Document:

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT

    EXHIBIT-10.1

     

    THIS
      PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT RELATES TO AN OFFERING OF SECURITIES
      IN
      AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN)
      PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
      AMENDED (THE “1933 ACT”). 

     

    NONE
      OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE
      “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR
      ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED
      OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS
      DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER
      THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933
      ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
      TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
      ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
      TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE
      WITH THE 1933 ACT.

     

    CONFIDENTIAL

    PRIVATE
      PLACEMENT SUBSCRIPTION AGREEMENT

    (Subscribers
      Resident in British Columbia or Overseas)

    

    TO:       Service
      Air Group Inc. (the “Company”)

    5455
      Airport Road South

    Richmond,
      British Columbia

    V7B
      1B5

     

    Purchase
      of Shares

     

    1. Subscription

     

    1.1            On
      the basis of the representations and warranties and subject to the terms and
      conditions set forth herein, the undersigned (the “Subscriber”) hereby
      irrevocably subscribes for and agrees to purchase 18,000 shares of common stock
      (the “Shares”) at a price per Share of US$1.00 (such subscription and agreement
      to purchase being the “Subscription”), for an aggregate purchase price of
      US$18,000 (the “Subscription Proceeds”). - AND - 

     

    1.1            On
      the basis of the representations and warranties and subject to the terms and
      conditions set forth herein, the undersigned (the “Subscriber”) hereby
      irrevocably subscribes for and agrees to purchase 4,125,000 shares of common
      stock (the “Shares”) at a price per Share of US$0.0001 (such subscription and
      agreement to purchase being the “Subscription”), for an aggregate purchase price
      of US$412.50 (the “Subscription Proceeds”). 

     

    1.2            On
      the basis of the representations and warranties and subject to the terms and
      conditions set forth herein, the Company hereby irrevocably agrees to sell
      the
      Shares to the Subscriber.

     

    1.3            Subject
      to the terms hereof, the Subscription will be effective upon its acceptance
      by
      the Company. The Subscriber acknowledges that the offering of Shares
      contemplated hereby is part of a private placement of Shares having an aggregate
      subscription level of US$500,000 (the “Offering”). The Offering is not subject
      to any minimum aggregate subscription level.

     

    2. Payment

     

    2.1            The
      Subscription Proceeds must accompany this Subscription and shall be paid by
      certified cheque or bank draft drawn on a Canadian chartered bank, or a bank
      in
      the United States reasonably acceptable to the Company, and made payable and
      delivered to the Company. Alternatively, the Subscription Proceeds may be wired
      to the Company or its lawyers pursuant to wiring instructions that will be
      provided to the Subscriber upon request. If the funds are wired to the Company’s
      lawyers, those lawyers are authorized to immediately deliver the funds to the
      Company.

     

    2.2            The
      Subscriber acknowledges and agrees that this Subscription Agreement, the
      Subscription Proceeds and any other documents delivered in connection herewith
      will be held on behalf of the Company. In the event that this Subscription
      Agreement is not accepted by the Company for whatever reason, which the Company
      expressly reserves the right to do, within 30 days of the delivery of an
      executed Subscription Agreement by the Subscriber, this Subscription Agreement,
      the Subscription Proceeds (without interest thereon) and any other documents
      delivered in connection herewith will be returned to the Subscriber at the
      address of the Subscriber as set forth in this Subscription
      Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    -
      3
      -

     

     

    2.3            Where
      the Subscription Proceeds are paid to the Company, the Company is entitled
      to
      treat such Subscription Proceeds as an interest free loan to the Company until
      such time as the Subscription is accepted and the certificates representing
      the
      Shares have been issued to the Subscriber.

     

    
      	
              3.

            	
              Documents
                Required from Subscriber

            	
               

            	
               

            
	
              3.1

            	
              The
                Subscriber must complete, sign and return to the Company:

            	
               

            
	
               

            	
              (a)

            	
              an
                executed copy of this Subscription Agreement; and

            	
               

            	
               

            
	
               

            	
               

            	
               

            
	
               

            	
              (b)

            	
              if
                the Subscriber is an “Accredited Investor”, as that term is defined in
                Multilateral Instrument 45-103, an Accredited Investor Questionnaire
                in
                the form attached as Exhibit A (the “Questionnaire”).

