

	
●  

	

US $1,040,000 on or before February 28th, 2013;

 

	
●  

	

US $2,000,000 on or before June 30th, 2013;

 

	
●  

	

US $3,000,000 on or before October 31st, 2013 and;

 

	
●  

	

US $3,500,000 on or before January 31st, 2014.

 

Each of the above payment deadlines are sometimes referred to herein as the “Maturity Date.”  Capitalized terms used but not defined herein have the meanings given in the Intellectual Property Purchase and Sale Agreement between the Borrower and the Lender dated the date of this Note (the “Purchase Agreement”).

 

	
2.  

	
Interest

 

The Principal Amount outstanding at any time and from time to time shall bear interest from and including the date hereof to but excluding the Maturity Date at the rate of 5% per annum (calculated on the basis of a year of 365 days). Such interest shall be calculated and accrue daily and shall be payable (without compounding) July 31, 2014.

 

Following the occurrence of an Event of Default, the Principal Amount outstanding at any time and from time to time and any accrued but unpaid interest shall bear interest at the rate equal to 12% per annum (calculated on the basis of a year of 365 days).  Such interest shall accrue daily and shall be payable on demand.

 

	
3.  

	
Criminal Rate of Interest

 

In no event shall the aggregate interest payable to the Lender under this Note exceed the effective annual rate of interest lawfully permitted under the law of Liechtenstein or any other law applicable to the Seller or the Borrower.  Further, if any payment, collection or demand pursuant to this Note in respect of such interest is determined to be contrary to any provisions of applicable laws, such payment, collection, or demand shall be deemed to have been made by mutual mistake of the Lender and the Borrower and such “interest” shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by law or so result in the receipt by the Lender of interest at a rate not in contravention of applicable law.

 

  

4

  

 

	
4.  

	
Interest Rate

 

Each interest rate which is calculated under this Note on any basis other than a full calendar year (the “deemed interest period”) is equivalent to a yearly rate calculated by dividing such interest rate by the actual number of days in the deemed interest period, then multiplying such result by the actual number of days in the calendar year (365 or 366).

 

	
5.  

	
Prepayment

 

The Borrower shall be entitled to prepay all or any portion of the Principal Amount outstanding, provided that the Borrower has first provided at least 30 days’ prior written notice to the Holder (as defined below). For greater certainty, the Holder shall be entitled to elect to exercise the right of conversion provided for in this Note during such 30-day notice period. Any payments in respect of amounts due under this Note shall be applied first in satisfaction of any accrued and unpaid interest, and then to the Principal Amount outstanding.

 

	
6.  

	
Conversion

 

The Lender may, at the Lender’s option, at any time and from time to time prior to the close of business of the Borrower on the fifth business day prior to the Maturity Date, elect to convert, in whole or in part, the Principal Amount outstanding and accrued but unpaid interest into common shares (“Common Shares”) in the capital of the Biologix Hair Inc. (the “Borrower Parent”), a company incorporated under the laws of the State of Florida with its principal offices at 82 Avenue Road, Toronto, Ontario  M5R 2H2.. Each Common Share so issued will for these purposes be valued based on a conversion price (the “Conversion Price”) equal to: (i) if the Borrower Parent is a privately held company upon the Notice of Conversion, the greater of (a) US$1 per Common Share and (b) the price per Common Share of most recent private placement of securities completed by the Borrower Parent as at the applicable Maturity Date less 20%; or (ii) if upon the Notice of Conversion the Borrower Parent is a public company whose securities are listed on a stock exchange or quoted on an over-the-counter quotation system (whether directly or resulting from a Capital Reorganization (as defined in Section 7 (b) (iv) below)), a price per Common Share equal to the average daily closing price of the Common Shares during the 10 day period beginning on the date of the Notice of Conversion, less 20%.

The Lender, or the current holder of this Note (the “Holder”), shall give a minimum of five business days prior written notice (“Notice of Conversion”) to the Borrower and the Borrower Parent at their address for purposes of notice under Section 13 together with the Conversion Form attached hereto as Exhibit B exercising the right to convert this Note in accordance with the provisions hereof. Thereupon the Holder shall be entitled to be entered in the books of the Borrower Parent as at the date of conversion as the holder of the number of Common Shares into which this Note (or the portion converted) is convertible in accordance with the provisions of this Section and, as soon as practicable thereafter and upon surrender of this Note to the Borrower, the Borrower Parent shall deliver to the Holder a certificate or certificates for such Common Shares.

 

If the Lender provides a Notice of Conversion to the Borrower and Borrower Parent with respect to the conversion of a portion of the principal amount outstanding under this Note, the Borrower shall issue to the Lender a new convertible promissory note, having the same terms and conditions as this Note, representing the principal amount of the Note not converted.

 

For the purposes of this Section, this Note shall be deemed to be surrendered for conversion on the date (herein called “Conversion Date”) which is five business days following the date on which Notice of Conversion is received by the Borrower and Borrower Parent, provided that if this Note is surrendered for conversion on a day on which the register of Common Shares is closed, the Holder shall become the holder of record of such Common Shares as at the date on which such register is next re-opened.

 

  

5

  

 

The Borrower Parent shall not be required to issue fractional Common Shares upon the exercise of any conversion right. In lieu of fractional Common Shares, the number of Common Shares issuable on conversion shall be rounded up or down, as the case may be, to the nearest whole Common Share. For greater certainty, no cash payments shall be made by the Borrower or Borrower Parent in lieu of issuing any fractional interest in a Common Share.

 

The Borrower Parent covenants that it will issue and deliver to the Lender certificates evidencing such number of Common Shares as shall then be issuable upon the conversion of this Note or such portion of it as is specified in the Notice of Conversion.  The Borrower Parent covenants that all Common Shares which shall be so issuable shall be duly and validly issued as fully paid and non-assessable. The Lender acknowledges and agrees that such certificates may bear legends regarding applicable restrictions on transfers of the Common Shares under applicable Canadian and U.S. securities laws. The Borrower Parent represents and warrants that a sufficient number of Common Shares are authorized and have been reserved for issuance to satisfy the Borrower’s and Borrower Parent’s obligations on conversion of the Note.

 

The Borrower Parent shall not declare or pay dividends in respect of the Common Shares following receipt by the Borrower Parent of the Notice of Conversion, until after the Conversion Date.

 

	
7.  

	
Anti-Dilution Protection

 

	
(a)  

	
Definitions:  For the purposes of this Section 7, unless there is something in the subject matter or context inconsistent therewith, the words and terms defined below shall have the respective meanings specified therefor in this Section 7:

 

	
(i)  

	
“Adjustment Period” means the period commencing on the date of issue of the Note and ending at the Maturity Date;

 

	
(ii)  

	
“Current Market Price” of the Common Shares at any date means the price per share equal to the weighted average price at which the Common Shares have traded on the Over-the-Counter Bulletin Board or such other stock exchange or over-the-counter market as may be selected by the directors of the Borrower Parent for such purpose during the period of any twenty consecutive trading days ending not more than five business days before such date; provided that the weighted average price shall be determined by dividing the aggregate sale price of all Common Shares sold on the said exchange or market, as the case may be, during the said twenty consecutive trading days by the total number of Common Shares so sold; and provided further that if the Common Shares are not then listed on any stock exchange or traded in the over-the-counter market, then the Current Market Price shall be determined by a firm of independent chartered accountants selected by the directors of the Borrower Parent;

 

	
(iii)  

	
“director” means a director of the Borrower Parent for the time being and, unless otherwise specified herein, a reference to action “by the directors” means action by the directors of the Borrower Parent as a board or, whenever empowered, action by the executive committee of such board; and

 

	
(iv)  

	
“trading day” with respect to a stock exchange or over-the-counter market means a day on which such stock exchange or market is open for business.

 

	
(b)  

	
Adjustments:  Subject to Section 7(5), the Conversion Price shall be subject to adjustment from time to time in the events and in the manner provided as follows:

 

	
(i)  

	
If at any time during the Adjustment Period the Borrower Parent shall:

 

	
(A)  

	
fix a record date for the issue of, or issue, Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend;

 

  

6

  

 

	
(B)  

	
fix a record date for the distribution to, or make a distribution to, the holders of all or substantially all of the outstanding Common Shares payable in Common Shares or securities exchangeable for or convertible into Common Shares;

 

	
(C)  

	
subdivide the outstanding Common Shares into a greater number of Common Shares; or

 

	
(D)  

	
consolidate the outstanding Common Shares into a smaller number of Common Shares,

 

(any of such events in subsections (i), (ii), (iii) and (iv) above being herein called a “Common Share Reorganization”), the Conversion Price shall be adjusted on the earlier of the record date on which holders of Common Shares are determined for the purposes of the Common Share Reorganization and the effective date of the Common Share Reorganization to the amount determined by multiplying the Conversion Price in effect immediately prior to such record date or effective date, as the case may be, by a fraction:

 

	
(1)  

	
the numerator of which shall be the number of Common Shares outstanding on such record date or effective date, as the case may be, before giving effect to such Common Share Reorganization; and

 

	
(2)  

	
the denominator of which shall be the number of Common Shares which will be outstanding immediately after giving effect to such Common Share Reorganization (including in the case of a distribution of securities exchangeable for or convertible into Common Shares the number of Common Shares that would have been outstanding had such securities been exchanged for or converted into Common Shares on such date).

 

To the extent that any adjustment in the Conversion Price occurs pursuant to this Section 7(b)(i) as a result of the fixing by the Borrower Parent of a record date for the distribution of securities exchangeable for or convertible into Common Shares, the Conversion Price shall be readjusted immediately after the expiry of any relevant exchange or conversion right to the Conversion Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right.

 

	
(ii)  

	
If at any time during the Adjustment Period the Borrower Parent shall fix a record date for the issue or distribution to the holders of all or substantially all of the outstanding Common Shares of rights, options or warrants pursuant to which such holders are entitled, during a period expiring not more than forty-five days after the record date for such issue (such period being the “Rights Period”), to subscribe for or purchase Common Shares or securities exchangeable for or convertible into Common Shares at a price per share to the holder (or in the case of securities exchangeable for or convertible into Common Shares, at an exchange or conversion price per share) at the date of issue of such securities of less than the Current Market Price of the Common Shares on such record date (any of such events being called a “Rights Offering”), the Conversion Price shall be adjusted effective immediately after the record date for such Rights Offering to the amount determined by multiplying the Conversion Price in effect on such record date by a fraction:

 

	
(A)  

	
the numerator of which shall be the aggregate of

 

	
(1)  

	
the number of Common Shares outstanding on the record date for the Rights Offering, and

 

	
(2)  

	
the quotient determined by dividing

 

  

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A.  

	
either (a) the product of the number of Common Shares offered during the Rights Period pursuant to the Rights Offering and the price at which such Common Shares are offered, or, (b) the product of the exchange or conversion price of the securities so offered and the number of Common Shares for or into which the securities offered pursuant to the Rights Offering may be exchanged or converted, as the case may be, by

 

	
B.  

	
the Current Market Price of the Common Shares as of the record date for the Rights Offering; and

 

	
(B)  

	
the denominator of which shall be the aggregate of the number of Common Shares outstanding on such record date and the number of Common Shares offered pursuant to the Rights Offering (including in the case of the issue or distribution of securities exchangeable for or convertible into Common Shares the number of Common Shares for or into which such securities may be exchanged or converted).

 

If by the terms of the rights, options, or warrants referred to in this Section 7(b)(ii), there is more than one purchase, conversion or exchange price per Common Share, the aggregate price of the total number of additional Common Shares offered for subscription or purchase, or the aggregate conversion or exchange price of the convertible or exchangeable securities so offered, shall be calculated for purposes of the adjustment on the basis of the lowest purchase, conversion or exchange price per Common Share, as the case may be.  Any Common Shares owned by or held for the account of the Borrower Parent shall be deemed not to be outstanding for the purpose of any such calculation.  To the extent that any adjustment in the Conversion Price occurs pursuant to this Section 7(b)(ii) as a result of the fixing by the Borrower Parent of a record date for the issue or distribution of rights, options or warrants referred to in this Section 7(b)(ii), the Conversion Price shall be readjusted immediately after the expiry of any relevant exchange, conversion or exercise right to the Conversion Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right.

 

	
(iii)  

	
If at any time during the Adjustment Period the Borrower Parent shall fix a record date for the issue or distribution to the holders of all or substantially all of the outstanding Common Shares of:

 

	
(A)  

	
shares of the Borrower Parent of any class other than Common Shares;

 

	
(B)  

	
rights, options or warrants to acquire Common Shares or securities exchangeable for or convertible into Common Shares (other than rights, options or warrants pursuant to which holders of Common Shares are entitled, during a period expiring not more than forty-five days after the record date for such issue, to subscribe for or purchase Common Shares or securities exchangeable for or convertible into Common Shares at a price per share (or in the case of securities exchangeable for or convertible into Common Shares at an exchange or conversion price per share) at the date of issue of such securities to the holder of at least the Current Market Price of the Common Shares on such record date);

 

	
(C)  

	
evidences of indebtedness of the Borrower Parent; or

 

	
(D)  

	
any property or assets of the Borrower Parent;

 

and if such issue or distribution does not constitute a Common Share Reorganization or a Rights Offering (any of such non-excluded events being herein called a “Special Distribution”), the Conversion Price shall be adjusted effective immediately after the record date for the Special Distribution to the amount determined by multiplying the Conversion Price in effect on the record date for the Special Distribution by a fraction:

 

  

8

  

 

	
(1)  

	
the numerator of which shall be the difference between

 

	
A.  

	
the product of the number of Common Shares outstanding on such record date and the Current Market Price of the Common Shares on such record date, and

 

	
B.  

	
the fair value, as determined in good faith by the directors of the Borrower Parent, to the holders of Common Shares of the shares, rights, options, warrants, evidences of indebtedness or property or assets to be issued or distributed in the Special Distribution, and

 

	
(2)  

	
the denominator of which shall be the product obtained by multiplying the number of Common Shares outstanding on such record date by the Current Market Price of the Common Shares on such record date.

 

Any Common Shares owned by or held for the account of the Borrower Parent shall be deemed not to be outstanding for the purpose of such calculation.  To the extent that any adjustment in the Conversion Price occurs pursuant to this Section 7(b)(iii) as a result of the fixing by the Borrower Parent of a record date for the issue or distribution of rights, options or warrants to acquire Common Shares or securities exchangeable for or convertible into Common Shares referred to in this Section 7(b)(iii), the Conversion Price shall be readjusted immediately after the expiry of any relevant exercise, exchange or conversion right to the amount which would then be in effect based upon the number of Common Shares issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right.

 

	
(iv)  

	
If at any time during the Adjustment Period there shall occur:

 

	
(A)  

	
a reclassification or redesignation of the Common Shares, any change of the Common Shares into other shares or securities or any other capital reorganization involving the Common Shares other than a Common Share Reorganization;

 

	
(B)  

	
a consolidation, amalgamation, arrangement or merger of the Borrower Parent with or into another body corporate which results in a reclassification or re-designation of the Common Shares or a change of the Common Shares into other shares or securities;

 

	
(C)  

	
the transfer of the undertaking or assets of the Borrower Parent as an entirety or substantially as an entirety to another Company or entity;

 

(any of such events being called a “Capital Reorganization”), after the effective date of the Capital Reorganization the Holder shall be entitled to receive, and shall accept, for the same aggregate consideration, upon conversion of the Note, in lieu of the number of Common Shares to which the Holder was theretofor entitled upon the conversion of the Note, the kind and aggregate number of shares and other securities or property resulting from the Capital Reorganization which the Holder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Holder had been the registered holder of the number of Common Shares which the Holder was theretofore entitled to purchase or receive upon the conversion of the Note.  If necessary, as a result of any such Capital Reorganization, appropriate adjustments shall be made in the application of the provisions of this Note with respect to the rights and interests thereafter of the Holder to the end that the provisions shall thereafter correspondingly be made applicable as nearly as may reasonably be possible in relation to any shares or other securities or property thereafter deliverable upon the conversion of the Note.

 

  

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(v)  

	
If at any time during the Adjustment Period any adjustment or readjustment in the Conversion Price shall occur pursuant to the provisions of Sections 7(b)(i), (ii), or (iii) of this Note, then the number of Common Shares purchasable upon the subsequent conversion of the Note shall be simultaneously adjusted or readjusted, as the case may be, by multiplying the number of Common Shares issuable on conversion of the Note immediately prior to such adjustment or readjustment by a fraction which shall be the reciprocal of the fraction used in the adjustment or readjustment of the Conversion Price.

 

	
(c)  

	
Rules:  Subject to Section 7(d), the following rules and procedures shall be applicable to adjustments made pursuant to this Section 7:

 

	
(i)  

	
Subject to the following sections of this Section 7(c), any adjustment made pursuant to Section 7 shall be made successively whenever an event referred to therein shall occur.

