**EXHIBIT      10.14**

**AGREEMENT**

**among**

**ASTRIS      ENERGI INC.**

**AND**

**MACNOR      CORPORATION**

**AND**

**2062540      ONTARIO INC.**

**JANUARY      20**
**,      **
**2005**

----

**ASTRIS      ENERGI INC., **
** **
**MACNOR      CORPORATION**
** **
**2062540      Ontario Inc**
**.,      **

| 1. | **Definitions** |
|----|-----------------|

**“AEI      Shares”**

**“AEI      Technology”**

**“AEI      Warrants”**

**“Applicable      Law” **

**“Authorizations”**

**“Business      Day”.**

**“Claims”**

**“Closing”**

**“Date      of Closing”**

----

**“Counsel”**
~~.~~

**“CVS”      **

**“Escrow      Agreement”**

**“Fairness      Opinion”**

**“GAAP”**

**“Governmental      Authority”**

**“Interim      Period” **

**“Misrepresentation”**

**“MOU”**

**“Person”**

**“Shareholder      Approval”**

**“SRO”**

**“SRO      Business”**

**“SRO      Financial Statements”**

**“Tax”**

----

**“Transaction”**

**“Purchased      Shares” **

**“Valuation      Report”**

| 2. | **Purpose** |
|----|-------------|

| 3. | **Sale                and Purchase** |
|----|--------------------------------------|

| 4. | **Macnor                  Representations and                  Warranties** |
|----|-----------------------------------------------------------------------------|

|  | (a) | Macnor,                      Holdco and SRO are each validly subsisting corporations under                      the laws of                      their respective jurisdictions of incorporation and SRO is                      duly registered                      to carry on business in each jurisdiction where the failure                      to be so                      registered could reasonably be expected to have a material                      adverse effect                      on its business, properties or condition (financial or                      otherwise); |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | Macnor,                      Holdco and SRO each has all requisite power and authority to                      conduct its                      business as is presently being conducted and to execute, deliver                      and                      perform this Agreement and any documents to which it is or                      is to be a                      party; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | the                      execution, delivery and performance by Macnor and Holdco of                      this Agreement                      have been duly authorized by all necessary corporate action                      and will                      require approval at a meeting of shareholders of SRO and subsequent                      registration by the Court of Commerce in Czech                      Republic; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | this                      Agreement has been duly executed and delivered by Macnor and                      Holdco and                      constitutes their legal, valid and binding obligation, enforceable                      against                      them in accordance with its terms, except as such enforceability                      may be                      affected by bankruptcy, insolvency, arrangement, moratorium                      or other laws                      affecting the enforcement of creditors' rights generally and                      the fact that                      the availability of equitable remedies may be limited by equitable                      principles of general                      application; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | subject                      to clause (c), the execution and delivery by both parties of                      this                      Agreement and the performance by them of their obligations                      hereunder do                      not require any authorization under any Applicable Law or approvals,                      consents or waivers of third parties and are not inconsistent                      with and do                      not contravene any provision of or constitute a default under                      (i) their                      constating documents or by-laws, as applicable; (ii) any judgement,                      injunction, decree or order applicable to them or any of their                      properties;                      (iii) any Applicable Law or authorization applicable to it                      or any of its                      properties; or (iv) any indenture, mortgage, contract or other                      instrument                      to which they are a party or by which their or their property                      may be bound                      or affected; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | to                      the best of its knowledge there                      is no action, suit, investigation or proceeding pending (or,                      to their                      knowledge, threatened) against SRO before any Governmental                      Authority                      which, individually or in the aggregate, if determined adversely                      to its                      interests, could reasonably be expected to adversely affect                      the                      consummation of the transactions contemplated hereby to which                      it is a                      party or the performance by it of its obligations hereunder                      or thereunder,                      nor is it in default with respect to any order of any Governmental                      Authority which default could reasonably be expected to adversely                      affect                      the consummation of the transactions contemplated hereby to                      which it is a                      party or the performance by it of its obligations hereunder                      or                      thereunder; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | to                      the best of its knowledge the description of the SRO Business                      and all                      other information with respect to SRO contained in the Valuation                      Report,                      taken together with the SRO Financial Statements, constitutes                      full, true                      and plain disclosure of all material facts relating to the                      SRO Business                      and SRO and does not contain any material Misrepresentation                      with respect                      to the SRO Business or SRO; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (h) | Macnor                      is the registered owner of the Purchased Shares and will transfer                      and                      convey good and marketable title to the Purchased Shares to                      AEI at the                      Time of Closing free and clear of any liens, charges, security                      interests                      or other adverse claims or encumbrances of any nature                      whatsoever; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (i) | no                      Person has any agreement or option or any right or privilege                      capable of                      becoming an agreement or option for the purchase of the Purchased                      Shares                      or to the best of its knowledge for the purchase, subscription                      or issuance                      of any securities of SRO; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (j) | the                      SRO Financial Statements as of June 30, 2004 provided to prepare                      the                      Valuation Report have not been amended prior to the date                      hereof; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (k) | other                      than capital expenditures subsequent to September                      30, 2004,                      to its knowledge: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | there                      has not been any material change (financial or otherwise) in                      the business,                      affairs, operations, assets, liabilities (contingent or otherwise),                      capital or prospects of SRO;                      and |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | SRO                      has carried on, and will continue to carry on the SRO Business                      in the                      ordinary course; |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (l) | to                      the best of its knowledge SRO has no material liabilities,                      contingent or                      otherwise other than as disclosed in the SRO Financial Statements                      as at                      September 30, 2004 or as otherwise disclosed in writing to                      AEI; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (m) | to                      the best of its knowledge there is no action, suit, investigation                      or                      proceeding pending (or, to their knowledge, threatened) against                      SRO before                      any Governmental Authority which, individually or in the aggregate,                      if                      determined adversely to the interest of SRO, could reasonably                      be expected                      to adversely affect the condition, financial or otherwise,                      of the SRO                      Business or the financial results or condition of SRO;                      and |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (n) | Macnor                      is not a non-resident of Canada for the purposes of the *Income                      Tax Act Canada*                      and regulations made                      thereunder. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (o) | At                      the Closing Time, Holdco will have no assets except the Purchased                      Shares                      and will have no liabilities. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | **AEI                      Representations and                      Warranties** |
|----|----------------------------------------------------------------------------------|

