EXHIBIT 10(p)

as Lender

and

RADIANT ENERGY CORPORATION

as Corporation

---

7.75% SERIES A CONVERTIBLE DEBENTURE

April 5, 2001

---

WILDEBOER RAND THOMSON APPS & DELLELCE, LLP

TABLE OF CONTENTS

`ARTICLE 1 TERMS................................................................1
   Section 1.1   Principal Amount..............................................1
   Section 1.4   Subordination.................................................2
   Section 1.5   No Prepayments................................................3

ARTICLE 2 CONVERSION...........................................................3
   Section 2.1   Conversion....................................................3
   Section 2.2   No Requirement to Transfer Fractional Common Shares...........4

ARTICLE 3 INTERPRETATION.......................................................4
   Section 3.1   Defined Terms.................................................4
   Section 3.2   Interpretation................................................6
   Section 3.3   Governing Law.................................................7

ARTICLE 4 REPRESENTATIONS AND WARRANTIES.......................................7
   Section 4.1   General Representations and Warranties........................7
   Section 4.2   Survival of Representations and Warranties...................10

ARTICLE 5 ADJUSTMENT OF CONVERSION NUMBER.....................................10
   Section 5.1   Adjustment of Price and Terms................................10

ARTICLE 6 COVENANTS OF THE CORPORATION........................................15
   Section 6.1   General Covenants............................................15

ARTICLE 7 EVENTS OF DEFAULT AND REMEDIES......................................17
   Section 7.1   Events of Default............................................17
   Section 7.2   Consequences of an Event of Default..........................18

ARTICLE 8 GENERAL.............................................................18
   Section 8.1   Waiver.......................................................18
   Section 8.2   Other Securities.............................................19
   Section 8.3   No Merger or Novation........................................19
   Section 8.4   Amalgamation.................................................19
   Section 8.5   Lender May Remedy Default....................................19
   Section 8.6   Notices......................................................19
   Section 8.7   Receipt......................................................20
   Section 8.8   Invalidity of any Provisions.................................20
   Section 8.9   Indemnification..............................................20
   Section 8.10  Successors and Assigns, etc..................................20
   Section 8.11  Amendments...................................................21
   Section 8.12  Counterparts.................................................21`

THIS DEBENTURE AND THE
SECURITIES ISSUABLE UPON ITS CONVERSION (COLLECTIVELY, THE
SECURITIES) HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933 (THE ACT). THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT
AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT IN
ACCORDANCE WITH THE PROVISIONS OF REGULATION S (230.901 THROUGH
230.905 AND PRELIMINARY NOTES), PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE ACT, OR UPON DELIVERY OF AN OPINION OF
COUNSEL SATISFACTORY TO THE ISSUER THAT THE PROPOSED DISPOSITION OF THE
SECURITIES WILL NOT VIOLATE SECTION 5 OF THE ACT. HEDGING TRANSACTIONS INVOLVING
THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

WITHOUT PRIOR WRITTEN
APPROVAL OF THE CANADIAN VENTURE EXCHANGE (CDNX) AND COMPLIANCE WITH
ALL APPLICABLE SECURITIES LEGISLATION, NEITHER THIS DEBENTURE NOR THE SECURITIES
ISSUABLE UPON CONVERSION HEREOF MAY BE SOLD, TRANSFERRED. HYPOTHECATED OR
OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF CDNX OR OTHERWISE IN CANADA OR
TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL AUGUST 5, 2001.

Principal Amount: $.00

April 20, 2001

ARTICLE 1
TERMS

Section 1.1        Principal Amount.

For
value received, Radiant Energy Corporation (hereinafter referred to as the
Corporation), a corporation existing under the laws of Canada having
its principal office at 40 Centre Drive, Orchard Park, New York 14127,
acknowledges itself indebted and promises to pay to or to the order of (lenders name)
(hereinafter referred to as the Lender) the sum of ($,000)
(the Principal) together with any unpaid
interest accrued thereon, in lawful money of the United States, at the
Corporations head office or such other place as the Lender may designate
on or before 5:00 p.m. (Eastern Standard Time) on April 5, 2006 (the Maturity Date).

Section 1.2        Interest.

The
Principal of this Debenture shall bear interest from the date of issue to and
including the Maturity Date (or the earlier payment and discharge of the
Principal in accordance with the provisions hereof) at the rate of 7.75% per
annum, both before and after maturity, default or judgment (with interest on
overdue interest at the said rate) payable half-yearly on April 5 and October 5
in each year until the Maturity Date; provided that upon any conversion of all
remaining Principal in accordance with Article 2, all accrued and unpaid
interest shall be paid to the Lender within five (5) Business Days (as
hereinafter defined) of such conversion. Forthwith upon the issue and sale of
this Debenture, the Corporation shall deposit an amount equal to the amount of
interest payable on this Debenture from the date hereof to and including April
5, 2002 into a segregated bank account with the Corporations principal
bankers (the Interest Reserve Account). The Corporation shall use
the proceeds of the Interest Reserve Account to satisfy its obligations to pay
interest pursuant to this section 1.2 during such period and for no other
purpose.

Section 1.3        Designation and Priority.

This
Debenture is one of several 7.75% Series A Convertible Debentures to be issued
by the Corporation on or about the date hereof in an aggregate principal amount
not to exceed $1,500,000 (collectively, the Series A Debentures),
each of which Series A Debentures shall be in substantially the same form as
this Debenture, shall be dated as April 5, 2001 regardless of their actual date
of issue, shall bear interest in accordance with Section 1.3 hereof and shall be
convertible in accordance with Article 2 hereof. All Series A Debentures shall
rank equally rateably without discrimination, preference or priority. The
ranking of the Series A Debentures set out in this Section 1.3 shall apply in
all events and circumstances regardless of the date of any advance or advances
made to the Corporation by the holders of the Series A Debentures The provisions
of this Debenture shall be binding on the Corporation, the Lender and all
persons claiming through or under them respectively and any such persons shall
be deemed to have notice of these provisions.

