Document:

ex10_5.htm

     

    
      INVESTOR
RIGHTS AGREEMENT

      

      THIS
INVESTOR RIGHTS AGREEMENT (the “Agreement”) made this 14th day
of January 2010 by and among Man Shing Agricultural Holdings, Inc., a Nevada
corporation with headquarters located at Unit 1005, 10/F, Tower B, Hunghom
Commercial Centre, 37 Ma Tau Wai Road, Hunghom, Kowloon, Hong Kong (the “Company ”) and Guang Dong
ZhiBo Investment Co.,Ltd (the “Investor”).

      

      BACKGROUND:

      

      A.       
   In connection with the Securities Purchase Agreement by and
among the parties hereto of even date herewith (the “Securities Purchase
Agreement”), the Company has agreed, upon the terms and subject to the
conditions of the Securities Purchase Agreement, to issue and sell to the
Investor secured units (the “Unit(s)”) where each unit
shall consist of (i) one three (3) year eight percent (8%) annual interest
$100,000 convertible redeemable debenture to be convertible into that number of
shares of the Company’s common stock, par value US$0.001 per share, (ii) 80,000
shares of the Company’s common stock, par value US $0.001 (collectively referred
to as the “Common
Stock”), and (iii) one Right to acquire an additional Unit within three
years, pursuant to the terms of the Securities Purchase Agreement for an
aggregate purchase price of up to Five Hundred Thousands U.S.
Dollars ($500,000)..

      

      B.        
  The parties hereto desire to set forth certain rights and
restrictions of the Investor as shareholders of the Company, as further set
forth herein.

      

      

      NOW,
THEREFORE, in consideration of the representations, warranties, covenants and
agreements contained in this Agreement, the parties agree as
follows:

      

      AGREEMENT:

      

      1.           Investor
Rights Provisions.  As long as the Investor, together with their
Affiliates, own at least fifteen percent (15%) of the Company’s outstanding
Common Stock (the “Investor
Shares”), the Company shall not, without first obtaining the written
consent of a majority of the Investor Shares:

      

             
    amend, alter or repeal any provision of the Articles of
Incorporation of the Company if such action would adversely alter the rights,
preferences, privileges or powers of, or restrictions provided for the benefit
of the Company’s Common Stock;

      

               
  amend, alter or repeal any provision of the Articles of
Incorporation or Bylaws of the Company if such action would increase the
authorized maximum number of directors on the Board of Directors;

      

              
   authorize or create any new class or series of shares having
rights, preferences or privileges with respect to dividends, redemption or
payments upon liquidation senior to or on a parity with the Company’s Common
Stock or having greater or equivalent voting rights than or to those granted to
the Company’s Common Stock generally;

      

        
          reclassify any new class
or series of shares having rights, preferences or privileges with respect to
dividends, redemption or payments upon liquidation senior to or on a parity with
the Company’s common stock or having greater or equivalent voting rights than or
to those granted to the Company’s Common Stock generally;

      

          
        enter into any Reorganization
Transaction;

      

             
     redeem or repurchase any shares of the Company,
other than (i) repurchases of Common Stock issued to or held by employees,
officers, directors or consultants of the Company or its subsidiaries upon
termination of their employment or services pursuant to agreements providing for
the right of said repurchase, (ii) repurchases of Common Stock issued to or held
by employees, officers, directors or consultants of the Company or its
subsidiaries pursuant to rights of first refusal contained in agreements
providing for such right, or (iii) repurchase of capital stock of the Company in
connection with the settlement of disputes with any shareholder.

      

            
      voluntarily liquidate or dissolve;

      

             
     appoint or terminate executive officers of the Company,
except as required of the Board of Directors in the exercise of their fiduciary
duties to the Company;

      

              
    approve any Related Party Transaction; or

      

      2.           Board
Composition.

      

      (a)           All
Shareholders shall vote at regular or special meetings of shareholders, and to
give written consent with respect to, the shares of Common Stock that they own
(or as to which they have voting power) to ensure that the size of the Board of
Directors shall be set and remain at five (5) directors.

       

      3.           Registration
Rights.  See Registration Rights Agreement.

      

      4.           Definitions.  For
purposes of this Agreement, the following definitions shall apply:

      

      (a)           “Additional
Shares of the Company’s Common Stock” means all shares of Common Stock issued or
deemed to be issued after the date of this Agreement, other than the following:
(i) shares of Common Stock issued or issuable to officers, directors and
employees of, or consultants to, the Company pursuant to stock grants, option
plans, purchase plans or other employee stock incentive programs or arrangements
approved by the Board of Directors, or upon exercise of options or warrants
granted to such parties pursuant to any such plan or arrangement; (ii) shares of
Common Stock issued upon the exercise or conversion of options or convertible
securities outstanding as of the date of this Agreement; (iii) shares of Common
Stock issued or issuable pursuant to the acquisition of another business entity
by the Company by merger, purchase of substantially all of the assets or other
reorganization or to a joint venture agreement, provided, that such issuances
are approved by the Board of Directors; (iv) shares of Common Stock issued or
issuable to banks, equipment lessors or other financial institutions pursuant to
a debt financing or commercial leasing transaction approved by the Board of
Directors; (v) shares of Common Stock issued or issuable in connection with any
settlement of any action, suit, proceeding or litigation approved by the Board
of Directors; (vi) shares of Common Stock issued or issuable in connection with
sponsored research, collaboration, technology license, development, marketing or
other similar agreements or strategic partnerships approved by the Board of
Directors; (vii) shares of Common Stock issued or issuable to suppliers or third
party service providers in connection with the provision of goods or services
pursuant to transactions approved by the Board of Directors; and (viii) shares
of Common Stock to be issued to new investors issued after the date of this
Agreement.

