Contract
THIS
PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES
TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE
NOT
U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT").
NONE
OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT RELATES HAVE BEEN
REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS
SO
REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE
1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
AND PROVINCIAL LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933
ACT.
SUBSCRIPTION
AGREEMENT
TO:
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LANS
HOLDINGS, INC. (the
"Company")
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1.
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Subscription
for
Shares
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1.1 The
undersigned (the "Subscriber") hereby irrevocably subscribes for and agrees
to
purchase _______ common shares in the capital of the Company (the "Shares")
at a
price of US$0.02 per Share (such subscription and agreement to purchase being
the "Subscription"), for the total purchase price of US$___ (the
"Subscription Proceeds"), which is tendered herewith, on the basis of the
representations and warranties and subject to the terms and conditions set
forth
herein.
1.2 The
Company hereby irrevocably agrees to sell, on the basis of the representations
and warranties and subject to the terms and conditions set forth herein, to
the
Subscriber the Shares.
1.3 Subject
to the terms hereof, the Subscription will be effective upon its acceptance
by
the Company.
2.
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Payment
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2.1 The
Subscription Proceeds must accompany this Subscription and shall be paid by
cash, cheque or bank draft drawn on a major Canadian or U.S. chartered bank
made
payable to the Company and delivered to the Company or its lawyers or may be
wired directly to either one of them. If the Subscription proceeds
are delivered to the Company's lawyers, the Subscriber authorizes the Company's
lawyers to deliver the Subscription Proceeds to the Company on the Closing
Date.
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 by the Company's lawyers on behalf of the Company. In
the event that this Subscription Agreement is not accepted by the Company for
whatever reason within 30 days of the delivery of an executed Subscription
Agreement by the Subscriber, this Subscription Agreement, the Subscription
Proceeds 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.
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Documents
Required
from Subscriber
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3.1 The
Subscriber must complete, sign and return to the Company two (2) executed copies
of this Subscription Agreement.
3.2 The
Subscriber shall 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, stock exchanges
and
applicable law.
4.
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Closing
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4.1 Closing
of the offering of the Shares (the "Closing") shall occur on or before
___________, 2007, or on such other date as may be determined by the Company
(the "Closing Date").
5.
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Acknowledgements
of
Subscriber
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5.1 The
Subscriber acknowledges and agrees that:
(a)
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none
of the Shares have been or will be registered under the 1933 Act,
or under
any state securities or "blue sky" laws of any state of the United
States,
and, unless so registered, may not be offered or sold in the United
States
or, directly or indirectly, to U.S. Persons, as that term is defined
in
Regulation S under the 1933 Act ("Regulation S"), except in accordance
with the provisions of Regulation S, pursuant to an effective registration
statement under the 1933 Act, or pursuant to an exemption from, or
in a
transaction not subject to, the registration requirements of the
1933 Act
and in each case only in accordance with any applicable state and
provincial securities laws;
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(b)
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the
Company has not undertaken, and will have no obligation, to register
any
of the Shares under the 1933 Act or to qualify any of the Shares
under any
state or provincial securities
laws;
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(c)
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the
Subscriber has received and carefully read this Subscription
Agreement;
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(d)
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the
decision to execute this Subscription Agreement and purchase the
Shares
agreed to be purchased hereunder has not been based upon any oral
or
written representation as to fact or otherwise made by or on behalf
of the
Company;
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(e)
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by
execution hereof the Subscriber has waived the need for the Company
to
communicate its acceptance of the purchase of the Shares pursuant
to this
Subscription Agreement;
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(f)
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the
Company is entitled to rely on the representations and warranties
of the
Subscriber contained in this Subscription Agreement and the Subscriber
will hold harmless the Company from any loss or damage it or they
may
suffer as a result of the Subscriber's failure to correctly complete
this
Subscription Agreement;
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(g)
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the
Subscriber will indemnify and hold harmless the Company and, where
applicable, its respective 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;
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(h)
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the
Subscriber has been advised to consult his own legal, tax and other
advisors with respect to the merits and risks of an investment in
the
Shares and with respect to applicable resale restrictions and he
is solely
responsible (and the Company is not in any way responsible) for compliance
with applicable resale
restrictions;
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(i)
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there
is no market for the Shares, no market for the Shares may ever exist
and
none of the Shares are listed on any stock exchange or automated
dealer
quotation system and no representation has been made to the Subscriber
that any of the Shares will become listed on any stock exchange or
automated dealer quotation system;
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(j)
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neither
the SEC nor any other securities commission or similar regulatory
authority has reviewed or passed on the merits of the
Shares;
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(k)
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no
documents in connection with the sale of the Shares hereunder have
been
reviewed by the SEC or any state securities
administrators;
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(l)
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there
is no government or other insurance covering any of the
Shares;
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(m)
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the
issuance and sale of the Shares to the Subscriber will not be completed
if
it would be unlawful or if, in the discretion of the Company acting
reasonably, it is not in the best interests of the
Company;
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(n)
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the
statutory and regulatory basis for the exemption claimed for the
offer and
sale of the Shares, although in technical compliance with Regulation
S,
would not be available if the offering is part of a plan or scheme
to
evade the registration provisions of the 1933 Act;
and
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(o)
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this
Subscription Agreement is not enforceable by the Subscriber unless
it has
been accepted by the Company.
