Document:

Filed by sedaredgar.com - Crown Oil and Gas Inc.- Exhibit 10.1

	
      THIS 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
      (THE "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 ACCORDANCE WITH THE 1933 ACT.
  

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT 
(Non-U.S.
Subscribers) 

THIS SUBSCRIPTION AGREEMENT is dated for reference September 1,
2009. 

	TO: 	Crown Oil and Gas Inc., a Nevada
      corporation (the "Company") 
	  	400 – 225 West Magnolia Street 
	  	Bellingham, Washington 98225 
	  	USA 

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
"Subscriber") hereby irrevocably subscribes for and agrees to purchase
______________ units (the "Units") at a price per Unit of US$1.25 (such
subscription and agreement to purchase being the "Subscription"), for an
aggregate purchase price of US$______________ (the Subscription
Proceeds"). 

1.2                     
Each Unit will consist of: (i) one share in the common stock of the Company
(each, a "Share"); and (ii) one non-transferable common stock purchase
warrant (each, a "Warrant"). Each Warrant will entitle the holder thereof
to purchase one Share (each, a "Warrant Share"), as presently
constituted, for a period of 24 months commencing at the Closing (as defined
below) as follows: (i) at a price of US$2.00 for the first 12-month period (one
to 12 months) following the Closing; and (ii) at a price of US$2.50 for the
remaining 12-month period (13 to 24 months) following the Closing. A Certificate
representing the Warrant will be in the form attached as Exhibit "A" hereto. The
Shares, Warrants and the Warrant Shares are collectively referred to as the
"Securities". 

1.3                     
On the basis of the representations and warranties and subject to the Terms and
Conditions set forth hereinafter, the Company hereby irrevocably agrees to sell
the Units to the Subscriber. 

1.4                      Subject
to the terms hereof, the Subscription will be effective upon its acceptance by
the Company. The Subscriber acknowledges that the offering of Units contemplated
hereby (the "Offering") is not subject to any minimum aggregate
subscription level. 

2.                       
Payment 

2.1                     
The Subscription Proceeds will accompany this Subscription and will be paid by
certified cheque or bank draft drawn on a major bank, or a bank in the United
States reasonably acceptable to the Company, and 

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made payable and delivered as directed to the Company.
Alternatively, the Subscription Proceeds may be wired as the Company instructs,
pursuant to wiring instructions that will be provided to the Subscriber upon
request. If the funds are wired to the Company’s lawyers, those lawyers are
authorized to immediately deliver the funds to the Company. 

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, within 30 days of the delivery of an
executed Subscription Agreement by the Subscriber, 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. 

2.3                      Where
the Subscription Proceeds are paid to the Company, the Company is entitled to
treat such Subscription Proceeds as an interest free loan to the Company until
such time as the Subscription is accepted and the certificates representing the
Shares have been issued to the Subscriber. 

3.                       
Documents Required from Subscriber 

3.1                      The
Subscriber will complete, sign and return to the Company an executed copy of
this Subscription Agreement. 

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

4.                       
Closing 

4.1                      Closing
of the offering of the Securities (the "Closing") will occur on or
before __________________ , 2009, or on such other date as may be
determined by the Company (the "Closing Date"). 

4.2                      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. 

5.                       
Acknowledgements of Subscriber 

5.1                      The
Subscriber acknowledges and agrees that: 

	 	(a) 	
      none of the Securities have been 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 the 1933 Act;

	 	 	 
	 	(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;

	 	 	 
	 	(c) 	
      the decision to execute this Subscription Agreement and
      acquire the Securities 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 information
      (the receipt of which is hereby acknowledged) which has been filed by the
      Company with the United States

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      Securities and Exchange Commission (the "SEC") and
      in compliance, or intended compliance, with applicable securities
      legislation (collectively, the "Public Record");

	 	 	 
	 	(d) 	
      if the Company has presented a business plan to the
      Subscriber, the Subscriber acknowledges that the business plan may not be
      achieved or be achievable;

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

	 	 	 
	 	(f) 	
      there is no government or other insurance covering the
      Securities;

	 	 	 
	 	(g) 	
      there are risks associated with an investment in the
      Securities, as more fully described in certain information forming part of
      the Public Record;

	 	 	 
	 	(h) 	
      the Subscriber has not acquired the Securities as a
      result of, and will not itself engage in, any "directed selling efforts"
      (as defined in Regulation S 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 Shares or Warrant Shares; provided, however, that the
      Subscriber may sell or otherwise dispose of any of the Shares or Warrant
      Shares pursuant to registration thereof under the 1933 Act and any
      applicable state securities laws or under an exemption from such
      registration requirements;

	 	 	 
	 	(i) 	
      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;

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

	 	 	 
	 	(k) 	
      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 herein 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;

	 	 	 
	 	(l) 	
      none of the Securities are listed on any stock exchange
      or automated dealer quotation system and no representation has been made
      to the Subscriber that any of the Securities will become listed on any
      stock exchange or automated dealer quotation system;

	 	 	 
	 	(m) 	
      the Company will refuse to register any transfer of the
      Shares or the Warrant Shares 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;

- 4 - 

	 	(n) 	
      the statutory and regulatory basis for the exemption
      claimed for 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;

	 	 	 	 
	 	(o) 	
      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; and

	 	 	 	 
	 	(p) 	
      this Subscription Agreement is not enforceable by the
      Subscriber unless it has been accepted by the
Company.

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 will survive the Closing) that:

	 	(a) 	
      the Subscriber 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 corporation, 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;

	 	 	 
	 	(b) 	
      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;

	 	 	 
	 	(c) 	
      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;

	 	 	 
	 	(d) 	
      the Subscriber is not a U.S. Person;

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

	 	 	 
	 	(f) 	
      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;

	 	 	 
	 	(g) 	
      the sale of the Securities to the Subscriber as
      contemplated in this Subscription Agreement complies with or is exempt
      from the applicable securities legislation of the jurisdiction of
      residence of the Subscriber;

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

	 	 	 
	 	(i) 	
      the Subscriber is outside the United States when
      receiving and executing this Subscription Agreement and is acquiring the
      Securities as principal for the Subscriber’s own account (except for the
      circumstances outlined in paragraph 6.1(l)), for investment purposes only,
      and not with a

- 5 - 

	 		
      view to, or for, resale, distribution or
      fractionalisation thereof, in whole or in part, and no other person has a
      direct or indirect beneficial interest in such Securities;

	 	 	 	 
	 	(j) 	
      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;

	 	 	 	 
	 	(k) 	
      the Subscriber: (i) is able to fend for 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) 	
      if the Subscriber is acquiring the Securities as a
      fiduciary or agent for one or more investor accounts:

	 	 	 	 
	 		(i) 	
      the Subscriber has sole investment discretion with
      respect to each such account and it has full power to make the foregoing
      acknowledgements, representations and agreements on behalf of such
      account, and

