Common use of ALLOTMENT AND ISSUANCE OF SECURITIES Clause in Contracts

ALLOTMENT AND ISSUANCE OF SECURITIES. 2.1 The Company agrees to allot and issue to the Creditor 800,000 shares in the capital of the Company (the “Shares”) at a deemed price of US$0.05 per Share for each US$0.05 of indebtedness, and for each such share so issued, will issue one warrant to purchase a further share of the Company at a price of US$0.20 per share for a term of two years (the “Warrants”) as full and final payment of $40,000.00 worth of the Debt and the Creditor agrees to accept the Shares and Warrants as full and final payment of $40,000.00 worth of the Debt, leaving the Company indebted to the Creditor in the amount of CAD$253,510.00 following this transaction. 2.2 The Creditor hereby agrees that, upon delivery of the Shares and the Warrants by the Company in accordance with the provisions of this Agreement, that $40,000 of the Debt will be fully satisfied and extinguished effective as of the date set out above, and the Creditor will remise, release and forever discharge the Company and its directors, officers and employees from any and all obligations relating to this $40,000 Debt.

ALLOTMENT AND ISSUANCE OF SECURITIES. 2.1 The Company agrees to allot and issue to the Creditor 800,000 100,000 shares in the capital of the Company (the “Shares”) at a deemed price of US$0.05 per Share for each US$0.05 of indebtedness, and for each such share so issued, will issue one warrant to purchase a further share of the Company at a price of US$0.20 per share for a term of two years (the “Warrants”) as full and final payment of $40,000.00 5,000.00 worth of the Debt and the Creditor agrees to accept the Shares and Warrants as full and final payment of $40,000.00 5,000.00 worth of the Debt, leaving the Company indebted to the Creditor in the amount of CAD$253,510.00 CDN$194,188.74 following this transaction. 2.2 The Creditor hereby agrees that, upon delivery of the Shares and the Warrants by the Company in accordance with the provisions of this Agreement, that $40,000 5,000 of the Debt will be fully satisfied and extinguished effective as of the date set out above, and the Creditor will remise, release and forever discharge the Company and its directors, officers and employees from any and all obligations relating to this $40,000 5,000 Debt.