|  | (a) | AEI                      is a validly subsisting corporation under the laws of its jurisdiction                      of                      incorporation and is duly registered to carry on business in                      each                      jurisdiction where the failure to be so registered could reasonably                      be                      expected to have a material adverse effect on its business,                      properties or                      condition (financial or                      otherwise); |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | AEI                      has all requisite power and authority to conduct its business                      as is                      presently being conducted and to execute, deliver and perform                      this                      Agreement and any documents to which it is or is to be a party; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | the                      execution, delivery and performance by AEI of this Agreement                      have been                      duly authorized by all necessary corporate action, and do not                      require any                      consents or approvals other than those which have already been                      obtained or                      as disclosed in this                      Agreement; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | this                      Agreement has been duly executed and delivered by AEI and constitutes                      its                      legal, valid and binding obligation, enforceable against it                      in accordance                      with its terms, except as such enforceability may be affected                      by                      bankruptcy, insolvency, arrangement, moratorium or other laws                      affecting                      the enforcement of creditors' rights generally and the fact                      that the                      availability of equitable remedies may be limited by equitable                      principles                      of general application; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | the                      execution and delivery by it of this Agreement and the performance                      by it                      of its obligations hereunder do not require any authorization                      under any                      Applicable Law or approvals, consents or waivers of third parties                      and are                      not inconsistent with and do not contravene any provision of                      or constitute                      a default under (i) its constating documents or by-laws, as                      applicable;                      (ii) any judgement, injunction, decree or order applicable                      to it or any of                      its properties; (iii) any Applicable Law or authorization applicable                      to it                      or any of its properties; or (iv) any indenture, mortgage,                      contract or                      other instrument to which either of them is a party or by which                      they or                      their property may be bound or affected;                      and |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | the                      AEI Shares and the AEI Warrants will, at their date of issue,                      be validly                      issued securities of AEI. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | **Survival** |
|----|--------------|

| 7. | **Further                      Assurances** |
|----|---------------------------------------------|