	 	 	 	 
	 		(ii) 	
      the investor accounts for which the Subscriber acts as a
      fiduciary or agent satisfy the definition of an "Accredited Investor", as
      the term is defined in Regulation D under the 1933 Act;

	 	 	 	 
	 	(m) 	
      the Subscriber acknowledges that the Subscriber has not
      acquired the Securities as a result of, and will not itself engage in, any
      "directed selling efforts" (as defined in Regulation S 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 state securities laws or under an
      exemption from such registration requirements and as otherwise provided
      herein;

	 	 	 	 
	 	(n) 	
      the Subscriber is not aware of any advertisement of any
      of the Securities;

	 	 	 	 
	 	(o) 	
      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

	 	 	 	 
	 	(p) 	
      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 Units,

- 6 - 

	 	(ii) 	
      is purchasing the Units 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
      Units under the applicable securities laws of the securities regulators in
      the International Jurisdiction without the need to rely on any
      exemptions,

	 	 	 	 
	 	(iii) 	
      acknowledges that 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, and

	 	 	 	 
	 	(iv) 	
      represents and warrants that the acquisition of the Units
      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

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

7.                       
Acknowledgement and Waiver 

7.1                     
The Subscriber has acknowledged that the decision to purchase the Securities was
solely made on the basis of publicly available information contained in the
Public Record. 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. 

8.                       
Legending of Subject Securities 

8.1                     
The Subscriber hereby acknowledges that that upon the issuance thereof, and
until such time as the same is no longer required under the applicable
securities laws and regulations, the certificates representing any of the
Securities will bear a legend in substantially the following form: 

  THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
    OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN)
    PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
    AMENDED (THE "1933 ACT"). 

  NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED
    UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED,
    MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS
    DEFINED HEREIN) OR TO U.S. PERSONS 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. "UNITED STATES" AND "U.S. PERSON"
    ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT. 

8.2                     
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. 

- 7 - 

9.                      
 Piggyback Registration Rights 

9.1                     
If the Company determines to proceed with the preparation and filing with the
SEC of a registration statement (the "Registration Statement") relating
to an offering for its own account or the account of others under the 1933 Act
of any of its common shares, other than on Form S-4 or Form S-8 (each as
promulgated under the 1933 Act) or its then equivalents relating to equity
securities issuable in connection with stock option or other employee benefit
plans, then the Company will send to the Subscriber written notice of such
determination and, if within thirty (30) days after receipt of such notice, the
Subscriber will so request in writing, then the Company will cause the
registration under the 1933 Act of the Shares (the "Registrable
Securities") and; provided that, if at any time after giving written notice
of its intention to register any of its common shares and prior to the effective
date of the registration statement filed in connection with such registration,
then the Company will determine for any reason not to register or to delay
registration of such common shares, the Company may, at its election, give
written notice of such determination to the Subscriber and, thereupon: (i) in
the case of a determination not to register, will be relieved of its obligation
to register the Registrable Securities in connection with such registration; and
(ii) in the case of a determination to delay registering, will be permitted to
delay registering the Registrable Securities for the same period as the delay in
registering such other common shares. The Company will include in such
registration statement all or any part of the Registrable Securities; provided,
however, that the Company will not be required to register any shares that are
eligible for sale pursuant to Rule 144(k) of the 1933 Act. Notwithstanding any
other provision in this section, if the Company receives a comment from the SEC
which effectively results in the Company having to reduce the number of
Registrable Securities included on such Registration Statement, then the Company
may, in its sole discretion, reduce on a pro rata basis the number of
Registrable Securities to be included in such Registration Statement. 

9.2                      In
connection with each Registration Statement described in this section, the
Subscriber will furnish to the Company in writing such information and
representation letters with respect to itself and the proposed distribution by
it as reasonably will be necessary in order to assure compliance with federal
and applicable state securities laws. The Company may require the Subscriber to
furnish to the Company a certified statement as to the number of shares of
common stock beneficially owned by the Subscriber and the name of the natural
person thereof that has voting and dispositive control over the Registrable
Shares. 

9.3                      All
fees and expenses incidental to the performance of or compliance with the filing
of the Registration Statement will be borne by the Company whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and expenses referred to in the foregoing sentence will include, without
limitation: (i) all registration and filing fees, including, without limitation,
fees and expenses: (A) with respect to filings required to be made with the OTC
Bulletin Board or other exchange or quotation service on which the common stock
of the Company is then listed for trading, and (B) in compliance with applicable
state securities or Blue Sky laws; (ii) printing expenses, including, without
limitation, expenses of printing certificates for Registrable Securities and of
printing prospectuses, if the printing of prospectuses is reasonably requested
by the holders of a majority of the Registrable Securities included in the
Registration Statement; (iii) messenger, telephone and delivery expenses; (iv)
fees and disbursements of counsel for the Company; (v) 1933 Act liability
insurance, if the Company so desires such insurance; and (vi) fees and expenses
of all other persons retained by the Company in connection with the filing of
the Registration Statement. In addition, the Company will be responsible for all
of its internal expenses incurred in connection with the filing of the
Registration Statement, including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties, the expense
of any annual audit and the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange, if applicable.
In no event will the Company be responsible for any broker or similar
commissions or, except to the extent provided for hereunder, any legal fees or
other costs of the Subscriber. 

9.4                      The
Company will, notwithstanding any termination of this Subscription Agreement,
indemnify and hold harmless the Subscriber, its officers, directors, agents and
employees, and each person who controls the Subscriber (within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act) and the officers,
directors, agents and employees of each such controlling person, to the fullest
extent permitted by applicable law, from and against any and all losses, claims,
damages, liabilities, costs (including, without limitation, reasonable
attorneys' fees) and expenses (collectively, "Losses"), as incurred,
arising out of or relating to any untrue or alleged untrue statement of a
material fact contained in the Registration Statement, or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or
relating to any omission or alleged omission of a 

- 8 - 

material fact required to be stated therein or necessary to
make the statements therein not misleading, except to the extent, but only to
the extent, that: (i) such untrue statements or omissions are based solely upon
information regarding the Subscriber furnished in writing to the Company by the
Subscriber expressly for use therein, or to the extent that such information
relates to the Subscriber or the Subscriber's proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by the
Subscriber expressly for use in the Registration Statement, or in any amendment
or supplement thereto; or (ii) the use by the Subscriber of an outdated or
defective Registration Statement after the Company has notified the Subscriber
in writing that the Registration Statement is outdated or defective. 

