Document:

THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
        SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES MAY
        BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY,
        (B)
        OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER
        THE
        SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF
        AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT
        TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION THAT DOES
        NOT
        REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES
        LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN
        OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY
        SATISFACTORY TO THE COMPANY. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES
        MAY
        NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S. SECURITIES ACT.

       

      9%
        CONVERTIBLE PROMISSORY NOTE

      

      UFOOD
        FRANCHISE COMPANY

      (formerly
        Axxent Media Corporation)

       

      DUE
        MARCH ___, 2008

      

      

      
        	
                Original
                  Issue Date _______________, 2007

              	
                US$________

              

      

      

      

      This
        Convertible Promissory Note is one of a series of duly authorized and issued
        convertible promissory notes of UFood Franchise Company (f/k/a Axxent Media
        Corporation), a Nevada corporation (the “Company”),
        designated its 9% Convertible Promissory Notes due March ___, 2008 (the
“Note”),
        issued to ____________________ (together
        with its permitted successors and assigns, the “Holder”)
        in
        accordance with exemptions from registration
        under
        the Securities Act of 1933, as amended (the “Securities
        Act”),
        pursuant to a Securities Purchase Agreement, dated September ___, 2007 (the
        “Securities
        Purchase Agreement”)
        between the Company and the Holder. Capitalized terms not otherwise defined
        herein shall have the meanings ascribed to them in the Securities Purchase
        Agreement.

      

      Article
        I. 

      

      Section
        1.01 Principal
        and Interest.
        For
        value received, the Company hereby promises to pay to the order of the Holder,
        in lawful money of the United States of America and in immediately available
        funds the principal sum of ____________________ on the earlier of (i) March
        ___,
        2008 (the “Maturity
        Date”)
        or
        (ii) an Event of Default (as defined in Section 3.01).

      

      (a) Interest
        shall accrue on the unpaid principal balance of the Note at the rate of nine
        percent (9%) per year (compounded monthly) commencing from the Original Issue
        Date until the Maturity Date. Interest shall be calculated on the basis of
        a
        360-day year and actual calendar days elapsed.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b) On
        the
        Maturity Date, the entire unpaid principal amount and all accrued and unpaid
        interest shall be paid to the Holder, unless this Note is converted in
        accordance with Section 1.02 herein.

      

      (c) Except
        as
        otherwise set forth in this Note, the Company may not prepay any portion
        of the
        principal amount of this Note without the prior written consent of the
        Holder.

      

      Section
        1.02 Conversion.
        

      

      (a) Optional
        Conversion.
        From
        and after January ___, 2008, the Holder shall be entitled, at its option,
        to
        convert, at any time and from time to time, until payment in full of this
        Note,
        all or any part of the principal amount of the Note, plus accrued and unpaid
        interest thereon, into units (“Units”)
        of the
        Company’s securities, at a price (the “Conversion
        Price”)
        of
        $0.50 per Unit. Each Unit shall consist of one share (each, a “Conversion
        Share”)
        of the
        Company’s common stock, par value $0.001 per share (the “Common
        Stock”),
        and
        one half of a common stock purchase warrant (the “Warrants”).
        Each
        whole Warrant shall entitle the holder to purchase one share of Common Stock
        (the “Warrant
        Shares”)
        at an
        exercise price (the “Exercise
        Price”)
        of
        $1.25 per share, and shall be exercisable for a period of five years commencing
        on the date of issuance. No fraction of shares or scrip representing fractions
        of shares will be issued on conversion, but the number of shares issuable
        shall
        be rounded to the nearest whole share. The number of Units issuable upon
        a
        conversion hereunder shall be determined by the quotient obtained by dividing
        (x) the outstanding principal amount of this Note, plus accrued and unpaid
        interest thereon, to be converted as set forth in the applicable Conversion
        Notice by (y) the Conversion Price. To convert this Note, the Holder hereof
        shall deliver written notice thereof, substantially in the form of
        Exhibit A to this Note, with appropriate insertions (the “Conversion
        Notice”),
        to
        the Company at its address as set forth herein. The date upon which the
        conversion shall be effective (the “Conversion
        Date”)
        shall
        be deemed to be the date set forth in the Conversion Notice. Except as otherwise
        provided herein, the Company shall not have the right to object to the
        conversion or the calculation of the applicable conversion price, absent
        manifest error. Any conversion of any portion of the Note to Units shall
        be
        deemed to be a pre-payment of principal plus accrued and unpaid interest,
        without any penalty, and shall be credited against any future payments of
        principal and interest in the order that such payments become due and
        payable.

      

      (b) Mandatory
        Conversion.
        Simultaneously with the closing of (i) the proposed merger (the “Merger”)
        among
        the Company, KnowFat Franchise Company, Inc. (together with its subsidiaries,
        “UFood”)
        and a
        wholly-owned subsidiary of the Company and (ii) a private placement offering
        (the “PPO”)
        by the
        Company of Units, this Note will automatically convert as to all unpaid
        principal, plus accrued interest, if any, into Units at the Conversion Price.
        The Company shall afford the Holder the opportunity to become a party to
        all
        agreements and instruments executed by the investors in the PPO, including,
        but
        not limited to, a registration rights agreement (the “Registration Rights
        Agreement”). The Registration Rights Agreement shall, among other things,
        register the Conversion Shares (and provide for “piggyback” registration of the
        Warrant Shares) under the Securities Act.

      

      Section
        1.03 Reservation
        of Common Stock.
        As set
        forth in Section 4(e) of the Securities Purchase Agreement, the Company shall
        reserve and keep available out of its authorized but unissued shares of Common
        Stock, solely for the purpose of effecting the conversion of this Note and
        the
        exercise of the Warrants, that number of shares of Common Stock equal to
        the sum
        of (i) the number of shares of Common Stock into which the Note is convertible
        from time to time based upon the Conversion Price, plus (ii) the number of
        shares of Common Stock for which the Warrants are exercisable from time to
        time
        based upon the Exercise Price. 

      

      
        
          
          

        

        
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      Section
        1.04 Absolute
        Obligation/Ranking.
        Except
        as expressly provided herein, no provision of this Note shall alter or impair
        the obligation of the Company, which is absolute and unconditional, to pay
        the
        principal of, interest and liquidated damages (if any) on, this Note at the
        time, place, and rate, and in the coin or currency, herein prescribed. This
        Note
        is a direct debt obligation of the Company. This Note ranks pari passu
        with all
        other Notes now or hereinafter issued pursuant to the Securities Purchase
        Agreement.

      

      Section
        1.05 Paying
        Agent and Registrar.
        Initially, the Company will act as paying agent and registrar. The Company
        may
        change any paying agent, registrar, or Company-registrar by giving the Holder
        not less than ten (10) business days’ written notice of its election to do
        so, specifying the name, address, telephone number and facsimile number of
        the
        paying agent or registrar. The Company may act in any such
        capacity.

      

      Section
        1.06 Different
        Denominations.
        This
        Note is exchangeable for an equal aggregate principal amount of Notes of
        different authorized denominations, as requested by the Holder surrendering
        the
        same. No service charge will be made for such registration of transfer or
        exchange.

      

      Section
        1.07 Investment
        Representations.
        This
        Note has been issued subject to certain investment representations of the
        original Holder set forth in the Securities Purchase Agreement and may be
        transferred or exchanged only in compliance with the Securities Purchase
        Agreement and applicable federal and state securities laws and
        regulations.

      

      Section
        1.08 Reliance
        on Note Register.
        Prior
        to due presentment to the Company for transfer or conversion of this Note,
        the
        Company and any agent of the Company may treat the person in whose name this
        Note is duly registered on the Note Register as the owner hereof for the
        purpose
        of receiving payment as herein provided and for all other purposes, whether
        or
        not this Note is overdue, and neither the Company nor any such agent shall
        be
        affected by notice to the contrary.

      

      Section
        1.09 In
        addition to the rights and remedies given it by this Note, the Holder shall
        have
        all those rights and remedies allowed by applicable laws. The rights and
        remedies of the Holder are cumulative and recourse to one or more right or
        remedy shall not constitute a waiver of the others. 

      

      Article
        II. 

      

      Section
        2.01 Amendments
        and Waiver of Default.
        The
        Note may not be amended without the consent of the Holder. Notwithstanding
        the
        above, without the consent of the Holder, the Note may be amended to cure
        any
        ambiguity, defect or inconsistency or to make any change that does not adversely
        affect the rights of the Holder.

      

      
        
          
          

        

        
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      Article
        III. 

      

      Section
        3.01 Events
        of Default.
        Each of
        the following events shall constitute a default under this Note (each an
        “Event
        of Default”):
        

      

      (a) failure
        by the Company to pay principal amount or interest due hereunder within five
        (5)
        days of the date such payment is due; 

      

      (b) failure
        by the Company’s transfer agent to issue Common Stock to the Holder within
        five (5) days of the Company’s receipt of the attached Conversion Notice
        from Holder in accordance with the Securities Purchase Agreement; 

      

      (c) failure
        by the Company for five (5) days after notice to it to comply with any of
        its
        other agreements in the Note; 

      

      (d) the
        Company shall: (1) make a general assignment for the benefit of its
        creditors; (2) apply for or consent to the appointment of a receiver,
        trustee, assignee, custodian, sequestrator, liquidator or similar official
        for
        itself or any of its assets and properties; (3) commence a voluntary case
        for relief as a debtor under the United States Bankruptcy Code; (4) file
        with or otherwise submit to any governmental authority any petition, answer
        or
        other document seeking: (A) reorganization, (B) an arrangement with
        creditors or (C) to take advantage of any other present or future
        applicable law respecting bankruptcy, reorganization, insolvency, readjustment
        of debts, relief of debtors, dissolution or liquidation; (5) file or
        otherwise submit any answer or other document admitting or failing to contest
        the material allegations of a petition or other document filed or otherwise
        submitted against it in any proceeding under any such applicable law, or
        (6) be adjudicated a bankrupt or insolvent by a court of competent
        jurisdiction;

      

      (e) any
        case,
        proceeding or other action shall be commenced against the Company for the
        purpose of effecting, or an order, judgment or decree shall be entered by
        any
        court of competent jurisdiction approving (in whole or in part) anything
        specified in Section 3.01(d) hereof, or any receiver, trustee, assignee,
        custodian, sequestrator, liquidator or other official shall be appointed
        with
        respect to the Company, or shall be appointed to take or shall otherwise
        acquire
        possession or control of all or a substantial part of the assets and properties
        of the Company, and any of the foregoing shall continue unstayed and in effect
        for any period of sixty (60) days;