----

| 8. | **Indemnity                      and Escrow Agreement** |
|----|---------------------------------------------------------|

|  | (a) | A                      claim for damages by AEI under this Section 8 must be delivered                      to Macnor                      and proven to the satisfaction of Macnor, acting                      reasonably; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | In                      the event a claim is properly made by AEI under this Section                      8, then the                      amount of the claim shall be paid to AEI by the release of                      the equivalent                      amount of the 2,500,000 AEI Shares (the "**Escrowed                      Shares**")                      deposited into escrow under the terms of the Escrow Agreement                      attached                      hereto as Schedule "B". The number of Escrowed Shares required                      to pay such                      claim to AEI shall be                      in                      an amount equal to the damages                      based on the 5-day average closing AEI share price at the time                      of the                      claim being made; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | In                      no event may the amount paid by Macnor in satisfaction of any                      amounts                      owing to AEI under this Section 8 exceed the Escrowed                      Shares; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | No                      claim may be made by AEI under this Section 8 unless such claim                      has been                      received by Macnor prior to January 2, 2006 (the "**Escrow                      Termination**").                      Any claim received after the Escrow Termination will be null                      and void and                      of no further force or effect; and |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | All                      Escrowed Shares remaining on the Escrow Termination shall be                      released to                      Macnor, and the indemnity provided under this Section 8 will                      thereafter                      terminate. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | A                      claim for damages by Macnor under this Section 8 must be delivered                      to AEI                      and proven to the satisfaction of AEI, acting                      reasonably; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | In                      the event a claim is properly made by Macnor under this Section                      8, then                      the amount of the claim shall be paid to Macnor in AEI shares                      to be issued                      from treasury, with the amount of AEI Shares issued to Macnor                      to be of                      equivalent value to the claim, calculated based on the 5-day                      average                      closing AEI share price at the time of the claim being                      made; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | In                      no event may the amount paid by AEI in satisfaction of any                      amounts owing                      to Macnor under this Section 8 exceed 2,500,000 AEI shares;                      and |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | No                      claim may be made by Macnor under this Section 8 unless such                      claim has                      been received by AEI prior to January 2, 2006. Any claim received                      after                      January 2, 2006 will be null and void and of no further force                      or                      effect. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9. | **Conditions                      Precedent** |
|----|-----------------------------------------------|

|  | (a) | **Conditions                      Precedent - AEI** |
|--|-----|-----------------------------------------------------|

|  | (i) | there                      shall have been obtained, from all appropriate governmental                      or                      administrative bodies, such licences, permits, consents, approvals,                      certificates, registrations and authorizations as are required                      to be                      obtained by the Vendor to permit the consummation of the Transaction                      and                      the consummation of the Transaction shall not violate or contravene                      any                      injunction, decree or order of any Governmental                      Authority; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | Macnor                      shall have given or obtained all required notices, consents                      and approvals                      required to be obtained from or given to any third parties                      in order to                      consummate the Transaction;                      and |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | all                      representations and warranties of Macnor contained herein shall                      be                      accurate in all material respects as at the Time of Closing                      and AEI shall                      have received a certificate of Macnor to that effect signed                      by                      Macnor. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | **Conditions                      Precedent - Macnor** |
|--|-----|--------------------------------------------------------|

