Document:

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EXHIBIT 10.1

UNION BANK OF CALIFORNIA
                                                Small Business Banking Agreement
                                                                     UCC SECURED
                                                 BUSINESS LOAN NUMBER 0366422020

Date February 13, 2009

Borrower Name: BIOMERICA. INC.

IMPORTANT INFORMATION ABOUT OPENING AN ACCOUNT:

To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person and/or entity who opens an
account. What this means to you: When you open an account, we will ask for your
name, address, date of birth (for individuals) and other information that will
allow us to identify you. We may also ask to see your driver's license or other
identifying documents.

1. PROMISE TO PAY. At the times indicated below, you ("Borrower") promise to pay
to Union Bank of California, N.A. ("Bank"), or order, the principal sum of ONE
HUNDRED THIRTY-THREE THOUSAND AND 00/100 Dollars ($133,000.00), or so much
thereof as is actually disbursed (including any amounts disbursed prior to
execution of this Agreement) (hereinafter, the "Loan"), plus any interest and
other charges due under this Agreement, and any license, recording or
registration fees, taxes or other assessments required to establish, perfect,
protect and preserve any security interest relating to any property given as
collateral hereunder. You also promise to pay all collection costs, including
court costs and attorneys' fees, including but not limited to those incurred in
arbitration, trial court, and on any appeal and in bankruptcy court, and the
costs to Bank of the services of its in-house counsel and staff, and any other
costs the Bank may incur in enforcing this Agreement.

2. LOAN AVAILABILITY PERIOD. Loan proceeds shall be available for disbursement
in one single funding to occur upon execution of this Agreement, and shall be
payable in: 36 principal and interest installments of FOUR THOUSAND EIGHTY-TWO
AND 54 /100 ($4,082.54) each on the 23rd day of each month commencing MARCH 23,
2009, through and including FEBRUARY 23, 2012, at which time all principal,
accrued but unpaid interest and other charges shall become immediately due and
payable. Any installment falling due on a Saturday, a Sunday, or a banking
holiday shall be payable on the next succeeding day on which Bank is open for
business. You may make any prepayments of principal or interest at any time,
without premium or penalty. Payments or prepayments, as the case may be, shall
be applied to any outstanding fees, late charges, out-of-pocket expenses,
accrued interest then owing, and principal outstanding, in whichever order Bank
may select.

3. INTEREST RATE. The interest rate for your Loan is 6.50% per annum, calculated
on the basis of a 365-day year. You agree that this interest rate is conditioned
upon payments being made by automatic deduction from your Union Bank of
California checking or savings ("Account") 0670043053. You agree to pay the Bank
a minimum of $100 interest during the term of your Loan.

4. AUTOMATIC DEDUCTION. You agree that each payment of fees, out-of-pocket
expenses incurred by the Bank to activate your Business Loan, late charges,
interest, and principal owing pursuant to this Agreement shall be made by
automatic deduction from your Account. Alternatively, fees and/or out-of-pocket
expenses may be charged to your Business Loan. If you make a payment using a
check, or any method other than automatic deduction from your Account, and the
payment is sufficient to cover your next minimum payment due, and (1) your
account is a Term Loan, THE automatic deduction WILL NOT occur; or (2) your
Account is a Line, THE automatic deduction from your Account for that payment
will occur. If your Account is closed for any reason, or if there are
insufficient funds in the Account to pay the sum due, the Bank may terminate
payments by automatic deduction and increase the interest rate on your Business
Loan by one (1) percentage points. You agree that the Bank may also charge any
other deposit account held in the same legal ownership to recover any sums
owing.

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Automatic deduction from account number 0670043053
ACCOUNT NAME BIOMERICA, INC.

<TABLE>
<S>            <C>
5. FEES. You agree to pay Bank the following initial fees:
         Loan Fee equal to.....................        $665.00     o     Appraisal Fee equal to ..............        $ N/A
         Documentation Fee equal to ...........         $75.00     o     Flood Determination Fee equal to ....        $ N/A
         Recording Fee equal to ...............          $ N/A     o     Title Fee equal to ..................        $ N/A
         Insurance Premium equal to ...........          $ N/A     o     Escrow Fee equal to .................        $ N/A
         Cal Cap Fee Paid .....................          $ N/A     o     Reconveyance Fee equal to ...........        $ N/A
         Cal Cap Fee Financed .................          $ N/A     o     Fee equal to ........................        $ N/A
         Processing Fee equal to ..............          $ N/A     o     Fee equal to ........................        $ N/A
         Other Fee equal to ...................          $ N/A
</TABLE>

The foregoing fees may be deducted from the Business Loan proceeds. You agree to
pay other charges as disclosed to you separately. ALL FEES AND CHARGES ARE
NONREFUNDABLE IN THE EVENT OF CANCELLATION OF YOUR BUSINESS LOAN FOR ANY REASON.

6. LATE PAYMENTS. If your BUSINESS LOAN WAS established in California or
Washington, if the Bank receives a payment more than 10 days after the due date
shown on your statement, you agree to pay a fee of 5% of the amount past due, or
$10.00, whichever is greater.

In connection with the granting of such security interest, you hereby make the
following representations, warranties and covenants to Bank: (a) the Collateral
is now and at all times hereafter will be of good and merchantable quality, free
from defects; (b) the Collateral shall be kept in good operating condition and
repair, so that its value and operating efficiency shall at all times be
maintained and preserved; (c) you agree to keep correct and accurate records
itemizing and describing the kind, type, quality and quantity of the Collateral,
and its cost, all of which records shall be available for inspection by the
Bank; and (d) the Collateral is owned by you, and is and shall remain free from
all liens, claims, encumbrances or security interests (except in favor of, or as
approved by, Bank). The Bank additionally has a general lien arising by
operation of law on any of your property in its possession. The Bank does not
waive any other lien it may have through operation of law, nor its right of
setoff against any property you may have with it.

Borrower hereby appoints Bank the true and lawful attorney of Borrower and
authorizes Bank to perform any and all acts which Bank in good faith deems
necessary for the protection and preservation of Collateral or its value or
Bank's security interest therein, including transferring any Collateral into its
own name and receiving the Income thereon as additional security hereunder. Bank
does not assume any of the obligations arising under the Collateral.

7. COVENANTS. For as long as the Business Loan is outstanding, you agree to: (a)
give written notice to Bank within 15 days of the occurrence of any of the
following: (i) any Event of Default or any event which, upon notice or lapse of
time, or both, would become an Event of Default; or (ii) any change in your
name, business structure, state of organization, principal place of business (if
a general partnership or other non-registered entity), or the location of any
collateral for the Business Loan, or the establishment of any new place of
business or the discontinuance of any existing place of business; (b) fumish
Bank upon its request with income statements, balance sheets, statements of
retained earnings, tax returns, and any other financial information requested by
Bank from time to time; (c) maintain adequate books, accounts and records and
permit employees or agents of Bank at any reasonable time to inspect your
properties, and to examine such books, accounts and records and make copies and
memoranda thereof; (d) not create, assume or suffer to exist any lien on any
real or personal property which is the subject of a security interest in favor
of the Bank, or upon the income or profits thereof, except in favor of, or as
approved by, Bank; (e) not engage in any business activities or operations
substantially different from or unrelated to your present business activities
and operations; (f) not create, incur, assume or permit to exist any
indebtedness for borrowed money other than loans from the Bank, except
obligations now existing as shown on any credit application to Bank or the
personal financial statement or data submitted with such application, or sell or
transfer any accounts or notes receivable or any money due or to become due; (g)
not make any loans or advances to any person or other entity other than in the
ordinary and normal course of its business as now conducted; or guarantee or
otherwise become liable upon the obligation of any person or other entity; and
(h) maintain and keep in force insurance with companies acceptable to Bank and
in such amounts and types, including without limitation fire and public
liability insurance, as is usual in the business carried on by you, or as Bank
may reasonably request, such insurance policies to be in form and substance
satisfactory to Bank.

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8. AGREEMENT TO PROVIDE INSURANCE.
You understand and agree to furnish proof of insurance as requested by Bank, and
not limited to fire and extended coverage insurance, prior to the funding of
this credit. The proof of insurance must be acceptable to Bank, including naming
Bank as loss payee/lien holder, or, if applicable, as additional insured.

Proof of insurance may be given to a Bank branch representative or mailed to:
                                    Union Bank of California, N.A.
                                    P.O. Box 129001
                                    San Diego, CA 92112

Insurance requirements remain in force for the term of the loan.

Unless you provide us with evidence of the insurance coverage as required by our
contract or loan agreement, we may purchase insurance at your expense to protect
our interest. This insurance may, but need not, also protect your interest. If
the collateral becomes damaged, the coverage we purchase may not pay any claim
you make or any claim made against you. You may later cancel this coverage by
providing evidence that you have obtained property coverage elsewhere.

You are responsible for the cost of any insurance purchased by us. The cost of
this insurance may be added to your contract or loan balance. If the cost is
added to your contract or loan balance, the interest rate on the underlying
contract or loan will apply to this added amount. The effective date of coverage
may be the date your prior coverage lapsed or the date you failed to provide
proof of coverage.

The coverage we purchase may be considerably more expensive than insurance you
can obtain on your own and may not satisfy any need for property damage coverage
or any mandatory liability insurance requirements imposed by applicable law.

9.DEFAULT AND ACCELERATION. An Event of Default shall include but not be limited
to the following: (a) using your Business Loan in any manner or amount not
authorized by the Bank; (b) your failure to make any payment required under this
Agreement when due; (c) any breath, misrepresentation or other default by you,
any Guarantor, or any person or entity other than yourself providing financial
support for the Business Loan (each, an "Obligor"); (d) the insolvency of any
Obligor or the failure of any Obligor generally to pay such Obligor's debts as
such debts become due; (e) any deterioration or downgrading of your credit
rating which Bank deems significant; (f) the failure to show a profit; (g) the
closure, suspension, cancellation or termination, whether voluntary or
involuntary, and for whatever reason, or for no reason, of any deposit or credit
account at Bank of any Obligor; (h) the commencement as to any Obligor of any
voluntary or involuntary proceeding under any laws relating to bankruptcy,
insolvency, reorganization, arrangement, debt adjustment or debtor relief; (i)
the assignment by any Obligor for the benefit of such Obligor's creditors; (j)
the appointment, or commencement of any proceedings for the appointment, of a
receiver, trustee, custodian or similar official for all or substantially all of
any Obligor's property; (k) the commencement of any proceeding for the
dissolution or liquidation of any Obligor; (I) the termination or dissolution of
any Obligor such as a business entity or trust, or the death of any individual
Obligor; (m) the revocation of any guaranty given in connection with this
Agreement; (n) the failure of any Obligor to comply with any order, judgment,
injunction, decree, writ or demand of any court or other public authority; (o)
the filing or recording against any Obligor, or the property of any Obligor, of
any notice of levy, notice to withhold, or other legal process for taxes; (p)
the default by any Obligor personally liable for amounts owed hereunder on any
obligation concerning the borrowing of money; (q) any breach of the terms of any
other agreement between Bank and any Obligor, including without limitation any
security agreement, mortgage or deed of trust securing the [Line]; (r) the
issuance against any Obligor, or the property of any Obligor, of any writ of
attachment, execution, or other judicial lien; or (s) the sale or transfer of
all or substantially all of the assets of an Obligor, or a change of ownership
of any business entity Obligor of greater than 10%. Upon the occurrence of any
such Event of Default, Bank, in its discretion, may cease to advance funds
hereunder, may declare all obligations under this Agreement immediately due and
payable, and make a deduction from your Account for any payments which are past
due under this agreement; however, upon the occurrence of an Event of Default
under (h), (i) (j) or (k), all principal, interest, and other fees and charges
shall automatically become immediately due and payable. On or after the
occurrence of an Event of Default, you agree that the Bank may, at its option,
compute the interest rate at a per annum fixed rate equal to one (1) percentage
points in excess of the rate specified above, calculated from the date of
default until all amounts hereunder are paid in full.