9.5                     
The Subscriber will indemnify and hold harmless the Company, its directors,
officers, agents and employees, each person who controls the Company (within the
meaning of Section 15 of the 1933 Act and Section 20 of the 1934 Act), and the
directors, officers, agents or employees of such controlling persons, to the
fullest extent permitted by applicable law, from and against all Losses, as
incurred, to the extent arising out of or based solely upon: (i) the
Subscriber's failure to comply with the prospectus delivery requirements of the
1933 Act; or (ii) any untrue or alleged untrue statement of a material fact
contained in any Registration Statement, or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading: (A) to the extent, but
only to the extent, that such untrue statement or omission is contained in any
information so furnished in writing by the Subscriber to the Company
specifically for inclusion in the Registration Statement, or (B) to the extent
that such untrue statements or omissions are based solely upon information
regarding the Subscriber furnished in writing to the Company by the Subscriber
expressly for use therein, or (C) to the extent that such information relates to
the Subscriber or the Subscriber's proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by the
Subscriber expressly for use in the Registration Statement or in any amendment
or supplement thereto; or (iii) the use by the Subscriber of an outdated or
defective Registration Statement after the Company has notified the Subscriber
in writing that the Registration Statement is outdated or defective. In no event
will the liability of the Subscriber hereunder be greater in amount than the
dollar amount of the net proceeds received by the Subscriber upon the sale of
the Registrable Securities giving rise to such indemnification obligation. 

9.6                     
If a claim for indemnification hereunder is unavailable to either the Company or
the Subscriber (in each case, an "Indemnified Party or Indemnified
Parties", as applicable) (by reason of public policy or otherwise), then
each Indemnifying Party, in lieu of indemnifying such Indemnified Party, will
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party will be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses will be deemed to include, subject to the limitations set forth in
this Subscription, any reasonable attorneys' or other reasonable fees or
expenses incurred by such party in connection with any proceeding to the extent
such party would have been indemnified for such fees or expenses if the
indemnification provided for in this section was available to such party in
accordance with its terms. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this section were determined by pro
rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the immediately preceding
paragraph. Notwithstanding the provisions of this section, no Subscriber will be
required to contribute, in the aggregate, any amount in excess of the amount by
which the proceeds actually received by the Subscriber from the sale of the
Registrable Securities subject to the proceeding exceeds the amount of any
damages that the Subscriber has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission, except in
the case of fraud by the Subscriber. 

- 9 - 

10.                      Costs

10.1                    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 Shares will be borne by the
Subscriber. 

11.                    
 Governing Law 

11.1                   
This Subscription Agreement is governed by the laws of the State of Nevada. The
Subscriber, in its personal or corporate capacity and, if applicable, on behalf
of each beneficial purchaser for whom it is acting, irrevocably attorns to the
jurisdiction of the courts of the State of Nevada. 

12.                     
Survival 

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

13.                     
Assignment 

13.1                    This
Subscription Agreement is not transferable or assignable. 

14.                    
 Severability 

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

15.                    
 Entire Agreement 

15.1                    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 Units 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. 

16.                     
Notices 

16.1                    All
notices and other communications hereunder will be in writing and will be deemed
to have been duly given if mailed or transmitted by any standard form of
telecommunication. Notices to the Subscriber will be directed to the address on
page 10 and notices to the Company will be directed to it at Crown Oil and Gas
Inc., 400 – 225 West Magnolia Street, Bellingham, Washington 98225,USA,
Attention: President (facsimile: (360) 733-3941). 

17.                     
Counterparts and Electronic Means 

This Subscription Agreement may be executed in any number of
counterparts, each of which, when so executed and delivered, will constitute an
original and all of which together will 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. 

- 10 - 

18.                     
Delivery Instructions 

18.1                    The
Subscriber hereby directs the Company to deliver the Share and Warrant
Certificates to: 

	 	 
	 	(Name) 
	 	 
	 	 
	 	(Address)

18.2                    The
Subscriber hereby directs the Company to cause the Shares to be registered on
the books of the Company as follows: 

	 	 
	 	(Name) 
	 	 
	 	 
	 	(Address)

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

	 	 
	 	(Name of Subscriber – Please type or
      print) 
	 	 
	 	 
	 	(Signature and, if applicable, Office)
    
	 	 
	 	 
	 	(Address of Subscriber) 
	 	 
	 	 
	 	(City, State or Province, Postal Code of
      Subscriber) 
	 	 
	 	 
	 	(Country of Subscriber)

- 11 - 

A C C E P T A N C E 

The above-mentioned Subscription Agreement in respect of the
Shares is hereby accepted by Crown Oil and Gas Inc. 

DATED at _____________________________________, the _____ day
of __________________, 2009. 

CROWN OIL AND GAS INC. 

Per:
_____________________________________________
        
Authorized Signatory 

EXHIBIT "A" 

	
      THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN
      AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS
      DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). 

NONE
      OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933
      ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED,
      MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
      STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS 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. "UNITED STATES" AND "U.S.
      PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.
    

THESE WARRANTS WILL EXPIRE AND BECOME NULL AND VOID 
AT 5:00
P.M. (PACIFIC STANDARD TIME) ON __________________, 2011. 

SHARE PURCHASE WARRANTS 
TO PURCHASE SHARES IN THE COMMON
STOCK OF 
CROWN OIL AND GAS INC.
(incorporated in the
State of Nevada) 

Non-U.S. Subscribers 

	CERTIFICATE NO.: ______________ 	No. of Warrants: __________
	September 1, 2009 	  

THIS IS TO CERTIFY THAT: 

__________________________________________
__________________________________________
__________________________________________

(the "Holder"), has the right to purchase, upon and
subject to the Terms and Conditions hereinafter referred to, up to
______________ fully paid and non-assessable shares (the "Shares") in the
common stock of Crown Oil and Gas Inc. (hereinafter called the "Company")
on or before 5:00 p.m. (Pacific Standard time) on __________________, 2011 (the
"Expiry Date") at a price per Share (the "Exercise Price") of: (i)
US$2.00 for the first 12-month period (one to 12 months) following the Closing
(as defined in Appendix "A" attached hereto); and (ii) US$2.50 for the remaining
24-month period (13 to 24 months) following the Closing 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 (1) SHARE.

	 	 	 
	 	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.

[Remainder of page intentionally left blank; signature page
to follow.] 

- 2 - 

IN WITNESS WHEREOF the Company has executed this Warrant
Certificate this ____ day of ___________, 2009. 

CROWN OIL AND GAS INC. 

Per:
_____________________________________________
        
Authorized Signatory 

PLEASE NOTE THAT ALL SHARE CERTIFICATES WILL BE LEGENDED AS
FOLLOWS DURING THE CURRENCY OF APPLICABLE HOLD PERIODS: 

  THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
    OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN)
    PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
    AMENDED (THE "1933 ACT").

  NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED
    UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED,
    MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS
    DEFINED HEREIN) OR TO U.S. PERSONS 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. "UNITED STATES" AND "U.S. PERSON"
    ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT. 

Appendix "A" 

THESE TERMS AND CONDITIONS are dated for reference September 1,
2009, and are attached to and made a part of the Warrant Certificates dated for
reference September 1, 2009, issued by Crown Oil and Gas Inc. 

