Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Carbiz Inc. - Exhibit 10.6

WARRANT

  
    
      
        THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES
          ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED
          STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”),
          OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THESE SECURITIES
          MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS SUCH
          SECURITIES ARE REGISTERED UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES
          LAWS OR SUCH SECURITIES ARE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
          IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT
          OR ANY APPLICABLE STATE SECURITIES LAW AND THE COMPANY WILL BE PROVIDED
          WITH AN OPINION OF COUNSEL IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY
          OR OTHER SUCH INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT
          SUCH EXEMPTIONS ARE AVAILABLE.

        WITHOUT COMPLIANCE WITH ALL APPLICABLE CANADIAN SECURITIES
          LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT
          BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED IN CANADA OR
          TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL THE DATE THAT IS
          FOUR MONTHS AND ONE DAY FROM THE DATE OF ISSUANCE OF THIS SECURITY.
        

      

    

  

CARBIZ INC. 

Warrant To Purchase Common Shares 

	Warrant No.: 	Number of Shares: 1,000,000

Date of Issuance: August 31, 2007 

Carbiz Inc., an Ontario, Canada corporation (the
“Company”), hereby certifies that, for Ten United States Dollars ($10.00)
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Trafalgar Capital Specialized Investment Fund,
Luxembourg, (“Trafalgar”), the registered holder hereof or its permitted
assigns, is entitled, subject to the terms set forth below, to purchase from the
Company upon surrender of this Warrant, at any time or times on or after the
date hereof, but not after 11:59 P.M. Eastern Time on the Expiration Date (as
defined herein) one million (1,000,000) fully paid and nonassessable Common
Shares (as defined herein) of the Company (the “Warrant Shares”) at the
exercise price per share provided in Section 1(b) below or as subsequently
adjusted; provided, however, that in 

no event shall the holder be entitled to exercise this Warrant
for a number of Warrant Shares in excess of that number of Warrant Shares which,
upon giving effect to such exercise, would cause the aggregate number of Common
Shares beneficially owned by the holder and its affiliates to exceed 4.99% of
the outstanding Common Shares following such exercise, except within sixty (60)
days of the Expiration Date. For purposes of the foregoing proviso, the
aggregate number of Common Shares beneficially owned by the holder and its
affiliates shall include the number of Common Shares issuable upon exercise of
this Warrant with respect to which the determination of such proviso is being
made, but shall exclude Common Shares which would be issuable upon (i) exercise
of the remaining, unexercised Warrants beneficially owned by the holder and its
affiliates and (ii) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company beneficially owned by the holder
and its affiliates (including, without limitation, any convertible notes or
preferred stock) subject to a limitation on conversion or exercise analogous to
the limitation contained herein. Except as set forth in the preceding sentence,
for purposes of this paragraph, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended. For purposes of this Warrant, in determining the number of outstanding
Common Shares a holder may rely on the number of outstanding Common Shares as
reflected in (1) the Company’s most recent Form 10-QSB or Form 10-KSB, or such
comparable form as the case may be, (2) a more recent public announcement by the
Company or (3) any other notice by the Company or its transfer agent setting
forth the number of Common Shares outstanding. Upon the written request of any
holder, the Company shall promptly, but in no event later than one (1) Business
Day (as defined below) following the receipt of such notice, confirm in writing
to any such holder the number of Common Shares then outstanding. In any case,
the number of outstanding Common Shares shall be determined after giving effect
to the exercise of Warrants (as defined below) by such holder and its affiliates
since the date as of which such number of outstanding Common Shares was
reported. 

          Section
1. 

                    (a)     
This Warrant is the Common Shares purchase warrant (the “Warrant”) issued
pursuant to a secured convertible debenture dated August 31, 2007 by and between
the Company and Trafalgar (the “Convertible Debenture”). 

                    (b)      Definitions.
The following words and terms as used in this Warrant shall have the following
meanings: 

                              (i)     
“Approved Stock Plan” means any employee benefit plan which has been
approved by the Board of Directors of the Company, pursuant to which the
Company’s securities may be issued to any employee, officer or director for
services provided to the Company. 

                              (ii)      “Business
Day” means any day other than Saturday, Sunday or other day on which
commercial banks in the City of New York are authorized or required by law to
remain closed. 

                              (iii)     
“Closing Bid Price” means the closing bid price of Common Shares as
quoted on the Principal Market (as defined below) (as reported by Bloomberg
Financial Markets (“Bloomberg”) through its “Volume at Price” function).

2 

                              (iv)      “Common
Shares” means (i) the Company’s Common Shares, no par value per share, and
(ii) any capital stock into which such Common Shares shall have been changed or
any capital stock resulting from a reclassification of such Common Shares. 

                              (v)     
“Excluded Securities” means, provided such security is issued at a price
which is greater than or equal to the arithmetic average of the Closing Bid
Prices of the Common Shares for the ten (10) consecutive trading days
immediately preceding the date of issuance, any of the following: (a) any
issuance by the Company of securities in connection with a strategic partnership
or a joint venture (the primary purpose of which is not to raise equity
capital), (b) any issuance by the Company of securities as consideration for a
merger or consolidation or the acquisition of a business, product, license, or
other assets of another person or entity and (c) options to purchase Common
Shares, provided (I) such options are issued after the date of this Warrant to
employees of the Company within thirty (30) days of such employee’s starting his
employment with the Company, and (II) the exercise price of such options is not
less than the Closing Bid Price of the Common Shares on the date of issuance of
such option. 

                              (vi)      “Expiration
Date” means the date three (3) years from the Issuance Date of this Warrant
or, if such date falls on a Saturday, Sunday or other day on which banks are
required or authorized to be closed in the City of New York or the State of New
York or on which trading does not take place on the Principal Exchange or
automated quotation system on which the Common Shares is traded (a
“Holiday”), the next date that is not a Holiday. 

                              (vii)      “Issuance
Date” means the date hereof. 

                              (viii)     
“Options” means any rights, warrants or options to subscribe for or
purchase Common Shares.

                              (ix)     
“Other Securities” means (i) those options and warrants of the Company
issued prior to, and outstanding on, the Issuance Date of this Warrant, (ii) the
Common Shares issuable on exercise of such options and warrants, provided such
options and warrants are not amended after the Issuance Date of this Warrant and
(iii) the Common Shares issuable upon exercise of this Warrant.

                              (x)     
“Person” means an individual, a limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization and a
government or any department or agency thereof. 

                              (xi)     
“Principal Market” means the New York Stock Exchange, the American Stock
Exchange, the Nasdaq Global Market, the Nasdaq Capital Market, whichever is at
the time the principal trading exchange or market for such security, or the
over-the-counter market on the electronic bulletin board for such security as
reported by Bloomberg or, if no bid or sale information is reported for such
security by Bloomberg, then the average of the bid prices of each of the market
makers for such security as reported in the “pink sheets” by the National
Quotation Bureau, Inc. 

                              (xii)     
“Securities Act” means the Securities Act of 1933, as amended.

                              (xiii)     
“Warrant” means this Warrant and all Warrants issued in exchange,
transfer or replacement hereof.

3 

                              (xiv)      “Warrant
Exercise Price” shall be the Fixed Price as defined in the Convertible
Debenture or as subsequently adjusted as provided in Section 8 hereof.

                              (xv)      “Warrant
Shares” means the Common Shares issuable at any time upon exercise of this
Warrant.

                              (xvi)      “Convertible
Securities” means any security convertible into Common Shares. 

                    (c)     
Other Definitional Provisions.

                              (i)      Except
as otherwise specified herein, all references herein (A) to the Company shall be
deemed to include the Company’s successors and (B) to any applicable law defined
or referred to herein shall be deemed references to such applicable law as the
same may have been or may be amended or supplemented from time to time.

                              (ii)      When
used in this Warrant, the words “herein”, “hereof”, and
“hereunder” and words of similar import, shall refer to this
Warrant as a whole and not to any provision of this Warrant, and the words
“Section”, “Schedule”, and “Exhibit” shall refer to
Sections of, and Schedules and Exhibits to, this Warrant unless otherwise
specified.

                              (iii)      Whenever
the context so requires, the neuter gender includes the masculine or feminine,
and the singular number includes the plural, and vice versa.

          Section
2.      Exercise of Warrant. Subject to the
terms and conditions hereof, this Warrant may be exercised by the holder hereof
then registered on the books of the Company, pro rata as hereinafter provided,
at any time on any Business Day on or after the opening of business on such
Business Day, commencing with the first day after the date hereof, and prior to
11:59 P.M. Eastern Time on the Expiration Date, by (i) delivery of a written
notice, in the form of the subscription notice attached as Exhibit A
hereto (the “Exercise Notice”), of such holder’s election to exercise
this Warrant, which notice shall specify the number of Warrant Shares to be
purchased, (ii) payment to the Company of an amount equal to the Warrant
Exercise Price(s) applicable to the Warrant Shares being purchased, multiplied
by the number of Warrant Shares (at the applicable Warrant Exercise Price) as to
which this Warrant is being exercised (plus any applicable issue or transfer
taxes) (the “Aggregate Exercise Price”): (a) in cash or wire transfer of
immediately available funds, (b) using Common Shares of the Company having a
fair market value equal to the Aggregate Exercise Price, or (c) by delivery of a
written notice of Net Exercise, as described below and (iii) the surrender of
this Warrant (or an indemnification undertaking with respect to this Warrant in
the case of its loss, theft or destruction) to a common carrier for overnight
delivery to the Company as soon as practicable following such date. In the event
of any exercise of the rights represented by this Warrant in compliance with
this Section 2(a), the Company shall on the fifth (5th) Business Day following
the date of receipt of the Exercise Notice, the Aggregate Exercise Price and
this Warrant (or an indemnification undertaking with respect to this Warrant in
the case of its loss, theft or destruction) and the receipt of the
representations of the holder specified in Section 6 hereof, if requested by the
Company (the “Exercise Delivery Documents”), and if the Common Shares are
DTC eligible, credit such aggregate number of Common Shares to which the holder
shall be entitled to the holder’s or its designee’s balance account with The
Depository Trust Company; provided, however, if the holder who submitted the
Exercise Notice requested physical delivery of any or all of the Warrant Shares,
or, if the Common Shares are not DTC eligible then the Company shall, on 

4 

or before the fifth (5th) Business Day following
receipt of the Exercise Delivery Documents, issue and surrender to a common
carrier for overnight delivery to the address specified in the Exercise Notice,
a certificate, registered in the name of the holder, for the number of Common
Shares to which the holder shall be entitled pursuant to such request. Upon
delivery of the Exercise Notice and Aggregate Exercise Price referred to in
clause (ii) above, the holder of this Warrant shall be deemed for all corporate
purposes to have become the holder of record of the Warrant Shares with respect
to which this Warrant has been exercised. In the case of a dispute as to the
determination of the Warrant Exercise Price, the Closing Bid Price or the
arithmetic calculation of the Warrant Shares, the Company shall promptly issue
to the holder the number of Warrant Shares that is not disputed and shall submit
the disputed determinations or arithmetic calculations to the holder via
facsimile within one (1) Business Day of receipt of the holder’s Exercise
Notice. If the holder and the Company are unable to agree upon the determination
of the Warrant Exercise Price or arithmetic calculation of the Warrant Shares
within one (1) day of such disputed determination or arithmetic calculation
being submitted to the holder, then the Company shall immediately submit via
facsimile (i) the disputed determination of the Warrant Exercise Price or the
Closing Bid Price to an independent, reputable investment banking firm or (ii)
the disputed arithmetic calculation of the Warrant Shares to its independent,
outside accountant. The Company shall cause the investment banking firm or the
accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the holder of the results no later than forty-eight
(48) hours from the time it receives the disputed determinations or
calculations. Such investment banking firm’s or accountant’s determination or
calculation, as the case may be, shall be deemed conclusive absent manifest
error. 