 

	
(ii)  

	
No adjustment in the Conversion Price shall be required unless such adjustment would result in a change of at least one per cent in the then Conversion Price; provided, however, that any adjustments which except for the provision of this subsection (ii) would otherwise have been required to be made shall be carried forward and taken into account in any subsequent adjustment.  Notwithstanding any other provision of Section 7, no adjustment of the Conversion Price shall be made which would result in an increase in the Conversion Price (except in respect of a consolidation of the outstanding Common Shares).

 

	
(iii)  

	
If at any time during the Adjustment Period the Borrower Parent shall take any action affecting the Common Shares, other than an action or event described in Section 7, which in the opinion of the directors would have a material adverse effect upon the rights of the Holder, the Conversion Price shall, subject to any necessary regulatory approval, be adjusted in such manner and at such time as the directors may determine to be equitable in the circumstances, provided that no such action shall be taken unless and until the Holder has been provided with notice of such proposed action and the consequences thereof.

 

	
(iv)  

	
If the Borrower Parent sets a record date to determine holders of Common Shares for the purpose of entitling such holders to receive any dividend or distribution or any subscription or purchase rights and shall thereafter and before the distribution to such holders of any such dividend, distribution or subscription or purchase rights legally abandon its plan to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Conversion Price shall be required by reason of the setting of such record date.

 

	
(v)  

	
No adjustment in the Conversion Price shall be made in respect of any event described in Section 7 if the Holder is entitled to participate in such event on the same terms mutatis mutandis as if the Holder had converted the Note prior to or on the record date or effective date, as the case may be, of such event. Any such participation by the Holder is subject to regulatory approval.

 

	
(vi)  

	
In any case in which this Note shall require that an adjustment shall become effective immediately after a record date for an event referred to in Section 7 hereof, the Borrower Parent may defer, until the occurrence of such event:

 

	
(A)  

	
issuing to the Holder, to the extent that the Note is converted after such record date and before the occurrence of such event, the additional Common Shares issuable upon such exercise by reason of the adjustment required by such event; and

 

	
(B)  

	
delivering to the Holder any distribution declared with respect to such additional Common Shares after such record date and before such event;

 

  

10

  

 

provided, however, that the Borrower Parent hall deliver to the Holder an appropriate instrument evidencing the right of the Holder upon the occurrence of the event requiring the adjustment, to an adjustment in the Conversion Price or the number of Common Shares purchasable upon the conversion of the Note and to such distribution declared with respect to any such additional Common Shares issuable on the conversion of the Note.

 

	
(d) 

	
Notice:  Subject to Section 7(e), at least 21 days prior to the earlier of the record date or effective date of any event which requires or might require an adjustment in any of the rights of the Holder under this Note, including the Conversion Price, the Borrower Parent shall deliver to the Holder a certificate of the Borrower Parent specifying the particulars of such event and, if determinable, the required adjustment and the calculation of such adjustment.  In case any adjustment for which a notice in this Section 7(d) has been given is not then determinable, the Borrower Parent shall promptly after such adjustment is determinable deliver to the Holder a certificate providing the calculation of such adjustment.  The Borrower Parent hereby covenants and agrees that the register of transfers and share transfer books for the Common Shares will be open, and that the Borrower Parent will not take any action which might deprive the Holder of the opportunity of exercising the rights of conversion contained in this Note, during such 21 day period.

 

	
(e) 

	
Board Discretion: Notwithstanding any of the foregoing provisions of this Section 7, the board of directors of the Borrower Parent may, subject to any required regulatory approval, vary the procedures described in this Section 7 if it determines in good faith having regard to the intentions underlying these provisions that such procedures would yield an unintended result, provided that such varied procedures are not prejudicial to the interests of the Holder, and the Holder is provided with notice of such proposed variation and the consequences thereof.

 

	
8.  

	
Covenants

 

(a)            Corporate Existence. Each of the Borrower and Borrower Parent shall do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence. Each of the Borrower and Borrower Parent shall cause each of its subsidiaries to preserve and keep in full force and effect its corporate, partnership or other existence, in each case, except as would not otherwise have a material adverse effect on the business, assets, operations, condition, financial or otherwise, of the Borrower or Borrower Parent, and their respective subsidiaries, taken as a whole.

 

(b)           Ranking. The Borrower shall not permit any of its subsidiaries to guarantee or otherwise be liable for, directly or indirectly, any indebtedness for borrowed money unless such subsidiary shall provide a guarantee of the obligations of the Borrower hereunder. The Borrower shall not and shall not permit any of its subsidiaries to, directly or indirectly, create, incur, assume or suffer to exist any lien that secures obligations under any indebtedness for borrowed money (including any guarantee in respect thereof) unless the obligations of the Borrower hereunder (and the obligations of any subsidiary under any guarantee provided in connection herewith) rank in subordination to this Note.

 

(c)           Fundamental Changes. The Borrower shall not, and shall not permit any of its subsidiaries to, enter into any transaction whereby all or substantially all of the assets of the Borrower and its subsidiaries (determined on a consolidated basis) would become the property of any other person (whether by way of reorganization, merger, amalgamation, arrangement, consolidation, transfer, sale or otherwise).

 

(d)           Inspection.The Lender shall have the right, through an independent certified public accountant (provided that such independent certified public accountant is not compensated on a contingency basis), subject to execution of a written non-disclosure agreement with the Borrower Parent or Borrower, as applicable, in form and content satisfactory to the Borrower Parent and Borrower Parent, in their reasonable discretion, to inspect books of account and other records, relating exclusively to the subject matter of this Agreement, for the purposes of assessing and verifying in interest in conversion pursuant to this Agreement.  The Borrower and Borrower Parent shall each have the right to have a representative present at all such inspections.  The Lender warrants that all such audits shall be carried out in a manner calculated not to unreasonably interfere with the conduct of the Borrower’s or Borrower Parent’s business.  The cost of such inspection, examination or audit shall be borne by the Lender.  The Lender shall have the right to exercise its right of inspection hereunder once per 12 month period following the date of this Agreement.  Inspections shall take place during normal business hours at the Borrower or the Borrower Parent’s place of business (as applicable) and shall not exceed 3 business days or 12 hours in the aggregate per annual inspection.  Lender shall provide Borrower and Borrower Parent with not less than 30 days notice prior to any inspection.

 

  

11

  

 

	
9.  

	
Events of Default

 

All amounts due under this Note shall immediately become due and payable without any notice, presentation, demand, protest or other action or notice to the Borrower if any one or more of the following events of default (an “Event of Default”) has occurred and is continuing:

 

	
(a)  

	
the Borrower fails to make payment when due of the Principal Amount outstanding or of any accrued interest when due;

 

	
(b)  

	
any representation and warranty of the Borrower in the Purchase Agreement or any Collateral Document shall be inaccurate in any material respect when made or deemed to be made;

 

	
(c)  

	
any Collateral Document after delivery thereof shall for any reason (other than pursuant to, and in accordance with, the terms thereof) cease to create a valid and perfected first priority lien on and security interest in the collateral purported to be covered thereby;

 

	
(d)  

	
the Borrower shall default in the payment of any principal of or interest on any indebtedness (whether at stated maturity or at mandatory or optional prepayment or otherwise) and such default shall continue beyond any applicable grace period set forth in the agreements or instruments evidencing or relating to such indebtedness, or any default or event of default shall occur under any agreement or instrument evidencing or relating to any indebtedness if the effect thereof is to accelerate the maturity thereof, or to permit the holder or holders of such indebtedness, to accelerate the maturity thereof, or to require the mandatory prepayment or redemption thereof;

 

	
(e)  

	
the Borrower shall fail to perform, observe or comply with, in any material respect, any of its covenants herein, in the Purchase Agreement or in the Collateral Documents (other than as provided in clauses (a), (c) and (d) above;

 

	
(f)  

	
the Borrower (i) becomes insolvent or generally not able to pay its debts as they become due, (ii) admits in writing its inability to pay its debts generally or makes a general assignment for the benefit of creditors, (iii) institutes or has instituted against it any proceeding seeking (x) to adjudicate it a bankrupt or insolvent, (y) liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors including any plan of compromise or arrangement or other corporate proceeding involving its creditors, or (z) the entry of an order for relief or the appointment of a receiver, trustee or other similar official for it or for any substantial part of its properties and assets, and in the case of any such proceeding or order instituted against it (but not instituted by it), either the proceeding remains undismissed or unstayed for a period of 45 days, or any of the actions sought in such proceeding (including the entry of an order for relief against it or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its assets) occurs, or (iv) takes any corporate action to authorize any of the above actions.

 

  

12

  

 

	
10.  

	
Grid Notations

 

The undersigned agrees that the entries by the Lender on the Grid of advances and payments shall be prima facie proof of the matters so recorded. The failure to record any amount on the Grid, however, shall not limit the obligation of the Borrower to repay the principal amount of the advances under this Note together with any and all interest accruing thereon or limit the right of the Lender to recover any amount due and payable hereunder.

 

	
11.  

	
Application of Payments

 

Any payments in respect of amounts due under this Note shall be applied first in satisfaction of any accrued and unpaid interest, and then to the Principal Amount outstanding.

 

	
12.  

	
Waiver by the Borrower

 

The Borrower waives demand, presentment for payment, notice of non-payment, notice of dishonour, notice of acceleration, and notice of protest of this Note.

 

	
13.  

	
No Waiver by the Lender

 

Neither the extension of time for making any payment which is due and payable under this Note at any time or times, nor the failure, delay, or omission of the Lender to exercise or enforce any of its rights or remedies under this Note, shall constitute a waiver by the Lender of its right to enforce any such rights and remedies subsequently.  The single or partial exercise of any such right or remedy shall not preclude the Lender’s further exercise of such right or remedy or any other right or remedy.

 

	
14.  

	
Transfer

 

This Note, including all rights and obligations associated hereunder, shall be transferable at the Holder’s option, in whole or in part, subject to applicable securities law; provided that the Borrower shall not be liable for any additional costs that may be associated or incurred in connection with the transfer, including without limitation any withholding taxes.

 

Not later than 5 business days after notice to the Borrower from the Holder of its intention to make such transfer or exchange is received by the Borrower and without expense to the Holder, except for any transfer or similar tax which may be imposed on the transfer or exchange, the Borrower shall issue in exchange therefor another note or notes for the same aggregate principal amount as the unpaid principal amount of this Note so surrendered, having the same maturity and rate of interest, containing the same provisions and subject to the same terms and conditions as this Note so surrendered. If the Holder proposes to transfer this Note in part, the Borrower shall issue a note or notes for the aggregate principal amount to be transferred, on the same basis noted in the preceding sentence, and issue a replacement note for the part not transferred to the Holder. Each new Note shall be made payable to such person or persons, or transferees, as the holder of such surrendered Note may designate, and such transfer or exchange shall be made in such a manner that no gain or loss of principal or interest shall result therefrom. The Borrower may elect not to permit a transfer of this Note if it has not obtained reasonable assurances that such transfer is exempt from the prospectus and registration requirements under applicable securities law.

 

  

13

  

 

	
15.  

	
Notices

 

Any notice or other communication that is required or permitted to be given pursuant to this Note shall be in writing and will be validly given if delivered in person (including by courier service) or transmitted by electronic delivery as follows:

 

	
if to the Lender:

	
Hair Research And Science Est.,

Rätikonstrasse 13,

9490 Vaduz,

Liechtenstein

Attention:           Renzo Zanolari, lic.iur

E-mail:                  renzo.zanolari@audax.li

 

	
if to the Borrower:

	
Biologix Hair Science Ltd.,

The Business Center, Upton,

St. Michael, Barbados

 

Attention:           David Csumrik

E-mail:                  david@longview.bb

 

	
If to the Borrower Parent

	
Biologix Hair Inc.,

82 Avenue Road

Toronto, Ontario

Canada M5R 2H2

 

Attention:           Ron Holland

E-mail:                  rh@biologixhair.com

 

	
And in all instances with a copy to:

 

	 	
W.L. Macdonald Law Corporation

4th Floor - 570 Granville Street,

Vancouver British Colombia,

Canada  V6C 3P1

 

Fax: 604.681.4760

E-mail: wmacdonald@wlmlaw.ca

 

Any such notice or other communication will be deemed to have been given and received on the day on which it was delivered or transmitted by electronic delivery (or, if such day is not a Business Day, on the next following Business Day). Any party may at any time change its address for service from time to time by giving notice to the other parties in accordance with this Section.  For the purposes of this Note, “Business Day” means any day, other than a Saturday or Sunday, on which banks in Liechtenstein are open for commercial banking business during normal banking hours.

 

	
16.  

	
Governing Law and Successors

 

This Note is made under and shall be governed by and construed in accordance with the laws of Liechtenstein, and shall enure to the benefit of the Lender and its successors (including any successor by reason of amalgamation) and assigns, and shall be binding on the Borrower and its successors (including any successor by reason of amalgamation) and permitted assigns.

 

[Signature Page Follows]

 

  

14

  

 

	 	
BIOLOGIX HAIR SCIENCE LTD. 

as Borrower

	 
	 	 	 	 
	 	
By: 

	/s/ David Csumrik	 
	 	 	
Name: David Csumrik

	 
	 	 	
Title:   President and Director

	 
	 	 	 	 

 

	 	

BIOLOGIX HAIR INC.

as Borrower Parent

	 
	 	 	 	 
	 	
By: 

	

/s/ Ron Holland

	 
	 	 	

Name: Ron Holland

	 
	 	 	

Title:   Chief Executive Officer and Chairman

	 
	 	 	 

 

Acknowledged and agreed this 11th day of April, 2012.

 

	 	

HAIR RESEARCH AND SCIENCE EST.,

as Lender

	 
	 	 	 	 
	 	
By: 

	

/s/ Renzo Zanolari

	 
	 	 	

Name: Renzo Zanolari, lic.iur

	 
	 	 	

Title: Director

	 
	 	 	 

 

  

15

  

 

EXHIBIT A 

 

ASSIGNMENT FORM

 

	
TO:

	
BIOLOGIX HAIR SCIENCE LTD.  (the “Borrower”)

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to the following person all rights of the undersigned pursuant to the convertible grid promissory note issued by the Borrower dated April 11, 2012.

 

	Name of Assignee:  	 	 	 
	 	 	 	 
	Address:  	 	 	 
	 	 	 	 
	 	 	 	 

 

and the undersigned hereby irrevocably constitutes and appoints such assignee to be the lawful attorney of the undersigned to transfer such rights to the Note on the books of the Borrower, with full power of substitution.

 

The undersigned hereby certifies that the transfer of these securities is not being made in any public offering and: (a) that the transferee is an “accredited investor”, as such term is defined in Rule 501(a) of the United States Securities Act of 1933.

 

Date:  _________________

 

	 	 	 	

Name:

	 	 	 	 
	 	 	 	
Title (if applicable):

	 	 	 	 
	 	 	 	
Address:

 

  

  

  

 

EXHIBIT B

 

CONVERSION FORM

 

	
TO:

	
BIOLOGIX HAIR SCIENCE LTD.  (the “Borrower”)

 

BIOLOGIX HAIR INC.             (“BHI”)

                    

The undersigned hereby irrevocably elects to convert into common shares of BHI as defined in and in accordance with the terms of said Note (check one):

 

	o	
all of the Principal Amount outstanding, together with any accrued but unpaid interest; or

 

	o	
all accrued but unpaid interest, together with US$                                     principal amount of the Note.  The Borrower shall issue and deliver to the undersigned a note representing the balance of the principal amount as promptly as practicable.

 

DATED at __________________ this _____ day of _____________, ______.

 

	 	
Per: 

	 	 
	 	 	
 

Address:

	 

 

  

  

  

EXHIBIT 2 TO AMENDING AGREEMENT DATED AUGUST 1, 2012

 

SCHEDULE “E”

 

Subscription Agreement for Common Shares of Biologix Hair Inc.

 

Confidential

Private Placement Subscription Agreement

Regulation S

 

BIOLOGIX HAIR INC.

82 Avenue Road

Toronto, ON  M5R 2H2

Canada

 

  

2

  

 

PRIVATE PLACEMENT SUBSCRIPTION

Regulation S - Worldwide

 

BIOLOGIX HAIR INC.

82 Avenue Road

Toronto  ON  M5R 2H2

Canada

 

PRIVATE PLACEMENT

INSTRUCTIONS TO SUBSCRIBER:

	
1.  

	
COMPLETE the information on page 3 of this Subscription Agreement.

 

	
2.  

	
COURIER the originally executed copy of the entire Subscription Agreement, together with the Questionnaires, to the Company at:

BIOLOGIX HAIR INC.