      

      (b)           “Affiliate”
of any particular person or entity means any other person or entity controlling,
controlled by or under common control with such particular person or entity
(including, without limitation, with respect to __________ and each of their
Affiliates, each of their constituent partners, retired partners, members or
investment or venture capital fund Affiliates), where “control” means the
possession, directly or indirectly, of the power to direct the management and
policies of a person or entity whether through the ownership of voting
securities, contract or otherwise.

        

      (c)           “Board
of Directors” means the Board of Directors of the Company.

      

      (d)           “Related
Party Transaction” means any transaction between the Company and an Affiliate of
the Company in excess of $100,000 individually or in excess of $500,000 in the
aggregate during any fiscal year, except for the following when approved by a
majority of disinterested members of the Board of Directors: (i) the
compensation of officers, directors and employees of, or consultants to the
Company or (ii) transactions where the terms and conditions of the transaction,
on an overall basis, are fair and reasonable to the Company and are at least as
favorable to the Company as those generally available between parties operating
at arm’s length.

      

      (e)           “Reorganization
Transaction” means (i) the acquisition of the Company by another entity by means
of any transaction or series of related transactions to which the Company is
party (including, without limitation, any stock acquisition, reorganization,
merger or consolidation but excluding any sale of stock for capital raising
purposes) other than a transaction or series of transactions in which the
holders of the voting securities of the Company outstanding immediately prior to
such transaction continue to retain (either by such voting securities remaining
outstanding or by such voting securities being converted into voting securities
of the surviving entity), as a result of shares in the Company held by such
holders prior to such transaction, at least fifty percent (50%) of the total
voting power represented by the voting securities of the Company or such
surviving entity outstanding immediately after such transaction or series of
transactions; or (ii) a sale, lease or other conveyance of all or substantially
all of the assets of the Company.

      

      (f)           “Shareholders”
means ______________________

      

      5.           Notices.  
All notices and other communications hereunder shall be in writing and shall be
deemed to have been validly served, given or delivered five (5) days after
deposit in the United States mails, by certified mail with return receipt
requested and postage prepaid, when delivered personally, one (1) day delivered
to any overnight courier, or when transmitted by facsimile transmission and upon
confirmation of receipt and addressed to the party to be notified as
follows:

       

      If to
Investor,
to:                                   Guang
Dong ZhiBo Investment Co.,Ltd

                                                                      Rm
903 Guang Dong Nong Xin Building,

      No.638 of
West of Huangpu Da Dao,

      TiHe
District, Guangzhou, P.R.China

      Telephone:
86-020-22002111

      Facsimile:
86-020-22002090

      

      If to the
Company,
to:                           Man
Shing Agricultural Holdings, Inc.

          Unit 1005, 10/F,
Tower

      Hunghom
Commercial Centre

      37 Ma Tau
Wai Road, Hunghom

      Kowloon,
Hong Kong

      Attention:  Mr.
Eddie Cheung, CEO

                                                                     
Telephone  (86) 536-4644888

                                                                     
Facsimile:  (86) 536-4643777

      

      With a
copy
to:                                      Jared
P. Febbroriello, Esq. LL.M. 

      JPF
Securities Law, LLC

      19720
Jetton Road

      3rd
Floor

      Cornelius,
NC 28031

      Telephone:
(704) 897-8334

          Facsimile:  (704)
897-8349

      

      Mr.
Patrick Mak

      Tai, Mak
and Partners

      Room 905
- 907, 9/F.

      Nan Fung
Tower

      173 Des
Voeux Road Central

      Hong
Kong

          Telephone: (852)
2850 6336

          Facsimile: (852)
2850 6086

      

      Or to
such other address as each party may designate for itself by like
notice.

       

      6.           Interpretation.  The
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this
Agreement.  Whenever the words “include”, “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words
“without limitation”. 

      

      7.           Entire
Agreement; No Third-Party Beneficiaries.  This Agreement and the other
agreements referred to herein constitute the entire agreement, and supersede all
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter of this Agreement.  This Agreement
is not intended to confer upon any person other than the parties any rights or
remedies.

      

      8.           Governing
Law.  This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Nevada, regardless of the laws that might
otherwise govern under applicable principles of conflicts of laws
thereof.

      

      9.           Assignment.

      

      (a)           Neither
this Agreement nor any of the rights, interests or obligations under this
Agreement shall be assigned, in whole or in part, by operation of law or
otherwise by any of the parties without the prior written consent of the other
parties, except that the rights of the Investors and their Affiliates under
Sections 1, 2, and 3 are fully assignable in connection with a transfer of
securities of the Company by any Investor or its Affiliates; provided, however,
that no party may be assigned any of the foregoing rights unless the Company is
given written notice at least seven (7) business days prior to any
assignment by such Investor or its Affiliates stating the name and address
of the assignee and identifying the securities of the Company as to which the
rights in question are being assigned; and provided further, that any such
assignee shall receive such assigned rights subject to all the terms and
conditions of this Agreement.

