Document:

Exhibit 10.1

    ASSET
      PURCHASE AGREEMENT

    

    THIS
      AGREEMENT dated
      the
20th
      day of March 2007.

    

    BETWEEN:

    

    COAL
      HARBOUR CONSULTING INC.

    

    (the
      “Vendor”)

    

    OF
      THE FIRST PART

    

    AND:

    

    FORTE
      METAL INC.

    

    (the
      “Purchaser”)

    

    OF
      THE SECOND PART

    

    WHEREAS:

    

    A. The
      Vendor is the registered and beneficial owner of various mineral claims
      (hereinafter the “Claims”),
      collectively called Jervis
      Moly Property
      Claims
      of the Vendor are more particularly described in Schedule “A” attached hereto
      and forming part of this Agreement;

    

    B. The
      Vendor has agreed to sell and the Purchaser has agreed to purchase all of the
      Claims of the Vendor in accordance with the terms of this
      Agreement.

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSES
      that in
      consideration of the terms and covenants herein and other good and valuable
      consideration, the receipt and sufficiency of which each party acknowledges,
      the
      parties hereto agree as follows:

    

    1. PURCHASE
      AND SALE OF ASSETS

    

    1.1 Sale
      of Assets.
      Subject
      to the terms and conditions of this Agreement, the Vendor hereby sells to the
      Purchaser, and the Purchaser hereby purchases the Vendor’s Claims.

    

    1.2 Purchase
      Price.
      The
      purchase price payable by the Purchaser to the Vendor for the Vendor’s Claims is
      USD $20,000 (the
      “Purchase
      Price”).
      If
      applicable, subject to a carried 3% Net Smelter Royalty as described in Schedule
      “A”.

    

    1.3 Payment
      of the Purchase Price.
      The
      Purchase Price will be paid immediately on delivery of property report, by
      check
      or wire order.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    2. COVENANTS
      OF THE PARTIES

    

    2.1 Covenants.
      The
      parties undertake to keep the information with respect to this Agreement, the
      terms herein, and any related, underlying or subsequent agreements (the
“Information”)
      confidential and not to directly or indirectly disclose the Information at
      any
      time to any person or persons or use the Information for any purpose
      whatsoever.

    

    

    3. REPRESENTATIONS
      OF THE VENDOR

    

    3.1 Representations.
      The
      Vendor represents and warrants to the Purchaser as follows, with the intent
      that
      the Purchaser will rely on the representations in entering into this Agreement,
      and in concluding the purchase and sale contemplated by this
      Agreement:

    

    
      	 	
              (a)

            	
              Capacity
                to Sell.
                The Vendor is Coal Harbour Consulting Inc., having the power and
                capacity
                to own and dispose of the Claims, and to enter into this Agreement
                and
                carry out its terms to the full
                extent;

            

    

    

    
      	 	
              (b)

            	
              Authority
                to Sell.
                The execution and delivery of this Agreement, and the completion
                of the
                transaction contemplated by this Agreement has been duly and validly
                authorized by all necessary corporate action on the part of the Vendor,
                and this Agreement constitutes a legal, valid and binding obligation
                of
                the Vendor enforceable against the Vendor in accordance with its
                terms
                except as may be limited by laws of general application affecting
                the
                rights of creditors;

            

    

    

    
      	 	
              (c)

            	
              Litigation.
                There is no litigation or administrative or governmental proceeding
                or
                inquiry pending or, to the knowledge of the Vendor, threatened against
                or
                relating to the Claims, nor does the Vendor know of or have reasonable
                grounds that there is any basis for any such action, proceeding or
                inquiry;

            

    

    

    
      	 	
              (d)

            	
              Good
                Standing.
                Prior to closing this Agreement, the Vendor has maintained, as required,
                the Claims in good standing.

            

    

    

    

    4. REPRESENTATIONS
      OF THE PURCHASER

    

    4.1 Representations.
      The
      Purchaser represents and warrants to the Vendor as follows, with the intent
      that
      the Vendor will rely on these representations and warranties in entering into
      this Agreement, and in concluding the purchase and sale contemplated by this
      Agreement:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)
       Status
      of Purchaser.
      The
      Purchaser is a corporation duly incorporated, validly existing and in good
      standing and has the power and capacity to enter into this Agreement and carry
      out its terms; and

     

    (b) Authority
      to Purchase.
      The
      execution and delivery of this Agreement and the completion of the transaction
      contemplated by this Agreement has been duly and validly authorized by all
      necessary corporate action on the part of the Purchaser, and this Agreement
      constitutes a legal, valid and binding obligation of the Purchaser enforceable
      against the Purchaser in accordance with its terms except as limited by laws
      of
      general application affecting the rights of creditors.