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6.
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Representations,
Warranties and Covenants of the
Subscriber
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6.1 The
Subscriber hereby represents and warrants to and covenants with the Company
(which representations, warranties and covenants shall survive the Closing)
that:
(a)
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he
is not a U.S. Person;
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(b)
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he
is not acquiring the Shares for the account or benefit of, directly
or
indirectly, any U.S. Person;
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(c)
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he
is resident in the jurisdiction set out under the heading "Name and
Address of Subscriber" on the signature page of this Subscription
Agreement and the sale of the Shares 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;
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(d)
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he
is purchasing the Shares as principal for investment purposes only
and not
with a view to resale or distribution and, in particular, he has
no
intention to distribute, either directly or indirectly, any of the
Shares
in the United States or to U.S.
Persons;
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(e)
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he
is outside the United States when receiving and executing this
Subscription Agreement;
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(f)
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he
is aware that an investment in the Company is speculative and involves
certain risks, including the possible loss of the entire
investment;
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(g)
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he
has made an independent examination and investigation of an investment
in
the Shares and the Company and has depended on the advice of his
legal and
financial advisors and agrees that the Company will not be responsible
in
any way whatsoever for the Subscriber's decision to invest in the
Shares
and the Company;
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(h)
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he
(i) has adequate net worth and means of providing for his current
financial needs and possible personal contingencies, (ii) has no
need for
liquidity in this investment, and (iii) is able to bear the economic
risks
of an investment in the Shares for an indefinite period of
time;
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(i)
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he
(i) is able to fend for himself in the Subscription; (ii) has such
knowledge and experience in financial and business matters as to
be
capable of evaluating the merits and risks of his investment in the
Shares
and the Company; and (iii) has the ability to bear the economic risks
of
his prospective investment and can afford the complete loss of such
investment;
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(j)
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he
understands and agrees that the Company and others will rely upon
the
truth and accuracy of the acknowledgements, representations and agreements
contained in this Subscription Agreement and agrees that if any of
such
acknowledgements, representations and agreements are no longer accurate
or
have been breached, he shall promptly notify the
Company;
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(k)
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he
has duly executed and delivered this Subscription Agreement and it
constitutes a valid and binding agreement of the Subscriber enforceable
against the Subscriber in accordance with its
terms;
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(l)
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he
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
Shares;
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(m)
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he
understands and agrees that none of the Shares 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
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 and in each case only in accordance
with
applicable state and provincial securities
laws;
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(n)
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he
understands and agrees that offers and sales of any of the Shares
prior to
the expiration of a period of one year after the date of original
issuance
of the Shares (the one year period hereinafter referred to as the
"Distribution Compliance Period") shall only be made in compliance
with
the safe harbor provisions set forth in Regulation S, pursuant to
the
registration provisions of the 1933 Act or an exemption therefrom,
and
that all offers and sales after the Restricted Period shall be made
only
in compliance with the registration provisions of the 1933 Act or
an
exemption therefrom;
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(o)
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he
understands and agrees not to engage in any hedging transactions
involving
any of the Shares unless such transactions are in compliance with
the
provisions of the 1933 Act;
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(p)
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he
understands and agrees that the Company will refuse to register any
transfer of the 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;
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(q)
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if
he is acquiring the Shares as a fiduciary or agent for one or more
investor accounts, he has sole investment discretion with respect
to each
such account and he has full power to make the foregoing acknowledgments,
representations and agreements on behalf of such
account;
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(r)
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he
acknowledges that he has not acquired the Shares as a result of,
and will
not himself engage in, any "directed selling efforts" (as defined
in
Regulation S under the 0000 Xxx) in the United States in respect
of any of
the Shares 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; provided, however, that the Subscriber may sell or otherwise
dispose of any of the Shares pursuant to registration of any of the
Shares
pursuant to the 1933 Act and any applicable state securities laws
or under
an exemption from such registration requirements and as otherwise
provided
herein;
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(s)
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the
Subscriber is not aware of any advertisement of any of the Shares
and is
not acquiring the Shares as a result of any form of general solicitation
or general advertising including advertisements, articles, notices
or
other communications published in any newspaper, magazine or similar
media
or broadcast over radio or television, or any seminar or meeting
whose
attendees have been invited by general solicitation or general
advertising; and
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(t)
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no
person has made to the Subscriber any written or oral
representations:
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(i)
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that
any person will resell or repurchase any of the
Shares;
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(ii)
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that
any person will refund the purchase price of any of the
Shares;
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(iii)
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as
to the future price or value of any of the Shares;
or
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(iv)
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that
any of the Shares 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 Shares of the Company on any stock
exchange or automated dealer quotation
system.
