Document:

cleb-2083007ex1011.htm

    Exhibit
      10.12

     

    TOM
      JENNEWEIN

    STOCK
      OPTION AGREEMENT

    

    

    THIS
      AGREEMENT is made and entered into as of the date last below written by and
      between CleanTech Biofuels, Inc., a Delaware corporation (the
“Company”), and Tom Jennewein (the
“Optionee”).

    

    WHEREAS,
      the Optionee was hired as Chief Financial Officer of the Company as of the
      _____
      day of August, 2007; and

    

    WHEREAS,
      the Company, in order to induce the Optionee to accept a position as Chief
      Financial Officer of the Company and to contribute to the success of the
      Company, agreed to grant the Optionee an option to acquire a proprietary
      interest in the Company through the purchase of shares of stock of the Company;
      and

    

    WHEREAS,
      the Company adopted the Company’s 2007 Stock Option Plan (the
“Plan”) under which the Company is authorized to grant stock
      options to certain employees, directors and consultants of the Company;
      and

    

    WHEREAS,
      the Committee (as defined in the Plan) has determined that the Company should,
      in recognition of Optionee’s contributions, grant an option to the Optionee
      pursuant to the terms of this Agreement and the Plan; and

    

    WHEREAS,
      the Optionee desires to accept the option.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants set forth herein
      and for other valuable consideration hereinafter set forth, the parties agree
      as
      follows:

    

    1.           Grant
      of Option.  The Company hereby grants a
      Qualified Stock Option in the amount and subject to the terms provided in this
      Agreement (the “Option”) effective as of the _________ day of
      August, 2007 (the “Grant Date”).  If the Option is a
      Nonqualified Stock Option, the Option is not intended to be and shall
not be treated as a qualified incentive stock option as defined
      under
      Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”).  If the Option is a Qualified Stock Option,
      the Option is intended to be and shall be treated as a qualified incentive
      stock
      option as defined under Section 422 of the Internal Revenue Code of 1986, as
      amended (the “Code”).  The foregoing notwithstanding,
      to the extent the aggregate fair market value of stock with respect to which
      Qualified Stock Options are exercisable for the first time by Optionee in any
      given calendar year exceeds $100,000, such Qualified Stock Options shall be
      treated as Nonqualified Stock Options under the Plan.  In such event,
Section 8 of this Agreement shall not apply to shares
      acquired by Optionee as a result of the exercise of such Nonqualified Stock
      Options.

    

    2.           Shares.  The
      shares of stock subject to the Option shall be the Company’s authorized but
      unissued or reacquired Common Stock, $0.001 par value (the “Common
      Stock”).

    

    3.           Number
      of Shares.  The number of shares of
      Common Stock which the Optionee may purchase under the Option is
800,000.

    

    4.           Term
      and Exercise of Option.  The Option
      shall be first exercisable with respect to one third (1/3) of the shares subject
      to the Option commencing on the First Anniversary of Grant Date, with respect
      to
      another one third (1/3) of the shares subject to the Option commencing on the
      Second Anniversary of Grant Date and with respect to the final one third (1/3)
      of the shares subject to the Option commencing on the Third Anniversary of
      Grant
      Date, if Optionee is an employee of the Company as of each of such dates;
provided, however, if Optionee’s employment is terminated for any
      reason other than for Cause or without Good Reason, as such terms are defined
      in
      Optionee’s Employment Agreement,  then one half (1/2) of the shares
      subject to the Option shall immediately vest to the extent not already vested
      at
      such time.  The exercise period for the Option shall end upon the
      earliest of the following:

    

    
      	
               

            	
              a.

            	
              Immediately
                upon the termination of Optionee’s employment for Cause or without Good
                Reason; or

            

    

    

    
      	
               

            	
              b.

            	
              The
                date three (3) months after the Optionee’s termination of Optionee as an
                employee of the Company for any reason other than for Cause or without
                Good Reason, retirement, disability, or death;
                or

            

    

    

    
      	
               

            	
              c.

            	
              The
                date thirty-six (36) months after termination of the Optionee as
                an
                employee of the Company due to retirement or disability;
                or

            

    

    

    
      	
               

            	
              d.

            	
              The
                date one (1) year after the Optionee’s death, if and only if the Optionee
                was an employee of the Company on the date three (3) months prior
                to the
                Optionee’s death; or

            

    

    

    
      	
               

            	
              e.

            	
              The
                date seven (7) years after the Grant
                Date.

            

    

    

    To
      the
      extent the Option for any of the shares is not exercised within the foregoing
      periods, the Option shall expire and thereafter shall be null and
      void.

    

    Notwithstanding
      anything herein to the contrary, if Optionee is employed by the Company upon
      the
      effective date of any merger, consolidation, sale of all (or substantially
      all)
      of the assets of the Company, or other business combination involving the sale
      or transfer of all (or substantially all) of the capital stock or assets of
      the
      Company in which the Company is not the surviving entity, or if it is the
      surviving entity, either (i) it does not survive as an operating ongoing concern
      in substantially the same line of business, or (ii) it is controlled by persons
      or entities previously unaffiliated with the Company, the Option shall become
      exercisable immediately prior to the consummation of any of the foregoing events
      with respect to one hundred percent (100%) of the shares subject to the
      Option.

    

    5.           Manner
      of Exercise, Purchase Price, and
      Payment.  Exercise of the Option shall
      be made by delivery to the Company by Optionee (or other person entitled to
      exercise the Option as provided hereunder) of (i) an executed “Notice of
      Exercise of Stock Option and Record of Stock Transfer”, in the form
      attached hereto as Exhibit A and incorporated herein
      by reference, and (ii) payment of the aggregate purchase price for shares
      purchased pursuant to the exercise.  The price per share of the Common
      Stock which the Optionee may purchase hereunder is
$0.15.  The purchase price shall be payable in full in United
      States dollars in cash or by certified check upon the exercise of the
      Option.

    

    6.           Restriction
      on Transfer.  This Option is not
      transferable by the Optionee other than by will or the laws of descent and
      distribution, and is exercisable, during the Optionee’s lifetime, only by the
      Optionee.  Upon the death of the Optionee, the executors or
      administrators of the Optionee’s estate, or any person or persons who shall have
      acquired the right to exercise the Option by bequest, inheritance, or otherwise
      by reason of the death of the Optionee shall have the right to exercise the
      Option, provided that such exercise occurs not more than seven (7) years from
      the Grant Date and also within one (1) year of the Optionee’s
      death.

    

    7.           Restrictions
      on Exercise.  The Option shall be
      exercisable subject to the following restrictions:

    

    
      	
               

            	
              a.

            	
              The
                Optionee must be an employee of the Company at all times during the
                period
                beginning on the Grant Date and ending three (3) months before the
                earlier
                of the date of exercise of the Option or the date of the Optionee’s death;
                provided, however, that if the Optionee terminates employment with
                the
                Company due to retirement or disability, then the aforementioned
                period
                shall be extended to end thirty-six (36) months before the date of
                exercise of the Option.  If the Option is a Qualified Stock
                Option, the foregoing notwithstanding, the Optionee recognizes and
                acknowledges by the Optionee’s signature below that it is anticipated that
                the favorable tax consequences afforded by Section 422 of the Code
                will
                only be available to the Optionee if the Optionee exercises the Option
                within three (3) months of termination of employment with the Company
                or,
                in the event of the Optionee’s termination of employment due to
                disability, within one (1) year of such termination;
                and

            

    

    

    
      	
               

            	
              b.