Section 1.4        Subordination

(1)     
The payment and repayment of Principal and interest in respect of this Debenture
(the Postponed Obligations) is, and at all times will be,
automatically and fully subordinated and postponed, without any further action
or documentation necessary to give effect to such subordination, in right of
payment to the prior payment in full of all Senior Indebtedness (as hereinafter
defined). The Lender will, at any time and from time to time at the written
request and at the expense of the Corporation, execute such agreements,
documents and instruments as may in the opinion of the Corporation, acting
reasonably, be necessary or advisable to confirm the subordination and
postponement contemplated by this section 1.4. Nothing in this section 1.4(1)
shall be construed as entitling any third party who has made loans to the
Corporation to receive any proceeds from any property or assets of the
Corporation in respect of which such third party does not have security, or has
subordinated its security to other security interests granted by the
Corporation, or in respect of which the security granted to such third party is
invalid or unenforceable and nothing in this Debenture shall apply so as to
diminish the rights of the Lender to the proceeds of realization arising on the
sale of property or assets of the Corporation in the case where any Security in
favour of such third party is invalid or unenforceable.

(2)     
For greater certainty, this section 1.4 shall not be construed so as to prevent
the Lender from receiving and retaining any payments on account of the
Debentures which are made (a) in a manner that is consistent with the terms of
this Debenture and (b) at any time when no event of default as defined in any
Senior Indebtedness or the instrument creating the same has occurred and is
continuing and in respect of which notice has been given by or on behalf of the
holders of Senior Indebtedness to the Corporation and the Lender. Until written
notice shall be given to the Lender by or on behalf of the holders of Senior
Indebtedness of the occurrence of any default with respect to such Senior
Indebtedness or the existence of any other facts which would have the result
that any payment in respect of this Debenture would be in contravention of the
provisions of this section 1.4, the Lender shall be entitled to assume that no
such default has occurred, or that no such facts exist.

Section 1.5        No Prepayments.

Except
with the prior written consent of the Lender, the Principal hereof may not be
prepaid prior to the Maturity Date, whether in whole or in part.

Section 1.6        Currency.

Unless
otherwise indicated, all references in this Debenture to $ or dollars are
references to the legal currency of the United States.

ARTICLE 2
CONVERSION

Section 2.1        Conversion.

At
any time on or before the Maturity Date, at the option of the Lender by delivery
of a Conversion Notice substantially in the form appended hereto as Schedule
A to the Corporation in accordance with Section 8.6 hereof, each
$1,000 of Principal then outstanding (for purposes of this Article 2, the
Amount Owing) may be converted into the number (the Conversion
Number) of fully-paid and non-assessable Common Shares in the capital of
the Corporation (Common Shares), subject to adjustment in accordance
with Article 5 hereof, set forth in the table below opposite the date of such
conversion:

|Date of Conversion                               | Conversion Number | Conversion Rate
|------------------------------------------------ | ----------------- | ---------------
|Date of Issue to and including April 5, 2003     | 1,160             | $0.86          
|April 5, 2003 to and including April 5, 2004     | 810               | $1.235         
|April 5, 2004 to and including April 5, 2005     | 710               | $1.408         
|April 5, 2005 to and including the Maturity Date | 580               | $1.724         

Upon any conversion of the
Principal of this Debenture, the underlying Common Shares shall be issued to the
Lender as of the date it is deemed to have received the Conversion Notice in
accordance with Section 8.6 and shall be registered and delivered to the Lender
at the address set forth in the Conversion Notice.

Section_2.2        No Requirement to Transfer Fractional Common Shares.

The
Corporation shall not be required to issue fractional Common Shares upon the
conversion of this Debenture or any part thereof. If any fractional interest in
a Common Share would, except for the provisions of this Section 2.2, be
delivered upon the conversion of the Debenture, the Corporation shall be
required to round up to the next whole Common Share and deliver the same to the
Lender.

ARTICLE 3
INTERPRETATION

Section 3.1        Defined Terms.

In
addition to the terms defined elsewhere in this Debenture, the following
expressions shall have the following meanings:

| | "Affiliate" has the meaning ascribed to such term in the Canada Business Corporations Act;
| | ------------------------------------------------------------------------------------------

| | Business
Day means any day other than Saturday, Sunday or a day on which chartered
banks are closed for business in Toronto, Ontario or Buffalo, New York;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Canadian
Securities Laws means the Securities Act (Ontario), Securities Act
(British Columbia) and Securities Act (Alberta), as the same may from time to
time be amended, supplemented or re-enacted, and all regulations, rules, policy
statements, orders and notices promulgated thereunder;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | "Common Shares" means the common shares in the capital of the Corporation;
| | --------------------------------------------------------------------------

| | Current
Market Price means, for any date, the weighted average price at which the
Common Shares have traded in the principal over-the-counter market or recognized
exchange or market during the twenty (20) consecutive trading days ending the
trading day immediately preceding such date as reported by such principal market
or exchange on which the Common Shares are then trading or quoted, and the
weighted average price shall be determined by dividing the aggregate sale price
of all Common Shares sold in board lots on the principal over-the-counter
market, or recognized exchange or market, as the case may be, during the twenty
(20) consecutive trading days by the number of Common Shares sold. If the Common
Shares are not then traded (i) in the over-the-counter market or on a recognized
exchange or market, the Current Market Price of the Common Shares shall be the
fair market value of the Common Shares as determined in good faith by the Board
of Directors of the Corporation; or (ii) in United States dollars, the Current
Market Price shall be calculated in the currency in which the Common Shares are
traded on the basis set forth above and such Current Market Price shall then be
converted to United States dollars at the exchange rate in effect at the close
of business on the final day of such twenty (20) day period as quoted by the
Bank of New York;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Disclosure
Documents means the following public disclosure documents of the
Corporation prepared and filed pursuant to applicable securities legislation:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | audited financial statements as at and for the year ended October 31, 2000;                                                                              
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | management information circular dated February 20, 2001 in respect
of the annual meeting of shareholders to be held on March 29, 2001; and               
| | (c) | all press releases and material change reports filed pursuant to Canadian
Securities Laws after October 31, 2000 and prior to the date of this Debenture;

| | "Event of Default" has the meaning ascribed to such term in Section 5.1;
| | ------------------------------------------------------------------------