10. COPIES OF DOCUMENTS. The Bank will charge a service charge of $30.00, plus
$30.00 per hour, for research and document retrieval if you request copies of
any document hereunder, plus postage, and a photocopy fee of $1.00 per copy.

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11. CREDIT INFORMATION. You hereby authorize the Bank to release information
concerning your credit record and Business Loan performance to other creditors,
credit bureaus, credit reporting agencies, credit reporters, Guarantors of the
Business Loan, or pursuant to an order from a governmental agency or court. You
agree that the Bank may furnish or cause to be furnished at any time such
information or material regarding your financial condition. You agree that the
Bank may share information from your credit application or credit file with
other departments of the Bank, and (to the extent permitted under fair credit
reporting laws and regulations, if applicable) with its parent, subsidiaries and
affiliated companies. You hereby further authorize the Bank to obtain credit
reports, copies of your tax returns and other information from the Internal
Revenue Service and other taxing authorities, and to take such other steps as
Bank deems appropriate to verify (and from time to time re-verify) the
information provided in connection with this Business Loan. The Bank will retain
information received in relation to this credit request as long as the Bank
deems necessary to do so.

12. ASSIGNMENT. You agree that you may not assign the Business Loan or your
rights, nor delegate your duties and obligations, under this Agreement, to any
third party. The Bank may assign the Business Loan or any of its rights
hereunder without your consent or notice to you.

13. TELEPHONE MONITORING. The Bank's supervisory personnel may listen to, or
record telephone calls between you, your employees and agents, and the Bank's
employees for the purpose of monitoring and improving the quality of service you
receive.

14. WAIVER. You agree that the Bank may act, fail to act, or delay any action to
enforce its rights hereunder, and that no such action, inaction, or delay shall
constitute or be interpreted as a waiver of its rights under this Agreement.

15. DISPUTES / JUDICIAL REFERENCE (CALIFORNIA) AND JURY TRIAL WAIVER. To the
extent permitted by law, in connection with any dispute arising in connection
with the Loan, Borrower and Bank waive any right to a trial by jury. In the
event that such waiver is not enforceable, Borrower and Bank agree that any such
dispute shall, at the written request of Borrower or Bank, be determined by
judicial reference pursuant to the state law applicable to this Agreement.
Nothing in this paragraph shall limit the right of Borrower or Bank at any time
to exercise self-help remedies. A referee selected for this purpose shall also
determine all issues relating to the applicability, interpretation and
enforceability of this paragraph. Borrower and Bank acknowledge that if a
referee is selected, then such disputes will not be decided by a jury.

16. AMENDMENT. This Agreement contains all the terms and conditions of the
parties hereto pertaining to the subject matter hereof. The Bank may change the
terms of this Agreement by providing you with 30 days' advance notice of such
change. Otherwise, no amendment, alteration or change in any term of this
Agreement shall be effective unless in writing signed by the parties hereto and
expressly providing for the amendment hereof.

17. CHOICE OF LAW. If your business is located in California, Oregon, or
Washington, this Agreement, and all related documents, will be governed by the
laws of the state of your business location. If your business is located
anywhere else, this Agreement, and all related documents, will be governed by
California law.

18. SEVERABILITY. In the event that any provision of this Agreement is found to
be illegal or unenforceable, the remainder of this Agreement shall remain in
full force and effect.

19. STATEMENTS. The Bank will mail, to your most recent address shown on its
records, a year end statement which lists the balance, rate and interest paid
for the calendar year.

20. USE OF PROCEEDS. You agree that all Business Loan proceeds will be used only
for business purposes of the borrowing entity signing this Agreement.

21. DISBURSEMENT. You authorize and direct Bank to disburse the proceeds of your
Business Loan as follows:
COMMERCIAL BANK OF CA                             $128,000.00

BIOMERICA, INC.

/s/ Zackary Irani                            /s/ Janet C. Moore
----------------------------------           -----------------------------------
Zackary Irani, Chief Executive Officer       Janet C. Moore, Secretary

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UNION BANK OF CALIFORNIA
                                 AUTHORIZATION TO OBTAIN CREDIT, GRANT SECURITY,
                                                        GUARANTEE OR SUBORDINATE

                                    RECITALS

A. BIOMERICA, INC. duly organized and existing under the laws of CALIFORNIA with
its principal place of business at 1533 MONROVIA AVENUE, NEWPORT BEACH, CA.
92663 (the "Business") desires to obtain present or future credit from, grant
security to, or give guaranties or subordinations to Union Bank of California,
N.A. ("Bank").

B. The Business desires that certain person(s) be authorized to act on its
behalf from time to time in obtaining, among other things, such credit from,
granting security to, or giving guaranties or subordinations to, Bank.

NOW, THEREFORE, IT IS RESOLVED THAT:

1.    AUTHORIZATION. Any 1 of the following is/are authorized and directed, in
      the name and on behalf of the Business, from time to time, with or without
      security, to obtain credit and other financial accommodations from Bank,
      or to give guaranties or subordinations to Bank, upon such terms as any
      such person(s) shall approve:

      ZACKARY IRANI, CHIEF EXECUTIVE OFFICER           /s/ Zackary Irani
                                                       -------------------------

      JANET C. MOORE, SECRETARY                        /s/ Janet C. Moore
                                                       -------------------------

2.    SCOPE OF AUTHORITY. Without limiting the generality of the authority
      granted, each person designated in paragraph 1 above is authorized, from
      time to time, in the name and on behalf of the Business, to:

      2.1   Incur Indebtedness To Bank. The word "Indebtedness" as used herein
            means all debts, obligations and liabilities, including without
            limitation obligations and liabilities under guaranties or
            subordinations, currently existing or now or hereafter made,
            incurred or created, whether voluntary or involuntary and however
            arising or evidenced, whether direct or acquired by assignment or
            succession, whether due or not due, absolute or contingent,
            liquidated or unliquidated, determined or undetermined, and whether
            liability is individual or joint with others, all renewals,
            extensions and modifications thereof, and all attorneys' fees and
            costs incurred in connection with the negotiation, preparation,
            workout, collection and enforcement thereof;

      2.2   Execute, deliver and endorse with respect to Indebtedness to Bank,
            promissory notes, loan agreements, drafts, guaranties,
            subordinations, applications and agreements for letters of credit,
            acceptance agreements, foreign exchange documentation, applications
            and agreements pertaining to the payment and collection of
            documents, indemnities, waivers, purchase agreements and other
            financial undertakings, leases and other documents and agreements in
            connection therewith, and all renewals, extensions or modifications
            thereof;

      2.3   Grant security interests in, pledge, assign, transfer, endorse,
            mortgage or hypothecate, and execute security or pledge agreements,
            financing statements and other security interest perfection
            documentation, mortgages and deeds of trust on, and give trust
            receipts for, any or all property of the Business as may be agreed
            upon by any officer as security for any or all Indebtedness of the
            Business or any other individual or entity ("Person"), and grant and
            execute renewals, extensions or modifications thereof;

      2.4   Sell to, or discount or rediscount with, Bank all negotiable
            instruments, including without limitation promissory notes,
            commercial paper, drafts, accounts, acceptances, leases, CHATTEL
            paper, contracts, documents, instruments or evidences of debt at any
            time owned, held or drawn by the Business, and draw, endorse or
            transfer any of such instruments or documents on behalf of the
            Business, guarantee payment or repurchase thereof, and execute and
            deliver to Bank all documents and agreements in connection
            therewith, and all renewals, extensions or modifications thereof;

      2.5   Direct the disposition of the proceeds of any credit extended by
            Bank, and deliver to Bank and accept from Bank delivery of any
            property of the Business at any time held by Bank.

                                       5

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      2.6   Specify in writing to Bank the individuals who are authorized, in
            the name of and on behalf of the Business, to request advances under
            loans or credit lines made available by Bank to the Business,
            subject to the terms thereof.

3.    WRITINGS. Any instruments, documents, agreements or other writings
      executed under or pursuant to these resolutions (collectively, the
      "Authorization") may be in such form and contain such terms and conditions
      as may be required by Bank in its sole discretion, and execution thereof
      by any officer authorized under the Authorization shall be conclusive
      evidence of such officer's and the Business's approval of the terms and
      conditions thereof.

4.    CERTIFICATION. The Secretary or any Assistant Secretary of the Business is
      hereby authorized and directed from time to time to certify to Bank a copy
      of this Authorization, the names and specimen signatures of persons
      designated in paragraph 1 above, and any modification thereof.

5.    RATIFICATION/AMENDMENT. The authority given under this Authorization shall
      be retroactive and any and all acts so authorized that are performed prior
      to the formal adoption are hereby approved and ratified. In the event two
      or more resolutions of this Business are concurrently in effect, the
      provisions of each shall be cumulative, unless the latest shall
      specifically provide otherwise. The authority given hereby shall remain in
      full force and effect, and Bank is authorized and requested to rely and
      act thereon, until Bank shall have received a certified copy of a further
      resolution of the Business amending, rescinding or revoking the
      Authorization.

6.    REQUESTS FOR CREDIT. Credit may be requested by the Business from Bank in
      writing, by telephone, or by other telecommunication method acceptable to
      Bank. The Business recognizes and agrees that Bank cannot effectively
      determine whether a specific request purportedly made by or on behalf of
      the Business is actually authorized or authentic. As it is in the
      Business's best interest that Bank extend credit in response to these
      forms of request, the Business assumes all risks regarding the validity,
      authenticity and due authorization of any request purporting to be made by
      or on behalf of the Business. The Business is hereby authorized and
      directed to repay any credit that is extended by Bank pursuant to any
      request which Bank in good faith believes to be authorized, or when the
      proceeds of any credit are deposited to the account of the Business with
      Bank, regardless of whether any individual or entity other than the
      Business may have authority to draw against such account.

7.    NO LIMITATION BY THIS AUTHORIZATION. Nothing contained in this
      Authorization shall limit or modify the authority of any person to act on
      behalf of the Business as provided by law, any agreement or authorization
      relating to the Business or otherwise.

                    CERTIFICATE OF SECRETARY OF THE BUSINESS

I hereby certify to Union Bank of California, N.A., ("Bank") that the above
Authorization is true copy of the resolution(s) of BIOMERICA, INC. a corporation
duly organized and existing under the laws of CALIFORNIA (the "Business") duly
adopted by the Board of Directors of the Business and duly entered in the
records of the Business, and that the Authorization is in conformity with
applicable law and regulation, the Articles of Incorporation and the By-Laws of
the Business and is now in full force and effect.

I also certify that the above are the names and genuine specimen signatures of
the officers of the Business authorized in paragraph 1 of the Authorization.

I agree to notify Bank in writing of any aspect of the Authorization or of any
individual holding any office set forth in this certificate immediately upon the
occurrence of any such change, and to provide Bank with a copy of modified
resolution(s) and the genuine specimen signature of any such new officer.

The authority provided for in the Authorization shall remain in full force and
effect, and Bank is authorized and requested to rely and act thereon until Bank
shall receive either a certified copy of a further resolution of this Business's
Board of Directors amending the Authorization, or a certification of a change in
the authorized officer(s).

Date: Feb 20, 2009

    SEAL

/s/ Janet C. Moore
--------------------------------             [SEAL HERE]
Secretary of BIOMERICA, INC.

/s/ Francis E. Capitano
--------------------------------
*President of BIOMERICA, INC.

* When the Secretary is among those authorized, the President should also sign
this Certificate.

                                       6

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UNION BANK OF CALIFORNIA
                                                SMALL BUSINESS BANKING AGREEMENT
                                                                     UCC SECURED
                                       BUSINESS LINE OF CREDIT NUMBER 0366422012

Date: February 13, 2009

Borrower Name: BIOMERICA, INC.

IMPORTANT INFORMATION ABOUT OPENING AN ACCOUNT:

To help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify
and record information that identifies each person and/or entity who opens an
account. What this means to you: When you open an account, we will ask for your
name, address, date of birth (for individuals) and other information that will
allow us to identify you. We may also ask to see your driver's license or other
identifying documents.