            	
              So
                long as the Optionee remains an employee of the Company, the Option
                may be
                exercised in whole or in part; provided, however, that the Optionee
                shall
                not exercise part of the Option for fewer than twenty-five (25) shares
                at
                one time unless the total number of shares subject to the Option
                is fewer
                than twenty-five (25), in which case the Optionee shall not exercise
                the
                Option for fewer than all of such
                shares.

            

    

    

    8.           Restriction
      on Disposition of Common Stock. It is recognized
      that, under current tax laws, if the Option is a Qualified Stock Option and
      the
      Optionee disposes of Common Stock acquired pursuant to the Optionee’s exercise
      of the Option within two (2) years after the Grant Date or within one (1) year
      after the transfer of such Common Stock to the Optionee, then the Optionee
      must
      recognize ordinary income, as opposed to capital gain, on such
      disposition.  Further, the Optionee hereby consents to enter into and
      execute such agreements restricting the sale, assignment, transfer, or other
      disposition of the Common Stock by Optionee as may be required by the Committee
      and/or Board of Directors of the Company upon any exercise of the Option granted
      hereunder.

    

    9.           Other
      Restrictions.  The Option shall be
      subject to all of the terms, conditions, and restrictions of the Plan, the
      terms
      of which are incorporated herein by reference.  The Option shall in
      all respects be interpreted in accordance with the Plan.  To the
      extent the terms of the Plan and this Agreement or any other document pertaining
      to the Option are inconsistent, the Plan shall prevail.  The Committee
      shall interpret and construe the Plan and this Agreement and its interpretations
      and determinations shall be conclusive and binding on the parties hereto and
      any
      other person claiming an interest hereunder, with respect to any issue
      pertaining to the Option or the Plan.

    

    10.           Obligation
      of the Optionee.  The Optionee shall at
      no time be obligated to exercise the Option.

    

    11.           Rights
      as a Shareholder.  The Optionee and any
      transferee of the Option shall have no rights as a shareholder of the Company
      with respect to any shares of Common Stock which are the subject of the Option
      until the date of transfer on the records of the Company of the shares of
      stock.

    

    12.           Adjustment
      of and Changes in Stock of the
      Company.  In the event of a
      reorganization, recapitalization, change of shares, stock split, spin-off,
      stock
      dividend, reclassification, subdivision or combination of shares of stock of
      the
      Company, or the merger, consolidation, rights offering, or any other change
      in
      the corporate structure or shares of the Company, the Committee shall make
      such
      adjustment as it deems appropriate in the number and kind of shares of Common
      Stock subject to the Option or in the option price; provided, however, that
      no
      such adjustment shall give the Optionee any additional benefits under the
      Option.

    

    13.           Employment
      Rights Not Affected.  Neither the
      granting of the Option nor its exercise shall be construed as granting to the
      Optionee any right with respect to continuance of employment with the
      Company.  Except as may otherwise be limited by a written agreement
      between the Company and the Optionee, the right of the Company to terminate
      at
      will the Optionee’s employment with the Company at any time and for any reason
      whatsoever is specifically reserved by the Company, and acknowledged by the
      Optionee.

    

    14.           Amendment
      of Option.  The Option may be amended
      by the Board of Directors of the Company or by the Committee at any time (i)
      if
      the Board or the Committee determines, in its sole discretion, that amendment
      is
      necessary or advisable in light of any addition to or change in the Code or
      in
      the regulations issued thereunder, or any federal or state securities law or
      other law or regulation, which change occurs after the Grant Date and by its
      terms applies to the Option; or (ii) other than in the circumstances described
      in clause (i) or provided in the Plan, with the consent of the
      Optionee.  The foregoing notwithstanding, the Committee may, in its
      sole discretion, cancel the Option at any time prior to the Optionee’s exercise
      of the Option if, in the opinion of the Committee, the Optionee engages in
      activities contrary to the interests of the Company.

    

    15.           Notice.  Any
      notice to the Company provided for in this Agreement shall be addressed to
      it in
      care of its Secretary at its executive offices at 7320 Forsyth, Unit 102, St.
      Louis, Missouri  63105, and any notice to the Optionee shall be
      addressed to the Optionee at the current address shown on the payroll records
      of
      the Company, or to such other address and to the attention of such other
      person(s) or officer(s) as either party may designate by written
      notice.  Any notice shall be deemed to be duly given if and when
      properly addressed and deposited, postage paid,  in the United States
      mail or when hand delivered to the party to whom it is addressed.

    

    16.           Governing
      Law.  This Agreement shall be construed
      in accordance with and shall be subject to the internal laws of the State of
      Missouri, except to the extent preempted by federal law.

    

    17.           Acknowledgment
      of Receipt of Plan.  By Optionee’s signature below,
      Optionee hereby acknowledges receipt of a copy of the Plan.

    

    IN
      WITNESS WHEREOF, the Company has caused its duly authorized officers to
      execute this Agreement and the Optionee has placed his signature hereon as
      of
      the ____ day of ___________________, _____, and effective as of the Grant
      Date.

    

    
      	
              COMPANY:

            	
              CLEANTECH
                BIOFUELS, INC.

            
	 	 
	 	 
	 	
              By:

            	 
	 	 
	 	
              Title:  President

            
	 	 
	 	 
	 	
              ATTEST:

            
	 	 
	 	 
	 	
              By:

            	 
	 	 
	 	
              Title:

            	 
	 	 	 
	 	 
	
              OPTIONEE:

            	 
	 	
              Tom
                Jennewein

            

    

    

    

    

    
      
          

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    Tom
      Jennewein

    

    Notice
      of Exercise of Option

    and
      Record of Stock Transfer

    

    I
      hereby
      exercise my Option granted by Tom Jennewein subject to all the terms and
      provisions set forth in the Stock Option Agreement dated _______________, _____,
      pertaining thereto and of the Tom Jennewein Incentive Stock Option Plan referred
      to therein, and notify you of my desire to purchase ____________ shares of
      Common Stock, $<__________> par value of the Company (the “Common
      Stock”) which were offered to me pursuant to said Stock Option
      Agreement.  Enclosed is my certified check in the sum of
      $_____________ in full payment for such shares.

    

    I
      hereby
      represent that I have previously received a Stock Option Agreement and a copy
      of
      the Tom Jennewein Incentive Stock Option Plan from the Company and that I
      understand the terms and restrictions described therein.  I further
      represent that the ____________ shares of Common Stock to be delivered to me
      pursuant to the above-mentioned exercise of the Option granted to me on
      ________________ are being acquired by me as an investment and not with a view
      to, or for sale in connection with, the distribution of any of such
      shares.

    

    
      	
              Dated:
                _________________, ______

            	
              ___________________________________

            
	 	
              Optionee

            

    

    

    

    Receipt

    

    Receipt
      is hereby acknowledged of the delivery to me by Tom Jennewein, on the
 ____ day of __________ _, ___  of stock
      certificates for ____________ shares of Common Stock purchased by me pursuant
      to
      the terms and conditions of the Tom Jennewein Incentive Stock Option Plan
      referred to above, which shares were transferred to me on the Company’s
      stock
      record books on the  _____ day of
      ____________ ,____ .

    

    
      	 	
              ___________________________________

            
	 	
              OptioneeUnassociated Document

    
      
        
          _________

           

           

           

           

           

           

           

           

           

          U.S.
            SHARE PRIVATE
            PLACEMENT

           

           

           

          SUBSCRIPTION
            AGREEMENT

           

           

           

           

           

           

           

           

          Between:

           

           

          DENARII RESOURCES INC.

           

           

          And:

           

           

          THE UNDERSIGNED SUBSCRIBER

           

           

          OXFORD
            CAPITAL SERVICES
            INC.