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6.2 In
this
Subscription Agreement, the term "U.S. Person" shall have the meaning ascribed
thereto in Regulation S.
7.
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Representations
and
Warranties will be Relied Upon by the
Company
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7.1 The
Subscriber acknowledges that the representations and warranties contained herein
are made by him with the intention that such representations and warranties
may
be relied upon by the Company and its legal counsel in determining the
Subscriber's eligibility to purchase the Shares under applicable securities
legislation, or (if applicable) the eligibility of others on whose behalf he
is
contracting hereunder to purchase the Shares under applicable securities
legislation. The Subscriber further agrees that by accepting delivery
of the certificates representing the Shares on the Closing Date, he will be
representing and warranting that the representations and warranties contained
herein are true and correct as at the Closing Date with the same force and
effect as if they had been made by the Subscriber on the Closing Date and that
they will survive the purchase by the Subscriber of Shares and will continue
in
full force and effect notwithstanding any subsequent disposition by the
Subscriber of such Shares.
8.
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Resale
Restrictions
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8.1 The
Subscriber acknowledges that any resale of the Shares will be subject to resale
restrictions contained in the securities legislation applicable to each
Subscriber or proposed transferee. The Subscriber acknowledges that
the Shares have not been registered under the 1933 Act of the securities laws
of
any state of the United States and that the Company does not intend to register
same under the 1933 Act, or the securities laws of any such state and has no
obligation to do so. The Shares may not be offered or sold in the
United States unless registered in accordance with United States federal
securities laws and all applicable state securities laws or exemptions from
such
registration requirements are available.
9.
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Acknowledgement
and
Waiver
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9.1 The
Subscriber has acknowledged that the decision to purchase the Shares was solely
made on the basis of publicly available information. The Subscriber
hereby waives, to the fullest extent permitted by law, any rights of withdrawal,
rescission or compensation for damages to which the Subscriber might be entitled
in connection with the distribution of any of the Shares.
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10.
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Legending
and
Registration of Subject
Shares
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10.1 The
Subscriber hereby acknowledges that a legend may be placed on the certificates
representing any of the Shares to the effect that the Shares represented by
such
certificates are subject to a hold period and may not be traded until the expiry
of such hold period except as permitted by applicable securities
legislation.
10.2 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.
11.
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Costs
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11.1 The
Subscriber acknowledges and agrees that all costs and expenses incurred by
the
Subscriber (including any fees and disbursements of any special counsel retained
by the Subscriber) relating to the purchase of the Shares shall be borne by
the
Subscriber.
12.
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Governing
Law
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12.1 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 State of Nevada.
13.
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Survival
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13.1 This
Subscription Agreement, including without limitation the representations,
warranties and covenants contained herein, shall survive and continue in full
force and effect and be binding upon the parties hereto notwithstanding the
completion of the purchase of the Shares by the Subscriber pursuant
hereto.
14.
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Assignment
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14.1 This
Subscription Agreement is not transferable or assignable.
15.
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Execution
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15.1 The
Company shall be entitled to rely on delivery by facsimile machine of an
executed copy of this Subscription Agreement and acceptance by the Company
of
such facsimile copy shall be equally effective to create a valid and binding
agreement between the Subscriber and the Company in accordance with the terms
hereof.
16.
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Severability
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16.1 The
invalidity or unenforceability of any particular provision of this Subscription
Agreement shall not affect or limit the validity or enforceability of the
remaining provisions of this Subscription Agreement.
17.
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Entire
Agreement
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17.1 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 Shares 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.
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18.
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Notices
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18.1 All
notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted by any standard form
of
telecommunication. Notices to the Subscriber shall be directed to the
address on page 7 and notices to the Company shall be directed to it at
________________________, City of ____________, State of ______________,
________________ , Attention: The President.
19.
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Counterparts
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19.1 This
Subscription Agreement may be executed in any number of counterparts, each
of
which, when so executed and delivered, shall constitute an original and all
of
which together shall constitute one instrument.
IN
WITNESS WHEREOF the
Subscriber has duly executed this Subscription Agreement as of the date first
above mentioned.
DELIVERY
INSTRUCTIONS
1.
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Delivery
- please deliver the certificates
to:
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2.
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Registration
- registration of the certificates which are to be delivered at closing
should be made as follows:
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(name)
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(address)
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3.
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The
undersigned hereby acknowledges that it will deliver to the Company
all
such additional completed forms in respect of the Subscriber's purchase
of
the Shares as may be required for filing with the appropriate securities
commissions and regulatory
authorities.
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____________________________________
(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)
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A
C C E P T A N C E
The
above-mentioned Subscription Agreement in respect of the Shares is hereby
accepted by LANS HOLDINGS, INC.
DATED
at
___________________________________________, the _______ day of
__________________, 2007.
LANS
HOLDINGS, INC.
Per: ____________________________________
Authorized
Signatory