82 Avenue Road

Toronto  ON  M5R 2H2

Canada

 

  

3

  

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT

 

TO:           BIOLOGIX HAIR INC.  (the “Company”) - Subject and pursuant to the attached “Terms and Conditions” of this Subscription Agreement, including all schedules and appendices attached hereto, the Subscriber hereby irrevocably subscribes for, and on the Closing Date, will purchase from the Company, the following securities at the following price:

 

 

	
Number of Shares Subscribed for: 1,000,000 Shares

	
US$0.80  per Share for a total purchase price of $ 1,000,000

	
The Subscriber previously owns, directly or indirectly, the following securities of the Company:

	  
	
[Check if applicable]  The Subscriber is o an affiliate of the Company

 

	
REGISTRATION INSTRUCTIONS

	  	
DELIVERY INSTRUCTIONS if different

	  	  	  
	
Name to appear on certificate

	  	
Name and account reference, if applicable

	  	  	  
	
Account reference if applicable

	  	
Contact name

	  	  	  
	
Address

	  	
Address

	 	 	 
	
City, Postal Code

	  	
City, Postal Code

	 	 	 
	
Tax I.D./E.I.N./S.S.N.

	  	
Telephone Number

 

EXECUTED by the Subscriber this _______ day of _____________, 2012.

 

	
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 and EFFECTIVE this ______day of ____________________, 2012

	  	  
	
BIOLOGIX HAIR INC.

 

	  	
Address of Subscriber (residence)

	
per:

	  	  
	  	  	
Telephone Number

	
Authorized Signatory

	  	  
	  	  	
E-mail address

	  	  	  
	  	  	
Social Security/Insurance No.:

By signing this acceptance, the Subscriber agrees to be bound by the term and conditions of this Subscription Agreement.

 

  

4

  

 

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

 

TERMS AND CONDITIONS

 

	
9.  

	
Subscription

 

(a) The above signed (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 3 of this Subscription Agreement at a price of US$0.80 per Share (such subscription and agreement to purchase being the "Subscription"), for the total subscription price as set out on page 3 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 also referred to as the “Securities”.

 

(b) 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.

 

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

 

	
10.  

	
Payment

 

(a) The Subscription Proceeds must accompany this Subscription and shall be paid to the Company by wire transfer, certified cheque, bank draft or money order.  The Subscription Proceeds may also be wired to the Company pursuant to the wire instructions attached as an Appendix.

 

(b) 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 60 days of the delivery of an executed Subscription Agreement by the Subscriber, 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.

 

(c) 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.

 

	
11.  

	
Questionnaires and Undertaking and Direction

 

(a) The Subscriber must complete, sign and return to the Company the following documents:

 

(i) One (1) executed copy of this Subscription Agreement;

 

(ii) the US Questionnaire in the form attached as Appendix 1 if the Subscriber is resident in the United States.

 

  

5

  

 

(b) 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.

 

	
12.  

	
Closing

 

(a) Closing of the purchase and sale of the Securities shall be deemed to be effective on such 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 Securities to such subscriber(s) against payment therefore at any time on or prior to the Closing Date.

 

	
13.  

	
Acknowledgements of Subscriber

 

(a) The Subscriber acknowledges and agrees that:

 

(i)         none of the Securities have been registered under the 1933 Act, or under any state securities or “blue sky” laws of any state of the United States, and, unless so registered, may not be offered or sold in the United States or to U.S. Persons, as that term is defined in Regulation S under the 1933 Act (“Regulation S”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act;

 

(ii)        the Subscriber acknowledges that the Company has not undertaken, and will have no obligation, to register any of the Securities under the 1933 Act;

 

(iii)       the decision to execute this Subscription Agreement and purchase the Securities agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company.  If the Company has presented a business plan to the Subscriber, the Subscriber acknowledges that the business plan may not be achieved or be achievable;

 

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

 

(v)       the decision to execute this Subscription Agreement and purchase the Securities agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company and such decision is based solely upon a review of publicly available information regarding the Company (the "Company Information");

 

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

 

(vii)      by execution of this Subscription Agreement the Subscriber has waived the need for the Company to communicate its acceptance of the purchase of the Securities pursuant to this Subscription Agreement;

 

(viii)     all information which the Subscriber has provided to the Company in the Questionnaire is correct and complete as of the date the Questionnaire is signed, and if there should be any change in such information prior to the Subscription being accepted by the Company, the Subscriber will immediately provide the Company with such information;

 

  

6

  

 

(ix)       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 in 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 or the Questionnaire;

 

(x)        it 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 representation or warranty of the Subscriber contained herein or in any document furnished by the Subscriber to the Company in connection herewith being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;

 

(xi)       the issuance and sale of the Securities 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;

 

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

 

(xiii)     none of the Securities are listed on any stock exchange 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;

 

(xiv)     it is acquiring the Securities 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;

 

(xv)      the Subscriber is acquiring the Securities pursuant to an exemption from the registration and prospectus requirements of applicable securities legislation in all jurisdictions relevant to this Subscription, and, as a consequence, the Subscriber will not be entitled to use most of the civil remedies available under applicable securities legislation and the Subscriber will not receive information that would otherwise be required to be provided to the Subscriber pursuant to applicable securities legislation;

 

(xvi)     the Subscriber has been advised that the business of the Company is in a start-up phase and acknowledges that there is no assurance that the Company will raise sufficient funds to adequately capitalize the business or that the business will be profitable in the future;

 

(xvii)    the Subscriber recognizes that an investment in the Shares involves certain risks and has taken full cognizance of and understand all of the risk factors related to the business objectives of the Company and the purchase of the Shares. An investment in the Shares offered hereby is speculative and involves a high degree of risk and should not be purchased by persons who cannot afford the loss of their entire investment.  Prospective investors should carefully consider all such risk factors.

 

(xviii)   Pending acceptance of this subscription by the Company, all funds paid hereunder shall be deposited by the Company and immediately available to the Company for its corporate purposes.  In the event the subscription is not accepted, the subscription funds will constitute a non-interest bearing demand loan of the Subscriber to the Company.

 

(xix)     the Subscriber agrees to indemnify and hold harmless the Company, its officers and directors from and against all damages, losses, costs and expenses (including reasonable attorney’s fees) which they may incur by reason of my failure to fulfill any of the terms or conditions of this Subscription Agreement, or by reason of any untrue statement made herein or any breach of the representations and warranties made herein or in any document that I have provided to the Company.

 

  

7

  

 

(xx)       The shares of common stock comprising this offering are not registered under the federal securities laws or qualified under any state securities laws, and they are being sold in reliance upon exemptions under such laws.  The exemptions used require, among other things, that the common stock be purchased for investment purposes only, and not with any current view to the distribution or resale thereof.  Unless the common stock is registered with the SEC and any required state authorities, or an appropriate exemption from such registration is available, a holder of these securities will be unable to liquidate his or her investment in the securities, even though the holder’s personal financial condition may dictate such liquidation.  The certificates representing the shares of common stock will bear appropriate legends referring to restrictions on transferability imposed by the Securities Act and applicable state securities laws.  The common stock may not be pledged, hypothecated, assigned or otherwise disposed of except as permitted under applicable federal and state securities laws or pursuant to registration or exemption therefrom.  Therefore, prospective stockholders who require liquidity in their investments should not invest in the shares.

 

(xxi)     no documents in connection with the sale of the Securities hereunder have been reviewed by the Securities and Exchange Commission or any state securities administrators;

 

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

 

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

 

	
14.  

	
Representations, Warranties and Covenants of the Subscriber

 

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

 

(i)         the Subscriber is resident in the jurisdiction set forth on page 3 underneath the Subscriber’s name and signature;

 

(ii)        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;

 

(iii)       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;

 

(iv)      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;

 

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

 

(vi)       the entering into of this Subscription Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;

 

  

8

  

 

(vii)      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;

 

(viii)     it understands and agrees that none of the Securities have been registered under the 1933 Act or any state securities laws, and, unless so registered, none may be offered or sold in the United States or, directly or indirectly, to U.S. Persons (as defined herein) except pursuant to an exemption from, or in a transaction not subject to, the Registration Requirements of the 1933 Act and in each case only in accordance with state securities laws;

 

(ix)        it is purchasing the Securities for its own account for investment purposes only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest is such Shares, and the Subscriber has not subdivided his interest in the Securities with any other person;

 

(x)        it is able to fend for itself in the Subscription and has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;

 

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

 

(xii)      it understands and agrees that the Company and others will rely upon the truth and accuracy of the acknowledgments, representations and agreements contained in sections 5 and 6 hereof and agrees that if any of such acknowledgments, representations and agreements are no longer accurate or have been breached, it shall promptly notify the Company;

 

(xiii)     the Subscriber:

 

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

 

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

 

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

 

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

 

I. 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

 

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

 

(xiv)     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

 

  

9

  

 

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

 

(xvi)     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.

 

(b) In this Subscription Agreement, the term “U.S. Person” shall have the meaning ascribed thereto in Regulation S and for the purpose of the Subscription includes any person in the United States.

 

	
15.  

	
Acknowledgement and Waiver

 

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

 

	
16.  

	
Representations and Warranties will be Relied Upon by the Company

 

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

 

	
17.  

	
Resale Restrictions

 

(a) The Subscriber acknowledges that any resale of the Securities will be subject to resale restrictions contained in the securities legislation applicable to each Subscriber or proposed transferee as set forth in paragraph 6 of this Subscription Agreement.  The Securities may not be offered or sold in the United States unless registered in accordance with federal securities laws and all applicable state securities laws or exemptions from such registration requirements are available.

 

	
18.  

	
Legending and Registration of Subject Securities

 

(a) The Subscriber hereby acknowledges that 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 any of the Securities will bear a legend in substantially the following form:

 

If the Subscriber is a US person:

 

  

10

  

 

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

 

(b) 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.

 

	
19.  

	
Notices to Residents of the European Economic Area

 

(a) In relation to each member state of the European Economic Area (the “EEA”) which has implemented Directive 2003/71/EC (the “Prospectus Directive”) (each, a “Relevant Member State”), Shares may only be offered or sold in the Relevant Member State under the following exemptions under the Prospectus Directive, if they have been implemented in that Relevant Member State:

 

(i) to legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities;

 

(ii) to any legal entity which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than €43,000,000; and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated accounts;

 

(iii) in any other circumstances falling within Article 3(2) of the Prospectus Directive;

provided that no such offer of Shares shall result in a requirement for the publication by the Company of a prospectus pursuant to Article 3 of the Prospectus Directive.

 

	
20.  

	
Costs

 

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

 

	
21.  

	
Governing Law

 

(a) This Subscription Agreement is governed by the laws of the State of Florida and the federal laws applicable therein.  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 jurisdiction of the State of Florida.

 

	
22.  

	
Survival

 

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

 

	
23.  

	
Assignment

 

(a) This Subscription Agreement is not transferable or assignable.

 

  

11

  

 

	
24.  

	
Execution

 

(a) The Company shall be entitled to rely on delivery by facsimile machine of an executed copy of this Subscription Agreement and acceptance by the Company of such facsimile copy shall be equally effective to create a valid and binding agreement between the Subscriber and the Company in accordance with the terms hereof.

 

	
25.  

	
Severability

 

(a) 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.

 

	
26.  

	
Entire Agreement

 

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

 

	
27.  

	
Notices

 

(a) 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.

 

	
28.  

	
Counterparts

 

(a) 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.

 

  

12

  

 

APPENDIX 1

Subscription and Payment

Biologix Hair Inc.

1)  Fax Completed Subscription Agreement to  778-383-6485  or scan and email to pp@biologixhair.com Attention: Placement Department.

 

2) Courier or Mail original, executed, Subscription Agreement to address below.

 

3) Wire Funds: USD to Biologix Hair Inc. See bank details below;

 

4) Courier Payment along with the Original Subscription Form and Certified Check or Bank Draft in US Dollars for the full amount to:

BIOLOGIX HAIR INC.

82 Avenue Road

Toronto  ON  M5R 2H2

Canada

 

Email: dh@biologixhair.com

 

 

TO SEND A WIRE TO THE  BIOLOGIX HAIR INC. BANK ACCOUNT, YOU WILL NEED TO GIVE THE REMITTING BANK THE FOLLOWING INSTRUCTIONS:

BENEFICIARY BANK:                                                      

CANADIAN BANK NUMBER:                                                                

TRANSIT NUMBER:

BENEFICIARY:                                                      Biologix Hair Inc.

 

ACCOUNT NUMBER:

SWIFT BIC ADDRESS:f8k011013ex10vii_biologix.htm

Exhibit 10.7

 

SHARE PURCHASE AGREEMENT

 

THIS AGREEMENT is made effective as of the 19th day of April, 2012

 

	
AMONG:

	  
	  	
Biologix Hair, Inc. a Florida corporation, with its principal offices at 82 Avenue Road, Toronto, Ontario M5R 2H2

	 	 
	  	
("Purchaser")

	  	  
	
AND:

	  
	  	
Biologix Hair Science Ltd., a Barbados corporation, with its principal offices at The Business Center, Upton, St. Michael, Barbados BB11 103

	 	 
	  	
("Seller")

	  	  
	
AND:

	  
	  	
THE UNDERSIGNED SHAREHOLDERS OF SELLER AS LISTED ON SCHEDULE 1 ATTACHED HERETO

	 	 
	  	
(the "Selling Shareholders")

	  	  
	
WHEREAS:

	  

 

	
A.  

	
The Selling Shareholders are the registered and beneficial owners of all 100 issued and outstanding common shares in the capital of Seller;

 

	
B.  

	
Purchaser has agreed to issue up to 4,000,000 common shares in the capital of Purchaser as of the Closing Date, as defined herein, to the Selling Shareholders as consideration for the purchase by Purchaser of the issued and outstanding common shares of Seller held by the Selling Shareholders; and

 

	
C.  

	
Upon the terms and subject to the conditions set forth in this Agreement, the Selling Shareholders have agreed to sell all of the issued and outstanding common shares of Seller held by the Selling Shareholders to Purchaser in exchange for issuance of the Purchaser Shares and payment of the Purchase Price (as defined below).

 

THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties covenant and agree as follows:

 

1.        DEFINITIONS

 

1.1.      Definitions. The following terms have the following meanings, unless the context indicates otherwise:

 

	 	
(a)  

	
"Agreement" shall mean this Agreement, and all the exhibits, schedules and other documents attached to or referred to in this Agreement, and all amendments and supplements, if any, to this Agreement;

	 	 	 
	 	
(b)  

	
"Closing" shall mean the completion of the Transaction, in accordance with Section 7 hereof, at which the Closing Documents shall be exchanged by the parties, except for those documents or other items specifically required to be exchanged at a later time;

 

  

- 1 -

  

 

	 	
(c)    

	
"Closing Date" shall mean a date mutually agreed upon by the parties hereto in writing and in accordance with Section 10.6 following the satisfaction or waiver by Purchaser and Seller of the conditions precedent set out in Sections 5.1 and 5.2 respectively;

	 	 	 
	 	
(d)     

	
"Closing Documents" shall mean the papers, instruments and documents required to be executed and delivered at the Closing pursuant to this Agreement;

	 	 	 
	 	
(e)  

	
"Exchange Act" shall mean the United States Securities Exchange Act of 1934, as amended;

	 	 	 
	 	
(f)     

	
"Liabilities" shall include any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation or responsibility, fixed or unfixed, known or unknown, asserted choate or inchoate, liquidated or unliquidated, secured or unsecured;

	 	 	 
	 	
(g)     

	
"Seller Shares" shall mean the 100 common shares of Seller held by the Selling Shareholders, being all of the issued and outstanding common shares of Seller beneficially held, either directly or indirectly, by the Selling Shareholders;

	 	 	 
	 	
(h)  

	
"Purchase Price" shall mean $6,000,000.

	 	 	 
	 	
(i)  

	
"Purchaser Shares" shall mean up to 4,000,000 fully paid and non-assessable common shares of Purchaser, to be issued to the Selling Shareholders by Purchaser on the Closing Date;

	 	 	 
	 	
(j)  

	
"SEC" shall mean the Securities and Exchange Commission;

	 	 	 
	 	
(k)  

	
"Securities Act" shall mean the United States Securities Act of 1933, as amended;

	 	 	 
	 	
(I)

	
"Taxes" shall include international, federal, state, provincial and local income taxes, capital gains tax, value-added taxes, franchise, personal property and real property taxes, levies, assessments, tariffs, duties (including any customs duty), business license or other fees, sales, use and any other taxes relating to the assets of the designated party or the business of the designated party for all periods up to and including the Closing Date, together with any related charge or amount, including interest, fines, penalties and additions to tax, if any, arising out of tax assessments; and

	 	  	  
	 	
(m)

	
 "Transaction" shall mean the purchase of the Seller Shares by Purchaser from the Selling Shareholders in consideration for the issuance of the Purchaser Shares and the payment of the Purchase Price.