          In
lieu of exercising this Warrant via cash payment or delivery of shares, holder
may elect to receive shares equal to the value of this Warrant (or portion
thereof being exercised) by surrender of this Warrant at the principal office of
the Company together with notice of election to exercise by means of a Net
Exercise in which event the Company shall issue to holder a number of the
Company computed using the following formula:

	X= 	Y(A-B)_ 
	  	      A 
	  	  
	Where X = 	
      the number of Common Shares to be issued to the holder
      

	  	
       

	Y = 	
      the number of Common Shares purchasable under this
      Warrant or, if only a portion of this Warrant is being exercised, the
      portion of this Warrant being exercised (at the date of such calculation)
      

	  	
       

	A = 	
      the Fair Market Value of one Common Share (at the date of
      such calculation) 

	  	
       

	B = 	
      the Exercise Price per Common Share (as adjusted to the
      date of such calculation). 

                    (a)      Unless
the rights represented by this Warrant shall have expired or shall have been
fully exercised, the Company shall, as soon as practicable and in no event later
than five (5) Business Days after any exercise and at its own expense, issue a
new Warrant identical in all respects to this Warrant exercised except it shall
represent rights to purchase the 

5 

number of Warrant Shares purchasable immediately prior to such
exercise under this Warrant exercised, less the number of Warrant Shares with
respect to which such Warrant is exercised. 

                    (b)      No
fractional Warrant Shares are to be issued upon any pro rata exercise of this
Warrant, but rather the number of Warrant Shares issued upon such exercise of
this Warrant shall be rounded up or down to the nearest whole number. 

                    (c)     
If the Company or its Transfer Agent shall fail for any reason or for no reason
to issue to the holder within ten (10) days of receipt of the Exercise Delivery
Documents, a certificate for the number of Warrant Shares to which the holder is
entitled or to credit the holder’s balance account with The Depository Trust
Company for such number of Warrant Shares to which the holder is entitled upon
the holder’s exercise of this Warrant, the Company shall, in addition to any
other remedies under this Warrant or otherwise available to such holder, pay as
additional damages in cash to such holder on each day the issuance of such
certificate for Warrant Shares is not timely effected an amount equal to 0.025%
of the product of (A) the sum of the number of Warrant Shares not issued to the
holder on a timely basis and to which the holder is entitled, and (B) the
Closing Bid Price of the Common Shares for the trading day immediately preceding
the last possible date which the Company could have issued such Common Shares to
the holder without violating this Section 2. 

                    (d)     
If within ten (10) days after the Company’s receipt of the Exercise Delivery
Documents, the Company fails to deliver a new Warrant to the holder for the
number of Warrant Shares to which such holder is entitled pursuant to Section 2
hereof, then, in addition to any other available remedies under this Warrant, or
otherwise available to such holder, the Company shall pay as additional damages
in cash to such holder on each day after such tenth (10th) day that
such delivery of such new Warrant is not timely effected in an amount equal to
0.25% of the product of (A) the number of Warrant Shares represented by the
portion of this Warrant which is not being exercised and (B) the Closing Bid
Price of the Common Shares for the trading day immediately preceding the last
possible date which the Company could have issued such Warrant to the holder
without violating this Section 2. 

                    (e)      This
Warrant may not be exercised unless an exemption is available from the
registration requirements under the Securities Act, and the securities laws of
all applicable states, and the Company has received an opinion of counsel or
other evidence to such effect satisfactory to it; provided, however, that a
holder who acquired this Warrant in the Company’s private placement of such
securities who was and remains outside the United States and not a “U.S.
person,” as such term is defined in Regulation S under the Securities Act, will
not be required to deliver an opinion of counsel in connection with the exercise
of such Warrant. Upon exercise of this Warrant, the certificate representing the
Warrant Shares will bear a legend restricting transfer without registration
under the Securities Act and applicable state securities laws unless an
exemption from registration is available and will contain any other restrictions
required by applicable United States federal or state securities laws.
Further, without compliance with all applicable Canadian securities
legislation, the securities represented by this certificate may not be sold,
transferred, hypothecated or otherwise traded in Canada or to or for the benefit
of a Canadian resident until the date that is four months and one day after the
date of issuance of this Warrant.

6 

          Section
3.      Covenants as to Common Shares. The
Company hereby covenants and agrees as follows: 

                    (a)      This
Warrant is, and any Warrants issued in substitution for or replacement of this
Warrant will upon issuance be, duly authorized and validly issued. 

                    (b)     
All Warrant Shares which may be issued upon the exercise of the rights
represented by this Warrant will, upon issuance, be validly issued, fully paid
and nonassessable and free from all taxes, liens and charges with respect to the
issue thereof. 

                    (c)     
During the period within which the rights represented by this Warrant may be
exercised, the Company will at all times have authorized and reserved at least
one hundred percent (100%) of the number of Common Shares needed to provide for
the exercise of the rights then represented by this Warrant and the par value of
said shares will at all times be less than or equal to the applicable Warrant
Exercise Price. If at any time the Company does not have a sufficient number of
Common Shares authorized and available, then the Company shall call and hold a
special meeting of its shareholders within sixty (60) days of that time for the
sole purpose of increasing the number of authorized Common Shares. 

                    (d)     
If at any time after the date hereof the Company shall file a registration
statement, the Company shall include the Warrant Shares issuable to the holder,
pursuant to the terms of this Warrant. 

                    (e)      The
Company will not, by amendment of its Articles of Incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed by it
hereunder, but will at all times in good faith assist in the carrying out of all
the provisions of this Warrant and in the taking of all such action as may
reasonably be requested by the holder of this Warrant in order to protect the
exercise privilege of the holder of this Warrant against dilution or other
impairment, consistent with the tenor and purpose of this Warrant. The Company
will not increase the par value of any Common Shares receivable upon the
exercise of this Warrant above the Warrant Exercise Price then in effect, and
(ii) will take all such actions as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable Common
Shares upon the exercise of this Warrant. 

                    (f)     
This Warrant will be binding upon any entity succeeding to the Company by
merger, consolidation or acquisition of all or substantially all of the
Company’s assets. 

          Section
4.      Taxes. The Company shall pay any
and all taxes, except any applicable withholding, which may be payable with
respect to the issuance and delivery of Warrant Shares upon exercise of this
Warrant. 

          Section
5.      Warrant Holder Not Deemed a Shareholder.
Except as otherwise specifically provided herein, no holder, as such, of this
Warrant shall be entitled to vote or 

7 

receive dividends or be deemed the holder of capital stock of
the Company for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the holder hereof, as such, any of the rights of a
shareholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, conveyance or otherwise), receive notice of
meetings, receive dividends or subscription rights, or otherwise, prior to the
issuance to the holder of this Warrant of the Warrant Shares which he or she is
then entitled to receive upon the due exercise of this Warrant. In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities
on such holder to purchase any securities (upon exercise of this Warrant or
otherwise) or as a shareholder of the Company, whether such liabilities are
asserted by the Company or by creditors of the Company. Notwithstanding this
Section 5, the Company will provide the holder of this Warrant with copies of
the same notices and other information given to the shareholders of the Company
generally, contemporaneously with the giving thereof to the shareholders. 

          Section
6.      Representations of Holder. If such
holder cannot make the appropriate representations set forth in the Exercise
Notice in order to confirm compliance with any applicable United States federal
or state securities laws, the Company is under no obligation to issue the
Warrant Shares. 

          Section
7.      Ownership and Transfer. 

                    (a)     
The Company shall maintain at its principal executive offices (or such other
office or agency of the Company as it may designate by notice to the holder
hereof), a register for this Warrant, in which the Company shall record the name
and address of the person in whose name this Warrant has been issued, as well as
the name and address of each transferee. The Company may treat the person in
whose name any Warrant is registered on the register as the owner and holder
thereof for all purposes, notwithstanding any notice to the contrary, but in all
events recognizing any transfers made in accordance with the terms of this
Warrant. 

          Section
8.      Adjustment of Warrant Exercise Price
and Number of Shares. The Warrant Exercise Price and the number of Common
Shares issuable upon exercise of this Warrant shall be adjusted from time to
time as follows: 

                    (a)      Adjustment
of Warrant Exercise Price and Number of Shares upon Issuance of Common
Shares. If and whenever on or after the Issuance Date of this Warrant, the
Company issues or sells, or is deemed to have issued or sold, any Common Shares
(other than (i) Excluded Securities and (ii) Common Shares which are issued or
deemed to have been issued by the Company in connection with an Approved Stock
Plan or upon exercise or conversion of the Other Securities) for a consideration
per share less than a price (the “Applicable Price”) equal to the Warrant
Exercise Price in effect immediately prior to such issuance or sale, then
immediately after such issue or sale the Warrant Exercise Price then in effect
shall be reduced to an amount equal to such consideration per share. Upon each
such adjustment of the Warrant Exercise Price hereunder, the number of Warrant
Shares issuable upon exercise of this Warrant shall be adjusted to the number of
shares determined by multiplying the Warrant Exercise Price in effect
immediately prior to such adjustment by the number of Warrant Shares issuable
upon exercise of this Warrant immediately prior to such adjustment and dividing
the product thereof by the Warrant Exercise Price resulting from such
adjustment. 