1.                       
INTERPRETATION 

1.1                      Definitions

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

	 	(a) 	
      "Closing" means the closing of the securities under the
      Subscription Agreement on or before __________________, 2009, or
    on such date as may be determined by the Company;

	 	 	 
	 	(b) 	
      "Company" means Crown Oil and Gas 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;

	 	 	 
	 	(c) 	
      "Company’s Auditors" means an independent firm of
      accountants duly appointed as auditors of the Company;

	 	 	 
	 	(d) 	
      "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;

	 	 	 
	 	(e) 	
      "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;

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

	 	 	 
	 	(g) 	
      "shares" means the shares in the common stock of the
      Company as constituted at the date hereof and any shares resulting from
      any subdivision or consolidation of the shares;

	 	 	 
	 	(h) 	
      "Subscription Agreement" means the Subscription Agreement
      dated for reference September 1, 2009, to which these Terms and Conditions
      are attached and made a part;

	 	 	 
	 	(i) 	
      "Warrant Holders" or "Holders" means the holders of the
      Warrants; and

	 	 	 
	 	(j) 	
      "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. 

- 2 - 

1.4                     
Applicable Law 

The Warrants will be construed in accordance with the laws of
the State of Nevada. 

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                     
Warrant 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) 	
      If a Warrant certificate becomes mutilated, lost,
      destroyed or stolen, the Company, at its discretion, may issue and deliver
      a new certificate 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 certificate, or in lieu of, and in substitution for such
      lost, destroyed or stolen certificate and the Warrants represented by such
      substituted certificate 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 certificate
      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 certificate 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
a shareholder of the Company, nor entitle it 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 certificate 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 - 

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 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: 

CROWN OIL AND GAS INC. 
400 – 225
West Magnolia Street 
Bellingham, Washington 98225 
USA 

Attention: President 

Fax No. (360) 733-394 

with a copy to: 

CLARK WILSON LLP 
Barristers and
Solicitors 
800 – 885 West Georgia Street 
Vancouver, British Columbia

Canada V6C 3H1 

Attention: Jonathan Lotz 

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 or to the order of 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 hereof. 

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 - 

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                     
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: (i) US$2.00 for the first 12-month period (one to
12 months) following the Closing; and (ii) US$2.50 for the remaining 12-month
period (13 to 24 month) following the Closing. 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; or

	 	 	 	 
	 		(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 Article Four
      relating to the rights and interest thereafter of the Holders of the
      Warrants so that the provisions of this Article Four 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.

- 5 - 

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.

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 hereof, 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 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.                       
COVENANTS BY THE COMPANY 

5.1                     
Reservation of Shares 

The Company will reserve and there will remain unissued out of
its authorized capital a sufficient number of shares to satisfy the rights of
purchase provided for herein and in the Warrants should the Holders of all the
Warrants from time to time outstanding determine to exercise such rights in
respect of all shares which they are or may be entitled to purchase pursuant
thereto and hereto. 

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, MERGER, SUCCESSORS 

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 Warrants and all rights attached to it are not
transferable. 

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

CROWN OIL AND GAS INC. 

Per:
_____________________________________
         
Authorized Signatory 

FORM OF SUBSCRIPTION

	TO: 	CROWN OIL AND GAS INC. 
	  	400 – 225 West Magnolia Street
  
	  	Bellingham, Washington 98225
  
	  	USA 

Dear Sirs/Mesdames: 

The undersigned (the "Warrant Holder") hereby exercises the
right to purchase and hereby subscribes for ____________________ shares of
the common stock of CROWN OIL AND GAS INC. (the Shares") referred to in the
Common Stock Purchase Warrant Certificate No._______ surrendered herewith
according to the terms and conditions thereof and herewith makes payment by
cash, certified check or bank draft of the purchase price in full for the Shares
in accordance with the Warrant. 

Please issue a certificate for the shares being purchased as
follows in the name of the Warrant Holder: 

	NAME: 	 	 
		(Please
      Print) 	 
	  	 	 
	ADDRESS: 	 	 
	 	 	 
	 	 	 

The Warrant Holder represents and warrants to the Corporation
that: 

	(a) 	
      The Warrant Holder has not offered or sold the Shares
      within the meaning of the United States Securities Act of 1933 (the
      "Act");

	 	 	 
	(b) 	
      The Warrant Holder is acquiring the Shares for its own
      account for investment, with no present intention of dividing my interest
      with others or of reselling or otherwise disposing of all or any portion
      of the same;

	 	 	 
	(c) 	
      The Warrant Holder does not intend any sale of the Shares
      either currently or after the passage of a fixed or determinable period of
      time or upon the occurrence or non-occurrence of any predetermined event
      or circumstance;

	 	 	 
	(d) 	
      The Warrant Holder has no present or contemplated
      agreement, undertaking, arrangement, obligation, indebtedness or
      commitment providing for or which is likely to compel a disposition of the
      Shares;

	 	 	 
	(e) 	
      The Warrant Holder is not aware of any circumstances
      presently in existence which are likely in the future to prompt a
      disposition of the Shares;

	 	 	 
	(f) 	
      The Shares were offered to the Warrant Holder in direct
      communication between the Warrant Holder and the Corporation and not
      through any advertisement of any kind;

	 	 	 
	(g) 	
      The Warrant Holder has the financial means to bear the
      economic risk of the investment which it hereby agrees to make;

	 	 	 
	(h) 	
      This Subscription Form will also confirm the Warrant
      Holder’s agreement as follows:

	 	 	 
		(i) 	
      The Warrant Holder will only sell the Shares in
      accordance with the provisions of Regulation S of the Act pursuant to
      registration under the Act, or pursuant to an available exemption from
      registration pursuant to the Act;

- 2 - 

	 	(ii) 	
      The Corporation will refuse to register any transfer of
      the Shares not made in accordance with the provisions of Regulation S of
      the Act, pursuant to registration under the Act, or pursuant to an
      available exemption from registration;

	 	 	 
	 	(iii) 	
      The Warrant Holder will not engage in hedging
      transactions except in accordance with the Act;

	 	 	 
	 	(iv) 	
      The Warrant Holder has no right to require the
      Corporation to register the Shares under the Act;

	 	 	 
	 	(v) 	
      The certificates representing the Shares will be endorsed
      with the following legend:

  
    
      THE SECURITIES REPRESENTED HEREBY
        HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A
        U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED
        STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT").

      NONE OF THE SECURITIES REPRESENTED
        HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES
        LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY
        OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS
        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. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY
        REGULATION S UNDER THE 1933 ACT. 

    

  

	 	(vi) 	
      The Warrant Holder is not a U.S. Person, as defined in
      Regulation S of the Act.

Please deliver a share certificate in respect of the common
shares referred to in the warrant certificate surrendered herewith but not
presently subscribed for, to the Warrant Holder. 

DATED this _____ day of ______________________________,
____________. 