 

1.2.      Schedules. The following schedules are attached to and form part of this Agreement:

 

	
Schedule I

	
- 

	
Selling Shareholders

	
Schedule 1 A

	
- 

	
Selling Shareholder Execution Page - Gruppen Investments Ltd.

	
Schedule 1B

	
- 

	
Selling Shareholder Execution Page - Pendolino Investments Ltd.

	
Schedule 2A

	
-

	
Certificate(s) of Non-U.S. Shareholders - Gruppen Investments Ltd

	
Schedule 2B

	
-

	
Certificate(s) of Non-U.S. Shareholders - Pendolino Investments Ltd.

	
Schedule 3

	
-

	
Promissory Notes

	
Schedule 4

	
- 

	
Directors and Officers of Seller

	
Schedule 5

	
-

	
Intentionally Deleted

	
Schedule 6

	
-

	
Seller Leases, Subleases, Claims, Capital Expenditures, Taxes and Other Property Interests

	
Schedule 7 

	
-

	
Seller Intellectual Property

	
Schedule 8 

	
-

	
Seller Material Contracts

	
Schedule 9

	
-

	
Seller Employment Agreements and Arrangements

 

1.3      Currency. All references to currency referred to in this Agreement are in United States Dollars (US$), unless expressly stated otherwise.

 

  

- 2 -

  

 

	
2.      

	
THE OFFER, PURCHASE AND SALE OF SHARES

	  	  
	
2.1.   

	
Offer, Purchase and Sale of Shares. Subject to the terms and conditions of this Agreement, the Selling Shareholders hereby covenant and agree to sell, assign and transfer to Purchaser, and Purchaser hereby covenants and agrees to purchase from the Selling Shareholders all of the Seller Shares held by the Selling Shareholders.

	  	  
	
2.2.      

	
Cash Consideration.  As partial consideration for the sale of the Seller Shares by the Selling Shareholders to Purchaser, Purchaser shall pay to the Selling Shareholders in the amount set out opposite each Selling Shareholder's name in Schedule 1, on the basis of $60,000 for each Seller Share held by each Selling Shareholder. The aggregate Purchase Price shall be payable as follows:

 

	
         (a)

	
$2,100,000 within 30 days following the execution of this Agreement; and

 

	
         (b)

	
$3,900,000 in the form of a promissory note payable by April 19, 2014 deliverable to each of the Selling Shareholders in the form attached hereto as Schedule 3.

 

	
2.3.

	
Share Consideration. As partial consideration for the sale of the Seller Shares by the Selling Shareholders to Purchaser, Purchaser shall allot and issue the Purchaser Shares to the Selling Shareholders in the amount set out opposite each Selling Shareholder's name in Schedule 1 on the basis of 40,000 Purchaser Shares for each Seller Share held by each Selling Shareholder. The Selling Shareholders acknowledge and agree that the Purchaser Shares are being issued pursuant to an exemption from the prospectus and registration requirements of the Securities Act. As required by applicable securities law, the Selling Shareholders agree to abide by all applicable resale restrictions and hold periods imposed by all applicable securities legislation. All certificates representing the Purchaser Shares issued on Closing will be endorsed with one of the following legend pursuant to the Securities Act in order to reflect the fact that the Purchaser Shares will be issued to the Selling Shareholders pursuant to an exemption from the registration requirements of the Securities Act:

 

For Selling Shareholders not resident in the United States:

 

"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").

 

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."

 

For Selling Shareholders resident in the United States:

 

"NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, 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."

 

  

- 3 -

  

 

	
2.4.

	
Share Transfer Procedure. Each Selling Shareholder may transfer his, her or its certificate representing the Seller Shares by delivering such certificate to Purchaser duly executed and endorsed in blank (or accompanied by duly executed stock powers duly endorsed in blank), in each case in proper form for transfer, with signatures guaranteed, and, if applicable, with all stock transfer and any other required documentary stamps affixed thereto and with appropriate instructions to allow the transfer agent to issue certificates for the Purchaser Shares to the holder thereof, together with:

 

	  	
(a)  

	
if the Selling Shareholder is not resident in the United States, a Certificate of Non-U.S. Shareholder (the "Regulation S Certificate"), a copy of which is set out in Schedule 2A;

 

	  	
(b)  

	
if the Selling Shareholder is resident in the United States, a Certificate of U.S. Shareholder (the "Rule 506 Certificate"), a copy of which is set out in Schedule 2B; and

 

	
2.5.

	
Fractional Shares. Notwithstanding any other provision of this Agreement, no certificate for fractional shares of the Purchaser Shares will be issued in the Transaction. In lieu of any such fractional shares, if any of the Selling Shareholders would otherwise be entitled to receive a fraction of a share of the Purchaser Shares upon surrender of certificates representing the Seller Shares for exchange pursuant to this Agreement, the Selling Shareholders will be entitled to have such fraction rounded up to the nearest whole number of Purchaser Shares and will receive from Purchaser a stock certificate representing same.

	  	  
	
2.6.

	
Closing Date. The Closing will take place, subject to the terms and conditions of this Agreement, on the Closing Date.

	  	  
	
2.7.

	
Restricted Shares. The Selling Shareholders acknowledge that the Purchaser Shares issued pursuant to the terms and conditions set forth in this Agreement will have such hold periods as are required under applicable securities laws and as a result may not be sold, transferred or otherwise disposed, except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in each case only in accordance with all applicable securities laws.

	  	  
	
3.

	
REPRESENTATIONS AND WARRANTIES OF SELLER

	  	  
	As of the Closing, Seller and the Selling Shareholders, jointly and severally, represent and warrant to Purchaser, and acknowledge that Purchaser is relying upon such representations and warranties, in connection with the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of Purchaser, as follows:
	  	  
	
3.1.

	
Organization and Good Standing. Seller is a corporation duly organized, validly existing and in good standing under the laws of Barbados and has the requisite corporate power and authority to own, lease and to carry on its business as now being conducted. Seller is duly qualified to do business and is in good standing as a foreign corporation in each of the jurisdictions in which Seller owns property, leases property, does business, or is otherwise required to do so, where the failure to be so qualified would have a material adverse effect on the business of Seller taken as a whole.

	  	  
	
3.2

	
Authority. Seller has all requisite corporate power and authority to execute and deliver this Agreement and any other document contemplated by this Agreement (collectively, the "Seller Documents") to be signed by Seller and to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of each of the Seller Documents by Seller and the consummation of the transactions contemplated hereby have been duly authorized by Seller's board of directors. No other corporate or shareholder proceedings on the part of Seller is necessary to authorize such documents or to consummate the transactions contemplated hereby. This Agreement has been, and the other Seller Documents when executed and delivered by Seller as contemplated by this Agreement will be, duly executed and delivered by Seller and this Agreement is, and the other Seller Documents when executed and delivered by Seller as contemplated hereby will be, valid and binding obligations of Seller enforceable in accordance with their respective terms except:

 

	  	
(a)  

	
as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors' rights generally;

 

  

- 4 -

  

 

	  	
(b)  

	
as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies; and

 

	  	
(c)  

	
as limited by public policy.

 

	
3.3.

	
Capitalization of Seller. The entire authorized capital stock and other equity securities of Seller consists of                                      common shares (the "Seller Common Stock"). As of the date of this Agreement, there are 100 shares of Seller Common Stock issued and outstanding. All of the issued and outstanding shares of Seller Common Stock have been duly authorized, are validly issued, were not issued in violation of any pre-emptive rights and are fully paid and non-assessable, are not subject to pre-emptive rights and were issued in full compliance with the laws of Barbados and with the Seller's bylaws and Articles of Incorporation. There are no outstanding options, warrants, subscriptions, conversion rights, or other rights, agreements, or commitments obligating Seller to issue any additional common shares of Seller Common Stock, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire from Seller any common shares of Seller Common Stock. There are no agreements purporting to restrict the transfer of the Seller Common Stock, no voting agreements, shareholders' agreements, voting trusts, or other arrangements restricting or affecting the voting of the Seller Common Stock.

	  	  
	
3.4.

	
Shareholders of Seller Common Stock. As of the Closing Date, Schedule 1 contains a true and complete list of the holders of all issued and outstanding shares of the Seller Common Stock including each holder's name, address and number of Seller Shares held.

	  	  
	
3.5.

	
Directors and Officers of Seller. The duly elected or appointed directors and the duly appointed officers of Seller are as set out in Schedule 4.

	  	  
	
3.6.

	
Corporate Records of Seller. The corporate records of Seller, as required to be maintained by it pursuant to all applicable laws, are accurate, complete and current in all material respects, and the minute book of Seller is, in all material respects, correct and contains all records required by all applicable laws, as applicable, in regards to all proceedings, consents, actions and meetings of the shareholders and the board of directors of Seller.

	  	  
	
3.7

	
.Non-Contravention. Neither the execution, delivery and performance of this Agreement, nor the consummation of the Transaction, will:

 

	  	
(a)  

	
conflict with, result in a violation of cause a default under (with or without notice, lapse of time or both) or give rise to a right of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any material benefit under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the material properties or assets of Seller or any of its subsidiaries under any term, condition or provision of any loan or credit agreement, note, debenture, bond, mortgage, indenture, lease or other agreement, instrument, permit, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Seller or any of its subsidiaries, or any of their respective material property or assets; or

	  	
 (b)  

	
violate any provision of the bylaws, Articles of Incorporation or any other constating documents of Seller, any of its subsidiaries or any applicable laws.

	 	 	 
	3.8. 	
Actions and Proceedings. To the best knowledge of Seller, there is no basis for and there is no action, suit, judgment, claim, demand or proceeding outstanding or pending, or threatened against Seller or which involves any of the business, or the properties or assets of Seller that, if adversely resolved or determined, would have a material adverse effect on the business, operations, assets, properties, prospects, or conditions of Seller taken as a whole (a "Seller Material Adverse Effect"). There is no reasonable basis for any claim delivered by Seller as contemplated hereby will be, valid and binding obligations of Seller enforceable in accordance with their respective terms except:

 

	  	
(a)

	
as limited by applicable bankruptcy. insolvency. reorganization. moratorium. and other laws of general application affecting enbircement creditors' rights generally:

 

  

- 5 -

  

 

	  	
(b)

	
as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies: and

	  	  	  
	  	
(c)

	
as limited by public policy.

 

	
3.3.

	
Capitalization of Seller. The entire authorized capital stock and other equity securities of Seller consists of unlimited common shares (the "Seller Common Stock"). As of the date of this Agreement, there are 100 shares of Seller Common Stock issued and outstanding. All of the issued and outstanding shares of Seller Common Stock have been duly authorized. are validly issued, were not issued in violation of any pre-emptive rights and are fully paid and non-assessable, are not subject to pre-emptive rights and were issued in full compliance with the laws of Barbados and with the Seller's bylaws and Articles of Incorporation. There are no outstanding options, warrants, subscriptions. conversion  rights or other rights, agreements, or commitments obligating Seller to issue any additional common shares of Seller Common Stock, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire from Seller any common shares of Seller Common Stock. 'there are no agreements purporting to restrict the transfer of the Seller Common Stock, no voting agreements, shareholders' agreements, voting trusts, or other arrangements restricting or affecting the voting of the Seller Common Stock.

 

	
3.4.

	
Shareholders of Seller Common Stock. As of the ('losing Date, Schedule I contains a true and complete list of the holders of all issued and outstanding shares of the Seller Common Stock including each holder's name, address and number of Seller Shares held.

	  	  
	
3.5.

	
Directors and Officers of Seller. The duly elected or appointed directors and the duly appointed officers of Seller are as set out in Schedule 4.

	  	  
	
3.6.

	
Corporate Records of Seller. The corporate records of Seller, as required to he maintained by it pursuant to all applicable laws, are accurate, complete and current in all material respects, and the minute book of Seller is, in all material respects, correct and contains all records required by all applicable laws, as applicable, in regards to all proceedings, consents, actions and meetings of the shareholders and the board of directors of Seller.

	  	  
	
3.7.

	
Non-Contravention. Neither the execution, delivery and performance of this Agreement, nor the consummation of the Transaction, will:

 

	  	
(a)  

	
conflict with, result in a violation of, cause a default under with or without notice, lapse of time or both) or give rise to a right of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any material benefit under. or result in the creation of any lien, security interest, charge or encumbrance upon any or the material properties or assets of Seller or any of its subsidiaries under any term, condition or provision of any loan or credit agreement, note, debenture bond, mortgage, indenture, lease or other agreement, instrument, permit, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Seller or any of its subsidiaries. or any of their respective material property or assets: or

 

	  	
 (b)  

	
violate any provision of the bylaws. Articles of Incorporation or any other consulting documents of Seller, any of its subsidiaries or any applicable laws.

	
3.8.

	
Actions and Proceedings. To the best know ledge of Seller, there is no basis for and there is no action, suit, judgment. claim, demand or proceeding outstanding or pending, or threatened against Seller or which involves any of the business, or the properties or assets of Seller that, if adversely resolved or determined, would have ;1 material adverse effect on the business, operations, assets, properties, prospects, or conditions of Seller taken as a whole (a "Seller Material Adverse liken. There is no reasonable basis for any claim or action that, based upon the likelihood of its being asserted and its success if asserted, would have such a Seller Material Adverse Effect.

 

  

- 6 -

  

 

	
3.9.

	
Compliance.

 

	  	
(a)

	
To the best knowledge of Seller, Seller is in compliance with, is not in default or violation in any material respect under, and has not been charged with or received any notice at any time of any material violation of any statute, law, ordinance, regulation, rule, decree or other applicable regulation to the business or operations of Seller;

 

	  	
(b) 

	
To the best knowledge of Seller, Seller is not subject to any judgment, order or decree entered in any lawsuit or proceeding applicable to its business and operations that would constitute a Seller Material Adverse Effect; and

 

	  	
(c)

	
Seller has operated in material compliance with all laws, rules, statutes, ordinances, orders and regulations applicable to its business. Seller has not received any notice of any violation thereof, nor is Seller aware of any valid basis therefore.

 

	  	
(d)          

	
Financial Representations. The books, records and accounts of the Seller (collectively the "Seller Books and Records") for the period ended March 31, 2012 (the "Seller Accounting Date"), a true and complete set of which has been provided to the Purchaser, fairly and correctly set out and disclose, in all material respects, in accordance with Generally Accepted Accounting Principles, the financial position of the Seller, and all material financial transactions, assets, and Liabilities of the Seller have been accurately recorded in the Seller Books and Records. Seller has not received any advice or notification from its independent certified public accountants that Seller has used any improper accounting practice that would have the effect of not reflecting or incorrectly reflecting in the Seller Books and Records, any properties, assets, Liabilities, revenues, or expenses.

 

	
3.10.  

	
Absence of Undisclosed Liabilities. Seller does not have any material Liabilities or obligations either direct or indirect, matured or unmatured, absolute, contingent or otherwise that exceed $5,000, which:

 

	  	
(a)  

	
are not set forth in the Seller Books and Records or have not heretofore been paid or discharged;

 

	  	
(b)  

	
did not arise in the regular and ordinary course of business under any agreement, contract, commitment, lease or plan specifically disclosed in writing to Purchaser; or

 

	  	
(c)  

	
have not been incurred in amounts and pursuant to practices consistent with past business practice, in or as a result of the regular and ordinary course of its business since the date of the last Seller Books and Records.

	 	 	 
	
3.11.

	
Tax Matters.

 

	 	(a) 	As of the date hereof

  

	 	  	
(i)     

	
Seller has timely filed all tax returns in connection with any Taxes which are required to be filed on or prior to the date hereof, taking into account any extensions of the filing deadlines which have been validly granted to Seller, and

 

	 	  	
(ii)  

	
all such returns are true and correct in all material respects;

 

	 	
(b)

	
Seller has paid all Taxes that have become or are due with respect to any period ended on or prior to the date hereof, and has established an adequate reserve therefore on its balance sheets for those Taxes not yet due and payable, except for any Taxes the non-payment of which will not have a Seller Material Adverse Effect;

 

  

- 7 -

  

 

	 	
(c)  

	
Seller is not presently under or has not received notice of, any contemplated investigation or audit by regulatory or governmental agency of body or any foreign or state taxing authority concerning any fiscal year or period ended prior to the date hereof;

 

	 	
 (d)  

	
all Taxes required to be withheld on or prior to the date hereof from employees for income Taxes, social security Taxes, unemployment Taxes and other similar withholding Taxes have been properly withheld and, if required on or prior to the date hereof, have been deposited with the appropriate governmental agency; and

 

	 	
 (e)  

	
to the best knowledge of Seller, the Seller Books and Records contain full provision for all Taxes including any deferred Taxes that may be assessed to Seller for the accounting period ended on the Seller Accounting Date or for any prior period in respect of any transaction, event or omission occurring, or any profit earned, on or prior to the Seller Accounting Date or for any profit earned by Seller on or prior to the Seller Accounting Date or for which Seller is accountable up to such date and all contingent Liabilities for Taxes have been provided for or disclosed in the Seller Books and Records.