|  | (i) | there                      shall have been obtained, from all appropriate governmental                      or                      administrative bodies, such licences, permits, consents, approvals,                      certificates, registrations and authorizations as are required                      to be                      obtained by AEI to permit the consummation of the Transaction                      and the                      consummation of the Transaction shall not violate or contravene                      any                      injunction, decree or order of any Governmental                      Authority; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | the                      Purchaser shall have given or obtained all required notices,                      consents and                      approvals required to be obtained from or given to any third                      parties in                      order to consummate the Transaction; |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | all                      representations and warranties of AEI contained herein shall                      be accurate                      in all material respects as at the Time of Closing and Macnor                      shall have                      received a certificate of AEI to that effect signed on behalf                      of AEI by an                      officer thereof; and |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | any                      regulatory or stock exchange approval for listing of the AEI                      Shares or the                      common shares of AEI underlying the AEI                      Warrants. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10. | **Closing** |
|-----|-------------|

|  | (a) | Macnor                      shall table for delivery to AEI assignments whereby good and                      marketable                      title to the Purchased Shares free of encumbrance shall be                      transferred to                      AEI, subject to approval and execution of the transaction by                      the                      shareholders meeting of SRO and participation of AEI in it                      as outlined in                      4 (c); |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Macnor                    shall                    table for delivery to AEI a certificate attesting to the continued                    truth                    and validity of their representations and warranties contained                    in this                    Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Macnor                    shall table for delivery to AEI a release of all claims against                    SRO; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (d) | Macnor                    shall                    undertake to provide any                    required approvals or consents of the government of the Czech                    Republic to                    the completion of the Transaction if                    any; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | AEI                    shall table for delivery to Macnor certificates representing                    the AEI                    Shares and the AEI Warrants; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | AEI                    shall table evidence                    that Shareholder                    Approval                    is                    still in effect,                    and that the Fairness Opinion is still in force unamended; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | AEI                    shall table for delivery to Macnor a certificate attesting to                    the                    continued truth and validity of their representations and warranties                    contained in this Agreement; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | there                    shall be tabled an opinion of Czech counsel on such matters related                    to SRO                    and the Transaction as AEI may reasonably                    request; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Macnor                    shall deliver the Escrow Agreement, along with the 2,500,000                    AEI Shares to                    be deposited thereunder, duly endorsed in blank for transfer;                    and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | there                    shall be tabled, executed and delivered such other documents                    as may be                    appropriate or necessary for the completion of the                    Transaction. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11. | **Termination** |
|-----|-----------------|

|  | (a) | at                      any time by agreement between the                      parties; |
|--|-----|-----------------------------------------------------------------------------------------|

|  | (b) | by                      AEI in the event of (i) bankruptcy, insolvency or similar event                      affecting                      Macnor, or (ii) Macnor being in breach of any of its obligations                      which is                      not remedied within five days of notice of such default or                      which is not                      capable of being remedied; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | by                      Macnor and Holdco in the event of (i) bankruptcy, insolvency                      or similar                      event affecting AEI, or (ii) AEI being in breach of any of                      its obligations                      which is not remedied within five days of notice of such default                      or which                      is not capable of being                      remedied. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | **General                      and Miscellaneous** |
|-----|----------------------------------------------------|

|  | (a) | Any                      notice or other communication required or permitted to be given                      hereunder                      shall be in writing and shall be effectively given if personally                      delivered                      or sent by telecopy transmission to the relevant party at the                      following                      address: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | if                        to AEI: |
|--|-----|-----------------------------------|

|  | (ii) | if                      to Macnor: |
|--|------|------------------------------------|

|  | (iii) | if                      to Holdco: |
|--|-------|------------------------------------|

