Document:

Exhibit
10.8

 

Second
Amendment to Senior Advisor Agreement

 

This
amendment (the “Second Amendment”) to the Senior Advisor Agreement by and between Brad Miles (“Miles”)
and Lightlake Therapeutics Inc. (the “Company”) dated January 22, 2013 and amended on February 24, 2015 (collectively,
the “Agreement”), is entered into on March 19, 2015, and hereby amends the terms of the Agreement.

 

WHEREAS
Miles is a Senior Advisor to the Company;

 

WHEREAS
the Company has requested that Miles provide the Services (as defined in the Agreement) and additional Services;

 

WHEREAS
Miles has received compensation deemed by the Company to be inadequate to retain Miles as a Senior Advisor;

 

WHEREAS
the Company seeks to retain Miles as a Senior Advisor; and

 

WHEREAS
the Company seeks to provide Miles with additional incentive to remain a Senior Advisor and perform the Services and additional
Services;

 

NOW
THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties hereby mutually agree to this Second Amendment as follows:

  

		1)	Miles
                                         shall provide the Company with the Services and additional Services through December
                                         31, 2016, unless the Agreement is terminated as per the terms of the Agreement.

 

		2)	The
                                         Company shall grant Miles options (the “Options”) to purchase 80,000 shares
                                         of the Company’s common stock, par value $0.001 per share (the “Common Stock”).
                                         48,000 of the Options shall have an exercise price of $10.00. 32,000 of the Options shall
                                         have an exercise price of $15.00. All of the Options shall contain a cashless exercise
                                         provision. All of the Options shall contain standard adjustment provisions with respect
                                         to stock splits, recapitalizations, change of control and fundamental transactions but
                                         shall not contain any anti-dilution or price protection. All of the Options shall have
                                         a five-year life from their date of grant and be non-transferable. The Options shall
                                         fully vest on their grant date. All of the Options shall be in such form as attached
                                         hereto as Exhibit A. All of the Options shall be exercised as per a notice in such form
                                         as attached hereto as Exhibit B, which notice shall be mailed to the Company’s
                                         then current official address listed in securities filings and also be sent to and received
                                         by both Company email addresses set forth at the bottom of this Second Amendment. Upon
                                         the exercise of the Options, the fair market value per share of Common Stock shall be
                                         equal to the closing price of the Common Stock on the day prior to such exercise.

 

     

     

    

  

		3)	The
                                         Company shall grant Miles warrants (the “Warrants”) to purchase 45,000 shares
                                         of the Company’s common stock, par value $0.001 per share (the “Common Stock”).
                                         All of the Warrants shall have an exercise price of $10.00. All of the Warrants shall
                                         be exercisable for cash and none of the Warrants shall contain a cashless exercise provision.
                                         All of the Warrants shall contain standard adjustment provisions with respect to stock
                                         splits, recapitalizations, change of control and fundamental transactions but shall not
                                         contain any anti-dilution or price protection. All of the Warrants shall have a five-year
                                         life from their date of grant and be transferable so long as any such transfer(s) comply
                                         with applicable laws and regulations. All of the Warrants shall fully vest on their grant
                                         date. All of the Warrants shall be in such form as attached hereto as Exhibit C. All
                                         of the Warrants shall be exercised as per a notice in such form as attached hereto as
                                         Exhibit D, which notice shall be mailed to the Company’s then current official
                                         address listed in securities filings and also be sent to and received by both Company
                                         email addresses set forth at the bottom of this Second Amendment. Upon the exercise of
                                         the Warrants, the fair market value per share of Common Stock shall be equal to the closing
                                         price of the Common Stock on the day prior to such exercise.

 

		4)	All
                                         compensation granted to Miles herein shall be in addition to compensation previously
                                         granted by the Company to Miles. No other compensation shall be owed to or due to Miles
                                         unless set forth in the Agreement or in a prior agreement executed in writing between
                                         the Company and Miles.

