Document:

ex10-1.htm

    
      

      

    

    EXHIBIT 10.1

    FORBEARANCE
AGREEMENT

     

    This
Forbearance Agreement (the “Agreement”) is made as of this
____ day of June 2009 by and between Workstream Inc. (the “Company”) and the holder
listed on the signature page hereto (the “Holder”).

    

    RECITALS

    

    A.           The
Company and the Holder entered into that certain Exchange Agreement dated as of
August 29, 2008 (the “Exchange Agreement”).

     

    B.           Simultaneously
with the consummation of the transactions contemplated by the Exchange
Agreement, the Holder exchanged its Special Warrant (as defined in the Exchange
Agreement) and its 2007 Warrant (as defined in the Exchange Agreement) with the
Company for a Note (as defined in the Exchange Agreement) in the original
principal amount of $_________ and a Warrant (as defined in the Exchange
Agreement).

     

    C.           During
and only during the period beginning on the date of this Agreement and ending on
the fifteen (15) day anniversary of the date hereof (such period is referred to
herein as the “Standstill
Period” and such scheduled ending date is referred to herein as the
“Scheduled Standstill
Expiration Date”), the Holder is willing
to temporarily forbear from exercising certain rights and remedies under Section
3(b) of the Note on the terms, conditions, and provisions contained in this
Agreement and engage in discussions with the Company regarding a potential
restructuring of the Holder’s Note.

     

    AGREEMENTS

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

     

    1.          Acknowledgment of Events of
Default. The Company acknowledges and agrees that:

    

    (i)           an
Event of Default (as defined in the Note) has occurred prior to the date hereof
under Section 3(a)(i) of the Note as a result of the suspension from trading of
the Common Shares (as defined in the Note) on an Eligible Market (as defined in
the Note) for a period of five (5) consecutive Trading Days (as defined in the
Note);

     

    (ii)           an
Event of Default has occurred prior to the date hereof under Section 3(a)(vi) of
the Note as a result of clause (i) above causing an Event of Default to occur
under the Other Notes (as defined in the Note);

     

    (iii)           an
Event of Default will occur under Section 3(a)(vii) of the Note upon the
delisting of the Common Shares from the Principal Market (as defined in the
Exchange Agreement), resulting in a material breach by the Company of Section
4(c) of the Exchange Agreement;

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (iv)           an
Event of Default will occur under Section 3(a)(i) of the Note upon the failure
of the Common Shares to be listed on an Eligible Market for a period of five (5)
consecutive Trading Days;

    

    (v)           an
Event of Default will occur under Section 3(a)(ii) of the Note as a result of
the suspension and the delisting of the Common Shares from an Eligible Market
because immediately following such suspension and delisting the Common Shares
will not be listed on a designated exchange for purposes of the Income Tax Act
(Canada); and

     

    (vi)           an
Event of Default will occur under Section 3(a)(vi) of the Note as a result of
each of clauses (iii) through (v) above causing an Event of Default to occur
under the Other Notes.

     

    For
purposes of this Agreement, (i) the Events of Default listed in clauses (i) and
(ii) above are collectively referred to herein as the “Existing Events of Default”
and each is individually referred to herein as an “Existing Event of Default;”
(ii) the Events of Default listed in clauses (iii) through (vi) above are
collectively referred to herein as the “Imminent Events of Default” and each is
individually referred to herein as an “Imminent Event of Default;” and (iii)
the Existing Events of Default and the Imminent Events of Default are
collectively referred to herein as the “Defaults” and each is
individually referred to herein as a “Default.” The Company
represents and warrants to the Holder that (a) no other Event of Default has
occurred other than the Existing Events of Default; (b) no other breach by the
Company or any of its Subsidiaries of their respective obligations has occurred
under any of the Transaction Documents; (c) to the best knowledge of the
Company, no other Event of Default is imminent other than the Imminent Events of
Default; and (d) the Company has no knowledge of any fact, event or circumstance
that could reasonably be expected to result in the occurrence of an Event of
Default at any time during the thirty (30) day period following the date hereof
other than the Imminent Events of Default.

     

                  2.Forbearance; Standstill
Termination. Unless and until a Standstill Termination (as defined below)
occurs, during the Standstill Period, the Holder will not exercise any of its
rights or remedies under Section 3(b) of the Note solely with respect to the
Defaults. Upon the occurrence of a Standstill Termination, the Standstill Period
shall be automatically terminated and the Holder shall then be permitted and
entitled to immediately exercise all of its rights and remedies under
Section 3(b) of the Note with respect to each of the Defaults. “Standstill Termination” shall
mean the earlier to occur of (i) the Scheduled Standstill Expiration Date or
(ii) the occurrence of any Event of Default after the date hereof (other than an
Imminent Event of Default).