----

|  | (iv) | or                      to such other address or in care of such other Persons as a                      party may from                      time to time advise to each other party hereto by notice in                      writing. The                      date of receipt of any such notice of communication if delivered                      or sent                      by facsimile during normal business hours on a Business Day                      at the place                      of receipt shall be deemed to be the date of delivery thereof,                      or if                      delivered or sent by telecopy after normal business hours on                      a Business                      Day or on a day other than a Business Day, the date of receipt                      shall be                      deemed to be the next Business                      Day. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | **Waiver                      -**No                      failure on the part of any party in exercising any right or                      remedy                      hereunder shall operate as a waiver thereof, nor shall any                      single or                      partial exercise of any such right or remedy preclude any further                      or other                      exercise thereof, and no failure on the part of a party to                      complain of any                      act or failure to act of another party or to declare another                      party in                      default, irrespective of how long such failure continues, shall                      constitute                      a waiver by such first mentioned party of its rights hereunder.                      No waiver                      of any provision of this Agreement, including this Section,                      shall be                      effective otherwise than by an instrument in writing dated                      subsequent to                      the date hereof executed by the party entitled to give such                      waiver or its                      duly authorized representatives. No consent or waiver, expressed                      or                      implied, by a party to or of any breach of default by another                      party in the                      performance of such other party of its obligations hereunder                      shall be                      deemed or construed to be a consent or waiver to or of any                      other breach or                      default in the performance by such other party of the same                      or any other                      obligations of such other party                      hereunder. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | **Amendments**                      -                      No variation or amendment of any provision of this Agreement,                      including                      this Section, shall be effective otherwise than by an instrument                      in                      writing dated subsequent to the date hereof executed by all                      parties                      hereto, or their duly authorized representatives. Notwithstanding                      anything                      to the contrary herein. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | **Successors                      and Assigns -**All                      of the terms and provisions of this Agreement shall be binding                      upon the                      parties and their respective successors and shall enure to                      the benefit of                      and be enforceable by the parties and their respective successors,                      provided that none of the parties may assign any of their respective                      rights hereunder without the consent of the other                      parties. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | **Rights                      and Parties Independent**                      -                      The rights available to the parties under this Agreement and                      at law shall                      be deemed to be several and not dependent on each other and                      each such                      right accordingly shall be construed as complete in itself                      and not by                      reference to any other such right. Any one or more and/or any                      combination                      of such rights may be exercised by a party from time to time                      and no such                      exercise shall exhaust the rights or preclude another party                      from                      exercising any one or more of such rights or combination thereof                      from time                      to time thereafter or                      simultaneously. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | **Currency                      -**All                      amounts herein are expressed in Canadian                      currency. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | **Time                      of Essence -**Time                      is of the essence of this                      Agreement. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------|

----

|  | (h) | **Governing                      Law -**This                      Agreement shall in all respects be governed by and construed                      in accordance                      with the laws in force in the Province of Ontario and the laws                      of Canada                      in force in the Province of Ontario. There shall be no application                      of any                      conflict of laws or rules which would result in the laws of                      any other                      jurisdiction applying to this Agreement or the construction                      or                      interpretation hereof. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | **Attornment                      -**The                      parties hereto hereby: |
|--|-----|--------------------------------------------------------------------------------------|

|  | (i) | irrevocably                      submit and attorn to the non-exclusive jurisdiction of the                      Courts of the                      Province of Ontario for all actions, suits or proceedings arising                      out of                      or in connection with this Agreement or the transactions contemplated                      hereby; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | waive                      all right to object to jurisdiction in any action, suit or                      proceeding                      relative to this Agreement which they may now or hereafter                      have by reason                      of domicile or otherwise; |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | waive                      any objection to the laying of venue in such Courts of any                      such action,                      suit or proceeding; |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | waive                      and agree not to plead or claim that any such action, suit                      or proceeding                      has been brought in an inconvenient forum;                      and |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | waive                      any right they may have to, or to apply for, trial by jury                      in connection                      with any matter arising out of or in connection with this Agreement                      or the                      transactions contemplated                      hereby. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (j) | **Severability                      -**If                      any provision of this Agreement or portion thereof, or the                      application                      thereof to any Person or circumstances shall, to any extent,                      be invalid or                      unenforceable in any jurisdiction, the remainder of this Agreement                      or the                      application of such provision or portion thereof to any other                      Person or                      circumstances or in any other jurisdiction shall not be affected                      thereby                      and each provision of this Agreement shall be valid and enforceable                      to the                      fullest extent permitted by                      law. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (k) | **Third                      Party Rights -**This                      Agreement is not intended to and does not create any rights                      in favour of                      any Person other than the parties hereto who hold such rights                      for their                      own behalf and they have not indicated and will not indicate                      to the                      contrary to any Person. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (l) | **Counterparts                      and Formal Date -**This                      Agreement may be executed in several counterparts, each of                      which when so                      executed shall be deemed to be an original and such counterparts                      together                      shall constitute one and the same instrument and, notwithstanding                      the date                      of execution, shall be deemed to bear date as of the date written                      at the                      beginning of this Agreement. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **ASTRIS                    ENERGI INC.**   |
|---------------------------------------------|
|                                        |   |
| Per:                                        | /s/                    Anthony Durkacz |
| Name:                                       | Anthony                    Durkacz |
| Title:                                      | Vice                    President of Finance |
|                                        |
|                                             |
| **MACNOR                    INC.**          |
|                                        |   |
| Per:                                        | /s/                    Jiri K. Nor |
| Name:                                       | Jiri                    K. Nor |
| Title:                                      | President |
|                                        |
|                                        |
| **2062540                    ONTARIO INC.** |
|                                        |
| Per:                                        | /s/                    Jiri K. Nor |
| Name:                                       | Jiri                    K. Nor |
| Title:                                      | President |

