Common use of Debt Conversion Clause in Contracts

Debt Conversion. The Creditor and the Company shall settle the Debt by converting the Debt into 2,500,000 units of the Company (the “Units”) at a price of $0.005 per Unit. Each Unit shall consist of one common share in the capital of the Company (a “Share”) and one-half of one share purchase warrant with each whole warrant exercisable at $1.50 per Share for a period of three (3) years from the date of issuance. Such conversion shall eliminate the obligation of the Company to repay the Debt to the Creditor.

Debt Conversion. The Creditor and the Company shall settle the Debt by converting the Debt into 2,500,000 12,500,000 units of the Company (the “Units”) at a price of $0.005 per Unit. Each Unit shall consist of one common share in the capital of the Company (a “Share”) and one-half of one share purchase warrant with each whole warrant exercisable at $1.50 per Share for a period of three (3) years from the date of issuance. Such conversion shall eliminate the obligation of the Company to repay the Debt to the Creditor.