1. PROMISE TO PAY. At the times indicated below, you ("Borrower") promise to pay
to Union Bank of California, N.A., or order, the principal sum of: FOUR HUNDRED
THOUSAND AND 00/100 Dollars ( $400,000.00 ), or the credit limit amount
reflected from time to time on your line of credit account statement, or so much
thereof as is actually disbursed (including any amounts disbursed prior to
execution of this Agreement) (hereinafter, the "Line"), plus any interest and
other charges due under this Agreement, and any license, recording or
registration fees, taxes or other assessments required to establish, perfect,
protect and preserve any security interest relating to any property given as
collateral hereunder. You also promise to pay all collection costs, including
court costs and attorneys' fees, including but not limited to those incurred in
arbitration, trial court, and on any appeal and in bankruptcy court, and the
costs to Bank of the services of its in-house counsel and staff, and any other
costs the Bank may incur in enforcing this Agreement.

2. CREDIT LINE. The amount of your Line is established by the Bank and shown on
your monthly statement. The amount of credit available on your Line is reduced
by the amount of the principal balance. The Bank may, in its sole discretion
(but is not required to) approve transactions that exceed your available line
limit. You promise not to borrow more than the amount of your Line. In that
event, you agree to repay such amount immediately. You will be able to access
your Line for one year from the date the Line IS opened. One year from the date
the line IS MADE available for drawing, all principal, accrued but unpaid
interest and other charges shall become immediately due and payable. The Bank
may, at its sole option, permit the renewal of your Line for a period of time
determined by Bank at each Line maturity date. You agree to provide or cause to
be provided current financial and credit information should the Bank request
such information for renewal of your Line. In no event is Bank required to renew
your Line, however.

LINE ACCESS:
CHECK ACCESS. After your Line is opened, the Bank will provide you with Line of
Credit Checks ("Checks"). You promise that you will not permit any person not
authorized to sign on your Line to use your Checks. Only one signature of the
Borrower shall be required on any Check. Checks are not returned to you;
however, you may obtain copies of Checks subject to payment of a service charge,
as permitted by applicable law. You may place a stop payment on a Check issued
by you under the Line in accordance with the terms, and subject to the
restrictions and fees, described in the "All About Business Accounts Si
Services" previously sent to you. In some cases, the Bank may pay a Check even
if a stop payment is in effect. The Bank has no responsibility for failure of
any merchant, financial institution or any other party to accept Checks drawn by
you. If your Checks become lost or stolen, you agree to notify the Bank at once
at the address or telephone number shown on your monthly billing statement.

TELEPHONE OR PC ACCESS. You may sign up to permit advances from your Line to
your Union Bank of California checking or savings ("Account") using the
telephone or through software in a personal computer. The Bank will issue a
Personal Identification Number (PIN) and these transactions will be governed by
the terms of this Agreement, your Online Service Agreement, and/or Teleservices
Service Agreement. You agree to indemnify, defend and hold harmless the Bank
from and against all liability, loss and costs in connection with any act
resulting from telephone instructions, which Bank reasonably believes are made
by any individual authorized by the Borrower to give such instructions. This
indemnity shall survive termination of this Agreement.

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MINIMUM ADVANCES. You agree that all Line advances will be in an amount of at
least $500. The Bank may charge a fee for any advance for a lesser amount.

STATEMENTS. The Bank will mail, to your most recent address shown on its
records, a statement for each monthly billing period in which your Line has a
balance. If YOU HAVE any DISPUTE CONCERNING THE STATEMENT, YOU MUST NOTIFY THE
BANK IN WRITING AT THE ADDRESS SHOWN ON YOUR MONTHLY STATEMENT WITHIN 30 DAYS OF
THE STATEMENT MAILING DATE, AFTER WHICH TIME THE STATEMENT WILL BE CONSIDERED
CORRECT.

3. INTEREST RATE, DAILY PERIODIC INTEREST RATE. The interest rate for your Line
is the prime rate in effect on the first day of your billing period, as
published in the Wall Street Journal Prime West Coast Edition, plus a spread of
1.00% ("Spread"). If more than one prime rate is published, the Bank may choose
the highest rate. If the Wall Street Journal Prime West Coast Edition ceases to
publish, or ceases to publish a West Coast Edition, or to publish a prime rate,
the Bank may use the prime rate published in any other newspaper of general
circulation, or may substitute a similar reference rate at its sole discretion.
The Bank will provide notice to you in such event. The daily periodic interest
rate is the interest rate of your Line divided by 100, divided by 365. You agree
this interest rate is conditioned upon payments being made by monthly automatic
deduction from your Account. All advances and other debits to your Line,
excluding any periodic interest charges or late payment service charges on prior
balances, are subject to interest charges from the date posted to your Line
until paid. Your periodic interest charge is computed by multiplying the
outstanding balance of your Line each day of the billing period by the daily
periodic interest rate described above, and adding the amounts so determined for
all days in the billing period. The outstanding balance for each day is
determined by deducting from the beginning balance for that day all payments and
other credits, and adding thereto all advances and other debits, exclusive of
periodic interest charges or late charges on prior balances. Your monthly
periodic interest charge is the sum of the daily periodic interest charges
assessed during the monthly billing period.

PAYMENTS. You agree to pay your balance in the manner herein described. If there
are any outstanding balances under the Line, you agree to pay at least the
minimum payment shown on your statement. Your minimum monthly payment will be
the sum of (i) the amount of interest charge for the billing period, plus (ii)
any amount past due, plus (iii) any fees, late charges and/or out-of-pocket
expenses assessed hereunder. If the sum of (i), (ii) and (iii) is less than $100
(the "Shortfall"), the minimum payment shall be $100, and the difference between
$100 and the Shortfall will be applied against principal outstanding. IF YOUR
LINE IS NOT RENEWED AS OF THE LAST DAY OF THE TERM OF YOUR LINE, YOU AGREE THAT
THE ENTIRE UNPAID BALANCE OF YOUR LINE, INCLUDING UNPAID FEES AND CHARGES, (I)
WILL BE DUE AND PAYABLE; AND (II) THE ACCRUED INTEREST WILL CONTINUE TO ACCRUE
AND BE DEDUCTED FROM YOUR DEPOSIT ACCOUNT UNTIL SUCH TIME AS THE BANK DEDUCTS
THE FULL PRINCIPAL AMOUNT OWED. You may make any prepayments of principal or
interest at any time, without premium or penalty. Payments or prepayments, as
the case may be, shall be applied to any outstanding fees, late charges,
out-of-pocket expenses, accrued interest then owing, and principal outstanding,
in whichever order Bank may select. The Bank may place a hold in the amount of
your payment against your Line's available credit. The hold may be placed for
any period of time (to be selected by Bank) not to exceed nine (9) business days
(Monday through Friday, excluding Bank designated holidays) ("Business Days").
You promise not to use any proceeds of the Line to pay any amount due hereunder.
Payments may not be made via a third party check.

4. AUTOMATIC DEDUCTION. You agree that each payment of fees, out-of-pocket
expenses incurred by the Bank to activate your Business Line of Credit, late
charges, interest, and principal owing pursuant to this Agreement shall be made
by automatic deduction from your Account. Alternatively, fees and/or
out-of-pocket expenses may be charged to your Business Line of Credit. If you
make a payment using a check, or any method other than automatic deduction from
your Account, and the payment is sufficient to cover your next minimum payment
due, and (1) your account is a Term Loan, the automatic deduction will not
occur; or (2) your Account is a Line, the automatic deduction from your Account
for that payment will occur. If your Account is closed for any reason, or if
there are insufficient funds in the Account to pay the sum due, the Bank may
terminate payments by automatic deduction and increase the interest rate on your
Business Line of Credit by one (1) percentage points. You agree that the Bank
may also charge any other deposit account held in the same legal ownership to
recover any sums owing.

                                       8

<PAGE>

Automatic deduction from account number 0670043053
Account Name BIOMERICA, INC.

<TABLE>
<S>            <C>
5. FEES. You agree to pay Bank the following initial fees:
        o    Loan Fee equal to....................       $2,000.00    o     Appraisal Fee equal to ..............         $ N/A
        o    Documentation Fee equal to ..........          $75.00    o     Flood Determination Fee equal to ....         $ N/A
        o    Recording Fee equal to ..............          $ N/A     o     Title Fee equal to...................         $ N/A
        o    Insurance Premium equal to ..........          $ N/A     o     Escrow Fee equal to .................         $ N/A
        o    Cal Cap Fee Paid ....................          $ N/A     o     Reconveyance Fee equal to ...........         $ N/A
        0    Cal Cap Fee Financed ................          $ N/A     o     Fee equal to ........................         $ N/A
        o    Processing Fee equal to .............         $100.00    o     Fee equal to ........................         $ N/A
        o    Other Fee equal to ..................          $ N/A
</TABLE>

The foregoing fees may be treated as a principal advance from the Line. You
agree to pay other charges as disclosed to you separately. If the Bank agrees to
renew your Line, you agree as a condition of renewal to pay an annual fee equal
to the above loan fee, or as otherwise disclosed by Bank at that time. The Bank
may charge an annual fee before a renewal decision has been made. If the Line
subsequently is not renewed, the fee will be returned to you. ALL FEES AND
CHARGES ARE NONREFUNDABLE IN THE EVENT OF CANCELLATION OF YOUR BUSINESS LINE OF
CREDIT FOR ANY REASON.

6. LATE PAYMENTS. If your BUSINESS LINE OF CREDIT was established in California
or Washington, if the Bank receives a payment more than 10 days after the due
date shown on your statement, you agree to pay a fee of 5% of the amount past
due, or $10.00, whichever is greater.

7. COLLATERAL. To secure the payment of your debt and the performance of your
obligations under this Agreement, you hereby grant the Bank a security interest
under the Uniform Commercial Code adopted in the state in which your Business
Line of Credit was established in the assets described below (the "Collateral"),
and you further agree to execute such documents or provide collateral detail as
Bank may require to perfect or protect such security interest.

For value received and in consideration of advances, present and future, and
other obligations, Debtor hereby grants a continuing security interest in, and
assigns and transfers to Bank the following personal property, whether or not
delivered to or in the possession or control of Bank or its agents, and whether
now or hereafter owned or in existence, and all proceeds thereof (hereinafter
called "Collateral"):

All present and hereafter acquired personal property including but not limited
to all accounts, chattel paper, instruments, contract rights, general
intangibles, goods, equipment, inventory, documents, certificates of title,
deposit accounts, returned or repossessed goods, fixtures, commercial tort
claims, insurance claims, rights and policies, letter of credit rights,
investment property, supporting obligations, and the proceeds, products, parts,
accessories, attachments, accessions, replacements, substitutions, additions,
and improvements of or to each of the foregoing.

If Borrower is a registered entity -- Borrower is organized under the laws of
California, and Borrower will not change the state of its organization without
Banks prior written consent.

If Borrower is a general partnership or other non-registered entity -- Borrower
has its principal place of business in California, and Borrower will not change
the state of its principal place of business without Banks prior written
consent.

In connection with the granting of such security interest, you hereby make the
following representations, warranties and covenants to Bank: (a) the Collateral
is now and at all times hereafter will be of good and merchantable quality, free
from defects; (b) the Collateral shall be kept in good operating condition and
repair, so that its value and operating efficiency shall at all times be
maintained and preserved; (c) you agree to keep correct and accurate records
itemizing and describing the kind, type, quality and quantity of the Collateral,
and its cost, all of which records shall be available for inspection by the
Bank; and (d) the Collateral is owned by you, and is and shall remain free from
all liens, claims, encumbrances or security interests (except in favor of, or as
approved by, Bank). The Bank additionally has a general lien arising by
operation of law on any of your property in its possession. The Bank does not
waive any other lien it may have through operation of law, nor its right of
setoff against any property you may have with it.