           

           

           

          __________

           

           

           

        

      

       

       

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

       

       

       

       

       

      U.S.
        SHARE PRIVATE
        PLACEMENT

       

       

       

      SUBSCRIPTION
        AGREEMENT

       

       

       

       

       

      THESES SECURITIES HAVE NOT BEEN
        REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR
        THE LAWS OF ANY STATE, AND ARE BEING ISSUED PURSUANT TO AN EXEMPTION FROM
        REGISTRATION PERTAINING TO SUCH SECURITIES AND PURSUANT TO A REPRESENTATION
        BY
        THE SECURITY HOLDER NAMED HEREON THAT SAID SECURITIES HAVE BEEN ACQUIRED
        FOR
        PURPOSES OF INVESTMENT AND NOT FOR PURPOSES OF DISTRIBUTION.  THESE
        SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED
        IN THE
        ABSENCE OF REGISTRATION, OR THE AVAILABILITY OF AN EXEMPTION FROM SUCH
        REGISTRATION.  FURTHERMORE, NO OFFER, <?xml:namespace prefix = st1 ns =
        "urn:schemas-microsoft-com:office:smarttags" />SALE, TRANSFER, PLEDGE OR
        HYPOTHECATION IS TO TAKE PLACE WITHOUT THE PRIOR WRITTEN APPROVAL OF COUNSEL
        TO
        THE COMPANY.  THE STOCK TRANSFER AGENT HAS BEEN ORDERED TO EFFECTUATE
        TRANSFERS ONLY IN ACCORDANCE WITH THE ABOVE INSTRUCTIONS.

       

       

       

       

       

      PRIVATE SHARE ISSUE

       

       

      
        	
                To:

              	
                DENARII
                  RESOURCES INC. (hereinafter referred to as the
                  “Company”), with an address for notice and delivery located at
                  510-999 West Hastings Street Vancouver BC V6C 2W2.

              

      

      

                                     
The Company is offering, on a private placement basis,
        common shares of its own
        issue (each being a “Share”) to eligible investors (each such an investor
        who subscribes to this issue by this document is hereinafter referred to
        as the
“Subscriber”) at a subscription price of U.S. $0.10 per Share.  The
        Company offers, and the Subscriber accepts, the Shares on the terms and
        conditions as set forth in this subscription agreement (the
“Agreement”).

       

       

      Article
        1

      SUBSCRIPTION
        FOR
        SHARES

       

      1.1                          
        Subscription for Shares.   Based upon the
        hereinafter terms, conditions, representations, warranties and covenants
        given
        by each party to the other, the Subscriber hereto hereby irrevocably subscribes
        for and agrees to purchase 250,000 Common Shares of the
        Company, at a subscription price of U.S. $0.10 per Share, for aggregate
        consideration of U.S. $25,000.00 (the “Subscription
        Price”).

       

      1.2                          
        Acceptance of Subscription.   The Company,
        upon acceptance by its Board of Directors (the “Board”) of all or part of
        this subscription Agreement, agrees to issue the accepted number of Shares,
        as
        fully paid and non-assessable, and as consideration for the Subscriber’s
        subscription, and to refund any excess subscription monies of the Subscription
        Price of any non-accepted portion of this subscription Agreement by the
        Board.

       

       

       

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      1.3                          
        Subscriber’s eligibility for subscription.  
The Subscriber acknowledges that the Subscriber
        is purchasing the Shares on a
        private basis and is either:

       

       

      (a)          
an
        eligible investor under the Subscriber’s domicile laws; or

       

       

      (b)          
is
        subscribing for a value in Shares constituting an exempt investment under
        the
        laws of the Subscriber’s domicile; or

       

       

      (c)          
is
        subscribing pursuant to a qualifying offering memorandum and the terms thereof;
        or

       

       

      (d)          
is
        otherwise an eligible investor under the laws of the Subscriber’s domicile by
        virtue of the Subscriber’s wealth, income and investment knowledge and
        capacity.

       

       

       

      1.4                          
        Risks of subscription.   The Subscriber
        acknowledges that no party independent of the Company has made or will make
        any
        opinion or representations on the merits or risks of an investment in any
        of the
        Shares unless sought out by the Subscriber; which the Subscriber is encouraged
        to do.

       

      Article
        2

      UNITED STATES ACCREDITED INVESTOR
        DECLARATIONS

       

       

      2.1                          
        Subscriber’s Declarations as an “Accredited
        Investor”.   The undersigned Subscriber warrants and
        certifies that the Subscriber is an “Accredited Investor”, as that term is
        defined in Regulation D promulgated under the United States Securities
        Act of 1933, as amended (the “U.S. Act”), by virtue of the
        Subscriber’s qualification under one or more of the following categories {please
        check the appropriate box or boxes where applicable}:

       

      
        
          	
                  ■

                	
                  The
                    Subscriber is a natural person whose individual net worth, or
                    joint net
                    worth with that person’s spouse, exceeds U.S.
                    $1,000,000.

                

        

      

       

       

      
        
          	
                  ■

                	
                  The
                    Subscriber is a natural person who had an individual income in
                    excess of
                    U.S. $200,000 in each of the two most recent years or joint income
                    with
                    the Subscriber’s spouse in excess of U.S. $300,000 in each of those years
                    and has a reasonable expectation of reaching the same income
                    level in the
                    current year.

                

        

        

        

        
          	
                  ■

                	
                   

                	
                  The
                    Subscriber is a corporation, organization described in section
                    501(c)(3)
                    of the United States Internal Revenue Code, Massachusetts, or
                    similar business trust or partnership, not formed for the specific
                    purpose
                    of acquiring the Shares, with total assets in excess of U.S.
                    $5,000,000.

                

        

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

      

       

       

      
        
          	
                  ■

                	
                   

                	
                  The
                    Subscriber is a trust, with total assets in excess of U.S. $5,000,000,
                    not
                    formed for the specific purpose of acquiring the Shares, whose
                    purchase is
                    directed by a sophisticated person.

                

        

        

        

        
          	
                  ■

                	
                   

                	
                  The
                    Subscriber is a director or executive officer of the
                    Company.

                

        

        

        

        
          	
                  ■

                	
                   

                	
                  The
                    Subscriber is a “private business development company” as that term is
                    defined in section 202(a)(22) of the United States Investment Advisers
                    Act of 1940.

                

        

        

        

        
          	
                  ■

                	
                   

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

                

        

        

        

        
          	
                  ■

                	
                   

                	
                  The
                    Subscriber is an entity in which all of the equity owners are
                    accredited
                    investors under one or more of the categories set forth
                    hereinabove.

                

        

      

       

       

      Article
        3

      RESTRICTED SECURITIES AND DISPOSITION UNDER
        “RULE 144”

       

       

       

       

      3.1                          
        No registration.   The Subscriber acknowledges
        and understands that neither the sale of the Shares which the Subscriber
        is
        acquiring nor any of the Shares themselves have been registered under the
        U.S.
        Act or any state securities laws, and, furthermore, that the Shares must
        be held
        indefinitely unless subsequently registered under the U.S. Act or an exemption
        from such registration is available.

       

      
        3.2                      Legending
          of the Shares.   The Subscriber also acknowledges
          and understands that the certificates representing the Shares will be stamped
          with the following legend (or substantially equivalent language) restricting
          transfer in the following manner:

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        “The
          securities represented by this certificate have not been registered under
          the
          United States Securities Act of 1933, as amended, or the laws of any state,
          and
          have been issued pursuant to an exemption from registration pertaining
          to such
          securities and pursuant to a representation by the security holder named
          hereon
          that said securities have been acquired for purposes of investment and
          not for
          purposes of distribution.  These securities may not be offered, sold,
          transferred, pledged or hypothecated in the absence of registration, or
          the
          availability of an exemption from such registration.  Furthermore, no
          offer, sale, transfer, pledge or hypothecation is to take place without
          the
          prior written approval of counsel to the Company being affixed to this
          certificate.  The stock transfer agent has been ordered to effectuate
          transfers of this certificate only in accordance with the above
          instructions.”.