| | Instrument
means this Debenture or any other agreement or instrument (whether now existing,
presently arising or created in future) delivered by the Corporation to the
Lender;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | "Management" means a senior officer, as defined in the Securities Act (Ontario),
of the Corporation and its subsidiaries;
| | -------------------------------------------------------------------------------------------------------------------------

| | Obligations
means all Principal, interest and other monies now or at any time and from time
to time hereafter owing or payable by the Corporation to the Lender, whether
direct or indirect, absolute or contingent, matured or not, arising from this
Debenture;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Order
means any order, notice, direction, report, recommendation or decision rendered
by any governmental or other regulatory agency;
| | ---------------------------------------------------------------------------------------------------------------------------------------

| | Person
means an individual, partnership, corporation, trust, unincorporated
association, joint venture, governmental agency or other entity;
| | ----------------------------------------------------------------------------------------------------------------------------------------------

| | "Postponed Obligations" has the meaning ascribed thereto in section 1.4;
| | ------------------------------------------------------------------------

| | "Premises" means any premises owned or occupied by the Corporation or its
Subsidiaries from time to time;
| | ---------------------------------------------------------------------------------------------------------

| | Security
means any mortgage, charge, hypothec, pledge, assignment, lien, security
interest or other encumbrance, including any sale and repurchase or sale and
lease back arrangement or any other arrangement of similar effect;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | "Senior Indebtedness" means the principal and interest on:
| | ----------------------------------------------------------

| | (a) | indebtedness for borrowed money that the Corporation may now or hereafter incur
to the extent the Corporation has granted security therefor and to the extent
that the obligation to repay the borrowed money is not itself subordinated to
any third party the effect of which postponement would be that the Postponed
Obligations would be postponed to any such third party to whom the Postponed
Obligations would not otherwise be postponed; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | renewals, extensions, restructurings, refinancings and refundings of any such indebtedness;
| | --- | -------------------------------------------------------------------------------------------

| | unless
in any of the cases specified in (a) or (b) above it is provided by the terms of
the instrument creating or evidencing such indebtedness that such indebtedness
is not superior in right of payment to this Debenture;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | "RAS" means Radiant Aviation Services, Inc., a wholly-owned Subsidiary of the Corporation;
| | ------------------------------------------------------------------------------------------

| | Subsidiary
means a corporation controlled by the Corporation, as the term
control is defined in the Canada Business Corporations Act as in
effect at the date hereof and without reference to any amendments thereto after
the date hereof; and
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 3.2        Interpretation.

|(1) | This Debenture, hereto, hereby,
hereunder, herein, and similar expressions refer to the
whole of this Debenture and not to any particular Article, Section, or other
portion hereof.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Words importing the singular number only include the plural and vice versa and
words importing gender shall include all genders.
|--- | --------------------------------------------------------------------------------------------------------------------------------

|(3) | All financial or accounting determinations, reports and statements provided for
in this Debenture shall be made or prepared in accordance with generally
accepted accounting principles applied in a consistent manner and shall be made
and prepared on a consolidated basis.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | The division of this Debenture into Articles and Sections and the insertion of
headings are for convenience of reference only and shall not affect the
construction or interpretation of this Debenture.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | The Schedule annexed hereto shall, for all purposes, form an integral part of this Debenture.
|--- | ---------------------------------------------------------------------------------------------

|(6) | Time is of the essence hereof.
|--- | ------------------------------

|(7) | Where the word  "including"  or "includes" is used in this  Debenture,  it means
"including (or includes) without limitation".
|--- | ------------------------------------------------------------------------------------------------------------------------------

|(8) | Wherever in this Debenture reference is made to generally accepted accounting
principles, such reference shall be deemed to mean the generally accepted
accounting principles from time to time approved by the American Institute of
Certified Public Accountants or the Canadian Institute of Chartered Accountants,
or any successor institute, applicable as at the date on which a given
calculation is made or required to be made in accordance with generally accepted
accounting principles.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 3.3        Governing Law.

This
Debenture shall be governed by and interpreted and enforced in accordance with
the laws of the Province of Ontario and the federal laws of Canada applicable
therein.

Section 3.4        Removal of Legend.

The
Lender shall be entitled, upon request to the Corporation in writing, to have
the first paragraph of the restrictive legend appearing on the first page of
this Debenture removed from the Debenture and the Common Shares issuable upon
conversion hereof:  (a) if the sale of Debenture or the Common Shares
issuable upon conversion hereof (as the case may be) are registered under the
Act, (b) if the Subscriber delivers evidence satisfactory to the to the Corporation
acting reasonably that the Debenture or Common Shares issuable upon the exercise hereof
(as the case may be) have been sold (A) pursuant to offers and sales that occur outside
the United States within the meaning of Regulation S under the Act in a
transaction meeting the requirements of Rule 903 or 904 under the Act; or, (B)
pursuant to another available exemption from the registration requirements of
the Act in compliance with Rule 144, or (3) if, in accordance with Rule 144(k)
under the Act, the Debenture or Common Shares issuable upon conversion hereof
(as the case may be) have been held for two years from the date of issue of the
Debentures and the holder has not been an affiliate of the Corporation within
the three month period prior to the date the legend is to be removed.

ARTICLE 4
REPRESENTATIONS AND WARRANTIES

Section 4.1        General Representations and Warranties.

The
Corporation represents and warrants as follows to the Lender and acknowledges
and confirms that the Lender is relying upon such representations and warranties
in connection with the purchase by the Lender of the Debenture:

| | (a) | Due Incorporation and Existence of the Corporation and RAS. The Corporation is a
corporation  incorporated  and  existing  under the laws of Canada  and RAS is a
corporation incorporated and existing under the laws of the state of New York;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Corporate  Power.  Each of the Corporation and RAS has the corporate power to
own or lease its property and to operate and carry on its respective business as
now being conducted by it;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Authorized  Capital.  The authorized  capital of the Corporation  consists of an
unlimited  number of Common Shares of which,  as at the date hereof,  14,026,665
Common  Shares  have been duly  issued  and are  outstanding  as fully  paid and
non-assessable and legally and beneficially owned;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Options, etc. Except for options to purchase an aggregate of 1,461,505 Common
Shares which have issued under the Corporations Employee Share Option
Plan, the Common Shares issuable upon the due conversion of the Series A
Debentures, the options to acquire 145,486 Common Shares which were granted to
the Lender on or about June 30, 1999 and the Warrants, no Person has any option,
warrant, right, call, commitment, conversion right, right of exchange or other
agreement or any right or privilege (whether by law, pre-emptive or contractual)
capable of becoming an option, warrant, right, call, commitment, conversion
right, right of exchange or other agreement for the purchase, subscription,
allotment or issuance of any of the unissued shares in the capital of the
Corporation or RAS or of any securities of the Corporation or RAS;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | Dividends and Distributions. Since October 31, 2000, the Corporation has not,
directly or indirectly, declared or paid any dividends or declared or made any
other distribution on any of its shares of any class and has not, directly or
indirectly, redeemed, purchased or otherwise acquired any of its shares of any
class or agreed to do so;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | Subsidiaries.  The Corporation has no material  Subsidiaries  other than Radiant
Aviation  Services,  Inc., which is wholly-owned by the Corporation,  and has no
investment or proposed investment in any Person which is or would be material to
the business and affairs of the Corporation on a consolidated basis;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | Validity of Debenture. The Corporation has all necessary corporate power,
authority and capacity to enter into and perform its obligations under this
Debenture and under the Warrants and the execution, and delivery and performance
by the Corporation of this Debenture and the certificate representing the
Warrants and the consummation of the transactions contemplated thereby:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | have been duly authorized by all necessary corporate action on the part of the Corporation; and
| | --- | -----------------------------------------------------------------------------------------------

| | (ii) | do not (or would not with the giving of notice, the lapse of time or the
happening of any other event or condition) result in a violation or a breach of,
or a default under or give rise to a right of termination, greater rights or
increased costs, amendment or cancellation or the acceleration of any obligation
under (A) any of the constating documents or by-laws of the Corporation; (B) any
contracts or instruments to which the Corporation is a party or by which the
Corporation is bound; or (C) any securities laws applicable to the Corporation;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | Financial Statements. The audited financial statements of the Corporation as at
and for the year ended October 31, 2000 have been prepared in accordance with
generally accepted accounting principles applied on a basis consistent with
those of previous fiscal years and present fairly:
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the assets, liabilities, (whether accrued, absolute, contingent
or otherwise)  and financial  position of the  Corporation  as at the respective
dates of the relevant statements; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | the sales and earnings of the Corporation during the period covered thereby;
| | ---- | ----------------------------------------------------------------------------

| | (i) | No Material Adverse Change.  Other than as has been publicly disclosed in
accordance with Canadian Securities Laws, there has not occurred any material
adverse change, financial or otherwise, in the assets, liabilities (contingent
or otherwise), business, financial condition, capital or prospects of the
Corporation and its subsidiaries since the date of the audited financial
statements of the Corporation for the year ended October 31, 2000, and except as
set forth in the Disclosure Documents, no transaction has been entered into by
the Corporation or any of its subsidiaries (other than in the ordinary course of
business) which is or would be material to the Corporation on a consolidated
basis;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j) | Litigation. There is no action, suit or proceeding, at law or in equity, by any
Person, nor any arbitration, administrative or other proceeding by or before (or
to the best of the knowledge of the Corporation any investigation by) any
governmental entity pending, or, to the best knowledge of the Corporation,
threatened against or affecting the Corporation or RAS or any of their
respective properties or rights which would, if successful, have a material
adverse effect on the business, operations or financial condition of the
Corporation on a consolidated basis, and the Corporation does not know of any
valid basis for any such action, suit, proceeding, arbitration or investigation.
Neither the Corporation nor RAS is subject to any judgment, order or decree
entered in any lawsuit or proceeding;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k) | No  Default.  Neither the Corporation nor RAS is in default in
any material  respect under any obligation  (contingent or otherwise) in respect
of borrowed money other than trade payables owing to (i) IR Energy in the amount
of $136,125;  (ii)  Birdair,  Inc. in the amount of $441,250;  and (iii) Tishmen
Construction Corporation of New Jersey in the amount of $240,330;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l) | No   Event  of  Default.  No  event  has  occurred  which
constitutes,  or with  notice  or lapse of time,  would  constitute  an Event of
Default;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (m) | No Consents. No approval, authorization, consent or other order of, and no
filing, registration or recording with, any governmental authority is required
of the Corporation in connection with the execution and delivery or with the
performance by the Corporation of this Debenture and the obligations of the
Corporation hereunder, except compliance with applicable Canadian Securities
Laws and the consent of the Canadian Venture Exchange;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (n) | No  Cease Trade. No order ceasing or suspending trading in
the securities of the  Corporation  nor  prohibiting the sale of such securities
has been issued to the  Corporation or its directors,  officers or promoters and
no investigation or proceedings for such purposes are pending or threatened;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (o) | Due  Allotment and Issuance.  The Common Shares  issuable upon
exercise of the  Warrants  will,  at the same time,  be duly  allotted,  validly
issued, fully paid and non-assessable and will be free of all liens, charges and
encumbrances;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (p) | Full Disclosure. Neither this Debenture nor any certificate or statement in
writing which has been supplied by or on behalf of the Corporation or by any of
the directors, officers or employees of the Corporation in connection with the
transactions contemplated hereby contains any untrue statement of a material
fact, or omits any statement of a material fact necessary in order to make the
statements contained herein or therein not misleading. Except as disclosed to
the Lender, there is no fact known to the Corporation which materially and
adversely affects the affairs, businesses, prospects, operations or conditions
of the Corporation or RAS, financial or otherwise, or the business, which has
not been disclosed in the Disclosure Documents; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (q) | Reporting Issuer. The Corporation is a reporting issuer not in default in the
provinces of Ontario, Alberta and British Columbia pursuant to applicable
securities laws and the Common Shares have been duly registered with the United
States Securities Exchange Commission.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 4.2        Survival of Representations and Warranties.

The
representations and warranties in this Debenture and in any certificates or
documents delivered to the Lender shall not merge and shall continue in full
force and effect until all obligations of the Corporation pursuant to this
Debenture have been satisfied in full.

ARTICLE 5
ADJUSTMENT OF CONVERSION NUMBER

Section 5.1        Adjustment of Price and Terms

(1)        
The applicable Conversion Number set out in Section 2.1 shall be subject to
adjustment from time to time as hereinafter provided.