      

      (b)           Any
attempt by a Shareholder to sell or transfer any Company’s securities shall be
void and the Company hereby agrees that it will not effect such a transfer nor
will it treat any alleged transferee as the holder of such securities unless (i)
the transferee in such transfer agrees in writing to be subject to the terms
hereof by executing and delivering a Deed of Adherence substantially in the form
attached hereto as Exhibit A (a “Deed of Adherence”), (ii) such transfer
complies in all respects with the applicable provisions of the Bylaws and other
agreements among the Shareholders, and (iii) the transferee in such transfer
complies in all respects with the applicable securities laws.  Upon
the execution and delivery of a Deed of Adherence by such transferee, it shall
be deemed to be a party hereto as a Shareholder as if such transferee’s
signature appeared on the signature page of this Agreement.

      

      (c)           Subject
to the preceding subsections (a) and (b), this Agreement will be binding upon,
inure to the benefit of, and be enforceable by, the parties and their respective
successors and assigns.

      

      10.           Enforcement.  The
parties agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached.  It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement in any court of the United States located in the State of
Nevada, this being in addition to any other remedy to which they are entitled at
law or in equity.  In addition, each of the parties hereto (a) agrees
that it will not attempt to deny or defeat such personal jurisdiction or venue
by motion or other request for leave from any such court, and (b) agrees that it
will not bring any action relating to this Agreement or any of the transactions
contemplated by this Agreement in any state court other than such
court.

      

      11.           Severability.  Whenever
possible, each provision or portion of any provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law but
if any provision or portion of any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or portion of any provision in such jurisdiction,
and this Agreement will be reformed, construed and enforced in such jurisdiction
as if such invalid, illegal or unenforceable provision or portion of any
provision had never been contained herein.

      

      12.           Counterparts.  This
Agreement may be executed simultaneously in two or more counterparts, any one of
which need not contain the signatures of more than one party, but all such
counterparts taken together will constitute one and the same
Agreement.  This Agreement, to the extent delivered by means of a
facsimile machine or electronic mail (any such delivery, an "Electronic
Delivery"), shall be treated in all manner and respects as an original agreement
or instrument and shall be considered to have the same binding legal effect as
if it were the original signed version thereof delivered in
person.  At the request of any party hereto, each other party hereto
shall re-execute original forms hereof and deliver them in person to all other
parties.  No party hereto shall raise the use of Electronic Delivery
to deliver a signature or the fact that any signature or agreement or instrument
was transmitted or communicated through the use of Electronic Delivery as a
defense to the formation of a contract, and each such party forever waives any
such defense, except to the extent such defense related to lack of
authenticity.

      

      13.           Covenants
of the Company.  Subject to compliance with applicable laws, the
Company agrees to use its best efforts to ensure that the rights granted
hereunder are effective and that the parties hereto enjoy the benefits
thereof.  Such actions may include, without limitation, the use of the
Company’s best efforts to cause the nomination and election of the directors as
provided above, by causing a meeting of shareholders to be held or by causing a
written consent of shareholders to be circulated.  The Company will
not, by any voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be performed hereunder by the Company, but
will at all times in good faith assist in the carrying out of all of the
provisions of this Agreement and in the taking of all such actions as may be
necessary, appropriate or reasonably requested by the holders of a majority of
the outstanding voting securities held by the parties hereto assuming conversion
of all outstanding securities in order to protect the rights of the parties
hereunder against impairment.

      

      [Signature
Page Follows]

      

       

      

      

      

      

      

      

      

      IN
WITNESS WHEREOF, the undersigned have caused their duly authorized officers to
execute this Agreement as of the date first above written.

      

      MAN SHING
AGRICULTURAL HOLDINGS, INC.

       
 

      By:       /s/
Eddie
Cheung                                               

      Name: 
Eddie Cheung

      Title:   
Chief Executive Officer

       
 

      GUANG
DONG ZHIBO INVESTMENT CO.,LTD

      

      By:      /s/ 
Wei Quan
Shao                                          

      Name: Wei
Quan Shao

      Title:  
Legal Representative

       

       

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      EXHIBIT
A

       

      FORM
OF DEED OF ADHERENCE

       

      THIS DEED
OF ADHERENCE is made this __________ day of January, 2010 by and between Man
Shing Agricultural Holdings, Inc., a Nevada corporation (“Company”), and Guang
Dong ZhiBo Investment Co.,Ltd  (the “New Shareholder”).

       

      The
Company and the New Shareholder shall be referred to collectively as the
Parties.

       

      WHEREAS:

       

      (A)           As
of [____], 2010, certain shareholders of the Company and the Company entered
into an Investor Rights Agreement (the "Investor Rights Agreement"), a copy of
which is attached hereto as Exhibit 1.

       
 

      (B)           The
New Shareholder wishes to acquire an aggregate of _____________ _______________
[INSERT NUMBER and TYPE/CLASS OF SECURITIES] in the capital of the Company from
_______(the “Transferor”) and in accordance with the Investor Rights Agreement
has agreed to enter into this Deed of Adherence (the "Deed").

       
 

      (C)           The
Company is entering into this Deed on behalf of itself and as agent for all the
existing Shareholders of the Company.

       

      NOW,
THEREFORE, the Parties hereby agree as follows:

       

      1.           Interpretation.
In this Deed, except as the context may otherwise require, all words and
expressions defined in the Investor Rights Agreement shall have the same
meanings when used herein.

       
 

      2.           Covenant.  The
New Shareholder hereby covenants to the Company as trustee for all other persons
who are at present or who may hereafter become bound by the Investor Rights
Agreement, and to the Company itself, to adhere to and be bound by all the
duties, burdens and obligations of the Transferor imposed pursuant to the
provisions of the Investor Rights Agreement and all documents expressed in
writing to be supplemental or ancillary thereto as if the New Shareholder had
been an original party to the Investor Rights Agreement since the date
thereof.