      

      (f) any
        material obligation of the Company for the payment of borrowed money is not
        paid
        when due or within any applicable grace period, or such obligation becomes
        or is
        declared to be due and payable before the expressed maturity of the obligation,
        or there shall have occurred an event that, with the giving of notice or
        lapse
        of time, or both, would cause any such obligation to become, or allow any
        such
        obligation to be declared to be, due and payable before the expressed maturity
        date of the obligation;

      

      (g) a
        breach
        by the Company of any material contract that would have a Material Adverse
        Effect (as defined in the Securities Purchase Agreement);

      

      
        
          
          

        

        
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      (h) any
        event
        of default of the Company under any agreement, note, mortgage, security
        agreement or other instrument evidencing or securing indebtedness that ranks
        senior in priority to, or pari passu with, the obligations under this Note
        and
        the Securities Purchase Agreement; 

      

      (i) any
        event
        of default of UFood has occurred with respect to the Bridge Loan;

      

      (j) the
        Common Stock shall not be eligible for quotation on or quoted for trading
        on the
        OTC Bulletin Board and shall not again be eligible for and quoted for trading
        thereon within five (5) trading days; 

      

      (k) any
        material breach by the Company of any of its representations or warranties
        under
        the Securities Purchase Agreement; or

      

      (l) any
        default, whether in whole or in part, shall occur in the due observance or
        performance of any obligations or other covenants, terms or provisions to
        be
        performed under this Note or the Securities Purchase Agreement which is not
        cured by the Company within five (5) days after receipt of written notice
        thereof. 

      

      Section
        3.02 If
        any
        Event of Default occurs, the full principal amount of this Note, together
        with
        interest and other amounts owing in respect thereof, to the date of acceleration
        shall become, at the Holder’s election, immediately due and payable in cash.
        Commencing five (5) days after the occurrence of any Event of Default that
        results in the eventual acceleration of this Note, the interest rate on this
        Note shall accrue at the rate of 15% per annum, or such lower maximum amount
        of
        interest permitted to be charged under applicable law. All Notes for which
        the
        full amount hereunder shall have been paid in accordance herewith shall promptly
        be surrendered to or as directed by the Company. The Holder need not provide
        and
        the Company hereby waives any presentment, demand, protest or other notice
        of
        any kind, and the Holder may immediately and without expiration of any grace
        period enforce any and all of its rights and remedies hereunder and all other
        remedies available to it under applicable law. Such declaration may be rescinded
        and annulled by the Holder at any time prior to payment hereunder and the
        Holder
        shall have all rights as a Note holder until such time, if any, as the full
        payment under this Section shall have been received by it. No such rescission
        or
        annulment shall affect any subsequent Event of Default or impair any right
        consequent thereon.

      

      Article
        IV. 

      

      Section
        4.01 Negative
        Covenants.
        So long
        as this Note shall remain in effect and until any outstanding principal and
        all
        accrued interest thereon and all fees and all other expenses or amounts payable
        under this Note and the Securities Purchase Agreement have been paid in full,
        unless all Holders shall otherwise consent in writing, the Company shall
        not:

      

      (a) Senior
        or Pari Passu Indebtedness.
        Incur,
        create, assume, guaranty or permit to exist any indebtedness that ranks senior
        in priority to, or pari passu with, the obligations under this Note and the
        Securities Purchase Agreement, except for indebtedness existing or contemplated
        on the date hereof and set forth in Schedule A attached hereto and only to
        the
        extent that such indebtedness ranks senior in priority to or pari passu with
        the
        obligations under this Note and the Securities Purchase Agreement on the
        Original Issue Date.

      

      
        
          
          

        

        
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      (b) Liens.
        Create,
        incur, assume or permit to exist any lien on any property or assets (including
        stock or other securities of the Company) now owned or hereafter acquired
        by it
        or on any income or revenues or rights in respect of any thereof, except:
        

      

      (i) liens
        on
        property or assets of the Company existing on the date hereof and set forth
        in
        Schedule B attached hereto, provided that such liens shall secure only those
        obligations which they secure on the date hereof;

      

      (ii) any
        lien
        created under this Note or the Securities Purchase Agreement;

      

      (iii) any
        lien
        existing on any property or asset prior to the acquisition thereof by the
        Company, provided that 

      

      1) such
        lien
        is not created in contemplation of or in connection with such acquisition
        and

      

      2) such
        lien
        does not apply to any other property or assets of the Company;

      

      (iv) liens
        for
        taxes, assessments and governmental charges;

      

      (v) carriers’,
        warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s or other like
        liens arising in the ordinary course of business and securing obligations
        that
        are not due and payable;

      

      (vi) pledges
        and deposits made in the ordinary course of business in compliance, with
        workmen’s compensation, unemployment insurance and other social security laws or
        regulations;

      

      (vii) deposits
        to secure the performance of bids, trade contracts (other than for
        indebtedness), leases, statutory obligations, surety and appeal bonds,
        performance bonds and other obligations of a like nature incurred in the
        ordinary course of business;

      

      (viii) zoning
        restrictions, easements, licenses, covenants, conditions, rights-of-way,
        restrictions on use of real property and other similar encumbrances incurred
        in
        the ordinary course of business and minor irregularities of title that, in
        the
        aggregate, are not substantial in amount and do not materially detract from
        the
        value of the property subject thereto or interfere with the ordinary conduct
        of
        the business of the Company;

      

      (ix) purchase
        money security interests in real property, improvements thereto or equipment
        hereafter acquired (or, in the case of improvements, constructed) by the
        Company, provided that 

      

      1) such
        security interests secure indebtedness permitted by this Note, 

      

      2) such
        security interests are incurred, and the indebtedness secured thereby is
        created, within 90 days after such acquisition (or construction),

      

      
        
          
          

        

        
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      3) the
        indebtedness secured thereby does not exceed 85% of the lesser of the cost
        or
        the fair market value of such real property, improvements or equipment at
        the
        time of such acquisition (or construction) and 

      

      4) such
        security interests do not apply to any other property or assets of the
        Company;

      

      (x) liens
        arising out of judgments or awards (other than any judgment that constitutes
        an
        Event of Default hereunder) in respect of which the Company shall in good
        faith
        be prosecuting an appeal or proceedings for review and in respect of which
        it
        shall have secured a subsisting stay of execution pending such appeal or
        proceedings for review, provided the Company shall have set aside on its
        books
        adequate reserves with respect to such judgment or award; and

      

      (xi) deposits,
        liens or pledges to secure payments of workmen’s compensation and other
        payments, public liability, unemployment and other insurance, old-age pensions
        or other social security obligations, or the performance of bids, tenders,
        leases, contracts (other than contracts for the payment of money), public
        or
        statutory obligations, surety, stay or appeal bonds, or other similar
        obligations arising in the ordinary course of business.

      

      (c) Dividends
        and Distributions.
        In the
        case of the Company, declare or pay, directly or indirectly, any dividend
        or
        make any other distribution (by reduction of capital or otherwise), whether
        in
        cash, property, securities or a combination thereof, with respect to any
        shares
        of its capital stock or directly or indirectly redeem, purchase, retire or
        otherwise acquire for value any shares of any class of its capital stock
        or set
        aside any amount for any such purpose; provided, however, that the Company
        may

      

      (i) declare
        and pay dividends consisting entirely of its common stock, 

      

      (ii) repurchase
        shares of its capital stock from its employees in connection with the
        termination of such employees and 

      

      (iii) make
        distributions consisting entirely of its common stock in connection with
        stock
        splits of its capital stock.

      

      (d) Limitation
        on Certain Payments and Prepayments.
        

      

      (i) Pay
        in
        cash any amount in respect of any indebtedness or preferred stock that may
        at
        the obligor’s option be paid in kind or in other securities;

      

      (ii) Optionally
        prepay, repurchase or redeem or otherwise defease or segregate funds with
        respect to any indebtedness of the Company, other than for senior indebtedness
        existing on the date hereof and set forth in Schedule A attached hereto,
        indebtedness under this Note or the Securities Purchase Agreement.

      

      
        
          
          

        

        
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      Article
        V. 

      

      Section
        5.01 Re-issuance
        of Note.
        When
        the Holder elects to convert a part of the Note, then the Company shall reissue
        a new Note in the same form as this Note to reflect the new principal amount
        and
        the Holder shall return the Note to the Company for cancellation.

      

      Article
        VI. 

      

      Section
        6.01 Anti-dilution.
        Adjustment
        of Conversion Price.
        The
        Conversion Price shall be adjusted from time to time as follows:

      

      (a) Adjustment
        of Conversion Price and Number of Shares upon Issuance of Common
        Stock.
        If at
        any time after the Original Issue Date, the Company issues or sells, or is
        deemed to have issued or sold, any shares of Common Stock (other than (i)
        Excluded Securities (as defined herein) and (ii) shares of Common Stock which
        are issued or deemed to have been issued by the Company in connection with
        an
        Approved Stock Plan (as defined herein) or upon issuance, exercise or conversion
        of the Other Securities (as defined herein)) for a consideration per share
        less
        than a price (the “Applicable
        Price”)
        equal
        to the Conversion Price in effect immediately prior to such issuance or sale,
        then immediately after such issue or sale the Conversion Price then in effect
        shall be reduced to an amount equal to such consideration per share, provided
        that in no event shall the Conversion Price be reduced below $0.001.

      

      (b) Effect
        on Conversion Price of Certain Events.
        For
        purposes of determining the adjusted Conversion Price under Section 6.01(a)
        above, the following shall be applicable:

      

      (i) Issuance
        of Options.
        If
        after the date hereof, the Company in any manner grants any rights, warrants
        or
        options to subscribe for or purchase Common Stock or convertible securities
        (“Options”),
        other
        than Excluded Securities or Other Securities issued or deemed to have been
        issued in connection with any Approved Stock Plan, and the lowest price per
        share for which one share of Common Stock is issuable upon the exercise of
        any
        such Option or upon conversion or exchange of any convertible securities
        issuable upon exercise of any such Option is less than the Conversion Price
        then
        in effect, then such share of Common Stock shall be deemed to be outstanding
        and
        to have been issued and sold by the Company at the time of the granting or
        sale
        of such Option for such price per share. For purposes of this Section
        6.01(b)(i), the lowest price per share for which one share of Common Stock
        is
        issuable upon exercise of such Options or upon conversion or exchange of
        such
        convertible securities shall be equal to the sum of the lowest amounts of
        consideration (if any) received or receivable by the Company with respect
        to any
        one share of Common Stock upon the granting or sale of the Option, upon exercise
        of the Option or upon conversion or exchange of any other convertible security
        other than this Note issuable upon exercise of such Option. No further
        adjustment of the Conversion Price shall be made upon the actual issuance
        of
        such Common Stock or of such convertible securities upon the exercise of
        such
        Options or upon the actual issuance of such Common Stock upon conversion
        or
        exchange of such convertible securities.