    

    5. 
       TRANSFER
      OF ASSETS

     

    5.1 Transfer
      of Property. 
      The Purchaser must provide written instructions to the Vendor if the Purchaser
      wishes to transfer the claims into the Purchaser’s name.  The instructions
      should include the claims, tenures, and property name, as well as the full
      name
      and mineral license of the Purchaser.

     

    5.2. Vendor’s
      Maintenance of Property. 
      The
      Purchaser may request the Vendor to maintain the claims on the Purchaser’s
      behalf, or if the Purchaser does not provide written instruction to transfer
      the
      claims, then the Vendor will maintain the claims for the Purchaser.  The
      Vendor will charge a maintenance fee to maintain the claims on the Purchaser’s
      behalf.  If the Purchaser does not pay the maintenance fee the Vendor
      reserves the right to let the claims lapse or expire.  

    

    6. SURVIVAL
      OF REPRESENTATIONS AND COVENANTS

    

    6.1 Vendor's
      Representations and Covenants.
      All
      representations, covenants and agreements made by the Vendor in this Agreement
      or under this Agreement will, unless otherwise expressly stated, survive closing
      and any investigation at any time made by or on behalf of the Purchaser will
      continue in full force and effect for the benefit of the Purchaser.

    

    6.2 Purchaser’s
      Representations and Covenants.
      All
      representations, covenants and agreements made by the Purchaser in this
      Agreement or under this Agreement will, unless otherwise expressly stated,
      survive closing and any investigation at any time made by or on behalf of the
      Vendor and will continue in full force and effect for the benefit of the
      Vendor.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7. GENERAL

    

    7.1 Governing
      Law.
      This
      Agreement and each of the documents contemplated by or delivered under or in
      connection with this Agreement are governed exclusively by, and are to be
      enforced, construed and interpreted exclusively in accordance with the laws
      of
      British Columbia which will be deemed to be the proper law of the
      Agreement.

    

    7.2 Professional
      Fees.
      Each of
      the parties will bear the fees and disbursements of their respective lawyers,
      advisers and consultants engaged by them respectively in connection with the
      transactions contemplated by this Agreement prior to the closing.

    

    7.3 Enurement.
      This
      Agreement enures to the benefit of and binds the parties and their respective
      successors and permitted assigns.

    

    7.4 Notice.
      All
      notices required or permitted to be given under this Agreement will be in
      writing and personally delivered to the address of the intended recipient set
      out on the first page of this Agreement or at such other address as may from
      time to time be notified by any of the parties in the manner provided in this
      Agreement.

    

    7.5
       Further
      Assurances.
      The
      parties will execute and deliver all further documents and take all further
      action reasonably necessary or appropriate to give effect to the provisions
      and
      intent of this Agreement and to complete the transactions contemplated by this
      Agreement.

    

    7.6 Remedies
      Cumulative.
      The
      rights and remedies under this Agreement are cumulative and are in addition
      to
      and not in substitution for any other rights and remedies available at law
      or in
      equity or otherwise. Any party to this Agreement may terminate this Agreement
      if
      any other party is in breach of or defaults under any material term or condition
      of this Agreement or has made a material misrepresentation in this Agreement.
      No
      single or partial exercise by a party of any right or remedy precludes or
      otherwise affects the exercise of any other right or remedy to which that party
      may be entitled.

    

    7.7 Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties and there are
      no
      representations, express or implied, statutory or otherwise and no collateral
      agreements other than as expressly set out or referred to in this
      Agreement.

    

    7.8 Headings.
      The
      division of this Agreement into sections and the insertion of headings are
      for
      convenience only and do not form part of this Agreement and will not be used
      to
      interpret, define or limit the scope, extent or intent of this
      Agreement.

    

    7.9 Severability.
      Each
      provision of this Agreement is severable. If any provision of this Agreement
      is
      or becomes illegal, invalid or unenforceable, the illegality, invalidity or
      unenforceability of that provision will not affect the legality, validity or
      enforceability of the remaining provisions of this Agreement.

    

    7.10 Schedules.
      The
      Schedules attached hereto form an integral part of this
      Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      
        7.11Time
          of the Essence.
          Time
          will be of the essence of this Agreement.

      

    

     

    7.12 Counterparts.
      This
      Agreement and all documents contemplated by or delivered in connection with
      this
      Agreement may be executed and delivered by facsimile or original and in any
      number of counterparts, and each executed counterpart will be considered to
      be
      an original. All executed counterparts taken together will constitute one
      agreement.