         

            The
          Subscriber hereby consents to the Company making a notation on its records
          or
          giving instructions to any transfer agent of the Shares in order to implement
          the restrictions on transfer set forth and described hereinabove.

         

        
          3.3                      Disposition
            under Rule 144.   The Subscriber also acknowledges
            and understands that:

          

          

          
            	
                     

                  	
                    (a)

                  	
                    the
                      Shares are restricted securities within the meaning of Rule
                      144
                      promulgated under the U.S. Act;

                  

          

          

          

          
            	
                     

                  	
                    (b)

                  	
                    the
                      exemption from registration under Rule 144 will not be available
                      in any
                      event for at least one year from the date of purchase and payment
                      of the
                      Shares by the Subscriber, and even then will not be available
                      unless (i) a
                      public trading market then exists for the common stock of the
                      Company,
                      (ii) adequate information concerning the Company is then available
                      to the
                      public and (iii) other terms and conditions of Rule 144 are
                      complied with;
                      and

                  

          

          

          

          
            	
                     

                  	
                    (c)

                  	
                    any
                      sale of the Shares may be made by the Subscriber only in limited
                      amounts
                      in accordance with such terms and
                      conditions.

                  

          

          

          

          3.4                      Further
            restrictions on disposition.   The Subscriber
            further acknowledges and understands that, without in anyway limiting
            the
            acknowledgements and understandings as set forth hereinabove, the Subscriber
            agrees that the Subscriber shall in no event make any disposition of
            all or any
            portion of the Shares which the Subscriber is acquiring hereunder unless
            and
            until:

          

          

          
            	
                     

                  	
                    (a)

                  	
                    there
                      is then in effect a “Registration Statement” under the U.S. Act
                      covering such proposed disposition and such disposition is
                      made in
                      accordance with said Registration Statement;
                      or

                  

          

          

          

          
            	
                     

                  	
                    (b)

                  	
                    (i)
                      the Subscriber shall have notified the Company of the proposed
                      disposition
                      and shall have furnished the Company with a detailed statement
                      of the
                      circumstances surrounding the proposed disposition, (ii) the
                      Subscriber
                      shall have furnished the Company with an opinion of the Subscriber’s own
                      counsel to the effect that such disposition will not require
                      registration
                      of any such Shares under the U.S. Act and (iii) such opinion
                      of the
                      Subscriber’s counsel shall have been concurred in by counsel for the
                      Company and the Company shall have advised the Subscriber of
                      such
                      concurrence.

                  

          

           

           

          
 

          
            
              
              

            

            
              5

              
                

              

            

            
              
              

            

          

          

          Article
            4

          METHOD
            OF SUBSCRIPTION AND ACCEPTANCE BY THE COMPANY

          

          

          4.1                      Method
            of subscription.   It is hereby acknowledged and
            agreed by the parties hereto that any subscription for Shares shall be
            made by
            the Subscriber:

          

          

          
            	
                     

                  	
                    (a)

                  	
                    by
                      faxing to the Company, at (604) 685-7551, a completed copy
                      of this
                      Agreement together with an executed copy of the signature page
                      of this
                      Agreement; and

                  

          

          

          

          
            	
                     

                  	
                    (b)

                  	
                    by
                      delivering
                      to
                      the Company, at 999 West Hastings Street, Vancouver, BC, V6C 2W2,
                      an originally executed copy of this completed Agreement together
                      with
                      payment for the
                      exact
                      Subscription Price for such Shares in the following
                      manner:

                  

          

          

          

          
            	
                     

                  	
                    (i)

                  	
                    by
                      delivery to the Company’s above address of a bank draft or cashier’s
                      cheque for the exact Subscription Price for the Shares;
                      or

                  

          

          

          

          
            	
                     

                  	
                    (ii)

                  	
                    by
                      wire transfer to the Company of the exact Subscription Price
                      for the
                      Shares.

                  

          

          

           

          4.2                      Acceptance
            of subscription or return of Subscription Price by the
            Company.   The Subscriber acknowledges that the
            Company will be accepting subscriptions for Shares on a first come, first
            serve,
            basis.  As a consequence the Company, upon acceptance by its Board of
            all or part of this subscription Agreement (the “Acceptance”), hereby
            agrees to issue the accepted number of Shares, as fully paid and non-assessable,
            and as consideration for the Subscriber’s subscription, and to refund any excess
            subscription monies of the Subscription Price of any non-accepted portion
            of
            this subscription Agreement by the Board.  In this regard the
            Subscriber acknowledges
            that, although Shares may be issued to other purchasers concurrently
            with the
            Company’s Acceptance of all or part of this subscription Agreement, there may
            be
            other sales of Shares by the Company, some or all of which may close
            before or
            after the Acceptance herein.  The Subscriber further acknowledges that
            there is a risk that insufficient funds may be raised by the Company
            upon the
            Company’s Acceptance of all or part of this subscription Agreement to fund the
            Company’s objectives and that further closings may not take place after
            Acceptance herein.

          

          

          4.3                      
            Delivery
            of Share certificate.   The
            Company, agrees to deliver to the Subscriber a certificate representing
            the accepted number of Shares purchased by the Subscriber under this
            subscription Agreement and registered in the name of the
            Subscriber.

          

          

          
            
              
              

            

            
              6

              
                

              

            

            
              
              

            

          

          Article
            5

          INVESTMENT
            SUBSCRIPTION TERMS, CORPORATE DISCLOSURE AND GENERAL SUBSCRIBER ACKNOWLEDGEMENTS
            AND WARRANTIES

          

          

          5.1                      Description
            of the Shares.   The Company is issuing Shares at a
            price of U.S. $0.10 per Share.  The Shares are a part of the common
            shares of the Company and such common shares are the only class of shares
            of the
            Company presently authorized.  Copies of the constating documents of
            the Company describing the common shares and the rights of shareholders
            are
            available upon request.

          

          

          5.2                      Use
            of funds for the Shares and Release therefore.   The
            Subscriber acknowledges and agrees that the Subscription Price funds
            to be
            raised from the Shares are to be employed for the business of the Company
            in
            accordance with management’s discretion as to the best use of the same for the
            Company’s business plans.  The Company reserves the right at any time
            to alter its business plans in accordance with management’s appreciation of the
            market for the goods and services of the Company.  Without in any
            manner limiting the generality of the foregoing, the Subscriber hereby
            acknowledges and agrees that, in consideration, in part, of the Company’s within
            Acceptance of this subscription and agreement to issue Shares of the
            Company
            consequent thereon, the Subscriber hereby does hereby release, remise
            and
            forever discharge each of the Company and its respective directors, officers,
            employees, solicitors, agents, executors, administrators, successors
            and
            assigns, of and from all manner of action and actions, causes of action,
            suits,
            debts, dues, accounts, bonds, covenants, contracts, claims, damages and
            demands,
            whether known or unknown, suspected or unsuspected and whether at law
            or in
            equity, which against either of the Company and/or any of its respective
            directors, officers, employees, solicitors, agents, executors, administrators,
            successors and assigns, the Subscriber ever had, now has, or which any
            of the
            Subscriber’s respective successors or assigns, or any of them hereafter can,
            shall or may have by reason of any matter arising from the within use
            of funds
            (collectively, the “Release”).  The Subscriber shall hold
            harmless and indemnify the Company from and against, and shall compensate
            and
            reimburse the same for, any loss, damage, claim, liability, fee (including
            reasonable attorneys’ fees), demand, cost or expense (regardless of whether or
            not such loss, damage, claim, liability, fee, demand, cost or expense
            relates to
            a third-party claim) that is directly or indirectly suffered or incurred
            by the
            Company, or to which the Company becomes subject, and that arises directly
            or
            indirectly from, or relates directly or indirectly to, any inaccuracy
            in or
            breach of any representation, warranty, covenant or obligation of the
            Subscriber
            contained in this Release and Agreement.  This Release is irrevocable
            and will not terminate in any circumstances.