      

      
        
          
          

        

        
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      (ii) Issuance
        of Convertible Securities.
        If the
        Company in any manner issues or sells any convertible securities after the
        Original Issue Date, other than Excluded Securities or Other Securities issued
        or deemed to have been issued in connection with an Approved Stock Plan,
        and the
        lowest price per share for which one share of Common Stock is issuable upon
        the
        conversion or exchange thereof is less than the Conversion Price then in
        effect,
        then such share of Common Stock shall be deemed to be outstanding and to
        have
        been issued and sold by the Company at the time of the issuance or sale of
        such
        convertible securities for such price per share. For the purposes of this
        Section 6.01(b)(ii), the lowest price per share for which one share of
        Common Stock is issuable upon such conversion or exchange shall be equal
        to the
        sum of the lowest amounts of consideration (if any) received or receivable
        by
        the Company with respect to one share of Common Stock upon the issuance or
        sale
        of the convertible security and upon conversion or exchange of such convertible
        security. No further adjustment of the Conversion Price shall be made upon
        the
        actual issuance of such Common Stock upon conversion or exchange of such
        convertible securities, and if any such issue or sale of such convertible
        securities is made upon exercise of any Options for which adjustment of the
        Conversion Price had been or are to be made pursuant to other provisions
        of this
        Section 6.01(b), no further adjustment of the Conversion Price shall be made
        by
        reason of such issue or sale. 

      

      (iii) Change
        in Option Price or Rate of Conversion.
        If the
        purchase price provided for in any Options, the additional consideration,
        if
        any, payable upon the issue, conversion or exchange of any convertible
        securities, or the rate at which any convertible securities are convertible
        into
        or exchangeable for Common Stock changes at any time, the Conversion Price
        in
        effect at the time of such change shall be adjusted to the Conversion Price
        which would have been in effect at such time had such Options or convertible
        securities provided for such changed purchase price, additional consideration
        or
        changed conversion rate, as the case may be, at the time initially granted,
        issued or sold and the number of shares of Common Stock issuable upon conversion
        of this Note shall be correspondingly readjusted. For purposes of this Section
        6.01(b)(iii), if the terms of any Option or convertible security that was
        outstanding as of the Original Issue Date are changed in the manner described
        in
        the immediately preceding sentence, then such Option or convertible security
        and
        the Common Stock deemed issuable upon exercise, conversion or exchange thereof
        shall be deemed to have been issued as of the date of such change. No adjustment
        pursuant to this Section 6.01(b) shall be made if such adjustment would result
        in an increase of the Conversion Price then in effect. 

      

      (c) Effect
        on Conversion Price of Certain Events.
        For
        purposes of determining the adjusted Conversion Price under
        Sections 6.01(a) and 6.01(b), the following shall be applicable:

      

      (i) Calculation
        of Consideration Received.
        If any
        Common Stock, Options or convertible securities are issued or sold or deemed
        to
        have been issued or sold for cash, the consideration received therefore will
        be
        deemed to be the net amount received by the Company therefore. If any Common
        Stock, Options or convertible securities are issued or sold for a consideration
        other than cash, the amount of such consideration received by the Company
        will
        be the fair value of such consideration, except where such consideration
        consists of marketable securities, in which case the amount of consideration
        received by the Company will be the market price of such securities on the
        date
        of receipt of such securities (measured by the closing sale price of such
        securities on the Over-the-Counter Bulletin Board or its principal trading
        market). If any Common Stock, Options or convertible securities are issued
        to
        the owners of the non-surviving entity in connection with any merger in which
        the Company is the surviving entity, the amount of consideration therefore
        will
        be deemed to be the fair value of such portion of the net assets and business
        of
        the non-surviving entity as is attributable to such Common Stock, Options
        or
        convertible securities, as the case may be. The fair value of any consideration
        other than cash or securities will be determined jointly by the Company and
        the
        holders of the principal amount of the Notes then outstanding. If such parties
        are unable to reach agreement within ten (10) days after the occurrence of
        an event requiring valuation (the “Valuation
        Event”),
        the
        fair value of such consideration will be determined within five (5) Business
        Days after the tenth (10th)
        day
        following the Valuation Event by an independent, reputable appraiser jointly
        selected by the Company and the holders of the principal amount of the Notes
        then outstanding. The determination of such appraiser shall be final and
        binding
        upon all parties and the fees and expenses of such appraiser shall be borne
        by
        the Company.

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (ii) Integrated
        Transactions.
        In case
        any Option is issued in connection with the issue or sale of other securities
        of
        the Company, together comprising one integrated transaction in which no specific
        consideration is allocated to such Options by the parties thereto, the Options
        will be deemed to have been issued for a consideration of $0.001. 

      

      (iii) Treasury
        Shares.
        The
        number of shares of Common Stock outstanding at any given time does not include
        shares owned or held by or for the account of the Company, and the disposition
        of any shares so owned or held will be considered an issue or sale of Common
        Stock. 

      

      (iv) Record
        Date.
        If the
        Company takes a record of the holders of Common Stock for the purpose of
        entitling them (1) to receive a dividend or other distribution payable in
        Common Stock, Options or in convertible securities or (2) to subscribe for
        or purchase Common Stock, Options or convertible securities, then such record
        date will be deemed to be the date of the issue or sale of the shares of
        Common
        Stock deemed to have been issued or sold upon the declaration of such dividend
        or the making of such other distribution or the date of the granting of such
        right of subscription or purchase, as the case may be. 

      

      (d) Adjustment
        of Conversion Price upon Subdivision or Combination of Common
        Stock.
        If the
        Company at any time after the date of issuance of this Note subdivides (by
        any
        stock split, stock dividend, recapitalization or otherwise) one or more classes
        of its outstanding shares of Common Stock into a greater number of shares,
        the
        Conversion Price or Future Price in effect immediately prior to such subdivision
        will be proportionately reduced. If the Company at any time after the date
        of
        issuance of this Note combines (by combination, reverse stock split or
        otherwise) one or more classes of its outstanding shares of Common Stock
        into a
        smaller number of shares, the Conversion Price or Future Price in effect
        immediately prior to such combination will be proportionately increased.
        Any
        adjustment under this Section 6.01(d) shall become effective at the close
        of business on the date the subdivision or combination becomes effective.
        

      

      (e) Distribution
        of Assets.
        If the
        Company shall declare or make any dividend or other distribution of its assets
        (or rights to acquire its assets) to holders of Common Stock, by way of return
        of capital or otherwise (including, without limitation, any distribution
        of
        cash, stock or other securities, property or options by way of a dividend,
        spin
        off, reclassification, corporate rearrangement or other similar transaction)
        (a
“Distribution”),
        at
        any time after the issuance of this Note, then, in each such case the Conversion
        Price in effect immediately prior to the close of business on the record
        date
        fixed for the determination of holders of Common Stock entitled to receive
        the
        Distribution shall be reduced, effective as of the close of business on such
        record date, to a price determined by multiplying such Conversion Price by
        a
        fraction of which (A) the numerator shall be the closing bid price of the
        Common
        Stock on the trading day immediately preceding such record date minus the
        value
        of the Distribution (as determined in good faith by the Company’s Board of
        Directors) applicable to one share of Common Stock, and (B) the denominator
        shall be the closing bid price of the Common Stock on the trading day
        immediately preceding such record date. Notwithstanding the foregoing, the
        Distribution in the form of a stock dividend (the “Forward
        Split”)
        to be
        effected prior to, and in connection with, the Merger shall in no event cause
        an
        adjustment to the Conversion Price, nor shall any similar adjustment to the
        capital structure of the Company effected in connection with the Merger and
        the
        PPO.

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (f) Certain
        Events.
        If any
        event occurs of the type contemplated by the provisions of this
        Section 6.01 but not expressly provided for by such provisions (including,
        without limitation, the granting of stock appreciation rights, phantom stock
        rights or other rights with equity features but excluding the Recapitalization,
        as such term is defined in the Securities Purchase Agreement), then the
        Company’s Board of Directors will make an appropriate adjustment in the
        Conversion Price so as to protect the rights of the holders of the Note;
        provided, except as set forth in Section 6.01(d), that no such adjustment
        pursuant to this Section 6.01(f) will increase the Conversion Price as otherwise
        determined pursuant to this Section 6.01.

      

      (i) Notices.

      

      1) Immediately
        upon any adjustment of the Conversion Price, the Company will give written
        notice thereof to the holder of this Note, setting forth in reasonable detail,
        and certifying, the calculation of such adjustment.

      

      2) The
        Company will give written notice to the holder of this Note at least ten
        (10)
        days prior to the date on which the Company closes its books or takes a record
        (A) with respect to any dividend or distribution upon the Common Stock,
        (B) with respect to any pro rata subscription offer to holders of Common
        Stock or (C) for determining rights to vote with respect to any dissolution
        or liquidation, provided that such information shall be made known to the
        public
        prior to or in conjunction with such notice being provided to such
        holder.

      

      (ii) Definitions.

      

      1) “Approved
        Stock Plan”
means
        any employee benefit plan approved by the Board of Directors of the Company,
        or
        any successor thereto, pursuant to which the Company’s securities may be issued
        to any employee, officer or director for services provided to the
        Company.

      

      2) “Excluded
        Securities”
means
        any of the following: (a) any issuance by the Company of securities in
        connection with a strategic partnership or a joint venture (the primary purpose
        of which is not to raise equity capital), (b) any issuance by the Company
        of
        securities as consideration for a merger or consolidation or the acquisition
        of
        a business, product, license, or other assets of another person or entity
        and
        (c) options to purchase shares of Common Stock, or other stock based awards
        or
        grants under an Approved Stock Plan.

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      3) “Other
        Securities”
means
        (i) those options and warrants of the Company issued prior to, and
        outstanding on, the Original Issue Date, (ii) the Units, including the Common
        Stock and Warrants included in the Units, issued in the PPO, (ii) the shares
        of
        Common Stock issuable on exercise of such options and warrants, provided
        such
        options and warrants are not amended after the Original Issue Date, (iii)
        the
        shares of Common Stock issued in connection with the Forward Split and
        (iv) the shares of Common Stock issuable upon exercise of the Warrants or
        conversion of this Note.