	Signature of Warrant Holder: 	 	 
	 	 	 
	Name of Warrant Holder: 	 	 
	 	 	 
	Address of Warrant Holder: 	 	 

INSTRUCTIONS FOR SUBSCRIPTION 

The signature to this Subscription must correspond in every
particular with the name written upon the face of the Warrant Certificate
without alteration or enlargement or any change whatever. If there is more than
one subscriber, all must sign this Subscription. 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 this Subscription are being
forwarded by mail, registered mail must be employed.Filed by sedaredgar.com - Caleco Pharma Corp. - Exhibit 10.1

CONSULTING AGREEMENT 

October 27th, 2009 

                              The
parties to this agreement are Dr. Harry H.S. Fong (the “Consultant”) and Caleco
Pharma Corporation, a Nevada corporation (the “Company”). 

                              The
Company is engaged in the analysis, testing, development and commercialization
of proprietary substances that may have medical value in the treatment of
certain diseases in humans; such substances include, but are not limited to, a
botanical-based product known as “Lamiridosins,” also known as Lamiridosin
(“Lamiridosins”) which is owned by and based on intellectual property of the
Company (all of the foregoing activities being hereinafter referred to as the
“Business”).

                              The
Consultant is a Professor Emeritus of Pharmacognosy, Department of Medicinal
Chemistry and Pharmacognosy, University of Illinois at Chicago, holds a Ph.D.
degree from The Ohio State University, has substantial experience in the testing
and evaluation of botanical-based substances for potential medicinal uses, and
has acted as a consultant for several companies in connection with the
evaluation and/or testing of products owned or licensed by such companies. 

                              Concurrently
with the execution and delivery of this agreement, a corporation controlled by
the Consultant (“NPPharm”), on the one hand, and the Company, on the other hand,
are entering into a testing agreement (the “Testing Agreement”) pursuant to
which, among other things, NPPharm will be responsible for the conduct of
certain tests with respect to the Company’s “Lamiridosins” substance. 

                              The
Company wishes to retain the Consultant, and the Consultant wishes to be
retained by the Company, for the purposes, and on the terms and conditions, set
forth below in this agreement. 

                              NOW,
THEREFORE, in consideration of the mutual covenants and agreements of the
parties contained herein, and other good and valuable consideration, the receipt
and legal sufficiency of which are hereby acknowledged, the parties hereto agree
as follows: 

                              1.      Retention
as Consultant; Services.

                              (a)      The
Company hereby retains the Consultant to render consulting services to the
Company on the terms, provisions and conditions of this agreement, and the
Consultant hereby accepts that retention. The Consultant shall render his
services under this agreement diligently, to the best of the Consultant's
talents, skills and expertise, and in accordance with the highest ethical
standards. The Consultant shall not delegate the performance of any such
services to any other person, firm or corporation without the prior 

written consent of the Company, which consent the Company may
grant or withhold in its sole and absolute discretion.

                              (b)     
The Consultant shall, as requested by the Company from time to time, consult
with and advise the Company's management, employees and agents, at reasonable
times, in matters related to the Business. Such consultation services shall
include, without limitation, assisting the Company with development of its
general scientific direction and strategy, assisting the Company with the
recruitment of additional full-time or part-time scientific and management
personnel, assisting the Company (including through participating in
presentations) with the due diligence activities of potential investors and
strategic partners, interacting with representatives of government authorities
(including licensing authorities) related to potential geographic markets for
the Company’s products, and performing such other technical matters and
activities within the Consultant’s area of expertise as the Company may
reasonably request to assist the Company in its pursuit, development, licensing
and commercialization of its products relating to the Business. 

                              (c)      If
requested by the Company, the Consultant also will participate as a founding
member of the Company's Scientific Advisory Board which the Company may
establish. The Consultant’s services as a member of the Company’s Scientific
Advisory Board, if applicable, shall be considered part of the Consultant’s
services hereunder and the Consultant’s time, if any, spent in connection with
the Scientific Advisory Board shall be compensated pursuant to the terms of this
agreement. 

                              (d)      The
Consultant shall provide not less than twenty (20) hours of consulting per year
(with a “year” for this purpose beginning on September 1 and ending on August
31). As reasonably requested by the Company, the consulting services pursuant to
this agreement shall be provided by the Consultant over the telephone, in person
at the Consultant's office, at the Company's offices or another reasonable
location, or through written reports or correspondence (including e-mail). If
the Company requests additional consulting hours, the Consultant shall be paid a
fee for each additional hour as set forth in section 3 hereof. 

                              (e)      Subject
to the foregoing, and subject to the provisions of Section 8 hereof, the
Consultant shall have the right to engage in any other gainful activities,
ventures and businesses. 

                              2.      Term.
Subject to earlier termination pursuant to Section 6 hereof, the term of the
retention of the Consultant under this agreement (as the same may be extended in
accordance with this Section 2 or terminated earlier as provided herein, the
"Term") shall commence on the date hereof and shall continue in effect until the
first anniversary hereof, whereupon this agreement shall automatically renew for
successive one-year periods unless terminated by either party by written notice
to the other party not less than sixty (60) days prior to the end of the
then-existing Term, in which event this agreement shall terminate as of the last
day of the then-existing Term. 

-2- 

                              3.     
Compensation; No Benefits.

                              (a)     
In consideration of the services rendered by the Consultant hereunder, the
Company shall pay to the Consultant a monthly fee of $1,000.00, which fee shall
be payable at the beginning of each month. The Consultant shall provide prompt
notice to the Company in the event that the Consultant anticipates that the
consulting services performed by the Consultant during any year shall exceed 20
hours. Upon approval by the Company, the Consultant shall perform such
additional services, and the Company shall compensate the Consultant for such
services at the hourly rate of $600.00 per hour, payable promptly after
submission by the Consultant of reasonable time records describing the services
performed for such year. 

                              (b)     
Because the Consultant is not an employee of Company, he acknowledges and agrees
that he is not entitled to participate in or receive any benefit or right as a
Company employee under any Company employee benefit or welfare plan, including,
without limitation, employee insurance, pension, savings and security plans as a
result of his entering into this agreement. The Consultant shall be solely
responsible for payment of and withholding of all income, employment, and other
taxes. The Consultant shall not be entitled to any payment for vacation time.

                              4.      Business
Expenses. The Company shall reimburse the Consultant for all reasonable
expenses actually incurred or paid by the Consultant during the Term in
connection with activities that are pre-approved in writing pursuant to the
performance of the Consultant's duties hereunder, after submission by the
Consultant to the Company of satisfactory supporting documentation in accordance
with the Company’s policies from time to time in effect. Travel and lodging
expenses shall require specific prior written approval by the Company. The
requirement that Consultant obtain pre-approval in writing may be excused when,
due to the exigent circumstances, it is not practical to obtain written
pre-approval, in which case verbal pre-approval shall suffice.

