Exhibit 10.49

12-06-04

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|CONFIRMATION OF CREDIT FACILITIES LETTER                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Date: October 17, 2006                                        
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|BORROWER SPAR CANADA COMPANY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | BRANCH OF ACCOUNT BUSINESS MARKETS TORONTO WEST                | SRF No.851-791-517        
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|ADDRESS
Suite 360,1100 Sheppard Ave. West, Toronto On M3K 2B3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | ADDRESS
1233 THE QUEENSWAY
ETOBICOKE ON M8Z 1S1               
|CONTACT
JIM SEGRETO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | TELEPHONE NO.
(914) 332-4100 X 1002                            | BANKING OFFICER
DOROTHY YU | TELEPHONE NO.
(416) 253-8578
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|ROYAL BANK OF CANADA (the "Bank") hereby confirms the credit facility or credit facilities described below  (collectively,  the "Credit
Facility") subject to terms and conditions listed below and attached hereto. The dollar amount noted opposite each indicated  available
segment of the Credit  Facility is in Canadian  Dollars  ($) unless  otherwise  specified  and is the  maximum  amount  (subject to any
margining or other  requirements which may reduce the indicated maximum) that may be outstanding at any time under the Credit Facility.
The  provisions  of this  Agreement  shall be  binding  on the  Borrower  and shall  remain in full force and effect for so long as any
availability  exists or any obligations on the part of the Borrower remain  outstanding under the Credit Facility.  For purposes hereof
the term " Agreement " and the words " this  Agreement  ", " the  Agreement " and words to like effect or import shall mean and include
this Confirmation of Credit Facilities and the attached Terms and Conditions,  all as supplemented or amended at any time and from time
to time.
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|CREDIT FACILITY:Demand Facilities:
Availability of the demand facilities contained within the Credit Facility is at the sole discretion of the Bank and the Bank may
cancel or restrict the availability of any unutilized portion at any time and from time to time. Notwithstanding compliance with the
covenants and conditions contained herein, these facilities are repayable on demand.
Facility #1. Demand Operating Loan.$1,000,000.00 Minimum Retained Balance: $0.00 Revolves in increments of: $10,000.00 Business
Account #101-202-0. Transit #05902. Interest rate: RBP + 1.00% per annum. Interest payable, monthly in arrears, on the 26th day of
each month. Borrowings expected to fluctuate.

MARGINED: YES        NO                                                                                                                                                                                                                                                                                                                                                                                                
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|OTHER FACILITIES:
N/A                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
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|Fees:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
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|One Time Fees:
Payable upon acceptance of this agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Monthly Fees:
Payable in arrears on the 7th day of each month.
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|Negotiation / Set Up Fee:  $1,500.00                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Revolvement Fee: $500.00 (includes monitoring, margining & AM.
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|Loan Standby Fee: 0.25% (on authorised operating loan amount.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Account Management Fee:  NIL                                  
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|SECURITY: Security to be obtained and registered prior to first advance.

Security for all obligations of the Borrower to the Bank, including, without limitation, all obligations under the Credit Facility,
shall include:

General security agreement on the Bank's form 924 signed by the Borrower constituting a first ranking security interest in all assets
of the Borrower except real property;

Letter Agreement signed by Webster Business Credit Corporation advising RBC that they do not currently have any security interest in
any of the assets of Spar Canada and further agreed to not obtain a lien in the assets of Spar Canada without the consent of RBC.                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|MARGIN REQUIREMENT(IF APPLICABLE - SEE ALSO "MARGIN REQUIREMENTS" INCLUDED IN THE TERMS AND CONDITIONS ATTACHED HERETO)

Amounts outstanding under the all Demand Operating Loans Facility, which are indicated as margined, must not exceed:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