8 

                    (b)     
Effect on Warrant Exercise Price of Certain Events. For purposes of
determining the adjusted Warrant Exercise Price under Section 8(a) above, the
following shall be applicable: 

                              (i)      Issuance
of Options. If after the date hereof, the Company in any manner grants any
Options and the lowest price per share for which one Common Share is issuable
upon the exercise of any such Option or upon conversion or exchange of any
Convertible Securities issuable upon exercise of any such Option is less than
the Applicable Price, then such Common Share shall be deemed to be outstanding
and to have been issued and sold by the Company at the time of the granting or
sale of such Option for such price per share. For purposes of this Section
8(b)(i), the lowest price per share for which one Common Share is issuable upon
exercise of such Options or upon conversion or exchange of any Convertible
Securities shall be equal to the sum of the lowest amounts of consideration (if
any) received or receivable by the Company with respect to any one Common Share
upon the granting or sale of the Option, upon exercise of the Option or upon
conversion or exchange of any Convertible Security issuable upon exercise of
such Option. No further adjustment of the Warrant Exercise Price shall be made
upon the actual issuance of such Common Shares or of such Convertible Securities
upon the exercise of such Options or upon the actual issuance of such Common
Shares upon conversion or exchange of such Convertible Securities. 

                              (ii)      Issuance
of Convertible Securities. If the Company in any manner issues or sells any
Convertible Securities and the lowest price per share for which one Common Share
is issuable upon the conversion or exchange thereof is less than the Applicable
Price, then such Common Share shall be deemed to be outstanding and to have been
issued and sold by the Company at the time of the issuance or sale of such
Convertible Securities for such price per share. For the purposes of this
Section 8(b)(ii), the lowest price per share for which one share of Common
Shares is issuable upon such conversion or exchange shall be equal to the sum of
the lowest amounts of consideration (if any) received or receivable by the
Company with respect to one share of Common Shares upon the issuance or sale of
the Convertible Security and upon conversion or exchange of such Convertible
Security. No further adjustment of the Warrant Exercise Price shall be made upon
the actual issuance of such Common Shares upon conversion or exchange of such
Convertible Securities, and if any such issue or sale of such Convertible
Securities is made upon exercise of any Options for which adjustment of the
Warrant Exercise Price had been or are to be made pursuant to other provisions
of this Section 8(b), no further adjustment of the Warrant Exercise Price shall
be made by reason of such issue or sale.

                              (iii)      Change
in Option Price or Rate of Conversion. If the purchase price provided for in
any Options, the additional consideration, if any, payable upon the issue,
conversion or exchange of any Convertible Securities, or the rate at which any
Convertible Securities are convertible into or exchangeable for Common Shares
changes at any time, the Warrant Exercise Price in effect at the time of such
change shall be adjusted to the Warrant Exercise Price which would have been in
effect at such time had such Options or Convertible Securities provided for such
changed purchase price, additional consideration or changed conversion rate, as
the case may be, at the time initially granted, issued or sold and the number of
Warrant Shares issuable upon exercise of this Warrant shall be correspondingly
readjusted. For purposes of this Section 8(b)(iii), if the terms of any Option
or Convertible Security that was outstanding as of the Issuance Date of this
Warrant are changed in the manner described in the immediately preceding
sentence, then such Option or Convertible Security and the Common Shares deemed
issuable upon exercise, conversion or exchange thereof shall be deemed to have

9 

been issued as of the date of such change. No adjustment
pursuant to this Section 8(b) shall be made if such adjustment would result in
an increase of the Warrant Exercise Price then in effect. 

                    (c)     
Effect on Warrant Exercise Price of Certain Events. For purposes of
determining the adjusted Warrant Exercise Price under Sections 8(a) and 8(b),
the following shall be applicable: 

                              (i)      Calculation
of Consideration Received. If any Common Shares, Options or Convertible
Securities are issued or sold or deemed to have been issued or sold for cash,
the consideration received therefor will be deemed to be the net amount received
by the Company therefor. If any Common Shares, Options or Convertible Securities
are issued or sold for a consideration other than cash, the amount of such
consideration received by the Company will be the fair value of such
consideration, except where such consideration consists of marketable
securities, in which case the amount of consideration received by the Company
will be the market price of such securities on the date of receipt of such
securities. If any Common Shares, Options or Convertible Securities are issued
to the owners of the non-surviving entity in connection with any merger in which
the Company is the surviving entity, the amount of consideration therefor will
be deemed to be the fair value of such portion of the net assets and business of
the non-surviving entity as is attributable to such Common Shares, Options or
Convertible Securities, as the case may be. The fair value of any consideration
other than cash or securities will be determined jointly by the Company and the
holders of Warrants representing at least two-thirds (b) of the Warrant Shares
issuable upon exercise of the Warrants then outstanding. If such parties are
unable to reach agreement within ten (10) days after the occurrence of an event
requiring valuation (the “Valuation Event”), the fair value of such
consideration will be determined within five (5) Business Days after the tenth
(10th) day following the Valuation Event by an independent, reputable
appraiser jointly selected by the Company and the holders of Warrants
representing at least two-thirds (b) of the Warrant Shares issuable upon
exercise of the Warrants then outstanding. The determination of such appraiser
shall be final and binding upon all parties and the fees and expenses of such
appraiser shall be borne jointly by the Company and the holders of Warrants.

                              (ii)      Integrated
Transactions. In case any Option is issued in connection with the issue or
sale of other securities of the Company, together comprising one integrated
transaction in which no specific consideration is allocated to such Options by
the parties thereto, the Options will be deemed to have been issued for a
consideration of $.01. 

                              (iii)     
Treasury Shares. The number of Common Shares outstanding at any given
time does not include shares owned or held by or for the account of the Company,
and the disposition of any shares so owned or held will be considered an issue
or sale of Common Shares. 

                              (iv)      Record
Date. If the Company takes a record of the holders of Common Shares for the
purpose of entitling them (1) to receive a dividend or other distribution
payable in Common Shares, Options or in Convertible Securities or (2) to
subscribe for or purchase Common Shares, Options or Convertible Securities, then
such record date will be deemed to be the date of the issue or sale of the
Common Shares deemed to have been issued or sold upon the declaration of such
dividend or the making of such other distribution or the date of the granting of
such right of subscription or purchase, as the case may be. 

10 

                    (d)      Adjustment
of Warrant Exercise Price upon Subdivision or Combination of Common
Shares. If the Company at any time after the date of issuance of this
Warrant subdivides (by any stock split, stock dividend, recapitalization or
otherwise) one or more classes of its outstanding Common Shares into a greater
number of shares, any Warrant Exercise Price in effect immediately prior to such
subdivision will be proportionately reduced and the number of Common Shares
obtainable upon exercise of this Warrant will be proportionately increased. If
the Company at any time after the date of issuance of this Warrant combines (by
combination, reverse stock split or otherwise) one or more classes of its
outstanding Common Shares into a smaller number of shares, any Warrant Exercise
Price in effect immediately prior to such combination will be proportionately
increased and the number of Warrant Shares issuable upon exercise of this
Warrant will be proportionately decreased. Any adjustment under this Section
8(d) shall become effective at the close of business on the date the subdivision
or combination becomes effective. 

                    (e)     
Distribution of Assets. If the Company shall declare or make any dividend
or other distribution of its assets (or rights to acquire its assets) to holders
of Common Shares, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a “Distribution”), at any
time after the issuance of this Warrant, then, in each such case: 

                              (i)      any
Warrant Exercise Price in effect immediately prior to the close of business on
the record date fixed for the determination of holders of Common Shares entitled
to receive the Distribution shall be reduced, effective as of the close of
business on such record date, to a price determined by multiplying such Warrant
Exercise Price by a fraction of which (A) the numerator shall be the Closing
Sale Price of the Common Shares on the trading day immediately preceding such
record date minus the value of the Distribution (as determined in good faith by
the Company’s Board of Directors) applicable to one share of Common Shares, and
(B) the denominator shall be the Closing Bid Price of the Common Shares on the
trading day immediately preceding such record date; and 

                              (ii)      either
(A) the number of Warrant Shares obtainable upon exercise of this Warrant shall
be increased to a number of shares equal to the number of Common Shares
obtainable immediately prior to the close of business on the record date fixed
for the determination of holders of Common Shares entitled to receive the
Distribution multiplied by the reciprocal of the fraction set forth in the
immediately preceding clause (i), or (B) in the event that the Distribution is
of common shares of a company whose common shares are traded on a national
securities exchange or a national automated quotation system, then the holder of
this Warrant shall receive an additional warrant to purchase Common Shares, the
terms of which shall be identical to those of this Warrant, except that such
warrant shall be exercisable into the amount of the assets that would have been
payable to the holder of this Warrant pursuant to the Distribution had the
holder exercised this Warrant immediately prior to such record date and with an
exercise price equal to the amount by which the exercise price of this Warrant
was decreased with respect to the Distribution pursuant to the terms of the
immediately preceding clause (i). 

                    (f)     
Certain Events. If any event occurs of the type contemplated by the
provisions of this Section 8 but not expressly provided for by such provisions
(including, 

11 

without limitation, the granting of stock appreciation
  rights, phantom stock rights or other rights with equity features), then the
  Company’s Board of Directors will make an appropriate adjustment in the
  Warrant Exercise Price and the number of Common Shares obtainable upon exercise
  of this Warrant so as to protect the rights of the holders of the Warrants;
  provided, except as set forth in section 8(d), that no such adjustment pursuant
  to this Section 8(f) will increase the Warrant Exercise Price or decrease the
  number of Common Shares obtainable as otherwise determined pursuant to this
  Section 8. 

                    (g)      Notices.

                              (i)      Immediately
upon any adjustment of the Warrant Exercise Price, the Company will give written
notice thereof to the holder of this Warrant, setting forth in reasonable
detail, and certifying, the calculation of such adjustment. 

                              (ii)      The
Company will give written notice to the holder of this Warrant at least ten (10)
days prior to the date on which the Company closes its books or takes a record
(A) with respect to any dividend or distribution upon the Common Shares, (B)
with respect to any pro rata subscription offer to holders of Common Shares or
(C) for determining rights to vote with respect to any Organic Change (as
defined below), dissolution or liquidation, provided that such information shall
be made known to the public prior to or in conjunction with such notice being
provided to such holder. 