 

		5)	This
                                         Second Amendment, together with any other documents incorporated herein by reference,
                                         including the Agreement, and related exhibits and schedules, constitutes the sole and
                                         entire agreement of the parties with respect to the subject matter contained herein,
                                         and supersedes all prior and contemporaneous understandings, agreements, representations
                                         and warranties, both written and oral, with respect to such subject matter.

 

		6)	The
                                         Agreement, as amended by this Second Amendment, may only be amended, modified or supplemented
                                         by an agreement in writing signed by each party hereto, and any of the terms thereof
                                         may be waived, only by a written document signed by each party to the Agreement or, in
                                         the case of waiver, by the party or parties waiving compliance.

 

		7)	This
                                         Second Amendment shall be governed by and construed in accordance with the internal laws
                                         of the State of New York without giving effect to any choice or conflict of law provision
                                         or rule. Each party irrevocably submits to the exclusive jurisdiction and venue of the
                                         federal and state courts located in New York in any legal suit, action or proceeding
                                         arising out of or based upon this Second Amendment or the Services and/or compensation
                                         provided hereunder.

 

		8)	If
                                         any term or provision of this Second Amendment is invalid, illegal or unenforceable in
                                         any jurisdiction, such invalidity, illegality or unenforceability shall not affect any
                                         other term or provision of this Second Amendment or invalidate or render unenforceable
                                         such term or provision in any other jurisdiction

 

		9)	This
                                         Second Amendment may be executed in multiple counterparts and by facsimile signature
                                         or by email of a PDF document, each of which shall be deemed an original and all of which
                                         together shall constitute one instrument.

 

     

     

    

  

IN
WITNESS WHEREOF the parties have executed this Second Amendment this 19th day of March 2015.

 

 

LIGHTLAKE
THERAPEUTICS INC.

 

BY:
/s/ Kevin Pollack

 

Name:
Kevin Pollack

 

Title:
CFO

 

Address:
445 Park Avenue, 9th Floor, New York, NY 10022

 

Email
Addresses (for electronic Notice): Both kevin.pollack@lightlaketherapeutics.com and roger.crystal@lightlaketherapeutics.com

 

 

BRAD
MILES

 

/s/
Brad Miles

 

Federal
Tax Id. No./Social Security No.: N/A

 

Email
Address (for electronic Notice):

 

Address:
117 Sandcherry Court, Pickering, Ontario Canada, L1V 6V8

 

Phone
Number: 905-509-2372

 

     

     

    

 

EXHIBIT
A – Stock Option Grant

 

Dear
Brad Miles (the “Option Holder”),

 

As
per the Agreement dated January 22, 2013, as amended, between Lightlake Therapeutics Inc. (the “Company”) and you,
you have been granted options (the “Options”) to purchase common stock (the “Common Stock”) of the Company
(with each share of Common Stock of the Company, a “Share”) as follows:

 

	 	Date
    of Grant:	March
    19, 2015
	 	 	 
	 	Exercise
    Price per Share:	US$10.00
    / US$15.00
	 	 	 
	 	Total
    Number of Shares Granted:	48,000
    / 32,000
	 	 	 
	 	Total
    Exercise Price:	Cashless
    exercise
	 	 	 
	 	Type
    of Options:	Non-Qualified
    Stock Options
	 	 	 
	 	Expiration
    Date:	March
    18, 2020
	 	 	 
	 	Termination
    Period:	These
    Options may be exercised for a period of five (5) years from the Date of Grant.  You are responsible for keeping
    track of this exercise period.  The Company will not provide further notice of such period.
	 	 	 
	 	Transferability:	These
    Options may not be transferred, except as permitted by applicable laws and regulations.
	 	 	 
	 	Restriction
    on Exercise:	Your
    ability to exercise these Options is contingent on your and your officers, agents, and representatives keeping confidential
    information shared with you and your officers, agents, and representatives confidential and complying with all applicable
    laws and regulations.
	 	 	 