      

      (g) Nothing
        in this Section 6.01 shall be deemed to authorize the issuance of any securities
        by the Company in violation of Section 6.02.

      

      Article
        VII. 

      

      Section
        7.01 Notice.
        Notices
        regarding this Note shall be sent to the parties at the following addresses,
        unless a party notifies the other parties, in writing, of a change of
        address:

       

      
        	
                If
                  to the Company, to:

              	
                UFood
                  Franchise Company

              
	 	
                12516-52A
                  Avenue

              
	 	
                Surrey,
                  British Columbia V3X 3K3 Canada

              
	 	
                Attention:
                  Brent Hahn, President

              
	 	
                Telephone:
                  (604) 341-8993

              
	 	 
	
                With
                  a copy to:

              	
                Gottbetter
                  & Partners, LLP

              
	 	
                488
                  Madison Avenue, 12th
                  Floor

              
	 	
                New
                  York, New York 10022

              
	 	
                Attention:
                  Adam S. Gottbetter, Esq.

              
	 	
                Telephone:
                  212-400-6900

              
	 	
                Facsimile:
                  212-400-6901

              
	 	 
	
                If
                  to the Holder:

              	
                At
                  the address set forth in the Securities Purchase
                  Agreement

              

      

      

      Section
        7.02 Governing
        Law.
        All
        questions concerning the construction, validity, enforcement and interpretation
        of this Note shall be governed by and construed and enforced in accordance
        with
        the internal laws of the State of New York, without regard to the principles
        of
        conflicts of law thereof. Each party agrees that all legal proceedings
        concerning the interpretations, enforcement and defense of the transactions
        contemplated by any of the Transaction Documents (whether brought against
        a
        party hereto or its respective affiliates, directors, officers, shareholders,
        employees or agents) shall be commenced in the state and federal courts sitting
        in the City of New York, Borough of Manhattan (the “New York Courts”). Each
        party hereto hereby irrevocably submits to the exclusive jurisdiction of
        the New
        York Courts for the adjudication of any dispute hereunder or in connection
        herewith or with any transaction contemplated hereby or discussed herein
        (including with respect to the enforcement of any of the Transaction Documents),
        and hereby irrevocably waives, and agrees not to assert in any suit, action
        or
        proceeding, any claim that it is not personally subject to the jurisdiction
        of
        any such court, or such New York Courts are improper or inconvenient venue
        for
        such proceeding. Each party hereby irrevocably waives personal service of
        process and consents to process being served in any such suit, action or
        proceeding by mailing a copy thereof via registered or certified mail or
        overnight delivery (with evidence of delivery) to such party at the address
        in
        effect for notices to it under this Note and agrees that such service shall
        constitute good and sufficient service of process and notice thereof. Nothing
        contained herein shall be deemed to limit in any way any right to serve process
        in any manner permitted by law. Each party hereto hereby irrevocably waives,
        to
        the fullest extent permitted by applicable law, any and all right to trial
        by
        jury in any legal proceeding arising out of or relating to this Note or the
        transactions contemplated hereby. If either party shall commence an action
        or
        proceeding to enforce any provisions of this Note, then the prevailing party
        in
        such action or proceeding shall be reimbursed by the other party for its
        attorney’s fees and other costs and expenses incurred with the investigation,
        preparation and prosecution of such action or proceeding.

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      Section
        7.03 Severability.
        The
        invalidity of any of the provisions of this Note shall not invalidate or
        otherwise affect any of the other provisions of this Note, which shall remain
        in
        full force and effect.

      

      Section
        7.04 Entire
        Agreement and Amendments.
        This
        Note, together with the Securities Purchase Agreement, represents the entire
        agreement between the parties hereto with respect to the subject matter hereof
        and there are no representations, warranties or commitments, except as set
        forth
        herein. This Note may be amended only by an instrument in writing executed
        by
        the parties hereto.

      

      [Remainder
        of Page Intentionally Left Blank]

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        with
        the intent to be legally bound hereby, the Company as executed this Note
        as of
        the date first written above.

       

      
        	 	
                UFood
                  Franchise Company

              
	 	 
	 	 
	 	
                By:

              	 

	 	
                Name:
                  Brent Hahn

              
	 	
                Title:
                  President

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      NOTICE
        OF CONVERSION

      

      (To
        be executed by the Holder in order to convert the Note)

       

      
        	
                TO:

              	 

      

      

      

      The
        undersigned hereby irrevocably elects to convert $     of
        the
        principal amount of the above Note into Shares of Common Stock of UFood
        Franchise Company, according to the conditions stated therein, as of the
        Conversion Date written below.

       

      
        	
                Conversion
                  Date:

              	 ____________________________________
	
                Applicable
                  Conversion Price:

              	 ____________________________________ 
	
                Signature:

              	  ___________________________________
	
                Name:

              	  ___________________________________
	
                Address:

              	  ___________________________________
	
                Amount
                  to be converted:

              	
                $ ___________________________________

              
	
                Amount
                  of Note unconverted:

              	
                $ ___________________________________

              
	
                Conversion
                  Price per Unit: 

              	
                $ ___________________________________

              
	
                Interest
                  on the Principal being converted shall be paid as

              	   ___________________________________
	
                Number
                  of shares of Common Stock and Warrants to be issued including as
                  payment
                  of interest, if applicable:

              	   ___________________________________
	
                Please
                  issue the shares of Common Stock and Warrants in the following
                  name and to
                  the following address:

              	   ___________________________________
	
                Issue
                  to the following account of the Holder:

              	   ___________________________________
	
                Authorized
                  Signature:

              	   ___________________________________
	
                Name:

              	   ___________________________________
	
                Title:

              	   ___________________________________
	
                Phone
                  Number:

              	   ___________________________________
	
                Broker
                  DTC Participant Code:

              	   ___________________________________
	
                Account
                  Number:

              	   ___________________________________

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A

      

      SENIOR
        AND PARI PASSU INDEBTEDNESS

      

      None.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        B

      

      LIENS

      

      None.PLACEMENT
      AGENCY AGREEMENT

     

    August
      24, 2007

    Spencer
      Trask Ventures, Inc.

    535
      Madison Avenue

    18th
      Floor

    New
      York,
      New York 10022

    

    Ladies
      and Gentlemen:

    

    UFood
      Franchise Company, a Nevada corporation (the “Company”), hereby confirms its
      agreement (the “Agreement”) with Spencer Trask Ventures, Inc., a Delaware
      corporation (the “Placement Agent”), as follows:

     

    1. Offering.
      

     

    (a) The
      Company will offer (the “Offering”) for sale through the Placement Agent, as
      exclusive agent for the Company, and its selected dealers, a minimum of
      $1,000,000 (the “Minimum Amount”), and a maximum of $2,000,000 (the “Maximum
      Amount”), of principal
      amount of 9% Convertible Promissory Notes due 180 days from the issuance date
      (each, a “Note” and collectively, the “Notes”). The Notes shall have the rights
      and privileges described in the Disclosure Materials (as defined in Section
      1(d)
      hereof). 

     

    (b) Placement
      of the Notes by the Placement Agent will be made on a reasonable efforts,
“all-or-none” basis with respect to the Minimum Amount and on a “reasonable
      efforts” basis as to amounts in excess of the Minimum Amount. The Notes will be
      offered to potential subscribers, which, subject to compliance with the
      requirements for other subscribers, may include related parties of the Placement
      Agent or the Company, commencing on the date of the Transmittal Letter (as
      hereinafter defined) for a period of 31 days, unless the Company and the
      Placement Agent mutually agree to extend the Offering for up to an additional
      30
      days (the “Offering Period”). The date on which the Offering shall terminate
      shall be referred to as the “Termination Date.” A Final Closing (as hereinafter
      defined) may be held up to ten days after the Termination Date. 

     

    (c) The
      Placement Agent shall not tender to the Company and the Company shall not accept
      subscriptions from, or sell Notes to, any persons or entities that do not
      qualify as “accredited investors,” as such term is defined in Rule 501 of
      Regulation D (“Regulation D”) promulgated under Section 4(2) of the Securities
      Act of 1933, as amended (the “Act”), and/or investors that are not “U.S.
      persons” as defined in Regulation S (“Regulation S”) as promulgated by the
      Securities and Exchange Commission (“SEC”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d) The
      offering of the Notes will be made by the Placement Agent on behalf of the
      Company solely pursuant to the Disclosure Materials which at all times will
      be
      in form and substance reasonably acceptable to the Placement Agent, the Company
      and their respective counsel and contain such legends and other information
      as
      the Placement Agent, the Company and their respective counsel may, from time
      to
      time, deem necessary and desirable to be set forth therein. “Disclosure
      Materials” as used in this Agreement means the Company’s Confidential
      Transmittal Letter, dated August 24, 2007 (the “Transmittal Letter”), inclusive
      of the Securities Purchase Agreement and the Form of 9% Convertible Promissory
      Note and all other exhibits annexed thereto, and any and all amendments,
      supplements and appendices thereto that the Placement Agent will, with the
      Company’s prior approval, use on the Company’s behalf to sell the Notes. Unless
      otherwise defined, each capitalized term used in this Agreement will have the
      same meaning as shall be set forth in the Disclosure Materials.

     

    (e) The
      Placement Agent shall comply with all applicable broker-dealer registration
      requirements, applicable federal and state securities laws and all National
      Association of Securities Dealers, Inc. (“NASD) regulations with respect to the
      Offering and conduct the Offering in accordance with Regulation D and/or
      Regulation S. In connection with the Offering, the Placement Agent will offer
      the Notes only in those jurisdictions (states of the United States and foreign)
      in which the Notes have been qualified or registered for sale under the
      securities laws of such jurisdiction, or an exemption from such qualification
      or
      registration is available, and will deliver to each potential investor contacted
      by it, prior to accepting any subscription from such investor, the Disclosing
      Materials. A copy of each subscription document shall be promptly transmitted
      to
      the Company or its counsel. All information and statements relating to the
      Placement Agent provided in writing by the Placement Agent for inclusion in
      the
      Disclosing Materials will be true and correct in all material respects as of
      the
      date provided and such statements and information will not be misleading in
      any
      material respect.

     

    2.
      Representations
      and Warranties.
      For the
      benefit of the Placement Agent, the Company hereby incorporates by reference
      all
      of its representations and warranties as set forth in Section 3 of the
      Securities Purchase Agreement with the same force and effect as if specifically
      set forth herein. 