       
 

      3.           Enforceability.  Each
existing Shareholder and the Company shall be entitled to enforce the Investor
Rights Agreement against the New Shareholder, and the New Shareholder shall be
entitled to all rights and benefits of the Transferor under the Investor Rights
Agreement in each case as if such New Shareholder had been an original party to
the Investor Rights Agreement since the date hereof.

       
 

      4.           Governing
Law.  This Deed shall be governed by, and construed in accordance
with, the laws of the State of Nevada, regardless of the laws that might
otherwise govern under applicable principles of conflicts of laws
thereof.

       
 

      5.           Counterparts.  This
Deed may be signed in any number of counterparts which together shall form one
and the same agreement.

       
 

      6.           Further
Assurance.  Each party agrees to take all such further action as may
be reasonably necessary to give full effect to this Deed on its terms and
conditions. 

       

      7.           Headings.  The
headings used in this Deed are used for convenience only and are not to be
considered in construing or interpreting this Agreement.

       

       

      [REMINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      IN
WITNESS whereof the parties have executed and delivered this Deed as a deed on
the day and year first hereinbefore mentioned.

      

      COMPANY:

       
 

      Signed as
a deed on behalf of

      

      MAN SHING
AGRICULTURAL HOLDINGS, INC.

       
 

      By:                                           

      Name:                    Eddie
Cheung

      Title:                      Chief
Executive Officer

       
 

      NEW
SHAREHOLDER:

       
 

      signed as
a deed on behalf of

      

      Guang
Dong ZhiBo Investment Co.,Ltd

      

      By:                                           

      Name:                     Wei
Quan Shao

      Title:                      
Legal Representative

      

      [SIGNATURE
PAGE TO DEED OF ADHERENCE]

       

       

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

       

      EXHIBIT
1 TO DEED OF ADHERENCE

      

      COPY
OF INVESTOR RIGHTS AGREEMENTex10-1.htm

These securities have not been registered under the Securities Act of 1933 (the "U.S. Securities Act") and may not be offered or sold in the United States or to U.S. persons (other than distributors) unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the
U.S. Securities Act is available. Hedging transactions involving these securities may not be conducted unless in compliance with the U.S. Securities Act.

BELVEDERE RESOURCES CORPORATION

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT

The undersigned subscriber (the “Subscriber”) hereby subscribes for and agrees to purchase 60,000,000 shares of the common stock of BELVEDERE RESOURCES CORPORATION (the “Company”) at a price of US$0.0001 per share (the “Shares”) for aggregate proceeds of US$6,000 (the “Funds”), all on the terms and subject
to the conditions set forth in Schedule “A” attached hereto.

 

	
EXECUTION BY SUBSCRIBER

	 	 
	 	George Michael Rock Rutherford
	
Tax ID or social insurance number
	
Name of Subscriber

	 	 
	/s/ Rock Rutherford	
238 Lakeview Circle                                                                   

Montgomery, Texas 77356

	
Signature of Subscriber or authorized signatory

of Subscriber (if Subscriber not an individual)
	

Address of Subscriber

	 	 
	Number and type of securities of the Company	
Name of contact person (if Subscriber not an individual)

	directly and indirectly held by the Subscriber	 
	 	936.689.7380                                                                   
	 	
Telephone number of Subscriber or contact person

	 	 
	 	
Facsimile number of Subscriber or contact person

 

Executed by the Subscriber this 12th day of January, 2010.

Please complete the following section if you require the certificate(s) representing the Shares to appear in the name of an intermediary, such as your broker, or require the certificate(s) delivered to an address other than that shown above.

	
REGISTRATION INSTRUCTIONS
	
DELIVERY INSTRUCTIONS

	 	 
	
Name to appear on certificate(s)
	
Name and account reference, if applicable

	 	 
	
Account reference, if applicable
	
Contact person

	 	 
	
Address of intermediary
	
Address for delivery

ACCEPTED by the Company this 12th day of January, 2010.

Per: /s/ Shawn Englmann

Shawn Englmann,

President and Chief Executive Officer

 

 

 

1

 

Schedule “A”

In consideration of the covenants and agreements herein, and the payment of one dollar made by each party to the other, the receipt and sufficiency of which is acknowledged by each party, the parties agree as follows:

Delivery of Documents and Funds

The Subscriber hereby delivers to the Company:

(a) a completed and executed copy of this Agreement;

  

(b) for all Subscribers: a completed and executed Investor Exemptions Questionnaire attached as Schedule “B” hereto, and in the case of a subscription for the Shares by the Subscriber acting as trustee or agent for a principal, the Subscriber shall provide the
Company with an Investor Exemptions Questionnaire in the form set forth in Schedule “B” hereto for each trust, beneficial owner and/or principal for which the Subscriber is acting as trustee or agent;

(c) if the Subscriber is a U.S. Person: a completed and executed Accredited Investor Questionnaire attached as Schedule “C” hereto and in the case of a subscription for the Shares by the Subscriber acting
as trustee or agent for a principal, an Accredited Investor Questionnaire in the form set forth in Schedule “C” hereto for each trust, beneficial owner and/or principal for which the Subscriber is acting as trustee or agent; and

(d) a certified check or bank draft for the Funds made payable to “AGR TOOLS, INC.” or evidence of a wire transfer sent to a bank account designated by the Company.