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|(a) | 75% of unencumbered good trade accounts receivable domiciled in Canada or the United States of America excluding inter-company
accounts, holdbacks receivable, contra accounts, and the entire outstanding balance of accounts receivables where any portion
thereof exceeds 90 days, If the over 90 day portion does not comprise more than 10% of the total receivable, then the under 90
day portion may be included, all of which are more particularly described in the form of monthly margin statement ("Monthly
Statement of Borrowing Limit") that is included as an attachment hereto; minus
|(b) | "Potential Prior-Ranking Claims" which are more particularly described in the form of Monthly Statement of Borrowing Limit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   

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|REPORTING REQUIREMENTS

The Borrower will provide the following to the Bank:

|Monthly:        | A Monthly Margin Statement of Borrowing limit with list of aged payables,  aged receivables,  priority claims as and when
required under Margin Requirements in the terms and conditions attached hereto;
|--------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Semi-
Annually: | Company prepared financial statement within 60 days after six months;                                                                                                                                    
|Annually:       | Review  engagement and company prepared business plan year-end  financial  statements within 120 days of each fiscal year
end;                                                                           

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|-------------------------------------- |  |  | 
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|FINANCIAL COVENANTS
The Borrower will:

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (a) | Maintain , to be measured semi-annually:                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     | DSC= Net Income + Depreciation + other non cash charges to income+  Interest  expense charged to current years income
statement,  LESS Dividends  paid/Shareholders loans  withdrawn/unfunded  capital expenditures divided by the total of
annual principal  payments on long term Debt including  capital lease obligations plus interest on all Debt including
Bank operating loans.                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|"Tangible Net Worth" means the aggregate of stated capital, retained earnings, 50% of YTD pre-tax income as reported in company
prepared financial statements (unless a reasonable corporate tax allowance has been made),  LESS amounts invested in or owed by other
Persons including inter-company trade accounts receivable, leasehold improvements, goodwill, trademarks, copyrights, patents, deferred
costs and other assets normally regarded as intangible under GAAP in Canada, all net of depreciation."
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (b) | Not, without the prior written consent of Royal Bank of Canada:                                                                                                                                                                                                                                                                                                                                                                                         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |     | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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|REPORTING REQUIREMENTS AND FINANCIAL COVENANTSare in addition to and not in substitution for the Terms and Conditions attached
hereto. Nothing contained in Reporting Requirements or Financial Covenants shall limit any right of the Bank to terminate or demand
payment of, or cancel or restrict availability of any unutilized portion of, any demand or other discretionary facility made available
under this Agreement. (See attached for Terms and Conditions)                                            
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|PRE DISBURSEMENT CONDITIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 1.  | Receipt of a letter of confirmation from SPAR Canada Company's corporate auditors that the historical financial statements
provided to Royal Bank of Canada for fiscal years 2003, 2004, 2005, and 6 months year to June 30, 2006 has been
reviewed by them and that there is nothing in the statements that caused them to believe that these financial
statements are not, in all material respects, prepared in accordance with US GAAP requirements.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2.  | Completion and registration of all collateral securities & loan documents.                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|ACCEPTANCE
This offer is open for acceptance until November 14, 2006 after which date it will be null and void, unless extended in writing by the
Bank.
LANGUAGE.The Borrower and the Bank have expressly requested that this Agreement and all related documents, including notices, be
drawn up in the English language. Les parties ont expressement demande que la presente convention et tous les documents y afferents, y
compris les avis, soient rediges en langue anglaise (Quebec only/Quebec seulement) 

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I acknowledge receipt of the Terms
and Conditions [12-06-04] attached to this confirmation letter and agree to be bound by
them. Accepted on this 20 day of October, 2006.

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|----------------------------- | --------------------
|SPAR CANADA COMPANY           | ROYAL BANK OF CANADA
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|Per: /s/James Segreto         | Per: /s/ Dorothy Yu 
|James Segreto                 | Dorothy Yu          
|Vice President and Controller | Account Managers/zh 
|                             
|Per:_________________________ |                     

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# CONFIRMATION OF CREDIT
FACILITIES LETTERTERMS AND CONDITIONS

|To: |  | ROYAL
BANK OF CANADA (the "Bank")
|--- |  | ---------------------------------