    

    3. Placement
      Agent Appointment and Compensation.

    

    (a) The
      Company hereby appoints the Placement Agent as its exclusive agent in connection
      with the Offering. The Company acknowledges that the Placement Agent may use
      selected dealers and sub-agents to fulfill its agency hereunder provided that
      such dealers and sub-agents are compensated solely by the Placement
      Agent.
      The
      Company has not and will not make, or permit to be made, any offers or sales
      of
      the Notes other than through the Placement Agent without the Placement Agent’s
      prior written consent.
      The
      Placement Agent has no obligation to purchase any of the Notes. The agency
      of
      the Placement Agent hereunder shall continue until the earlier of the
      Termination Date or the Final Closing (as defined in Section 4(c)
      hereof).

     

    (b) The
      Company will cause to be delivered to the Placement Agent copies of the
      Disclosure Materials and has consented, and hereby consents, to the use of
      such
      copies for the purposes permitted by the Act and applicable securities laws,
      and
      hereby authorizes the Placement Agent and its agents, employees and selected
      dealers to use the Disclosure Materials in connection with the sale of the
      Notes
      until the earlier of the Termination Date or the Final Closing (unless advised
      that the Disclosure Materials may no longer be used, or has been updated or
      supplemented), and no other person or entity is or will be authorized to give
      any information or make any representations other than those contained in the
      Disclosure Materials or to use any offering materials other than those contained
      in the Disclosure Materials in connection with the sale of the Notes. The
      Company will provide at its own expense such quantities of the Disclosure
      Materials and other documents and instruments relating to the Offering as the
      Placement Agent may reasonably request.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (c) The
      Company will cooperate with the Placement Agent by making available to its
      representatives such information as may be reasonably requested in making a
      reasonable investigation of the Company and its affairs and shall provide access
      to such employees as shall be reasonably requested. Prior to the First Closing
      (as defined in Section 4(c) hereof), if requested by the Placement Agent, the
      Company shall provide, at its own expense, credit or similar reports on such
      key
      management persons as the Placement Agent shall reasonably request.

     

    (d) Out
      of
      the proceeds received by it at each Closing (as hereinafter defined), the
      Company shall pay to the Placement Agent, at each Closing, a cash placement
      fee
      equal to ten percent (10%) of the principal amount of Notes purchased by each
      investor (an “Investor”) whose subscription is accepted by the Company (the
“Placement Agent’s Fee”). In addition, the Company shall pay all expenses set
      forth in Section 5(i) hereof. The Placement Agent’s Fee and the expenses set
      forth in Section 5(i) hereof will be deducted from the gross proceeds from
      the
      sale of the Notes at each Closing. The Placement Agent may direct all such
      amounts to be paid directly from the escrow account established pursuant to
      Section 4(b) hereof.

     

    (e) As
      additional compensation hereunder, at each Closing, the Company shall sell
      to
      the Placement Agent or its designees, for nominal consideration, warrants
      (collectively, the “Agent’s Warrants”) to purchase shares of the Company’s
      Common Stock equal to twenty percent (20%) of the shares into which the Notes
      sold at such Closing are convertible. The exercise price for the Agent’s
      Warrants shall be $1.00 per share. For
      clarification purposes, assuming $2 million of Notes are sold at a Closing,
      the
      Placement Agent shall be entitled to the following Agent’s Warrants:

     

    Total
      Gross Principal Amount of Notes Sold:
      $2,000,000

    20%
      of the Shares Underlying the Notes Sold:
      800,000

    Result:
      Placement Agent earns Agent’s Warrant to 

    purchase
      800,000
      shares
      of Common Stock at an
      exercise price of $1.00 per share. 

    

    The
      Agent’s Warrants shall be exercisable for seven years. Except as provided in
      this Agreement, the Agent’s Warrants shall have the same terms, including
anti-dilution and
      registration rights, as the warrants issuable to investors
      upon the
      conversion of the Notes.
      In any
      event, the Agent’s Warrants shall also contain a cashless exercise provision.

     

    (f)  The
      Company shall also pay the Placement Agent’s Fee and issue Agent’s Warrants to
      the Placement Agent with respect to, and based on, any investment by any third
      party contacted by the Placement Agent in connection with the Offering (other
      than any
      third-party with whom the Company can demonstrate it had a pre-existing
      relationship prior to the date of such contact) that
      participates in any private placement offering (a “Post-Closing Investor”) which
      occurs at any time within one (1) year from the latter of the Final Closing
      (other than those parties that participate in the proposed PPO (as defined
      in
      the Transmittal Letter) in which the Placement Agent is otherwise compensated).
      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (g) At
      the
      First Closing, the Company shall enter into a non-exclusive Finder's Agreement
      (the "Finder's Agreement") with the Placement Agent providing that, during
      the
      five year period after the earlier of the Termination Date or the Final Closing,
      in the event the Placement Agent introduces the Company to a third party (and
      such introduction is confirmed in writing to the Company by the Placement Agent)
      who may be interested in engaging in a merger, acquisition, joint venture or
      any
      other business combination with
      the
      Company, which may include the purchase of some or all of the stock or assets
      of
      the
      Company, the Placement Agent will be paid a finder's fee (the "Finder's Fee")
      according to the following table: 

     

    
      	 	
              (a)

            	
              7%
                of the first $1,000,000 or portion thereof of the consideration paid
                in
                such transaction; plus 

            

    

    
      	 	
              (b)
                

            	
              6%
                of the next $1,000,000 or portion thereof of the consideration paid
                in
                such transaction; plus

            

    

    
      	 	
              (c)
                

            	
              5%
                of the next $5,000,000 or portion thereof of the consideration paid
                in
                such transaction; plus

            

    

    
      	 	
              (d)
                

            	
              4%
                of the next $1,000,000 or portion thereof of the consideration paid
                in
                such transaction; plus

            

    

    
      	 	
              (e)
                

            	
              3%
                of the next $1,000,000 or portion thereof of the consideration paid
                in
                such transaction; plus

            

    

    
      	
            	(f)	
              2.5%
                of any consideration paid in such transaction in excess of
                $9,000,000.

            

    

     

    Notwithstanding
      the foregoing, a Finder's Fee shall not be applicable to (i) any transaction
      involving Spencer Trask and
      its
      Affiliates (as hereinafter defined) as a principal,
      (ii)
      any transaction involving a third-party with whom the Company can demonstrate
      it
      had a pre-existing relationship prior to the date of any proposed introduction
      or (iii) the proposed merger with UFood. Any such Finder's Fee due to the
      Placement Agent will be paid in cash at the closing of the particular
      consummated transaction for which the Finder's Fee is due. For purposes hereof,
      “Affiliate”
means,
      with respect to any person or entity, another person or entity that, directly
      or
      indirectly, controls that person or entity. “Control”
or
      “controls”
for
      purposes hereof means that a person or entity has the power, direct or indirect,
      to conduct or govern the policies of another person or entity. Affiliates
      shall not include portfolio companies of Spencer Trask, or other companies
      in
      which Spencer Trask has an existing investment unless the element of Control
      exists. 

     

    4. Subscription
      and Closing Procedures.

     

    (a) Each
      prospective purchaser will be required to complete and execute the Buyer
      Counterpart Signature Page to the Securities Purchase Agreement and the other
      questionnaires annexed to the Securities Purchase Agreement which will be
      forwarded or delivered to the Placement Agent at the Placement Agent’s offices
      at the address set forth in Section 11 hereof, together with the subscriber’s
      check or good funds in the full amount of the principal amount of Notes desired
      to be purchased. 

     

    
      
         

      

      
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    (b) All
      funds
      for subscriptions received from the Offering will be promptly forwarded by
      the
      Placement Agent or the Company, if received by it, to and deposited into
      non-interest bearing escrow account (the “Escrow Account”) established for such
      purpose with Signature Bank (the “Escrow Agent”). All such funds for
      subscriptions will be held in the Escrow Account pursuant to the terms of an
      escrow agreement among the Company, the Placement Agent and the Escrow Agent,
      such agreement to be in form and substance satisfactory to the Company and
      the
      Placement Agent. The Company will pay all fees related to the establishment
      and
      maintenance of the Escrow Account, regardless of whether a closing occurs
      hereunder. Subject to the receipt of such subscriptions for the Minimum Amount
      and the Company’s right to accept or reject subscriptions, in whole or in part,
      in its sole discretion, the Company will either accept or reject the
      subscription documents in a timely fashion and at each Closing will provide
      duplicate copies of such subscription documents to the Placement Agent. The
      Company will give written notice to the Placement Agent of its acceptance or
      rejection of each subscription. The Company, or the Placement Agent on the
      Company’s behalf, will promptly return to subscribers incomplete, improperly
      completed, improperly executed and rejected subscriptions and give written
      notice thereof to the Placement Agent upon such return and directions to the
      Escrow Agent to return any subscription funds received.

     

    (c) If
      subscriptions for at least the Minimum Amount have been accepted prior to the
      Termination Date, the funds therefor have been collected by the Escrow Agent
      and
      all of the conditions set forth elsewhere in this Agreement and the Securities
      Purchase Agreement have been fulfilled, a closing shall
      be
      held promptly with respect to the Notes sold (the “First Closing”). Thereafter,
      the remaining Notes will continue to be offered and sold until the Termination
      Date. Additional closings (each a “Closing”) may from time to time be conducted
      at times mutually agreeable by the Company and the Placement Agent with respect
      to additional Notes sold with the final closing (the “Final Closing”) to occur
      within 10 days after the earlier of the Termination Date or the sale of all
      Notes offered. Delivery of payment for the accepted subscriptions for Notes
      from
      the funds held in the Escrow Account will be made by wire transfer from the
      Escrow Agent to the Company at each Closing at the Placement Agent’s offices
      against delivery of the Notes by the Company at the address set forth in Section
      11 hereof (or at such other place as may be mutually agreed upon between the
      Company and the Placement Agent), net of amounts due to the Placement Agent
      and
      Blue Sky counsel pursuant to Section 5(i) hereof as of such Closing. Executed
      certificates for the Notes and the Agent’s Warrants will be in such authorized
      denominations and registered in such names as the Placement Agent may request
      on
      or before the second full business day prior to the date of each Closing
      (“Closing Date”), and will be made available to the Placement Agent for review
      and packaging at the Placement Agent’s office at least one full business day
      prior thereto.