            
	 	 	 	 	 	 

    

    3.2        The
      Subscriber shall complete, sign and return to the Company as soon as possible,
      on request by the Company, any documents, questionnaires, notices and
      undertakings as may be required by regulatory authorities applicable
      law.

     

    4. Closing

     

    4.1            Closing
      of the offering of the Securities (the “Closing”) shall occur on or before May
      31, 2006, or on such other date as may be determined by the Company (the
“Closing Date”).

     

    4.2            The
      Company may, at its discretion, elect to close the Offering in one or more
      closings, in which event the Company may agree with one or more subscribers
      (including the Subscriber hereunder) to complete delivery of the Shares to
      such
      subscriber(s) against payment therefor at any time on or prior to the Closing
      Date.

     

    5. Acknowledgements
      of Subscriber

    
      

      
        	
                5.1

              	
                The
                  Subscriber acknowledges and agrees
                  that:

              

      

       

    

    
      
        	
                (a)

              	
                none
                  of the Shares have been registered under the 1933 Act, or under any state
                  securities or “blue sky” laws of any state of the United States, and,
                  unless so registered, may not be offered or sold in the United
                  States or,
                  directly or indirectly, to U.S. Persons, as that term is defined
                  in
                  Regulation S under the 1933 Act (“Regulation S”), except in accordance
                  with the provisions of Regulation S, pursuant to an effective registration
                  statement under the 1933 Act, or pursuant to an exemption from,
                  or in a
                  transaction not subject to, the registration requirements of the
                  1933 Act;
                  

              
	
                (b)

              	
                the
                  Subscriber acknowledges that the Company has not undertaken, and
                  will have
                  no obligation, to register any of the Shares under the 1933
                  Act;

              
	
                (c)

              	
                by
                  completing the Questionnaire, the Subscriber is representing and
                  warranting that the Subscriber is an “Accredited Investor”, as the term is
                  defined in Multilateral Instrument 45-103 adopted by the British
                  Columbia
                  Securities Commission;

              
	
                (d)

              	
                the
                  decision to execute this Agreement and acquire the Shares hereunder
                  has
                  not been based upon any oral or written representation as to fact
                  or
                  otherwise made by or on behalf of the Company, and such decision
                  is based
                  entirely upon a review of information (the receipt of which is
                  hereby
                  acknowledged) which has been filed by the Company in compliance,
                  or
                  intended compliance, with applicable securities legislation (collectively,
                  the “Public Record”);

              
	
                (e)

              	
                if
                  the Company has presented a business plan to the Subscriber, the
                  Subscriber acknowledges that the business plan may not be achieved
                  or be
                  achievable;

              
	
                (f)

              	
                no
                  securities commission or similar regulatory authority has reviewed
                  or
                  passed on the merits of the Shares;

              
	
                (g)

              	
                there
                  is no government or other insurance covering the
                  Shares;

              

      

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    -
      4
      -

     

     

    
      	
              (h)

            	
              there
                are risks associated with an investment in the Shares, as more fully
                described in certain information forming part of the Public
                Record;

            
	
              (i)

            	
              the
                Company has advised the Subscriber that the Company is relying on
                an
                exemption from the requirements to provide the Subscriber with a
                prospectus and to sell the Shares through a person registered to
                sell
                securities under the Securities
                Act
                (British Columbia) (the “B.C. Act”) and, as a consequence of acquiring the
                Shares pursuant to this exemption, certain protections, rights and
                remedies provided by the B.C. Act, including statutory rights of
                rescission or damages, will not be available to the
                Subscriber;

            
	
              (j)

            	
              the
                Subscriber has not acquired the Shares as a result of, and will not
                itself
                engage in, any “directed selling efforts” (as defined in Regulation S
                under the 1933 Act) in the United States in respect of any of the
                Shares
                which would include any activities undertaken for the purpose of,
                or that
                could reasonably be expected to have the effect of, conditioning
                the
                market in the United States for the resale of any of the Shares;
                provided,
                however, that the Subscriber may sell or otherwise dispose of any
                of the
                Shares pursuant to registration thereof under the 1933 Act and any
                applicable state securities laws or under an exemption from such
                registration requirements;

            
	
              (k)