                              5.      Independent
Contractor. The Consultant shall be an independent contractor in providing
the services hereunder and shall report directly to the President of the
Company. Nothing contained in this agreement shall be deemed or construed to
create a partnership or joint venture or any principal/agent or
employer/employee relationship. The Consultant shall not have any right to
legally bind or otherwise obligate the Company. The Consultant shall be liable
for, and shall indemnify the Company against, his own debts and obligations,
including the payment of all required taxes, unemployment insurance and similar
charges. 

                              6.      Termination.

                              (a)     
In the event of the death of the Consultant during the Term, the Consultant's
retention hereunder shall automatically terminate as of the date of death. In
the event of the Consultant's Incapacity (as hereinafter defined), the Company
may, in its sole discretion, terminate the Consultant's retention hereunder
effective upon written notice to the Consultant. The Company shall have the
right to terminate the Consultant's retention under this agreement at any time
for Cause (as hereinafter defined) effective upon 

-3- 

written notice to the Consultant. The Consultant shall have the
right to terminate the Consultant's retention under this agreement at any time
for any reason effective upon written notice to the Company.

                              (b)      Upon
any termination of this agreement as provided in section 6(a) hereof, the
Consultant or the Consultant's legal representative, as the case may be, shall
be entitled to receive, and the Company shall pay the Consultant or the
Consultant’s legal representative, as the case may be, (i) the compensation
owing to the Consultant hereunder through the date of termination; and (ii) any
business expenses that were properly reimbursable to the Consultant pursuant to
Section 4 hereof through the date of termination. The Consultant shall be
entitled to no further payment upon such termination; provided,
however, that if the monetary value of the consulting services Consultant
has provided through the date of termination exceeds the amount of compensation
received by Consultant through that date, the Company shall be required to pay
Consultant the difference between the monetary value and the compensation
received. The monetary value of Consultant’s services shall be based on his
hourly rate of $600 per hour.

                              (c)     
For purposes of this agreement, “Incapacity” shall mean the Consultant’s
inability to perform his duties hereunder on account of illness or other
impairment for three (3) months in any period of twelve (12) consecutive months.

                              (d)     
For purposes of this agreement, “Cause” shall mean: (i) any breach of any
material covenant of the Consultant contained in this agreement and the
Consultant's failure to cure such breach where it is capable of a cure within
twenty (20) days of the Consultant’s receipt of written notice with respect
thereto; (ii) any willful malfeasance, gross negligence or gross or willful
misconduct in the performance of the Consultant's duties or obligations
hereunder; or (iii) any conviction of the Consultant of or no contest plea by
the Consultant to a felony, or the entry of a guilty plea by the Consultant to a
lesser included offense or crime in exchange for withdrawal of a felony
indictment or felony charge by information. 

                              (e)      No
termination by the Company of the Consultant’s retention hereunder shall affect
the Consultant’s duties and obligations under section 8 or section 9 hereof.

                              7.      Return
of Property. Upon a termination of the Consultant's consultancy hereunder
for any reason whatsoever, the Consultant shall promptly deliver to the Company
all property belonging to, or administered by the Company or any of the other
Company Parties or any of their respective Clients, including, without
limitation, all materials relating to any Confidential Information (as defined
below). The Consultant further agrees that he shall not make or retain any copy
or extract from such materials. 

                              8.      Covenants
Not to Compete and Not to Solicit.

                              (a)      The
Consultant shall not, anywhere in the world, during the Term and for a period of
one year after the termination of the Term: 

                              (i)      except
as set forth in section 8(b) hereof, directly or indirectly engage or
participate in any Competitive Business (as hereinafter defined), or 

-4- 

aid or assist in the creation or
operation of, make any financial investment in, or render services (including,
but not limited to, as an employee, officer, director, consultant, manager,
advisor or otherwise) to or for, any Person, firm, corporation or other business
enterprise, wherever located, that is engaged or intends to be engaged, directly
or indirectly, Competitive Business; or

                              (ii)   
directly or indirectly, solicit, entice, persuade, induce or cause any employee,
officer, manager, director, consultant, agent or independent contractor of the
Company to terminate his, her or its employment, consultancy or other engagement
by the Company to become employed by or engaged by any person or entity other
than the Company, or approach any such employee, officer, manager, director,
consultant, agent or independent contractor for any of the foregoing purposes,
or authorize or assist in the taking of any of such actions by any person or
entity. 

                              (b)      For
purposes of this section 8, a “Competitive Business” shall mean any business
that is engaged in the analysis, testing, development and commercialization of
proprietary substances of the type being developed by the Company during the
term of this agreement that may have medical value in the treatment of diseases
in humans, but shall not include any university-based analysis, research,
testing or development of substances that is supported by research grants, and
that is not funded or supported by any individual or entity that is engaged in a
business that is in competition with the Company. 

                              (c)      Notwithstanding
anything set forth in Section 8(a), this agreement shall not prohibit the
Consultant from (i) conducting after the Term of this agreement (but not during
the Term), on behalf of any person or entity, testing services similar to the
testing services to be conducted by NPPharm on behalf of the Company pursuant to
the Testing Agreement (ii) incidental consulting with respect to any botanical
based substance that is not intended to treat any of the diseases currently
intended to be treated by Lamiridosins, or (iii) making any passive investments
in the securities of any business enterprise to the extent that such securities
(a) are actively traded on a United States national securities exchange, on the
NASDAQ National Market System or on any foreign securities exchange and (b)
represent, at the time of acquisition, less than two percent (2%) of the
aggregate voting power of such business enterprise. For this purpose, no
investment shall qualify as a “passive investment” if the Consultant shall act
as a director or officer of, or otherwise participate in the management of, the
Person in whom the investment is made. 

                              9.      Applicability
of Non-Disclosure Agreement. The terms and provisions of the non-disclosure
agreement, dated October 27th, 2009, between the Consultant and the Company (the
“Non-Disclosure Agreement”) shall survive the execution and delivery of this
agreement and shall remain in full force and effect, and shall apply fully to
the activities of the Consultant pursuant to this agreement and to any
Confidential Information (as defined in the Non-Disclosure Agreement ) he may
obtain in connection with the performance of any of his activities hereunder;
and the activities of the Consultant pursuant to this agreement shall be deemed
“contemplated services or activities” for purposes of section 1(a) of the
Non-Disclosure Agreement. 

-5- 

                              10.      Work
for Hire. 

                              (a)      The
Consultant shall promptly disclose to the Company in writing all improvements,
inventions, works of authorship, formulas, ideas, processes, techniques,
know-how and data, whether or not patentable (collectively, “Work Product”),
made or conceived, developed, reduced to practice or learned by the Consultant,
either alone or jointly with others, in connection with the services performed
by the Consultant pursuant to this agreement. All of such Work Product shall be
the sole and exclusive property of the Company and the Consultant shall not have
any right, title or interest therein and shall constitute “works made for hire”
under all applicable copyright, trademark, and similar or related statutes,
regulations, or decisional law. In furtherance of the foregoing, the Consultant
hereby assigns to the Company all of the Consultant's right, title, and
interest, whether choate or inchoate or whole or partial, in any such Work
Product. 

