**SETTLEMENT        AGREEMENT RE TRUST SHARES**

| BETWEEN: |                                                              |                               |
|----------|-------------------------------------------------------------------|------------------------------------|
|     | BARRY                  LaROSE, Businessman,                       |                               |
|     | of                  21068, 16th                  Avenue, Langley, |                               |
|     | British                  Columbia, Canada, V3Z 1K3                |                               |
|     |                                                              |                               |
|     | (“Barry”)                                             |                               |
|     |                                                              |                               |
|     |                                                              | OF                  THE FIRST PART |

| AND:   |                                                   |                                |
|--------|--------------------------------------------------------|-------------------------------------|
|   | JAY                  SARGEANT, Businessman,            |                                |
|   | of                  3324 Military Avenue, Los Angeles, |                                |
|   | California,                  USA, 90034                |                                |
|   |                                                   |                                |
|   | (“Jay”)                                    |                                |
|   |                                                   |                                |
|   |                                                   | OF                  THE SECOND PART |

| AND:   |                                              |                                |
|--------|---------------------------------------------------|-------------------------------------|
|   | EYI                  INDUSTRIES INC.,             |                                |
|   | of                  7865 Edmonds Street, Burnaby, |                                |
|   | B.C.,                  Canada V3N 1B9             |                                |
|   |                                              |                                |
|   | (“EYII”)                              |                                |
|   |                                              |                                |
|   |                                              | OF                  THE SECOND PART |

|   | A. | Jay                  has acquired the option to purchase certain restricted-for-trading                  shares                  “Trust Shares” in EYI Industries, Inc. (“EYII”), a publicly traded                  corporation on the OTC Bulletin Board, pursuant to a Settlement                  Agreement                  made between them in writing on the 5th                  day of October, 2005 “Settlement                  Agreement”; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | Jay                  has acquired those Trust Shares corresponding to the first six                  payments                  under the Settlement Agreement and has thereby acquired 1,576,218                  of the                  Trust Shares (“Acquired Trust Shares”), but has defaulted in respect of                  the Seventh Payment; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | C. | Pursuant                  to the Escrow Agreement entered into by the parties and by M. Ali                  Lakhani                  (as Escrow Holder), the Escrow Holder has endorsed for transfer                  to Barry                  the reverse of EYII Share Certificate 5340-5, for a total of 4,334,604                  of                  the Trust Shares (“March Trust Shares”), and has delivered the said Share                  Certificate to Barry; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | Pursuant                  to the Escrow Agreement entered into by Jay, Barry, and by M. Ali                  Lakhani                  (as Escrow Holder), the Escrow Holder presently holds the following                  share                  certificates issued by EYII: |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | EYII                  Certificate 5341-3, for a total of 5,910,826 of the Trust Shares,                  presently held as security for the Eighth                  Payment; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | EYII                  Certificate 5342-1, for a total of 5,910,826 of the Trust Shares,                  presently held as security for the Ninth Payment;                  and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | EYII                  Certificate 5343-9, for a total of 5,910,828 of the Trust Shares,                  presently held as security for the Tenth                  Payment; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | E. | In                  order, *inter                  alia*,                  to facilitate the settlement of the “Suhl Action” (as defined in the                  Settlement Agreement, Jay and Barry have agreed to amend the Settlement                  Agreement and Escrow Agreement as set out herein, and EYII has                  agreed to                  provide certain assurances to Barry, as set out                  herein; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Subject                  to the terms of this Agreement, the Settlement Agreement and Trust                  Agreement are hereby cancelled. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Barry                  hereby relinquishes to Jay or his nominee, and acknowledges that                  Barry has                  no, right, title or interest in the Acquired Trust Shares and the                  Remaining Trust Shares. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Jay                  hereby relinquishes to Barry, and acknowledges that Jay has no,                  right,                  title or interest in the March Trust                  Shares. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | EYII                  will use its best efforts to reissue a Share Certificate in the                  name of                  Barry in respect of the March Shares, and will provide to the transfer                  agent a corporate waiver and indemnity in lieu of a Medallion Guarantee                  for the verification of the transferor, M. Ali Lakhani’s signature on                  Share Certificate 5340-5. EYII will also use its best efforts,                  after March                  15, 2007, to remove the Rule 144 restrictive legend in respect                  of the                  March Trust Shares. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 5. | Barry                  and Jay acknowledge to each other and to EYII that they have each                  obtained                  independent legal advice with respect to their execution of this                  Agreement. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | Any                  provision hereof which is prohibited or unenforceable shall be                  ineffective                  and severable to the extent of such prohibition or unenforceability                  without invalidating the remaining provisions                  hereof. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | This                  Settlement Agreement may be executed by facsimile and may be executed                  in                  one or more counterparts, each of which shall be deemed to be an                  original                  and all of which taken together shall be deemed to constitute one                  and the                  same agreement. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                               |   |   |   |
|--------|------------------------------------|--------|--------|--------|
|   | /s/                  Barry LaRoase |   |   |        |
|   | BARRY                  LaROSE      |   |   |        |
|   |                                    |   |   |        |

|   |                                  |   |   |   |
|--------|---------------------------------------|--------|--------|--------|
|   | /s/                      Jay Sargeant |   |   |        |
|   | JAY                      SARGEANT     |   |   |        |
|   |                                       |   |   |        |

|   |                                                  |   |   |   |
|--------|-------------------------------------------------------|--------|--------|--------|
|   | /s/                          Jay Sargeant             |   |   |        |
|   | (Authorized                          Signing Officer) |   |   |        |
|   |                                                       |   |   |        |

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