(2)        
If and whenever at any time after the date hereof the Corporation:

| |  | (a) | issues Common Shares or securities exchangeable for or convertible into Common
Shares, to all or substantially all of the holders of Common Shares by way of
stock dividend or otherwise (other than an issue of Common Shares or securities
to holders of Common Shares who have elected in the ordinary course to receive
dividends in Common Shares or securities in lieu of receiving cash dividends);
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) | makes a distribution on its outstanding Common Shares payable in Common Shares
or securities exchangeable for or convertible into Common Shares (other than a
distribution of Common Shares or securities to holders of Common Shares who have
elected in the ordinary course to receive dividends in Common Shares or
securities in lieu of receiving cash dividends);
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (c) | subdivides,  redivides or changes its  outstanding  Common Shares into a greater
number of Shares; or
| |  | --- | -----------------------------------------------------------------------------------------------------

| |  | (d) | reduces,  combines or consolidates its outstanding  Common Shares into a smaller
number of Common Shares,
| |  | --- | ---------------------------------------------------------------------------------------------------------

(any of such events in
clauses (a), (b), (c) and (d) being called a Share Reorganization),
then the Conversion Number shall be adjusted effective immediately after the
effective date or record date for the happening of a Share Reorganization, as
the case may be, at which the holders of Common Shares are determined for the
purpose of the Share Reorganization, by multiplying the Conversion Number in
effect immediately prior to such effective date or record date by a fraction,
the numerator of which shall be the number of Common Shares outstanding
immediately after giving effect to such Share Reorganization (including, in the
case where securities exchangeable for or convertible into Common Shares are
issued or distributed, the number of Common Shares that would have been
outstanding had all such securities been exchanged for or converted into Shares
on such effective date or record date) and the denominator of which shall be the
number of Common Shares outstanding on such effective date or record date before
giving effect to such Share Reorganization.

(3)        
If and whenever at any time after the date hereof the Corporation fixes a record
date for the issue of rights, options or warrants to all or substantially all
the holders of Common Shares under which such holders are entitled, during a
period expiring not more than forty-five (45) days after the date of such issue
(the Rights Period), to subscribe for or purchase Common Shares or
securities (Exchangeable Securities) exchangeable for or convertible
into Common Shares at a price per share to the Lender (or at an exchange or
conversion price per Common Share during the Rights Period to the Lender in the
case of Exchangeable Securities) of less than ninety-five percent (95%) of the
Current Market Price for the Shares on such record date (any of such events
being called a Rights Offering), then the Conversion Number shall be
adjusted effective immediately after the end of the Rights Period to a price
determined by multiplying the Conversion Number by a fraction:

| |  | (a) | the denominator of which shall be the aggregate of:
| |  | --- | ---------------------------------------------------

| |  |  | (i) | the number of Shares  outstanding as of the record date for the Rights Offering;
and
| |  |  | --- | ------------------------------------------------------------------------------------

| |  |  | (ii) | a number determined by dividing (1) either (A) the product of the number of
Common Shares issued or subscribed for during the Rights Period upon the
exercise of the rights, warrants or options under the Rights Offering and the
price at which such Common Shares are offered, or, as the case may be, (B) the
product of the exchange or conversion price, immediately following the expiry of
the Rights Period, of the Exchangeable Securities which were issued or
subscribed for during the Rights Period upon the exercise of the rights,
warrants or options under the Rights Offering and the number of Common Shares
for or into which such Exchangeable Securities could have been exchange or
converted immediately following the expiry of the Rights Period, by (2) the
Current Market Price of the Common Shares as of the record date for the Rights
Offering, and
| |  |  | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) | the numerator of which shall be the number of Common Shares outstanding, or the
number of Common Shares which would be outstanding if all the Exchangeable
Securities were exchanged for or converted into Common Shares immediately
following the expiry of the Rights Period, after giving effect to the Rights
Offering and including the number of Common Shares actually issued or subscribed
for during the Rights Period upon exercise of the rights, warrants or options
under the Rights Offering.
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

To the extent that any such
rights, options or warrants are not so exercised on or before the expiry
thereof, the Conversion Number shall be readjusted to the Conversion Number
which would then be in effect based on the number of Common Shares (or
Exchangeable Securities) actually delivered on the exercise of such rights,
options or warrants. If the Lender has exercised the right to convert this
Debenture into Common Shares during the period beginning immediately after the
record date for a Rights Offering and ending on the last day of the Rights
Period for the Rights Offering the Lender shall, in addition to the Common
Shares to which the Lender would otherwise be entitled upon such conversion in
accordance with Section 2.1, be entitled but not obligated, and on payment of
the purchase price for any such rights, options or warrants (the Rights
Offering Price), to obtain that number of additional Common Shares that
the Lender would have been entitled to receive if such conversion had occurred
immediately prior to such record date; provided that the provisions of Section
2.2 shall be applicable to any fractional interest in a Common Share to which
the Lender might otherwise be entitled under the foregoing provisions of this
subsection. Such additional Common Shares shall be deemed to have been issued to
the Lender immediately following the end of the Rights Period and a certificate
for such additional Common Shares shall be delivered to the Lender within
fifteen (15) business days following the end of the Rights Period.

(4)        
If and whenever at any time after the date hereof the Corporation fixes a record
date for the issue or the distribution to all or substantially all the holders
of Common Shares of (i) securities of the Corporation, including rights, options
or warrants to acquire securities of the Corporation or any of its property or
assets and including evidences of indebtedness or (ii) any property, cash or
other assets, including evidences of indebtedness, and if such issuance or
distribution does not constitute a cash dividend or equivalent dividend in stock
that is a dividend paid in the ordinary course, a Share Reorganization or a
Rights Offering (any of such non-excluded events being called a Special
Distribution), the Conversion Number shall be adjusted effective
immediately after such record date to a price determined by multiplying the
Conversion Number in effect on such record date by a fraction:

| |  | (a) | the denominator of which shall be:
| |  | --- | ----------------------------------

| |  |  | (i) | the product of the number of Common Shares outstanding on such record date and
the Current Market Price of the Common Shares on such record date; less
| |  |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | (ii) | the fair market value, as determined by the directors (whose determination shall
be conclusive), of such securities or property or other assets so issued or
distributed in the Special Distribution; and
| |  |  | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) | the numerator of which shall be the product of the number of Common Shares
outstanding on such record date and the Current Market Price of the Common
Shares on such record date.
| |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

To the extent that any
Special Distribution is cancelled or revoked, whether by the Corporation or
otherwise, the Conversion Number shall be readjusted effective immediately to
the Conversion Number which would then be in effect based upon such securities
or property or other assets actually distributed.