     

                  3.No Waiver; Reservation of
Rights. The Company acknowledges that the Holder is not waiving any of
the Defaults but is simply agreeing to forbear from exercising its rights and
remedies with respect to the Defaults during the Standstill Period to the extent
expressly set forth in this Agreement. Without limiting the generality of the
foregoing, the Company acknowledges and agrees that immediately upon the
occurrence of a Standstill Termination, the Holder shall have all of its rights
and remedies with respect to the Defaults to the same extent, and with the same
force and effect, as if the forbearance had not occurred. The Company will not
assert that 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (i) the
Holder is obligated in any way to continue beyond the occurrence of a Standstill
Termination to forbear from enforcing its rights or remedies under Section 3(b)
of the Note with respect to any of the Defaults or (ii) the Holder is not
entitled to act on any of the Defaults after the occurrence of a Standstill
Termination as if the Standstill Period never existed, and the Company hereby
forever waives any right to assert either of the foregoing in clauses (i) and
(ii) with regard to the specific forbearance granted pursuant to this Agreement.
The Company acknowledges that the Holder has made no representations as to what
actions, if any, the Holder will take upon the occurrence of a Standstill
Termination or the occurrence of any Event of Default after the date hereof
(other than an Imminent Event of Default) or any other breach of any of the
Transaction Documents (as defined in the Note) after the date hereof, and the
Holder does hereby specifically and fully reserve any and all rights, remedies,
and claims it has (after giving effect hereto) with respect to the Defaults and
each other Event of Default or each other breach under any of the Transaction
Documents that may occur. It is expressly understood and agreed that nothing
contained in this Agreement shall prohibit the Holder from exercising any rights
or remedies that may be available to the Holder under this Agreement, the Note,
any other Transaction Document or applicable law, other than its rights and
remedies under Section 3(b) of the Note solely with respect to the Defaults
during the Standstill Period as expressly contemplated hereby.

     

                  4.Existing Agreements; Entire
Agreement. Each of the Transaction Documents and each of the obligations
of the Company and its Subsidiaries thereunder and each of the rights of and
benefits to the Holder thereunder are, and shall continue to be, in full force
and effect and each is hereby ratified and confirmed in all respects. The
execution, delivery and effectiveness of this Agreement shall not operate as an
amendment or waiver of any right, power or remedy of the Holder under any
Transaction Document, nor constitute an amendment or waiver of any provision of
any Transaction Document and all of them shall continue in full force and
effect. This Agreement supersedes all other prior oral or written agreements
between the Holder and the Company solely with respect to the specific matters
contained herein, and this Agreement contains the entire understanding of the
parties with respect to the specific matters covered herein. The Recitals set
forth above are hereby incorporated into this Agreement by reference. The language used in this
Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against
any party.

    

    5.           Counterparts. This
Agreement may be executed in two or more identical counterparts, all of which
shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party. In
the event that any signature is delivered by facsimile transmission or by an
e-mail which contains a portable document format (.pdf) file of an executed
signature page, such signature page shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the
same force and effect as if such signature page were an original
thereof.

     

    6.   Headings;
Severability. The headings of this Agreement are for convenience of
reference and shall not form part of, or affect the interpretation of, this
Agreement. Unless the context clearly indicates otherwise, each pronoun herein
shall be deemed to include the masculine, feminine, neuter, singular and plural
forms thereof. The terms “including,” “includes,” “include” and words of
like import shall be construed broadly as if followed by the

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     words
“without limitation.” The terms “herein,” “hereunder,” “hereof” and words of
like import refer to this entire Agreement instead of just the provision in
which they are found. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction.

     

    7.           Miscellaneous. The
Company hereby represents and warrants that it has the necessary power and
authority to execute, deliver, and perform the undertakings contained herein,
and that this Agreement constitutes the valid and binding obligation of the
Company enforceable against it in accordance with its terms. The parties hereto
hereby acknowledge and agree that this Agreement shall constitute a Transaction
Document for all purposes and that the Company’s breach of any representation,
warranty or covenant contained in this Agreement shall constitute an Event of
Default under Section 3(a)(vii) of the Note that is material and is not capable
of being cured. The provisions of this Agreement shall survive the termination
of the Standstill Period. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not
for the benefit of, nor may any provision hereof be enforced by, any other
Person (as defined in the Note), except the Persons expressly set forth in
Section 9 below, who shall be intended third party beneficiaries
thereof.