	 	 	 
	3.12.  	
Absence of Changes. Since the Seller Accounting Date, Seller has not:

 

	  	
(a)  

	
incurred any Liabilities, other than Liabilities incurred in the ordinary course of business consistent with past practice, or discharged or satisfied any lien or encumbrance, or paid any Liabilities, other than in the ordinary course of business consistent with past practice, or failed to pay or discharge when due any Liabilities of which the failure to pay or discharge has caused or will cause any material damage or risk of material loss to it or any of its assets or properties;

 

	  	
 (b)  

	
sold, encumbered, assigned or transferred any material fixed assets or properties except for ordinary course business transactions consistent with past practice;

 

	  	
 (c)  

	
created, incurred, assumed or guaranteed any indebtedness for money borrowed, or mortgaged, pledged or subjected any of the material assets or properties of Seller or its subsidiaries to any mortgage, lien, pledge, security interest, conditional sales contract or other encumbrance of any nature whatsoever;

 

	  	
 (d)  

	
made or suffered any amendment or termination of any material agreement, contract, commitment, lease or plan to which it is a party or by which it is bound, or cancelled, modified or waived any substantial debts or claims held by it or waived any rights of substantial value, other than in the ordinary course of business;

 

	  	
 (e)

	
declared, set aside or paid any dividend or made or agreed to make any other distribution or payment in respect of its capital shares or redeemed, purchased or otherwise acquired or agreed to redeem, purchase or acquire any of its capital shares or equity securities;

	  	  	  
	  	
(f)

	
suffered any damage, destruction or loss, whether or not covered by insurance, that materially and adversely effects its business, operations, assets, properties or prospects;

	  	  	  
	  	
(g)

	
suffered any material adverse change in its business, operations, assets, properties, prospects or condition (financial or otherwise);

	  	  	  
	  	
(h)

	
received notice or had knowledge of any actual or threatened labor trouble, termination, resignation, strike or other occurrence, event or condition of any similar character which has had or might have an adverse effect on its business, operations, assets, properties or prospects;

	  	  	  
	  	
(i)

	
made commitments or agreements for capital expenditures or capital additions or betterments exceeding in the aggregate $10,000;

	  	  	  
	  	
(j)

	
other than in the ordinary course of business, increased the salaries or other compensation of, or made any advance (excluding advances for ordinary and necessary business expenses) or loan to, any of its employees or directors or made any increase in, or any addition to, other benefits to which any of its employees or directors may be entitled;

 

  

- 8 -

  

 

	  	
(k)

	
entered into any transaction other than in the ordinary course of business consistent with past practice; or

	  	  	  
	  	
(I)

	
agreed, whether in writing or orally, to do any of the foregoing.

	 	 	 
	
3.13. 

	
Absence of Certain Changes or Events. Since the Seller Accounting Date, there has not been:

 

	 	
(a)

	 a Seller Material Adverse Effect; or
	 	 	 
	 	(b)	
any material change by Seller in its accounting methods, principles or practices.

 

	
3.14.

	
Subsidiaries. Seller does not have any subsidiaries or agreements of any nature to acquire any subsidiary or to acquire or lease any other business operations.

	  	  
	
3.15.

	
Personal Property. Seller possesses, and has good and marketable title of all property necessary for the continued operation of the business of Seller as presently conducted and as represented to Purchaser. All such property is used in the business of Seller. All such property is in reasonably good operating condition (normal wear and tear excepted), and is reasonably fit for the purposes for which such property is presently used. All material equipment, furniture, fixtures and other tangible personal property and assets owned or leased by Seller is owned by Seller free and clear of all liens, security interests, charges, encumbrances, and other adverse claims, except as disclosed in Schedule 6.

	  	  
	
3.16

	
Intellectual Property

 

	  	
(a)

	
Intellectual. Property Assets. Seller owns or holds an interest in all intellectual property assets necessary for the operation of the business of Seller as it is currently conducted (collectively, the "Intellectual Property Assets"), including:

 

	  	  	
(i)

	
all functional business names, trading names, registered and unregistered trademarks, service marks, and applications (collectively, the "Marks");

 

	  	  	
(ii)  

	
all patents, patent applications, design patents, design patent applications, and designs, inventions, methods, processes and discoveries that may be patentable (collectively, the "Patents");

 

	  	  	
(iii)  

	
all copyrights in both published works and unpublished works (collectively, the "Copyrights"); and

 

	  	  	
(iv)  

	
all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology, plans, drawings, and blue prints owned, used, or licensed by Seller as licensee or licensor (collectively, the "Trade Secrets").

 

	  	
(b)

	
Agreements. Schedule 7 contains a complete and accurate list and summary description, including any royalties paid or received by Seller, of all contracts and agreements relating to the Intellectual Property Assets to which Seller is a party or by which Seller is bound, except for any license implied by the sale of a product and perpetual, paid-up licenses for commonly available software programs with a value of less than $500 under which Seller is the licensee. To the best knowledge of Seller, there are no outstanding or threatened disputes or disagreements with respect to any such agreement.

	  	 	  
	  	
(c)

	
Intellectual Property and Know-How Necessary for the Business. Except as set forth in Schedule 7, Seller is the owner of all right, title, and interest in and to each of the Intellectual Property Assets, free and clear of all liens, security interests, charges, encumbrances, and other adverse claims, and has the right to use without payment to a third party of all the Intellectual Property Assets. Except as set forth in Schedule 7, all former and current employees and contractors of Seller have executed written contracts, agreements or other undertakings with Seller that assign all rights to any inventions, improvements, discoveries, or information relating to the business of Seller. No employee, director, officer or shareholder of Seller owns directly or indirectly in whole or in part, any Intellectual Property Asset which Seller is presently using or which is necessary for the conduct of its business. To the best knowledge of Seller, no employee or contractor of Seller has entered into any contract or agreement that restricts or limits in any way the scope or type of work in which the employee may be engaged or requires the employee to transfer, assign, or disclose information concerning his work to anyone other than Seller.

 

  

- 9 -

  

 

	  	
 (d)     

	
Patents. Schedule 7 contains a complete and accurate list and summary description of all Patents. Except as set out in Schedule 7, Seller does not hold any right, title or interest in and to any Patent and Seller has not filed any patent application with any third party. To the best knowledge of Seller, none of the products manufactured and sold, nor any process or know-how used, by Seller infringes or is alleged to infringe any patent or other proprietary night of any other person or entity.

	 	 	 
	  	
 (e)     

	
Trademarks. Schedule 7 contains a complete and accurate list and summary description of all Marks. Except as set out in Schedule 7, Seller does not hold any right, title or interest in and to any Mark and Seller has not registered or filed any application to register any Mark with any third party. To the best knowledge of Seller, none of the Marks, if any, used by Seller infringes or is alleged to infringe any trade name, trademark, or service mark of any third party.

	 	 	 
	  	
 (f)    

	
Copyrights. Schedule 7 contains a complete and accurate list and summary description of all Copyrights. Except as set out in Schedule 7, Seller is the owner of all right, title, and interest in and to each of the Copyrights, free and clear of all liens, security interests, charges, encumbrances, and other adverse claims. If applicable, all registered Copyrights are currently in compliance with formal legal requirements, are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety days after the Closing Date. To the best knowledge of Seller, no Copyright is infringed or has been challenged or threatened in any way and none of the subject matter of any of the Copyrights infringes or is alleged to infringe any copyright of any third party or is a derivative work based on the work of a third party. All works encompassed by the Copyrights have been marked with the proper copyright notice.

	 	 	 
	  	
 (g)    

	
Trade Secrets. Schedule 7 contains a complete and accurate list and summary description of all Trade Secrets. Seller has taken all reasonable precautions to protect the secrecy, confidentiality, and value of its Trade Secrets. Seller has good title and an absolute right to use the Trade Secrets. The Trade Secrets are not part of the public knowledge or literature, and to the best knowledge of Seller, have not been used, divulged, or appropriated either for the benefit of any person or entity or to the detriment of Seller. No Trade Secret is subject to any adverse claim or has been challenged or threatened in any way.

 

	
3.17.

	
Insurance. The products sold by and the assets owned by Seller, if any, are insured under various policies of general product liability and other forms of insurance consistent with prudent business practices. All such policies are in full force and effect in accordance with their terms, no notice of cancellation has been received, and there is no existing default by Seller, or any event which, with the giving of notice, the lapse of time or both, would constitute a default thereunder. All premiums to date have been paid in full.

	  	  
	
3.18.

	
Employees and Consultants. All employees and consultants of Seller have been paid all salaries, wages, income and any other sum due and owing to them by Seller, as at the end of the most recent completed pay period. Seller is not aware of any labor conflict with any employees that might reasonably be expected to have a Seller Material Adverse Effect. To the best knowledge of Seller, no employee of Seller is in violation of any term of any employment contract, non-disclosure agreement, non-competition agreement or any other contract or agreement relating to the relationship of such employee with Seller or any other nature of the business conducted or to be conducted by Seller.

	  	  
	
3.19.

	
Real Property. Seller does not own any real property. Each of the leases, subleases, claims or other real property interests (collectively, the "Leases") to which Seller is a party or is bound, as set out in Schedule 6, is legal, valid, binding, enforceable and in full force and effect in all material respects. All rental and other payments required to be paid by Seller pursuant to any such Leases have been duly paid and no event has occurred which, upon the passing of time, the giving of notice, or both, would constitute a breach or default by any party under any of the Leases. The Leases will continue to be legal, valid, binding, enforceable and in full force and effect on identical terms following the Closing Date. Seller has not assigned, transferred, conveyed, mortgaged, deeded in trust, or encumbered any interest in the Leases or the leasehold property pursuant thereto.

 

  

- 10 -

  

 

	
3.20.

	
Material Contracts and Transactions. Schedule 8 attached hereto lists each material contract, agreement,  license, permit, arrangement, commitment, instrument or contract to which Seller is a party (each, a "Contract"). Each Contract is in full force and effect, and there exists no material breach or violation of or default by Seller under any Contract, or any event that with notice or the lapse of time, or both, will create a material breach or violation thereof or default under any Contract by Seller. The continuation, validity, and effectiveness of each Contract will in no way be affected by the consummation of the Transaction contemplated by this Agreement. There exists no actual or threatened termination, cancellation, or limitation of, or any amendment, modification, or change to any Contract.

	  	  
	
3.21.

	
Certain Transactions. Seller is not a guarantor or indemnitor of any indebtedness of any third party, including any person, firm or corporation.

	  	  
	
3.22.

	
No Brokers. Seller has not incurred any independent obligation or liability to any party for any brokerage  fees, agent's commissions, or finder's fees in connection with the Transaction contemplated by this Agreement.

	  	  
	
3.23.

	
Completeness of Disclosure. No representation or warranty by Seller in this Agreement nor any certificate, schedule, statement, document or instrument furnished or to be furnished to Purchaser pursuant hereto contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact required to be stated herein or therein or necessary to make any statement herein or therein not materially misleading.

 

	
4.

	
REPRESENTATIONS AND WARRANTIES OF PURCHASER

	  	  
	As of the Closing, Purchaser represents and warrants to Seller and the Selling Shareholders and acknowledges that Seller and the Selling Shareholders are relying upon such representations and warranties in connection with the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of Seller or the Selling Shareholders, as follows:
	  	  
	
4.1.  

	
Organization and Good Standing. Purchaser is duly incorporated, organized, validly existing and in good standing under the laws of the State of Florida and has all requisite corporate power and authority to own, lease and to carry on its business as now being conducted. Purchaser is qualified to do business and is in good standing as a foreign corporation in each of the jurisdictions in which it owns property, leases property, does business, or is otherwise required to do so, where the failure to be so qualified would have a material adverse effect on the businesses, operations, or financial condition of Purchaser.

	  	  
	
4.2.

	
Authority. Purchaser has all requisite corporate power and authority to execute and deliver this Agreement and any other document contemplated by this Agreement (collectively, the "Purchaser Documents") to be signed by Purchaser and to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of each of the Purchaser Documents by Purchaser and the consummation by Purchaser of the transactions contemplated hereby have been duly authorized by its board of directors and no other corporate or shareholder proceedings on the part of Purchaser is necessary to authorize such documents or to consummate the transactions contemplated hereby. This Agreement has been, and the other Purchaser Documents when executed and delivered by Purchaser as contemplated by this Agreement will be, duly executed and delivered by Purchaser and this Agreement is, and the other Purchaser Documents when executed and delivered by Purchaser, as contemplated hereby will be, valid and binding obligations of Purchaser enforceable in accordance with their respective terms, except:

 

	  	
(a)

	
as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors' rights generally;

 

  

- 11 -

  

 

	  	
(b)  

	
as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies; and

 

	  	
(c) 

	
as limited by public policy.

 

	
4.3.

	
Capitalization of Purchaser. The entire authorized capital stock and other equity securities of Purchaser consists of 200,000,000 shares of common stock with a par value of $0.01 (the "Purchaser Common Stock") and no shares of preferred stock. There are no agreements purporting to restrict the transfer of the Purchaser Common Stock, no voting agreements, voting trusts, or other arrangements restricting or affecting the voting of the Purchaser Common Stock.

	  	  
	
4.4.

	
Non-Contravention. Neither the execution, delivery and performance of this Agreement, nor the consummation of the Transaction, will:

 

	  	
(a)  

	
conflict with, result in a violation of, cause a default under (with or without notice, lapse of time or both) or give rise to a right of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any material benefit under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the material properties or assets of Purchaser under any term, condition or provision of any loan or credit agreement, note, debenture, bond, mortgage, indenture, lease or other agreement, instrument, permit, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Purchaser or any of its material property or assets;

 

	  	
 (b)  

	
violate any provision of the applicable incorporation or charter documents of Purchaser; or

 

	  	
 (c)  

	
violate any order, writ, injunction, decree, statute, rule, or regulation of any court or governmental or regulatory authority applicable to Purchaser or any of its material property or assets.

 

	
4.5.

	
Validity of Purchaser Common Stock Issuable upon the Transaction. The Purchaser Shares to be issued to the Selling Shareholders upon consummation of the Transaction in accordance with this Agreement will, upon issuance, have been duly and validly authorized and, when so issued in accordance with the terms of this Agreement, will be duly and validly issued, fully paid and non-assessable.

 

	
5.

	
CLOSING CONDITIONS

	  	  
	
5.1.

	
Conditions Precedent to Closing by Purchaser. The obligation of Purchaser to consummate the Transaction is subject to the satisfaction or written waiver of the conditions set forth below by a date mutually agreed upon by the parties hereto in writing and in accordance with Section 10.6. The Closing of the Transaction contemplated by this Agreement will be deemed to mean a waiver of all conditions to Closing. These conditions precedent are for the benefit of Purchaser and may be waived by Purchaser in its sole discretion.

 

	 	
(a)   

	
Representations and Warranties. The representations and warranties of Seller and the Selling Shareholders set forth in this Agreement will be true, correct and complete in all respects as of the Closing Date, as though made on and as of the Closing Date.

 

	 	
(b)    

	
Performance. All of the covenants and obligations that Seller and the Selling Shareholders are required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been performed and complied with in all material respects.

 

	 	
(c)   

	
Transaction Documents. This Agreement, the Seller Documents, the Seller Financial Statements and all other documents necessary or reasonably required to consummate the Transaction, all in form and substance reasonably satisfactory to Purchaser, will have been executed and delivered to Purchaser.

 

	 	
(d)  

	
Third Party Consents. Purchaser will have received duly executed copies of all third party consents and approvals contemplated by this Agreement, in form and substance reasonably satisfactory to Purchaser.

 

  

- 12 -

  

 

	 	
(e)

	
Employment Agreements. Purchaser will have received from Seller copies of all agreements or arrangements that evidence the employment of all of the hourly and salaried employees of Seller as set out on Schedule 9 attached hereto, which constitute all of the employees reasonably necessary to operate the business of Seller substantially as presently operated.

	 	  	  
	 	
(f)

	
No Material Adverse Change. No Seller Material Adverse Effect will have occurred since the date of this Agreement.

	 	  	  
	 	
(g)

	
Outstanding Shares of Seller. Seller will have no more than 100 shares of Seller Common Stock issued and outstanding on the Closing Date.

	 	  	  
	 	
(h)

	
Delivery of Seller Books and Records. Seller will have delivered to Purchaser the Seller Books and Records.