    

    IN
      WITNESS WHEREOF
      the
      parties have duly executed this Agreement by their duly authorized officers
      effective the day, month and year written above.

    
 

    VENDOR:
      COAL HARBOUR CONSULTING INC.

    

    

    PURCHASER:
      FORTE METALS INC.

    

    Per: 

     

    
      	 	 	 
	 	
            
	 
 	 
 	 
 
	 	By:  	/s/ Chris
              Lori
	 	
              
CHRIS
              LORI, Director
	 	 

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      “A”

    THIS
      IS SCHEDULE “A”
      to the
      Asset Purchase Agreement.

    

    

    ASSET
      DETAILS: 

    

    Mineral
      Claims: 549244

    

    Claims
      collectively called:
      Jervis
      Moly Property

    

    Executive
      Summary: 

     

    
      	
              1.

            	
              The
                Jervis Moly Property is located near the head of Jervis Inlet, about
                110
                km northwest of Vancouver, BC. Access is by helicopter or float plane
                from
                Vancouver or Sechelt, or by boat from Egmont or Pender Harbour on
                the
                Sechelt Peninsula. The Jervis Moly Property comprises one MTO mineral
                claim containing nine cell claim units totaling 186.506
                hectares.

            

    

    

    
      	
              2.

            	
              The
                Upper Jervis Inlet area is underlain by a variety of Jurassic to
                Tertiary
                age granitic intrusives of the Coast Plutonic Complex. The granitic
                rocks
                intrude and metamorphose Jurassic to Lower Cretaceous argillaceous
                sediments and andesitic to felsic volcanics of the Gambier Group.
                The
                Gambier Group hosts the 60 MT Britannia copper, zinc, lead, silver,
                gold
                deposit on Howe Sound about 80 km to the southeast. The intrusive
                suite is
                known to host economic concentrations of copper and molybdenum, such
                as at
                the Gambier Island and OK porphyry copper deposits.
                

            

    

     

    
      	
              3.

            	
              The
                Jervis Moly Property hosts a “Climax-Type” porphyry molybdenum deposit
                with spectacular molybdenum grades in some areas. Copper mineralization
                has been located but has not been found to form in economic
                concentrations. The widely mineralized area has the potential to
                host an
                economic porphyry molybdenum deposit, but requires more exploration
                to
                prove or disprove this possibility.

            

      	 	 

      	4. 	A two-phase proposed work program includes construction
              of a control grid, geological mapping and rock sampling, a silt
              geochemical sampling program and trenching. Based on a compilation
              of
              these results, a diamond drill program will be designed to explore
              and
              define the potential resources.Unassociated Document

Exhibit
    4.3
     

    UNLESS
      PERMITTED
      UNDER
      SECURITIES LEGISLATION, THE HOLDER
      OF
      THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THAT DATE THAT IS 4 MONTHS
      AND
      A DAY AFTER THE LATER OF (i) JANUARY 31, 2007, AND (ii) THE DATE THE ISSUER
      BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF
      CANADA

    

    The
      securities represented hereby and those issuable upon the conversion hereof
      have
      not been registered under the United States Securities Act of 1933, as amended
      (the "U.S.
      Act"), or qualified or registered under U.S. state securities or "blue sky"
      laws
      and may not be sold, offered for sale, pledged, hypothecated or otherwise
      transferred or disposed of within the United States or to, or for the account
      or
      benefit of, U.S. persons (as such term is defined in Regulation S under the
      U.S.
      Act) except in accordance with the provisions of Regulation 5 under the U.S.
      Act
      or pursuant to an available exemption from registration. Hedging transactions
      involving such securities may not be conducted unless in compliance with the
      U.S. Act.

     

    
      	
               

              FLUID
                AUDIO NETWORK, INC. 