          

          

          5.3                      The
            Subscriber’s acknowledgments.  The Subscriber
            acknowledges and agrees that:

          

          

          
            	
                     

                  	
                    (a)

                  	
                    Further
                      financings:   the Company may issue further offers
                      similar to the within which may bear higher or lower prices
                      (as determined
                      by the Company in accordance with its appreciation of market
                      conditions).  The Company may, and will, acquire debt and/or
                      equity financings in the future required or advisable in the
                      course of the
                      Company’s business development;

                  

          

          

          

          
            	
                     

                  	
                    (b)

                  	
                    Withdrawal
                      or revocation:   this Agreement is given for valuable
                      consideration and shall not be withdrawn or revoked by the
                      Subscriber once
                      tendered to the Solicitors with the Subscription
                      Price;

                  

          

           

           

          
            
              
              

            

            
              7

              
                

              

            

            
              
              

            

          

          
 

          

          
            	
                     

                  	
                    (c)

                  	
                    Agreement
                      to be bound:   the Subscriber hereby specifically
                      agrees to be bound by the terms of this Agreement as to all
                      particulars
                      hereof and hereby reaffirms the acknowledgments, representations
                      and
                      powers as set forth in this
                      Agreement;

                  

          

          

          

          
            	
                     

                  	
                    (d)

                  	
                    Reliance
                      on Subscriber’s representations:   the Subscriber
                      understands that the Company will rely on the acknowledgments,
                      representations and covenants of the Subscriber contained herein
                      in
                      determining whether a sale of the Shares to the Subscriber
                      is in
                      compliance with applicable securities laws.  The Subscriber
                      warrants that all acknowledgments, representations and covenants
                      are true
                      and accurate; and

                  

          

          

          

          
            	
                     

                  	
                    (e)

                  	
                    Waiver
                      of pre-emptive rights:   the Subscriber hereby grants,
                      conveys and vests unto the President of the Company, or unto
                      such other
                      nominee or nominees of the President of the Company as the
                      President of
                      the Company may determine from time to time, in the President’s sole and
                      absolute discretion, as the Subscriber’s power of attorney solely for the
                      purpose of waiving any prior or pre-emptive rights which the
                      Subscriber
                      may have to further issues of equity by the Company under applicable
                      corporate and securities laws.

                  

          

          

          

          5.4                      The
            Subscriber’s representations, warranties and
            understandings.   The Subscriber acknowledges,
            represents and warrants to the Company and understands that:

          

          

          
            	
                     

                  	
                    (a)

                  	
                    Experience:   the
                      Subscriber has the requisite knowledge and experience in financial
                      and
                      business matters for properly evaluating the risks of an investment
                      in the
                      Company;

                  

          

          

          

          
            	
                     

                  	
                    (b)

                  	
                    Information:   the
                      Subscriber has received all information regarding the Company
                      reasonably
                      requested by the Subscriber;

                  

          

          

          

          
            	
                     

                  	
                    (c)

                  	
                    Risk:   the
                      Subscriber understands that an investment in the Company involves
                      certain
                      risks of which the Subscriber has taken full cognizance, and
                      which risks
                      the Subscriber fully understands;

                  

          

          

          

          
            	
                     

                  	
                    (d)

                  	
                    Adequacy
                      of information:   the
                      Subscriber has been given the opportunity to ask questions
                      of, and to
                      receive answers from, the Company concerning the terms and
                      conditions of
                      the offering and to obtain additional information necessary
                      to verify the
                      accuracy of the information contained in the information described
                      in
                      paragraph “(b)” hereinabove, or such other information as the Subscriber
                      desired in order to evaluate an investment in the
                      Company;

                  

          

          

          

          
            	
                     

                  	
                    (e)

                  	
                    Residency:   the
                      residence of the Subscriber as set forth hereinbelow is the
                      true and
                      correct residence of the Subscriber and the Subscriber has
                      no present
                      intention of becoming a resident or domiciliary of any other
                      State or
                      jurisdiction;

                  

          

          

           

           

          
            
              
              

            

            
              8

              
                

              

            

            
              
              

            

          

           

          
 

          
            	
                     

                  	
                    (f)

                  	
                    Independent
                      investigation:   in
                      making a decision to invest in the Company the Subscriber has
                      relied
                      solely upon independent investigations made by the Subscriber,
                      and the
                      particular tax consequences arising from an investment in the
                      Company will
                      depend upon the Subscriber’s individual
                      circumstances;

                  

          

          

          

          
            	
                     

                  	
                    (g)

                  	
                    Principal:   the
                      Subscriber is purchasing the Shares as principal for the Subscriber’s own
                      account and not for the benefit of any other person, except
                      as otherwise
                      stated herein, and not with a view to the resale or distribution
                      of all or
                      any of the Shares;

                  

          

          

          

          
            	
                     

                  	
                    (h)

                  	
                    Decision
                      to purchase:   the decision of the Subscriber to enter
                      into this Agreement and to purchase Shares pursuant hereto
                      has been based
                      only on the representations of this Agreement and any collateral
                      business
                      plan or offering memorandum provided herewith or based upon
                      the
                      Subscriber’s relationship with a director and/or senior officer of the
                      Company.  It is not made on other information relating to the
                      Company and not upon any oral representation as to fact or
                      otherwise made
                      by or on behalf of the Company or any other person.  The
                      Subscriber agrees that the Company assumes no responsibility
                      or liability
                      of any nature whatsoever for the accuracy, adequacy or completeness
                      of any
                      business plan information which has been created based upon
                      the Company’s
                      management experience.  In particular, and without limiting the
                      generality of the foregoing, the decision to subscribe for
                      Shares has not
                      been influenced by:

                  

          

          

          

          
            	
                     

                  	
                    (i)

                  	
                    newspaper,
                      magazine or other media articles or reports related to the
                      Company or its
                      business;

                  

          

          

          

          
            	
                     

                  	
                    (ii)

                  	
                    promotional
                      literature or other materials used by the Company for sales
                      or marketing
                      purposes; or

                  

          

          

          

          
            	
                     

                  	
                    (iii)

                  	
                    any
                      representations, oral or otherwise, that the Company will become
                      a listed
                      company, that any of the Shares will be repurchased or have
                      any guaranteed
                      future realizable value or that there is any certainty as to
                      the success
                      of the Company or the liquidity or value of any of the
                      Shares;

                  

          

          

          

          
            	
                     

                  	
                    (i)

                  	
                    Advertisements:   the
                      Subscriber acknowledges that the Subscriber has not purchased
                      Shares as a
                      result of any 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;

                  

          

          

          

          
            	
                     

                  	
                    (j)

                  	
                    Information
                      not received:   the Subscriber has not received, nor
                      has the Subscriber requested, nor does the Subscriber have
                      any need to
                      receive, any offering memorandum or any other document (other
                      than
                      financial statements or any other document the content of which
                      is
                      prescribed by statute or regulation) describing the business
                      and affairs
                      of the Company which has been prepared for delivery to, and
                      review by,
                      prospective purchasers in order to assist them in making an
                      investment
                      decision in respect of the Shares, and the Subscriber has not
                      become aware
                      of any advertisement in printed media of general and regular
                      paid
                      circulation, radio or television with respect to the distribution
                      of the
                      Shares;