----

**SCHEDULE          A**

**AEI          Warrants**

| **No.                    of Warrants**                |   | **Exercise                    Price** |   | **Purchase                    Price Allocation** |   |
|-------------------------------------------------------|--------|---------------------------------------|--------|--------------------------------------------------|--------|
| 2,000,000                    “A” Warrants |   | $                                     | 0.90   |                                             | $      | 124,000 |   |
| 2,000,000                    “B” Warrants |   | $                                     | 1.10   |                                             | $      | 94,000 |   |
| 1,000,000                    “C” Warrants |   | $                                     | 1.30   |                                             | $      | 36,000 |   |
|                                                  |   |                                  |   |                                             | **$**  | **254,000** |   |

~~.~~

----

**SCHEDULE          B**

**ESCROW          REQUIREMENTS**

----

**ESCROW          AGREEMENT**

**THIS          ESCROW AGREEMENT**

**AMONG:**

**ASTRIS          ENERGI INC.**

**AEI**

**OF          THE FIRST PART**

**MACNOR          CORPORATION**

**Macnor**

**OF          THE SECOND PART**

**2062540          **
**ONTARIO          INC.**

**Holdco**

**OF          THE THIRD PART**

**Escrow          Agent**

**OF          THE FOURTH PART**

----

**WHEREAS:**

| A. | AEI,                    Macnor and Holdco have entered into a share purchase agreement                    (the                    "**Purchase                    Agreement**")                    dated January 20, 2005 for the sale by Macnor through Holdco                    of the                    remaining 70% of the issued and outstanding shares of Astris                    s.r.o.                    ("**SRO**")                    not owned by AEI; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | All                    words and phrases defined in the Purchase Agreement and used                    in this                    Escrow Agreement but not otherwise defined shall have the meaning                    herein                    as therein; |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Pursuant                    to the terms of the Purchase Agreement, Macnor has agreed to                    indemnify AEI                    (the "**Indemnity**")                    for any breach of its representations or warranties as contained                    in the                    Purchase Agreement, for a period ending on January 2, 2006 (the                    "**Escrow                    Period**"),                    which indemnity shall be capped at a value equal to 2,500,000                    AEI shares                    received by Macnor from AEI on Closing (the "**Escrowed                    Shares**"),                    which Escrowed Shares shall be released to AEI to the extent                    and for any                    amount owing under the Indemnity, provided such amount may never                    exceed                    the Escrowed Shares; |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | Macnor                    and Holdco have agreed to direct that the Escrowed Shares** **be                    deposited and held by the Escrow Agent in accordance with and                    pursuant to                    the terms of this Escrow Agreement pending existence of and verification                    of the veracity of any claims under the Indemnity, failing which                    the                    Escrowed Shares shall be released at the end of the Escrow Period                    to                    Macnor. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**NOW          THEREFORE THIS AGREEMENT WITNESSETH**