The Bank is requested by the Borrower
identified on the confirmation letter attached hereto to make loans or advances
(including, where applicable, by way of overdraft) to the Borrower in the manner and at
the rates and times specified herein (the Credit Facility). In consideration
of the Bank making the Credit Facility available, the Borrower agrees (if more than one,
jointly and severally - in Quebec, solidarily), with the Bank as follows:

|1. |  | DRAWDOWN
|-- |  | --------

| | While
this Agreement remains in force and if the Credit Facility includes a Demand Operating
Loan,the Borrower may borrow, repay and reborrow up to the limit specified in
respect of such loan at any time, subject to any applicable margin requirement, and the
Bank may withdraw any undrawn portion of such loan at any time without notice. If the
Credit Facility includes a Demand Loan  CAIS, the Borrower may borrow up to the
limit specified in respect of such loan by way of one or more drawdowns at any time and
from time to time, provided that the amount outstanding under any such loan shall never
exceed the amount of the CAIS deposit delivered to the Bank as security for such loan and
the Bank may withdraw any unutilized portion of such loan at any time without notice. If
the Credit Facility includes a Demand Instalment Loan, the Borrower may borrow up to the
limit specified in respect of such loan at any time and the Bank may withdraw any
unutilized portion thereof at any time without notice. If the Credit Facility includes a
Revolving Term Facility the Borrower may borrow, repay and reborrow up to the limit
specified in respect of such facility at any time and the Bank may withdraw any
unutilized portion thereof at any time without notice. If the Credit Facility includes a
Variable Rate Business Term Loan (including herein, a US Dollar Variable Rate Business
Term Loan), the Borrower may borrow by way of one or more drawdowns made at any time and
from time to time during the availability of such loan, and the Bank may withdraw any
undrawn portion of such loan at any time without notice. If the Credit Facility includes
a Fixed Rate Business Term Loan or a Match Funded Term Loan, the Borrower shall draw down
the amount of such loan forthwith, failing which such loan may be cancelled.
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| | If
the Credit Facility includes a Royal Business OperatingLine, an OperatingLine loan
account (an OperatingLine Account) will be opened at the Branch of Account.
The OperatingLine Account is a revolving line of credit and is available for the sole
purpose of funding transactions made through the Borrowers business current account
(including, without limitation, transactions by way of a withdrawal request, debit
request, payment of a cheque or other payment instrument) if there are insufficient funds
in the business current account to fund the transaction. Whenever the balance in the
Borrowers business current account is less than the Minimum Retained Balance, the
Bank will, once a day, debit the OperatingLine Account in an amount equal to the
revolving increment amount herein specified or a whole multiple of such amount, and the
Bank will thereafter credit the Borrowers business current account in an equivalent
amount such that the Borrowers business current account is thereafter nil or in
positive balance. The amount of each such transfer will form part of the indebtedness of
the Borrower to the Bank under the Credit Facility as of the day of the transfer. Unless
otherwise agreed by the Bank in writing, no interest will be payable at any time on a
credit balance in the OperatingLine Account. If a transfer of funds from the
OperatingLine Account to the Borrowers business current account to fund a
transaction (including, without limitation, a transaction by way of a withdrawal request,
a debit request, a payment of a cheque or other payment instrument), will exceed or cause
the indebtedness of the Borrower to the Bank under the Royal Business OperatingLine to
exceed the maximum amount available under the Royal Business OperatingLine, then the Bank
may decline the transaction and return the cheque or other payment instrument unpaid.
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| | If
the Credit Facility includes a Royal Business Overdraft Protection facility, in no event
will such facility be available in connection with any business account of the Borrower
for or in connection with which the Borrower has a Royal Business OperatingLine Facility.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. |  | REPAYMENT
|-- |  | ---------

