| NORTHCORE      TECHNOLOGIES INC. | Series      (L) Debenture SubscriptionAgreement |
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| TO SUBSCRIBE, EACH SUBSCRIBER      MUST RETURN THE FOLLOWING:a.            □ Duly completed and      executed Subscription Agreement (complete Subscriber Details and Signature      Page):b.            □ Subscription Funds by      direction, certified cheque, bank draft, money order or wire      transfer;c.            □ Duly completed and      executed Accredited Investor Certificate (attached as schedule “D”);      andd.            □ Duly completed and      executed Offshore Subscriber Certificate (attached as schedule “E”, if      applicable). |
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| TO: | Northcore      Technologies Inc.  (the “Corporation”)                                                                                                                                                                                                                                                                                                                                   |
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| RE: | Offering      of Series (L) secured subordinate convertible debentures convertible into      units of the Corporation at a conversion price of $0.10 per unit. Each      unit is to consist of one common share in the capital of the Corporation      and one common share purchase warrant, with an exercise price of $0.15,      exercisable into one common share in the capital of the      Corporation. |

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|  _____________________________________     |   |  ______________________________________    |
|-------------------------------------------------|--------|-------------------------------------------------|
| Signature      of Subscriber (if an individual) |   | Name      of Subscriber (if an individual)      |
|                                            |   |                                            |
| _____________________________________           |   | Per:                                            | ______________________________________ |
| Name      of Subscriber (if an individual)      |   | (signature      of authorized representative)   |
|                                            |   |                                            |
|                                            |   | ______________________________________          |
|                                            |   | Name      and Title of AuthorizedRepresentative |

|   | NORTHCORE      TECHNOLOGIES INC. |
|--------|----------------------------------|
|   | Per:                             |   |
|   |                             |   |

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|   | ii) | the      volume weighted average trading price of the Common Shares over the 20 day      trading period ending at the close of business on the day prior to the      date on which the interest payment isdue. |
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| Issuer:                 | Northcore      Technologies Inc. (“Northcore” or the “Corporation”)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
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|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
| Offering:               | Offering      of up to $525,000      principal amount of Series (L) Secured Subordinate Convertible Debentures      (the “Debentures”) to be issued by way of private placement exemptions      from prospectus and registration requirements in the Provinces of Ontario      and Alberta and such applicable Non-Canadian/Non-U.S. jurisdictions,      subject to the receipt of any applicable regulatory and stock exchange      approvals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
| Offered      Securities | The Debentures will have the      following material terms:  a)    The debentures will be issued at      par in integral multiples of $1,000.  b)    At any      time up to and including the Maturity Date (as defined below), all or any      portion of the principal amount of the Debentures will be convertible      (“Conversion”) into one unit (a “Unit”) at the option of the holder at a      conversion price of $0.10 per      Unit, subject to adjustments for any stock splits, consolidations, or      other capital reorganizations, extraordinary dividends or distributions      among      other anti-dilution provisions providing adjustment for events that will      affect all security holders equally (the “Conversion Price”).      Holders converting their Debentures will receive accrued and unpaid      interest thereon to the date ofconversion.   c)    Each      Unit is to consist of one common share (“Common Share”) and one common      share purchase warrant (“Warrant”). |   |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
| Warrants:               | Each      Warrant is exercisable into one Common Share at an exercise price      of  $0.15, any time prior to      the earlier of (i) 5 years from the Closing Date (as defined below); and      (ii) the date that is sixty (60) days following the issuance of a notice      by Northcore to holders confirming that the closing price of the Common      Shares on the Toronto Stock Exchange was greater than or equal to $0.36 for 10 consecutive      trading days, adjusted for any stock splits and/or share consolidations,      at any time following Closing of the Issue.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |

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| Interest:                       | The      Debentures will bear interest at a rate of 10% per annum, payable      annually on the anniversary of the Closing Date in each year commencing      one year from the Closing Date.  In lieu of cash payments from      interest owing in respect of the period commencing on the Closing Date and      ending on the date that is two (2) years from Closing Date, Northcore will      issue Common Shares calculated on the basis of A÷B, where:  A =      the amount of accrued interest payable, in dollars; and B =      the greater of:i)    $0.10; andii)    the      volume-weighted average trading price of the Common Shares over the 20 day      trading period ending at the close of business on      the day prior to the date on which the interest payment is      due. |   |
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|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Maturity      Date:             | Five      years from the Closing Date (as defined below).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Redemption:                     | The      Debentures will not be redeemable before Maturity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Purchase      for Cancellation: | Northcore      will have the right at any time to purchase the Debentures in the market,      by tender or by private contract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Rank:                           | The      Debentures will be secured against all of Northcore’s assets and will be      subordinate in right of payment of principal and interest to all senior      debt obligations of Northcore (including bank debt) as at the Closing      Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Use      of Proceeds:           | The      net proceeds from this offering will be used to fund working capital      requirements and for general corporate purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Listing:                        | The      Debentures and Warrants will not be listed. Northcore Shares are listed on      the TSX under the symbol “NTI”.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Resale      Restrictions:       | The      Corporation will be a “reporting issuer” on the Closing Date, such that it      is expected that the Debentures, Common Shares, Warrants and common shares      issuable upon the exercise of the Warrants, will be subject to a      restricted period expiring four months and one day following the Closing      Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| Broker      Fee:                | 4% of      gross proceeds of the Offering.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| Closing      Date:              | On or      before March 28, 2008 or such earlier or later date as the Corporation may      determine.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |

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| 1. | Representations and      Warranties |
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|   | (a) | Authorization and      Effectiveness.  If the Subscriber is a corporation, the      Subscriber is a valid and subsisting corporation, has the necessary      corporate capacity and authority to execute and deliver this subscription      agreement and to observe and perform its covenants and obligations      hereunder and has taken all necessary corporate action in respect      thereof.  If the Subscriber is a partnership, syndicate or other      form of unincorporated organization, the Subscriber has the necessary      legal capacity and authority to execute and deliver this subscription      agreement and to observe and perform its covenants and obligations      hereunder and has obtained all necessary approvals in respect      thereof.  If the Subscriber is a natural person, he or she has      obtained the age of majority and is legally competent to execute this      subscription agreement and to take all actions required pursuant      thereto. |
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|   | (b) | Residence.  The      Subscriber or any beneficial purchaser on whose behalf the Subscriber is      acting hereunder is a resident of, or otherwise subject to, the      jurisdiction referred to under “Name and Address of Subscriber” on the      first page of this subscription agreement, which address is the residence      or place of business of the Subscriber or such beneficial purchaser and      has not been created or used solely for the purpose of acquiring      Debentures, and neither the Subscriber or such beneficial      purchaser: |
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|   | (i) | is  (or  is      purchasing Debentures for the account or benefit of) a U.S.      Person; |
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|   | (ii) | was      offered the Debentures in the United States;and |
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|   | (iii) | executed      or delivered this agreement in the United  States. |
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|   | (c) | Investment      Intent.  The Subscriber on its own behalf and on behalf      of any beneficial purchaser on whose behalf the Subscriber is acting      hereunder is acquiring Debentures to be held for investment only and not      with a view to resale ordistribution. |
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|   | (d) | Prospectus      Exemptions.  The Subscriber or any beneficial purchaser      on whose behalf the Subscriber is acting hereunder acknowledges and agrees      that: |
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|   | (e) | Offering      Documents.  The Subscriber has not received, nor does the      Subscriber need to receive, any document purporting to describe the      business and affairs of the Corporation that has been prepared for      delivery to and review by prospective investors (including a prospectus or      offering memorandum) so as to assist those investors to make an investment      decision in respect of securities being sold in a distribution of      securities of the Corporation. |
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|   | (f) | No Solicitation or      Advertising.  The Subscriber on its own behalf and on      behalf of any beneficial purchaser on whose behalf the Subscriber is      acting hereunder acknowledges that it has not purchased the Debentures as      a result of any general solicitation or general advertising, including      advertisements, articles, notices or other communications published in any      newspaper, magazine or similar media or broadcast over radio or television      or other telecommunications (including electronic display), or any seminar      or meeting whose attendees have been invited by any general solicitation      or general advertising. |
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|   | (g) | No Undisclosed      Information.  The Debentures are not being purchased by      the Subscriber as a result of any material information concerning the      Corporation that has not been publicly disclosed and the Subscriber’s      decision to tender this offer and acquire Debentures has not been made as      a result of any verbal or written representation as to fact or otherwise      made by or on behalf of the Corporation, or any other person and is based      entirely upon the currently available public information concerning the      Corporation. |
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|   | (h) | Investment      Suitability.  The Subscriber and any beneficial purchaser      on whose behalf the Subscriber is acting hereunder have such knowledge and      experience in financial and business affairs as to be capable of      evaluating the merits and risks of the investment hereunder in Debentures      and Warrants (and the Underlying Securities in respect thereof) and are      able to bear the economic risk of loss of such investment.  The      Subscriber and any beneficial purchaser on whose behalf the Subscriber is      acting hereunder acknowledge and agree that the Subscriber and such      beneficial purchaser are responsible for obtaining such legal advice as      the Subscriber or such beneficial purchaser considers appropriate in      connection with the execution, delivery and performance by the Subscriber      of this agreement and the transactions contemplated    hereunder. |
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|   | (i) | Subscription      Agreement.  The Subscriber on its own behalf and on      behalf of any beneficial purchaser on whose behalf the Subscriber is      acting hereunder has read and understands the contents of this agreement      (including the Schedules hereto) and agrees to be legally bound      hereby. |
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|   | (j) | No Conversion or Transfer of      Debentures or Underlying Securities in U.S.  The      Subscriber on its own behalf and on behalf of any beneficial purchaser on      whose behalf the Subscriber is acting hereunder acknowledges that the      Debentures, Warrants and Underlying Securities may not be offered, sold or      otherwise transferred to persons in the United States or to U.S. Persons      and may not be exercised in the United States or by or on behalf of a U.S.      Person and the Subscriber and such beneficial purchaser understand that      certificates representing the Debentures, Warrants and Underlying      Securities issued to it will soindicate. |
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|   | (k) | Ontario Alberta and British      Columbia Subscribers.  If the Subscriber or any      beneficial purchaser on whose behalf the Subscriber is acting hereunder is      a resident of Ontario, Alberta, or British Columbia, the Subscriber or its      disclosed principal is an “accredited investor” within the meaning of      National Instrument 45-106 - Prospectus and Registration Exemptions and      falls within one or more of the sub-paragraphs of the definition of      “Accredited Investor” set out in Schedule “D” hereto and the Subscriber or      such beneficial purchaser has concurrently executed and delivered to the      Corporation a certificate in the form attached as Schedule “D” (the      Subscriber having checked the applicable  subparagraph(s)). |
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|   | (l) | Non-Canadian / Non-US      Subscriber. If the Subscriber, or any beneficial purchaser for whom      it is acting, is a resident of a non-Canadian/non-US jurisdiction, the      Subscriber and its disclosed principal, if applicable, is recognized by      the securities regulatory authority of such jurisdiction as an exempt      subscriber, the subscription for the Debentures by the Subscriber, or such      beneficial purchaser, does not contravene any of the applicable securities      legislation in the jurisdiction in which the Subscriber or such beneficial      purchaser resides and does not give rise to any obligation of the      Corporation to prepare and file a prospectus or similar document or to      register the Debentures and Warrants, or to be registered with or to file      any report or notice with any governmental or regulatory authority, and      the Subscriber or its disclosed principal has concurrently executed and      delivered to the Corporation a certificate in the form attached as      Schedule “E”. |