                  

          

           

           

          
            
              
              

            

            
              9

              
                

              

            

            
              
              

            

          

          
 

          

          
            	
                     

                  	
                    (k)

                  	
                    Information
                      received:   the Subscriber has had access to such
                      additional information, if any, concerning the Company as the
                      Subscriber
                      has considered necessary in connection with the Subscriber’s investment
                      decision to acquire the Shares;

                  

          

          

          

          
            	
                     

                  	
                    (l)

                  	
                    Satisfaction
                      with information received:   the Subscriber
                      acknowledges that, to the Subscriber’s
                      satisfaction:

                  

          

          

          

          
            	
                     

                  	
                    (i)

                  	
                    the
                      Subscriber has either had access to or has been furnished with
                      sufficient
                      information regarding the Company and the terms of this investment
                      transaction to the Subscriber’s
                      satisfaction;

                  

          

          

          

          
            	
                     

                  	
                    (ii)

                  	
                    the
                      Subscriber has been provided the opportunity to ask questions
                      concerning
                      this investment transaction and the terms and conditions thereof
                      and all
                      such questions have been answered to the Subscriber’s satisfaction;
                      and

                  

          

          

          

          
            	
                     

                  	
                    (iii)

                  	
                    the
                      Subscriber has been given ready access to and an opportunity
                      to review any
                      information, oral or written, that the Subscriber has requested,
                      in
                      particular to any offering memorandum or business plan of the
                      Company, if
                      available concurrent with or as a part of this
                      Agreement;

                  

          

          

          

          
            	
                     

                  	
                    (m)Reliance
                      of representative:   the Subscriber, by reason of the
                      Subscriber’s knowledge and experience in financial and business matters,
                      is capable of evaluating the risks and merits of an investment
                      in the
                      Shares or, if the Subscriber is relying upon the investment
                      advice of a
                      representative who has advised the undersigned in connection
                      with this
                      investment (the “Representative”), the undersigned believes the
                      Representative to be sophisticated and competent in the area
                      of investment
                      advice and analysis and therefore capable of evaluating the
                      risks and
                      merits of an investment in the
                      Shares;

                  

          

          

          

          
            	
                     

                  	
                    (n)

                  	
                    Economic
                      risk:   the Subscriber has such knowledge and
                      experience in financial and business affairs as to be capable
                      of
                      evaluating the merits and risks of the Subscriber’s investment in and to
                      any of the Shares, and the Subscriber is able to bear the economic
                      risk of
                      a total loss of the Subscriber’s investment in and to any of the
                      Shares;

                  

          

          

          

          
            	
                     

                  	
                    (o)

                  	
                    Speculative
                      investment:   the Subscriber understands that an
                      investment in any of the Shares is a speculative investment
                      and that there
                      is no guarantee of success of the Company’s management’s
                      plans.  Management’s plans are an effort to apply present
                      knowledge and experience to project a future course of action
                      which is
                      hoped will result in financial success employing the Company’s assets and
                      with the present level of management’s skills and of those whom the
                      Company will need to attract (which cannot be
                      assured).  Additionally, all plans are capable of being
                      frustrated by new or unrecognized or unappreciated present
                      or future
                      circumstances which can typically not be accurately, or at
                      all,
                      predicted;

                  

          

           

           

           

          
            
              
              

            

            
              10

              
                

              

            

            
              
              

            

          

          
 

          

          
            	
                     

                  	
                    (p)

                  	
                    Address:   the
                      Subscriber is resident as set out on the last page of this
                      Agreement as
                      the “Subscriber’s Address”, and the address as set forth on the last page
                      of this Agreement is the true and correct address of the
                      Subscriber;

                  

          

          

          

          
            	
                     

                  	
                    (q)

                  	
                    Risk
                      and resale restriction:   the Subscriber is aware of
                      the risks and other characteristics of the Shares and of the
                      fact that the
                      Subscriber will not be able to resell the Shares except in
                      accordance with
                      the applicable securities legislation and regulatory
                      policy;

                  

          

          

          

          
            	
                     

                  	
                    (r)Representations
                      as to resale:   no person has made to the Subscriber
                      any written or oral
                      representations:

                  

          

          

          

          
            	
                     

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

                  

          

          

          

          
            	
                     

                  	
                    (ii)that
                      any person will refund the purchase of any of the
                      Shares;

                  

          

          

          

          
            	
                     

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

                  

          

          

          

          
            	
                     

                  	
                    (iv)that
                      any of the Shares will be listed and posted for trading on
                      any stock
                      exchange, over-the-counter or bulletin board market, or that
                      application
                      has been made to list and post any of the Shares for trading
                      on any stock
                      exchange, over-the-counter or bulletin board market;
                      and

                  

          

          

          

          
            	
                     

                  	
                    the
                      Subscriber will not resell the Shares except in accordance
                      with the
                      provisions of applicable securities legislation and stock exchange,
                      over-the-counter
                      and/or bulletin board market
                      rules;

                  

          

          

          

          
            	
                     

                  	
                    (s)

                  	
                    Reports
                      and undertakings:   if required by applicable
                      securities legislation, policy or order or by any securities
                      commission,
                      stock exchange or other regulatory authority, the
                      Subscriber will
                      execute and otherwise assist the Company in filing such reports,
                      undertakings and other documents as may be reasonably required
                      with
                      respect to the issue of the Shares;

                  

          

          

          

          
            	
                     

                  	
                    (t)

                  	
                    Resale
                      restrictions:   the Subscriber has been independently
                      advised as to the applicable hold period imposed in respect
                      of the Shares
                      by securities legislation in the jurisdiction in which the
                      Subscriber’s
                      resides and confirms that no representation has been made respecting
                      the
                      applicable hold periods for the Shares and is aware of the
                      risks and other
                      characteristics of the Shares and of the fact that the Subscriber
                      may not
                      be able to resell the Shares except in accordance with the
                      applicable
                      securities legislation and regulatory policy.  In this regard
                      the Subscriber agrees that if the Subscriber decides to offer,
                      sell or
                      otherwise transfer any of the Shares the Subscriber will not
                      offer, sell
                      or otherwise transfer any of such Shares, directly or indirectly,
                      unless:

                  

          

          

           

           

          
            
              
              

            

            
              11

              
                

              

            

            
              
              

            

          

           

          
 

          
            	
                     

                  	
                    (i)

                  	
                    the
                      sale is to the Company; or

                  

          

          

          

          
            	
                     

                  	
                    (ii)

                  	
                    the
                      sale is made outside the United States in compliance with the
                      requirements
                      of Rule 904 of Regulation S under the U.S. Act and in compliance
                      with
                      applicable state securities laws;
                      or

                  

          

          

          

          
            	
                     

                  	
                    (iii)

                  	
                    the
                      sale is made pursuant to an exemption from registration under
                      the U.S. Act
                      provided by Rule 144 thereunder and as set forth in Article
“3”
                      hereinabove, if applicable, and in compliance with applicable
                      state
                      securities laws; or

                  

          

          

          

          
            	
                     

                  	
                    (iv)

                  	
                    with
                      the prior written consent of the Company, the sale is made
                      pursuant to
                      another applicable exemption from registration under the U.S.
                      Act and in
                      compliance with applicable state securities
                      laws;

                  

          

          

          

          
            	
                     

                  	
                    (u)

                  	
                    No
                      prospectus filing:   the Subscriber acknowledges that
                      this is an offering made on a private basis without a prospectus
                      and that
                      no federal, state, provincial or other agency has made any
                      finding or
                      determination as to the merits of the investment nor made any
                      recommendation or endorsement of the Shares, and
                      that:

                  

          

          

          

          
            	
                     

                  	
                    (i)

                  	
                    the
                      Subscriber may be or is restricted from using most of the civil
                      remedies
                      available under applicable securities legislation;
                      and

                  

          

          

          

          
            	
                     

                  	
                    (ii)

                  	
                    the
                      Company is relieved from certain obligations that would otherwise
                      apply
                      under applicable securities
                      legislation;

                  

          

          

          

          
            	
                     

                  	
                    (v)

                  	
                    Confidentiality:   the
                      Subscriber understands that the Company’s business plan and this Agreement
                      are confidential.  Furthermore, the Subscriber has not
                      distributed such, or divulged the contents thereof, to anyone
                      other than
                      such legal or financial advisors as the Subscriber has deemed
                      desirable
                      for purposes of evaluating an investment in the Shares, and
                      the Subscriber
                      has not made any copies thereof except for the Subscriber’s own
                      records;

                  

          

          

          

          
            	
                     

                  	
                    (w)

                  	
                    Age
                      of majority:   the Subscriber, if an individual, has
                      attained the age of majority and is legally competent to execute
                      this
                      Agreement and to take all actions required pursuant
                      hereto;

                  

          

           

           

          
            
              
              

            

            
              12

              
                

              

            

            
              
              

            

          

          
 

          

          
            	
                     

                  	
                    (x)

                  	
                    Authorization
                      and formation of Subscriber:   the Subscriber, if a
                      corporation, partnership, trust or other form of business entity,
                      is
                      authorized and otherwise duly qualified to purchase and hold
                      the Shares,
                      and such entity has not been formed for the specific purpose
                      of acquiring
                      Shares in this issue.  If the Subscriber is one of the
                      aforementioned entities it hereby agrees that, upon request
                      of the
                      Company, it will supply the Company with any additional written
                      information that may be requested by the Company.  In addition,
                      the
                      entering into
                      of this Agreement and the transactions contemplated hereby
                      will not result
                      in the violation of any of the terms of and provisions of any
                      law
                      applicable to, or the constating documents, if a corporation,
                      of, the
                      Subscriber or of any agreement, written or oral, to which the
                      Subscriber
                      may be a party or by which the Subscriber may be
                      bound;

                  

          

          

          

          
            	
                     

                  	
                    (y)

                  	
                    Legal
                      obligation:   this Agreement has been duly and validly
                      authorized, executed and delivered by and constitutes a legal,
                      valid,
                      binding and enforceable obligation of the
                      Subscriber;

                  

          

          

          

          
            	
                     

                  	
                    (z)

                  	
                    Legal
                      and tax consequences.   the Subscriber acknowledges
                      that an investment in the securities of the Company may have
                      tax
                      consequences to the Subscriber under applicable law, which
                      the Subscriber
                      is solely responsible for determining, and the Subscriber also
                      acknowledges and agrees that the Subscriber is responsible
                      for obtaining
                      its own legal and tax advice;

                  

          

          

          

          
            	
                     

                  	
                    (aa)

                  	
                    Compliance
                      with applicable laws:   The Subscriber knows of no
                      reason (and is sufficiently knowledgeable to determine the
                      same or has
                      sought legal advice) why the delivery of this Agreement, the
                      acceptance of
                      it by the Company and the issuance of the Shares to the Subscriber
                      will
                      not comply with all applicable laws of the Subscriber’s jurisdiction of
                      residence or domicile, and all other applicable laws, and the
                      Subscriber
                      has no reason to believe that the Subscriber’s subscription hereby will
                      cause the Company to become subject to or required to comply
                      with any
                      disclosure, prospectus or reporting requirements or to be subject
                      to any
                      civil or regulatory review or proceeding.  In addition, the
                      Subscriber will comply with all applicable securities laws
                      and will assist
                      the Company in all reasonable manner to comply with all applicable
                      securities laws; and

                  

          

          

          

          
            	
                     

                  	
                    (ab)

                  	
                    Encumbrance
                      or transfer of Shares:   the Subscriber will not sell,
                      assign, gift, pledge or encumber in any manner whatsoever any
                      of the
                      Shares herein subscribed for without the prior written consent
                      of the
                      Company and in accordance with applicable securities
                      legislation.

                  

          

          

          

          5.5                      Reliance
            on Subscriber’s representations and warranties and
            indemnification.   The Subscriber understands that
            the Company will rely on the representations and warranties of the Subscriber
            herein in determining whether a sale of the Shares to the Subscriber
            is in
            compliance with federal and applicable state and provincial securities
            laws.  The Subscriber hereby agrees to indemnify the Company and its
            affiliates and hold the Company and its affiliates harmless from and
            against any
            and all liability, damage, cost or expense (including reasonable attorney’s
            fees) incurred on account of or arising out of: (i) any inaccuracy in
            the
            Subscriber’s acknowledgements, representations or warranties set forth in this
            Agreement; (ii) the disposition of any of the Shares which the Subscriber
            will
            receive, contrary to the Subscriber’s acknowledgements, representations or
            warranties in this Agreement or otherwise; (iii) any suit or proceeding
            based
            upon the claim that such acknowledgments, representations or warranties
            were
            inaccurate or misleading or otherwise cause for obtaining damages or
            redress
            from the Company or its affiliates; and (iv) the Subscriber’s failure to fulfill
            any or all of the Subscriber’s obligations herein.

          

          
            
              
              

            

            
              13

              
                

              

            

            
              
              

            

          

          

          5.6                      Change
            in Subscriber’s representations and
            warranties.   All of the information set forth
            hereinabove with respect to the Subscriber and including, without limitation,
            the acknowledgements, representations and warranties set forth hereinabove,
            is
            correct and complete as of the date hereof and, if there should be any
            material
            change in such information prior to the acceptance of this subscription
            by the
            Company, the Subscriber will immediately furnish the revised or corrected
            information to the Company.

          

          

          

          

          Article
            6

          COMPANY
            REPRESENTATIONS AND WARRANTIES

          

          

          6.1                      Representations
            and warranties of the Company.   The Company
            acknowledges, represents and warrants to and with the Subscriber
            that:

          

          

          
            	
                    (a)

                  	
                    Standing:   the
                      Company is a valid and subsisting corporation duly incorporated
                      and in
                      good standing under the laws of the jurisdiction in which it
                      is
                      incorporated, continued or
                      amalgamated;

                  

          

          

          

          
            	
                    (b)

                  	
                    Business:   the
                      Company is duly registered and licensed to carry on business
                      in the
                      jurisdictions in which it carries on business or owns property
                      where so
                      required by the laws of that
                      jurisdiction;

                  

          

          

          

          
            	
                    (c)

                  	
                    Reservation
                      of Shares:   the
                      Company will reserve or set aside sufficient shares in its
                      treasury to
                      issue to the Subscriber the Shares if the Company accepts all
                      or any part
                      of the within subscription;

                  

          

          

          

          
            	
                    (d)

                  	
                    Subscription
                      materials:   this
                      subscription Agreement and all other written or oral representations
                      made
                      by the Company to the Subscriber in connection with the within
                      subscription for Shares are and will be accurate in all material
                      respects
                      and do not and will not omit any fact, the omission of which
                      does or will
                      make such representations misleading or
                      incorrect;

                  

          

          

          

          
            	
                    (e)

                  	
                    Compliance
                      with securities legislation:   the
                      Company has complied and will comply fully with the requirements
                      of all
                      applicable corporate and securities laws and administrative
                      policies and
                      directions in relation to the issue and trading of its securities
                      and in
                      all matters relating to the within
                      subscription;

                  

          

          

          

          
            	
                    (f)

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

                  

          

           

           

          
            
              
              

            

            
              14

              
                

              

            

            
              
              

            

          

          
 

          

          
            	
                    (g)

                  	
                    Corporate
                      authority:   this Agreement has been or will be, when
                      accepted, duly authorized by all necessary corporate action
                      on the part of
                      the Company, and the Company has full corporate power and authority
                      to
                      undertake the within subscription for Shares;
                      and

                  

          

          

          

          
            	
                    (h)

                  	
                    Restrictions
                      on Shares:   no order ceasing, halting or suspending
                      trading in securities of the Company or prohibiting the sale
                      of such
                      securities has been issued to and is outstanding against the
                      Company or
                      any of its directors, officers or promoters or against any
                      other companies
                      that have common directors, officers or promoters, and no investigations
                      or proceedings for such purposes are pending or
                      threatened.