                              (iii)     
The Company will also give written notice to the holder of this Warrant at least
ten (10) days prior to the date on which any Organic Change, dissolution or
liquidation will take place, provided that such information shall be made known
to the public prior to or in conjunction with such notice being provided to such
holder. 

          Section
9.      Purchase Rights; Reorganization,
Reclassification, Consolidation, Merger or Sale. 

                    (a)     
In addition to any adjustments pursuant to Section 8 above, if at any time the
Company grants, issues or sells any Options, Convertible Securities or rights to
purchase stock, warrants, securities or other property pro rata to the record
holders of any class of Common Shares (the “Purchase Rights”), then the
holder of this Warrant will be entitled to acquire, upon the terms applicable to
such Purchase Rights, the aggregate Purchase Rights which such holder could have
acquired if such holder had held the number of Common Shares acquirable upon
complete exercise of this Warrant immediately before the date on which a record
is taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of Common Shares are to
be determined for the grant, issue or sale of such Purchase Rights. 

                    (b)      Any
recapitalization, reorganization, reclassification, consolidation, merger, sale
of all or substantially all of the Company’s assets to another Person or other
transaction in each case which is effected in such a way that holders of Common
Shares are entitled to receive (either directly or upon subsequent liquidation)
stock, securities or assets with respect to or in exchange for Common Shares is
referred to herein as an “Organic Change.” Prior to the consummation of
any (i) sale of all or substantially all of the Company’s assets to an acquiring
Person or (ii) other Organic Change following which the Company is not a
surviving entity, the Company will secure 

12 

from the Person purchasing such assets or the successor
  resulting from such Organic Change (in each case, the “Acquiring Entity”)
  a written agreement (in form and substance satisfactory to the holders of Warrants
  representing at least two-thirds of the Warrant Shares issuable upon exercise
  of the Warrants then outstanding) to deliver to each holder of Warrants in exchange
  for such Warrants, a security of the Acquiring Entity evidenced by a written
  instrument substantially similar in form and substance to this Warrant and satisfactory
  to the holders of the Warrants (including an adjusted warrant exercise price
  equal to the value for the Common Shares reflected by the terms of such consolidation,
  merger or sale, and exercisable for a corresponding number of Common Shares
  acquirable and receivable upon exercise of the Warrants without regard to any
  limitations on exercise, if the value so reflected is less than any Applicable
  Warrant Exercise Price immediately prior to such consolidation, merger or sale).
  Prior to the consummation of any other Organic Change, the Company shall make
  appropriate provision (in form and substance satisfactory to the holders of
  Warrants representing a majority of the Warrant Shares issuable upon
  exercise of the Warrants then outstanding) to insure that each of the holders
  of the Warrants will thereafter have the right to acquire and receive in lieu
  of or in addition to (as the case may be) the Warrant Shares immediately theretofore
  issuable and receivable upon the exercise of such holder’s Warrants (without
  regard to any limitations on exercise), such shares of stock, securities or
  assets that would have been issued or payable in such Organic Change with respect
  to or in exchange for the number of Warrant Shares which would have been issuable
  and receivable upon the exercise of such holder’s Warrant as of the date
  of such Organic Change (without taking into account any limitations or restrictions
  on the exercisability of this Warrant). 

          Section
10.      Lost, Stolen, Mutilated or Destroyed
Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the
Company shall promptly, on receipt of an indemnification undertaking (or, in the
case of a mutilated Warrant, the Warrant), issue a new Warrant of like
denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

          Section
11.      Notice. Any notices, consents,
waivers or other communications required or permitted to be given under the
terms of this Warrant must be in writing and will be deemed to have been
delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile (provided confirmation of receipt is received by the sending
party transmission is mechanically or electronically generated and kept on file
by the sending party); or (iii) one Business Day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such
communications shall be: 

	If to Trafalgar: 	Trafalgar Capital Specialized Investment Fund,
      Luxembourg 
	 	8-10 Rue Mathias Hardt 
	  	BP 3023 
	  	Luxembourg L-1030 
	  	Facsimile: 
	 	011-44-207-405-0161 
	 	And 001-786-323-1651 
	  	
	With Copy to: 	James G. Dodrill II, P.A. 
	  	5800 Hamilton Way 
		Boca Raton, FL 33496
  

13 

	  	Attention: James Dodrill, Esq. 
	  	Telephone:      (561) 862-0529
    
	  	Facsimile:        
      (561) 892-7787 
	  	 
	If to the Company, to: 	Carbiz Inc. 
	  	7405 North Tamiami Trail 
	  	Sarasota, FL 34243 
	  	Attn: Mr. Carl Ritter, CEO 
	  	Telephone:      (800)
      547-2277 
	  	Facsimile:        
      (941) 308-2718 
	  	 
	With a copy to: 	Troutman Sanders LLP 
	  	222 Central Park Avenue, Suite 2000 
	  	Virginia Beach, VA 23462 
	  	Attn: Mr. Thomas M. Rose, Esq. 
	  	Telephone:      (757)
      687-7715 
	  	Facsimile:        
      (757) 687-1529 

If to a holder of this Warrant other than Trafalgar, to it at
the address and facsimile number as shall be delivered to the Company upon the
issuance or transfer of this Warrant and with copies to such holder’s
representatives as shall be delivered to the Company upon the issuance or
transfer of this Warrant. Each party shall provide five days’ prior written
notice to the other party of any change in address or facsimile number. Written
confirmation of receipt (A) given by the recipient of such notice, consent,
facsimile, waiver or other communication, (or (B) provided by a nationally
recognized overnight delivery service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from a nationally recognized overnight
delivery service in accordance with clause (i), (ii) or (iii) above,
respectively. 

          Section
12.      Date. The date of this Warrant is
set forth on page 1 hereof. This Warrant, in all events, shall be wholly void
and of no effect after the close of business on the Expiration Date, except that
notwithstanding any other provisions hereof, the provisions of Section 8(b)
shall continue in full force and effect after such date as to any Warrant Shares
or other securities issued upon the exercise of this Warrant. 

          Section
13.      Amendment and Waiver. Except as
otherwise provided herein, the provisions of the Warrants may be amended and the
Company may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if the Company has obtained the written
consent of the holders of Warrants representing at least two-thirds of the
Warrant Shares issuable upon exercise of the Warrants then outstanding; provided
that, except for Section 8(d), no such action may increase the Warrant Exercise
Price or decrease the number of shares or class of stock obtainable upon
exercise of any Warrant without the written consent of the holder of such
Warrant. 

          Section
14.      Descriptive Headings; Governing
Law. The descriptive headings of the several sections and paragraphs of this
Warrant are inserted for convenience only and do not constitute a part of this
Warrant. The corporate laws of the State of Florida shall govern all issues
concerning the relative rights of the Company and its shareholders. All other
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of Florida
without giving effect to any choice of law or 

14 

conflict of law provision or rule (whether of the State of
Florida or any other jurisdictions) that would cause the application of the laws
of any jurisdictions other than the State of Florida Each party hereby
irrevocably submits to the exclusive jurisdiction of the state courts sitting in
Broward County, Florida and the United States District Court for the Southern
District of Florida for the adjudication of any dispute hereunder or in
connection herewith or therewith, or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Warrant and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by
law.

          Section
15.      Waiver of Jury Trial. AS A MATERIAL
INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE PARTIES HERETO
HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY
WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH
THIS TRANSACTION. 

          IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed as of the
date first set forth above. 

CARBIZ INC. 

By:
__________________________________________
Name: 
Title: 

15 

EXHIBIT A TO WARRANT 

EXERCISE NOTICE 

TO BE EXECUTED
BY THE REGISTERED HOLDER TO EXERCISE
THIS WARRANT 

CARBIZ INC. 

          The
undersigned holder hereby exercises the right to purchase ______________ of the
Common Shares (“Warrant Shares”) of Carbiz Inc., an Ontario, Canada
corporation (the “Company”), evidenced by the attached Warrant (the
“Warrant”). Capitalized terms used herein and not otherwise defined shall
have the respective meanings set forth in the Warrant. 

          1.      Form
of Warrant Exercise Price. The Holder intends that payment of the Warrant
Exercise Price shall be made as a “Cash Exercise” with respect to
______________ Warrant Shares. 

          2.      Payment
of Warrant Exercise Price. The holder shall pay the sum of $______________
to the Company in accordance with the terms of the Warrant.

          3.     
Delivery of Warrant Shares. The Company shall deliver to the holder
_________ Warrant Shares in accordance with the terms of the Warrant.

          4.      The
undersigned represents, warrants and certifies as follows (only one of the
following must be checked): 

		A. [   ] 	
      The undersigned holder (a) acquired this Warrant directly
      from the Company pursuant to a written purchase agreement for the
      acquisition of such securities, (b) at the time of exercise of this
      Warrant is not in the United States, (c) is not a “U.S. person” (a “U.S.
      Person”), as such term is defined in Regulation S under the U.S.
      Securities Act, and is not exercising such securities on behalf of a U.S.
      Person or a person in the United States, and (d) did not execute this
      Notice of Exercise in the United States; or 

	 	  	
       

		B. [   ] 	
      The undersigned holder has delivered to the Company a
      written opinion of counsel or such other evidence in a form reasonably
      acceptable to the Company to the effect that an exemption from the
      registration requirements of the United States Securities Act of 1933, as
      amended (the “U.S. Securities Act”), and applicable state securities laws
      is available for the issuance of the Warrant Shares.

The undersigned holder understands that the certificate
representing the Warrants Shares will bear a legend restricting transfer without
registration under the U.S. Securities Act and applicable state securities laws
unless an exemption from registration is available and will contain any other
restrictions required under applicable United States federal or state securities
laws or Canadian securities laws. With respect to Box A above, the undersigned
holder agrees to 

A-1 

provide any additional information that the Company may
reasonably request to establish that an exclusion from registration under the
U.S. Securities Act is available for the issuance of the Warrant Shares. Unless
Box B above is checked, certificates representing Common Shares will not be
registered or delivered to an address in the United States. 

If Box B is checked, any opinion tendered or other evidence
delivered must be in form and substance reasonably satisfactory to the Company.
Holders planning to deliver such documentation in connection with the exercise
of a Warrant should contact the Company in advance to determine whether such
documentation will be acceptable to the Company. 