     

    8.           Governing Law; Jurisdiction;
Jury Trial. The parties hereby agree that pursuant to 735 Illinois
Compiled Statutes 105/5-5 they have chosen that all questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be governed by the internal laws of the State of Illinois, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State
of Illinois or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of Illinois. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in Cook County, for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof.  Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner permitted
by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND
AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

     

    9.           RELEASE. FOR VALUE RECEIVED
(INCLUDING, WITHOUT LIMITATION, THE AGREEMENTS OF THE HOLDER IN THIS AGREEMENT),
THE COMPANY, ON BEHALF OF ITSELF AND ITS SUBSIDIARIES, HEREBY RELEASES THE
HOLDER AND ALL THE OTHER INDEMNITEES (AS DEFINED IN THE EXCHANGE AGREEMENT)
(COLLECTIVELY, THE “RELEASED
PARTIES”) OF AND 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    FROM ANY
AND ALL DEMANDS, ACTIONS, CAUSES OF ACTION, SUITS, CONTROVERSIES, ACTS AND
OMISSIONS, LIABILITIES, AND OTHER CLAIMS OF EVERY KIND OR NATURE WHATSOEVER,
BOTH IN LAW AND IN EQUITY, KNOWN OR UNKNOWN, WHICH THE COMPANY OR ANY OF ITS
SUBSIDIARIES NOW HAS OR EVER HAD AGAINST ANY OF THE RELEASED PARTIES ARISING OUT
OF OR RELATING TO ANY OF THE TRANSACTION DOCUMENTS (INCLUDING, WITHOUT
LIMITATION, ANY ARISING OUT OF OR RELATING TO THE NEGOTIATIONS IN CONNECTION
WITH THE DEFAULTS), AND THE COMPANY FURTHER ACKNOWLEDGES THAT, AS OF THE DATE
HEREOF, NEITHER THE COMPANY NOR ANY OF ITS SUBSIDIARIES HAS ANY COUNTERCLAIM,
SET-OFF, OR DEFENSE AGAINST ANY OF THE RELEASED PARTIES, EACH OF WHICH THE
COMPANY HEREBY EXPRESSLY WAIVES ON BEHALF OF ITSELF AND ITS
SUBSIDIARIES.

    

    10.           Disclosure. The
Company shall, on or before 8:30 a.m., New York time, on the first (1st)
Business Day after the date of this Agreement file a Current Report on Form 8-K
describing the material terms of this Agreement in the form required by the 1934
Act (as defined in the Exchange Agreement) and attaching this, or a form of
this, Agreement as an exhibit thereto.

    

    11.           Terms. The Company
represents, warrants and covenants that neither the Company nor any of its
Subsidiaries has entered into, or will enter into, any agreement or instrument
with, or for the benefit of, any holder of Other Notes on terms or conditions
which are more favorable to any such holder than the terms and conditions
provided to, or for the benefit of, the Holder. To the extent the Company or any
Subsidiary enters into any agreement or instrument with, or for the benefit of,
any holder of Other Notes that contains any terms or conditions which are more
favorable to any such holder than the terms and conditions provided to, or for
the benefit of, the Holder (which shall be a breach of the immediately preceding
sentence), then the Holder, at its option, shall be entitled to the benefit of
such more favorable terms or conditions (as the case may be) and this Agreement
shall be automatically amended to reflect such more favorable terms or
conditions (as the case may be).

    

    [signature page
follows]

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the Holder
and the Company have caused their respective signature page to this Agreement to
be duly executed as of the date first written above.

     

    
      	
               
      

            	
              WORKSTREAM
      INC.

            

    

     

    
      	
               
      

            	
               

            	 By:____________________________________

    

    
      	
               
      

            	
               

            	 Its:

    

     

    [NOTE
HOLDER]

     

    
      	
               
      

            	
              By:____________________________________

            

    

    
      	
               
      

            	
               

            	 Its:

    

    

    

    
      
         

      

      
        6Filed by sedaredgar.com - Panglobal Brands Inc. - Exhibit 10.1

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

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

SUBSCRIPTION AGREEMENT 
(Offshore Subscribers) 

	TO: 	
      Panglobal Brands Inc. (the “Company”) 

	  	
      2853 E. Pico Blvd 

		
      Los Angeles, CA 90023  

		
      United States of
America  

Purchase of Units 

1. Subscription 

1.1 On the basis of the representations and warranties and
subject to the terms and conditions set forth herein, ______________ (the
“Subscriber”) hereby irrevocably subscribes for and agrees to purchase
_____ Units, each Unit comprising one common share (the “Shares”)
and on half of one common share purchase warrant (the “Warrants”)
(the Shares, the Warrants and the common shares issued on exercise of the
Warrants, together being the “Securities”) of the Company’s common stock
(the “Common Stock”), par value $0.0001 at a purchase price per Unit of
US$0.10 (the subscription and agreement to purchase being the
“Subscription”), for an aggregate purchase price of US$______ . (the
“Subscription Proceeds”). 