(5)        
If and whenever at any time after the date hereof there is a reclassification of
the Common Shares at any time outstanding or change of the Common Shares into
other shares or into other securities or other capital reorganization (other
than a Share Reorganization), or a consolidation, amalgamation or merger of the
Corporation with or into any other corporation or other entity (other than a
consolidation, amalgamation or merger which does not result in any
reclassification of the outstanding Common Shares or a change of the Common
Shares into other shares), or a transfer of the undertaking or assets of the
Corporation as an entirety or substantially as an entirety to another
corporation or other entity (any of such events being called a Capital
Reorganization), if the Lender exercises the right to convert Debentures
into Common Shares after the effective date of such Capital Reorganization the
Lender shall be entitled to receive, and shall accept for the same aggregate
consideration, in lieu of the number of Common Shares to which the Lender was
previously entitled upon such conversion, the aggregate number of shares, other
securities or other property which the Lender would have been entitled to
receive as a result of such Capital Reorganization if, on the effective date
thereof, the Lender had been the registered Lender of the number of Common
Shares to which the Lender was previously entitled upon conversion. The
Corporation shall take all steps necessary to ensure that, on a Capital
Reorganization, the Lender will receive the aggregate number of shares, other
securities or other property to which the Lender is entitled as a result of the
Capital Reorganization.

(7)        
If the Rights Offering Price referred to in subsections (3) or (4) of this
Section 5.1 is decreased, the Conversion Number shall forthwith be changed so as
to decrease the Conversion Number to the Conversion Number that would have been
obtained had the adjustment to the Conversion Number made under such subsection
(3) or (4), as the case may be, with respect to such rights, options or warrants
been made on the basis of the Rights Offering Price as so decreased, provided
that the terms of this subsection shall not apply to any decrease in the Rights
Offering Price resulting from terms in any such rights, options or warrants
designed to prevent dilution to the extent that the event giving rise to such
decrease in the Rights Offering Price results in an adjustment of the Conversion
Number pursuant to any of the preceding subsections of this Section 5.1.

(8)
        (a)        
The adjustments provided for in this Section 5.1 are cumulative and
shall be computed to the nearest one one-thousand of a Common Share and shall be
made successively whenever an event referred to herein occurs, subject to the
following clauses of this subsection.

(b)        
No adjustment in the Conversion  Number shall be required unless such  adjustment  would
result  in a change  of at  least  one  one-hundredth  of a  Common  Share  (1/100);  provided,  however,  that any
adjustments  which except for the provisions of this clause would  otherwise have been required to be made shall be
carried forward and taken into account in any subsequent adjustment.

(c)        No adjustment in the Conversion  Number shall be made in respect of any event  described
in this Section 5.1, other than the events  referred to in clauses  5.1(2)(c) and (d), if the Lender is entitled to
participate in such event on the same terms,  mutatis  mutandis,  as if it had converted this Debenture prior to or
on the effective date or record date of such event.

(d)        No  adjustment  in the  Conversion  Number shall be made pursuant to this Section 5.1 in
respect of the issue from time to time of Common  Shares  issuable on  conversion of the Debenture or in respect of
the issue from time to time as dividends  paid in the ordinary  course as Common Shares to holders of Common Shares
who  exercise an option or election  to receive  substantially  equivalent  dividends  in Common  Shares in lieu of
receiving a cash dividend, and any such issue shall be deemed to be a Share Reorganization.

(e)        Upon any  adjustment  to the  Conversion  Number in  accordance  with this  section 5.1,
corresponding adjustments shall contemporaneously be made to the Conversion Rate.

(f)        If at any time a  dispute  arises  with  respect  to  adjustments  provided  for in this
Section 5.1, such dispute shall be conclusively  determined by the  Corporation"s  auditors,  or if they are unable
or unwilling to act, by such other nationally  recognized  independent  chartered accountants as may be selected by
action of the Board of Directors and any such determination shall be binding upon the Corporation and the Lender.

(g)        If after the date of this  Debenture,  the  Corporation  takes any action  affecting the
Shares,  other than action  described  in this Section  5.1,  which in the opinion of the Board of Directors  would
materially  affect the rights of the Lender,  the Conversion  Number shall be adjusted in such manner,  if any, and
at  such  time,  as the  Board  of  Directors,  in its  sole  discretion,  may  determine  to be  equitable  in the
circumstances,  but subject in all cases to any  necessary  regulatory  approvals.  Failure of the taking of action
by the  directors  so as to  provide  for an  adjustment  on or prior to the  effective  date of any  action by the
Corporation  affecting the Common Shares shall be conclusive  evidence that the directors have  determined  that it
is equitable to make no adjustment in the circumstances.

(h)        If the  Corporation  sets a record date to  determine  the holders of Common  Shares for
the purpose of  entitling  them to receive any  dividend  or  distribution  or sets a record date to take any other
action and thereafter and before the  distribution  to such  shareholders  of any such dividend or  distribution or
the taking of any other action,  legally  abandons its plan to pay or deliver such dividend or distribution or take
such other action,  then no adjustment in the Conversion  Number shall be required by reason of the setting of such
record date.

(i)        In the  absence of a  resolution  of the  directors  fixing a record  date for a Special
Distribution  or Rights  Offering,  the  Corporation  shall be deemed to have fixed as the record date therefor the
date on which the board passed the resolution approving the Special Distribution or Rights Offering.

(j)        As a  condition  precedent  to  the  taking  of  any  action  which  would  require  any
adjustment  to the  Conversion  Number or  conversion  terms of this  Debenture,  the  Corporation  shall  take all
corporate  action  which may, in the opinion of  counsel,  be  necessary  in order that the  Corporation  will have
unissued  and  reserved  in  its  authorized  capital  and  may  validly  and  legally  issue  as  fully  paid  and
non-assessable  all the shares or other  securities  which the Lender is entitled to receive on the full conversion
thereof in accordance with the provisions thereof.