                  

          

          

          

          6.2                  
            Reliance
            on Company’s representations and warranties.   The
            Subscriber acknowledges that no information or representation concerning
            the
            Company has been provided to the Subscriber other than those contained
            in this
            Agreement, and that the Subscriber is relying entirely upon this
            Agreement.  Any other information given or statement made is given or
            made without liability or responsibility howsoever arising on the part
            of the
            Company.  No person acting as agent of the Company has any authority
            to make or give any representation or warranty whatsoever in relation
            to the
            Company or the Shares.  Any such information given or statement made
            is given or made without liability or responsibility howsoever arising
            on the
            part of the Company, and the Subscriber hereby releases the Company from
            any
            claims that may arise in respect thereof.

          

          

          Article
            7

          GENERAL
            PROVISIONS

          

          

          7.1                      Address
            for delivery.   Each notice, demand or other
            communication required or permitted to be given under this Agreement
            shall be in
            writing and shall be sent by delivery (electronic or otherwise) or prepaid
            registered mail deposited in a post office in Canada addressed to the
            Subscriber
            or the Company at the address specified in this Agreement.  The date
            of receipt of such notice, demand or other communication shall be the
            date of
            delivery thereof if delivered, or, if given by registered mail as aforesaid,
            shall be deemed conclusively to be the fifth day after the same shall
            have been
            so mailed, except in the case of interruption of postal services for
            any reason
            whatsoever, in which case the date of receipt shall be the date on which
            the
            notice, demand or other communication is actually received by the
            addressee.  Either party may at any time and from time to time notify
            the other party in writing of a change of address and the new address
            to which
            notice shall be given to it thereafter until further change.

          

          

          7.2                      Severability
            and construction.  Each Article, section, sub-section,
            paragraph, sub-paragraph, term and provision of this Agreement, and any
            portion
            thereof, shall be considered severable, and if, for any reason, any portion
            of
            this Agreement is determined to be invalid, contrary to or in conflict
            with any
            applicable present or future law, rule or regulation, that ruling shall
            not
            impair the operation of, or have any other effect upon, such other portions
            of
            this Agreement as may remain otherwise intelligible (all of which shall
            remain
            binding on the parties and continue to be given full force and agreement
            as of
            the date upon which the ruling becomes final).

          

           

           

          
            
              
              

            

            
              15

              
                

              

            

            
              
              

            

          

          
 

          7.3                     
            Gender
            and number.   This
            Agreement is to be read with all changes in gender or number as required
            by the
            context.

          

          

          7.4                     
            Time
            of
            the essence.   Time
            is of the essence of this Agreement.

          

          

          7.5                      Governing
            law.  This Agreement shall be governed by and construed
            in accordance with the laws of the State of Nevada, U.S.A., and the laws
            of the
            United States applicable therein.  Any dispute regarding matters as
            between the Subscriber and the Company, whether as a subscriber or shareholder
            and whether arising under this Agreement or pursuant to shareholder rights
            pursuant to the constating documents of the Company or applicable law,
            shall be
            adjudicated in the Courts of the State of Nevada, U.S.A. unless the Company
            shall permit otherwise.

          

          

          7.6                      Survival
            of representations and warranties.   The covenants,
            representations and warranties contained herein shall survive the closing
            of the
            transactions contemplated hereby.

          

          

          7.7                      Counterparts.   This
            Agreement may be signed by the parties hereto in as many counterparts
            as may be
            necessary, each of which so signed shall be deemed to be an original, and such
            counterparts together shall constitute one and the same instrument and
            notwithstanding the date of execution will be deemed to bear the execution
            date
            as set forth in this Agreement.  This Agreement may also be executed
            and exchanged by facsimile and such facsimile copies shall be valid and
            enforceable agreements.

          

          

          7.8                      Entire
            Agreement and amendments.   This Agreement
            constitutes the only agreement between the parties with respect to the
            subject
            matter hereof and shall supersede any and all prior negotiations and
            understandings.  There are no collateral agreements or understandings
            hereto and this Agreement, and the documents contemplated herein, constitutes
            the totality of the parties’ agreement.  This Agreement may be amended
            or modified in any respect by written instrument only.

          

          

          7.9                      Successors
            and assigns.   The terms and provisions of this
            Agreement shall be binding upon and enure to the benefit of the Subscriber,
            the
            Company and their respective successors and lawfully permitted assigns;
            provided
            that, except as herein provided, this Agreement shall not be assignable
            by any
            party without the written consent of the other.  The benefit and
            obligations of this Agreement, insofar as they extend to or affect the
            Subscriber, shall pass with any assignment or transfer of any of the
            Shares in
            accordance with the terms of this Agreement.

          

          

          7.10                      Effective
            date.  This Agreement shall take effect upon the date of
            acceptance by the Company.

          

          

          
            
              
              

            

            
              16

              
                

              

            

            
              
              

            

          

          IN
            WITNESS
            WHEREOF the Parties hereto have hereunto set their respective hands
            and seals in the presence of their duly authorized signatories effective
            as at
            the date first above written.

          Subscription
            by Subscriber:

          

          

          Dated
            at
            _Vancouver, B.C._, on this 1st day of July, 2007.

          

          

          OXFORD
            CAPITAL SERVICES INC.

          502
            East John Street Carson City NV, 89706

          Name
            & Address of Subscriber

          

          
            	 	 	 	 	 
	
                    By:

                  	 	 	
                     

                  	 
	
                    Official
                      Capacity or Title - please print

                  	 	 	
                     

                  	 
	
                     

                  	 	 	
                     

                  	 

          
            	 	 	 	 	 
	
                     

                  	 	 	
                     

                  	 
	
                    Authorized
                      Signature    

                  	 	 	
                    Telephone
                      Number

                  	 
	
                     

                  	 	 	
                     

                  	 

          
            	 	 	 	 	 
	
                     

                  	 	 	
                     

                  	 
	
                    signature
                      appears above if different than

                  	 	 	
                    Facsimile
                      Number

                  	 
	
                     the
                      name of the Subscriber printed above

                  	 	 	
                     

                  	 
	 Please
                    print name of individual whose	 	 	 	 

                                                                       

          

          

          

                                                                                              

          

          Acceptance
            by the Company:

          

          

          DENARII
            RESOURCES
            INC hereby accepts the above subscription by the Subscriber
            on this
            __1___ day of ___July_, 2007.

          

          

          The
            CORPORATE SEAL of)

          DENARII
            RESOURCES INC.,)

           

           

           

          
            	 the
                    Company herein,   	 )	 	 
	 was
                    hereunto affixed in the presence of:	 )	 	 
	 	 )	 	 
	 	 	 	 
	 	 )	 	 
	CHRIS
                    LORI	 	 	 

          

           

          

          President
            and Director__________

          

          

        

      

       

       

      17

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