	 	  	  
	 	
(i)

	
Due Diligence Review of Seller Books and Records. Purchaser and its accountants will be reasonably satisfied with their due diligence investigation and review of the Seller Books and Records.

	 	  	  
	 	
(j)

	
Due Diligence Generally. Purchaser and its solicitors will be reasonably satisfied with their due diligence investigation of Seller that is reasonable and customary in a transaction of a similar nature to that contemplated by the Transaction, including:

 

	 	 	
(i)

	
materials, documents and information in the possession and control of Seller and the Selling Shareholders which are reasonably germane to the Transaction;

 

	 	  	
(ii) 

	
a physical inspection of the assets of Seller by Purchaser or its representatives; and

	 	  	  	  
	 	  	
(iii) 

	
title to the material assets of Seller.

 

	  	
(k)

	
Compliance with Securities Laws. Purchaser will have received evidence satisfactory to Purchaser that the Purchaser Shares issuable in the Transaction will be issuable:

 

	 	  	
(i)

	
without registration pursuant to the Securities Act in reliance on a safe harbor from the registration requirements of the Securities Act provided by Regulation S; and

 

	 	  	
In order to establish the availability of the safe harbor from the registration requirements of the Securities Act for the issuance of Purchaser Shares to each Selling Shareholder, Seller will deliver to Purchaser on Closing, a Regulation S Certificate or Rule 506 Certificate, as applicable, and a Questionnaire duly executed by each Selling Shareholder.

 

	
5.2.

	
Conditions Precedent to Closing by Seller. The obligation of Seller and the Selling Shareholders to consummate the Transaction is subject to the satisfaction or written waiver of the conditions set forth below by a date mutually agreed upon by the parties hereto in writing and in accordance with Section 10.6. The Closing of the Transaction will be deemed to mean a waiver of all conditions to Closing. These conditions precedent are for the benefit of Seller and the Selling Shareholders and may be waived by Seller and the Selling Shareholders in their discretion.

 

	  	
(a)    

	
Representations and Warranties. The representations and warranties of Purchaser set forth in this Agreement will be true, correct and complete in all respects as of the Closing Date, as though made on and as of the Closing Date.

 

	  	
 (b)     

	
Performance. All of the covenants and obligations that Purchaser are required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been performed and complied with in all material respects. Purchaser must have delivered each of the documents required to be delivered by it pursuant to this Agreement.

 

  

- 13 -

  

 

	 	
(c)

	
Transaction Documents. This Agreement, the Purchaser Documents and all other documents necessary or reasonably required to consummate the Transaction, all in form and substance reasonably satisfactory to Seller, will have been executed and delivered by Purchaser.

	 	  	  
	 	
(d)

	
No Action. No suit, action, or proceeding will be pending or threatened before any governmental or regulatory authority wherein an unfavorable judgment, order, decree, stipulation, injunction or charge would result in and/or:

 

	 	  	
(i)

	
 the consummation of any of the transactions contemplated by this Agreement; or

	 	  	  	  
	 	  	
(ii)

	
 cause the Transaction to be rescinded following consummation.

	 	  	  	  

 

	 	
(e)

	
Due Diligence Generally. Seller will be reasonably satisfied with their due diligence investigation of Purchaser that is reasonable and customary in a transaction of a similar nature to that contemplated by the Transaction.

 

	
6.

	
ADDITIONAL COVENANTS OF THE PARTIES

	  	  
	
6.1.

	
Notification of Financial Liabilities. Seller will immediately notify Purchaser in accordance with Section 10.6 hereof, if Seller receives any advice or notification from its independent certified public accounts that Seller has used any improper accounting practice that would have the effect of not reflecting or incorrectly reflecting in the books, records, and accounts of Seller, any properties, assets, Liabilities, revenues, or expenses. Notwithstanding any statement to the contrary in this Agreement, this covenant will survive Closing and continue in full force and effect.

	  	  
	
6.2.

	
Access and Investigation. Between the date of this Agreement and the Closing Date, Seller, on the one hand, and Purchaser, on the other hand, will, and will cause each of their respective representatives to:

 

	 	
(a)  

	
afford the other and its representatives full and free access to its personnel, properties, assets, contracts, books and records, and other documents and data;

 

	 	
(b) 

	
furnish the other and its representatives with copies of all such contracts, books and records, and other existing documents and data as required by this Agreement and as the other may otherwise reasonably request; and

 

	 	
(c)  

	
furnish the other and its representatives with such additional financial, operating, and other data and information as the other may reasonably request.

	 	 	 
	 	
All of such access, investigation and communication by a party and its representatives will be conducted during normal business hours and in a manner designed not to interfere unduly with the normal business operations of the other party. Each party will instruct its auditors to co-operate with the other party and its representatives in connection with such investigations.

 

	
6.3.

	
Confidentiality. All information regarding the business of Seller including, without limitation, financial information that Seller provides to Purchaser during Purchaser's due diligence investigation of Seller will be kept in strict confidence by Purchaser and will not be used (except in connection with due diligence), dealt with, exploited or commercialized by Purchaser or disclosed to any third party (other than Purchaser's professional accounting and legal advisors) without the prior written consent of Seller. If the Transaction contemplated by this Agreement does not proceed for any reason, then upon receipt of a written request from Seller, Purchaser will immediately return to Seller (or as directed by Seller) any information received regarding Seller's business. Likewise, all information regarding the business of Purchaser including, without limitation, financial information that Purchaser provides to Seller during its due diligence investigation of Purchaser will be kept in strict confidence by Seller and will not be used (except in connection with due diligence), dealt with, exploited or commercialized by Seller or disclosed to any third party (other than Seller's professional accounting and legal advisors) without Purchaser's prior written consent. If the Transaction contemplated by this Agreement does not proceed for any reason, then upon receipt of a written request from Purchaser, Seller will immediately return to Purchaser (or as directed by Purchaser) any information received regarding Purchaser's business.

 

  

- 14 -

  

 

	
6.4.

	
Notification. Between the date of this Agreement and the Closing Date, each of the parties to this Agreement will promptly notify the other parties in writing if it becomes aware of any fact or condition that causes or constitutes a material breach of any of its representations and warranties as of the date of this Agreement, if it becomes aware of the occurrence after the date of this Agreement of any fact or condition that would cause or constitute a material breach of any such representation or warranty had such representation or warranty been made as of the time of occurrence or discovery of such fact or condition. Should any such fact or condition require any change in the Schedules relating to such party, such party will promptly deliver to the other parties a supplement to the Schedules specifying such change. During the same period, each party will promptly notify the other parties of the occurrence of any material breach of any of its covenants in this Agreement or of the occurrence of any event that may make the satisfaction of such conditions impossible or unlikely.

	  	  
	
6.5

	
Exclusivity. Until such time, if any, as this Agreement is terminated pursuant to this Agreement, Seller and Purchaser will not, directly or indirectly, solicit, initiate, entertain or accept any inquiries or proposals from, discuss or negotiate with, provide any non-public information to, or consider the merits of any unsolicited inquiries or proposals from, any person or entity relating to any transaction involving the sale of the business or assets (other than in the ordinary course of business), or any of the capital stock of Seller or Purchaser, as applicable, or any merger, consolidation, business combination, or similar transaction other than as contemplated by this Agreement.

	  	  
	
6.6.

	
Conduct of Seller and Purchaser Business Prior to Closing. From the date of this Agreement to the Closing Date, and except to the extent that Purchaser otherwise consents in writing, Seller will operate its business substantially as presently operated and only in the ordinary course and in compliance with all applicable laws, and use its best efforts to preserve intact its good reputation and present business organization and to preserve its relationships with persons having business dealings with it. Likewise, from the date of this Agreement to the Closing Date, and except to the extent that Seller otherwise consents in writing, Purchaser will operate its business substantially as presently operated and only in the ordinary course and in compliance with all applicable laws, and use its best efforts to preserve intact its good reputation and present business organization and to preserve its relationships with persons having business dealings with it.

	  	  
	
6.7.

	
Certain Acts Prohibited — Seller. Except as expressly contemplated by this Agreement or for purposes in furtherance of this Agreement, between the date of this Agreement and the Closing Date, Seller will not, without the prior written consent of Purchaser:

 

	 	
(a)  

	
alter its bylaws, Articles of Incorporation or other incorporation documents;

	 	
(b)  

	
incur any liability or obligation other than in the ordinary course of business or encumber or permit the encumbrance of any properties or assets of Seller except in the ordinary course of business;

	 	
(c)  

	
dispose of or contract to dispose of any Seller property or assets, including the Intellectual Property Assets, except in the ordinary course of business consistent with past practice;

	 	
(d)  

	
issue, deliver, sell, pledge or otherwise encumber or subject to any lien any shares of the Seller Common Stock, or any rights, warrants or options to acquire, any such shares, voting securities or convertible securities;

	 	
(e)  

	
not:

 

	 	  	
(i)     

	
declare, set aside or pay any dividends on, or make any other distributions in respect of the Seller Common Stock, or

	 	  	
(ii)   

	
split, combine or reclassify any Seller Common Stock or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for shares of Seller Common Stock; or

 

  

- 15 -

  

 

	 	
(f)

	
not materially increase benefits or compensation expenses of Seller, other than as contemplated by the terms of any employment agreement in existence on the date of this Agreement, increase the cash compensation of any director, executive officer or other key employee or pay any benefit or amount not required by a plan or arrangement as in effect on the date of this Agreement to any such person.

 

	
6.8.

	
Public Announcements. Purchaser and Seller each agree that they will not release or issue any reports or statements or make any public announcements relating to this Agreement or the Transaction contemplated herein without the prior written consent of the other party, except as may be required upon written advice of counsel to comply with applicable laws or regulatory requirements after consulting with the other party hereto and seeking their reasonable consent to such announcement.

 

	
7.

	
CLOSING

	  	  
	
7.1.

	
Closing. The Closing shall take place on the Closing Date at the offices of the lawyers for Purchaser or at such other location as agreed to by the parties. Notwithstanding the location of the Closing, each party agrees that the Closing may be completed by the exchange of undertakings between the respective legal counsel for Seller and Purchaser, provided such undertakings are satisfactory to each party's respective legal counsel.

	  	  
	
7.2.

	
Closing Deliveries of Seller and the Selling Shareholders. At Closing, Seller and the Selling Shareholders will deliver or cause to be delivered the following, fully executed and in the form and substance reasonably satisfactory to Purchaser:

 

	 	
(a)

	
copies of all resolutions and/or consent actions adopted by or on behalf of the board of directors of Seller evidencing approval of this Agreement and the Transaction;

	 	  	  
	 	
(b)

	
if any of the Selling Shareholders appoint any person, by power of attorney or equivalent, to execute this Agreement or any other agreement, document, instrument or certificate contemplated by this agreement, on behalf of the Selling Shareholder, a valid and binding power of attorney or equivalent from such Selling Shareholder;

	 	  	  
	 	
(c)

	
share certificates representing the Seller Shares as required by Section 2.3 of this Agreement;

	 	  	  
	 	
(d)

	
all certificates and other documents required by Sections 2.3 and 5.1 of this Agreement;

	 	  	  
	 	
(e)

	
the Seller Documents, the Seller Books and Records and any other necessary documents, each duly executed by Seller, as required to give effect to the Transaction;

 

	
7.3.

	
Closing Deliveries of Purchaser. At Closing, Purchaser will deliver or cause to be delivered the following, fully executed and in the form and substance reasonably satisfactory to Seller:

 

	 	
(a)  

	
copies of all resolutions and/or consent actions adopted by or on behalf of the board of directors of Purchaser evidencing approval of this Agreement and the Transaction;

	 	
 (b)  

	
all certificates and other documents required by Section 5.2 of this Agreement;

	 	
 (c)  

	
the Purchaser Documents and any other necessary documents, each duly executed by Purchaser, as required to give effect to the Transaction; and

 

	
7.4.

	
Additional Closing Delivery of Purchaser. At Closing, Purchaser will deliver or cause to be delivered the share certificates representing the Purchaser Shares.

	  	  
	
8.

	
TERMINATION

	  	  
	
8.1.

	
Termination. This Agreement may be terminated at any time prior to the Closing Date contemplated hereby by:

	 	
(a)  

	
mutual agreement of Purchaser and Seller;

 

 

- 16 -

 

 

	 	
 (b)  

	
Purchaser, if there has been a material breach by Seller or any of the Selling Shareholders of any material representation, warranty, covenant or agreement set forth in this Agreement on the part of Seller or the Selling Shareholders that is not cured, to the reasonable satisfaction of Purchaser, within ten business days after notice of such breach is given by Purchaser (except that no cure period will be provided for a breach by Seller or the Selling Shareholders that by its nature cannot be cured);

 

	 	
 (c)  

	
Seller, if there has been a material breach by Purchaser of any material representation, warranty, covenant or agreement set forth in this Agreement on the part of Purchaser that is not cured by the breaching party, to the reasonable satisfaction of Seller, within ten business days after notice of such breach is given by Seller (except that no cure period will be provided for a breach by Purchaser that by its nature cannot be cured); or

 

	 	
 (d)  

	
Purchaser or Seller if any permanent injunction or other order of a governmental entity of competent authority preventing the consummation of the Transaction contemplated by this Agreement has become final and non-appealable.

 

	
8.2.

	
Effect of Termination. In the event of the termination of this Agreement as provided in Section 8.1, this Agreement will be of no further force or effect, provided, however, that no termination of this Agreement will relieve any party of liability for any breaches of this Agreement that are based on a wrongful refusal or failure to perform any obligations.

	  	  
	
9.

	
INDEMNIFICATION, REMEDIES, SURVIVAL

	  	  
	
9.1.

	
Certain Definitions. For the purposes of this Article 9 the terms "Loss" and "Losses" mean any and all demands, claims, actions or causes of action, assessments, losses, damages, Liabilities, costs, and expenses, including without limitation, interest, penalties, fines and reasonable attorneys, accountants and other professional fees and expenses, but excluding any indirect, consequential or punitive damages suffered by Purchaser or Seller including damages for lost profits or lost business opportunities.

	  	  
	
9.2.

	
Agreement of Seller to Indemnify. Seller will indemnify, defend, and hold harmless, to the full extent of the law, Purchaser and its shareholders from, against, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by Purchaser and its shareholders by reason of, resulting from, based upon or arising out of:

 

	 	
(a)  

	
the breach by Seller of any representation or warranty of Seller contained in or made pursuant to this Agreement, any Seller Document or any certificate or other instrument delivered pursuant to this Agreement; or

 

	 	
(b)  

	
the breach or partial breach by Seller of any covenant or agreement of Seller made in or pursuant to this Agreement, any Seller Document or any certificate or other instrument delivered pursuant to this Agreement.

 

	
9.3.

	
Agreement of the Selling Shareholders to Indemnify. The Selling Shareholders will indemnify, defend, and hold harmless, to the full extent of the law, Purchaser and its shareholders from, against, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by Purchaser and its shareholders by reason of resulting from, based upon or arising out of:

 

	 	
(a)  

	
any breach by the Selling Shareholders of Section 2.2 of this Agreement; or

 

	 	
(b)  

	
any misstatement, misrepresentation or breach of the representations and warranties made by the Selling Shareholders contained in or made pursuant to the Regulation S Certificate, Rule 506 Certificate or the Questionnaire executed by each Selling Shareholder as part of the share exchange procedure detailed in Section 2.3 of this Agreement.

 

 

- 17 -

 

 

	
9.4.

	
Agreement of Purchaser to Indemnify. Purchaser will indemnify, defend, and hold harmless, to the full extent of the law, Seller and the Selling Shareholders from, against, for, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by Seller and the Selling Shareholders by reason of, resulting from, based upon or arising out of:

 

	 	
(a)  

	
the breach by Purchaser of any representation or warranty of Purchaser contained in or made pursuant to this Agreement, any Purchaser Document or any certificate or other instrument delivered pursuant to this Agreement; or

 

	 	
 (b)  

	
the breach or partial breach by Purchaser of any covenant or agreement of Purchaser made in or pursuant to this Agreement, any Purchaser Document or any certificate or other instrument delivered pursuant to this Agreement.

 

	
10.

	
MISCELLANEOUS PROVISIONS

	  	  
	
10.1.

	
Effectiveness of Representations; Survival. Each party is entitled to rely on the representations, warranties and agreements of each of the other parties and all such representation, warranties and agreement will be effective regardless of any investigation that any party has undertaken or failed to undertake. Unless otherwise stated in this Agreement, and except for instances of fraud, the representations, warranties and agreements will survive the Closing Date and continue in full force and effect until one (I) year after the Closing Date.

	  	  
	
10.2.

	
Further Assurances. Each of the parties hereto will co-operate with the others and execute and deliver to the other parties hereto such other instruments and documents and take such other actions as may be reasonably requested from time to time by any other party hereto as necessary to carry out, evidence, and confirm the intended purposes of this Agreement.