            	
              the
                Subscriber and the Subscriber’s advisor(s) have had a reasonable
                opportunity to ask questions of and receive answers from the Company
                in
                connection with the distribution of the Shares hereunder, and to
                obtain
                additional information, to the extent possessed or obtainable without
                unreasonable effort or expense, necessary to verify the accuracy
                of the
                information about the Company;

            
	
              (l)

            	
              the
                books and records of the Company were available upon reasonable notice
                for
                inspection, subject to certain confidentiality restrictions, by the
                Subscriber during reasonable business hours at its principal place
                of
                business, and all documents, records and books in connection with
                the
                distribution of the Shares hereunder have been made available for
                inspection by the Subscriber, the Subscriber’s lawyer and/or
                advisor(s);

            
	
              (m)

            	
              the
                Subscriber will indemnify and hold harmless the Company and, where
                applicable, its directors, officers, employees, agents, advisors
                and
                shareholders, from and against any and all loss, liability, claim,
                damage
                and expense whatsoever (including, but not limited to, any and all
                fees,
                costs and expenses whatsoever reasonably incurred in investigating,
                preparing or defending against any claim, lawsuit, administrative
                proceeding or investigation whether commenced or threatened) arising
                out
                of or based upon any representation or warranty of the Subscriber
                contained herein, the Questionnaire or in any document furnished
                by the
                Subscriber to the Company in connection herewith being untrue in
                any
                material respect or any breach or failure by the Subscriber to comply
                with
                any covenant or agreement made by the Subscriber to the Company in
                connection therewith;

            
	
              (n)

            	
              none
                of the Shares are listed on any stock exchange or automated dealer
                quotation system and no representation has been made to the Subscriber
                that any of the Shares will become listed on any stock exchange or
                automated dealer quotation system; 

            
	
              (o)

            	
              in
                addition to resale restrictions imposed under U.S. securities laws,
                there
                are additional restrictions on the Subscriber’s ability to resell the
                Shares under the B.C. Act and Multilateral Instrument 45-102 adopted
                by
                the British Columbia Securities Commission;

            
	
              (p)

            	
              the
                Company will refuse to register any transfer of the Shares not made
                in
                accordance with the provisions of Regulation S, or pursuant to an
                effective registration statement under the 1933 Act or pursuant to
                an
                available exemption from the registration requirements of the 1933
                Act;

            
	
              (q)

            	
              the
                statutory and regulatory basis for the exemption claimed for the
                offer
                Shares, although in technical compliance with Regulation S, would
                not be
                available if the offering is part of a plan or scheme to evade the
                registration provisions of the 1933 Act; 

            
	
              (r)

            	
              the
                Subscriber has been advised to consult the Subscriber’s own legal, tax and
                other advisors with respect to the merits and risks of an investment
                in
                the Shares and
                with respect to applicable resale restrictions, and it is solely
                responsible (and the Company is not in any way responsible) for compliance
                with:

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    -
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      -

     

    

      
        	
                (i)

              	
                 
                  any applicable laws of the jurisdiction in which the Subscriber
                  is
                  resident in connection with the distribution of the Shares hereunder,
                  and

              
	
                (ii)

              	
                 
                  applicable resale restrictions;
                  and

              

      

    

     

    
      	
              (s)

            	
              this
                Subscription Agreement is not enforceable by the Subscriber unless
                it has
                been accepted by the Company.

            

    

     

    6.  Representations,
      Warranties and Covenants of the Subscriber

     

    
      	
              (a)

            	
              The
                Subscriber hereby represents and warrants to and covenants with the
                Company (which representations, warranties and covenants shall survive
                the
                Closing) that:

            
	
              (b)

            	
              the
                Subscriber has the legal capacity and competence to enter into and
                execute
                this Subscription Agreement and to take all actions required pursuant
                hereto and, if the Subscriber is a corporation, it is duly incorporated
                and validly subsisting under the laws of its jurisdiction of incorporation
                and all necessary approvals by its directors, shareholders and others
                have
                been obtained to authorize execution and performance of this Subscription
                Agreement on behalf of the Subscriber;

            
	
              (c)

            	
              the
                entering into of this Subscription Agreement and the transactions
                contemplated hereby do not result in the violation of any of the
                terms and
                provisions of any law applicable to, or the constating documents
                of, the
                Subscriber or of any agreement, written or oral, to which the Subscriber
                may be a party or by which the Subscriber is or may be
                bound;