                                       9

<PAGE>

Borrower hereby appoints Bank the true and lawful attorney of Borrower and
authorizes Bank to perform any and all acts which Bank in good faith deems
necessary for the protection and preservation of Collateral or its value or
Bank's security interest therein, including transferring any Collateral into its
own name and receiving the Income thereon as additional security hereunder. Bank
does not assume any of the obligations arising under the Collateral.

8. COVENANTS. For as long as the Business Line of Credit is outstanding, you
agree to: (a) give written notice to Bank within 15 days of the occurrence of
any of the following: (i) any Event of Default or any event which, upon notice
or lapse of time, or both, would become an Event of Default; or (ii) any change
in your name, business structure, state of organization, principal place of
business (if a general partnership or other non-registered entity), or the
location of any collateral for the Business Line of Credit, or the establishment
of any new place of business or the discontinuance of any existing place of
business; (b) furnish Bank upon its request with income statements, balance
sheets, statements of retained earnings, tax returns, and any other financial
information requested by Bank from time to time; (c) maintain adequate books,
accounts and records and permit employees or agents of Bank at any reasonable
time to inspect your properties, and to examine such books, accounts and records
and make copies and memoranda thereof; (d) not create, assume or suffer to exist
any lien on any real or personal property which is the subject of a security
interest in favor of the Bank, or upon the income or profits thereof, except in
favor of, or as approved by, Bank; (e) not engage in any business activities or
operations substantially different from or unrelated to your present business
activities and operations; (f) not create, incur, assume or permit to exist any
indebtedness for borrowed money other than loans from the Bank, except
obligations now existing as shown on any credit application to Bank or the
personal financial statement or data submitted with such application, or sell or
transfer any accounts or notes receivable or any money due or to become due; (g)
not make any loans or advances to any person or other entity other than in the
ordinary and normal course of its business as now conducted; or guarantee or
otherwise become liable upon the obligation of any person or other entity; and
(h) maintain and keep in force insurance with companies acceptable to Bank and
in such amounts and types, including without limitation fire and public
liability insurance, as is usual in the business carried on by you, or as Bank
may reasonably request, such insurance policies to be in form and substance
satisfactory to Bank.

9. OUT OF DEBT PROVISION. Maintain for not less than 30 (thirty) consecutive
days in every calendar year, a period in which all amounts due under revolving
credit agreements with Bank are at a zero balance.

10. AGREEMENT TO PROVIDE INSURANCE. You understand and agree to furnish proof of
insurance as requested by Bank, and not limited to fire and extended coverage
insurance, prior to the funding of this credit. The proof of insurance must be
acceptable to Bank, including naming Bank as loss payee/lien holder, or, if
applicable, as additional insured.

Proof of insurance may be given to a Bank branch representative or mailed to:
                           Union Bank of California, N.A.
                           P.O. Box 129001
                           San Diego, CA 92112

Insurance requirements remain in force for the term of the loan.

Unless you provide us with evidence of the insurance coverage as required by our
contract or loan agreement, we may purchase insurance at your expense to protect
our interest. This insurance may, but need not, also protect your interest. If
the collateral becomes damaged, the coverage we purchase may not pay any claim
you make or any claim made against you. You may later cancel this coverage by
providing evidence that you have obtained property coverage elsewhere.

You are responsible for the cost of any insurance purchased by us. The cost of
this insurance may be added to your contract or loan balance. If the cost is
added to your contract or loan balance, the interest rate on the underlying
contract or loan will apply to this added amount. The effective date of coverage
may be the date your prior coverage lapsed or the date you failed to provide
proof of coverage.

The coverage we purchase may be considerably more expensive than insurance you
can obtain on your own and may not satisfy any need for property damage coverage
or any mandatory liability insurance requirements imposed by applicable law.

                                       10

<PAGE>

11. CANCELLATION AND SUSPENSION. The Bank may cancel your Line by giving you
written notice at the address shown for you on the Bank's records. If fraud is
suspected, no advance notice of cancellation need be given to you, however, the
Bank will contact you following such cancellation. Anyone obligated on the Line
may also cancel the Line by writing to the Bank at the address shown on your
monthly statement. If your Line is canceled, the entire balance, including
accrued and unpaid interest, and all fees and charges, and all amounts for
Checks not yet billed, shall become immediately due and payable upon the Bank's
demand. Checks written on your Line and received by the Bank after your Line is
canceled will not be paid by the Bank.

12. DEFAULT AND ACCELERATION. An Event of Default shall include but not be
limited to the following: (a) using your Business Line of Credit in any manner
or amount not authorized by the Bank; (b) your failure to make any payment
required under this Agreement when due; (c) any breach, misrepresentation or
other default by you, any Guarantor, or any person or entity other than yourself
providing financial support for the Business Line of Credit (each, an
"Obligor"); (d) the insolvency of any Obligor or the failure of any Obligor
generally to pay such Obligor's debts as such debts become due; (e) any
deterioration or downgrading of your credit rating which Bank deems significant;
(f) the failure to show a profit; (g) the closure, suspension, cancellation or
termination, whether voluntary or involuntary, and for whatever reason, or for
no reason, of any deposit or credit account at Bank of any Obligor; (h) the
commencement as to any Obligor of any voluntary or involuntary proceeding under
any laws relating to bankruptcy, insolvency, reorganization, arrangement, debt
adjustment or debtor relief; (i) the assignment by any Obligor for the benefit
of such Obligor's creditors; (j) the appointment, or commencement of any
proceedings for the appointment, of a receiver, trustee, custodian or similar
official for all or substantially all of any Obligor's property; (k) the
commencement of any proceeding for the dissolution or liquidation of any
Obligor; (I) the termination or dissolution of any Obligor such as a business
entity or trust, or the death of any individual Obligor; (m) the revocation of
any guaranty given in connection with this Agreement; (n) the failure of any
Obligor to comply with any order, judgment, injunction, decree, writ or demand
of any court or other public authority; (o) the filing or recording against any
Obligor, or the property of any Obligor, of any notice of levy, notice to
withhold, or other legal process for taxes; (p) the default by any Obligor
personally liable for amounts owed hereunder on any obligation concerning the
borrowing of money; (q) any breach of the terms of any other agreement between
Bank and any Obligor, including without limitation any security agreement,
mortgage or deed of trust securing the [Line); (r) the issuance against any
Obligor, or the property of any Obligor, of any writ of attachment, execution,
or other judicial lien; or (s) the sale or transfer of all or substantially all
of the assets of an Obligor, or a change of ownership of any business entity
Obligor of greater than 10%. Upon the occurrence of any such Event of Default,
Bank, in its discretion, may cease to advance funds hereunder, may declare all
obligations under this Agreement immediately due and payable, and make a
deduction from your Account for any payments which are past due under this
agreement; however, upon the occurrence of an Event of Default under (h), (i)
(j) or (k), all principal, interest, and other fees and charges shall
automatically become immediately due and payable. On or after the occurrence of
an Event of Default, you agree that the Bank may, at its option, compute the
interest rate at a per annum fixed rate equal to one (1) percentage points in
excess of the rate specified above, calculated from the date of default until
all amounts hereunder are paid in full.

13. COPIES OF DOCUMENTS. The Bank will charge a service charge of $30.00, plus
$30.00 per hour, for research and document retrieval if you request copies of
any document hereunder, plus postage, and a photocopy fee of $1,00 per copy.

14. CREDIT INFORMATION. You hereby authorize the Bank to release information
concerning your credit record and Business Line of Credit performance to other
creditors, credit bureaus, credit reporting agencies, credit reporters,
Guarantors of the Business Line of Credit, or pursuant to an order from a
governmental agency or court. You agree that the Bank may furnish or cause to be
furnished at any time such information or material regarding your financial
condition. You agree that the Bank may share information from your credit
application or credit file with other departments of the Bank, and (to the
extent permitted under fair credit reporting laws and regulations, if
applicable) with its parent, subsidiaries and affiliated companies. You hereby
further authorize the Bank to obtain credit reports, copies of your tax returns
and other information from the Internal Revenue Service and other taxing
authorities, and to take such other steps as Bank deems appropriate to verify
(and from time to time re-verify) the information provided in connection with
this Business Line of Credit. The Bank will retain information received in
relation to this credit request as long as the Bank deems necessary to do so.

                                       11

<PAGE>

15. ASSIGNMENT. You agree that you may not assign the Business Line of Credit or
your rights, nor delegate your duties and obligations, under this Agreement, to
any third party. The Bank may assign the Business Line of Credit or any of its
rights hereunder without your consent or notice to you.

16. TELEPHONE MONITORING. The Bank's supervisory personnel may listen to, or
record telephone calls between you, your employees and agents, and the Bank's
employees for the purpose of monitoring and improving the quality of service you
receive.

17. WAIVER. You agree that the Bank may act, fail to act, or delay any action to
enforce its rights hereunder, and that no such action, inaction, or delay shall
constitute or be interpreted as a waiver of its rights under this Agreement.

18. DISPUTES / JUDICIAL REFERENCE (CALIFORNIA) AND JURY TRIAL WAIVER. To the
extent permitted by law, in connection with any dispute arising in connection
with the Loan, Borrower and Bank waive any right to a trial by jury. In the
event that such waiver is not enforceable, Borrower and Bank agree that any such
dispute shall, at the written request of Borrower or Bank, be determined by
judicial reference pursuant to the state law applicable to this Agreement.
Nothing in this paragraph shall limit the right of Borrower or Bank at any time
to exercise self-help remedies. A referee selected for this purpose shall also
determine all issues relating to the applicability, interpretation and
enforceability of this paragraph. Borrower and Bank acknowledge that if a
referee is selected, then such disputes will not be decided by a jury.

19. AMENDMENT. This Agreement contains all the terms and conditions of the
parties hereto pertaining to the subject matter hereof. The Bank may change the
terms of this Agreement by providing you with 30 days' advance notice of such
change. Otherwise, no amendment, alteration or change in any term of this
Agreement shall be effective unless in writing signed by the parties hereto and
expressly providing for the amendment hereof.

20. CHOICE OF LAW. If your business is located in California, Oregon, or
Washington, this Agreement, and all related documents, will be governed by the
laws of the state of your business location. If your business is located
anywhere else, this Agreement, and all related documents, will be governed by
California law.

21. SEVERABILITY. In the event that any provision of this Agreement is found to
be illegal or unenforceable, the remainder of this Agreement shall remain in
full force and effect.

22. USE OF PROCEEDS. You agree that all Business Line of Credit proceeds will be
used only for business purposes of the borrowing entity signing this Agreement.

BIOMERICA, INC.

/s/ Zackary Irani                            /s/ Janet C. Moore
-----------------------------------          -----------------------------------
Zackary Irani, Chief Executive Officer       Janet C. Moore, Secretary

                                       12

<PAGE>
UNION BANK OF CALIFORNIA

                                 AUTHORIZATION TO OBTAIN CREDIT, GRANT SECURITY,
                                                        GUARANTEE OR SUBORDINATE

                                    RECITALS

A. BIOMERICA, INC. duly organized and existing under the laws of California with
its principal place of business at 1533 MONROVIA AVENUE, NEWPORT BEACH, CA.
92663 (the "Business") desires to obtain present or future credit from, grant
security to, or give guaranties or subordinations to Union Bank of California,
N.A. ("Bank").

B. The Business desires that certain person(s) be authorized to act on its
behalf from time to time in obtaining, among other things, such credit from,
granting security to, or giving guaranties or subordinations to, Bank.