	  	  
	
10.3.

	
Amendment. This Agreement may not be amended except by an instrument in writing signed by each of the parties.

	  	  
	
10.4

	
Expenses. Purchaser will bear all costs incurred in connection with the preparation, execution and performance of this Agreement and the Transaction contemplated hereby, including all fees and expenses of agents, representatives and accountants; provided that Purchaser and Seller will bear its respective legal costs incurred in connection with the preparation, execution and performance of this Agreement and the Transaction contemplated hereby. Notwithstanding the foregoing in the event that the Closing does not occur, each of the parties will be responsible for all costs (including, but not limited to, financial advisory, accounting, legal and other professional or consulting fees and expenses) incurred by it in connection with the transactions hereby contemplated.

	  	  
	
10.5

	
Entire Agreement. This Agreement, the schedules attached hereto and the other documents in connection with this transaction contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior arrangements and understandings, both written and oral, expressed or implied, with respect thereto. Any preceding correspondence or offers are expressly superseded and terminated by this Agreement.

 

	
10.6.

	
Notices. All notices and other communications required or permitted under this Agreement must be in writing and will be deemed given if sent by personal delivery, faxed with electronic confirmation of delivery, internationally-recognized express courier or registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address for a party as will be specified by like notice):

  

 

- 18 -

 

 

If to Seller or any of the Selling Shareholders:

 

BIOLOGIX HAIR, INC. 

82 Avenue Road,

Toronto, Ontario M5R 21-12

 

Attention:     Ron Holland

Fax:       (647) 344-5940

E-mail:                  rhgbiologixhair.com

 

To Seller at:

 

BIOLOGIX HAIR SCIENCE LTD. 

The Business Center, Upton,

St. Michael, Barbados

BB 11103

 

Attention:    David Csumrik

 

Fax:              (246) 429-5143

E-mail:        david@longview.bb

 

And in all instances, a copy to:

 

W.L. Macdonald Law Corporation 

4th Floor - 570 Granville Street, 

Vancouver British Colombia, 

Canada V6C 3P1

 

Fax: 604.681.4760

 

All such notices and other communications will be deemed to have been received:

 

	 	
 (a)

	
in the case of personal delivery, on the date of such delivery;

 

	 	
 (b)  

	
in the case of a fax, when the party sending such fax has received electronic confirmation of its delivery;

 

	 	
 (c)  

	
in the case of delivery by internationally-recognized express courier, on the business day following dispatch; and

 

	 	
 (d)  

	
in the case of mailing, on the fifth business day following mailing.

 

	
10.7.

	
Headings. The headings contained in this Agreement are for convenience purposes only and will not affect in any way the meaning or interpretation of this Agreement.

	  	  
	
10.8.

	
Benefits. This Agreement is and will only be construed as for the benefit of or enforceable by those persons party to this Agreement.

	  	  
	
10.9.

	
Assignment. This Agreement may not be assigned (except by operation of law) by any party without the consent of the other parties.

	  	  
	
10.10.  

	
Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Florida applicable to contracts made and to be performed therein.

 

  

- 19 -

  

 

	
10.11.

	
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party.

	  	  
	
10.12.

	
Gender. All references to any party will be read with such changes in number and gender as the context or reference requires.

	  	  
	
10.13.

	
Business Days. If the last or appointed day for the taking of any action required or the expiration of any rights granted herein shall be a Saturday, Sunday or a legal holiday in the State of Florida, then such action may be taken or right may be exercised on the next succeeding day which is not a Saturday, Sunday or such a legal holiday.

	  	  
	
10.14.

	
Counterparts. This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

	  	  
	
10.15.   

	
Fax Execution. This Agreement may be executed by delivery of executed signature pages by fax and such fax execution will be effective for all purposes.

	  	  
	
10.16.

	
Schedules and Exhibits. The schedules and exhibits are attached to this Agreement and incorporated herein.

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

 

	
BIOLOG1X HAIR, INC.

	 
	 	 	 
	
Per:

	/s/ Ron Holland	 
	 	 	 
	
Ron Holland, President and Director

	 

 

	

BIOLOGIX HAIR SCIENCE LTD.

	 
	 	 	 
	
Per:

	/s/ David Csumrik	 
	 	 	 
	

David Csumrik, President and Director

	 

 

  

- 20 -

  

 

	  	  
	
10.11.

	
Construction.The language used in this Agreement will he deemed to be the language chosen by the parties to express their mutual intent. and no rule of strict construction will be applied against any party

	  	  
	
10.12.

	
Gender. All references to any party will he read with such changes in number and gender as the context or reference requires

	  	  
	
10.13.

	
Business Days. If the last or appointed day for the taking of any action required or the expiration of any rights granted herein shall he a Saturday. Sunday or a legal holiday in the Stale of Florida, then such action max he taken or right may he exercised on the next succeeding day which is not a Saturday, Sunday or such a legal holiday.

 

	
10.14.

	
Counterparts. This Agreement may he executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart

	  	  
	
10.15.

	
Fax Execution. This Agreement may he executed by delivery of executed signature pages by fax and such fax execution will be effective for all purposes.

 

	
10.16.   

	
Schedules and Exhibits. The schedules and exhibits are attached to this Agreement and incorporated herein.

 

IN WIENTSS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

 

	

BIOLOCIX HAIR. INC.

	 
	 	 	 
	
Per:

	/s/ Ron Holland	 
	 	 	 
	

Ron Holland, President and Director

	 

 

	

BIOLOCIX HAIR SCIENCE LTD.

	 
	 	 	 
	
Per:

	/s/ David Csumrik	 
	 	 	 
	

David Csumrik, President and Director

	 

 

  

- 21 -

  

 

	
10.11.

	
Construction. The language used in this Agreement will he deemed to be the language chosen by the parties to express their mutual intent. and no rule of strict construction will he applied against any party.

	  	  
	
10.12.

	
Gender. All references to any party will he read with such changes in number and gender as the context or reference requires.

	  	  
	
10.13.

	
Business Days. If the last or appointed day for the taking of any action required or the expiration of any rights granted herein shall he a Saturday, Sunday or a legal holiday in the State of Florida. then such action may be taken or right may he exercised on the next succeeding day which is not a Saturday, Sunday or such a legal holiday.

	  	  
	
10. 14.   

	
Counterparts. 1 his Agreement may he executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties. it being understood that all parties need not sign the same counterpart.

	  	  
	
10.15.

	
 Fax Execution. This Agreement may he executed by delivers of executed signature pages by fax and such fax execution will be effective for all purposes.

	  	  
	
10.16.

	
Schedules and Exhibits. The schedules and exhibits arc attached to this Agreement and incorporated herein.

 

	

BIOLOCIX HAIR. INC.

	 
	 	 	 
	
Per:

	/s/ Ron Holland	 
	 	 	 
	

Ron Holland, President and Director

	 

 

	

BIOLOCIX HAIR SCIENiCL LTD.

	 
	 	 	 
	
Per:

	/s/ David Csumrik	 
	 	 	 
	

David Csumrik, President and Director

	 

 

  

- 22 -

  

 

SCHEDULE 1

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

THE SELLING SHAREHOLDERS

 

	
Name

	
Address

	
Portion of

Purchase Price

Payable Within

30 days

following

Execution of

this Agreement

	
Portion of

Purchase Price

Payable In the

Form of

Promissory

	
Number of

Seller Shares

held before

Closing

	
Total 

Number of 

Purchaser 

Shares to be 

issued by 

Purchaser 

on Closing

	
Gruppen Investments Ltd.

 

Attention:

 

Trevor Swain Director/President

 

Elizabeth Collie Director/secretary

 

	
Loyalist Plaza

Don Mackay Blvd 

Abaco, Bahamas

	
$1,029,000

	
$1,911,000

	
49

	
1,960,000

	
Pendolino Investments Ltd.

 

Attention:

 

Michael A. Dean Director/President

 

Venise Medurerk Director/secretary

 

	
Loyalist Plaza

Don Mackay Blvd 

Abaco, Bahamas

	
$1,071,000

	
$1,989,000

	
51

	
2,040,000

	  	
Total:

	
$2,100,000

	
$3,900,000

	
100

	
4,000,000

 

	

GRUPPEN INVESTMENTS LTD.

	 
	 	 	 
	
Per:

	/s/ Trevor Swain	 
	

Trevor Swain, President and Director 

 

	

PENDOLINO INVESTMENTS LTD.

	 
	 	 	 
	
Per:

	/s/ Michael A. Dean	 
	

Michael A. Dean , President and Director

 

  

  

  

 

SCHEDULE I

TO THE SHARE PURCHASE AGREEMENT

AMONG I3/OLOGIX HAIR. INC., BIOLOCIIX HAIR. SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

THE SELLING SHAREHOLDERS

 

	
Name

	
Address

	
Portion of

Purchase Price

Payable Within

30 days

following

Execution of

this Agreement

	
Portion of

Purchase Price

Payable In the

Form of

Promissory

	
Number of

Seller Shares

held before

Closing

	
Total 

Number of 

Purchaser 

Shares to be 

issued by 

Purchaser 

on Closing

	
Gruppen Investments Ltd.

 

Attention:

 

Trevor Swain Director/President

 

Elizabeth Collie Director/secretary

 

	
Loyalist Plaza

Don Mackay Blvd 

Abaco, Bahamas

	
$1,029,000

	
$1,911,000

	
49

	
1,960,000

	
Pendolino Investments Ltd.

 

Attention:

 

Michael A. Dean Director/President

 

Venise Medurerk Director/secretary

 

	
Loyalist Plaza

Don Mackay Blvd 

Abaco, Bahamas

	
$1,071,000

	
$1,989,000

	
51

	
2,040,000

	  	
Total:

	
$2,100,000

	
$3,900,000

	
100

	
4,000,000

 

	

GRUPPEN INVESTMENTS LTD.

	 
	 	 	 
	
Per:

	/s/ Trevor Swain	 
	

Trevor Swain, President and Director 

 

	

PENDOLINO INVESTMENTS LTD.

	 
	 	 	 
	
Per:

	/s/ Michael A. Dean	 
	

Michael A. Dean , President and Director

 

  

  

  

 

Schedule lA

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

ACKNOWLEDGED AND AGREED TO THIS         day of       ,2012, BY:

 

	GRUPPEN INVESTMENTS LTD.	 
	

(Name of Subscriber — Please type or print)

	 
	 	 
	 	 
	
(Signature and, if applicable, Office)

	 
	 	 
	 	 
	
(Address of Subscriber)

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

	 
	 	 
	 	 
	
(Country of Subscriber)

	 
	 	 
	 	 
	
(Telephone number of Subscriber)

	 
	 	 
	 	 
	
(Social Security/Insurance No. of Subscriber)

	 

 

  

  

  

 

Schedule lA

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

ACKNOWLEDGED AND AGREED TO THIS 23 day of, April 2012, BY:

 

	GRUPPEN INVESTMENTS LTD.	 
	

(Name of Subscriber — Please type or print)

	 
	 	 
	 	 
	
(Signature and, if applicable, Office)

	 
	 	 
	 	 
	
(Address of Subscriber)

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

	 
	 	 
	 	 
	
(Country of Subscriber)

	 
	 	 
	 	 
	
(Telephone number of Subscriber)

	 
	 	 
	 	 
	
(Social Security/Insurance No. of Subscriber)

	 

 

  

  

  

 

Schedule 1B

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN TILE SHARE PURCHASE AGREEMENT

 

ACKNOWLEDGED AND AGREED TO THIS                      day of,                                2012, BY:

 

	
PENDOLINO INVESTMENTS LTD.

	 
	

(Name of Subscriber — Please type or print)

	 
	 	 
	 	 
	
(Signature and, if applicable, Office)

	 
	 	 
	 	 
	
(Address of Subscriber)

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

	 
	 	 
	 	 
	
(Country of Subscriber)

	 
	 	 
	 	 
	
(Telephone number of Subscriber)

	 
	 	 
	 	 
	
(Social Security/Insurance No. of Subscriber)

	 

 

  

  

  

 

Schedule lA

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

ACKNOWLEDGED AND AGREED TO THIS 23 day of, April 2012, BY:

 

	GRUPPEN INVESTMENTS LTD.	 
	

(Name of Subscriber — Please type or print)

	 
	 	 
	 	 
	
(Signature and, if applicable, Office)

	 
	 	 
	 	 
	
(Address of Subscriber)

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

	 
	 	 
	 	 
	
(Country of Subscriber)

	 
	 	 
	 	 
	
(Telephone number of Subscriber)

	 
	 	 
	 	 
	
(Social Security/Insurance No. of Subscriber)

	 

  

  

  

 

SCHEDULE 2A

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

CERTIFICATE OF NON-U.S. SHAREHOLDER — GRUPPEN INVESTMENTS LTD.

 

In connection with the issuance of common stock (the "Purchaser Shares") of BIOLOGIX HAIR, INC., a Florida corporation ("Purchaser"), to the undersigned, pursuant to that certain Share Purchase Agreement dated April] 9 2012, (the "Agreement"), among Purchaser, BIOLOGIX HAIR SCIENCE LTD., a Barbados company ("Seller") and the shareholders of Seller as set out in the Agreement (each, a "Selling Shareholder"), the undersigned Selling Shareholder hereby agrees, acknowledges, represents and warrants that:

 

1.         the undersigned is not a "U.S. Person" as such term is defined by Rule 902 of Regulation S under the United States Securities Act of 1933, as amended ("U.S. Securities Act") (the definition of which includes, but is not limited to, an individual resident in the U.S. and an estate or trust of which any executor or administrator or trust, respectively is a U.S. Person and any partnership or corporation organized or incorporated under the laws of the U.S.);

 

2.          none of the Purchaser Shares have been or will be registered under the U.S. Securities Act, or under any state securities or "blue sky" laws of any state of the United States, and may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S, except in accordance with the provisions of Regulation S or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with any applicable state and foreign securities laws;

 

3.         the Selling Shareholder understands and agrees that offers and sales of any of the Purchaser Shares prior to the expiration of a period of one year after the date of original issuance of the Purchaser Shares (the one year period hereinafter referred to as the "Distribution Compliance Period") shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the U.S. Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the U.S. Securities Act or an exemption therefrom and in each case only in accordance with applicable state and foreign securities laws;

 

4.         the Selling Shareholder understands and agrees not to engage in any hedging transactions involving any of the Purchaser Shares unless such transactions are in compliance with the provisions of the U.S. Securities Act and in each case only in accordance with applicable state and provincial securities laws;

 

5.         the Selling Shareholder is acquiring the Purchaser Shares for investment only and not with a view to resale or distribution and, in particular, it has no intention to distribute either directly or indirectly any of the Purchaser Shares in the United States or to U.S. Persons;

 

6.         the Selling Shareholder has not acquired the Purchaser Shares as a result of, and will not itself engage in, any directed selling efforts (as defined in Regulation S under the U.S. Securities Act) in the United States in respect of the Purchaser Shares 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 Purchaser Shares; provided, however, that the Selling Shareholder may sell or otherwise dispose of the Purchaser Shares pursuant to registration thereof under the U.S. Securities Act and any applicable state and provincial securities laws or under an exemption from such registration requirements;

 

7.         the statutory and regulatory basis for the exemption claimed for the sale of the Purchaser 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 U.S. Securities Act or any applicable state and provincial securities laws;

 

  

- i -

  

 

8.         Purchaser has not undertaken, and will have no obligation, to register any of the Purchaser Shares under the U.S. Securities Act;

 

9.         Purchaser is entitled to rely on the acknowledgements, agreements, representations and warranties and the statements and answers of the Selling Shareholder contained in the Agreement and this Certificate, and the Selling Shareholder will hold harmless Purchaser from any loss or damage either one may suffer as a result of any such acknowledgements, agreements, representations and/or warranties made by the Selling Shareholder not being true and correct;

 

10.        the undersigned has been advised to consult their own respective legal, tax and other advisors with respect to the merits and risks of an investment in the Purchaser Shares and, with respect to applicable resale restrictions, is solely responsible (and Purchaser is not in any way responsible) for compliance with applicable resale restrictions;

 

11.        the undersigned and the undersigned's advisor(s) have had a reasonable opportunity to ask questions of and receive answers from Purchaser in connection with the acquisition of the Purchaser Shares under the Agreement, and to obtain additional information, to the extent possessed or obtainable by Purchaser without unreasonable effort or expense;

 

12.        the books and records of Purchaser were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by the undersigned during reasonable business hours at its principal place of business and that all documents, records and books in connection with the acquisition of the Purchaser Shares under the Agreement have been made available for inspection by the undersigned, the undersigned's attorney and/or advisor(s);

 

13.        the undersigned:

 

(a)         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 undersigned is resident (the "International Jurisdiction") which would apply to the acquisition of the Purchaser Shares;

 

(b)         the undersigned is acquiring the Purchaser Shares pursuant to exemptions from prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the undersigned is permitted to acquire the Purchaser Shares under the applicable securities laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions;

 

(c)         the applicable securities laws of the authorities in the International Jurisdiction do not require Purchaser 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 the Purchaser Shares; and

 

(d)         the acquisition of the Purchaser Shares by the undersigned does not trigger:

 

(i)         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

 

(ii)         any continuous disclosure reporting obligation of Purchaser in the International Jurisdiction; and

 

the undersigned will, if requested by Purchaser, deliver to Purchaser a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in Sections 13(c) and 13(d) above to the satisfaction of Purchaser, acting reasonably;

 

14.        the undersigned (i) is able to fend for itself in connection with the acquisition of the Purchaser Shares; (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the Purchaser Shares; and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;

 

  

- ii -

  

 

15.        the undersigned is not aware of any advertisement of any of the Purchaser Shares and is not acquiring the Purchaser 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;

 

16.        no person has made to the undersigned any written or oral representations:

 

(a)         that any person will resell or repurchase any of the Purchaser Shares;

 

(b)         that any person will refund the purchase price of any of the Purchaser Shares;

 

(c)         as to the future price or value of any of the Purchaser Shares; or

 

(d)         that any of the Purchaser Shares 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 Purchaser Shares on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the common shares of Purchaser on the OTC Bulletin Board;

 

17.        none of the Purchaser Shares are listed on any stock exchange or automated dealer quotation system and no representation has been made to the undersigned that any of the Purchaser Shares will become listed on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the common shares of Purchaser on the OTC Bulletin Board;

 

18.        the undersigned is outside the United States when receiving and executing this Agreement and is acquiring the Purchaser Shares as principal for their 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 the Purchaser Shares;

 

19.        neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the Purchaser Shares;

 

20.        the Purchaser Shares are not being acquired, directly or indirectly, for the account or benefit of a U.S. Person or a person in the United States;

 

21.        the undersigned acknowledges and agrees that Purchaser shall refuse to register any transfer of Purchaser Shares not made in accordance with the provisions of Regulation S, pursuant to registration under the U.S. Securities Act, or pursuant to an available exemption from registration under the U.S. Securities Act;

 

22.        the undersigned understands and agrees that the Purchaser Shares will bear the following legend:

 

"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").