     

    (d) If
      subscription documents for the Minimum Amount have not been received and
      accepted by the Company on or before the Termination Date for any reason, the
      Offering will be terminated, no Notes will be sold, and the Escrow Agent will,
      at the request of the Placement Agent, cause all monies received from
      subscribers for the Notes to be promptly returned to such subscribers without
      interest, deduction or offset.

     

    
      
         

      

      
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    5. Further
      Covenants.
      The
      Company hereby covenants and agrees that:

     

    (a) Except
      with the prior written consent of the Placement Agent (which consent shall
      not
      be unreasonably withheld), the Company shall not, at any time prior to the
      Final
      Closing, take any action that would cause any of the representations and
      warranties made by it in this Agreement not to be materially complete and
      correct on and as of each Closing Date with the same force and effect as if
      such
      representations and warranties had been made on and as of each such Closing
      Date
      (except for representations and warranties that speak as of a specific
      date).

     

    (b) If,
      at
      any time prior to the Final Closing, any event shall occur that does or may
      materially affect the Company or as a result of which it might become necessary
      to amend or supplement the Disclosure Materials so that the representations
      and
      warranties herein remain true, or in case it shall, in the reasonable opinion
      of
      counsel to the Placement Agent, be necessary to amend or supplement the
      Disclosure Materials to comply with Regulation D, Regulation S or any other
      applicable securities laws or regulations, the Company will promptly notify
      the
      Placement Agent and shall, at its sole cost, prepare and furnish to the
      Placement Agent copies of appropriate amendments and/or supplements in such
      quantities as the Placement Agent may reasonably request. The Company will
      not
      at any time, whether before or after the Final Closing, prepare or use any
      amendment or supplement to the Disclosure Materials of which the Placement
      Agent
      will not previously have been advised and furnished with a copy, or to which
      the
      Placement Agent or its counsel will have reasonably objected in writing or
      orally (confirmed in writing within 24 hours), or which is not in compliance
      in
      all material respects with the Act and other applicable securities laws or
      regulations. As soon as the Company is advised thereof, the Company will advise
      the Placement Agent and its counsel, and confirm the advice in writing, of
      any
      order preventing or suspending the use of the Disclosure Materials, or the
      suspension of the qualification or registration of the Notes for offering or
      the
      suspension of any exemption for such qualification or registration of the Notes
      for offering in any jurisdiction, or of the institution or threatened
      institution of any proceedings for any of such purposes, and the Company will
      use its commercially reasonable efforts to prevent the issuance of any such
      order, judgment or decree, and, if issued, to obtain as soon as reasonably
      possible the lifting thereof.

     

    (c) The
      Company shall comply with the Act, the Securities and Exchange Act of 1934,
      as
      amended (the “1934 Act”), and the rules and regulations thereunder, all
      applicable state securities laws and the rules and regulations thereunder in
      the
      states in which the Notes are to be offered and in which the Placement Agent’s
      Blue Sky counsel has advised the Placement Agent that the Notes are qualified
      or
      registered for sale or exempt from such qualification or registration, so as
      to
      permit the continuance of the sales of the Notes, and will file with the SEC,
      and shall promptly thereafter forward to the Placement Agent, any and all
      reports on Form D as are required.

     

    (d) The
      Company shall use its reasonable best efforts to qualify the Notes for sale
      (or
      seek exemption therefrom) under the securities laws of such jurisdictions in
      the
      United States as may be mutually agreed to by the Company and the Placement
      Agent, and the Company will make such applications and furnish information
      as
      may be required for such purposes, provided that in no event shall the Company
      be obligated to qualify to do business in any jurisdiction where it is not
      now
      so qualified or to take any action which would subject it to general service
      of
      process in any jurisdiction where it is not now subject, and provided further
      the Company shall not be required to produce any new disclosure document other
      than the Disclosure Materials. The Company will, from time to time, prepare
      and
      file such statements and reports as are or may be required to continue such
      qualifications in effect for so long a period as the Placement Agent may
      reasonably request.

     

    
      
         

      

      
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    (e) The
      Company shall place a legend on the certificates representing the Notes, the
      Agent’s Warrants, the warrants issuable upon conversion of the Notes (the
“Investor Warrants”) and any shares issuable upon conversion of the Notes, the
      Investor Warrants or the Agent’s Warrants issued to subscribers and the
      Placement Agent stating that the securities evidenced thereby have not been
      registered under the Act or applicable state securities laws and setting forth
      or referring to the applicable restrictions on transferability and sale of
      such
      securities under the Act and applicable state securities laws.

     

    (f) The
      Company shall apply the net proceeds from the sale of the Notes to make a bridge
      loan to KnowFat Franchise Company, Inc. in the principal amount equal to the
      gross proceeds of the Offering as described under “Use of Proceeds” in the
      Disclosure Materials. 

     

    (g) During
      the Offering Period, the Company shall afford each prospective purchaser of
      Notes the opportunity to ask questions of and receive answers from an officer
      of
      the Company concerning the terms and conditions of the Offering and the
      opportunity to obtain such other additional information necessary to verify
      the
      accuracy of the Disclosure Materials to the extent it possesses such information
      or can acquire it without unreasonable expense or effort.

     

    (h) Except
      with the prior written consent of the Placement Agent (which consent shall
      not
      be unreasonably withheld) or as set forth in the Disclosure Materials, the
      Company shall not, at any time prior to the earlier of the Final Closing or
      the
      Termination Date, engage in or commit to engage in any transaction outside
      the
      ordinary course of business, including without limitation the incurrence of
      material indebtedness, materially change its business or operations as described
      in the Disclosure Materials, or issue, agree to issue or set aside for issuance
      any securities (debt or equity) or any rights to acquire any such securities
      except as shall be contemplated by the Disclosure Materials.

     

    (i) Whether
      or not the transactions contemplated hereby are consummated, or this Agreement
      is terminated, the Company hereby agrees to pay all fees, costs and expenses
      incident hereto and to the Offering, including, without limitation, those in
      connection with (i)
      preparing, printing, duplicating, filing, distributing and binding the
      Disclosure Materials and any and all amendments and/or supplements thereto
      and
      any and all agreements, contracts and other documents related hereto and
      thereto; (ii)
      the
      creation, authorization, issuance, transfer and delivery of the Notes and the
      Agent’s Warrants, including, without limitation, fees and expenses of any
      transfer agent or registrar; (iii)
      the
      fees and expenses of the Escrow Agent; (iv)
      all
      reasonable fees and expenses of legal, accounting and other advisers to the
      Company; (v)
      all
      reasonable filing fees, costs and legal fees and expenses for Blue Sky services
      and related filings with respect to Blue Sky exemptions and qualifications
      (the
“Blue Sky Fees”); and (vi) reimbursement of all out-of-pocket expenses
      (including, without limitation, reasonable legal fees and expenses, mailing,
      telephone, travel, due diligence and similar expenses of the Placement Agent)
      incurred by the Placement Agent in connection with the Offering, which expenses
      shall not exceed $75,000
      in the
      aggregate without the prior written approval of the Company. 

     

    
      
         

      

      
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    (j) Until
      the
      earlier of the Final Closing Date and the Termination Date, neither the Company
      nor any person or entity acting on its behalf will negotiate or enter into
      any
      agreement with any other placement agent or underwriter with respect to a
      private or public offering of the Company’s or any subsidiary’s debt or equity
      securities. Neither the Company nor anyone acting on its behalf will, until
      the
      earlier of the Final Closing Date and the Termination Date, without the prior
      written consent of the Placement Agent, offer for sale to, or solicit offers
      to
      subscribe for Notes or other securities of the Company from, or otherwise
      approach or negotiate in respect thereof with, any other person. 

    

    6. Conditions
      of Placement Agent’s Obligations.
      The
      obligations of the Placement Agent hereunder are subject to the fulfillment,
      at
      or before each Closing, of the following additional conditions, each of which
      may be waived in writing by the Placement Agent:

     

    (a) Each
      of
      the representations and warranties of the Company shall be true and correct
      in
      all material respects when made on the date hereof and on and as of each Closing
      Date as though made on and as of each Closing Date (except for representations
      and warranties that speak as of a specific date).

     

    (b) The
      Company shall have performed and complied in all material respects with all
      agreements, covenants and conditions required to be performed and complied
      with
      by it under the Disclosure Materials at or before each Closing.

     

    (c) No
      order
      suspending the use of the Disclosure Materials or enjoining the offering or
      sale
      of the Notes shall have been issued, and no proceedings for that purpose or
      a
      similar purpose shall have been initiated and pending, or, to the best of the
      Company’s knowledge, are contemplated or threatened.

     

    (d) At
      the
      First Closing the Company shall have an outstanding capitalization as described
      in the Disclosure Materials. All shares of capital stock currently outstanding
      are, and all shares which may be issued at the Closing will be upon issuance,
      duly authorized, validly issued, fully paid, and non-assessable. At each
      Closing, no securities (other than the warrants issued to the Placement Agent
      in
      connection with the Offering) will be issuable upon the exercise of warrants
      or
      options, without the written authorization of the Placement Agent, except (i)
      those warrants and options as set forth in the Disclosure Materials and (ii)
      those issued in prior Closings of the sale of Notes pursuant to the
      Offering.

    

    (e) The
      Placement Agent shall have received certificates of the Chief Executive Officer
      of the Company, dated as of each Closing Date, certifying on behalf of the
      Company, in such detail as Placement Agent may reasonably request, as to the
      fulfillment of the conditions set forth in subparagraphs (a), (b), (c) and
      (d)
      above.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (f) The
      Company shall have delivered to the Placement Agent (i)
      a
      currently dated good standing certificate from the Secretary of State of Nevada
      and each jurisdiction in which the Company is qualified to do business as a
      foreign corporation (if any), and (ii)
      certified resolutions of the Company’s Board of Directors approving this
      Agreement and the other Disclosure Materials , and the transactions and
      agreements contemplated by this Agreement and the other Disclosure Materials
      .

    

    (g) At
      each
      Closing, an authorized officer of the Company shall have provided a certificate
      to the Placement Agent confirming on behalf of the Company that there have
      been
      no undisclosed material and adverse changes in the business condition (financial
      or otherwise) of the Company from the date of the Disclosure Materials, the
      absence of undisclosed liabilities (other than liabilities arising in the
      ordinary course of business) and such other matters relating to the financial
      condition of the Company that the Placement Agent may reasonably
      request.