ARTICLE 6
COVENANTS OF THE CORPORATION

Section 6.1        General Covenants.

So
long as this Debenture remains outstanding, the Corporation covenants and agrees
as follows:

| | (a) | To  Pay Costs. The Corporation shall pay all costs,  fees,
charges  and  expenses in relation  to the  issuance of this  Debenture  and any
enforcement of the terms hereof;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | To Maintain Corporate Existence.  The Corporation shall and
shall cause each of its Subsidiaries to:
| | --- | ----------------------------------------------------------------------------------------------------

| | (i) | maintain its corporate existence;
| | --- | ---------------------------------

| | (ii) | observe and conform to all valid  requirements of law and of any governmental or
municipal  authority  relative  to the  carrying  on by the  Corporation  of its
business;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | immediately notify the Lender in writing of any proposed change of name of the
Corporation or a Subsidiary or of the Corporations or a Subsidiarys
chief place of business;
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | pay all taxes, rates, government fees and dues levied, assessed or imposed upon
it or its property as and when the same become due and payable save and except
where it contests in good faith the validity thereof by proper legal proceedings
and for which provision for payment adequate in the reasonable opinion of the
Lender has been made;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | advise the Lender forthwith upon becoming aware of any Event of Default
hereunder and deliver to the Lender upon request a certificate in form and
substance satisfactory to the Lender signed by a senior officer certifying that
no Event of Default has occurred or, if such is not the case, specifying all
Events of Default and their nature and status;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi) | promptly cure or cause to be cured any defects in the execution or delivery of
any Instrument and at its expense duly execute and deliver or cause to be duly
executed and delivered all documents as the Lender may consider necessary or
desirable for such purposes; and
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vii) | at its cost and expense, upon the request of the Lender, duly execute and
deliver, or cause to be duly executed and delivered, to the Lender such
documents and do or cause to be done such acts as may be necessary or desirable
in the reasonable opinion of the Lender to carry out the purposes of this
Debenture.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Reporting Issuer Status. The Corporation shall maintain its
status as a reporting  issuer not in default  under the laws of the provinces of
Ontario, Alberta and British Columbia;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | Reservation of Common Shares. The Corporation covenants with the Lender that it
will at all times reserve and keep available out of its authorized share capital
and solely for the purpose of conversion as provided in this Debenture, and
conditionally allot to the Lender, such number of Common Shares in the capital
of the Corporation as shall then be issuable upon the due conversion of this
Debenture;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | Authorization of Securities. The Corporation shall ensure that the Common Shares
to be issued upon exercise of the Warrants shall, upon issuance, be duly
authorized and issued as fully paid and non-assessable shares in the capital of
the Corporation, and shall have attributes corresponding in all material
respects to the description thereof set forth in this Debenture;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | Listing of Common Shares. The Corporation shall ensure that the Common Shares to
be issued upon exercise of the Warrants shall be listed and posted for trading
on the Canadian Venture Exchange or such other national securities exchange in
Canada or the United States as the Corporation may reasonably determine;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | Continuous Disclosure. The Corporation shall deliver to the
Lender a copy of all  documents and  materials  required by Canadian  Securities
Laws to be delivered to shareholders of the Corporation  contemporaneously  with
delivery to such shareholders; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | Interest Reserve Account. The Corporation shall establish, and maintain in good
standing until at least April 5, 2002, the Interest Reserve Account and shall
use the Interest Reserve Account for no purpose other than to satisfy its
obligations pursuant to section 1.2 hereof.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 7
EVENTS OF DEFAULT AND REMEDIES

Section 7.1        Events of Default.

The
occurrence of any of the following events shall constitute an Event of Default
under this Debenture:

| | (a) | if default occurs in payment when due of any Principal under this Debenture, or
default occurs in payment when due of any interest payable under this Debenture
and such default in payment of interest unremedied for a period of five (5) days
or more;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | if default  occurs in payment or performance  of any other  Obligation  (whether
arising herein or otherwise) and remains unremedied for a period of 30 days;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | if an event of default occurs under any other Series A Debenture or in payment
or performance of any obligation in excess of $25,000 in favour of any Person
from whom the Corporation or any Subsidiary has borrowed money which would
entitle such third party lender to accelerate repayment of the borrowed money,
and such default is not waived in writing and remains unremedied for a period of
five (5) days;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | if the Corporation commits an act of bankruptcy or becomes insolvent within the
meaning of any bankruptcy or insolvency legislation applicable to it or a
petition or other process for the bankruptcy of the Corporation is filed or
instituted and remains undismissed or unstayed for a period of 45 days or any of
the relief sought in such proceeding (including the entry of an order for relief
against it or the appointment of a receiver, trustee, custodian or other similar
official for it or any substantial part of its property) shall occur;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | if any act, matter or thing is done toward, or any action or proceeding is
launched or taken to terminate the corporate existence of the Corporation,
whether by winding-up, surrender of charter or otherwise;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f) | if the Corporation  ceases to carry on its business or makes or proposes to make
any sale of its  assets in bulk or any sale of its  material  assets  out of the
usual course of its business;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) | if any proposal is made or any petition is filed by or against the Corporation
under any law having for its purpose the extension of time for payment,
composition or compromise of the liabilities of the Corporation or other
reorganization or arrangement respecting its liabilities or if the Corporation
gives notice of its intention to make or file any such proposal or petition
including an application to any court to stay or suspend any proceedings of
creditors pending the making or filing of any such proposal or petition;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (h) | if any receiver, administrator or manager of the property, assets or undertaking
of the Corporation or a substantial part thereof is appointed pursuant to the
terms of any trust deed, trust indenture, debenture or similar instrument or by
or under any judgment or order of any court;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | if any of the Disclosure Documents are false or misleading in any material respect;
| | --- | -----------------------------------------------------------------------------------

| | (j) | if any judgment or order for the payment of money in excess of $50,000 shall be
rendered against the Corporation or any Subsidiary and either (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or
order, or (ii) there shall be any period of 10 consecutive days during which a
stay of enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k) | if any representation or warranty made by the Corporation herein or in any other
Instrument or in any certificate, statement or report furnished in connection
herewith is found to be false or incorrect in any way so as to make it
materially misleading when made or when deemed to have been made; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (l) | if any event occurs with respect to any Subsidiary which, if a like event had
occurred with respect to the Corporation, would have constituted an Event of
Default.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 7.2        Consequences of an Event of Default.