 

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."

 

  

- iii -

  

 

23.        the address of the undersigned included herein is the sole address of the undersigned as of the date of this certificate.

 

IN WITNESS WHEREOF, I have executed this Certificate of Non-U.S. Shareholder.

 

	GRUPPEN INVESTMENTS LTD.	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	Date:	 	, 2012
	

Signature

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Print Name

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

Title (if applicable)

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Address

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

  

- iv -

  

 

23.        the address of the undersigned included herein is the sole address of the undersigned as of the date of this certificate.

 

IN WITNESS WHEREOF, I have executed this Certificate of Non-U.S. Shareholder.

 

	GRUPPEN INVESTMENTS LTD.	 	 	 	 
	 	 	 	 	 
	 	 	Date:	 	 
	

Signature

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Print Name

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

Title (if applicable)

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Address

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

  

  

- v -

  

 

SCHEDULE 2B

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

CERTIFICATE OF NON-U.S. SHAREHOLDER — PENDOLINO INVESTMENTS LTD.

 

In connection with the issuance of common stock (the "Purchaser Shares") of BIOLOGIX HAIR, INC., a Florida corporation ("Purchaser"), to the undersigned, pursuant to that certain Share Purchase Agreement dated Aprill 9 2012, (the "Agreement"), among Purchaser, BIOLOGIX HAIR SCIENCE LTD., a Barbados company ("Seller") and the shareholders of Seller as set out in the Agreement (each, a "Selling Shareholder"), the undersigned Selling Shareholder hereby agrees, acknowledges, represents and warrants that:

 

1.   the undersigned is not a "U.S. Person" as such term is defined by Rule 902 of Regulation S under the United States Securities Act of 1933, as amended ("U.S. Securities Act") (the definition of which includes, but is not limited to, an individual resident in the U.S. and an estate or trust of which any executor or administrator or trust, respectively is a U.S. Person and any partnership or corporation organized or incorporated under the laws of the U.S.);

 

2.   none of the Purchaser Shares have been or will be registered under the U.S. Securities Act, or under any state securities or "blue sky" laws of any state of the United States, and may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S, except in accordance with the provisions of Regulation S or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with any applicable state and foreign securities laws;

 

3.   the Selling Shareholder understands and agrees that offers and sales of any of the Purchaser Shares prior to the expiration of a period of one year after the date of original issuance of the Purchaser Shares (the one year period hereinafter referred to as the "Distribution Compliance Period") shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the U.S. Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the U.S. Securities Act or an exemption therefrom and in each case only in accordance with applicable state and foreign securities laws;

 

4.   the Selling Shareholder understands and agrees not to engage in any hedging transactions involving any of the Purchaser Shares unless such transactions are in compliance with the provisions of the U.S. Securities Act and in each case only in accordance with applicable state and provincial securities laws;

 

5.   the Selling Shareholder is acquiring the Purchaser Shares for investment only and not with a view to resale or distribution and, in particular, it has no intention to distribute either directly or indirectly any of the Purchaser Shares in the United States or to U.S. Persons;

 

6.   the Selling Shareholder has not acquired the Purchaser Shares as a result of, and will not itself engage in, any directed selling efforts (as defined in Regulation S under the U.S. Securities Act) in the United States in respect of the Purchaser Shares 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 Purchaser Shares; provided, however, that the Selling Shareholder may sell or otherwise dispose of the Purchaser Shares pursuant to registration thereof under the U.S. Securities Act and any applicable state and provincial securities laws or under an exemption from such registration requirements;

 

7.   the statutory and regulatory basis for the exemption claimed for the sale of the Purchaser 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 U.S. Securities Act or any applicable state and provincial securities laws;

 

  

- i -

  

 

8.           Purchaser has not undertaken, and will have no obligation, to register any of the Purchaser Shares under the U.S. Securities Act;

 

9.           Purchaser is entitled to rely on the acknowledgements, agreements, representations and warranties and the statements and answers of the Selling Shareholder contained in the Agreement and this Certificate, and the Selling Shareholder will hold harmless Purchaser from any loss or damage either one may suffer as a result of any such acknowledgements, agreements, representations and/or warranties made by the Selling Shareholder not being true and correct;

 

10.         the undersigned has been advised to consult their own respective legal, tax and other advisors with respect to the merits and risks of an investment in the Purchaser Shares and, with respect to applicable resale restrictions, is solely responsible (and Purchaser is not in any way responsible) for compliance with applicable resale restrictions;

 

11.         the undersigned and the undersigned's advisor(s) have had a reasonable opportunity to ask questions of and receive answers from Purchaser in connection with the acquisition of the Purchaser Shares under the Agreement, and to obtain additional information, to the extent possessed or obtainable by Purchaser without unreasonable effort or expense;

 

12.         the books and records of Purchaser were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by the undersigned during reasonable business hours at its principal place of business and that all documents, records and books in connection with the acquisition of the Purchaser Shares under the Agreement have been made available for inspection by the undersigned, the undersigned's attorney and/or advisor(s);

 

13.         the undersigned:

 

(a)          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 undersigned is resident (the "International Jurisdiction") which would apply to the acquisition of the Purchaser Shares;

 

(b)          the undersigned is acquiring the Purchaser Shares pursuant to exemptions from prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the undersigned is permitted to acquire the Purchaser Shares under the applicable securities laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions;

 

(c)          the applicable securities laws of the authorities in the International Jurisdiction do not require Purchaser 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 the Purchaser Shares; and

 

(d)         the acquisition of the Purchaser Shares by the undersigned does not trigger:

 

(i)          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

 

(ii)         any continuous disclosure reporting obligation of Purchaser in the International Jurisdiction; and 

 

the undersigned will, if requested by Purchaser, deliver to Purchaser a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in Sections 13(c) and 13(d) above to the satisfaction of Purchaser, acting reasonably;

 

14.         the undersigned (i) is able to fend for itself in connection with the acquisition of the Purchaser Shares; (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the Purchaser Shares; and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;

 

  

- ii -

  

 

15.         the undersigned is not aware of any advertisement of any of the Purchaser Shares and is not acquiring the Purchaser 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;

 

16.         no person has made to the undersigned any written or oral representations:

 

(a)         that any person will resell or repurchase any of the Purchaser Shares;

 

(b)         that any person will refund the purchase price of any of the Purchaser Shares;

 

(c)         as to the future price or value of any of the Purchaser Shares; or

 

(d)         that any of the Purchaser Shares 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 Purchaser Shares on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the common shares of Purchaser on the OTC Bulletin Board;

 

17.         none of the Purchaser Shares are listed on any stock exchange or automated dealer quotation system and no representation has been made to the undersigned that any of the Purchaser Shares will become listed on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the common shares of Purchaser on the OTC Bulletin Board;

 

18.         the undersigned is outside the United States when receiving and executing this Agreement and is acquiring the Purchaser Shares as principal for their 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 the Purchaser Shares;

 

19.         neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the Purchaser Shares;

 

20.         the Purchaser Shares are not being acquired, directly or indirectly, for the account or benefit of a U.S. Person or a person in the United States;

 

21.         the undersigned acknowledges and agrees that Purchaser shall refuse to register any transfer of Purchaser Shares not made in accordance with the provisions of Regulation S, pursuant to registration under the U.S. Securities Act, or pursuant to an available exemption from registration under the U.S. Securities Act;

 

22.         the undersigned understands and agrees that the Purchaser Shares will bear the following legend:

 

"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").

 

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 TN 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."

 

  

- iii -

  

 

23.        the address of the undersigned included herein is the sole address of the undersigned as of the date of this certificate.

 

IN WITNESS WHEREOF, I have executed this Certificate of Non-U.S. Shareholder.

 

	
PENDOLINO INVESTMENTS LTD.

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	Date:	 	, 2012
	

Signature

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Print Name

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

Title (if applicable)

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Address

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

  

- iv -

  

 

23.        the address of the undersigned included herein is the sole address of the undersigned as of the date of this certificate.

 

IN WITNESS WHEREOF, I have executed this Certificate of Non-U.S. Shareholder.

 

	GRUPPEN INVESTMENTS LTD.	 	 	 	 
	 	 	 	 	 
	 	 	Date:	 	 
	

Signature

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Print Name

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

Title (if applicable)

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Address

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

  

  

- v -

  

 

SCHEDULE 3

[SEE ATTACHED PROMISSORY NOTES]

 

  

- i -

  

 

PROMISSORY NOTE

 

	
US $1,911,000

	
 April 19, 2012

 

TO: Gruppen Investments Ltd.

 

Loyalist Plaza

Don Mackay Blvd 

Abaco, Bahamas

 

Attention: Trevor Swain

 

FOR VALUE RECEIVED, Biologix Hair, Inc. ("Borrower") promises to pay to the order of Gruppen Investments Ltd. (the "Lender") the principal sum of $1,911,000 in lawful currency of the United States (the "Principal Sum").

 

It is understood and agreed that Borrower shall pay to the Lender all of the Principal Sum evidenced by this Promissory Note on April 19, 2014 (the "Maturity Date").

 

On or before the Maturity Date, the Borrower shall repay the Principal Sum or such amount as remains outstanding at such time.

 

The undersigned shall have the privilege of prepaying in whole or in part the Principal Sum.

 

Presentment, protest, notice of protest and notice of dishonor are hereby waived.

This Promissory Note will be governed by and construed in accordance with the laws of the State of Florida applicable to contracts made and to be performed therein.

 

	 	 	 	 
	 	 	
Ron Holland. President and Director

	 

 

  

- ii -

  

 

PROMISSORY NOTE

 

	
US $1,911,000

	
 April 19, 2012

 

TO: Gruppen Investments Ltd.

 

Loyalist Plaza

Don Mackay Blvd 

Abaco, Bahamas

 

Attention: Trevor Swain

 

FOR VALUE RECEIVED. Biologix Hair, Inc. ("Borrower") promises to pay to the order olCiruppen Investments I.td. (the "Lender-) the principal sum oil:1.911.000 in lawful currency of the United States (the "Principal Sum").

 

It is understood and agreed that Borrower shall pay to the Lender all of the Principal Sum evidenced by this Promissory Note on April 19 2014 (the "Maturity Date.).

 

On or belOre the Maturity Date. the Borrower shall repay the Principal Sum or such amount as remains outstanding at such time.

 

The undersigned shall have the privilege of prepay ing in whole or in part the Principal Sum.

 

Presentment. protest, notice of protest and notice of dishonor arc hereby waived.

 

This Pmmissor) Note will he governed by and construed in accordance v ith the laws of the State of Florida applicable to contracts made and to be perlOrmed therein.

 

	 	 	/s/ Ron Holland	 
	 	 	
Ron Holland. President and Director

	 

 

  

- iii -

  

 

PROMISSORY NOTE

 

	
US $1,989,000

	
April 19, 2012

 

TO: Pendolino Investments Ltd.

 

Loyalist Plaza

Don Mackay Blvd 

Abaco, Bahamas

 

Attention: Michael A. Dean

 

FOR VALUE RECEIVED, Biologix Hair, Inc. ("Borrower") promises to pay to the order of Pendolino Investments Ltd. (the "Lender") the principal sum of $1,989,000 in lawful currency of the United States (the "Principal Sum").

 

It is understood and agreed that Borrower shall pay to the Lender all of the Principal Sum evidenced by this Promissory Note on April 19, 2014 (the "Maturity Date").

 

On or before the Maturity Date, the Borrower shall repay the Principal Sum or such amount as remains outstanding at such time.

 

The undersigned shall have the privilege of prepaying in whole or in part the Principal Sum.

 

Presentment, protest, notice of protest and notice of dishonor are hereby waived.

 

This Promissory Note will be governed by and construed in accordance with the laws of the State of Florida applicable to contracts made and to be performed therein.

 

	 	 	/s/ Ron Holland	 
	 	 	
Ron Holland. President and Director

	 

 

  

- iv -

  

 

PROMISSORY NOTE

 

US $1,989,000April 19, 2012

 

To: Pendolino Investments Ltd.

 

Loyalist Plaza

Don Mackay Blvd

Abaco. Bahamas

 

Attention: Michael A. Dean

 

FOR VALIT RI('IVF1). Riologix Hair. Inc. ("Borrower") promises to pay to the order of Pendolino Investments I.td. (the -Lender') the principal sum 01-S1,989.000 in lawful currency of the I7nited States (the --Principal Sum").

 

It is understood and agreed that Borrower shall pay to the (.ender all of the Principal Sum evidenced by this Promissory Note on April 19, 2014 (the --Maturity Date").

 

On or heave the Maturity Date, the Borrower shall repay the Principal Sum or such amount as remains outstanding at such time.

 

The undersigned shall have the privilege of prepay ing in whole or in part the Principal Sum.

 

Presentment, protest_ notice of protest and notice of dishonor are hereby waived.

 

This Promissory Note will be governed by and construed in accordance v ith the laws of the State of Florida applicable to contracts made and to he perlOrmed therein.

 

	 	 	/s/ Ron Holland	 
	 	 	
Ron Holland. President and Director

	 

  

  

- v -

  

 

SCHEDULE 4

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

DIRECTORS AND OFFICERS OF SELLER

 

Directors:

 

David Csumrik

 

Officers:

 

David Csumrik, President

 

  

  

  

 

SCHEDULE 5

 

Intentionally Deleted

 

  

  

  

 

SCHEDULE 6

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

SELLER LEASES, SUBLEASES, CLAIMS, CAPITAL EXPENDITURES,

TAXES AND OTHER PROPERTY INTERESTS

 

  

  

  

 

SCHEDULE 6

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

SELLER LEASES, SUBLEASES, CLAIMS, CAPITAL EXPENDITURES,

TAXES AND OTHER PROPERTY INTERESTS

 

 

 

 

 

SCHEDULE 7

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

SELLER INTELLECTUAL PROPERTY

 

[SEE ATTACHED]

 

  

  

  

 

SCHEDULE 8

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

SELLER MATERIAL CONTRACTS

 

[SEE ATTACHED]

 

  

  

  

 

SCHEDULE 9

TO THE SHARE PURCHASE AGREEMENT

AMONG BIOLOGIX HAIR, INC., BIOLOGIX HAIR SCIENCE LTD. AND THE SELLING SHAREHOLDERS

AS SET OUT IN THE SHARE PURCHASE AGREEMENT

 

SELLER EMPLOYMENT AGREEMENTS AND ARRANGEMENTS

 

None

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