**ARTICLE          1**

**INTERPRETATION**

**Definitions**

**Escrow          Agreement**

**Escrowed          Shares**

**Escrow          Amount Release Certificate**

**Termination          Date**

**Headings**

----

**Number          and Gender**

**Governing          Law**

**Severability**

**Appendices**

**Appendix          "A" - Escrow Amount Release Certificate**

**ARTICLE          2**

**ESCROW          AGENT**

**Appointment          of Escrow Agent**

**Escrow          Agent’s Fees and Expenses**

----

**Disclosure          by Escrow Agent**

**ARTICLE          3**

**DELIVERY          AND DEPOSIT OF THE ESCROWED SHARES**

**Delivery          of the Escrowed Shares**

**ARTICLE          4**

**RELEASE          OF ESCROWED SHARES**

**Receipt          of Notice of Claim under the Indemnity**

**Automatic          Release**
**Remaining          Balance**

**Greater          Certainty**

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**ARTICLE          5**

**LIABILITY          AND INDEMNITY**

**Liability          of the Escrow Agent**

**Indemnity          in Favour of the Escrow Agent**
** **

**Limitations          on Duties and Liabilities**

| (a)   | The                  Escrow Agent shall have no duties except those which are expressly                  set                  forth herein and shall not be bound by any notice of a claim or                  a demand                  with respect thereto or any waiver, modification, amendment, termination                  or rescission of this Agreement unless received by it in writing                  and                  signed by all of the parties hereto other than the Escrow Agent                  (or, in                  the case of a waiver, the party so waiving) and in a form satisfactory                  to                  the Escrow Agent. No implied duties or obligations of the Escrow                  Agent                  shall be read into this Agreement. Moreover, the Escrow Agent shall                  not at                  any time be required to deal with any securities regulatory authority,                  securities exchange, transfer agent, or any other comparable entity                  with                  respect to the Escrowed Shares. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | The                  Escrow Agent shall not be bound in any way by, or have a duty to                  inquire                  into, any agreement or contract between the parties hereto (whether                  or not                  the Escrow Agent has any knowledge thereof), and the duties and                  responsibilities of the Escrow Agent shall be limited to those                  expressly                  set forth herein. Nothing herein contained shall impose any obligation                  on                  the Escrow Agent to see to or require evidence of the registration                  or                  filing or recording (or renewal thereof) of this Escrow Agreement,                  or any                  instrument ancillary or supplemental thereto, or to procure any                  further,                  other, or additional instrument or further assurance. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (c)   | The                  Escrow Agent shall comply with such notices or instructions as                  are                  provided for in this Escrow Agreement and orders or processes of                  any court                  having jurisdiction. If any part or all of the Escrowed Shares                  held in                  escrow by the Escrow Agent is at any time attached or seized under                  any                  court order or in case any judicial order, judgment or decree shall                  be                  made affecting this Escrow Agreement or any part hereof, then,                  in such                  event, the Escrow Agent is authorized to rely upon and comply with                  such                  order, judgment or decree. The Escrow Agent is not bound to inquire                  into                  the authority of any persons signing any instructions, directions                  or                  orders hereunder. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)   | The                  Escrow Agent may employ such counsel of its choosing as it may                  deem                  necessary for the proper discharge of its duties                  hereunder. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)   | The                  Escrow Agent shall not be liable for any act or omission to act                  hereunder                  if taken or omitted by it in good faith. The Escrow Agent shall                  also be                  fully protected in relying upon any written notice, demand, certificate                  or                  document which it considers, in good faith, to be                  genuine. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f)   | In                  the event of any conflicting demands or claims with respect to                  the subject                  matter of this Escrow Agreement, including, without limitation,                  release of                  the Escrowed Shares or any portion thereof, the Escrow Agent shall                  have                  the right to discontinue all further acts until such conflicts                  are                  resolved, and the further right to commence or defend any action                  or                  proceeding for the determination of such conflict, including, without                  limitation of the foregoing, a suit or action in interpleader.                  