NOW, THEREFORE, IT IS RESOLVED THAT:

1.    AUTHORIZATION. Any 1 of the following is/are authorized and directed, in
      the name and on behalf of the Business, from time to time, with or without
      security, to obtain credit and other financial accommodations from Bank,
      or to give guaranties or subordinations to Bank, upon such terms as any
      such person(s) shall approve:

      ZACKARY IRANI, CHIEF EXECUTIVE OFFICER           /s/ Zackary Irani
                                                       -------------------------

      JANET C. MOORE, SECRETARY                        /s/ Janet C. Moore
                                                       -------------------------

2.    SCOPE OF AUTHORITY. Without limiting the generality of the authority
      granted, each person designated in paragraph 1 above is authorized, from
      time to time, in the name and on behalf of the Business, to:

      2.1   Incur Indebtedness To Bank. The word "Indebtedness" as used herein
            means all debts, obligations and liabilities, including without
            limitation obligations and liabilities under guaranties or
            subordinations, currently existing or now or hereafter made,
            incurred or created, whether voluntary or involuntary and however
            arising or evidenced, whether direct or acquired by assignment or
            succession, whether due or not due, absolute or contingent,
            liquidated or unliquidated, determined or undetermined, and whether
            liability is individual or joint with others, all renewals,
            extensions and modifications thereof, and all attorneys' fees and
            costs incurred in connection with the negotiation, preparation,
            workout, collection and enforcement thereof;

      2.2   Execute, deliver and endorse with respect to Indebtedness to Bank,
            promissory notes, loan agreements, drafts, guaranties,
            subordinations, applications and agreements for letters of credit,
            acceptance agreements, foreign exchange documentation, applications
            and agreements pertaining to the payment and collection of
            documents, indemnities, waivers, purchase agreements and other
            FINANCIAL undertakings, leases and other documents and agreements in
            connection therewith, and all renewals, extensions or modifications
            thereof;

      2.3   Grant security interests in, pledge, assign, transfer, endorse,
            mortgage or hypothecate, and execute security or pledge agreements,
            financing statements and other security interest perfection
            documentation, mortgages and deeds of trust on, and give trust
            receipts for, any or all property of the Business as may be agreed
            upon by any officer as security for any or all Indebtedness of the
            Business or any other individual or entity ("Person"), and grant and
            execute renewals, extensions or modifications thereof;

      2.4   Sell to, or discount or rediscount with, Bank all negotiable
            instruments, including without limitation promissory notes,
            commercial paper, drafts, accounts, acceptances, leases, chattel
            paper, contracts, documents, instruments or evidences of debt at any
            time owned, held or drawn by the Business, and draw, endorse or
            transfer any of such instruments or documents on behalf of the
            Business, guarantee payment or repurchase thereof, and execute and
            deliver to Bank all documents and agreements in connection
            therewith, and all renewals, extensions or modifications thereof;

      2.5   Direct the disposition of the proceeds of any credit extended by
            Bank, and deliver to Bank and accept from Bank delivery of any
            property of the Business at any time held by Bank.

                                       12

<PAGE>

      2.6   Specify in writing to Bank the individuals who are authorized, in
            the name of and on behalf of the Business, to request advances under
            loans or credit lines made available by Bank to the Business,
            subject to the terms thereof.

3.    WRITINGS. Any instruments, documents, agreements or other writings
      executed under or pursuant to these resolutions (collectively, the
      "Authorization") may be in such form and contain such terms and conditions
      as may be required by Bank in its sole discretion, and execution thereof
      by any officer authorized under the Authorization shall be conclusive
      evidence of such officer's and the Business's approval of the terms and
      conditions thereof.

4.    CERTIFICATION. The Secretary or any Assistant Secretary of the Business is
      hereby authorized and directed from time to time to certify to Bank a copy
      of this Authorization, the names and specimen signatures of persons
      designated in paragraph 1 above, and any modification thereof.

5.    Ratification/Amendment. The authority given under this Authorization shall
      be retroactive and any and all acts so authorized that are performed prior
      to the formal adoption are hereby approved and ratified. In the event two
      or more resolutions of this Business are concurrently in effect, the
      provisions of each shall be cumulative, unless the latest shall
      specifically provide otherwise. The authority given hereby shall remain in
      full force and effect, and Bank is authorized and requested to rely and
      act thereon, until Bank shall have received a certified copy of a further
      resolution of the Business amending, rescinding or revoking the
      Authorization.

6.    REQUESTS FOR CREDIT. Credit may be requested by the Business from Bank in
      writing, by telephone, or by other telecommunication method acceptable to
      Bank. The Business recognizes and agrees that Bank cannot effectively
      determine whether a specific request purportedly made by or on behalf of
      the Business is actually authorized or authentic. As it is in the
      Business's best interest that Bank extend credit in response to these
      forms of request, the Business assumes all risks regarding the validity,
      authenticity and due authorization of any request purporting to be made by
      or on behalf of the Business. The Business is hereby authorized and
      directed to repay any credit that is extended by Bank pursuant to any
      request which Bank in good faith believes to be authorized, or when the
      proceeds of any credit are deposited to the account of the Business with
      Bank, regardless of whether any individual or entity other than the
      Business may have authority to draw against such account.

7.    NO LIMITATION BY THIS AUTHORIZATION. Nothing contained in this
      Authorization shall limit or modify the authority of any person to act on
      behalf of the Business as provided by law, any agreement or authorization
      relating to the Business or otherwise.

                    CERTIFICATE OF SECRETARY OF THE BUSINESS

I hereby certify to Union Bank of California, N.A., ("Bank") that the above
Authorization is true copy of the resolution(s) of BIOMERICA, INC. a corporation
duly organized and existing under the laws of CALIFORNIA (the "Business") duly
adopted by the Board of Directors of the Business and duly entered in the
records of the Business, and that the Authorization is in conformity with
applicable law and regulation, the Articles of Incorporation and the By-Laws of
the Business and is now in full force and effect.

I also certify that the above are the names and genuine specimen signatures of
the officers of the Business authorized in paragraph 1 of the Authorization.

I agree to notify Bank in writing of any aspect of the Authorization or of any
individual holding any office set forth in this certificate immediately upon the
occurrence of any such change, and to provide Bank with a copy of modified
resolution(s) and the genuine specimen signature of any such new officer.

The authority provided for in the Authorization shall remain in full force and
effect, and Bank is authorized and requested to rely and act thereon until Bank
shall receive either a certified copy of a further resolution of this Business's
Board of Directors amending the Authorization, or a certification of a change in
the authorized officer(s).

Date: Feb 20, 2009

    SEAL

/s/ Janet C. Moore
--------------------------------             [SEAL HERE]
Secretary of BIOMERICA, INC.

/s/ Francis E. Capitano
--------------------------------
*President of BIOMERICA, INC.

* When the Secretary is among those authorized, the President should also sign
this Certificate.

                                       13Filed by sedaredgar.com - Global Health Ventures Inc.  - Exhibit 10.6

THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE
“SUBSCRIPTION AGREEMENT”) RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE
TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO
REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“1933 ACT”). 

NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT
RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES
LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR
INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT
IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.

UNLESS OTHERWISE PERMITTED UNDER SECURITIES LEGISLATION, THE
HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES IN OR FROM BRITISH
COLUMBIA UNLESS THE CONDITIONS IN SECTION 12(2) OF BC INSTRUMENT 51-509 ISSUERS
QUOTED IN THE U.S. OVER-THE-COUNTER MARKET ARE MET.

CONFIDENTIAL
PRIVATE PLACEMENT SUBSCRIPTION
AGREEMENT

	TO: 	Global Health Ventures Inc. (the
      “Company”) 
	  	1517 West 58th Avenue 
	  	Vancouver, British Columbia, Canada V6P 1W6
  

PURCHASE OF UNITS

1.       
     Subscription

1.1          
On the basis of the representations and warranties and subject to the terms and
conditions set forth herein, the undersigned (the “Subscriber”) hereby
irrevocably subscribes for and agrees to purchase units (the “Units”) at a price
of $0.25 per Unit (such subscription and agreement to purchase being the
“Subscription”), for an aggregate purchase price as set out on the signature
page of this Subscription Agreement (the “Subscription Proceeds”) which is
tendered herewith, on the basis of the representations and warranties and
subject to the terms and conditions set forth herein.

1.2          
Each Unit will consist of one common share in the capital of the Company (each,
a “Share”) and one common share purchase warrant (each, a “Warrant”) subject to
adjustment. Each Warrant shall be non-transferable. Each whole Warrant shall
entitle the holder thereof to purchase one common share in the capital of the
Company (each, a “Warrant Share”), as presently constituted, for a period of
<> years commencing from the Closing Date (defined herein) at an exercise
price of $0.40 per Warrant Share. Certificates representing the Warrants will be
in the form attached as Exhibit A hereto. The Shares, Warrants and Warrant
Shares are referred to herein as the “Securities”.

1.3          
The Company hereby agrees to sell, on the basis of the representations and
warranties and subject to the terms and conditions set forth herein, to the
Subscriber the Units. Subject to the terms hereof, the Subscription Agreement
will be effective upon its acceptance by the Company.

- 2 -

1.4          
Unless otherwise provided, all dollar amounts referred to in this Subscription
Agreement are in lawful money of the United States of America.

2.            
Payment

2.1          
The Subscription Proceeds must accompany this Subscription and shall be paid by
certified cheque or bank draft drawn on a Canadian chartered bank, and made
payable and delivered to the Company. Alternatively, the Subscription Proceeds
may be wired to the Company or its lawyers pursuant to wiring instructions that
will be provided to the Subscriber upon request. If the funds are wired to the
Company’s lawyers, the Subscriber irrevocably authorizes such lawyers to
immediately deliver the funds to the Company upon receipt of the funds from the
Subscriber even if the Subscription has not been consummated.

2.2          
The Subscriber acknowledges and agrees that this Subscription Agreement, the
Subscription Proceeds and any other documents delivered in connection herewith
will be held on behalf of the Company. In the event that this Subscription
Agreement is not accepted by the Company for whatever reason, which the Company
expressly reserves the right to do, at any time before December 31, 2008, this
Subscription Agreement, the Subscription Proceeds (without interest thereon) and
any other documents delivered in connection herewith will be returned to the
Subscriber at the address of the Subscriber as set forth in this Subscription
Agreement.

3.           
 Documents Required from Subscriber

3.1          
The Subscriber must complete, sign and return to the Company the following
documents:

	 	(a) 	
      two (2) executed copies of this Subscription Agreement;
      and

	 	 	 
	 	(b) 	
      if the Subscriber is investing less than CDN$150,000, an
      Investor Questionnaire (the “Questionnaire”) attached as Exhibit B
      hereto.

3.2          
The Subscriber shall complete, sign and return to the Company as soon as
possible, on request by the Company, any additional documents, questionnaires,
notices and undertakings as may be required by any regulatory authorities and
applicable law.

4.            
Conditions and Closing

4.1          
Closing of the offering of the Units (the “Closing”) shall occur on or before
December 31, 2008, or on such other date as may be determined by the Company
(the “Closing Date”) in its sole discretion. The Company may, at its discretion,
elect to close the offering in one or more closings, in which event the Company
may agree with one or more subscribers (including the Subscriber hereunder) to
complete delivery of the Shares and the Warrants to such subscriber(s) against
payment therefor at any time on or prior to the Closing Date.

