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 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 $5,000.00 worth of the Debt and the Creditor agrees to accept the Shares and Warrants as full and final payment of $5,000.00 worth of the Debt, leaving the Company indebted to the Creditor in the amount of CDN$194,188.74 following this transaction.

ALLOTMENT AND ISSUANCE OF SECURITIES. 2.1 The Company agrees to allot and issue to the Creditor 100,000 800,000 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 $5,000.00 40,000.00 worth of the Debt and the Creditor agrees to accept the Shares and Warrants as full and final payment of $5,000.00 40,000.00 worth of the Debt, leaving the Company indebted to the Creditor in the amount of CDN$194,188.74 CAD$253,510.00 following this transaction.