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|   | (m) | The      execution and delivery of this subscription agreement, the performance and      compliance with the terms hereof, the subscription for the Debentures and      the completion of the transactions described herein by the Subscriber will      not result in any material breach of, or be in conflict with or constitute      a material default under, or create a state of facts which, after notice      or lapse of time, or both, would constitute a material default under any      term or provision of the constating documents, by-laws or resolutions of      the Subscriber, the Applicable Securities Laws or any other laws      applicable to the Subscriber, any agreement to which the Subscriber is a      party, or any judgment, decree, order, statute, rule or regulation      applicable to the Subscriber. |
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|   | (n) | The      Subscriber is subscribing for the Debentures as principal for its own      account and not for the benefit of any other person (within the meaning of      Applicable Securities Laws) and not with a view to the resale or      distribution of all or any of the Debentures, Warrants or Underlying      Securities or if it is not subscribing as principal, it acknowledges that      the Corporation may be required by law to disclose to certain regulatory      authorities the identity of each beneficial purchaser of the Debentures      for whom it is acting. |
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|   | (o) | In      the case of a subscription for the Debentures by the Subscriber acting as      trustee or agent (including, for greater certainty, a portfolio manager or      comparable adviser) for a principal, the Subscriber is duly authorized to      execute and deliver this subscription agreement and all other necessary      documentation in connection with such subscription on behalf of each such      beneficial purchaser, each of whom is subscribing as principal for its own      account, not for the benefit of any other person and not with a view to      the resale or distribution of the Debentures, Warrants or Underlying      Securities, and this subscription agreement has been duly authorized,      executed and delivered by or on behalf of and constitutes a legal, valid      and binding agreement of, such principal, and the Subscriber acknowledges      that the Corporation may be required by law to disclose the identity of      each beneficial purchaser for whom the Subscriber is    acting. |
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|   | (p) | In      the case of a subscription for the Debentures by the Subscriber acting as      principal, this subscription agreement has been duly authorized, executed      and delivered by, and constitutes a legal, valid and binding agreement of,      the Subscriber.  This subscription agreement is enforceable in      accordance with its terms against the Subscriber and any beneficial      purchasers on whose behalf the Subscriber is  acting. |
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|   | (q) | There      is no person acting or purporting to act in connection with the      transactions contemplated herein who is entitled to any brokerage or      finder’s fee.  If any person establishes a claim that any such      fee or other compensation is payable in connection with this subscription      for the Debentures, the Subscriber covenants to indemnify and hold      harmless the Corporation with respect thereto and with respect to all      costs reasonably incurred in the defence  thereof. |
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|   | (r) | The      Subscriber is not, with respect to the Corporation or any of its      affiliates, a control person (as defined in Applicable Securities      Laws). |
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|   | (s) | If      required by Applicable Securities Laws or the Corporation, the Subscriber      will execute, deliver and file or assist the Corporation in filing such      reports, undertakings and other documents with respect to the issue of the      Debentures, Warrants or Underlying Securities as may be required by any      securities commission, stock exchange or other regulatory      authority. |
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|   | (t) | The      Subscriber acknowledges that no representation has been made respecting      the applicable hold periods imposed by the Applicable Securities Laws or      other resale restrictions applicable to the Debentures, Warrants or      Underlying Securities which restrict the ability of the Subscriber (or      others for whom it is contracting hereunder) to resell such securities,      that the Subscriber (or others for whom it is contracting hereunder) is      solely responsible to find out what these restrictions are and the      Subscriber is solely responsible (and the Corporation is not in any way      responsible) for compliance with applicable resale restrictions and the      Subscriber is aware that it (or beneficial purchasers for whom it is      contracting hereunder) may not be able to resell such securities except in      accordance with limited exemptions under the Applicable Securities Laws      and other applicable laws. |
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|   | (u) | No      person has made any written or oral  representations: |
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|   | (i) | that      any person will resell or repurchase the Debentures, Warrants or the      Underlying Securities; |
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|   | (iii) | as      to the future price or value of the Debentures, Warrants or the Underlying      Securities. |
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|   | (v) | The      Subscriber, on its own behalf and, if applicable, on behalf of others for      whom it is acting hereunder, acknowledges and agrees as      follows: |
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|   | (i) | No      securities commission, agency, governmental authority, regulatory body,      stock exchange or other regulatory body has reviewed or passed on the      merits of the Debentures, Warrants or the Underlying      Securities. |
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|   | (ii) | The      Subscriber’s ability to transfer the Debentures, Warrants or Underlying      Securities is limited by, among other things, Applicable Securities      Laws. |
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|   | (iii) | The      certificates representing the Debentures and Warrants will bear, as of the      Closing Date, legends substantially in the following form and with the      necessary information inserted: |
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|   | (iv) | In      the event that holders of the Debentures or Warrants convert such      Debentures, or exercise such warrants, prior to the expiry of the hold      periods applicable to the Underlying Securities, the Underlying      Securities, as applicable, will bear legends substantially in the      following form and with the necessary information  inserted: |
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|   | (v) | In      addition, the Common Shares will also bear a legend substantially in the      following form: |
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|   | (vi) | There      is no government or other insurance covering the Debentures, Warrants or      Underlying Securities. |