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

5.            
Acknowledgements and Agreements of Subscriber

5.1          
The Subscriber acknowledges and agrees that:

	 	(a) 	
      none of the Securities have been or will be registered
      under the 1933 Act, or under any state securities or “blue sky” laws of
      any state of the United States, and, unless so registered, may not be
      offered or sold in the United States or, directly or indirectly, to U.S.
      Persons, as that term is defined in Regulation S under the 1933 Act
      (“Regulation S”), except in accordance with the provisions of Regulation
      S, pursuant to an effective registration statement under the 1933 Act, or
      pursuant to an exemption from, or in a transaction not subject to, the
      registration requirements of

- 3 -

	 		
      the 1933 Act and in each case only in accordance with
      applicable state and provincial securities laws;

	 	 	 
	 	(b) 	
      the Subscriber acknowledges that the Company has not
      undertaken, and will have no obligation, to register any of the Securities
      under the 1933 Act or any other securities legislation;

	 	 	 
	 	(c) 	
      by completing the Questionnaire, if applicable, the
      Subscriber is representing and warranting that the Subscriber satisfies
      one of the categories of registration and prospectus exemptions provided
      in National Instrument 45-106 (“NI 45-106”) adopted by the British
      Columbia Securities Commission (the “BCSC”) and other provincial
      securities commissions;

	 	 	 
	 	(d) 	
      the decision to execute this Subscription Agreement and
      acquire the Securities agreed to be purchased hereunder has not been based
      upon any oral or written representation as to fact or otherwise made by or
      on behalf of the Company and such decision is based entirely upon a review
      of any public information which has been filed by the Company with the
      Securities and Exchange Commission (“SEC”) in compliance, or intended
      compliance, with applicable securities legislation;

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

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

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

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

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

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

- 4 -

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

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

	 	 	 	 
	 		(ii) 	
      applicable resale restrictions;

	 	 	 	 
	 	(l) 	
      in addition to resale restrictions imposed under U.S.
      securities laws, there are additional restrictions on the Subscriber’s
      ability to resell in Canada any of the Securities under the Securities Act
      (British Columbia) and Multilateral Instrument 51-509 adopted by the
      BCSC;

	 	 	 	 
	 	(m) 	
      the Subscriber consents to the placement of a legend on
      any certificate or other document evidencing any of the Securities to the
      effect that such securities have not been registered under the 1933 Act or
      any state securities or “blue sky” laws and setting forth or referring to
      the restrictions on transferability and sale thereof contained in this
      Subscription Agreement such legend to be substantially as
  follows:

		
      “THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE
      "SUBSCRIPTION AGREEMENT") RELATES TO AN OFFERING OF SECURITIES IN AN
      OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED
      HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF
      1933, AS AMENDED (THE "1933 ACT"). 
	
	 	
       
	 
		
      NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION
      AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S.
      STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR
      SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS
      DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S
      UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
      TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT
      AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
      IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE
      CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. 
	
	 	
       
	 
		
      UNLESS OTHERWISE PERMITTED UNDER SECURITIES LEGISLATION,
      THE HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES IN OR FROM
      BRITISH COLUMBIA UNLESS THE CONDITIONS IN SECTION 12(2) OF BC INSTRUMENT
      51-509 ISSUERS QUOTED IN THE U.S. OVER-THE-COUNTER MARKET ARE MET. 
	

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

- 5 -

	 	(o) 	
      neither the SEC nor any other securities commission or
      similar regulatory authority has reviewed or passed on the merits of any
      of the Securities and no documents in connection with the sale of the
      Securities hereunder have been reviewed by the SEC or any state securities
      administrators;

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

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

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

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

6.            
Representations, Warranties and Covenants of the
Subscriber

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

	 	(a) 	
      the Subscriber is not a U.S. Person and the Subscriber is
      not acquiring the Securities for the account or benefit of, directly or
      indirectly, any U.S. Person;

	 	 	 	 	 
	 	(b) 	
      the Subscriber is resident in the jurisdiction set out
      under the heading “Name and Address of Subscriber” on the signature page
      of this Subscription Agreement;

	 	 	 	 	 
	 	(c) 	
      the Subscriber:

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

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

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

	 	 	 	 	 
	 		(iv) 	
      the purchase of the Securities by the Subscriber does not
      trigger:

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

	 	 	 	 	 
	 			B. 	
      any continuous disclosure reporting obligation of the
      Company in the International Jurisdiction; and

- 6 -

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

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

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

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

	 	 	 
	 	(g) 	
      the Subscriber has received and carefully read this
      Subscription Agreement;

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

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

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

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

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

	 	 	 
	 	(m) 	
      the Subscriber is purchasing the Securities as principal
      for investment only and not with a view to, or for, resale, distribution
      or fractionalization thereof, in whole or in part, and, in particular, it
      has no intention to distribute either directly or indirectly any of the
      Securities in the United States or to U.S. Persons;

	 	 	 
	 	(n) 	
      the Subscriber is outside the United States when
      receiving and executing this Subscription Agreement;

	 	 	 
	 	(o) 	
      the Subscriber understands and agrees that offers and
      sales of any of the Securities prior to the expiration of the period
      specified in Regulation S (such period hereinafter referred to as the
      “Distribution Compliance Period”) shall only be made in compliance with
      the safe harbor

- 7 -

	 		
      provisions set forth in Regulation S, pursuant to the
      registration provisions of the 1933 Act or an exemption therefrom, and
      that all offers and sales after the Distribution Compliance Period shall
      be made only in compliance with the registration provisions of the 1933
      Act or an exemption therefrom and in each case only in accordance with
      applicable state and provincial securities laws;

	 	 	 	 
	 	(p) 	
      the Subscriber understands and agrees not to engage in
      any hedging transactions involving any of the Securities unless such
      transactions are in compliance with the provisions of the 1933 Act and in
      each case only in accordance with applicable state and provincial
      securities laws;

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

	 	 	 	 
	 	(r) 	
      the Subscriber is not an underwriter of, or dealer in,
      the common shares of the Company, nor is the Subscriber participating,
      pursuant to a contractual agreement or otherwise, in the distribution of
      the Securities;

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

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

	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase any of the
      Securities,

	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of any of
      the Securities,

	 	 	 	 
	 		(iii) 	
      as to the future price or value of any of the Securities,
      or

	 	 	 	 
	 		(iv) 	
      that any of the Securities will be listed and posted for
      trading on any stock exchange or automated dealer quotation system or that
      application has been made to list and post any of the Securities of the
      Company on any stock exchange or automated dealer quotation system;
    and

	 	 	 	 
	 	(u) 	
      the Subscriber acknowledges and agrees that the Company
      shall not consider the Subscriber’s Subscription for acceptance unless the
      undersigned provides to the Company, along with an executed copy of this
      Subscription Agreement:

	 	 	 	 
	 		(i) 	
      a fully completed and executed Questionnaire in the form
      attached hereto as Exhibit B, and

	 	 	 	 
	 		(ii) 	
      such other supporting documentation that the Company or
      its legal counsel may request to establish the Subscriber’s qualification
      as a qualified investor.

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

- 8 -

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

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

8.            
Acknowledgement and Waiver

8.1          
The Subscriber has acknowledged that the decision to acquire the Securities was
solely made on the basis of publicly available information. The Subscriber
hereby waives, to the fullest extent permitted by law, any rights of withdrawal,
rescission or compensation for damages to which the Subscriber might be entitled
in connection with the distribution of any of the Securities.

9.            
Legending and Registration of Subject Securities

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

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

9.3          
The Subscriber acknowledges that any resale of any of the Securities will be
subject to resale restrictions contained in the securities legislation
applicable to the Subscriber or proposed transferee. The Subscriber acknowledges
that none of the Securities have been registered under the 1933 Act or the
securities laws of any state of the United States. The Securities may not be
offered or sold in the United States unless registered in accordance with
federal securities laws and all applicable state securities laws or exemptions
from such registration requirements are available.

9.4          
The Subscriber acknowledges that the Securities are subject to resale
restrictions in Canada and may not be traded in Canada except as permitted by
the applicable provincial securities laws and the rules made thereunder.

10.            
Collection of Personal Information

10.1          
The Subscriber acknowledges and consents to the fact that the Company is
collecting the Subscriber’s personal information for the purpose of fulfilling
this Subscription Agreement and completing the Offering. The Subscriber’s
personal information (and, if applicable, the personal information of those on
whose behalf the Subscriber is contracting hereunder) may be disclosed by the
Company to (a) stock exchanges or securities regulatory authorities, (b) the
Company’s registrar and transfer agent, (c) Canadian tax authorities, (d)
authorities pursuant to the Proceeds of Crime (Money Laundering) and
Terrorist Financing Act (Canada) and (e) any of the other parties involved
in the Offering, including legal counsel, and may be included in record books in
connection with the Offering. By executing this Subscription Agreement, the
Subscriber is deemed to be consenting to the foregoing collection, use and
disclosure of the Subscriber’s personal information (and, if applicable, the
personal information of those on whose behalf the Subscriber is contracting
hereunder) and to the retention of such personal information for as long as
permitted or required by law or business practice. Notwithstanding that the 

- 9 -

Subscriber may be purchasing Securities as agent on behalf of
an undisclosed principal, the Subscriber agrees to provide, on request,
particulars as to the identity of such undisclosed principal as may be required
by the Company in order to comply with the foregoing.

10.2          
Furthermore, the Subscriber is hereby notified that:

	 	(a) 	
      the Corporation may deliver to the Ontario Securities
      Commission and/or the SEC certain personal information pertaining to the
      Subscriber, including such Subscriber’s full name, residential address and
      telephone number, the number of shares or other securities of the
      Corporation owned by the Subscriber, the number of Units purchased by the
      Subscriber and the total purchase price paid for such Units, the
      prospectus exemption relied on by the Corporation and the date of
      distribution of the Units,

	 	 	 
	 	(b) 	
      such information is being collected indirectly by the
      Ontario Securities Commission under the authority granted to it in
      securities legislation,

	 	 	 
	 	(c) 	
      such information is being collected for the purposes of
      the administration and enforcement of the securities legislation of
      Ontario, and

	 	 	 
	 	(d) 	
      the Subscriber may contact the following public official
      in Ontario with respect to questions about the Ontario Securities
      Commission’s indirect collection of such information at the following
      address and telephone number:

	 	Administrative Assistant to the Director of
      Corporate Finance 
	 	Ontario Securities Commission 
	 	Suite 1903, Box 55, 20 Queen Street West 
	 	Toronto, Ontario, M5H 3S8 
	 	Telephone: (416) 593-8086 

11.            
Costs

11.1          
The Subscriber acknowledges and agrees that all costs and expenses incurred by
the Subscriber (including any fees and disbursements of any special counsel
retained by the Subscriber) relating to the purchase of the Securities shall be
borne by the Subscriber.

12.           
 Governing Law

12.1          
This Subscription Agreement is governed by the laws of the Province of British
Columbia.

13.            
Survival

13.1          
This Subscription Agreement, including without limitation the representations,
warranties and covenants contained herein, shall survive and continue in full
force and effect and be binding upon the parties hereto notwithstanding the
completion of the purchase of the Securities by the Subscriber pursuant
hereto.

14.            
Assignment

14.1          
This Subscription Agreement is not transferable or assignable.

15.            
Severability

15.1          
The invalidity or unenforceability of any particular provision of this
Subscription Agreement shall not affect or limit the validity or enforceability
of the remaining provisions of this Subscription Agreement.

- 10 -

16.            
Entire Agreement

16.1          
Except as expressly provided in this Subscription Agreement and in the
agreements, instruments and other documents contemplated or provided for herein,
this Subscription Agreement contains the entire agreement between the parties
with respect to the sale of the Securities and there are no other terms,
conditions, representations or warranties, whether expressed, implied, oral or
written, by statute or common law, by the Company or by anyone else.

17.            
Notices

17.1          
All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted by any standard form of
telecommunication. Notices to the Subscriber shall be directed to the address on
the signature page of this Subscription Agreement and notices to the Company
shall be directed to it at Suite 300 One Bentall Centre, 505 Burrard Street,
Vancouver, British Columbia, Canada V7X 1M3.

18.            
Counterparts and Electronic Means

18.1          
This Subscription Agreement may be executed in any number of counterparts, each
of which, when so executed and delivered, shall constitute an original and all
of which together shall constitute one instrument. Delivery of an executed copy
of this Agreement by electronic facsimile transmission or other means of
electronic communication capable of producing a printed copy will be deemed to
be execution and delivery of this Agreement as of the date hereinafter set
forth.

IN WITNESS WHEREOF the Subscriber has duly executed this
Subscription Agreement as of the date of acceptance by the Company.