     

    (h) At
      each
      Closing, the Company shall have (i)
      paid to
      the Placement Agent the Placement Agent’s Fee in respect of all Notes sold at
      such Closing, (ii)
      paid
      all fees, costs and expenses set forth in Section 5(i) hereof, and (iii)
      executed and delivered to the Placement Agent the Agent’s Warrants in an amount
      proportional to the Notes sold at such Closing. 

     

    (i) There
      shall have been delivered to the Placement Agent a signed opinion of counsel
      to
      the Company (“Company Counsel”), dated as of each Closing Date, in the form
      agreed upon prior to the Closing.

     

    (j) All
      proceedings taken at or prior to each Closing in connection with the
      authorization, issuance and sale of the Notes and the Agent’s Warrants will be
      reasonably satisfactory in form and substance to the Placement Agent and its
      counsel, and such counsel shall have been furnished with all such documents,
      certificates and opinions as they may reasonably request upon reasonable prior
      notice in connection with the transactions contemplated hereby.

     

    6A.
      Mutual
      Condition.
      The
      obligations of the Placement Agent and the Company hereunder are subject to
      the
      execution by the investors of the Securities Purchase Agreement and related
      questionnaires in form and substance reasonably acceptable to the Placement
      Agent and the Company. 

     

    
      
         

      

      
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    7. Indemnification.

     

    (a) The
      Company will (i)
      indemnify and hold harmless the Placement Agent, its selected dealers and their
      respective officers, directors, employees, attorneys and each person, if any,
      who controls the Placement Agent within the meaning of the Act and such selected
      dealers (each an “Indemnitee”) against, and pay or reimburse each Indemnitee
      for, any and all losses, claims, damages, liabilities or expenses whatsoever
      (or
      actions or proceedings or investigations in respect thereof), joint or several
      (which will, for all purposes of this Agreement, include, but not be limited
      to,
      all reasonable costs of defense and investigation and all reasonable attorneys’
fees, including appeals), to which any Indemnitee may become subject, under
      the
      Act or otherwise, in connection with the offer and sale of the Notes, whether
      such losses, claims, damages, liabilities or expenses shall result from any
      claim of any Indemnitee or any third party; and (ii)
      reimburse each Indemnitee for any legal or other expenses reasonably incurred
      in
      connection with investigating or defending against any such loss, claim, action,
      proceeding or investigation; provided,
      however,
      that
      the Company will not be liable in any such case to the extent that any such
      claim, damage or liability is
      found
      by a court of competent jurisdiction in a final judgment to have resulted
      primarily from
      (A)
      an untrue statement or alleged untrue statement of a material fact made in
      the
      Disclosure Materials, or an omission or alleged omission to state therein a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, in reliance upon and in conformity with written
      information furnished to the Company by the
      Placement Agent
      or any
      such controlling persons specifically for use in the preparation thereof, (B)
      any violations by the Placement
      Agent of
      the Act
      or state securities laws which does not result from a violation thereof or
      a
      breach hereof by the Company or any of its affiliates, (C) any violation of
      Blue
      Sky filing requirements or (D) fraud, willful misconduct or gross negligence
      of
      the Placement
      Agent.
      In
      addition to the foregoing agreement to indemnify and reimburse, the Company
      will
      indemnify and hold harmless each Indemnitee against any and all losses, claims,
      damages, liabilities or expenses whatsoever (or actions or proceedings or
      investigations in respect thereof), joint or several (which shall for all
      purposes of this Agreement, include, but not be limited to, all reasonable
      costs
      of defense and investigation and all reasonable attorneys’ fees, including
      appeals) to which any Indemnitee may become subject insofar as such costs,
      expenses, losses, claims, damages or liabilities arise out of or are based
      upon
      the claim of any person or entity that he or it is entitled to broker’s or
      finder’s fees from any Indemnitee in connection with the Offering. 

     

    (b) The
      Placement Agent will indemnify and hold harmless the Company, its officers,
      directors, employees, attorneys and each person, if any, who controls the
      Company within the meaning of the Act against, and pay or reimburse any such
      person for, any and all losses, claims, damages or liabilities or expenses
      whatsoever (or actions, proceedings or investigations in respect thereof),
      joint
      or several, to which the Company or any such person may become subject under
      the
      Act or otherwise, whether such losses, claims, damages, liabilities or expenses
      (or actions, proceedings or investigations in respect thereof) shall result
      from
      any claim of the Company, any of its officers, directors, employees, agents,
      any
      person who controls the Company within the meaning of the Act or any third
      party, insofar as such losses, claims, damages or liabilities are based upon
      any
      untrue statement or alleged untrue statement of any material fact contained
      in
      the Disclosure Materials but only with reference to information contained in
      the
      Disclosure Materials relating to the Placement Agent, or an omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein not misleading, if made or omitted
      in
      reliance upon and in conformity with written information furnished to the
      Company by the Placement Agent or any such controlling persons, specifically
      for
      use in the preparation thereof. The Placement Agent will reimburse the Company
      or any such person for any legal or other expenses reasonably incurred in
      connection with investigating or defending against any such loss, claim, damage,
      liability or action, proceeding or investigation to which such indemnity
      obligation applies, including appeals. Notwithstanding the foregoing, in no
      event shall the Placement Agent’s indemnification obligation hereunder exceed
      the amount of the fees payable to it hereunder. 

     

    
      
         

      

      
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    (c) Promptly
      after receipt by an indemnified party under this Section 7 of notice of the
      commencement of any action, claim, proceeding or investigation (“Action”), such
      indemnified party, if a claim in respect thereof is to be made against the
      indemnifying party under this Section 7, will notify the indemnifying party
      of
      the commencement thereof, but the omission to so notify the indemnifying party
      will not relieve it from any liability which it may have to any indemnified
      party under this Section 7 unless the indemnifying party has been substantially
      prejudiced by such omission. The indemnifying party will be entitled to
      participate in, and, to the extent that it may wish, jointly with any other
      indemnifying party, to assume the defense thereof subject to the provisions
      herein stated, with counsel reasonably satisfactory to such indemnified party.
      The indemnified party will have the right to employ separate counsel in any
      such
      Action and to participate in the defense thereof, but the fees and expenses
      of
      such counsel will not be at the expense of the indemnifying party if the
      indemnifying party has assumed the defense of the Action with counsel reasonably
      satisfactory to the indemnified party; provided, however,
      that if
      the indemnified party shall be requested by the indemnifying party to
      participate in the defense thereof or shall have concluded in good faith and
      specifically notified the indemnifying party either that there may be specific
      defenses available to it which are different from or additional to those
      available to the indemnifying party or that such Action involves or could have
      a
      material adverse effect upon it with respect to matters beyond the scope of
      the
      indemnity agreements contained in this Agreement, then the counsel representing
      it, to the extent made necessary by such defenses, shall have the right to
      direct such defenses of such Action on its behalf and in such case the
      reasonable fees and expenses of such counsel in connection with any such
      participation or defenses shall be paid by the indemnifying party. No settlement
      of any Action against an indemnified party will be made without the consent
      of
      the indemnifying party and the indemnified party, which consent shall not be
      unreasonably withheld or delayed in light of all factors of importance to such
      party and no indemnifying party shall be liable to indemnify any person for
      any
      settlement of any such claim effected without such indemnifying party’s
      consent.

     

    8. Contribution.
      To
      provide for just and equitable contribution, if (i)
      an
      indemnified party makes a claim for indemnification pursuant to Section 7 hereof
      and it is finally determined, by a judgment, order or decree not subject to
      further appeal that such claims for indemnification may not be enforced, even
      though this Agreement expressly provides for indemnification in such case;
      or
      (ii)
      any
      indemnified or indemnifying party seeks contribution under the Act, the 1934
      Act, or otherwise, then each indemnifying party shall contribute to such amount
      paid or payable by such indemnified party in such proportion as is appropriate
      to reflect not only such relative benefits but also the relative fault of the
      Company on the one hand and the Placement Agent on the other in connection
      with
      the statements or omissions which resulted in such losses, claims, damages,
      liabilities or expenses (or actions in respect thereof), as well as any other
      relevant equitable considerations. The relative benefits received by the Company
      on the one hand and the Placement Agent on the other shall be deemed to be
      in
      the same proportion as the total net proceeds from the Offering (before
      deducting expenses) received by the Company bear to the total commissions and
      fees received by the Placement Agent. The relative fault, in the case of an
      untrue statement, alleged untrue statement, omission or alleged omission will
      be
      determined by, among other things, whether such statement, alleged statement,
      omission or alleged omission relates to information supplied by the Company
      or
      by the Placement Agent, and the parties’ relative intent, knowledge, access to
      information and opportunity to correct or prevent such statement, alleged
      statement, omission or alleged omission. The Company and the Placement Agent
      agree that it would be unjust and inequitable if the respective obligations
      of
      the Company and the Placement Agent for contribution were determined by
pro rata
      allocation of the aggregate losses, liabilities, claims, damages and expenses
      or
      by any other method or allocation that does not reflect the equitable
      considerations referred to in this Section 8. No person guilty of a fraudulent
      misrepresentation (within the meaning of Section 11(f) of the Act) will be
      entitled to contribution from any person who is not guilty of such fraudulent
      misrepresentation. For purposes of this Section 8, each person, if any, who
      controls the Placement Agent within the meaning of the Act will have the same
      rights to contribution as the Placement Agent, and each person, if any, who
      controls the Company within the meaning of the Act will have the same rights
      to
      contribution as the Company, subject in each case to the provisions of this
      Section 8. Anything in this Section 8 to the contrary notwithstanding, no party
      will be liable for contribution with respect to the settlement of any claim
      or
      action effected without its written consent. This Section 8 is intended to
      supersede, to the extent permitted by law, any right to contribution under
      the
      Act, the 1934 Act or otherwise available.

     

    
      
         

      

      
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    9. Termination.
      