	 	Vesting:	100%
    on the Date of Grant

 

Following
receipt by the Company of evidence and/or an indemnity from you to the Company in a form reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of these Options or any certificates for representing the Shares underlying these
Options and, in the event of mutilation, following the surrender and cancellation of such Options or stock certificate, the Company
shall make and deliver replacement Options or stock certificate of like tenor and dated as of such cancellation, in lieu of these
Options or stock certificate, without any charge therefor.  Any such replacement Options or stock certificates shall be subject
to the same terms, conditions, and restrictions as these Options and any Shares underlying these Options. Proportionate adjustments
shall automatically be made to both the Exercise Price and number of these Options in the event of a stock split, recapitalization,
change of control and fundamental transaction. Upon the exercise of these Options, the fair market value per Share shall be equal
to the closing price of the Shares on the day prior to such exercise.

 

     

     

    

  

Exercise
of these Options shall occur by your: (i) surrendering the exercised Options at the then current official address listed in securities
filings of the Company together with a properly completed and signed Notice of Exercise of Stock Option (as per Exhibit B), and
(ii) providing via email a readable .pdf or scan of all of the documentation set forth in (i) to the following email addresses:
roger.crystal@lightlaketherapeutics.com and kevin.pollack@lightlaketherapeutics.com.

 

By
your signature and the signature of the Company’s representative below, you and the Company agree to the terms of these
Options.

 

	Brad
    Miles	 	LIGHTLAKE
    THERAPEUTICS INC. 
	 	 	 
	 	 	 
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Title:

 

     

     

    

 

EXHIBIT
B – Form of Notice of Exercise of Stock Option

 

Ladies
and Gentlemen:

 

This
letter constitutes an unconditional and irrevocable notice that I hereby exercise the stock option(s) granted to me by Lightlake
Therapeutics Inc., a Nevada corporation (the “Company”) on _______________ at a fair market value of US$ ______ per
share (equal to the closing price of the shares of common stock of the Company on the day prior to this exercise). Pursuant to
the terms of such option(s), I wish to purchase _______________ shares of the common stock covered by such option(s) at the exercise
price(s) of US$ ______ per share via cashless exercise.

 

These
shares should be delivered as follows:

 

	Name:	 	 
	 	 	 
	Address:
    	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Tax
    ID #:	 	 

 

I
represent that I will not dispose of such shares in any manner that would involve a violation of applicable securities laws.

 

	Dated:  	 	 	By: 	 	 
	 	 	 	 	 	 
	 	 	 	Name:
	 	 

 

     

     

    

 

EXHIBIT
C – Warrant Grant

 

Dear
Brad Miles (the “Warrant Holder”),

 

As
per the Agreement dated January 22, 2013, as amended, between Lightlake Therapeutics Inc. (the “Company”) and you,
you have been granted warrants (the “Warrants”) to purchase common stock (the “Common Stock”) of the Company
(with each share of Common Stock of the Company, a “Share”) as follows:

 

	 	Date
    of Grant:	March
    19, 2015
	 	 	 
	 	Exercise
    Price per Share:	US$10.00
	 	 	 
	 	Total
    Number of Shares Granted:	45,000
	 	 	 
	 	Type
    of Options:	Non-Qualified
    Stock Options
	 	 	 
	 	Expiration
    Date:	March
    18, 2020
	 	 	 
	 	Termination
    Period:	These
    Options may be exercised for a period of five (5) years from the Date of Grant.  You are responsible for keeping
    track of this exercise period.  The Company will not provide further notice of such period.
	 	 	 
	 	Transferability:	These
    Warrants may be transferred, except as prohibited by applicable laws and regulations.
	 	 	 
	 	Restriction
    on Exercise:	Your
    ability to exercise these Options is contingent on your and your officers, agents, and representatives keeping confidential
    information shared with you and your officers, agents, and representatives confidential and complying with all applicable
    laws and regulations.
	 	 	 
	 	Vesting:	100%
    on the Date of Grant

 

These
Warrants may only be exercised for cash.