| | Amounts
outstanding under the Credit Facility, together with interest, shall become due in the
manner and at the rates and times specified herein and shall be paid in the currency of
the particular credit extended. If the Credit Facility includes a Variable Rate Business
Term Loan or a Fixed Rate Business Term Loan, including any such type of loan under a
Revolving Term Facility, or a Match Funded Term Loan, repayable by way of periodic
payments of principal plus interest, the Borrower shall make consecutive periodic
payments of principal with the entire balance of such loan due and payable at the end of
the term specified herein. In the case of a Demand Instalment Loan, the Borrower shall
make such consecutive periodic payments of principal as are specified with the entire
balance of such loan repayable as provided below. In the case of any type of loan that is
repayable by blended payments, each payment shall be applied, firstly, to interest due,
and the balance, if any, shall be applied to principal outstanding. If any such payment
is insufficient to pay all interest then due, the unpaid balance of such interest will be
added to such loan, will bear interest at the same rate, and will be payable on demand or
at the end of the term specified herein, as the case may be. If the Credit Facility
includes a Demand Operating Loan, a Royal Business OperatingLine, Royal Business
Overdraft Protection, a Letter of Credit/Letter of Guarantee Facility, a Demand Loan -
CAIS or a Demand Instalment Loan, the Borrower shall repay all principal sums outstanding
under such loan or facility upon demand including, without limitation, an amount equal to
the face amount of all Letters of Credit and Letters of Guarantee which are unmatured or
unexpired, which amount shall be held by the Bank as security for the Borrowers
obligations to the Bank in respect of such instruments. In the case of a Royal Business
OperatingLine or a Royal Business Overdraft Protection facility, the Bank may, at its
discretion, require the Borrower to make minimum principal payments of amounts
outstanding under the Royal Business OperatingLine or Royal Business Overdraft Protection
facility, as the case may be, and the Borrower must make these minimum payments at the
times and in the way that the Bank advises from time
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| | to
time. Following demand or, in the case of term loans, the occurrence of an Event of
Default, the Bank shall have no obligation to make further loans, Letters of Credit,
Letters of Guarantee or advances available to the Borrower.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | PREPAYMENT
|-- |  | ----------

| | If
the Credit Facility includes a Variable Rate Business Term Loan, including any Variable
Rate Business Term Loan outstanding under a Revolving Term Facility, the Borrower may
prepay such loan in whole or in part in reverse order of maturity without fee or premium.
If the Credit Facility includes a Demand Instalment Loan or Demand Loan - CAIS, the
Borrower may repay such loan in whole or in part without fee or premium. Where the Credit
Facility includes a Fixed Rate Business Term Loan, including any Fixed Rate Business Term
Loan outstanding under any Revolving Term Facility, the Borrower may prepay such loan in
whole or in part subject to a prepayment fee:
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| | (a) |  | prepayment
of up to 10% of outstanding principal balance is permitted without
                    penalty once a year during the 12 month period from each anniversary
date of the                     loan; and
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | prepayments
of more than 10% of the principal amount outstanding may be made at
                    any time and from time to time in any one year, subject to the
following, (i)                     such prepayments made during the first year of the
term shall be made only upon                     payment of a fee in the amount of 6
months interest on the amount prepaid at the                     rate applicable to the
loan; and (ii) such prepayments made during the second                     and any
subsequent year of the term shall be made only upon payment of a fee in
                    the amount of 3 months interest on the amount prepaid at the rate
applicable to                     the loan.
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|4. |  | REVOLVEMENT,
ETC.
|-- |  | -----------------

| | If
the Credit Facility includes a Demand Operating Loan, the Borrower authorizes the Bank
daily or otherwise as and when determined by the Bank to ascertain the position of any
account herein specified, and
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) |  | if
such position is a credit balance, the Bank may, subject to the revolving
                    increment amount herein specified, apply the amount of such credit
balance or                     any part as a repayment of such loan, and
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | if
such position is a debit balance the Bank shall, subject to the revolving
                    increment amount herein specified, make an advance under such loan
provided that                     at no time shall such loan exceed the amount of the
loan limit herein specified.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | OperatingLine PLUS
|-- |  | ------------------