              Unsecured
                Convertible
                Debenture

               

              Issue
                Date:      January
                31, 2007 (the "Issue
                Date")

               

              Issuer:    
                Fluid
                Audio Network, Inc., a Delaware company
                (the
                "Company")

                                       
                Address:         
                5813-A
                Uplander Way

                          Culver
                City, California 90230

                          Attention:
                 Justin
                Beckett

                                      
                Fax:                    (310)
                665-0735

               

              Term:             
                Twelve
                (12) months ending January 31, 2008 (the
                "Maturity
                Date") 

               

              Holder:

               

              Principal
                

              Amount:

            

    

     

    ARTICLE
      1 

    TERMS

                 
      

    
      	1.1 	Issue 

    

     

    The
      Company, a corporation incorporated under the laws of Delaware and having its
      head office at the address shown above, for value received, acknowledges itself
      indebted and promises to pay to or to the order of the Debentureholder, its
      successors and permitted assigns, on the dates specified herein, at the address
      of the Debentureholder as set
      out
      above or as directed
      by the Debentureholder, the Principal Amount and to pay interest on the
      outstanding Principal Amount at the Annual Rate (as hereinafter defined) and
      in
      accordance with the terms hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	1.2	Annual
                Rate

      

    

    

    The
      interest rate applicable hereunder (the "Annual
      Rate") will
      be
      twelve percent (12%)
      per
      annum, calculated and compounded annually.

    
       

      
        
          	1.3	Payment of
                  Interest

        

      

    

     

    Interest
      shall be payable to the Debentureholder on the earlier of the Maturity Date
      and
      the date of conversion of the Debenture pursuant to the provisions of ARTICLE
      2
      hereof. The Debentureholder may elect to receive the accrued interest payable
      in
      cash or to have the amount of accrued interest added to the outstanding
      Principal Amount upon conversion of the Debenture, by electing same on the
      notice of conversion, substantially in the form attached as Schedule 1 hereto
      (the "Conversion
      Notice"). To
      the
      extent that the Company is obliged under any taxing statute (but subject to
      any
      applicable treaty provisions) to withhold and remit on account of payments
      of
      interest hereunder, the Company shall be entitled to withhold and remit the
      same
      for the account of the Debentureholder.

    
      
         

        
          
            	1.4	Term

          

        

      

    

     

    The
      term
      (the "Term")
      of
      the
      Debenture shall be for twelve (12) months commencing on
      the date
      hereof and ending on the Maturity Date. Subject to (i) acceleration following
      the occurrence of an Event of Default (as defined in Section 3.1 hereof) in
      accordance with the terms herein, and (ii) the Debentureholder's right to
      convert the outstanding Principal Amount and interest in accordance with ARTICLE
      2 below, the Debenture (as to any and all outstanding Principal Amount and
      interest) shall be repaid in full by the Company to the Debentureholder at
      the
      end of the Term on the Maturity Date.

    
      
        
           

          
            
              	1.5	No Right of
                      Prepayment

            

             

          

        

      

    

    The
      Company shall have no right to prepay the whole or any part of the Principal
      Amount owing under the Debenture.

    
       

      
        
          	1.6	Liquidity
                  Event

        

      

    

     

    The
      Company will use its commercially reasonable efforts to complete a Liquidity
      Event (as hereinafter defined) on or prior to July 31, 2007 (the "Liquidation
      Deadline"), subject
      to market conditions. For the purposes hereof, a "Liquidity
      Event" means
      the
      Company obtaining a listing or quotation of its shares of common stock (or,
      in
      the event that the Company undergoes a corporate reorganization (a "Reorganization")
      whereby
      the Company becomes a wholly-owned subsidiary of another company ("ShellCo"),
      the
      common shares of ShellCo (the "ShellCo
      Shares")) on
      either
      of the Toronto Stock Exchange or the TSX Venture Exchange and, at the option
      of
      the Company, in addition thereto, Nasdaq or the Alternative Investment Market
      of
      the London Stock Exchange, by way of an initial public offering (an
      "IPO")
      or any
      other transaction which provides holders of the Company's shares of common
      stock
      with comparable liquidity that such holders would have received if such listing
      or quotation was obtained, including by means of a reverse take-over, merger,
      amalgamation, arrangement;
      take-over bid, insider bid, reorganization, joint venture, sale of all or
      substantially all of the Company's assets, exchange of assets or similar
transaction
      or other combination with a reporting issuer or a reporting company, with the
      result that, after giving effect to the occurrence of such Liquidity Event,
      the
      Conversion Securities (as hereinafter defined) issued upon conversion of the
      Debenture
      will become freely-tradeable by the holders thereof under applicable securities
      laws in
      Canada
      (subject to applicable control person restrictions).