 

     

     

    

  

Following
receipt by the Company of evidence and/or an indemnity from you to the Company in a form reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of these Warrants or any certificates for representing the Shares underlying these
Warrants and, in the event of mutilation, following the surrender and cancellation of such Warrants or stock certificate, the
Company shall make and deliver replacement Warrants or stock certificate of like tenor and dated as of such cancellation, in lieu
of these Warrants or stock certificate, without any charge therefor.  Any such replacement Warrants or stock certificates
shall be subject to the same terms, conditions, and restrictions as these Warrants and any Shares underlying these Warrants. Proportionate
adjustments shall automatically be made to both the Exercise Price and number of these Warrants in the event of a stock split,
recapitalization, change of control and fundamental transaction. Upon the exercise of these Warrants, the fair market value per
Share shall be equal to the closing price of the Shares on the day prior to such exercise.

 

Exercise
of these Warrants shall occur by your: (i) surrendering the exercised Warrants at the then current official address listed in
securities filings of the Company together with a properly completed and signed Notice of Exercise of Stock Warrant (as per Exhibit
D), (ii) paying the proper amount of cash to the Company, and (iii) providing via email a readable .pdf or scan of all of the
documentation set forth in (i) and (ii) to the following email addresses: roger.crystal@lightlaketherapeutics.com and kevin.pollack@lightlaketherapeutics.com.

 

By
your signature and the signature of the Company’s representative below, you and the Company agree to the terms of these
Warrants.

 

	Brad
    Miles	 	LIGHTLAKE
    THERAPEUTICS INC. 
	 	 	 
	 	 	 
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Title:

 

 

     

     

    

 

EXHIBIT
D

 

Form
of Notice of Exercise of Warrant

Ladies
and Gentlemen:

 

This
letter constitutes an unconditional and irrevocable notice that I hereby exercise the warrant(s) granted to me by Lightlake Therapeutics
Inc., a Nevada corporation (the “Company”) on _______________ at a fair market value of US$ ______ per share. Pursuant
to the terms of such warrant(s), I wish to purchase _______________ shares of the common stock covered by such warrant(s) at the
exercise price(s) of US$ ______ per share via cash exercise, for a total aggregate purchase price of US$_______________, which
I agree to promptly provide to the Company.

 

These
shares should be delivered as follows:

 

	Name:	 	 
	 	 	 
	Address:
    	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Tax
    ID #:	 	 

 

I
represent that I will not dispose of such shares in any manner that would involve a violation of applicable securities laws.

 

	Dated:  	 	 	By: 	 	 
	 	 	 	 	 	 
	 	 	 	Name:Exhibit 10.1

REDSTONE LITERARY AGENTS, INC.

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT

The undersigned (the “Subscriber”) hereby irrevocably subscribes for and agrees to purchase from RedStone Literary Agents, Inc. (the “Company”) an unsecured convertible note (the “Note”) in the principal amount of $20,000 (the “Principal Amount”). The Subscriber agrees to be bound by the terms and conditions set forth in the attached “Terms and Conditions of Subscription for Convertible Note”.

	
Subscriber Information

  

Oceanside Strategies Inc. 

	
(Name of Subscriber)

	 
	
 

X /s/ Dain Currie 

	
(Signature of Authorized Signatory)

 

	
Dain Currie 

	
(Name and Title  of Authorized Signatory – if the Subscriber is not an Individual)

 

	 
	(SIN, SSN, or other Tax Identification Number of the Subscriber)
	 
	
10 Market Street, Suite 688, Camana Bay, Cayman Islands, KY1-9006 

	(Subscriber’s Address, including city and province or state of residence)
	 
	 
	
(Telephone Number)                                              (Email Address)

	 
	Register the Note as set forth below:
	 
	Same as above
	(Name to Appear on Note Certificate)
	 
	 
	(Address)
	 
	 

 

The Company hereby accepts the subscription as set forth above on the terms and conditions contained in this Subscription Agreement as of 2nd day of March, 2017 (the “Closing Date”).

REDSTONE LITERARY AGENTS, INC.