| | If
the Credit Facility includes a Royal Business OperatingLine and the OperatingLine PLUS
option is elected under this Agreement, the Bank is authorized (but not obligated)
whenever there is a credit balance in the Borrowers business current account that
exceeds the sum of the Minimum Retained Balance plus the revolving increment amount
herein specified, to apply all or part of such credit balance in an amount which is equal
to the revolving increment amount herein specified or a whole multiple of such amount, as
a repayment on account of the indebtedness of the Borrower to the Bank under the Royal
Business OperatingLine.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | EVIDENCE
OF INDEBTEDNESS (Separate promissory note not required)
|-- |  | ----------------------------------------------------------------

| | The
Bank shall maintain, at the Branch of Account, accounts and records (the Accounts)
evidencing the borrowings made available to the Borrower by the Bank under this
Agreement. The Bank shall record the principal amount of such borrowings, the payment of
principal and interest on account of the loans and advances, and all other amounts
becoming due to the Bank under this Agreement. The Accounts constitute, in the absence of
manifest error, conclusive evidence of the indebtedness of the Borrower to the Bank
pursuant to this Agreement. The Borrower authorizes and directs the Bank to automatically
debit, by mechanical, electronic or manual means, any bank account of the Borrower for
all amounts payable under this Agreement, including, but not limited to, the repayment of
principal and the payment of interest, fees and all charges for the keeping of such bank
accounts.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. |  | INTEREST
|-- |  | --------

| | Royal
Bank Prime or RBP is the annual rate of interest announced from time to
time by the Bank as a reference rate then in effect for determining interest rates on
Canadian Dollar commercial loans in Canada. Royal Bank US Base Rate or RBUSBR is
the annual rate of interest announced from time to time by the Bank as a reference rate
then in effect for determining interest rates on US Dollar commercial loans in Canada.
Where interest under the Credit Facility is based upon RBP or RBUSBR, the Borrower shall
pay to the Bank periodically as herein specified (or as the Bank may otherwise specify
from time to time) in arrears interest calculated on the daily principal balance
outstanding as evidenced by the Accounts from time to time, both before and after
maturity, default and judgment, at a variable rate per annum equal to RBP or RBUSBR plus
the rate specified herein. Where interest is expressed to be a fixed rate, the Borrower
shall pay to the Bank periodically as herein specified (or as the Bank may otherwise
specify from time to time) in arrears interest calculated on the daily principal balance
outstanding as evidenced by the Accounts from time to time, both before and after
maturity, default and judgment, at a rate per annum equal to the rate specified herein.
Each change in any variable rate under the Credit Facility will take place simultaneously
with the corresponding change in RBP or RBUSBR, as the case may be. Interest will be paid
in the currency of the loan. In each case, interest will accrue daily on the basis of the
actual number of days elapsed and a year of 365 days. The annual rates of interest to
which the rates calculated in accordance with this Agreement are equivalent, are the
rates so calculated multiplied by the actual number of days in the calendar year and
divided by 365. If it is necessary for the Bank to prove the interest rate in effect at
any time, the Borrower agrees that the Banks written certificate, setting out the
interest rate at that time, is sufficient proof for that purpose.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. |  | GENERAL
COVENANTS
|-- |  | -----------------

| | Without
affecting or limiting the right of the Bank to terminate or demand payment of, or cancel
or restrict availability of any unutilized portion of, any demand or other discretionary
facility, the Borrower covenants and agrees with the Bank that (if more than one, jointly
and severally - in Quebec, solidarily):
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) |  | it
will duly and punctually pay all sums of money due by it under the terms of
                    this Agreement;
| | --- |  | ------------------------------------------------------------------------------------------------------------------