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      2

    CONVERSION

    
      
         

        
          
            	2.1	Conversion of
                    Debenture

          

           

        

      

    

    All
      but
      not less than all of the outstanding Principal Amount and, at the option of
      the
      Debentureholder, accrued Interest thereon is convertible at any time following
      the completion of a Liquidity Event and prior to the Maturity Date, at the
      sole
      and exclusive option of the Debentureholder (the "Option
      to Convert"), by
      delivery no later than five (5) business days prior to the Maturity Date of
      the
      Conversion Notice to the head office
      of
      the
      Company, into fully-paid, non-assessable shares of common stock of the Company
      or ShellCo Shares, as the case may be (in either case, as applicable, the
"Conversion
      Securities"). The
      number of Conversion Securities into which the Debenture will be converted
      will
      be equal to (if applicable, the Canadian dollar equivalent, as of the Conversion
      Date (as hereinafter defined) of) the outstanding Principal Amount (and, if
      applicable, any accrued and unpaid interest thereon which the Debentureholder
      elects to receive in the form of additional Conversion Securities pursuant
      to
      the Conversion Notice), divided by 90% of the IPO Price (as hereinafter defined)
      or, in the case of the occurrence of a Liquidity Event by means other than
      an
      IPO, 90% of the RTO Price (as hereinafter defined).

    

    For
      the
      purposes hereof, "IPO
      Price" means
      the
      price per share offered in the IPO, "RTO
      Price" means
      the
      deemed price per share ascribed to the ShellCo Shares in connection with a
      Liquidity Event by means other than an IPO, as determined in good faith by
      the
      board of directors
      of the Company or ShellCo, as applicable, and "Liquidity
      Event Price" means
      the
      IPO
      Price or
      the RTO Price, as the case may be.

    

    In
      case
      of (i) any reclassification of the outstanding shares of common stock of the
      Company (other than in connection with a Reorganization or any stock dividend
      or
      split or consolidation of such shares); (ii) any consolidation, merger or
      amalgamation of the Company with
      or
      into another entity or entities (other than in connection with a Reorganization);
      or (iii) the
      sale of
      the properties and assets of the Company as an entirety or substantially as
      an
      entirety to another entity or entities in which the holders of the outstanding
      shares of common stock of the Company are entitled to receive consideration,
      a
      substantial portion of which consists of securities, the Conversion Securities
      deliverable by the Company upon any conversion of this Debenture thereafter
      shall be such number and kind of
      shares
      or
other
      securities
      and property (or the applicable portion thereof) receivable on such
      reclassification, consolidation, merger, amalgamation or sale that the
      Debentureholder would have been entitled to receive thereupon had the
      Debentureholder been the registered holder of the number of shares of common
      stock of the Company into which this Debenture might have been converted
      immediately prior thereto.

    

    If,
      at
      the end of the Term, the Debentureholder does not exercise its Option to Convert
      the Debenture and the Company fails to repay the Principal Amount and all
      accrued and unpaid interest
      owing under the Debenture, the Debentureholder may, at its discretion, elect
      to
      continue to hold and enforce its rights under the Debenture, including with
      respect to the payment of interest at the Annual Rate.

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

       

      
        
          
            	2.2	Liquidity
                    Penalty

          

        

      

    

    

    In
      the
      event that a Liquidity Event occurs on or prior to the Maturity Date but after
      the Liquidation Deadline, the outstanding Principal Amount and, at the option
      of
      the Debentureholder, accrued interest thereon shall be convertible into the
      number of Conversion Securities described in Section 2. 1, multipled by
      1.1.

    
       

      
        
          
            	2.3	Issuance of Conversion
                    Securities

          

        

      

    

    

    The
      Company will, as of the time a conversion is effected pursuant to Section 2.1,
      pay any interest accrued and unpaid on the amount so converted, if applicable,
      and will issue to the Debentureholder that number of Conversion Securities
      as
      are properly required to satisfy the conversion provisions set out in Section
      2.1. As promptly as practicable, but in no case later than ten days after
      the
issue
      of
      such shares, the Company will deliver or cause to be delivered to the
      Debentureholder certificates representing such shares, registered in such name
      or names as the Conversion Notice may specify, together with a certified cheque
      in payment of all accrued interest payable hereunder, if applicable. No
      fractional shares shall be issued and, if any conversion of this Debenture
      would
      result in the Debentureholder being entitled to receive a fraction of a share,
      the Company shall issue upon the conversion the requisite number of whole shares
      rounded down to the nearest whole number.

    
      
         

        
          
            
              	2.4	Reservation of Conversion
                      Securities

            

          

        

      

    

    

    The
      Company will at all time keep available, and reserve if necessary under
      applicable law, out of its authorized share capital, solely for the purpose
      of
      issuance upon the conversion of the outstanding Principal Amount and interest
      thereon, such number of Conversion Securities as shall then be issuable upon
      the
      conversion of the Principal Amount and interest thereon. The Company covenants
      and agrees that all Conversion Securities which shall be so issuable will be
      duly authorized and issued as fully paid and non-assessable. The Company will
      take all such actions as may be necessary to ensure that all such Conversion
      Securities may be so issued without violation of any applicable law or of any
      applicable requirements of any exchange upon which the Conversion Securities
      may
      be listed or in respect of which the Conversion Securities are qualified for
      unlisted trading privileges.