 

Date: _______________ __, ______

Name of Registered Holder 

By:  _________________________
Name:
_______________________
Title: ________________________

A-2 

EXHIBIT B TO WARRANT 

FORM OF WARRANT POWER 

          FOR
  VALUE RECEIVED, the undersigned does hereby assign and transfer to ________________,
  Federal Identification No. __________, a warrant to purchase ____________ shares
  of the capital stock of Carbiz Inc., an Ontario, Canada corporation, represented
  by warrant certificate no. _____, standing in the name of the undersigned on
  the books of said corporation. The undersigned does hereby irrevocably constitute
  and appoint ______________, attorney to transfer the warrants of said corporation,
  with full power of substitution in the premises. 

	Dated: ______________________________________	 	__________________________________________________
	  	 	 
		 	By: _______________________________________________
		 	Name: _____________________________________________
		 	Title: ______________________________________________

B-1Filed by Automated Filing Services Inc. (604) 609-0244 - Wescorp Energy Inc. - Exhibit 10.1

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT 

(For purchasers resident in Alberta and Ontario) 

	TO: 	WESCORP ENERGY INC. (the “Corporation”)
    
	  	  
	AND TO: 	BRYAN & COMPANY LLP, Barristers and
      Solicitors 
	  	2600, 10180 - 101 Street 
	  	Edmonton, AB T5J 3Y2 
	  	Attention: Robert J. Bruggeman
  

Private Placement of up to 3,000,000 units (the “Units”) at
US$0.75 per Unit, each Unit consisting of one share of common stock with a par
value of $0.0001 (a “Common Share”) and one non-transferable share purchase
warrant (a “Warrant”). Each Warrant will entitle the Subscriber to subscribe for
one additional Common Share (each a “Warrant Share”) at a price of US$1.75 per
share at any time up to 4:00 p.m. (the “Time of Expiry”) local time in Edmonton,
Alberta on that date which is 36 months from the date of issue (the “Expiry
Date”). The Units, the Common Shares, the Warrants and the Warrant Shares are
collectively referred to in this subscription agreement (this “Agreement”) as
the “Securities”. 

Subject to the terms and conditions contained in this
Agreement, including the terms and conditions set forth in Schedule “A” hereto,
we, the undersigned, hereby irrevocably subscribe for and agree to purchase
Units of the Corporation in the amount set forth below. 

	 	 
	(Name of Subscriber - please print) 	  
	  	Number of Units Purchased 
	By: 	 
    
	       (Authorized Signature) 	 
    
	 
    	  
	  	Dollar Amount of Units Purchased 
	(Official Capacity or Title - please print) 	 
    
	 
    	  
	 
    	  
	(Please print name of individual whose signature 	Number of securities of the Corporation held prior to
    
	appears above if different than the name of the 	purchase of the Units 
	Subscriber printed above.) 	 
    
	  	Deliver the Units as set forth
      below: 
	Register Units as set forth below: 	 
    
	 
    	  
	 
    	  
	(Name) 	(Name) 
	 
    	  
	 
    	  
	(Account Reference, if applicable) 	  
	  	(Account reference, if applicable) 
	 
    	  
	(Subscriber's address) 	 
    
	 
    	  
	  	(Contact Name) 
	 
    	  
	 
    	  
	(Telephone Number) 	(Address) 
	 
    	  
	 
    	  
	(Fax Number) 	(Telephone Number) 
	 
    	  
	 
    	  
	(Email Address) 	  

All dollar amounts referred to in this Agreement are in US
dollars. 

These securities are restricted securities as that term is
defined in Rule 144 under the United States Securities Act of 1933, as amended
(the “U.S. Securities Act”). As restricted securities, they may be resold only
in accordance with Rule 144 or Regulation S under the U.S. Securities Act or
pursuant to an effective registration statement under the U.S. Securities Act or
an exemption from the U.S. Securities Act. Hedging transactions involving these
securities may not be conducted unless in compliance with the U.S. Securities
Act. 

These securities have not been registered with the United
States Securities and Exchange Commission or the securities commission of any
state. This subscription agreement does not constitute an offer to sell nor a
solicitation of an offer to buy the securities in any jurisdiction in which such
offer or solicitation would be unlawful. The securities may not be resold or
transferred except as permitted pursuant to registration under the U.S.
Securities Act or an exemption from it. 

These securities have not been recommended by any federal or
state securities commission or regulatory authority. Furthermore, the foregoing
authorities have not reviewed, confirmed or determined the accuracy or adequacy
of this document. Any representation to the contrary is a criminal offense. 

ACCEPTANCE: The Corporation hereby accepts the above subscription
  this _______ day of ______________, 2007.

	 	WESCORP ENERGY INC.
  
	 	 	 
	 	Per: 	

SCHEDULE “A” 

TERMS AND CONDITIONS OF SUBSCRIPTION FOR

UNITS OF WESCORP ENERGY INC. 

	1. 	
      Acknowledgements re: Hold Periods and Resale
      Restrictions

	 	 	 
		
      We understand and acknowledge the following:

	 	 	 
		(a) 	
      the Warrants are not assignable or transferable without
      the prior written consent of the Corporation;

	 	 	 
		(b) 	
      Warrants may be exercised- in full or in part- by
      tendering notice and funds to the corporation, any time up to 4 pm, the
      “time of expiry”, 36 months from the date of issue. At the “time expiry”
      any remaining unexercised Warrants shall be “deemed exercised” unless the
      Corporation receives written notice otherwise from us prior to the “time
      of expiry”;

	 	 	 
		(c) 	
      notwithstanding the deemed exercise of the Warrants, the
      Corporation shall not be obligated issue the Warrant Shares issuable on
      the exercise of the Warrants unless and until the exercise price has been
      tendered to the Corporation and all other terms and conditions of the
      certificates representing the Warrants have been complied with by the
      holder;

	 	 	 
		(d) 	
      in the event that the aggregate exercise for the Warrants
      is not tendered to the Corporation with days of their deemed exercise, at
      the option of the Corporation, such Warrants will be deemed cancelled and
      of no force and effect;

	 	 	 
		(e) 	
      we have been advised to consult our own legal advisers in
      connection with any applicable statutory hold periods and resale
      restrictions, both in Canada and in the United States, relating any of the
      Securities and no representation has been made by the Corporation or its
      representatives respecting the applicable statutory hold period or resale
      restrictions;

	 	 	 
		(f) 	
      we are solely responsible (and the Corporation is not in
      any way responsible) for compliance with applicable hold periods and
      resale restrictions, including without limitation the filing of any
      documentation and, if applicable, the payment of any fees with any
      applicable securities regulatory authority, and we, and (if applicable)
      others on whose behalf we are contracting hereunder, are aware that we,
      and (if applicable) such others, may not be able to resell any of the
      Securities except in accordance with limited exceptions under applicable
      securities legislation and regulatory policy, and we, and (if applicable)
      others on whose behalf we are contracting hereunder, will not sell, resell
      or otherwise transfer any of the Securities except in compliance with
      applicable laws; and

	 	 	 
		(g) 	
      we, on our own behalf and (if applicable) on behalf of
      others for whom we are contracting hereunder, specifically agree that we
      will not offer, sell, pledge or otherwise transfer any of the Securities
      except: (i) to the Corporation; (ii) or inside the United States in a
      transaction, (A) made in compliance with an exemption from registration
      under the U.S. Securities Act provided by Rule 144 or Rule 144A
      thereunder, if available, and any applicable state securities laws of the
      United States or (B) in a transaction exempt from registration
      requirements under the U.S. Securities Act and any applicable state
      securities laws of the United States; we understand that the Common
      Shares, Warrants and Warrant Shares will bear a legend to the foregoing
      effect and that prior any transfer pursuant to the foregoing clauses (ii)
      and (iii), the Corporation may require that the seller furnish the
      Corporation and the Corporation's transfer agent with an opinion of
      counsel recognized standing, in substance and form satisfactory to the
      Corporation, that such transfer

A - 1 

exempt from registration under the
U.S. Securities Act and any applicable state securities laws; we understand and
acknowledge that the certificates for the Common Shares, Warrants and Warrant
Shares and any certificates issued in replacement thereof or exchange therefor,
shall have endorsed thereon a legend reflecting such restrictions on transfer
and we understand and acknowledge that the Corporation is not obligated to file
and has no present intention of filing with the United States Securities and
Exchange Commission or with any state securities administrator or commission any
registration statement in respect of resales of any of the Securities in the
United States; and further, we covenant that all offering materials and
documents used in connection with offers and sales of any of the Securities
before the expiration of the Restricted Period (defined below in paragraph 7(c))
must state that: (i) the securities have not been registered under the U.S.
Securities Act and may not be offered or sold in the United States or to a U.S.
person unless such securities are registered under the U.S. Securities Act or an
exemption from the registration requirements of the U.S. Securities Act is
available, and that (ii) hedging transactions involving the securities may not
be conducted unless they comply with the U.S. Securities Act. 

	2. 	
      Delivery and Payment

	 	 	 
		
      We agree that the following must be delivered to the
      Corporation c/o Bryan & Company LLP, Barristers and Solicitors, 2600
      Manulife Place, 10180 - 101 Street, Edmonton, Alberta T5J 3Y2, Attention:
      Robert J. Bruggeman, or by fax at (780) 428-6324:

	 	 	 
		(a) 	
      a certified cheque, bank draft, money order or wire
      transfer payable to “Bryan & Company LLP In Trust”, representing the
      aggregate purchase price payable by us for the Units, unless other payment
      arrangements acceptable to the Corporation have been made. The entire
      purchase price for the Units must be paid at the time of
    subscription;

	 	 	 
		(b) 	
      one completed and duly signed copy of this Agreement
      together with the exemption certification completed in the forms attached
      hereto as Schedule “B” or Schedule “C” as applicable;

	 	 	 
		(c) 	
      such other documents as may be required pursuant to terms
      of this Agreement; and

	 	 	 
		(d) 	
      all other documentation as may be required by applicable
      securities legislation.

	 	 	 
	3. 	
      Closing

	 	 	 
		
      The Units herein subscribed for will be issued in
      connection with the creation, issue and sale (the “Offering”) of Units
      totalling, in the aggregate, a minimum of US$500,000 (the “Minimum
      Amount”) and up to a maximum of US$1,500,000 (the “Maximum Amount”). The
      minimum amount that any purchaser of Units may subscribe for is US$
      25,000, or 50,000 Units (the “Minimum Subscription Amount”).