	 	 	 
	(Number of Units being purchased) 	 	(Name of Subscriber – Please type or print)
  
	 	 	 
	 	 	 
	(Total Subscription Price) 	 	(Signature and, if applicable, Office) 
	 	 	 
	 	 	 
	  	 	(Address of Subscriber) 
	 	 	 
	 	 	 
	  	 	(City, State or Province, Postal Code of
      Subscriber) 
	 	 	 
	 	 	 
	  	 	(Country of Subscriber) 
	 	 	 
	 	 	 
	  	 	(Email Address) 
	 	 	 
	 	 	 
	  	 	(Telephone Number) 

- 11 -

A C C E P T A N C E

The above-mentioned Subscription Agreement in respect of the
Shares are hereby accepted by Global Health Ventures Inc.

DATED at Vancouver, British Columbia, the _______ day of
____________________ , 2008.

GLOBAL HEALTH VENTURES INC.

	Per: 		 
	 	Authorized Signatory 	 

EXHIBIT A

FORM OF WARRANT

THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE
“SUBSCRIPTION AGREEMENT”) RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE
TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO
REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“1933 ACT”). 

NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT
RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES
LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR
INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT
IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.

UNLESS OTHERWISE PERMITTED UNDER SECURITIES LEGISLATION, THE
HOLDER OF THESE SECURITIES MUST NOT TRADE THE SECURITIES IN OR FROM BRITISH
COLUMBIA UNLESS THE CONDITIONS IN SECTION 12(2) OF BC INSTRUMENT 51-509 ISSUERS
QUOTED IN THE U.S. OVER-THE-COUNTER MARKET ARE MET.

Warrant No. ___________

THESE WARRANTS WILL EXPIRE AND BECOME NULL AND VOID 
AT
_____________(______________TIME) ON ____________________, 2010.

SHARE PURCHASE WARRANTS TO PURCHASE COMMON SHARES OF

GLOBAL HEALTH VENTURES INC.

     THIS IS TO CERTIFY THAT
_____________________, (the “Holder”) of ________________, has the right to
purchase, upon and subject to the terms and conditions hereinafter referred to,
up to _______________ fully paid and non-assessable common shares (the “Shares”)
in the capital of Global Health Ventures Inc. (the “Company”) on or before
_______ p.m. (__________ time) on ____________________ , 2010 (the “Expiry
Date”) at a price per Share of US$0.40 (the “Exercise Price”) on the terms and
conditions attached hereto as Appendix A (the “Terms and Conditions”).

	 	1. 	
      ONE (1) WARRANT AND THE EXERCISE PRICE ARE REQUIRED TO
      PURCHASE ONE SHARE. THIS CERTIFICATE REPRESENTS __________________
      WARRANTS.

	 	 	 
	 	2. 	
      These Warrants are issued subject to the Terms and
      Conditions, and the Warrant Holder may exercise the right to purchase
      Shares only in accordance with those Terms and Conditions.

	 	 	 
	 	3. 	
      Nothing contained herein or in the Terms and Conditions
      will confer any right upon the Holder hereof or any other person to
      subscribe for or purchase any Shares at any time subsequent to the Expiry
      Date, and from and after such time, this Warrant and all rights hereunder
      will be void and of no value.

     IN WITNESS WHEREOF the Company
has executed this Warrant Certificate this ________day of ______________,
2008.

GLOBAL HEALTH VENTURES INC.

	Per: 		 
	 	Authorized Signatory 	 

APPENDIX A

TERMS AND CONDITIONS dated _________________, 2008, attached to
the Warrants issued by Global Health Ventures Inc.

1.            
INTERPRETATION

1.1          
Definitions

In these Terms and Conditions, unless there is something in the
subject matter or context inconsistent therewith:

	 	(a) 	
      “Company” means Global Health Ventures Inc. until a
      successor corporation will have become such as a result of consolidation,
      amalgamation or merger with or into any other corporation or corporations,
      or as a result of the conveyance or transfer of all or substantially all
      of the properties and estates of the Company as an entirety to any other
      corporation and thereafter “Company” will mean such successor
      corporation;

	 	 	 
	 	(b) 	
      “Company’s Auditors” means an independent firm of
      accountants duly appointed as auditors of the Company;

	 	 	 
	 	(c) 	
      “Director” means a director of the Company for the time
      being, and reference, without more, to action by the directors means
      action by the directors of the Company as a Board, or whenever duly
      empowered, action by an executive committee of the Board;

	 	 	 
	 	(d) 	
      “herein”, “hereby” and similar expressions refer to these
      Terms and Conditions as the same may be amended or modified from time to
      time; and the expression “Article” and “Section,” followed by a number
      refer to the specified Article or Section of these Terms and
      Conditions;

	 	 	 
	 	(e) 	
      “person” means an individual, corporation, partnership,
      trustee or any unincorporated organization and words importing persons
      have a similar meaning;

	 	 	 
	 	(f) 	
      “shares” means the common shares in the capital of the
      Company as constituted at the date hereof and any shares resulting from
      any subdivision or consolidation of the shares;

	 	 	 
	 	(g) 	
      “Warrant Holders” or “Holders” means the holders of the
      Warrants; and

	 	 	 
	 	(h) 	
      “Warrants” means the warrants of the Company issued and
      presently authorized and for the time being
outstanding.

1.2          
Gender

Words importing the singular number include the plural and vice
versa and words importing the masculine gender include the feminine and neuter
genders.

1.3          
Interpretation not affected by Headings

The division of these Terms and Conditions into Articles and
Sections, and the insertion of headings are for convenience of reference only
and will not affect the construction or interpretation thereof.

1.4          
Applicable Law

The Warrant and the terms hereof are governed by the laws of
the Province of British Columbia. The Holder, in its personal or corporate
capacity and, if applicable, on behalf of each beneficial purchaser for whom it
is acting, irrevocably attorns to the jurisdiction of the courts of the Province
of British Columbia.

- 2 -

2.            
ISSUE OF WARRANTS

2.1          
Additional Warrants

The Company may at any time and from time to time issue
additional warrants or grant options or similar rights to purchase shares of its
capital stock.

2.2          
Warrants to Rank Pari Passu

All Warrants and additional warrants, options or similar rights
to purchase shares from time to time issued or granted by the Company, will rank
pari passu whatever may be the actual dates of issue or grant thereof, or
of the dates of the certificates by which they are evidenced.

2.3          
Issue in substitution for Lost Warrants

	 	(a) 	
      In case a Warrant becomes mutilated, lost, destroyed or
      stolen, the Company, at its discretion, may issue and deliver a new
      Warrant of like date and tenor as the one mutilated, lost, destroyed or
      stolen, in exchange for and in place of and upon cancellation of such
      mutilated Warrant, or in lieu of, and in substitution for such lost,
      destroyed or stolen Warrant and the substituted Warrant will be entitled
      to the benefit hereof and rank equally in accordance with its terms with
      all other Warrants issued or to be issued by the Company.

	 	 	 
	 	(b) 	
      The applicant for the issue of a new Warrant pursuant
      hereto will bear the cost of the issue thereof and in case of loss,
      destruction or theft furnish to the Company such evidence of ownership and
      of loss, destruction, or theft of the Warrant so lost, destroyed or stolen
      as will be satisfactory to the Company in its discretion and such
      applicant may also be required to furnish indemnity in amount and form
      satisfactory to the Company in its discretion, and will pay the reasonable
      charges of the Company in connection therewith.

2.4          
Warrant Holder Not a Shareholder

The holding of a Warrant will not constitute the Holder thereof
as a shareholder of the Company, nor entitle him to any right or interest in
respect thereof except as in the Warrant expressly provided.

3.            
NOTICE

3.1          
Notice to Warrant Holders

Any notice required or permitted to be given to the Holders
will be in writing and may be given by prepaid registered post, electronic
facsimile transmission or other means of electronic communication capable of
producing a printed copy to the address of the Holder appearing on the Holder’s
Warrant or to such other address as any Holder may specify by notice in writing
to the Company, and any such notice will be deemed to have been given and
received by the Holder to whom it was addressed if mailed, on the third day
following the mailing thereof, if by facsimile or other electronic
communication, on successful transmission, or, if delivered, on delivery; but if
at the time or mailing or between the time of mailing and the third business day
thereafter there is a strike, lockout, or other labour disturbance affecting
postal service, then the notice will not be effectively given until actually
delivered.

3.2          
Notice to the Company

Any notice required or permitted to be given to the Company
will be in writing and may be given by prepaid registered post, electronic
facsimile transmission or other means of electronic communication capable of
producing a printed copy to the address of the Company set forth below or such
other address as the Company may specify by notice in writing to the Holder, and
any such notice will be deemed to have been given and received by the Company to
whom it was addressed if mailed, on the third day following the mailing thereof,
if by facsimile or other 

- 3 -

electronic communication, on successful transmission, or, if
delivered, on delivery; but if at the time or mailing or between the time of
mailing and the third business day thereafter there is a strike, lockout, or
other labour disturbance affecting postal service, then the notice will not be
effectively given until actually delivered:

	 	Global Health Ventures Inc. 
	 	1517 West 58th Avenue 
	 	Vancouver, British Columbia 
	 	Canada V6P 1W6 
	 	  
	 	Attention: President 
	 	Fax No. (604) ________________________
	 	  
	 	with a copy, which shall not constitute notice,
      to: 
	 	  
	 	Clark Wilson LLP 
	 	Barristers and Solicitors 
	 	800 – 885 West Georgia Street 
	 	Vancouver, British Columbia 
	 	Canada V6C 3H1 
	 	  
	 	Attention: Virgil Z. Hlus 
	 	Fax: (604) 687-6314 

4.            
EXERCISE OF WARRANTS

4.1          
Method of Exercise of Warrants

The right to purchase shares conferred by the Warrants may be
exercised by the Holder surrendering the Warrant Certificate representing same,
with a duly completed and executed subscription in the form attached hereto and
a bank draft or certified cheque payable to the Company for the purchase price
applicable at the time of surrender in respect of the shares subscribed for in
lawful money of the United States of America, to the Company at the address set
forth in, or from time to time specified by the Company pursuant to, Section
3.2.

4.2          
Effect of Exercise of Warrants

	 	(a) 	
      Upon surrender and payment as aforesaid the shares so
      subscribed for will be deemed to have been issued and such person or
      persons will be deemed to have become the Holder or Holders of record of
      such shares on the date of such surrender and payment, and such shares
      will be issued at the subscription price in effect on the date of such
      surrender and payment.

	 	 	 
	 	(b) 	
      Within ten business days after surrender and payment as
      aforesaid, the Company will forthwith cause to be delivered to the person
      or persons in whose name or names the shares so subscribed for are to be
      issued as specified in such subscription or mailed to him or them at his
      or their respective addresses specified in such subscription, a
      certificate or certificates for the appropriate number of shares not
      exceeding those which the Warrant Holder is entitled to purchase pursuant
      to the Warrant surrendered.

4.3          
Subscription for Less Than Entitlement

The Holder of any Warrant may subscribe for and purchase a
number of shares less than the number which he is entitled to purchase pursuant
to the surrendered Warrant. In the event of any purchase of a number of shares
less than the number which can be purchased pursuant to a Warrant, the Holder
thereof upon exercise thereof will in addition be entitled to receive a new
Warrant in respect of the balance of the shares which he was entitled to
purchase pursuant to the surrendered Warrant and which were not then
purchased.

- 4 -

4.4          
Warrants for Fractions of Shares

To the extent that the Holder of any Warrant is entitled to
receive on the exercise or partial exercise thereof a fraction of a share, such
right may be exercised in respect of such fraction only in combination with
another Warrant or other Warrants which in the aggregate entitle the Holder to
receive a whole number of such shares.

4.5          
Expiration of Warrants

After the expiration of the period within which a Warrant is
exercisable, all rights thereunder will wholly cease and terminate and such
Warrant will be void and of no effect.

4.6          
Time of Essence Time will be of the essence hereof. 

4.7          
Subscription Price

Each Warrant is exercisable at a price per share (the “Exercise
Price”) of US$0.40. One (1) Warrant and the Exercise Price are required to
subscribe for each share during the term of the Warrants.