1.2 Each whole Warrant may be exercised into one Share at a
price of $0.25 for twelve months from Closing. The Company will provide a form
of Warrant on Closing.

1.3 On the basis of the representations and warranties and
subject to the terms and conditions set forth herein, the Company hereby
irrevocably agrees to sell the Shares to the Subscriber. 

1.4 Subject to the terms hereof, the Subscription will be
effective upon its acceptance by the Company. 

- 2 - 

2. Payment 

2.1 The Company acknowledges that it has received loans (the
“Loans”) from the Subscriber, and that the balance currently due from the
Company to the Subscriber pursuant to the Loans is an aggregate amount of
US$______ (the “Indebtedness”). The Company and the Subscriber agree to
apply $______ in principal and $______ in accrued interest of the amount of the
Indebtedness in payment of the Subscription Proceeds and, upon delivery of a
signed copy of this Subscription Agreement to the Subscriber together with a
certificate evidencing the Shares registered as provided in this Subscription
Agreement (the “Share Certificate”), the Loans shall be paid in full as
to outstanding interest owing and as to $______ in principal, leaving a
principal balance of $______ . 

2.2 All dollar figures refer to $USD.

3. Documents Required from
Subscriber 

3.1 The Subscriber must complete, sign and return to the
Company an executed copy of this Subscription Agreement prior to the Closing
Date. 

4. Closing 

4.1 The sale of the Shares shall be completed (the
“Closing”) on April 30, 2009 (the “Closing Date”) or such other
date as the parties may agree upon. 

5. Acknowledgements of
Subscriber 

5.1 The Subscriber acknowledges and agrees that: 

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

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

	 	 	 
	 	(c) 	
      it has received and carefully read this Subscription
      Agreement;

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

	 	 	 
	 	(e) 	
      it and its advisor(s) have had a reasonable opportunity
      to ask questions of and receive answers from the Company in connection
      with the sale of the Shares hereunder, and to obtain additional
      information, to the extent possessed or obtainable by the Company without
      unreasonable effort or expense;

- 3 - 

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

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

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

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

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

	 	 	 	 
	 		(ii) 	
      applicable resale restrictions;

	 	 	 	 
	 	(j) 	
      none of the Securities are listed on any stock exchange
      or automated dealer quotation system and no representation has been made
      to the Subscriber that any of the Securities will become listed on any
      stock exchange or automated dealer quotation system, except that currently
      certain market makers make market in the common shares of the Company on
      the OTC Bulletin Board operated by the Financial Industry Regulatory
      Authority (“FINRA”);

	 	 	 	 
	 	(k) 	
      none of the Securities may be offered or sold by the
      Subscriber to a U.S. Person (as defined in Section 6.2, below, or for the account or benefit of a U.S.
      Person (other than a distributor) prior to the end of the Distribution
      Compliance Period (as defined herein);

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

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

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

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

	 	 	 	 
	 	(p) 	
      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;

- 4 - 

	 	(q) 	
      the Subscriber is purchasing the Securities pursuant to
      an exemption from the registration and the prospectus requirements of
      applicable securities legislation on the basis that the Subscriber is not
      a resident of either the United States or Canada and, as a
    consequence:

	 	 	 	 
	 		(i) 	
      is restricted from using most of the civil remedies
      available under securities legislation,

	 	 	 	 
	 		(ii) 	
      may not receive information that would otherwise be
      required to be provided under securities legislation, and

	 	 	 	 
	 		(iii) 	
      the Company is relieved from certain obligations that
      would otherwise apply under securities legislation;

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

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

6. Representations, Warranties and
Covenants of the Subscriber 

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

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

	 	 	 
	 	(b) 	
      the Subscriber is not acquiring the Securities for the
      account or benefit of, directly or indirectly, any U.S. Person;

	 	 	 
	 	(c) 	
      the Subscriber is resident in the jurisdiction set out
      under the heading “Name and Address of Subscriber” on the signature page
      of this Subscription Agreement and the sale of the Securities to the
      Subscriber as contemplated in this Subscription Agreement complies with or
      is exempt from the applicable securities legislation of the jurisdiction
      of residence of the Subscriber;