 

	Per: /s/ James P. Geiskopf	 
	       Authorized Signatory	 

 

	
Address:

	
3250 Oakland Hills Court

	 	
Fairfield, CA 94534

	
Email:

	
jgeiskopf@aol.com

 

 

TERMS AND CONDITIONS OF SUBSCRIPTION FOR CONVERTIBLE NOTE

	
1.

	
Subscription

 

1.1 On the basis of the representations and warranties and subject to the terms and conditions set forth herein, the Subscriber hereby irrevocably subscribes for and agrees to purchase an unsecured convertible note in the principal amount of $20,000 (the “Note”) from the Company (such subscription and agreement to purchase being, this “Subscription”) for the Principal Amount, and the Company agrees to sell the Note to the Subscriber.

 

1.2 The Note will bear interest at a rate of 18.0% per annum, compounded annually, which will be payable on the earlier of: (a) the maturity date of the Note, which will be five years from the date of issuance, (b) the conversion of any principal amount of the Note, and (c) the date that all amounts owing under the Note are prepaid by the Company as provided in the Note. The Note will be convertible into shares of common stock in the capital of the Issuer (each, a “Share”) on the terms set out in the Note. The Note and the Shares are referred to herein as the “Securities”.

	
2.

	
Payment

 

2.1 The Parties agree that the Subscription Amount shall be paid by the payment of $20,000 as at the Closing (the “Cash Consideration”).

	
3.

	
Documents Required from the Subscriber

 

3.1 The Subscriber must complete, sign and return to the Company an executed copy of this Agreement and any additional documents, questionnaires, notices and undertakings as may be required by any regulatory authorities and applicable law.

 

3.2 Both parties to this Agreement acknowledge and agree that Clark Wilson has acted as counsel only to the Company and is not protecting the rights and interests of the Subscriber. The Subscriber acknowledges and agrees that the Company and Clark Wilson have given the Subscriber the opportunity to seek, and have recommended that the Subscriber obtain, independent legal advice with respect to the subject matter of this Agreement and, further, the Subscriber hereby represents and warrants to the Company and Clark Wilson that the Subscriber has sought independent legal advice or waives such advice.

	
4.

	
Conditions and Closing

 

4.1 The Closing is conditional upon the issue and sale of the Note being exempt from the requirement to file a prospectus and the requirement to deliver an offering memorandum under applicable securities laws relating to the sale of the Note, or the Company having received such orders, consents or approvals as may be required to permit such sale without the requirement to file a prospectus or deliver an offering memorandum.

2

 

4.2 The Subscriber acknowledges that the certificate representing the Note will be available for delivery upon the Closing, provided that the Subscriber has satisfied the requirements of Section 3 hereof and the Company has accepted this Agreement.

	
5.

	
Acknowledgements and Agreements of Subscriber

 

5.1 The Subscriber acknowledges and agrees that:

	
(a)

	
the Securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the “1933 Act”), or under any state securities or “blue sky” laws of any state of the United States, and, unless so registered, may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S under the 1933 Act (“Regulation S”), except in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act and in each case only in accordance with applicable securities laws;

	
(b)

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

	
(c)

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

	
(d)

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

	
(e)

	
the decision to acquire the Securities will not be based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company and such decision will be based entirely upon a review of any public information (the “Public Record”) which has been filed by the Company with the United States Securities and Exchange Commission (the “SEC”);

	
(f)

	
the Company may complete additional financings in the future in order to develop the business of the Company and fund its ongoing development, and such future financings may have a dilutive effect on the Subscriber but there is no assurance that such financing will be available, on reasonable terms or at all, and if not available, the Company may be unable to fund its ongoing development;

	
(g)

	
there are risks associated with an investment in the Securities;

3

	
(h)

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

	
(i)

	
a portion of the Offering may be sold pursuant to an agreement between the Company and one or more agent or agents registered in accordance with applicable securities laws, in which case the Company will pay a fee and/or compensation securities on commercially reasonable terms. In addition, a finder’s fee may be payable by the Company to finders who introduce purchasers to the Company if such persons’ subscription agreements are accepted by the Company;