	 	 	 
		
      Delivery of and payment for the Units (the “Closing”)
      will be completed at the offices of Bryan & Company LLP, 2600 Manulife
      Place, 10180 - 101 Street, Edmonton, Alberta T5J 3Y2 upon the Corporation
      receiving subscriptions for at least the Minimum Amount. After receiving
      the Minimum Amount, the Corporation contemplates multiple Closings which
      will take place on such dates as may be determined by the Corporation
      until the Maximum Amount is achieved. Prior to acceptance of this
      subscription by the Corporation, the Corporation is at liberty to
      terminate the Offering at any time (whether or not the Minimum Amount is
      achieved) should market conditions change.

	 	 	 
		
      This subscription is subject to acceptance by the
      Corporation, as described below. Unless other arrangements have been made
      with the Corporation, certificates endorsed by the Corporation
      representing the Common Shares and Warrants will be available for delivery
      to us in Edmonton, Alberta, at Closing against payment of the aggregate
      purchase price for the Units. If we choose not to attend the Closing to
      receive the certificates representing the Units, then the Corporation will
      deliver such certificates to us at the address set out for delivery on
      page 1 of this Agreement promptly after the
Closing.

A - 2 

		
      In the event that the Minimum Amount is not achieved on
      or before September 15th, 2007, all subscription funds shall be
      returned without interest or deduction.

	 	 	 
	4. 	
      Acceptance of Subscription

	 	 	 
		
      This subscription may be accepted in whole or in part and
      the right is reserved to the Corporation to allot to any subscriber less
      than the amount of the Units subscribed for. Without limiting the
      generality of the foregoing, this subscription shall not be accepted if
      the amount of the Units subscribed for is less than the Minimum
      Subscription Amount. Confirmation of acceptance or rejection of this
      subscription will be forwarded to us promptly after the acceptance or
      rejection of this subscription by the Corporation. If this subscription is
      rejected in whole, we understand that any certified cheques or bank drafts
      delivered by us to the Corporation representing the purchase price for the
      Units will be promptly returned to us without interest. If this
      subscription is accepted only in part, we understand that a cheque
      representing the purchase price for that portion of our subscription which
      is not accepted will be promptly delivered to us, without
  interest.

	 	 	 
	5. 	
      Acknowledgements re: Prospectus Exemptions,
      etc.

	 	 	 
		
      We acknowledge and agree that the sale of the Units to
      us, or (if applicable) to others on whose behalf we are contracting
      hereunder, is conditional upon, among other things:

	 	 	 
		(a) 	
      such sale being exempt from the prospectus filing
      requirements and the requirements for the delivery of an offering
      memorandum (as defined in any applicable Canadian securities legislation),
      of all applicable securities legislation relating to such sale or upon the
      issuance of such rulings, orders, consents or approvals as may be required
      to permit such sale without the requirement of filing a prospectus or
      delivering an offering memorandum; and

	 	 	 
		(b) 	
      the Corporation obtaining any necessary regulatory
      approvals.

	 	 	 
		
      We also acknowledge and agree that:

	 	 	 
		(a) 	
      we have not received, requested or been provided with,
      nor have any need to receive, a prospectus, offering memorandum (as
      defined in any applicable Canadian securities legislation) or similar
      disclosure document relating to the offering of the Units and/or the
      business and affairs of the Corporation and that the decision to enter
      into this Agreement and purchase the Units has not been based upon any
      verbal or written representation as to fact or otherwise made by or on
      behalf of the Corporation or any officer, director, employee or agent of
      the Corporation and that such decision is based entirely upon information
      set out in this Agreement and currently available public information
      concerning the Corporation;

	 	 	 
		(b) 	
      there has not been any advertisement of the offering of
      the Units in printed public media, radio, television or
      telecommunications, including electronic display such as the Internet or
      any seminar or meeting whose attendees have been invited by general
      solicitation or general advertising;

	 	 	 
		(c) 	
      no agency, governmental authority, regulatory body, stock
      exchange or other entity has made any finding or determination as to the
      merit for investment of, nor have any such agencies or governmental
      authorities made any recommendation or endorsement with respect to the
      Securities;

	 	 	 
		(d) 	
      no prospectus has been filed by the Corporation with a
      securities commission or other securities regulatory authority in any
      province of Canada or any other jurisdiction in connection with the
      issuance of the Units and such issuances are exempt from the prospectus
      requirements otherwise applicable under the provisions of Canadian
      securities laws and, as a result, in connection with our purchase of the
      Securities:

A - 3 

	 	(i) 	
      we are restricted from using most of the civil remedies
      available under Canadian securities laws;

	 	 	 
	 	(ii) 	
      we will not receive information that would otherwise be
      required to be provided to us under applicable securities laws or
      contained in a prospectus prepared in accordance with applicable
      securities laws; and

	 	 	 
	 	(iii) 	
      the Corporation is relieved from certain obligations that
      would otherwise apply under such applicable securities
  laws;

	 	(e) 	
      the Units are being offered for sale only on a “private
      placement” basis;

	 	 	 
	 	(f) 	
      the Corporation is not a reporting issuer in any province
      of Canada and, as such, the hold periods applicable to the Common Shares,
      Warrants and Warrant Shares may never expire and such securities may never
      be resold except pursuant to a further statutory exemption or
      discretionary order; and

	 	 	 
	 	(g) 	
      Bryan & Company LLP is acting as counsel to the
      Corporation pursuant to the Offering and is not acting as counsel to the
      purchasers of any of the Securities.

We acknowledge that the Corporation may
be required to provide applicable securities regulatory authorities with a list
setting forth the identities of the beneficial purchasers of the Units and we
consent to the disclosure of any such information relating to our subscription
hereunder as required for the Corporation to properly comply with all regulatory
and legislative requirements. 

We understand and acknowledge that: (i)
none of the Securities have been or will be registered under the U.S. Securities
Act nor any applicable state securities laws and may not be offered or sold or
re-offered or resold, directly or indirectly, in the United States or to any
U.S. person (as defined in Regulation S under the U.S. Securities Act, a “U.S.
Person”), unless such securities have been registered under the U.S. Securities
Act and any applicable state securities laws, or are otherwise exempt from such
registration; and (ii) certificates representing any of the Securities shall
bear a legend to such effect. 

	6. 	
      Conditions on Closing

	 	 	 
		
      We acknowledge and agree that, as the offering of the
      Units will not be qualified by a prospectus, the offering is subject to
      the condition that we execute and return to the Corporation, as
      applicable, all relevant documentation required by this Agreement,
      applicable securities legislation, regulations, rules and policies and
      applicable stock exchange rules.

	 	 	 
		
      We agree to: (i) provide the Corporation with such
      information and documents, including certificates, statutory declarations
      and undertakings, as the Corporation may reasonably require from time to
      time to comply with any filing or other requirements under applicable
      securities legislation, regulations, rules and policies and applicable
      stock exchange rules; and (ii) comply with the provisions of any
      applicable securities legislation, regulations, rules and policies and
      applicable stock exchange rules concerning any resale of any of the
      Securities.

	 	 	 
	7. 	
      Representations, Warranties and
      Covenants

	 	 	 
		
      We represent, warrant and covenant to and with the
      Corporation (and acknowledge that the Corporation is relying thereon) as
      follows:

	 	 	 
		(a) 	
      Jurisdiction of Residence - we, and any person on
      whose behalf we are contracting, are resident or otherwise subject to the
      applicable securities legislation in the jurisdiction set out under
      “Subscriber's Address” on page 1 of this Agreement, and the purchase by
      and sale to us (and any person on whose behalf we are contracting), of the
      Units has occurred only in such jurisdiction.

A - 4 

	 		
      The address set out under “Subscriber’s Address” on page
      1 was not created and is not used solely for the purpose of acquiring the
      Units and we, and any person on whose behalf we are contracting, were
      solicited to purchase in such jurisdiction and are acquiring the Units for
      our own account, or for the account of a person over which we exercise
      sole investment discretion, and we have the authority to make the
      statements set forth in this Agreement. We, and any person on whose behalf
      we are contracting, have not been formed solely for the purpose of
      entering into the transactions contemplated by this Agreement;

	 	 	 
	 	(b) 	
      Prospectus Exempt Purchaser (Canadian Purchasers)
      - we make the representations, warranties and covenants set out
      below and in Schedules “B” or “C” to this Agreement, as applicable, with
      the Corporation, and we may avail ourselves of one or more of the
      categories of prospectus exemptions contemplated therein (PLEASE CHECK
      ONE OF THE BOXES BELOW AND COMPLETE THE APPROPRIATE CERTIFICATE IN
      SCHEDULES “B” OR “C” ATTACHED HERETO, AS IS
  APPROPRIATE):

	 [    
      ]	
      ACCREDITED INVESTOR EXEMPTION: We are resident in
      Alberta or Ontario, we are purchasing as principal and we are “accredited
      investors” within the meaning of National Instrument 45-106, by virtue of
      falling within one of the categories of “accredited investor” set forth in
      Schedule “B” attached hereto (PLEASE CHECK THE APPROPRIATE
      CATEGORY IN SCHEDULE “B” ATTACHED HERETO); OR 

	 	
       

	 [    
      ]	
      THE FAMILY, FRIENDS AND BUSINESS ASSOCIATES EXEMPTION:
      We are resident in Alberta, we are purchasing as principal and we fall
      within one of the categories set forth in Schedule “C” attached hereto
      (PLEASE CHECK THE APPROPRIATE CATEGORY IN SCHEDULE “C”
      ATTACHED HERETO); 

	 	(c) 	
      Offshore Transaction - we represent and warrant to
      the Corporation that (i) we are not a “U.S. person” as that term is
      defined in Rule 902(c) of Regulation S; (ii) at the time of execution of
      this Agreement, we were outside the United States and no offer of the
      Units was made to us within the United States; (iii) we purchased the
      Units for our own account and not on behalf of any U.S. person, and the
      sale of the Units has not been prearranged with any buyer in the United
      States; and (iv) we are not a distributor as defined in Regulation S. We
      will not, before the expiration of one year from the Closing (the
      “Restricted Period”), offer or sell any of the Securities to U.S. persons
      or for the account or benefit of U.S. persons and will offer and sell any
      of the Securities only in compliance with the provisions of Regulation S
      or a valid and effective registration statement covering any of the
      Securities.