| | (b) |  | it
will advise the Bank of any default, or in the case of term loans, any Event
                    of Default, as herein defined, as it occurs, or of any change in
ownership prior                     to such event;
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) |  | it
will file all material tax returns which are or will be required to be filed,
                    pay or make provision for payment of all material taxes (including
interest and                     penalties) and Potential Prior  Ranking Claims,
which are or will become                     due and payable and provide adequate
reserves for the payment of any tax, the                     payment of which is being
contested;
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (d) |  | if
a corporation, it will give the Bank 30 days prior notice in writing of any
                    intended change in the ownership of its shares;
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) |  | it
will comply with all laws, regulations, official directions and
                    authorizations applicable to the Borrower and the Borrowers
business or                     property including, without limitation, all applicable
environmental laws and                     regulations; advise the Bank promptly of any
action requests or violation                     notices received concerning any of the
Borrowers property; and hold the                     Bank harmless from and against
any losses, costs or expenses which the Bank may                     suffer or incur for
any environment-related liabilities existent now or in the                     future
with respect to the Borrowers property;
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) |  | it
will deliver to the Bank such financial and other information as the Bank may
                    reasonably request from time to time, including, but not limited to,
the reports                     and other information set out under Reporting
Requirements; and
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) |  | it
will immediately advise the Bank of any unfavourable change in its financial
                    position which may adversely affect its ability to pay or perform its
                    obligations in accordance with the terms of this Agreement.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. |  | MARGIN
REQUIREMENTS
|-- |  | -------------------

| | Where
the Credit Facility includes a Demand Operating Loan, a Royal Business OperatingLine or a
Letter of Credit/Letter of Guarantee Facility, and a margin requirement is indicated, the
Borrower is to provide by the 20th day of the month following each month end
(or such other time as the Bank may agree): a Monthly Statement of Borrowing Limit,
including therein, without limitation, a list of aged Accounts Receivable, Inventory,
30-day supplier payables, purchase money security interests and Potential Prior-Ranking
Claims.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Potential
Prior-Ranking Claims means all amounts owing or required to be paid, where the
failure to pay any such amount could give rise to a claim pursuant to any law, statute,
regulation or otherwise which ranks in priority to the Security (as defined below) or
otherwise in priority to any claim by the Bank for repayment of any amounts owing under
this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. |  | EVENTS
OF DEFAULT
|--- |  | -----------------

| | Without
affecting or limiting the right of the Bank to terminate or demand payment of, or to
cancel or restrict availability of any unutilized portion of, any demand or other
discretionary facility, each of the following shall constitute an Event of Default which
shall entitle the Bank, in its sole discretion, to cancel any commitment, demand
immediate repayment in full of any amounts outstanding under any term loan under the
Credit Facility, together with outstanding accrued interest and any other indebtedness
under or with respect to any term loan under the Credit Facility which indebtedness shall
include, without limitation, an amount that is equal to the amount that would be payable
by the Borrower under Prepayment above in the event of a voluntary prepayment of a Fixed
Rate Business Term Loan, and to realize on all or any portion of any security given to
secure the obligations of the Borrower hereunder (the Security):
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) |  | failure
of the Borrower to pay any principal, interest or other amount when due
                    pursuant to this Agreement;
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | failure
of the Borrower to observe any covenant, condition or provision
                    contained in this Agreement or in any documentation relating hereto
or to the                     Security;
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) |  | if
the Borrower becomes insolvent or commits an act of bankruptcy or makes an
                    assignment in bankruptcy or bulk sale of its assets;
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) |  | if
any proceeding is taken to effect a compromise or arrangement with the
                    creditors of the Borrower, or to have the Borrower declared bankrupt
or wound                     up, or to have a receiver appointed for any part of the
mortgaged property or if                     any encumbrancer takes possession of any
part thereof;
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) |  | if
in the opinion of the Bank there is a material adverse change in the
                    financial condition, ownership or operation of the Borrower;
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) |  | if
any representation or warranty made by the Borrower under this Agreement or
                    relating hereto or to the Security shall be false in any material
respect; or
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) |  | if
the Borrower defaults in the payment of any other indebtedness, whether owing
                    to the Bank or to any other person, or defaults in the performance or
observance                     of any agreement in respect of such indebtedness where, as
a result of such                     default, the maturity of such indebtedness is or may
be accelerated.
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. |  | EXPENSES,
ETC.
|--- |  | --------------