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|   | (vii) | There      are risks associated with the purchase of the Debentures, Warrants or the      Underlying Securities. |
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| 2. | Reliance Upon Representations,      Warranties and Covenants. The Subscriber acknowledges that the      representations and warranties contained herein are made by the Subscriber      with the intention that they may be relied upon by the Corporation in      determining the Subscriber’s eligibility to purchase Debentures under      Applicable Securities Laws.  The Subscriber agrees that by      accepting delivery of the Debentures and the Warrants on the Closing Date,      the Subscriber will be representing and warranting that the foregoing      representations and warranties are true and correct as at the Closing Time      with the same force and effect as if they had been made by the Subscriber      at the Closing Time and that they will survive the purchase by the      Subscriber of Debentures and will continue in full force and effect      notwithstanding any subsequent disposition by the Subscriber of such      Debentures. |
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| 3. | Personal      Information.  The Subscriber and (if applicable) each      disclosed principal understands that the Corporation may be required to      provide any one or more of the Canadian securities regulators, stock      exchanges, or other regulatory      agencies or the Corporation’s transfer agent with the name, residential      address, telephone number and e-mail address of the Subscriber and (if      applicable) any disclosed principals as well as information regarding the      number, aggregate purchase price and type of Debenture, Underlying      Securities and/or Common Shares purchased under this subscription      agreement and the identities of any beneficial purchasers of the,      Debentures, Underlying Securities and/or Common Shares (collectively, the      "Information"),      and may make any other filings of the Information as the Corporation or      the Corporation’s counsel deems appropriate. In addition, the Information      may be used by the Corporation for the purposes      of: |
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|   | (a) | completing      the purchase of the Debentures pursuant to this subscription      agreement; |
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|   | (b) | complying      with all corporate governance and continuous disclosure requirements under      applicable securities laws; and |
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|   | (c) | contacting      the Subscriber in its capacity as aninvestor. |
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|   | Administrative      Assistant to the Director of CorporateFinance |
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|   | Ontario      Securities Commission |
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|   | 18th      Floor, 20 Queen Street West |
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|   | Toronto,      Ontario  M5H 2S8 |
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|   | Telephone:      (416) 597-0681 |
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| 4. | Proceeds of Crime. The      funds representing the Subscription Amount which will be advanced by the      Subscriber to the Corporation hereunder will not represent proceeds of      crime for the purposes of the Proceeds of Crime (Money Laundering) Act      (Canada) (the "PCMLA") and the      Subscriber acknowledges that the Corporation may in the future be required      by law to disclose the Subscriber’s name and other information relating to      this Subscription Agreement and the Subscriber's subscription hereunder,      on a confidential basis, pursuant to the PCMLA. To the best of its      knowledge (a) none of the subscription funds to be provided by the      Subscriber (i) have been or will be derived from or related to any      activity that is deemed criminal under the law of Canada, the United      States of America, or any other jurisdiction, or (ii) are being tendered      on behalf of a person or entity who has not been identified to the      Subscriber, and (b) it shall promptly notify the Corporation if the      Subscriber discovers that any of such representations ceases to be true,      and to provide the Corporation with appropriate information in connection      therewith. |
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| _____  | (a)    | a      Canadian financial institution, or a Schedule III    bank;                                                                                                                                                                                                                                   |
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|   |   |                                                                                                                                                                                                                                                                                                     |
| _____  | (b)    | the      Business Development Bank of Canada incorporated under the Business Development Bank of      Canada Act (Canada);                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                     |
| _____  | (c)    | a      subsidiary of any person referred to in paragraphs (a) to (b), if the      person owns all of the voting securities of the subsidiary, except the      voting securities required by law to be owned by directors of that      subsidiary;                                                   |
|   |   |                                                                                                                                                                                                                                                                                                     |
| _____  | (d)    | a      person registered under the securities legislation of a jurisdiction of      Canada as an adviser or dealer, other than a person registered solely as a      limited market dealer under one or both of the Securities Act      (Ontario) or the Securities Act      (Newfoundland and Labrador); |
|   |   |                                                                                                                                                                                                                                                                                                     |
| _____  | (e)    | an      individual registered or formerly registered under the securities      legislation of a jurisdiction of Canada, as a representative of a person      referred to in paragraph (d);                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                     |
| _____  | (f)    | the      Government of Canada or a jurisdiction of Canada, or any crown      corporation, agency or wholly owned entity of the Government of Canada or      a jurisdiction of Canada;                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                     |
| _____  | (g)    | a      municipality, public board or commission in Canada and a metropolitan      community, school board, the Comité de gestion de la taxe scolaire de      l'île de Montréal or an intermunicipal management board in      Québec;                                                 |
|   |   |                                                                                                                                                                                                                                                                                                     |
| _____  | (h)    | any      national, federal, state, provincial, territorial or municipal government      of or in any foreign jurisdiction, or any agency of that      government;                                                                                                                                        |