    

    The
      Company covenants not to enter into any Reorganization with ShellCo unless
      in
      the definitive agreement relating thereto ShellCo covenants to keep available,
      and reserve if necessary under applicable law, out of its authorized share
      capital, solely for the purpose of issuance upon the conversion of the
      outstanding Principal Amount and interest thereon, such number of Conversion
      Securities as shall then be issuable upon the conversion of the Principal Amount
      and interest thereon, and agrees to issue such Conversion
      Securities
      upon due exercise of the Warrants.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                	2.5	Conversion
                        Date

              

            

          

        

      

    

     

    The
      conversion of the Debenture shall be deemed to occur at the close of business
      on
      the date at which the Debenture is surrendered for conversion and the Conversion
      Notice is received by the Company (or such later date as is specified in the
      Conversion Notice, which shall be no later than five (5) business days prior
      to
      the Maturity Date) (the "Conversion
      Date"), and,
      other than the right to receive payment of all accrued interest payable
      hereunder, if applicable, the rights of the Debentureholder terminate to the
      extent of the conversion as of such time and the Debentureholder will be treated
      as having become the holder of record of Conversion Securities at that time.
      Notwithstanding the foregoing or the surrender of this Debenture for conversion,
      if the Company fails to issue such shares to the Debentureholder or pay interest
      pursuant to Section 1.3, the Debentureholder retains, and shall be at liberty
      to
      exercise, all rights contained in this Debenture until such shares are issued
      and interest is paid, as applicable. Upon the conversion of the outstanding
      Principal Amount and
      interest
      thereon, if applicable, under this Debenture pursuant to this ARTICLE
      2, the
      Company shall be thereafter discharged and absolved of all obligations in
      connection with this Debenture, other than the obligation to so issue the
      applicable number of Conversion Securities and, if applicable, to pay all
      accrued interest.

    

    ARTICLE
      3

    DEFAULT
      AND REMEDIES

    
       

      
        
          
            
              
                
                  	3.1	Default

                

                 

              

            

          

        

      

    

    The
      outstanding Principal Amount and interest and other money owing hereunder is
      immediately payable in each of the following events (each, an "Event
      of Default"):

    

    Payment:
      save and
      except for delay that is beyond the control of the Company and does not exceed
      more than two (2) business days, if the Company makes a default in payment
      of
      any Principal Amount or interest when due or in payment of any indebtedness
      or
      liability of the Company to the Debentureholder when due hereunder;

    

    Issuance of Shares:
      if the
      Company fails to issue the Conversion Securities to the Debentureholder on
      a
      timely basis pursuant to the conversion previsions hereof following delivery
      of
      a Conversion Notice;

    

    Winding UP:
      if an
      order is made or an effective resolution passed for the winding-up, dissolution
      or liquidation of the Company, or if a petition is filed for the winding-up
      of
      the Company and such petition is not stayed, withdrawn or dismissed within
      15
      days;

    

    Insolvency:
      if the
      Company becomes insolvent, within the meaning of any applicable legislation.,
      or
      otherwise admits in writing its inability to pay its debts as they become
due;

     

    Bankruptcy or Receivership:
      if a
      bankruptcy petition is filed or
      presented
      against the Company, or if any proceedings with respect to the Company are
      commenced under the United States Bankruptcy Code (as now or in the future
      amended, the "Bankruptcy
      Code") or
      any
      similar legislation providing protection for the benefit of the Company; or
      if
      an execution, sequestration, or any other process of any court becomes
      enforceable against
      the Company or if a distress or analogous process is levied upon the property
      of
      the Company or any
      part
      of
      the property of the Company, unless in any such case such petition, proceeding
      or process is stayed, withdrawn, dismissed or vacated. as the case may be,
      within 15 days;

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

       

    

    Appointment of Trustee or Receiver:
      any
      trustee in bankruptcy, interim receiver, receiver, receiver and manager,
      custodian, sequestrator, administrator, monitor or liquidator of any other
      person with similar powers is appointed in respect of the Company;

    

    Default in Respect of Indebtedness:
      any
      material default by the Company in respect of indebtedness
      (other than the indebtedness represented by (i) this Debenture; and (ii)
      trade
      payables
      that are extended past their due date in the ordinary course of the Company's
      business consistent with past practice), which is not cured within any grace
      period provided therefore; or