Closing

The closing of the transactions contemplated by this Agreement (the “Closing”) will take place as subscriptions are received by the Company.

At Closing, the Company will deliver to the Subscriber a certificate representing the Shares registered in the name of the Subscriber or as directed on the cover page of this Agreement.

 

2

 

Subscriber’s Representations, Warranties, Covenants, Acknowledgements and Agreements

The Subscriber represents and warrants to the Company, and acknowledges that the Company is relying on these representations and warranties to, among other things, ensure that it is complying with all of the applicable securities laws, that:

	
(a)
	
the Subscriber is purchasing as principal and is either:

  

	
(i)
	
not a U.S. person and is not acquiring the Shares for the account or benefit of any U.S. person; or

	
(ii)
	
a U.S. person who is purchasing the Shares in a transaction that does not require registration under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”).

	
(b)
	
if the Subscriber is a resident of a jurisdiction other than the British Columbia (an “International Jurisdiction”), then:

	
(i)
	
the Subscriber is knowledgeable of, or has been independently advised as to, the applicable securities laws of the International Jurisdiction which would apply to this subscription, if there are any;

	
(ii)
	
the Subscriber is purchasing the Shares pursuant to exemptions under the securities laws of that International Jurisdiction or, if such is not applicable, the Subscriber is permitted to purchase the Shares under the applicable securities laws of the International Jurisdiction without the need to rely on exemptions; and

  

	
(iii)
	
the applicable securities laws do not require the Company to make any filings or seek any approvals of any kind whatsoever from any regulatory authority of any kind whatsoever in the International Jurisdiction; and

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

	
(c)
	
if the Subscriber is a U.S. Person (as defined under Regulation S promulgated under the U.S. Securities Act (“Regulation S”), which definition includes an individual resident in the United States and an estate or trust of which any executor or administrator or trustee, respectively, is a U.S. Person), then:

	
  
	
(i)
	
the Subscriber understands that the Shares have not been and will not be registered under the U.S. Securities Act or any applicable state securities laws, and that the sale contemplated hereby is being made in reliance on an exemption from registration pursuant to Section 4(6) of the U.S. Securities Act to accredited investors (as that term is defined in Rule 501(a) of Regulation D under the U.S. Securities Act, (an “Accredited
Investor”)); and

	
  
	
(ii)
	
the Subscriber agrees that if it decides to offer, sell or otherwise transfer any of the Shares, it will not offer, sell or otherwise transfer any of such Shares directly or indirectly, unless:

	
  
	
(A)
	
the Company’s securities are publicly traded on a national securities exchange in Canada or the United States, the NASDAQ Stock Market or the OTC Bulletin Board; or

	
  
	
(B)
	
the Company consents, in its sole discretion, in writing to such transfer and the transfer is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S (or such successor rule or regulation then in effect), if applicable, and in compliance with applicable state securities laws and it has prior to such sale furnished to the Company an opinion of counsel, in a form reasonably satisfactory
to the Company regarding compliance with Rule 904 and any applicable state securities laws; or the transfer is made pursuant to an exemption from the registration requirements under the U.S. Securities Act provided by Rule 144A or 144 thereunder, if available, and in accordance with any applicable state securities laws and it has prior to such sale furnished to the Company an opinion of counsel, in a form reasonably satisfactory to the Company regarding compliance with Rule 144A or 144, as applicable, and any
applicable state securities laws; and

	
  
	
(iii)
	
the Subscriber understands and acknowledges that upon the issuance thereof, and until such time as the same is no longer required under applicable requirements of the U.S. Securities Act or applicable state securities laws, the certificates representing the Shares shall bear the following legends:

 

3

 

If the Subscriber is a Canadian resident:

“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.”

“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND A DAY AFTER THE LATER OF (i) THE PURCHASE OF THESE SECURITIES AND (ii) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.”

and

if the Shares are being sold outside of the United States in accordance with Rule 904 of Regulation S, the Regulations S legend may be removed by providing a declaration to the Company’s registrar and transfer agent in such form as the Company may prescribe, including an opinion of counsel that such sale complies with the requirements of the
U.S. Securities Act;

If the Subscriber is a U.S. resident:

“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.”

 

4

 

	
(d)
	
the Subscriber acknowledges that:

	
  
	
(i)
	
no securities commission or similar regulatory authority has reviewed or passed on the merits of the Shares;

	
  
	
(ii)
	
there is no government or other insurance covering the Shares;

	
  
	
(iii)
	
there are risks associated with the purchase of the Shares;

	
  
	
(iv)
	
there are restrictions on the Subscriber’s ability to resell the Shares and it is the responsibility of the Subscriber to find out what those restrictions are and to comply with them before selling the Shares;

	
  
	
(v)
	
the Subscriber is restricted from using certain of the civil remedies available under the applicable securities laws;

	
  
	
(vi)
	
the Subscriber may not receive information that might otherwise be required to be provided to the Subscriber under the applicable securities laws if the exemptions were not being used;

	
  
	 

	
  
	
(vii)
	
the Company is relieved from certain obligations that would otherwise apply under the applicable securities laws if the exemptions were not being used; and

	
  
	
(viii)
	
the Company is relying  on exemptions in applicable securities laws from the requirements to provide the Subscriber with a prospectus and to sell the Shares through a person registered to sell securities and the Subscriber understands that the exemptions release the Company from the requirements to provide the Subscriber with a prospectus and to sell the Shares through
a person registered to sell securities under the Securities Act (British Columbia) and, as a consequence of acquiring the Shares pursuant to those exemptions, certain protections, rights and remedies provided by the Securities Act (British Columbia), including statutory rights of rescission or damages, will not be available to the Subscriber;