                              (b)      The
Consultant shall cooperate fully and promptly with, and otherwise facilitate,
any efforts by the Company to vest in the Company all right, title and interest
in and to the Work Product and to register, preserve, and protect the Work
Product from use by others, or from dilution or diminution. The Consultant shall
assist the Company in every proper way to obtain and enforce patents, copyrights
or other rights on said Inventions in any and all countries, and will execute
all documents reasonably necessary or appropriate for this purpose. The
Consultant shall be compensated for such assistance at the hourly rate specified
in paragraph 3, above. The Consultant shall execute and deliver any and all
documents, agreements and instruments to evidence the rights of the Company in
the Work Product as provided in this Section 10. The Consultant hereby
irrevocably names the Chairman, the President and the Secretary of the Company
as his, her or its attorney-in-fact, and irrevocably grants to the Chairman, the
President and the Secretary of the Company a power of attorney, in each case
individually and with full power of substitution, to execute and deliver any and
all documents, agreements and instruments in the name of the Consultant as may
be reasonably required to give effect to the Consultant’s covenant under this
Section 10(b); provided, that this power of attorney shall be exercised
only with respect to any document, agreement or instrument that relates directly
and solely to the rights of the Company in the Work Product as provided in this
Section 10, and that the Consultant fails to execute and deliver after five days
written request by the Company. 

                              11.      Certain
Additional Agreements. 

                              (a)     
The Consultant agrees that it is a legitimate interest of the Company and
reasonable and necessary for the protection of the goodwill and business of the
Company, which are valuable to the Company, that the Consultant make the
covenants contained herein and that the Company would not have entered into this
agreement or the Testing Agreement unless the covenants set forth in this
agreement, including, but not limited to, the covenants contained in section 8,
section 9 and section 10, were agreed to by the Consultant. 

                              (b)     
The parties acknowledge that (i) the type and periods of restriction imposed in
the provisions of section 8, section 9 and section 10 are fair and reasonable
and are reasonably required to protect and maintain the proprietary interests of
the Company 

-6- 

described above, other legitimate business interests of the
Company and the goodwill associated with the Business conducted by the Company,
(ii) the Business conducted by the Company extends throughout the world and
(iii) the time, scope, geographic area and other provisions of section 8,
section 9 and section 10 above have been specifically negotiated by
sophisticated commercial parties, represented by experienced legal counsel. It
is further understood and agreed that the potential markets for the Company’s
products are located throughout the world and it may be necessary for the
Company to serve such markets from any location, and therefore it is reasonable
that the covenants set forth herein are not limited by any narrow geographic
area but extend throughout the world. 

                              (c)      In
the event that any covenant contained in this agreement, including, but not
limited to, any of section 8, section 9 and section 10 hereof, shall be
determined by any court or other tribunal of competent jurisdiction to be
invalid or unenforceable by reason of its extending for too great a period of
time or over too great a geographical area or by reason of its being too
extensive in any other respect, (i) such covenant shall be interpreted to extend
over the maximum period of time for which it may be enforceable and/or over the
maximum geographical area as to which it may be enforceable and/or to the
maximum extent in all other respects as to which it may be enforceable, all as
determined by such court or other tribunal making such determination, and (ii)
in its reduced form, such covenant shall then be enforceable, but such reduced
form of covenant shall only apply with respect to the operation of such covenant
in the particular jurisdiction in or for which such adjudication is made. It is
the intention of the parties that the provisions of this agreement shall be
enforceable to the maximum extent permitted by applicable law. 

                              (d)      The
existence of any claim or cause of action which the Consultant may have against
the Company shall not constitute a defense or bar to the enforcement of any of
the provisions of this agreement and shall be pursued through separate action in
a court or other tribunal by the Consultant. 

                              12.     
Specific Performance. The Consultant acknowledges that any breach or
threatened breach of the covenants contained in this agreement will cause the
Company material and irreparable damage, the exact amount of which will be
difficult to ascertain, and that the remedies at law for any such breach will be
inadequate. Accordingly, the Consultant agrees that the Company shall, in
addition to all other available rights and remedies (including, but not limited
to, seeking such damages as it can show it has sustained by reason of such
breach), be entitled to specific performance and injunctive relief in respect of
any breach or threatened breach of this agreement, without being required to
post bond or other security and without having to prove the inadequacy of the
available remedies at law.

                              13.     
Certain Representations and Warranties of the Consultant. The Consultant
hereby represents and warrants to the Company that: (a) the Consultant has the
full right, power and authority to execute and deliver this agreement and to
perform his obligations hereunder and (b) the execution and delivery of this
agreement by the Consultant do not, and the performance by the Consultant of his
obligations hereunder will not, (i) conflict with or violate any of the terms or
provisions of any contract or other arrangement to which the Consultant is a
party or is bound, or (ii) require the Consultant to 

-7- 

obtain any consent, approval or action of, make any filing with
or give any notice to any Person as a result or under the terms ofany contract
or license to which the Consultant is a party or by which any of his assets is
bound. 

                              14.      Agreement
Regarding Publications, Etc. The Consultant acknowledges that publication or
oral disclosure of any Work Product or other work prior to filing for patent or
copyright protection, as applicable, could result in the complete loss of any
commercial value of the Consultant's work on behalf of the Company or otherwise
impair valuable intellectual property rights of the Company. Therefore, the
Consultant shall not make any publication, including any papers, letters,
abstracts, posters or articles, or any speech or other oral presentation,
discussion, description or summary, relating to any of the Consultant's work
performed pursuant to this agreement or any of NPPharm’s work pursuant to the
Testing Agreement without the prior written consent of the Company, which the
Company may withhold in its sole discretion. 