     

    (a) The
      Offering may be terminated by the Placement Agent at any time prior to the
      expiration of the Offering Period in the event that (i)
      any of
      the representations or warranties of the Company contained herein shall prove
      to
      have been false or misleading in any material respect when made or deemed made,
      (ii)
      the
      Company shall have failed to perform any of its material obligations hereunder,
      (iii)
      the
      Company shall have determined for any reason not to continue with the Offering
      or (iv)
      the
      Placement Agent shall determine in its sole discretion that it is reasonably
      likely that any of the conditions to Closing set forth herein will not, or
      cannot, be satisfied. In the event of any such termination occasioned by or
      arising out of or in connection with the matters set forth in clauses (i)-(iii)
      above, or occasioned by or arising out of or in connection with a matter set
      forth in clause (iv) above due to any breach hereunder on the part of the
      Company, the Placement Agent shall be entitled to receive, in addition to other
      rights and remedies it may have hereunder, at law or otherwise, an amount equal
      to the sum of: (A) all Placement Agent’s Fees earned through the Termination
      Date, provided
      that,
      in no
      event shall the Company’s obligation for such
      fees
      exceed
      the amount of proceeds actually received by it in the Offering,
      (B) reimbursement
      for all reasonable costs and expenses incurred by the Placement Agent through
      the date of such termination; provided,
      however,
      that
      such costs and expenses shall not exceed the sum of $75,000, and
      all
      unpaid Blue Sky Fees and other expenses set forth in Section 5(i)
      hereof,
      (C)
      all
      amounts that may become payable in
      respect of Post-Closing Investors pursuant
      to Section 3(f)
      hereof, and (D) all amounts that may become payable pursuant to Section 3(g)
      hereof. In addition to the sum of the amounts in clauses (A)-(D) in the previous
      sentence, in the event that (a) the Company is sold (in a stock or asset sale),
      merged or otherwise acquired or combined, or (b) the Company enters into a
      letter of intent or agreement with respect to the foregoing, or (c) the Company
      completes a public or private offering of its securities, in each case within
      six months after the Offering is terminated because the Company has breached
      any
      representation, warranty or covenant made by it herein or because the Company
      has determined prior to the Expiration Date (if applicable) not to proceed
      with
      the Offering, the Company shall pay to the Placement Agent an investment banking
      fee equal to three percent (3%) of the total consideration received by the
      Company and/or its stockholders in connection with such sale, merger,
      acquisition or sale of securities.

     

    (b) This
      Offering may be terminated by the Company at any time prior to the Termination
      Date in the event that (i)
      the
      Placement Agent shall have failed to perform any of its material obligations
      hereunder or (ii)
      there
      shall occur any event described in Section 9(a) hereof not occasioned by or
      arising out of or in connection with any breach or failure hereunder on the
      part
      of the Company. It is understood and agreed that the foregoing termination
      right
      is not available to the Company prior to the initial Closing in the event the
      Placement Agent is using its good faith efforts to market the Offering.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (c) Upon
      any
      such termination, the Company and the Placement Agent shall cooperate to ensure
      that all money in the Escrow Account received in respect of subscriptions for
      Notes not accepted by the Company are promptly returned to such subscribers
      without interest or offset. 

     

    10. Survival.

     

    (a) The
      obligations of the parties to pay any costs and expenses hereunder and to
      provide indemnification and contribution as provided herein shall survive any
      termination hereunder.

     

    (b) The
      respective indemnities, agreements, representations, warranties and other
      statements of the Company set forth in or made pursuant to this Agreement will
      remain in full force and effect, regardless of any investigation made by or
      on
      behalf of, and regardless of any access to information by, the Company or the
      Placement Agent, or any of their officers or directors or any controlling person
      thereof, and will survive the sale of the Notes.

     

    11. Notices.
      All
      communications hereunder will be in writing and, except as otherwise expressly
      provided herein or after notice by one party to the other of a change of
      address, if sent to the Placement Agent, will be mailed, delivered or faxed
      and
      confirmed to Spencer Trask Ventures, Inc., 535 Madison Avenue, 18th Floor,
      New
      York, New York 10022, Attention: William P. Dioguardi, fax number (212)
      888-9103, with a copy to Littman Krooks LLP, 655 Third Avenue, New York, New
      York 10016, Attention: Mitchell C. Littman, Esq., fax number (212) 490-2990,
      and
      if sent to the Company, will be mailed or delivered and confirmed to UFood
      Franchise Company, 12665-54th
      Avenue,
      Surrey, British Columbia V3X 3C1, Canada Attention: Brent Hahn, Chief Executive
      Officer, with a copy to Gottbetter & Partners, LLP, 488 Madison Ave.,
      12th
      Floor,
      New York, NY 10022-5718, Attention: Adam Gottbetter, Esq., fax number (212)
      400-6901.

    

    12.
      ARBITRATION,
      CHOICE OF LAW; COSTS.
      THE PARTIES HERETO AGREE TO SUBMIT ALL CONTROVERSIES TO ARBITRATION IN
      ACCORDANCE WITH THE PROVISIONS SET FORTH BELOW AND UNDERSTAND THAT (A)
      ARBITRATION IS FINAL AND BINDING ON THE PARTIES, (B) THE PARTIES ARE WAIVING
      THEIR RIGHTS TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO A JURY TRIAL,
      (C)
      PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED AND DIFFERENT FROM COURT
      PROCEEDINGS, (D) THE ARBITRATOR'S AWARD IS NOT REQUIRED TO INCLUDE FACTUAL
      FINDINGS OR LEGAL REASONING AND ANY PARTY'S RIGHT TO APPEAL OR TO SEEK
      MODIFICATION OF RULES BY ARBITRATORS IS STRICTLY LIMITED, (E) THE PANEL OF
      NASD
      ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE
      AFFILIATED WITH THE SECURITIES INDUSTRY, AND (F) ALL CONTROVERSIES WHICH MAY
      ARISE BETWEEN THE PARTIES CONCERNING THIS AGREEMENT SHALL BE DETERMINED BY
      ARBITRATION PURSUANT TO THE RULES THEN PERTAINING TO THE NASD. JUDGMENT ON
      ANY
      AWARD OF ANY SUCH ARBITRATION MAY BE ENTERED IN THE SUPREME COURT OF THE STATE
      OF NEW YORK, COUNTY OF NEW YORK OR IN ANY OTHER COURT HAVING JURISDICTION OVER
      THE PERSON OR PERSONS AGAINST WHOM SUCH AWARD IS RENDERED. THE PARTIES AGREE
      THAT THE DETERMINATION OF THE ARBITRATORS SHALL BE BINDING AND CONCLUSIVE UPON
      THEM. THE PREVAILING PARTY, AS DETERMINED BY SUCH ARBITRATORS, IN A LEGAL
      PROCEEDING SHALL BE ENTITLED TO COLLECT ANY COSTS, DISBURSEMENTS AND REASONABLE
      ATTORNEY'S FEES FROM THE OTHER PARTY.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    13. Confidentiality.
      

     

    (a) The
      Company hereby agrees to hold confidential the identities of the purchasers
      in
      the Offering and shall not disclose their names and addresses without the prior
      written consent of the Placement Agent, unless required by law. Notwithstanding
      the foregoing, the Company shall not be deemed to be in violation of this
      Section 13 by virtue of revealing the identities of such purchasers to the
      Company’s transfer agent and professional advisors or in connection with any
      registration statement.

     

    (b) The
      Placement Agent acknowledges that the securities laws prohibit the Company
      and
      the Placement Agent from disclosing material, non-public information to selected
      persons unless the Company discloses such information publicly or discloses
      such
      information on a confidential basis. The Placement Agent hereby agrees with
      the
      Company (i) to maintain in confidence any material, non-public information
      disclosed to the Placement Agent with respect to the Company, (ii) to use such
      information only in connection with the provisions of services to the Company
      hereunder, and (iii) to comply with applicable securities laws with respect
      to
      such information. The Placement Agent agrees to keep confidential during the
      Offering Period, and for one
      (1)
      year
      after
      the expiration or any termination, of this Agreement, all material nonpublic
      information provided to it by the Company or its advisors, except as required
      by
      law. Notwithstanding any provision herein to the contrary, the Placement Agent
      may disclose nonpublic information to its affiliates, agents and advisors
      whenever it determines that such disclosure is necessary to provide the services
      contemplated hereunder, provided that it advises such persons of the obligation
      to maintain the confidentiality of such information.

     

    (c) Each
      party hereby consents to the granting of an injunction against it by any court
      of competent jurisdiction to enjoin it from violating the foregoing
      confidentiality provisions. Each party hereby agrees that the other party will
      not have an adequate remedy at law in the event that the breaching party
      breaches these confidentiality provisions contained herein, and that the
      non-breaching party will suffer irreparable damage and injury as a result of
      any
      such breach. Resort to such equitable relief shall not, however, be construed
      to
      be a waiver of any other rights or remedies which the non-breaching party may
      have. 

     

    14. Miscellaneous.
      No
      provision of this Agreement may be changed or terminated except by a writing
      signed by the party or parties to be charged therewith. Unless expressly so
      provided, no party to this Agreement will be liable for the performance of
      any
      other party’s obligations hereunder. Any party hereto may waive compliance by
      the other with any of the terms, provisions and conditions set forth herein;
      provided,
      however,
      that
      any such waiver shall be in writing specifically setting forth those provisions
      waived thereby. No such waiver shall be deemed to constitute or imply waiver
      of
      any other term, provision or condition of this Agreement. If any provision
      of
      this Agreement is determined to be invalid or unenforceable in any respect,
      such
      determination shall not affect in any other respect, and the remainder of this
      Agreement shall remain in full force and effect.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    15. Entire
      Agreement.
      This
      Agreement together with any other agreement referred to herein contains the
      entire agreement between the parties hereto and is intended to supersede any
      and
      all prior agreements between the parties with respect to the subject matter
      hereof.

     

    16. Counterparts;
      Facsimile Signatures.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed to be an original, and all of which together shall constitute one and
      the
      same document. This Agreement may be executed by facsimile
      signatures.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    If
      the
      foregoing is in accordance with your understanding of our agreement, kindly
      sign
      and return this Agreement, whereupon it will become a binding agreement between
      the Company and the Placement Agent in accordance with its terms.

     

    
      	
              Very
                truly yours,

            
	 
	
              UFOOD
                FRANCHISE COMPANY

            
	 	 
	
              By:  

            	 
	
               

            	
              Name:
                Brent Hahn

            
	 	
              Title:
                Chief Executive Officer

            
	 	 
	
              Accepted
                and agreed to as of the 

              24th
                day of August, 2007.

            
	 	 
	
              SPENCER
                TRASK VENTURES, INC.

            
	 	 
	
              By:
                

            	 
	 	
              Name:
                William P. Dioguardi

            
	 	
              Title:
                President

            

    

    

    The
      undersigned agrees to be a primary obligor with respect to any sections
      contained herein with respect to the Company’s obligation to pay or reimburse
      expenses to the Placement Agent including, without limitation Section 5(i)
      and
      9(a) hereto. The undersigned also agrees to the provisions of Sections 3(f)
      and
      3(g) contained herein. 

    

    
      	
              KnowFat
                Franchise Company, Inc.

            
	 	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

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