 

	
(e)
	
the Subscriber is subscribing for the Shares as principal for its own account and not for the benefit of any other person (within the meaning of applicable securities laws) and not with a view to resale or distribution of all or any of the Shares or, if it is not subscribing as principal, it acknowledges that the Company may be required by law to disclose to certain
regulatory authorities the identity of each beneficial Subscriber for the Shares for whom it is acting;

	
(f)
	
the Shares are subject to a number of resale restrictions, including a restriction on trading.  Until the restriction on trading expires, the Subscriber will not be able to trade the Shares unless the Shares are registered or the Subscriber complies with an exemption from the prospectus requirements;

	
(g)
	
the offer and sale of the Shares was not accomplished by an advertisement or other general solicitation (and the Subscriber has not attended any seminar or meeting whose attendees have been invited by general solicitation or general advertisement) and the Subscriber was not induced to purchase the Shares as a result of any advertisement or general solicitation made by the Company;

	
(h)
	
if the Subscriber is a corporation, the Subscriber is a valid and subsisting corporation and was not organized for the purpose of acquiring the Shares, has the necessary corporate capacity and authority to execute and deliver this Agreement and to observe and perform its covenants and obligations hereunder and has taken all necessary corporate action in respect thereof, or, if the Subscriber is an individual, partnership, syndicate,
trust or other form of unincorporated organization, the Subscriber has the necessary legal capacity and authority to execute and deliver this Agreement and to observe and perform its covenants and obligations hereunder and has obtained all necessary approvals in respect thereof, and, in either case, upon the Company executing and delivering this Agreement, this Agreement will constitute a legal, valid and binding contract of the Subscriber enforceable against the Subscriber in accordance with its terms and neither
the agreement resulting from such acceptance nor the completion of the transactions contemplated hereby conflicts with, or will conflict with, or results, or will result, in a breach or violation of any law applicable to the Subscriber, any constating documents of the Subscriber or any agreement to which the Subscriber is a party or by which the Subscriber is bound;

 

 

5

 

 

	
(i)
	
this subscription is given for valuable consideration and may not be withdrawn or revoked by the Subscriber;

	
(j)
	
the Company may for any reason, at any time before acceptance of this Agreement, terminate the offering of Shares and, upon termination, the Company will return the Funds to the Subscriber without interest or deduction;

	
(k)
	
the Shares will be subject to the following resale or transfer restrictions:

	
  
	
(i)
	
the Shares will be subject to resale restrictions under applicable securities laws including resale restrictions under the Securities Act (British Columbia) that include a hold period of at least four months;

	
  
	 

	
  
	
(ii)
	
the Subscriber will not be able to resell, assign or otherwise dispose of the Shares unless they are subsequently distributed under a prospectus, registration statement or in compliance with all applicable resale restrictions;

	
  
	
(iii)
	
the Company may be required to legend the certificates representing the Shares regarding these and any other restrictions on resale; and

	
  
	
(iv)
	
the Company is under no obligation to file a registration statement, or register the resale of the Shares under a prospectus or registration statement, or assist the Subscriber in complying with any exemption from the prospectus or registration statement requirements or resale restrictions set out under applicable securities laws; provided, however, that in connection with any underwritten public offering by the Company, during
the period of duration (not to exceed 180 days) specified by the Company and an underwriter of common stock of the Company following the effective date of a registration statement of the Company with respect to such offering, the Subscriber will not, to the extent requested by the Company and such underwriter, directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase, pledge, or otherwise transfer or dispose of (other than to donees
who agree to be similarly bound) any of the Shares of the Company held by the Subscriber at any time during such period except common stock included in such registration.  If requested by such underwriter, the Subscriber agrees to execute a lock-up agreement in such form as the underwriter may reasonably propose.

	
(l)
	
the Subscriber will not resell, assign or otherwise dispose of the Shares other than in accordance with all applicable securities laws and the requirements of any exchange or over-the-counter market upon which any securities of the Company are then listed;

	
(m)
	
the Subscriber’s investment in the Shares is speculative and involves a high degree of risk, substantial financing for the Company may be required in the future, and there is no assurance that any such additional financing can be obtained;

	
(n)
	
the Subscriber is able to bear the economic risks of an investment in the Shares, including, without limiting the generality of the foregoing, the risk of losing part or all of the Funds, and the inability to sell, convert, exchange or transfer the Shares at a price which would enable the Subscriber to recoup his, her or its investment in the Shares;

	
(o)
	
other than any persons to whom the Company has agreed to pay a brokerage or finder’s fee, there is no person acting or purporting to act in connection with the transactions contemplated herein who is entitled to any brokerage or finder’s fee.  If any person establishes a claim that any fee or other compensation is payable in connection with this subscription for the Shares, the Subscriber covenants to indemnify
and hold harmless the Company with respect thereto and with respect to all costs reasonably incurred in the defence thereof;

	
(p)
	
the Subscriber, and each beneficial person for whom it is contracting hereunder, has been advised to consult its own legal advisors with respect to trading in the Shares and with respect to the resale restrictions imposed by the securities laws of the state in which the Subscriber resides, the U.S. Securities Act and the rules and regulations thereunder, and any other applicable securities laws, and acknowledges that no representation
has been made respecting the applicable hold periods or other resale restrictions applicable to such securities which restrict the ability of the Subscriber (or others for whom it is contracting hereunder) to resell such securities, that the Subscriber (or others for whom it is contracting hereunder) is solely responsible to find out what these restrictions are and the Subscriber is solely responsible (and the Company is not in any way responsible) for compliance with applicable resale restrictions and the Subscriber
is aware that it (or beneficial persons for whom it is contracting hereunder) may not be able to resell such securities except in accordance with limited exemptions under the securities laws (including the U.S. Securities Act) and other applicable securities laws;