    

    Breach of Debenture or Agency Agreement:
      the
      Company fails to perform or comply in any material respect with any covenant,
      undertaking, condition or
      obligation
      contained in this Debenture certificate or the agency agreement dated January
      31, 2007 between the Company
      and Loewen,
      Ondaatje, McCutcheon Limited or if any of the representations or warranties
      contained herein or therein shall have been found to be untrue in any material
      respect as of the date they were made and the Company has not remedied such
      non-compliance or failed to rectify such untruthfulness or inaccuracy within
      ninety (30) days of being advised of same by the Holder, excepting where the
      remedy for non-compliance with a covenant, undertaking, condition or obligation
      may reasonably require longer than ninety (30) days to rectify and where the
      Company, is proceeding diligently to cure such non-compliance.

    
       

      
        
          
            
              
                
                  	3.2	Statutory
                          Waivers

                

              

            

          

        

      

    

    

    To
      the
      fullest extent permitted by law, the Company waives all of the rights, benefits
      and protections given by the provisions of any existing or future statute that
      impose limitations upon the powers, rights or remedies of a Debentureholder
      or
      upon the methods of realization of security, including any seize or sue or
      anti-deficiency statute or any similar provisions of any other
      statute.

    
      
         

        
          
            
              
                
                  
                    	3.3	Enforcement

                  

                

              

            

          

        

      

    

     

    Upon
      the
      occurrence of an Event of Default which is continuing, all of the indebtedness,
      liabilities and obligations of the Company to the Debentureholder, whether
      now
      existing or hereafter incurred, pursuant to this Debenture (the "Obligations"),
      at
      the
      Debentureholder's sole option and upon written notice to the Company, shall
      become immediately due and payable and the Debentureholder may, at its sole
      option, proceed to enforce payment and performance of the Obligations and to
      exercise any or all of the rights and remedies contained
      in
      this
      Debenture, or otherwise afforded by law, in equity or otherwise.

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    
       

      
        
          
            
              
                
                  
                    
                      	3.4	Waivers and
                              Extensions

                    

                  

                

              

            

          

        

      

    

    

    The
      Debentureholder may waive default or any breach by the Company of any of the
      provisions contained in this Debenture. No waiver extends to a subsequent breach
      or default, whether or not the same as or similar to the breach or default
      waived, and
      no
      act or
      omission of the Debentureholder extends to or is be taken in any manner to
      affect any subsequent breach or default of the Company or the rights of the
      Debentureholder resulting therefrom. Any such waiver must be in writing and
      signed by the Debentureholder to be effective.

    

    The
      Debentureholder may also grant extensions of time and other indulgences, take
      and give up securities, accept compositions, grant releases and discharges,
      and
      otherwise deal with the Company's guarantors or sureties and others and other
      securities as the Debentureholder may see fit without prejudice to the liability
      of the Company to the Debentureholder or the Debentureholder's rights, remedies
      and powers under this Debenture. No extension of time, forbearance, indulgence
      or other accommodation previously, now or subsequently given by the
      Debentureholder to the Company operates as a waiver, alteration or amendment
      of
      the rights of the Debentureholder or otherwise preclude the Debentureholder
      from
      enforcing such rights.

    

    ARTICLE
      4

    GENERAL

    
       

      
        
          
            
              
                
                  
                    
                      	4.1	Notice

                    

                     

                  

                

              

            

          

        

      

    

    Any
      notice, consent or approval required or permitted to be given in connection
      with
      this Debenture (in this Section referred to as a "Notice")
      must
      be
      in writing and is sufficiently given if delivered (whether in person, by courier
      service or other personal method of delivery), or if transmitted by fax, at
      the
      addresses or fax numbers set out on the first page of this Debenture. Any Notice
      delivered or transmitted to a party as provided above is deemed to have been
      given and received on the day it is delivered or transmitted if it is delivered
      or transmitted on a business day before 5:00 p.m. local time in the place of
      delivery or receipt. If the Notice is delivered or transmitted after 5:00 p.m.
      local time or if such day is not a business day, then the Notice is deemed
      to
      have been given and received on the next business day.

    
       

      
        
          
            
              
                
                  
                    
                      	4.2	Enurement

                    

                  

                

              

            

          

        

      

    

    

    This
      Debenture enures to the benefit of the Debentureholder and its successors and
      permitted assigns, and is binding upon the Company and its
      successors.