Upon
the occurrence of any Event of Default, all Obligations shall at the option of
the Lender become forthwith due and payable and all of the rights and remedies
hereby conferred shall become immediately enforceable.

ARTICLE 8
GENERAL

Section 8.1        Waiver.

No
act or omission by the Lender in any manner whatever shall extend to or be taken
to affect any provision hereof or any subsequent breach or default or the rights
resulting therefrom save only express waiver in writing. A waiver of default
shall not extend to, or be taken in any manner whatsoever to affect the rights
of the Lender with respect to, any subsequent default, whether similar or not.

Section 8.2        Other Securities.

The
rights of the Lender hereunder shall not be prejudiced nor shall the liabilities
of the Corporation or of any other Person be reduced in any way by the taking of
any other security of any nature or kind whatsoever either at the time of
execution of this Debenture or at any time hereafter.

Section 8.3        No Merger or Novation.

Neither
the taking of any judgment nor the exercise of any power of seizure or sale
shall operate to extinguish the liability of the Corporation to pay the moneys
hereby secured nor shall the same operate as a merger of any covenant herein
contained or of any other Obligation, nor shall the acceptance of any payment or
other security constitute or create any novation.

Section 8.4        Amalgamation.

The
Corporation acknowledges that if it amalgamates with any other corporation or
corporations (a) the term, Corporation, where used herein shall
extend to and include each of the amalgamating corporations and the amalgamated
corporation, and (b) the term, Obligations, where used herein shall
extend to and include the Obligations of each of the amalgamating corporations
and the amalgamated corporation.

Section 8.5        Lender May Remedy Default.

If
the Corporation fails to do anything hereby required to be done by it the Lender
may, but shall not be obliged to, do such thing and all sums thereby expended by
the Lender shall be payable forthwith by the Corporation, but no such
performance by the Lender shall be deemed to relieve the Corporation from any
default hereunder.

Section 8.6        Notices.

Any
notice, direction or other communication to be given under this Debenture shall
be in writing and given by delivering it or sending it by facsimile or other
similar form of recorded communication addressed:

| | (a) | to the Lender at:
| | --- | -----------------

| | (b) | to the Corporation at:
| | --- | ----------------------

| | 40 Centre DriveOrchard ParkNew York14127                                  
| | --------------------------------------------------------------------------
| | Attention:        Chief Financial Officer
Facsimile:        (716) 662-0033

Any such communication
shall be deemed to have been validly and effectively given (i) if personally
delivered, on the date of such delivery if such date is a Business Day and such
delivery was made prior to 4:00 p.m. (Toronto time) and otherwise on the next
Business Day, or (ii) if transmitted by facsimile or similar means of recorded
communication on the Business Day following the date of transmission. Any Party
may change its address for service from time to time by notice given in
accordance with the foregoing and any subsequent notice shall be sent to such
Party at its changed address.

Section 8.7        Receipt.

The
Corporation hereby acknowledges receipt of a true copy of this Debenture.

Section 8.8        Invalidity of any Provisions.

Any provision
of this Debenture or any provisions of the security contemplated hereunder which
is prohibited by the laws of any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition without invalidating the remaining
terms and provisions hereof or thereof and no such invalidity shall affect the
obligation of the Corporation to repay the Obligations.

Section 8.9        Indemnification.

The
Corporation agrees to indemnify the Lender from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever (except by
reason of the gross negligence or wilful misconduct of the Lender or any of its
employees or a material breach by the Lender of any of its covenants contained
herein) which may be imposed on, incurred by, or asserted against the Lender in
connection with this Debenture and arising by reason of any action (including
any action referred to herein) or inaction or omission to do any act legally
required of the Corporation.

Section 8.10        Successors and Assigns, etc.

Subject
to complying with all applicable securities legislation, this Debenture may be
assigned by the Lender upon written notice to the Corporation. This Debenture
and all its provisions shall enure to the benefit of the Lender, its successors
and assigns and shall be binding upon the Corporation, its successors and
assigns. The Lender is the Person entitled to receive the money payable
hereunder and to give a discharge hereof. Presentment, notice of dishonour,
protest and notice of protest hereof are hereby waived.

Section 8.11        Amendments.

This
Debenture may only be amended by a written agreement signed by all of the
parties hereto.

Section 8.12        Counterparts.

This
Debenture may be executed in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of such
counterparts shall together constitute one and the same instrument. Any party
may execute this Debenture by facsimile signature.

IN
WITNESS WHEREOF the Corporation has executed this Debenture as of the 20th day
of April, 2001.

| | RADIANT ENERGY CORPORATION                                             
| | -----------------------------------------------------------------------
| | By:_________________________________
        Authorized Signing Officer

SCHEDULE "A"

CONVERSION NOTICE

TO:        RADIANT ENERGY CORPORATION ( THE "CORPORATION")

The undersigned registered
Lender of the Debenture to which this Conversion Notice is attached hereby
irrevocably elects to exercise $______________________ (must be an integral
multiple of $1,000 unless converting the entire balance of such Debenture)
principal amount of such Debenture to purchase ___________________________
(insert total number of shares to be acquired based on the Conversion Number
applicable as of the date of the Conversion Notice as set forth in Section 2.1)
fully paid and non-assessable common shares in the capital of the Corporation
(the ôCommon Sharesô) and hereby requests that a certificate
representing such Common Shares be issued in the name of and delivered to:

________________________________________________________________________________

________________________________________________________________________________
PLEASE PRINT OR TYPE NAME AND ADDRESS (INCLUDING POSTAL CODE)

________________________________________________________________________________
SOCIAL INSURANCE OR OTHER TAXPAYER IDENTIFICATION NUMBER

DATED this ____ day of ________________, 200___.

| | _________________________________________
Print name as it appears on Debenture
| | -------------------------------------------------------------------------------
| | _________________________________________
Signature