 

 

6

 

 

	
(q)
	
the Subscriber will execute, deliver, file and otherwise assist the Company in filing any report, undertaking or document with respect to the purchase, sale, conversion or exchange of the Shares as required by counsel for the Company;

	
(r)
	
the Subscriber hereby authorizes the Company to correct any minor errors in, or complete any minor information missing from, any document which has been executed by the Subscriber and delivered to the Company with respect to the Subscriber’s subscription;

	
(s)
	
if, for any reason, the offering of Shares is terminated or the Subscriber’s subscription is rejected, the Subscriber will have no claims against the Company, its directors and officers, shareholders, agents, advisors and affiliates and shall have no interest in the Company or in any property or assets of the Company;

	
(t)
	
the Subscriber acknowledges that there are risks associated with the purchase of and investment in the Shares and the Subscriber, and each beneficial person for whom it is contracting hereunder, is knowledgeable, sophisticated and experienced in business and financial matters and is capable of evaluating the merits and risks of an investment in the Shares, fully understands the restrictions on resale of the Shares and is able
to bear the economic risk of an investment in the Shares;

	
(u)
	
the Subscriber is familiar with the aims and objectives of the Company and the proposed use of the proceeds received by the Company from the sale of the Shares and is aware of the risk and other characteristics of an investment in the Shares;

	
(v)
	
in evaluating the merits and risks of an investment in the Shares, the Subscriber has relied solely upon the advice of his, her or its legal, tax and investment advisors and not any oral or written statement made by, or on behalf of, the Company or its advisors;

	
(w)
	
THE SUBSCRIBER IS RESPONSIBLE FOR OBTAINING HIS, HER OR ITS OWN LEGAL, INVESTMENT AND TAX ADVICE;

	
(x)
	
the Company may pay a commission or fee in respect of the sale of the Shares;

	
(y)
	
the Subscriber, and each beneficial person for whom it is acting hereunder, is a resident in the jurisdiction set out on the first page of this Agreement.  Such address was not created and is not used solely for the purpose of acquiring the Shares and the Subscriber and any beneficial person who was solicited to purchase in such jurisdiction and is acquiring the Shares for its own account or for the account of another
accredited investor (as defined in Rule 501(a) of Regulation D under the U.S. Securities Act) over which the Subscriber exercises sole investment discretion, and as to which the Subscriber has the authority to make the statements set forth in this Agreement, in each case not with a view to, or for offer or sale in connection with, any resale, distribution or other disposition of the Shares in any transaction that would be in violation of the U.S. Securities Act or applicable state securities laws; and

	
(z)
	
the Subscriber, if an individual, is at least 18 years of age.  If the Subscriber is an association or entity, each individual member of the association or entity is at least 18 years of age.  If the Subscriber is acquiring the Shares for the account of another person, such person if an individual is at least 18 years of age, or if such person is an association or entity, each individual member of the association
or entity is over 18 years of age.

	
  
	
Reliance Upon Representations, Warranties, Covenants, Acknowledgements and Agreements

The Subscriber acknowledges that the representations, warranties, covenants, acknowledgements and agreements contained in this Agreement are made with the intent that they may be relied upon by the Company, and the Subscriber hereby agrees to indemnify the Company, its officers, directors, employees and agents against all losses, claims, costs, expenses
and damages or liabilities which they may suffer or incur caused or arising from their reliance thereon.  The Subscriber covenants that the foregoing representations, warranties, covenants, acknowledgements and agreements will be true at the time of execution of this Agreement and at the date of issuance of the Shares and agrees that they shall survive the purchase by the Subscriber of the Shares.

 

 

7

 

 

Representations and Warranties of the Company

The Company represents and warrants that:

	
(a)
	
the Company is a valid and subsisting corporation duly incorporated and in good standing under the laws of the jurisdiction in which it is incorporated;

	
(b)
	
the Company is duly registered and licensed to carry on business in the jurisdictions in which it carries on business or owns property where required under the laws of those jurisdictions;

	
(c)
	
the Company will reserve or set aside sufficient shares in its treasury to issue the Shares;

	
(d)
	
the issue and sale of the Shares by the Company does not and will not conflict with, and does not and will not result in a breach of, any of the terms of the Company’s incorporating documents or any agreement or instrument to which the Company is a party; and

	
(e)
	
this Agreement has been or will be by the Closing, duly authorized by all necessary corporate action on the part of the Company, and the Company has full corporate power and authority to undertake the offering.

Indemnity

The Subscriber agrees to indemnify and hold harmless the Company and its directors, officers, employees, agents, advisers 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 litigation, administrative proceeding or investigation commenced or threatened or any claim whatsoever 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 herein or in any document furnished by the Subscriber to the Company
in connection herewith.

Offering

This offering of securities forms part of a larger offering of similar securities being made by the Company.  The offering is not subject to any minimum subscription level and the Subscriber acknowledges that he, she or it may be the only subscriber to the offering.

Costs

The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber, including any fees and disbursements of any advisor retained by the Subscriber relating to the purchase of the Shares, shall be borne by the Subscriber.