	 	 	 
	 	(d) 	
      Legend – upon the original issuance thereof, and
      until such time as the same is no longer required under applicable
      requirements of the U.S. Securities Act or applicable state securities
      laws, or Canadian securities laws the certificates representing any of the
      Securities and all certificates issued in exchange therefor or in
      substitution thereof, shall bear a legend in substantially the form set
      forth below:

	 	 	 
	 		
      “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      “U.S. SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND MAY BE OFFERED,
      SOLD, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF ONLY (A) TO THE
      CORPORATION; (B) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH
      SECURITIES WHICH HAS BEEN DECLARED AND CONTINUES TO BE EFFECTIVE UNDER THE
      U.S. SECURITIES ACT; (C) IN AN OFFSHORE TRANSACTION MEETING THE
      REQUIREMENTS OF RULE 904 OF REGULATION UNDER THE U.S. SECURITIES ACT AND
      IN COMPLIANCE WITH ANY APPLICABLE SECURITIES LAWS; (D) WITHIN THE UNITED
      STATES IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATIONS UNDER THE U.S.
      SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS, AND THE SELLER HAS
      FURNISHED TO THE CORPORATION AN OPINION TO SUCH EFFECT
  FROM

A - 5 

	 		
      COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY
      TO THE CORPORATION PRIOR TO SUCH OFFER, SALE OR TRANSFER.”

	 	 	 
	 		
      “UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
      HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT
      IS FOUR (4) MONTHS AND ONE (1) DAY AFTER THE LATTER OF [(i)THE
      DISTRIBUTION DATE]; AND (ii) THE DATE THE ISSUER BECAME A
      REPORTING ISSUER IN THE PROVINCE OR TERRITORY.”

	 	 	 
	 		
      provided, that if the Warrant Shares issuable upon the
      exercise of the Warrants are being sold outside the United States in
      compliance with the requirements of Rule 904 of Regulation S under the
      U.S. Securities Act, the seller shall provide the Corporation with a
      declaration in the form attached hereto as Schedule “D”;

	 	 	 
	 	(e) 	
      Investment Intent - we are acquiring the Units for
      our own account (or a trust account if the subscriber is a trustee) and
      not as a nominee. We understand that the purchase of the Units involves a
      high degree of risk and that we must bear the economic risk of this
      investment indefinitely unless sale of the Units is registered pursuant to
      the U.S. Securities Act, or an exemption from registration for their sale
      is available. We understand that, in the view of the United States
      Securities and Exchange Commission, the statutory basis for the exemption
      claimed for this transaction would not be present if the offering of the
      Units, although in technical compliance with Regulation S, is part of a
      plan or scheme to evade the registration provisions of the U.S. Securities
      Act. We are acquiring the Units for investment purposes and have no
      present intention to sell any of the Securities in the United States, to a
      U.S. Person or for the account or benefit of a U.S. Person. We covenant
      that neither we, nor our affiliates, nor any person acting on our or their
      behalf has the intention of entering or will enter during the Restricted
      Period, into any put option, short position or other similar instrument or
      position or any other hedging transactions or arrangements with respect to
      the Company’s common stock, and neither we, nor any of our affiliates, nor
      any person acting on our or their behalf will use at any time any of the
      Securities acquired pursuant to this Agreement to settle any put option,
      short position or other similar instrument or position or any other
      hedging transaction or arrangement that may have been entered into before
      the execution of this Agreement or during the Restricted Period.

	 	 	 
	 	(f) 	
      General Solicitation in the U.S. – we, on our own
      behalf and (if applicable) on behalf of others for whom we are contracting
      hereunder, acknowledge that we have not purchased the Units as a result of
      any general solicitation or general advertising, as such terms are used in
      Regulation D under the U.S. Securities Act, including without limitation,
      advertisements, articles, notices or other communications published in any
      newspaper, magazine or similar media, or broadcast over radio or
      television, or any seminar or meeting whose attendees have been invited by
      general solicitation or general advertising;

	 	 	 
	 	(g) 	
      No Sale in Violation of the Securities Laws - we
      covenant that we will not knowingly sell, transfer or otherwise dispose of
      any of the Securities in violation of the U.S. Securities Act, the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”) or the
      rules and regulations of the Securities and Exchange Commission. We will
      only offer and sell any of the Securities pursuant to an effective
      registration statement under the U.S. Securities Act or an exemption from
      the registration provisions of the U.S. Securities Act or outside the
      United States in accordance with applicable securities laws.

	 	 	 
	 	(h) 	
      Resale Restrictions - we have been independently
      advised as to, and are aware of the restrictions with respect to trading
      in any of the Securities pursuant to the applicable securities laws and
      any applicable stock exchanges;

	 	 	 
	 	(i) 	
      Due Execution and Delivery - we are responsible
      for obtaining such legal advice as we consider necessary in connection
      with the execution, delivery and performance by us of this Agreement
      and

A - 6 

	 		
      the transactions contemplated herein and we represent and
      warrant that such execution, delivery and performance shall not contravene
      any applicable laws of the jurisdiction in which we are
resident;

	 	 	 
	 	(j) 	
      Independent Tax Advice - we are solely responsible
      for obtaining such advice concerning the tax consequences of our
      investment in the Units and we are not relying on the Corporation for
      advice concerning such tax consequences;

	 	 	 
	 	(k) 	
      Capacity – if we and, if applicable, any person on
      whose behalf we are contracting (i) are an individual, we have attained
      the age of majority and are legally competent to execute this Agreement
      and to perform all actions required pursuant hereto; or (ii) are a
      corporation, partnership, unincorporated association or other entity, we,
      as the case may be, have the legal capacity and competence to enter into
      and be bound by this Agreement and we further certify that all necessary
      approvals of directors, shareholders or otherwise have been given and
      obtained;

	 	 	 
	 	(l) 	
      Authority - the entering into of this Agreement
      and the completion of the transactions contemplated herein will not result
      in the violation of any of the terms and provisions of any law applicable
      to, or the constating documents of, us or any purchaser on whose behalf we
      are contracting or of any agreement, written or oral, to which we are or
      such other purchaser is a party or by which we or such other purchaser are
      bound;

	 	 	 
	 	(m) 	
      Enforceability - this Agreement has been duly and
      validly authorized, executed and delivered by us and, upon acceptance by
      the Corporation, this Agreement will constitute a legal, valid and binding
      contract of ours, enforceable against us, in accordance with its
    terms;

	 	 	 
	 	(n) 	
      No Representation re: Resale, Refund, Future Price or
      Listing - no person has made any written or oral representation to
      us:

	 	(i) 	
      that any person will resell or repurchase any of the
      Securities;

	 	 	 
	 	(ii) 	
      that any person will refund the purchase price of any of
      the Securities other than as may be provided in this Agreement;
  or

	 	 	 
	 	(iii) 	
      relating to the future price or value of any of the
      Securities.

	 	(o) 	
      Investment Experience - we have knowledge and
      experience with respect to investments of this type enabling us, to
      evaluate the merits and risks thereof and the capacity to obtain competent
      independent business, legal and tax advice regarding this
    investment;

	 	 	 
	 	(p) 	
      Investment Intent - we are subscribing for the
      Units as principal for our own account and not for the benefit of any
      other person (within the meaning of applicable securities legislation) and
      not with a view to resale or distribution of all or any of the Securities,
      or in the case of a subscription for the Units, by us acting as trustee or
      agent (including, for greater certainty, a portfolio manager or comparable
      adviser) for a principal, that we are duly authorized to execute and
      deliver this Agreement and all other necessary documentation in connection
      with such subscription on behalf of each such beneficial person, 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
      any of the Securities;

	 	 	 
	 	(q) 	
      Share Ownership – we own that number and type of
      securities of the Corporation set forth on page 1 of this Agreement;
      and

We acknowledge that the foregoing
representations and warranties are made by us with the intent that they may be
relied upon in determining our eligibility and the eligibility of any person on
whose behalf we are contracting, to purchase the Units under relevant securities
legislation and we hereby agree, on our 

A - 7 

own behalf and on behalf of any person
on whose behalf we are contracting, to indemnify the Corporation against all
losses, claims, costs, expenses and damages and other liabilities which it may
suffer or incur as the result of or arising from the reliance by the Corporation
on any such representation or warranty. We further agree that by accepting the
Units we shall be representing and warranting that the foregoing representations
and warranties are true as at Closing, with the same force and effect as if they
had been made by us on such date and that they will survive the purchase by us
of the Units and will continue in full force and effect notwithstanding any
subsequent disposition by the us of the Units. 

	8. 	
      Commissions

	 	 
		
      We acknowledge that the Corporation may pay cash
      commission, in accordance with all regulatory requirements, to agents for
      obtaining subscriptions in connection with the offering. The Corporation
      has retained non-exclusive agents for this offering.

	 	 
	9. 	
      Survival

	 	 
		
      This subscription agreement, including without limitation
      the representations, warranties and covenants contained herein, shall
      survive and continue in full force and effect and be binding upon the
      Corporation and the undersigned for a period of three years from Closing
      notwithstanding the issuance of any of the Securities.

	 	 
	10. 	
      Governing Law

	 	 
		
      This agreement shall be governed by and construed in
      accordance with the laws of the Province of Alberta and the federal laws
      of Canada applicable therein. We, hereby irrevocably attorn to the
      jurisdiction of the courts of the Province of Alberta with respect to any
      matters arising out of this Agreement.

	 	 
	11. 	
      Costs

	 	 
		
      All costs and expenses incurred by us (including any fees
      and disbursements of any counsel retained by us) relating to the purchase
      by us of any of the Securities shall be borne by us.

	 	 
	12. 	
      Assignment

	 	 
		
      This agreement is not transferable or assignable, in
      whole or in part, by us or (if applicable) by others on whose behalf we
      are contracting hereunder.

	 	 
	13. 	
      Enurement

	 	 
		
      This agreement will be binding upon and enure to the
      benefit of the parties hereto and their respective successors and
      assigns.

	 	 
	16 	
      Entire Agreement and Headings

	 	 
		
      This agreement (including the schedules hereto) contains
      the entire agreement of the parties hereto relating to the subject matter
      hereof and there are no representations, covenants or other agreements
      relating to the subject matter hereof except as stated or referred to
      herein. This agreement may be amended or modified in any respect by
      written instrument only. The headings contained herein are for convenience
      only and shall not affect the meanings or interpretation hereof.

	 	 
	17. 	
      Time of Essence

	 	 
		
      Time shall be of the essence of this Agreement.

	 	 
	18. 	
      Counterparts and Facsimile
  Deliveries

A - 8 

This agreement may be executed in one
or more counterparts, each of which counterparts when executed shall constitute
an original and all of which counterparts so executed shall constitute one and
the same instrument. The Corporation shall be entitled to rely on delivery of a
facsimile copy of this Agreement, including the completed schedules attached
hereto, and acceptance by the Corporation of any such facsimile copy shall be
legally effective to create a valid and binding agreement between the parties
hereto in accordance with the terms hereof. Notwithstanding the foregoing, the
undersigned shall deliver to the Corporation at the address specified in Section
3 hereof, an originally executed copy of this Agreement, including the schedules
attached hereto, within two business days of Closing. 