	
(j)

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

	
(k)

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

	
(l)

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

	
(m)

	
the Subscriber will indemnify and hold harmless the Company and, where applicable, its directors, officers, employees, agents, advisors and shareholders, from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation or warranty of the Subscriber contained in this Agreement or in any document furnished by the Subscriber to the Company in connection herewith being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;

	
(n)

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

	
(i)       

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

	
(ii)       

	
applicable resale restrictions;

4

	
(o)

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

	
(p)

	
the Subscriber consents to the placement of a legend or legends on any certificate or other document evidencing any of the Securities setting forth or referring to the restrictions on transferability and sale thereof contained in this Agreement, with such legend(s) to be substantially as follows:

 

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

	
(q)

	
the Company has advised the Subscriber that the Company is relying on an exemption from the requirements to provide the Subscriber with a prospectus to issue the Securities and, as a consequence of acquiring the Securities pursuant to such exemption, certain protections, rights and remedies provided by the applicable securities laws including statutory rights of rescission or damages, will not be available to the Subscriber;

	
(r)

	
no securities commission or similar regulatory authority has reviewed or passed on the merits of any of the Securities;

	
(s)

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

	
(t)

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

	
(u)

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

5

	
6.

	
Representations, Warranties and Covenants of the Subscriber

 

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

	
(a)

	
the Subscriber is not resident in the United States or Canada and:

	
(i)       

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

	
(ii)      

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

	
(iii)       

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

	
(iv)       

	
the purchase of the Securities by the Subscriber does not trigger:

	
A.       

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

	
B.       

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

	
(v)       

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

	
(b)

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

	
(c)

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

	
(d)

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

6

	
(e)

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

	
(f)

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

	
(g)

	
the sale of the Securities to the Subscriber as contemplated by the delivery of this Agreement, the acceptance of it by the Company and the issuance of the Securities to the Subscriber complies with all applicable laws of the Subscriber’s jurisdiction of residence or domicile and will not cause the Company to become subject to or comply with any disclosure, prospectus or reporting requirements under any such applicable laws;

	
(h)

	
the Subscriber has the legal capacity and competence to enter into and execute this Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporate entity, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Agreement on behalf of the Subscriber;

	
(i)

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

	
(j)

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

	
(k)

	
the Subscriber has received and carefully read this Agreement;

	
(l)

	
the Subscriber is aware that an investment in the Company is speculative and involves certain risks (including those risks disclosed in the Public Record), including the possible loss of the entire investment;

	
(m)

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

	
(n)

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

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(o)

	
the Subscriber (i) is able to fend for him/her/itself in the Subscription; (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the Securities; and (iii) can afford the complete loss of this investment;

	
(p)

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

	
(q)

	
the Subscriber is not an underwriter of, or dealer in, the Securities, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;

	
(r)

	
the Subscriber understands and agrees that there may be material tax consequences to the Subscriber of an acquisition or disposition of the Securities. The Company gives no opinion and makes no representation with respect to the tax consequences to the Subscriber under federal, state, provincial, local or foreign tax law of the Subscriber’s acquisition or disposition of the Securities;

	
(s)

	
the Subscriber has a pre-existing, substantive relationship with the Company (or a person acting on its behalf) that is sufficient to enable the Company (or a person acting on its behalf) to be aware of the Subscriber’s financial circumstances or sophistication. This substantive relationship with the Company (or a person acting on its behalf) through which the Subscriber is subscribing the Securities predates the contact between the Company (or a person acting on its behalf) and the Subscriber regarding an investment in the Securities;

	
(t)

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

	
(u)

	
no person has made to the Subscriber any written or oral representations:

	
(i)        

	
that any person will resell or repurchase any of the Securities,

	
(ii)       

	
that any person will refund the purchase price of any of the Securities, or

	
(iii)       

	
as to the future price or value of any of the Securities, or

	
(iv)       

	
that any of the Securities will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the Securities on any stock exchange or automated dealer quotation system, except that certain market makers make market in the Company’s shares of common stock on the OTCQB market operated by the OTC Markets Group; and

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(v)

	
the Subscriber acknowledges and agrees that the Company shall not consider the Subscriber’s Subscription for acceptance unless the Subscriber provides to the Company, along with an executed copy of this Agreement, such other supporting documentation that the Company or its legal counsel may request to establish the Subscriber’s qualification as a qualified investor.