Governing Law

This Agreement is governed by the laws of the State of Nevada.  The Subscriber, in his, her or its personal or corporate capacity and, if applicable, on behalf of each beneficial subscriber for whom he, she or it is contracting hereunder, irrevocably attorns to the jurisdiction of the courts of the State of Nevada.

 

 

8

 

Survival

The representations, warranties, covenants, acknowledgements and agreements contained in this Agreement shall survive the Closing and will continue in full force and effect and be binding upon the Subscriber notwithstanding any subsequent disposition by the Subscriber of the Shares.

Enurement

This Agreement will enure to the benefit of and be binding upon the Subscriber and the Company and their respective heirs, administrators, representatives, successors and permitted assigns.

Assignment

This Agreement is not transferable or assignable.

Counterparts

This Agreement may be executed in as many counterparts as may be necessary and by facsimile, each of such counterparts so executed will be deemed to be an original and such counterparts together will constitute one and the same instrument.

 

 

9

 

 

Schedule “B”

INVESTOR EXEMPTIONS QUESTIONNAIRE

The purpose of this Questionnaire is to assure the Company that the Subscriber will meet certain requirements for the registration and prospectus exemptions provided for under National Instrument 45-106 (“NI 45-106”) in respect to the issuance of the Shares pursuant to the Agreement.  The Company will rely on the information contained
in this Questionnaire for the purposes of such determination.

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

1.           the Subscriber is (please check one or more of the following boxes):

	
(a)
	
a director, executive officer, employee or control person of the Company or an affiliate of the Company
	o
	
(b)
	
a spouse, parent, grandparent, brother, sister or child of a director, executive officer or control person of the Company or an affiliate of the Company
	o
	
(c)
	
a parent, grandparent, brother, sister or child of the spouse of a director, executive officer or control person of the Company or an affiliate of the Company
	o
	
(d)
	
a close personal friend of a director, executive officer or control person of the Company or an affiliate of the Company
	o
	
(e)
	
a close business associate of a director, executive officer or control person of the Company or an affiliate of the Company
	o
	
(f)
	
a founder of the Company or a spouse, parent, grandparent, brother, sister, child, close personal friend or close business associate of a founder of the Company
	o
	
(g)
	
a parent, grandparent, brother, sister or child of the spouse of a founder of the Company
	o
	
(h)
	
a company, partnership or other entity which a majority of the voting securities are beneficially owned by, or a majority of the directors are, persons or companies as described in paragraphs (a) to (g) above
	o
	
(i)
	
purchasing the Shares as principal with an aggregate value of more than CDN$150,000
	o
	
(j)
	
an accredited investor
	
x

	
2.
	
if the Subscriber has checked one or more of boxes (b), (c), (d), (e), (f), (g) or (h) in section 1 above, the director(s), executive officer(s), control person(s) or founder(s) of the Company with whom the Subscriber has the relationship is:

	  

(Instructions to Subscriber: fill in the name of each director, executive officer, founder and control person which you have the above-mentioned relationship with.  If you have checked box (h), also indicate which of (a) to (g) describes the securityholders or directors which qualify you as box (h) and provide the names
of those individuals.)

 

 

10

 

 

	
3.
	
If the Subscriber has ticked box (j) in section 1 above, the Subscriber acknowledges and agrees that the Company shall not consider the Subscriber’s request for the Shares for acceptance unless the Subscriber provides to the Company:

	
  
	
(a)
	
the information required in sections 4 and 5; and

	
  
	
(b)
	
such other supporting documentation that the Company or its legal counsel may request to establish the Subscriber’s qualification as an “accredited investor”;

	
4.
	
the Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Shares and the Subscriber is able to bear the economic risk of loss arising from such investment;

	
5.
	
the Subscriber satisfies one or more of the categories of “accredited investor” (as that term is defined in NI 45-106) indicated below (please check one or more of the appropriate boxes):

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

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

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

	
o
	
an entity, other than an individual or investment fund, that has net assets of at least CDN$5,000,000 as shown on its most recently prepared financial statements;

	
o
	
an entity registered under the securities legislation of a jurisdiction of Canada as an advisor or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (British Columbia) or any entity organized in a foreign jurisdiction that is analogous to any such person or entity; or

	
o
	
an entity in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons or companies that are accredited investors.

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

 

11

 

IN WITNESS WHEREOF, the undersigned has executed this Investor Exemptions Questionnaire

/s/ Rock Rutherford 

Signature

____________________________________

Print Name

____________________________________

Title (if applicable)

____________________________________

Date

 

 

12

 

Schedule “C”

ACCREDITED INVESTOR QUESTIONNAIRE

The undersigned satisfies one or more of the categories of "accredited investor", as defined by Regulation D promulgated under the U.S. Securities Act, as indicated below:  (Please initial in the space provide those categories, if any, of an "accredited investor" which the undersigned satisfies.)

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

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

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

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

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

	
o   Category 6
	
A director or executive officer of the Company.

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

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

Note that the Subscriber claiming to satisfy one of the above categories of accredited investor may be required to supply the Company with a balance sheet, prior years' federal income tax returns or other appropriate documentation to verify and substantiate the Subscriber's status as an accredited investor.

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

______________________________________________________________________

______________________________________________________________________

IN WITNESS WHEREOF, the undersigned has executed this Accredited Investor Questionnaire.

/s/ Rock Rutherford_____________________

Signature

____________________________________

Print Name

____________________________________

Title (if applicable)

____________________________________

Date

 

13

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