In the                  event that the Escrow Agent should commence any action to determine                  any                  such conflict between the parties, including but not limited to                  an action                  in the nature of an interpleader, the Escrow Agent shall, upon                  delivery of                  the Escrowed Shares to a court of competent jurisdiction, be ipso                  facto                  released and discharged from any and all duties and obligations                  imposed                  upon the Escrow Agent hereunder with respect to the subject matter                  of such                  action. Notwithstanding the foregoing, the Escrow Agent shall provide                  Macnor and Holdco fifteen (15) days written notice prior to commencing                  any                  such action and during that period shall act reasonably and in                  good faith                  in facilitating a resolution of any such conflict between the                  parties. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)   | Each                  party hereto (other than the Escrow Agent) waives any claims or                  demands                  against the Escrow Agent and its principals with respect to all                  acts taken                  by the Escrow Agent in conformance with this Escrow Agreement.                  The Escrow                  Agent shall have no duty to take any action other than as specifically                  provided for in this Escrow Agreement, and shall have no liability                  for any                  non-action if such action has been restrained by any order of any                  court or                  administrative agency or if, in its sole discretion, it determines                  that                  any such action would violate any law or governmental                  regulation. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (h)   | The                  Escrow Agent may, in relation to its obligations hereunder, act                  on the                  opinion, advice or information obtained from any lawyer or other                  expert,                  whether retained by the Escrow Agent, Macnor or Holdco, but shall                  not be                  bound to act upon such opinion, advice or information and shall                  not be                  held responsible for any loss occasioned for so acting or not so                  acting,                  as the case may be, except if such loss results from the gross                  negligence                  or wilful misconduct of the Escrow Agent, and the Escrow Agent                  may employ                  such agents as may be necessary to properly discharge its duties                  and may                  pay any reasonable monies required for legal or other advice as                  aforesaid. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (i)   | In                  the exercise of its rights and duties hereunder, the Escrow Agent                  shall                  not be in any way responsible for the consequence of any breach                  on the                  part of a party hereto of any of their respective covenants herein                  contained or of any acts of the agents or servants of any of                  them. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (j)   | The                  Escrow Agent may resign its agency and be discharged from all duties                  and                  obligations hereunder by giving to AEI and Macnor thirty (30) days’ prior                  written notice of its resignation, or such shorter period as such                  parties                  shall accept as sufficient. If the Escrow Agent resigns its agency                  in                  accordance herewith, AEI and Macnor shall have the right and obligation                  to                  appoint a succeeding escrow agent who, upon accepting such appointment,                  shall assume all of the obligations and responsibilities and shall                  be                  entitled to enjoy the benefits and rights of the Escrow Agent hereunder.                  If a successor escrow agent is appointed as herein provided, the                  Escrow                  Agent shall deliver to such successor all of the Escrowed Shares                  then in                  its possession upon payment of its fees. |
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**ARTICLE          6**

**MISCELLANEOUS**

**Notices**

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|  | (a) | if                    to AEI: |
|--|-----|-------------------------------|

|  | (b) | if                    to Macnor: |
|--|-----|----------------------------------|

|  | (c) | if                    to Holdco: |
|--|-----|----------------------------------|

|  | (d) | if                    to Escrow Agent: |
|--|-----|----------------------------------------|

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**Successors          and Assigns**

**Assignability**

**Counterparts**

**Entire          Agreement**

**Further          Assurances**

**If          Date Falls on a Weekend or a Holiday**

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**IN          WITNESS WHEREOF**

**ASTRIS          ENERGI INC.**

**MACNOR          CORPORATION**

**2062540          **
**ONTARIO          INC.**

**ROGERS,          CAMPBELL, MICKLEBOROUGH**

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**APPENDIX          "A"**

**ESCROWED          SHARES**

**RELEASE          CERTIFICATE**

**TO:**
****,          as Escrow Agent**

**Escrow          Agreement**
**AEI**
**Macnor**
** **
**Holdco**
**Escrow          Agent**

**DATED**

**MACNOR          CORPORATION**

**DATED**

**2062540          ONTARIO INC.**

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