    
       

      
        
          
            
              
                
                  
                    
                      	4.3	Governing
                              Law

                  

                

              

            

          

        

      

    

    

    This
      Debenture is made under and governed by and is to be construed in accordance
      with the laws of the Province of Ontario and the federal laws of Canada
      applicable therein. Each of the Company and the Debentureholder irrevocably
      submit to the exclusive jurisdiction of the courts of the Province of
      Ontario.

     

    
      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

         

        
          
            
              
                
                  
                    
                      
                        
                          	4.4	Pari
                                  Passu

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    This
      Debenture and all other 12% unsecured convertible debentures issued by the
      Company on the date hereof shall rank pari passu, without discrimination,
      preference or priority.

    
       

      
        
          
            
              
                
                  
                    
                      
                        	4.5	Further
                                Assurances

                    

                  

                

              

            

          

        

      

    

    

    The
      Company will at its own expense execute, acknowledge and deliver or cause to
      be
      done, executed, acknowledged or delivered any further acts, deeds, transfers,
      assignments and assurances as the Debentureholder may reasonably require for
      the
      better accomplishing and effectuating of this Debenture or for the purpose
      of
      obtaining or preserving the full benefits of, and the rights and powers granted
      by, this Debenture.

    
      
         

        
          
            
              
                
                  
                    
                      
                        
                          	4.6	Entire
                                  Agreement

                      

                    

                  

                

              

            

          

        

      

    

     

    This
      Agreement constitutes the entire agreement between the parties with respect
      to
      all of the matters herein and their execution has not been induced by, nor
      do
      any of the parties rely upon or regard as material, any representations or
      writings whatever not incorporated herein and made a part hereof and may not
      be
      amended or modified in any respect except by written instrument signed by the
      parties hereto.

    
      
        
           

          
            
              
                
                  
                    
                      
                        
                          
                            	4.7	Assignability

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    The
      Company may not assign its rights in and under this Debenture. The
      Debentureholder may not assign its rights in and under this Debenture, unless
      it
      has received the prior written consent of the Company.

    
      
         

        
          
            
              
                
                  
                    
                      
                        
                          	4.8	Time of
                                  the
                                  Essence

                      

                    

                  

                

              

            

          

        

      

    

     

    Time
      shall be of the essence of this Debenture. 

     

    
      	4.9	Discharge

    

     

    Upon
      full
      payment or full conversion of this Debenture, the Debentureholder shall deliver
      up this Debenture to the Company and shall at the expense of the Company cancel
      and discharge same and execute and deliver to the Company such deeds or other
      instruments as shall be required to discharge the security constituted
      hereby.

     

    [The
      remainder of the
      page is intentionally left blank.)

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF
      the
      Company has caused this Debenture to be signed by a duly authorized officer
      of
      the Company.

     

    
      	 	
              FLUID
                AUDIO NETWORK, INC.

              

              By: ____________________________________

                    
                Name: 

                    
                Title:

            

    

    
       

    

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    Schedule
      1

    Notice
      of Conversion

    

    WHEREAS:

    

    
      	A.             
               	
              Fluid
                Audio Network,
                Inc. (the "Company")
                issued
                an unsecured convertible debenture (the "Debenture")
                to
                * (the
                "Debentureholder")
                on
                January 31, 2007 in the principal amount
                of US$*.

            

    

    

    
      	B.              
               	
              The
                Debentureholder must, pursuant to the terms of the Debenture, deliver
                this
                Notice of Conversion to effect a conversion of the Debenture into
                Conversion Securities.

            

    

    

    
      	C.              
               	
              All
                capitalized terms used but not otherwise defined herein shall have
                the
                meanings ascribed thereto in the
                Debenture.

            

    

    

    NOW
      THEREFORE:

    

    
      	1.              
               	
              The
                Debentureholder hereby tenders the Debenture and requests conversion
                of
                all of the outstanding Principal Amount into that number of Conversion
                Securities required to be delivered by the Company pursuant to the
                Debenture.

            

    

    

    
      	2.              
               	
              The
                Debentureholder hereby elects to have the accrued interest on the
                outstanding Principal Amount (check
                one):

            

    

     

    
      	 	q 	payable in cash; or 

      	 	 	 

      	 	
              q

            	
              added
                to the outstanding Principal Amount (with the result that such amount
                shall be satisfied by the issuance of additional
                Conversion
                Securities).

            

    

     

    DATED
      the
      ___
      day of
      _____________, ___________.

     

    
      
        	 	
                [Insert
                  name of Debentureholder] 

                

                Per: ____________________________________

                      
                  Name: 

                      
                  Title:

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