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| _____  | (i)    | a      pension fund that is regulated by either the Office of the Superintendent      of Financial Institutions (Canada) or a pension commission or similar      regulatory authority of a jurisdiction of Canada;                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (j)    | an      individual who, either alone or with a spouse, beneficially owns, directly      or indirectly, financial assets having an aggregate realizable value that      before taxes, but net of any related liabilities, exceeds      $1,000,000;                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (k)    | an      individual whose net income before taxes exceeded $200,000 in each of the      two most recent calendar years or whose net income before taxes combined      with that of a spouse exceeded $300,000 in each of the two most recent      calendar years and who, in either case, reasonably expects to exceed that      net income level in the current calendar year;                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (l)    | an      individual who, either alone or with a spouse, has net assets of at least      $5,000,000;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (m)    | a      person, other than an individual or investment fund, that has net assets      of at least $5,000,000 as shown on its most recently prepared financial      statements;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (n)    | an      investment fund that distributes or has distributed its securities only      to (i)    a      person that is or was an accredited investor at the time of the      distribution, (ii)   a person that      acquires or acquired securities in the circumstances referred to under      sections 2.10 [Minimum      Amount Investment] and 2.19 [Additional Investment in      Investment Funds] of National Instrument 45-106, or (iii)  a person described      in paragraph (i) or (ii) that acquires or acquired securities under      section 2.18 [Investment      Fund Reinvestment] of National Instrument45-106; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (o)    | an      investment fund that distributes or has distributed securities under a      prospectus in a jurisdiction of Canada for which the regulator or, in      Québec, the securities regulatory authority, has issued a      receipt;                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (p)    | a      trust company or trust corporation registered or authorized to carry on      business under the Trust      and Loan Companies Act (Canada) or under comparable legislation in      a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a      fully managed account managed by the trust company or trust corporation,      as the case may be;                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (q)    | a      person acting on behalf of a fully managed account managed by that person,      if that person (i)    is      registered or authorized to carry on business as an adviser or the      equivalent under the securities legislation of a jurisdiction of Canada or      a foreign jurisdiction, and (ii)    in      Ontario, is purchasing a security that is not a security of an investment      fund;                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (r)    | a      registered charity under the Income Tax Act (Canada)      that, in regard to the trade, has obtained advice from an eligibility      adviser or an adviser registered under the securities legislation of the      jurisdiction of the registered charity to give advice on the securities      being traded;                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| _____  | (s)    | an      entity organized in a foreign jurisdiction that is analogous to any of the      entities referred to in paragraphs (a) through (d) or paragraph (i)      in form andfunction;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