 

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

 

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

 

7.1 The Subscriber acknowledges that the representations and warranties contained herein are made by it with the intention that such representations and warranties may be relied upon by the Company and its legal counsel in determining the Subscriber’s eligibility to purchase the Securities under applicable securities laws, or (if applicable) the eligibility of others on whose behalf it is contracting hereunder to purchase the Securities under applicable securities laws. The Subscriber further agrees that by accepting delivery of the certificate representing the Note, it will be representing and warranting that the representations and warranties contained herein are true and correct as at the Closing Date with the same force and effect as if they had been made by the Subscriber on the Closing Date and that they will survive the purchase by the Subscriber of the Securities and will continue in full force and effect notwithstanding any subsequent disposition by the Subscriber of such Securities.

 

8. Resale Restrictions

 

8.1 The Subscriber acknowledges that any resale of the Securities will be subject to resale restrictions contained in or required by the securities laws applicable to the Subscriber or proposed transferee.

 

8.2 The Subscriber acknowledges that the Securities may be subject to an indefinite “hold period” under the applicable securities laws and that the Subscriber will not be able to resell the Securities until expiration of the applicable “hold period” except in accordance with limited exemptions under applicable securities laws.

	
9.

	
Legending and Registration of Subject Securities

 

9.1 The Subscriber hereby acknowledges that a legend may be placed on the certificates representing the Securities to the effect that the securities represented by such certificates are subject to a hold period and may not be traded until the expiry of such hold period except as permitted by applicable securities laws.

 

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

 

10. Waiver

 

10.1 The Subscriber hereby waives, to the fullest extent permitted by law, any rights of withdrawal, rescission or compensation for damages to which the Subscriber might be entitled in connection with the distribution of any of the Securities.

9

 

11. Collection of Personal Information

 

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

	
12.

	
Costs

 

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

	
13.

	
Execution of Subscription Agreement

 

13.1 The Company shall be entitled to rely on delivery by facsimile machine or e-mail of an executed copy of this Agreement, and acceptance by the Company of such facsimile or e-mail copy shall be equally effective to create a valid and binding agreement between the Subscriber and the Company in accordance with the terms hereof. If less than a complete copy of this Agreement is delivered to the Company at Closing, the Company and its counsel are entitled to assume that the Subscriber accepts and agrees to all of the terms and conditions of the pages not delivered at Closing unaltered. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same Agreement.

 

13.2 The Subscriber hereby authorizes the Company to correct any minor errors in, or complete any minor information missing from any part of this Agreement and any other acknowledgements, provisions, forms, certificates or documents executed by the Subscriber and delivered to the Company in connection with the Subscription.

	
14.

	
Currency

 

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

	
15.

	
Governing Law

 

15.1 This Agreement is governed by the laws of the State of Nevada and the federal laws of the United States applicable therein. The Subscriber, in its personal or corporate capacity and, if applicable, on behalf of each beneficial purchaser for whom it is acting, irrevocably attorns to the jurisdiction of the courts of the State of Nevada.

 

10

	
16.

	
Survival

 

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

	
17.

	
Assignment

 

17.1 This Agreement is not transferable or assignable.

	
18.

	
Severability

 

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

	
19.

	
Entire Agreement

 

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

	
20.

	
Notices

 

20.1 All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard form of telecommunication.  Notices to the Subscriber shall be directed to the respective addresses of the Parties as set out on the first page of this Agreement.

 

21. Counterparts and Electronic Means

 

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

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