4.8          
Adjustment of Exercise Price

	 	(a) 	
      The Exercise Price and the number of shares deliverable
      upon the exercise of the Warrants will be subject to adjustment in the
      event and in the manner following:

	 	 	 	 
	 		(i) 	
      if and whenever the shares at any time outstanding are
      subdivided into a greater or consolidated into a lesser number of shares
      the Exercise Price will be decreased or increased proportionately as the
      case may be; upon any such subdivision or consolidation the number of
      shares deliverable upon the exercise of the Warrants will be increased or
      decreased proportionately as the case may be;

	 	 	 	 
	 		(ii) 	
      in case of any capital reorganization or of any
      reclassification of the capital of the Company or in the case of the
      consolidation, merger or amalgamation of the Company with or into any
      other Company (hereinafter collectively referred to as a
      “Reorganization”), each Warrant will after such Reorganization confer the
      right to purchase the number of shares or other securities of the Company
      (or of the Company’s resulting from such Reorganization) which the Warrant
      Holder would have been entitled to upon Reorganization if the Warrant
      Holder had been a shareholder at the time of such
Reorganization.

	 	 	 	 
	 			
      In any such case, if necessary, appropriate adjustments
      will be made in the application of the provisions of this Section 4.8
      relating to the rights and interest thereafter of the Holders of the
      Warrants so that the provisions of this Section 4.8 will be made
      applicable as nearly as reasonably possible to any shares or other
      securities deliverable after the Reorganization on the exercise of the
      Warrants.

	 	 	 	 
	 			
      The subdivision or consolidation of shares at any time
      outstanding into a greater or lesser number of shares (whether with or
      without par value) will not be deemed to be a Reorganization for the
      purposes of this clause 4.8(a)(ii).

	 	 	 	 
	 	(b) 	
      The adjustments provided for in this Section 4.8 are
      cumulative and will become effective immediately after the record date or,
      if no record date is fixed, the effective date of the event which results
      in such adjustments.

- 5 -

4.9          
Determination of Adjustments

If any questions will at any time arise with respect to the
Exercise Price or any adjustment provided for in Section 4.8, such questions
will be conclusively determined by the Company’s Auditors, or, if they decline
to so act any other firm of certified public accountants in the United States of
America or chartered accountants in Canada that the Company may designate and
who will have access to all appropriate records and such determination will be
binding upon the Company and the Holders of the Warrants.

5.            
CALL RIGHT

5.1          
Company’s Call Right

The Company has the right on ten (10) days written notice (the
“Call Notice”) to require the Holder to exercise the Warrant so long as the
closing price of the common shares of the Company on its primary trading market
(determined by the volume of trading of the Company’s common shares) equals or
exceeds $0.80 per common share for at least ten (10) consecutive trading days
prior to the date of the Call Notice. The Warrants evidenced by this Warrant
Certificate will terminate on the date that is thirty (30) days (the “Call
Period”) from the date of the Call Notice in the event that the Warrant Holder
does not exercise the Warrant during the Call Period.

6.            
WAIVER OF CERTAIN RIGHTS

6.1          
Immunity of Shareholders, etc.

The Warrant Holder, as part of the consideration for the issue
of the Warrants, waives and will not have any right, cause of action or remedy
now or hereafter existing in any jurisdiction against any past, present or
future incorporator, shareholder, Director or officer (as such) of the Company
for the issue of shares pursuant to any Warrant or on any covenant, agreement,
representation or warranty by the Company herein contained or in the
Warrant.

7.           
 MODIFICATION OF TERMS, ETC.

7.1          
Modification of Terms and Conditions for Certain Purposes

From time to time the Company may, subject to the provisions of
these presents, modify the Terms and Conditions hereof, for the purpose of
correction or rectification of any ambiguities, defective provisions, errors or
omissions herein.

7.2          
Warrants Not Transferable

The Warrant and all rights attached to it are not
transferable.

DATED as of the date first above written in these Terms and
Conditions.

	 	GLOBAL HEALTH VENTURES INC.
  
	 	  	 
	 	  	 
	 	Per: 	 
	 		Authorized
Signatory  

FORM OF SUBSCRIPTION

	TO: 	Global Health Ventures Inc. 
	  	1517 West 58th Avenue 
	  	Vancouver, British Columbia 
		 Canada V6P
    1N6  

The undersigned Holder of the within Warrants hereby subscribes
for ____________ common shares (the “Shares”) of Global Health Ventures Inc.
(the “Company”) pursuant to the within Warrants at US$0.40 per Share on the
terms specified in the said Warrants. This subscription is accompanied by a
certified cheque or bank draft payable to or to the order of the Company for the
whole amount of the purchase price of the Shares.

The undersigned represents that, at the time of the exercise of
these Warrants, all of the representations and warranties contained in Section 6
of the Subscription Agreement between the Company and the undersigned pursuant
to which these Warrants were issued are true and accurate.

The undersigned hereby directs that the Shares be registered as
follows:

	NAME(S) IN FULL 	 	ADDRESS(ES) 	 	NUMBER OF SHARES 
	  	 		 	  
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	TOTAL:  	 	 

(Please print full name in which share certificates are to be
issued, stating whether Mr., Mrs. or Miss is applicable).

DATED this ________day of __________________, ______.

In the presence of:

	 	 	 
	Signature of Witness 	 	Signature of Warrant Holder

	Please print below your name and address
      in full. 	 
	 	 
	 	 
	Name (Mr./Mrs./Miss) 	 
	 	 
	 	 
	Address 	 
	 	 
	 	 

INSTRUCTIONS FOR SUBSCRIPTION

The signature to the subscription must correspond in every
particular with the name written upon the face of the Warrant without alteration
or enlargement or any change whatever. If there is more than one subscriber, all
must sign. In the case of persons signing by agent or attorney or by personal
representative(s), the authority of such agent, attorney or representative(s) to
sign must be proven to the satisfaction of the Company. If the Warrant
certificate and the form of subscription are being forwarded by mail, registered
mail must be employed.

EXHIBIT B

INVESTOR QUESTIONNAIRE

All capitalized terms herein, unless otherwise defined, have
the meanings ascribed thereto in the Subscription Agreement.

The purpose of this Questionnaire is to assure the Company that
the Subscriber will meet certain requirements of National Instrument 45-106 (“NI
45-106”). The Company will rely on the information contained in this
Questionnaire for the purposes of such determination.

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

		1. 	if the Subscriber is not a resident
      of Ontario, the Subscriber is (tick one or more of the following
      boxes): 	 
	 	  	  	  	 
			(A) 	a director, executive officer, founder or
      control person of the Company or an affiliate of the Company 	 [     ]
	 	  	  	  	 
			(B) 	a spouse, parent, grandparent, brother, sister
      or child of a director, executive officer, founder or control person of
      the Company or an affiliate of the Company 	 [     ]
	 	  	  	  	 
			(C) 	a parent, grandparent, brother, sister or child
      of the spouse of a director, executive officer, founder or control person
      of the Company or an affiliate of the Company 	 [     ]
	 	  	  	  	 
			(D) 	a close personal friend of a director,
      executive officer, founder or control person of the Company 	 [     ]
	 	  	  	  	 
			(E) 	a close business associate of a director,
      executive officer, founder or control person of the Company or an
      affiliate of the Company 	 [     ]
	 	  	  	  	 
	 	  	 (F) 	an accredited investor 	 [     ]
	 	  	  	  	 
			(G) 	a company, partnership or other entity of which
      a majority of the voting securities are beneficially owned by, or a
      majority of the directors are, persons described in paragraphs A to F 	 [     ]
	 	  	  	  	 
			(H) 	a trust or estate of which all of the
      beneficiaries or a majority of the trustees or executors are persons
      described in paragraphs A to F 	 [     ]
	 	  	  	  	 
		2. 	if the Subscriber has checked box B,
      C, D, E, G or H in Section 1 above, the director, executive officer,
      founder or control person of the Company with whom the undersigned has the
      relationship is: 
	 	  	 
	 	  	 
	 	  	 
			(Instructions to Subscriber: fill
      in the name of each director, executive officer, founder and
      control person which you have the above-mentioned relationship with. If
      you have checked box G or H, also indicate which of A to F
      describes the securityholders, directors, trustees or beneficiaries
      which qualify you as box G or H and provide the names of those
      individuals. Please attach a separate page if necessary).
  

- 3 -

		3. 	if the Subscriber is resident in
      Ontario, the Subscriber is (tick one or more of the following
      boxes): 	
	 	  	  	  	 
	 	  	 (A) 	a founder of the Company 	[     ]
	 	  	  	  	 
	 	  	 (B) 	an affiliate of a founder of the Company 	[     ]
	 	  	  	  	 
			(C) 	a spouse, parent, brother, sister, grandparent
      or child of an executive officer, director or founder of the Company 	[     ]
	 	  	  	  	 
	 	  	 (D) 	a control person of the Company 	[     ]
	 	  	  	  	 
	 	  	 (E) 	an accredited investor 	[     ]
	 	  	  	  	 
		4. 	if the Subscriber has checked box C
      in Section 3 above, the executive officer, director or founder of the
      Company with whom the undersigned has the relationship is: 	
	 	  	  	  	 
	 	  	  	  	 
	 	  	  	  	 
			
      (Instructions to Subscriber: fill in the name of each
      executive officer, director or founder which you have the
      above-mentioned relationship with.) 

	 	  	
       

		5. 	
      if the Subscriber has ticked box F in Section 1 or box E
      in Section 3 above, the Subscriber satisfies one or more of the categories
      of “accredited investor” (as that term is defined in NI 45-106) indicated
      below (please check the appropriate box): 

	 	  	
      
	
      
	
       

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

	 	  	
      
	
       

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

	 	  	
      
	
       

			
      [ ] 
	
      (c) an individual who, either alone or with a spouse, has
      net assets of at least CDN $5,000,000; 

	 	  	
      
	
       

			
      [ ] 
	
      (d) a person, other than an individual or investment
      fund, that had net assets of at least CDN$5,000,000 as reflected on its
      most recently prepared financial statements. 

	 	  	
      
	
       

			
      [ ] 
	
      (e) a person registered under securities legislation of a
      jurisdiction of Canada as an advisor or dealer, or an individual
      registered or formerly registered as a representative of such an adviser
      or dealer, other than a limited market dealer registered under the
      Securities Act (Ontario) or the Securities Act
      (Newfoundland); 

	 	  	
      
	
       

			
      [ ] 
	
      (f) an investment fund that distributes it securities
      only to persons that are accredited investors at the time of distribution,
      a person that acquires or acquired a minimum of CDN$150,000 of value in
      securities, or a person that acquires or acquired securities under
      Sections 2.18 or 2.19 of NI 45-106; 

	 	  	
      
	
       

			
      [ ] 
	
      (g) an investment fund that distributes or has
      distributed securities under a prospectus in a jurisdiction of Canada for
      which the regulator or, in Québec, the securities regulatory authority,
      has issued a receipt; 

- 4 -

		[ ] 	(h) a person acting on behalf of a fully
      managed account managed by that person, if that person (i) is registered
      or authorized to carry on business as an adviser or the equivalent under
      the securities legislation of a jurisdiction of Canada or a foreign
      jurisdiction, and (ii) in Ontario, is purchasing a security that is not a
      security of an investment fund; 
	 	  	  
		[ ] 	(i) a person in respect of which all of the
      owners of interests, direct, indirect or beneficial, except the voting
      securities required by law are persons or companies that are accredited
      investors; or 
	 	  	  
		[ ] 	(j) an investment funds that is advised by a
      person registered as an advisor or a person that is exempt from
      registration as an advisor. 

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

     IN WITNESS WHEREOF, the
undersigned has executed this Questionnaire as of the ________day of
______________________, 2008.

	If an Individual: 	 	If a Corporation, Partnership or Other 
	  	 	Entity: 
	 	 	 
	 	 	 
	Signature 	 	Print or Type Name of Entity 
	 	 	 
	 	 	 
	Print or Type Name 	 	Signature of Authorized Signatory 
	 	 	 
	 	 	 
	  	 	Type of Entity

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