| _____  | (t)    | a      person in respect of which all of the owners of interests, direct,      indirect or beneficial, except the voting securities required by law to be      owned by directors, are persons that are accredited    investors;                                                                                                                                 |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                             |
| _____  | (u)    | an      investment fund that is advised by a person registered as an adviser or a      person that is exempt from registration as an adviser;  or                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                             |
| _____  | (v)    | a      person that is recognized or designated by the securities regulatory      authority or, except in Ontario and Québec, the regulator as i.    an      accredited investor, or ii.    an      exempt purchaser in Alberta or British Columbia after National Instrument      45-106 comes intoforce. |

|   | (a) | one      of them is the subsidiary of the other,or |
|--------|-----|----------------------------------------------------|

|   | (b) | each      of them is controlled by the sameperson. |
|--------|-----|----------------------------------------------------|

|   | (c) | an      association governed by the Cooperative Credit      Associations Act (Canada) or a central cooperative credit society      for which an order has been made under section 473(1) of that Act;      or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a      bank named in Schedule I or II of the Bank Act (Canada), loan      corporation, trust company, trust corporation, insurance company, treasury      branch, credit union, caisse populaire, financial services cooperative, or      league that, in each case, is authorized by an enactment of Canada or a      jurisdiction of Canada to carry on business in Canada or a jurisdiction in      Canada. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | a      sufficient number of any of the securities of an issuer so as to affect      materially the control of the issuer,or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (f) | more      than 20% of the outstanding voting securities of an issuer except where      there is evidence showing that the holding of those securities does not      affect materially the control of theissuer. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | a      member of the board of directors of a company or an individual who      performs similar functions for a company,and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (h) | with      respect to a person that is not a company, an individual who performs      functions similar to those of a director of a  company. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a      person that is registered as an investment dealer or in an equivalent      category of registration under the securities legislation of the      jurisdiction of a purchaser and authorized to give advice with respect to      the type of security being distributed;and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (j) | in      Saskatchewan or Manitoba, also means a lawyer who is a practising member      in good standing with a law society of a jurisdiction of Canada or a      public accountant who is a member in good standing of an institute or      association of chartered accountants, certified general accountants or      certified management accountants in a jurisdiction of Canada provided that      the lawyer or public accountant mustnot: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | have      a professional, business or personal relationship with the issuer, or any      of its directors, executive officers, founders of control persons;      and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | have      acted for or been retained personally or otherwise as an employee,      executive officer, director, associate or partner of a person that has      acted for or been retained by the issuer or any of its directors,      executive officers, founders or control persons within the previous 12      months. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | a      chair, vice-chair or president, |
|--------|-----|----------------------------------------|

|   | (l) | a      vice-president in charge of a principal business unit, division, or      function including sales, finance orproduction, |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | an      officer of the issuer or any of its subsidiaries and who performs a      policy-making function in respect of the issuer,  or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | performing      a policy-making function in respect of the  issuer. |
|--------|-----|---------------------------------------------------------------------|

|   | (o) | cash; |
|--------|-----|-------|

|   | (p) | securities;      or |
|--------|-----|---------------------|

|   | (q) | a      contract of insurance, a deposit or an evidence of a deposit that is not a      security for the purposes of securities  legislation; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | acting      alone, in conjunction, or in concert with one or more persons, directly or      indirectly, takes the initiative in founding, organizing or substantially      reorganizing the business of the issuer,and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | at      the time of the trade is actively involved in the business of the      Issuer. |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (t) | whose      primary purpose is to invest money provided by its security      holders; |
|--------|-----|--------------------------------------------------------------------------------------|

----

|   | (u) | that      does not invest: |
|--------|-----|----------------------------|

|   | (i) | for      the purpose of exercising or seeking to exercise control of an issuer,      other than an issuer that is a mutual fund or a non-redeemable investment      fund, or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | for      the purpose of being actively involved in the management of any issuer in      which it invests, other than an issuer that is a mutual fund or a      non-redeemable investment fund, and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | that      is not a mutual fund. |
|--------|-----|---------------------------------|

|   | (w) | an      individual; |
|--------|-----|---------------------|

|   | (x) | a      corporation; |
|--------|-----|---------------------|

|   | (y) | a      partnership, trust, fund and an association, syndicate, organization or      other organized group of person, whether incorporated or not;      and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z) | an      individual or other person in that person's capacity as a trustee,      executor, administrator, or personal or other legal      representative. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aa) | liabilities      incurred or assumed for the purpose of financing the acquisition or      ownership of financial assets, or |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