| | The
Borrower agrees to pay the Bank all fees, as stipulated in this Agreement. The Borrower
also agrees to pay all expenses and legal costs, (on the basis of a solicitor and its own
client, or where applicable including extra-judicial costs) incurred by the Bank in
connection with this Agreement and any Security and the enforcement of the Banks
rights against the Borrower or under any Security. These costs and expenses may include
(but are not limited to) costs of amendments, appraisals, inspections, environmental
reviews, registrations, searches, discharges and actions taken in connection with the
preservation of the Banks rights under this Agreement or under the Security.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Borrower shall indemnify and hold the Bank harmless against any loss, cost or expense
incurred by the Bank if any Match Funded Term Loan is repaid or prepaid other than on its
maturity date. The determination by the Bank of such loss, cost or expense shall be
conclusive and binding for all purposes and shall include, without limitation, any loss
incurred by the Bank in liquidating or redeploying deposits acquired to make or maintain
any Match Funded Term Loan.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. |  | WAIVER
|--- |  | ------

| | No
express or implied waiver by the Bank of any provision of this Agreement in one instance
shall in any way be, or construed to be, a waiver as to any other instance.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. |  | ASSIGNMENT
|--- |  | ----------

| | This
Agreement shall extend to and be binding upon the parties hereto and their respective
heirs, executors, administrators, successors and assigns provided that the Borrower shall
not be entitled to assign any interest hereunder, without the consent in writing of the
Bank.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|14. |  | REVIEW
|--- |  | ------

| | The
Bank may conduct annual or periodic reviews of the affairs of the Borrower, as determined
by the Bank and timely advised to the Borrower, for the purpose of determining the
financial performance of the Borrower, and the Borrower shall make available to the Bank
such information as the Bank may reasonably require and shall do all things reasonably
necessary to facilitate such review by the Bank.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15. |  | GAAP
|--- |  | ----

| | Unless
otherwise provided, all accounting terms used in this Agreement shall be interpreted in
accordance with Canadian Generally Accepted Accounting Principles from time to time. Any
change in Accounting Principles or the application of Accounting Principles, including,
without limitation, the use of Differential Reporting (or any changes to the selection of
Differential Reporting options) is only permitted with the prior written consent of the
Bank.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16. |  | SEVERABILITY
|--- |  | ------------

| | The
invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement and such invalid
provision shall be deemed to be severable.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17. |  | GOVERNING
LAW
|--- |  | -------------

| | This
Agreement shall be construed in accordance with and governed by the laws of the Province
where the Borrower resides and the laws applicable therein. The Borrower irrevocably
submits to the non-exclusive jurisdiction of the courts of such Province and acknowledges
the competence of such courts and irrevocably agrees to be bound by a judgment of any
such court.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. |  | SET-OFF
|--- |  | -------

| | The
Bank is authorized (but not obligated), at any time and without notice, to apply any
credit balance (whether or not then due) to which the Borrower is then beneficially
entitled on any account (in any currency) at any branch or agency of the Bank in or
towards satisfaction of the indebtedness of the Borrower to the Bank under the Credit
Facility and the other obligations of the Borrower under this Agreement. For that
purpose, the Bank is irrevocably authorized to use all or any part of any such credit
balance to buy such other currencies as may be necessary to effect such application.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. |  | HOLD
ON FUNDS
|--- |  | -------------

| | The
Bank has the right to hold any cheque, instrument or other payment item used to make a
payment under this Agreement, and to defer any transfer until the Bank receives payment
for such cheque, instrument or other payment item.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20. |  | NOTICES
|--- |  | -------

| | Any
notice or demand to be given by the Bank shall be given in writing by way of a letter
addressed to the Borrower. If the letter is sent by telecopier, it shall be deemed
received on the date of transmission, provided such transmission is received prior to
5:00 p.m. on a day on which the Borrowers business is open for normal business, and
otherwise on the next such day. If the letter is sent by ordinary mail to the address of
the Borrower, it shall be deemed received on the date falling five (5) days following the
date of the letter, unless the letter is hand-delivered to the Borrower, in which case
the letter shall be deemed to be received on the date of delivery. The Borrower must
advise the Bank at once about any changes in the Borrowers address.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21. |  | CONSENT
OF DISCLOSURE
|--- |  | ---------------------

| | The
Borrower hereby grants permission to any entity having information in such entitys
possession relating to any Potential Prior-Ranking Claim, to release such information to
the Bank (upon its written request), solely for the purpose of assisting the Bank to
evaluate the financial condition of the Borrower.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22. |  | WHOLE
AGREEMENT
|--- |  | ---------------

| | This
Agreement and any documents or instruments referred to in, or delivered pursuant to, or
in connection with, this Agreement constitute the whole and entire agreement between the
Borrower and the Bank with respect to the Credit Facility.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