                              15.     
Miscellaneous. 

                              (a)     
Notices. All notices, demands, consents, requests, instructions and other
communications to be given or delivered or permitted under or by reason of the
provisions of this agreement or in connection with the transactions contemplated
hereby shall be in writing and shall be deemed to be delivered and received by
the intended recipient as follows: (a) if personally delivered, on the Business
Day of such delivery (as evidenced by the receipt of the personal delivery
service), (b) if mailed certified or registered mail return receipt requested,
four (4) Business Days after being mailed, (c) if delivered by overnight courier
(with all charges having been prepaid), on the Business Day of such delivery (as
evidenced by the receipt of the overnight courier service of recognized
standing), or (d) if delivered by facsimile transmission, on the Business Day of
such delivery if sent by 6:00 p.m. in the time zone of the recipient, or if sent
after that time, on the next succeeding Business Day (as evidenced by the
printed confirmation of delivery generated by the sending party's facsimile
machine). If any notice, demand, consent, request, instruction or other
communication cannot be delivered because of a changed address of which no
notice was given (in accordance with this Section 15(a), or the refusal to
accept same, the notice, demand, consent, request, instruction or other
communication shall be deemed received on the second Business Day the notice is
sent (as evidenced by a sworn affidavit of the sender). All such notices,
demands, consents, requests, instructions and other communications will be sent
to the following addresses or facsimile numbers as applicable:

If to the Company, to: 

Caleco Pharma Corp, 
103 East Holly
St 
Suite 410 
98225 BELLINGHAM 
Washington WA 
Facsimile No.: (360)
230-7304 
Attention: John Boschert - President 

-8- 

with a copy to: 

O’Neill Law Group 
Suite 950

650 West Georgia St 
V6B4N7 VANCOUVER 
Canada

If to the Consultant, to: 

Harry H.S. Fong 

751 Highview Avenue 

Glen Ellyn, Illinois 60137 
via
e-mail to h2sfong@sbcglobal.net

with a copy to: 

Smith, Rickert & Smith 
1547
Warren Avenue 
Downers Grove, IL 60515 
Facsimile No. 630-435-1625

Attn.:      Edward D. Rickert, Esq. 

or to such other address as any party may specify by notice
given to the other party in accordance with this Section 15(a).

                              (b)      Amendment.
This agreement may not be modified, amended, altered or supplemented, except by
a written agreement executed by each of the parties hereto.

                              (c)     
Entire Agreement. This agreement contains the entire understanding and
agreement of the parties relating to the subject matter hereof and supersedes
all prior and/or contemporaneous understandings and agreements of any kind and
nature (whether written or oral) among the parties with respect to such subject
matter, all of which are merged herein.

                              (d)      Waiver.
Any waiver by a party hereto of any breach of or failure to comply with any
provision or condition of this agreement by any other party hereto shall not be
construed as, or constitute, a continuing waiver of such provision or condition,
or a waiver of any other breach of, or failure to comply with, any other
provision or condition of this agreement, any such waiver to be limited to the
specific matter and instance for which it is given. No waiver of any such breach
or failure or of any provision or condition of this agreement shall be effective
unless in a written instrument signed by the party granting the waiver and
delivered to the other party hereto in the manner provided for in Section 15(a)
hereof. No failure or delay by any party to enforce or exercise its rights 

-9- 

hereunder shall be deemed a waiver hereof, nor shall any single
or partial exercise of any such right or any abandonment or discontinuance of
steps to enforce such rights, preclude any other or further exercise thereof or
the exercise of any other right.

                              (e)      Governing
Law; Jurisdiction; Arbitration of Disputes 

                              (i)    
This agreement shall be governed by and construed in accordance with the laws of
the State of Nevada applicable to agreements made and to be performed in that
state, without regard to any of its principles of conflicts of laws or other
laws that would result in the application of the laws of another
jurisdiction.

                              (ii)  
 Notwithstanding anything herein to the contrary, all disputes among the
parties arising out of or relating to this agreement shall be resolved by final
and binding arbitration, conducted by a single arbitrator pursuant to the
commercial arbitration rules of the American Arbitration Association.
Depositions may be taken and other discovery may be obtained during such
arbitration proceedings to the same extent as authorized in civil juridical
proceedings. Any award issued as a result of such arbitration shall be final and
binding between the parties thereto and not subject to any judicial review
whatsoever, and shall be enforceable by any court having jurisdiction over the
party against whom enforcement is sought. The parties shall cause the arbitrator
to reduce its findings of fact and conclusions of law to writing. The parties
shall direct the arbitrator to allocate the responsibility to pay the costs and
expenses of the arbitration (including, but not limited to, attorneys’ fees and
expenses and the costs of the arbitrator) between the parties to the arbitration
on the basis of the relative extent to which the arbitrator determines the
parties have prevailed in the arbitration. In addition, each party shall be
entitled to collect its costs and expenses (including, but not limited to,
attorneys’ fees and expenses) incurred in enforcing any arbitration award. The
venue of any such arbitration shall be Nevada if initiated by the Company, or
DuPage County, Illinois, if initiated by Consultant. 

                              (iii)
Each of the parties unconditionally and irrevocably consents to the exclusive
jurisdiction of the courts of the State of Nevada or Illinois and the federal
district courts for the Nevada and the Northhern District of Illinois with
respect to any suit, action or proceeding arising out of or relating to this
agreement that cannot be resolved by arbitration hereunder or for the purpose of
enforcing any arbitration award hereunder, and each of the parties hereby
unconditionally and irrevocably waives any objection to venue in any such court
or to assert that any such court is an inconvenient forum, and agrees that
service of any summons, complaint, notice or other process relating to such
suit, action or other proceeding may be effected in the manner provided in
Section 15(a) hereof. Each of the parties hereby unconditionally and irrevocably
waives the right to a trial by jury in any such action, suit or other
proceeding.

                              (f)     
Binding Effect, No Assignment, etc. This agreement shall be binding upon
and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Neither this agreement nor any right, interest
or obligation hereunder may be assigned by either party hereto without the prior
written consent of the other party, and any attempt to do so shall be void and
of no force and effect, except (a) for assignments and transfers by operation of
Law and (b) that the Company may assign any 

-10- 

or all of its respective rights, interests and obligations
hereunder to (i) any other Company Party, (ii) any purchaser of a majority of
the issued and outstanding stock of the Company or a substantial part of the
assets of the Company relating to the Business or (iii) any financial
institution providing financing to the Company from time to time.

                              (g)      Headings.
The section headings contained in this agreement are inserted for reference
purposes only and shall not affect in any way the meaning, construction or
interpretation of this agreement. Any reference to the masculine, feminine, or
neuter gender shall be a reference to such other gender as is appropriate.
References to the singular shall include the plural and vice versa.

                              (h)      Drafting
History. This agreement shall be construed and interpreted without regard to
any presumption against the party causing this agreement to be drafted. The
parties acknowledge that this agreement was negotiated and drafted with each
party being represented by competent counsel of its choice and with each party
having an equal opportunity to participate in the drafting of the provisions
hereof and shall therefore be construed as if drafted jointly by the
parties.

[The remainder of this page is intentionally blank.] 

-11- 

                              (i)      Counterparts.
This agreement may be executed in two (2) or more counterparts (including by
facsimile signature, which shall constitute a legal and valid signature), and by
the different parties hereto in separate counterparts, each of which when
executed shall be deemed to be an original, and all of which, when taken
together, shall constitute one and the same document. This agreement shall
become effective when one or more counterparts, taken together, shall have been
executed and delivered by all of the parties.

 

	 	 /s/ Harry H.S. Fong 	 
	 	Harry H.S. Fong 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	CALECO PHARMA CORPORATION 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ John Boschert 	 
	 	 	Name: John Borschert 	 
	 	 	Title: President, CEO 	 

-12-

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