|   | (bb) | liabilities      that are secured by financialassets. |
|--------|------|-------------------------------------------------------|

|   | (cc) | is      married to another individual and is not living separate and apart within      the meaning of the Divorce Act (Canada),      from the other individual; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (dd) | is      living with another individual in a marriage-like relationship, including      a marriage-like relationship between individuals of the same gender;      or |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ee) | in      Alberta, is an individual referred to in paragraph (a) or (b), or is in an      adult interdependent partner within the meaning of the Adult Interdependent      Relationships Act (Alberta). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ff) | the      first person, directly or indirectly, beneficially owns or exercises      control or direction over securities of the second person carrying votes      which, if exercised, would entitle the first person to elect a majority of      the directors of the second person, unless that first person holds the      voting securities only the secure anobligation; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (gg) | the      second person is a partnership, other than a limited partnership, and the      first person holds more than 50% of the interests of the partnership;      or |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (hh) | the      second person is a limited partnership and the general partner of the      limited partnership is the firstperson. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

| If      a corporation, partnership or other entity: | If      an individual:           |
|-----------------------------------------------------|----------------------------------|
|                                                |                             |
| __________________________________________          |                             | ______________________________________________ |
| (Print      Name of Subscriber)                     | (Print      Name)                |
|                                                |                             |
| __________________________________________          |                             | ______________________________________________ |
| (Signature      of Authorized Signatory)            | (Signature)                      |
|                                                |                             |
| __________________________________________          |                             | ______________________________________________ |
| (Name      and Position of Authorized Signatory)    | (Jurisdiction      of Residence) |
|                                                |                             |
| __________________________________________          |                             | ______________________________________________ |
| (Jurisdiction      of Residence)                    | (Print      Name of Witness)     |
|                                                |                             |
| __________________________________________          |                             | ______________________________________________ |
|                                                | (Signature      of Witness)      |

----

|   | (a) | we,      and (if applicable) any other subscriber for whom we are contracting      hereunder, are: |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (i) | a      subscriber that is recognized by the securities regulatory authority in      the jurisdiction in which we are resident, or otherwise subject to the      securities laws of such jurisdiction, as an exempt subscriber and are      purchasing the Debenture(s) as principal for our, or (if applicable) each      such other subscriber’s, own account, and not for the benefit of any other      person, for investment only and not with a view to resale or distribution;      or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | a      subscriber which is purchasing the Debenture(s) pursuant to an exemption      from any prospectus or securities registration requirements (particulars      of which are enclosed herewith) available to us and the Corporation, and      any such other subscriber, under applicable securities laws of our      jurisdiction of residence or to which we and any such other subscriber are      otherwise subject to, and we and any such other subscriber shall deliver      to the Corporation such further particulars of the exemption and our      qualification thereunder as the Corporation may reasonably      request; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      purchase of the Debenture(s) by us, and (if applicable) each such other      subscriber, does not contravene any of the applicable securities laws in      such jurisdiction and does not trigger: (i) any obligation to prepare and      file a prospectus, an offering memorandum or similar document, or any      other ongoing reporting requirements with respect to such purchase or      otherwise; or (ii) any registration or other obligation on the part of the      Corporation; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | we,      and (if applicable) any other subscriber for whom we are contracting      hereunder will not sell or otherwise dispose of any Debentures, Underlying      Securities or Common Shares, except in accordance with applicable Canadian      securities laws and in accordance with the rules and regulations of the      TSX, and if we, or (if applicable) such beneficial subscriber, sell or      otherwise dispose of any Debentures, Underlying Securities or Common      Shares, to a person other than a resident of Canada or the United States ,      we, and (if applicable) such beneficial subscriber, will obtain from such      subscriber representations, warranties and covenants in the same form as      provided in this Schedule “E” and shall comply with such other      requirements as the Corporation may reasonably  require. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | _____________________________________________ |
|--------|-----------------------------------------------|
|   | (Signature      of Subscriber)                |
|   |                                          | _____________________________________________ |
|   | (Print      Name)                             |