# Definitions

Capital
Expenditures means, for any fiscal period, any amounts accrued or paid in
respect of any purchase or other acquisition for value of capital assets and, for greater
certainty, excludes amounts expended in respect of the normal repair and maintenance of
capital assets utilized in the ordinary course of business;

Corporate
Distributions means any payments to any shareholder, director or officer of the
Borrower, or to any associate [or holder of Postponed Debt] of the Borrower, or to any
shareholder, director or officer of any associate [or holder of Postponed Debt] of the
Borrower, including, without limitation, bonuses, dividends, salaries or repayment of debt
or making of loans to any such Person, but excluding salaries to officers or other
employees in the ordinary course of business.

Current Assets
means, at any time, those assets ordinarily realizable within one year from the date of
determination or within the normal operating cycle, where such cycle is longer than a
year;

Current
Liabilities means, at any time, amounts payable within one year from the date of
determination or within the normal operating cycle, where such cycle is longer that a year
(the operating cycle must correspond with that used for current assets);

Current Ratio means the ratio of
Current Assets to Current Liabilities;

Debt Service Coverage Ratio
means, for any fiscal period, the ratio of the aggregate of EBITDA, minus dividends,
minus any decrease in shareholder loans payable, to the aggregate of Interest
Expense and scheduled principal payments in
respect of Funded Debt;

EBITDA means, for
any fiscal period, net income from continuing operations (excluding extraordinary gains or
losses) plus, to the extent deducted in determining net income, Interest Expense and
income taxes accrued during, and depreciation, depletion and amortization expenses
deducted for, the period;

Equitymeans the
total of share capital, (excluding preferred shares redeemable within one year)
contributed surplus and retained earnings [plus Postponed Debt];

Financial
Assistance means any form of direct or indirect financial assistance of any
other Person by means of a loan, guarantee or otherwise or any obligations (contingent or
otherwise) intended to enable another Person to incur or pay any debt or comply with any
agreements related thereto or to otherwise assure or protect creditors of another Person
against loss in respect of debt or any other obligations of such other Person;

Funded Debt means,
at any time, all obligations for borrowed money which bears interest or to which interest
is imputed plus, without duplication, all obligations for the deferred payment of the
purchase of property, all capital lease obligations and all indebtedness secured by
purchase money security interests, [plus the amount of any guarantees or other financial
assistance provided in respect of liabilities of a third party], [but excluding Postponed
Debt];

Interest Expense
means, for any fiscal period, the aggregate cost of advances of credit outstanding during
that period including, without limitation, interest charges, capitalized interest, the
interest component of capital leases, fees payable in respect of letters of credit and
letters of guarantee and discounts incurred and fees payable in respect of bankers
acceptances;

Investment means
the acquisition (whether for cash, property, services, securities or otherwise) of shares,
bonds, notes, debentures, partnership or other property interests or other securities of
any other Person or any agreement to make any such acquisition;

Postponed Debt
means indebtedness that is fully postponed and subordinated, both as to principal and
interest, on terms satisfactory to the Bank, to the obligations owing to the Bank
hereunder;

Tangible Net Worth
means the total of Equity [plus Postponed Debt] less intangibles, [deferred charges and
leasehold improvements] deferred tax debits and unsecured advances to related parties. For
the purpose hereof, intangibles are assets lacking physical substance;

Total Liabilities
means all liabilities, exclusive of deferred tax liabilities [and Postponed Debt];

Working Capital
means Current Assets less Current Liabilities.