A - 9 

SCHEDULE “B” 

ALBERTA AND ONTARIO RESIDENTS ONLY 

	TO: 	WESCORP ENERGY INC. 

The undersigned (“Subscriber”) hereby represents, covenants and
certifies to Wescorp Energy Inc. that the Subscriber is: 

	1. 	
      purchasing the Securities of the Corporation as
      principal;

	 	 
	2. 	
      it or its disclosed principal is resident in or subject
      to the laws of the Province of Alberta or the Province of Ontario,
    and

	 	 
	3. 	
      it or its disclosed principal is an “accredited investor”
      (as that term is defined in National Instrument 45- 106) by virtue of
      satisfying the indicated criteria on Appendix I
hereto.

DATED this _____________ day of _____________, 20__ . 

	 	 
	 	Name of Entity 
	 	 
	 	Authorized Signature 
	 	 
	 	Print Name of Signatory 

B- 1 

APPENDIX I TO SCHEDULE “B” 

The undersigned represents, warrants and certifies that the
Subscriber falls within the category of “Accredited Investor” which is
initialled below: 

	 _____	(a) 	
      a Canadian financial institution or an authorized foreign
      bank listed in Schedule III of the Bank Act (Canada);

	 	 	 
	 _____	(b) 	
      the Business Development Bank 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 limited
      market dealer registered under 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 Company, 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
      solaire do l'ile de Montreal or an intermunicipal management board in
      Quebec;

	 	 	 
	 _____	(h) 	
      a national, federal, state, provincial, territorial or
      municipal government of or in any foreign jurisdiction, or any agency of
      that government;

	 	 	 
	 _____	(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;

	 	 	 
	 _____	(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 Cdn.$1,000,000;

	 	 	 
	 _____	(k) 	
      an individual whose net income before taxes exceeded
      Cdn.$200,000 in each of the two most recent calendar years or whose net
      income before taxes combined with that of a spouse exceeded Cdn.$300,000
      in each of the two most recent calendar years and who, in either case, has
      a reasonable expectation of exceeding the same 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 investment fund, that has net
      assets of at least Cdn.$5,000,000 as shown on its most recently prepared
      financial statements;

B- 1 

	 _____	(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 in section 2.10 (minimum
      investment amount) of National Instrument 45-106, and section 2.1.9
      (additional investment in investment funds) of National Instrument 45-106,
      or (iii) a person described in paragraphs (i) or (ii) that acquires or
      acquired securities under section 2.8 (investment funds reinvested) of
      National Instrument 45-106;

	 	 	 
	 _____	(o) 	
      an investment fund that distributes, or has distributed
      securities under a prospectus in a jurisdiction of Canada for which the
      regulator, or, in Quebec, 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 advisor 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 advisor or other advisor or registered to provide 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 paragraph (a) through (d)
      and paragraph (i) in form and function;

	 	 	 
	 _____	(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; or

	 	 	 
	 _____	(u) 	
      an investment fund that is advised by a person registered
      as an advisor or a person that is exempt from registration and is an
      advisor, or the person that is recognized or designated by the securities
      regulatory authority or, except in Ontario and Quebec, the regulator as
      (i) an accredited investor, or (ii) an exempt purchaser in Alberta or
      British Columbia after September 14, 2005.

For the purposes hereof: 

“eligibility advisor” means 

	(a) 	
      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 securities being distributed, and

	(b) 	
      in Saskatchewan or Manitoba, also means a lawyer who is a
      practicing 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 must
  not

B- 2 

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

	 	(ii) 	
      have acted for or been retained personally or otherwise
      as an employee, an executive officer, a 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;

“EVCC” means an employee venture capital corporation
that does not have a restricted constitution, and is registered under Part 2 of
the Employee Investment Act (British Columbia) and whose business
objective is making multiple investments; 

“financial assets” means: 

	(a) 	
      cash,

	(b) 	
      securities, or

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

“investment fund” means a mutual fund or non-redeemable
investment fund and, for greater certainty in British Columbia, includes an EVCC
and a VCC; 

“person” includes 

	(a) 	
      an individual,

	(b) 	
      a corporation,

	(c) 	
      a partnership, trust, fund and an association, syndicate,
      organization or other organized group of persons, whether incorporated or
      not, and

	(d) 	
      an individual or other person in that person's capacity
      as a trustee, executor, administrator, or personnel or other legal
      representative;

“related liabilities,” means 

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

	(b) 	
      liabilities that are secured by financial
  assets.

“VCC” means a venture capital corporation registered
under Part 1 of the Small Business Venture Capital Act (British Columbia)
whose business objective is making multiple investments. 

B- 3 

SCHEDULE “C” 

ALBERTA RESIDENTS ONLY 

	TO: 	WESCORP ENERGY INC. 

The undersigned (“Subscriber”) hereby represents, covenants and
certifies to Wescorp Energy Inc. that the Subscriber is: 

	 	1. 	
      purchasing the Securities of the Corporation as
      principal;

	 	 	 
	 	2. 	
      it or its disclosed principal is resident in or subject
      to the laws of the Province of Alberta,

	 	 	 
	 	3. 	
      it or its disclosed principal falls within the family,
      friends and business associate exemption (as set out in National
      Instrument 45-106) by virtue of satisfying the indicated criteria on
      Appendix 1 hereto

DATED this _______________ day of __________, 20___ . 

	 	 
	 	Name of Entity 
	 	 
	 	Authorized Signature 
	 	 
	 	Print Name of Signatory 

C-1 

APPENDIX I TO SCHEDULE “C” 

The Subscriber represents that the Subscriber falls within the
category of “Family, Friends and Business Associates” which is initialled below:

	 _____	(a) 	
      a director, executive officer or control person of the
      Corporation, or of an affiliate of the Corporation;

	 	 	 
	 _____	(b) 	
      a spouse, parent, grandparent, brother, sister or child
      of a director, executive officer or control person of the Corporation, or
      of an affiliate of the Corporation;

	 	 	 
	 _____	(c) 	
      a parent, grandparent, brother, sister or child of the
      spouse of a director, executive officer or control person of the
      Corporation, or of an affiliate of the Corporation;

	 	 	 
	 _____	(d) 	
      a close personal friend (by reason of the fact that
      Subscriber has known such individual for a sufficient period of time and
      in a sufficiently close relationship to be in a position to assess the
      capabilities and the trustworthiness of such individual) of a director,
      executive officer or control person of the Corporation, or of an affiliate
      of the Corporation;

	 	 	 
	 _____	(e) 	
      a close business associate (by reason of the fact that
      Subscriber has had sufficient prior business dealings with such individual
      to be in a position to assess the capabilities and trustworthiness of such
      individual) of a director, executive officer or control person of the
      Corporation, or of an affiliate of the Corporation;

	 	 	 
	 _____	(f) 	
      a founder of the Corporation or a spouse, parent,
      grandparent, brother, sister, child, close personal friend or close
      business associate of a founder of the Corporation;

	 	 	 
	 _____	(g) 	
      a parent, grandparent, brother, sister or child of the
      spouse of a founder of the Corporation;

	 	 	 
	 _____	(h) 	
      a person or Corporation of which a majority of the voting
      securities are beneficially owned by, or a majority of the directors are,
      persons or companies described in subsections (a) to (g) above;
  or

	 	 	 
	 _____	(i) 	
      a trust or estate of which all of the beneficiaries or a
      majority of the trustees are persons or companies described in subsections
      (a) to (g) above.

C-2 

SCHEDULE “D” 

DECLARATION 

	TO: 	[name of company] 
	 	 
	AND TO: 	[name of transfer agent]

The undersigned (a) acknowledges that the sale of the
securities of _______________________ (the “Corporation”) to which this
declaration relates is being made in reliance on Rule 904 of Regulation S under
the United States Securities Act of 1933, as amended (the “U.S. Securities
Act”), and (b) certifies that (1) the undersigned is not an “affiliate” (as that
term is defined in Rule 405 under the U.S. Securities Act) of the Corporation, a
“distributor” (as that term is defined in Rule 902(d) of Regulation S under the
U.S. Securities Act) or an affiliate of a distributor or acting on behalf of any
of the foregoing, (2) the offer of such securities was not made to a person in
the United States and either (A) at the time the buy order is originated, the
buyer is outside the United States, or the seller and any person acting on its
behalf shall reasonably believe that the buyer is outside the United States, or
(B) the transaction will be executed in, on or through the facilities of a
“designated offshore securities market” (as that term is defined in Rule 902(b)
of Regulation S under the U.S. Securities Act) and neither the seller nor any
person acting on its behalf knows that the transaction has been prearranged with
a buyer in the United States, (3) neither the seller nor any affiliate of the
seller nor any person acting on any of their behalf has engaged or will engage
in any “directed selling efforts” (as that term is defined in Rule 902(c) of
Regulation S under the U.S. Securities Act) in the United States in connection
with the offer and sale of such securities (4) the sale is bona fide and not for
the purpose of “washing off” the resale restrictions imposed because the
securities are “restricted securities” (as such term is defined in Rule
144(a)(3) under the U.S. Securities Act), (5) the contemplated sale is not a
transaction, or part of a series of transactions which, although in technical
compliance with Regulation S, is part of a plan or scheme to evade the
registration provisions of the U.S. Securities Act, and (6) the undersigned in
making such sale has complied and will comply with the terms of Rule 904(b) of
Regulation S. Terms used herein have the meanings given to them by Regulation S
under the U.S. Securities Act. 

If requested by the Corporation and/or its registrar and
transfer agent, the undersigned shall provide an opinion of counsel, of
recognized standing reasonably satisfactory to the Corporation, to the effect
that the sale complies with the terms of Rule 904 of Regulation S. 

	 Dated:
      _______________________________________	 	
	 	 	 (Name of Holder – please print) 
	 	 	  
	 	 	  
	 	 	  
	 	 	(Authorized Signature) 
	 	 	  
	 	 	  
	 	 	  
	 	 	(Official Capacity – please print) 
	 	 	  
	 	 	  
	 	 	  
	 	 	(please print here the name of the individual
      whose 
	 	 	signature appears above, if different from the
      name 
	 	 	of holder printed above) 

D-1

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