	 	 	 
	 	(d) 	
      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;

	 	 	 
	 	(e) 	
      if the Subscriber is a corporation or other entity, the
      entering into of this Subscription Agreement and the transactions
      contemplated hereby do not and will 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;

	 	 	 
	 	(f) 	
      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;

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

- 5 - 

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

	 	 	 
	 	(i) 	
      the Subscriber is aware that an investment in the Company
      is speculative and involves certain risks, including the possible loss of
      the entire investment and it has carefully read and considered the matters
      set forth under the heading “Risk Factors” appearing in the Company’s
      Forms 10-K, 10-Q, 8-K and any other filings filed with the SEC;

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

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

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

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

	 	 	 
	 	(n) 	
      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 in accordance with its
      terms;

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

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

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

- 6 - 

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

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

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

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

	 	 	 	 
	 	(v) 	
      the Subscriber will indemnify the Company against, and
      will hold the Company and, where applicable, its respective directors,
      officers, employees, agents, advisors and shareholders harmless from, 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;

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

	 	 	 	 
	 	(x) 	
      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, except
      that currently the Company’s common shares are quoted on the over-the-
      counter market operated by the Over-The-Counter Bulletin Board operated by
      FINRA.

- 7 - 

6.2 In this Subscription Agreement, the term “U.S. Person”
shall have the meaning ascribed thereto in Regulation S. 

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

7.1 The Subscriber acknowledges that the representations and
warranties contained herein are made by it with the intention that such
representations and warranties may be relied upon by the Company and its legal
counsel in determining the Subscriber’s eligibility to purchase the Securities
under applicable securities legislation. The Subscriber further agrees that by
accepting delivery of the certificates representing the Shares, it will be
representing and warranting that the 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 on the date of this
Subscription Agreement and that they will survive the purchase by the Subscriber
of the Shares and will continue in full force and effect notwithstanding any
subsequent disposition by the Subscriber thereof. 

8. Resale Restrictions 

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

8.2 The Subscriber acknowledges that restrictions on the
transfer, sale or other subsequent disposition of the Securities by the
Subscriber may be imposed by securities laws in addition to any restrictions
referred to in Section 8.1 above, and, in particular, the Subscriber
acknowledges and agrees that none of the Securities may be offered or sold to a
U.S. Person or for the account or benefit of a U.S. Person (other than a
distributor) prior to the end of the Distribution Compliance Period. 

9. Acknowledgement and Waiver

9.1 The Subscriber has acknowledged that the decision to
purchase the Securities was solely made on the basis of information available to
the Subscriber on the EDGAR database maintained by the SEC at www.sec.gov. 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 the Securities. 

10. Legending of Subject
Securities 

10.1 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:

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

- 8 - 

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

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

11. Costs 

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

12. Governing Law 

12.1 This Subscription Agreement is governed by the laws of the
State of California and the federal laws of the United States applicable
therein. 

13. Survival 

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

14. Assignment 

14.1 This Subscription Agreement is not transferable or
assignable. 

15. Severability 

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

16. Entire Agreement 

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

17. Notices 

17.1 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 the signature page of this Subscription Agreement and
notices to the Company shall be directed to it at Panglobal Brands Inc.,2853 E.
Pico Blvd, Los Angeles, CA 90023, United States of America, Attention:
President. 

- 9 - 

18. Counterparts and Electronic
Means 

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

19. Delivery Instructions

19.1 The Subscriber hereby directs the Company to deliver the
Share Certificate issued pursuant to this Subscription Agreement to: 

19.2 The Subscriber hereby directs the Company to cause the
Share Certificate issued pursuant to this Subscription Agreement to be
registered on the books of the Company as follows: 

_________________________________
_________________________________

19.3 The undersigned hereby acknowledges that it will deliver
to the Company all such additional completed forms in respect of the
Subscriber’s purchase of the Securities as may be required for filing with the
appropriate securities commissions and regulatory authorities. 

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

	 	 
	 	(Name of Subscriber – Please type or print)
  
	 	  
	 	 
	 	(Signature and Office) 
	 	 
	 	(Address of Subscriber) 
	 	 
	 	(City, State or Province, Postal Code of
      Subscriber) 
	 	  
	 	(Country of Subscriber) 
	 	 
	 	(Facsimile no.) 

- 1 - 

A C C E P T A N C E 

The above-mentioned Subscription Agreement in respect of the
Shares is hereby accepted by Panglobal Brands Inc. 

DATED at Los Angeles as of the ____ day of April, 2009. 

PANGLOBAL BRANDS INC. 

	Per:	 	 
	 	Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]