            
	
              (d)

            	
              the
                Subscriber has duly executed and delivered this Subscription Agreement
                and
                it constitutes a valid and binding agreement of the Subscriber enforceable
                against the Subscriber;

            
	
              (e)

            	
              if
                the Subscriber is resident in British Columbia and is not an Accredited
                Investor, the Subscriber is (check
                one or more of the following boxes):

            

    

     

    
      	
               

            	
              (A)

            	
              a
                director, officer, employee or control person of the
                Company

            	
              o

            	
               

            
	
               

            	
              (B)

            	
              a
                spouse, parent, grandparent, brother, sister or child of a director,
                senior officer or control person of the Company

            	
              o

            	
               

            
	
               

            	
              (C)

            	
              a
                close personal friend of a director, senior officer or control person
                of
                the Company

            	
              [
                X
                ]

            	
               

            
	
               

            	
              (D)

            	
              a
                close business associate of a director, senior officer or control
                person
                of the Company

            	
              [
                X
                ]

            	
               

            
	
              (f)

            	
              if
                the Subscriber has checked one or more of boxes B, C or D in paragraph
                6.1(d) above, the director(s), senior officer(s), or control person(s)
                of
                the Company with whom the Subscriber has the relationship is
                :

            
	
               

            	
               

            	
               

            	
               

            	
               

            

    

     

    
      	
                              Mahmood
                Mawji, VP-Finance

            

    

     

    (Fill
      in the name of each director. senior officer and control person which you have
      the above-mentioned relationship with).

    

      
        	
                (g)

              	
                the
                  Subscriber is not a U.S. Person;

              
	
                (h)

              	
                the
                  Subscriber is not acquiring the Shares for the account or benefit
                  of,
                  directly or indirectly, any U.S. Person;

              
	
                (i)

              	
                the
                  Subscriber is resident in the jurisdiction set out under the heading
“Name
                  and Address of Subscriber” on the signature page of this Subscription
                  Agreement;

              

      

    

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    -
      6
      -

     

     

    
      	
              (j)

            	
              the
                sale of the Shares to the Subscriber as contemplated in this Subscription
                Agreement complies with or is exempt from the applicable securities
                legislation of the jurisdiction of residence of the
                Subscriber;

            
	
              (k)

            	
              the
                Subscriber is acquiring the Shares for investment only and not with
                a view
                to resale or distribution and, in particular, it has no intention
                to
                distribute either directly or indirectly any of the Shares in the
                United
                States or to U.S. Persons; 

            
	
              (l)

            	
              the
                Subscriber is outside the United States when receiving and executing
                this
                Subscription Agreement and is acquiring the Shares as principal for
                the
                Subscriber’s own account (except for the circumstances outlined in
                paragraph 6(o)), for investment purposes only, and not with a view
                to, or
                for, resale, distribution or fractionalisation thereof, in whole
                or in
                part, and no other person has a direct or indirect beneficial interest
                in
                such Shares;

            
	
              (m)

            	
              the
                Subscriber is not an underwriter of, or dealer in, the common shares
                of
                the Company, nor is the Subscriber participating, pursuant to a
                contractual agreement or otherwise, in the distribution of the
                Shares;

            
	
              (n)

            	
              the
                Subscriber (i) is able to fend for him/her/itself in the Subscription;
                (ii) has such knowledge and experience in business matters as to
                be
                capable of evaluating the merits and risks of its prospective investment
                in the Shares; and (iii) has the ability to bear the economic risks
                of its
                prospective investment and can afford the complete loss of such
                investment;

            
	
              (o)

            	
              if
                the Subscriber is acquiring the Shares as a fiduciary or agent for
                one or
                more investor accounts:

            
	
               

            	
              (i)

            	
              the
                Subscriber has sole investment discretion with respect to each such
                account and it has full power to make the foregoing acknowledgements,
                representations and agreements on behalf of such account,
                and

            
	
               

            	
              (ii)

            	
              the
                investor accounts for which the Subscriber acts as a fiduciary or
                agent
                satisfy the definition of an “Accredited Investor”, as the term is defined
                Multilateral Instrument 45-103 adopted by the British Columbia Securities
                Commission;

            
	
              (p)

            	
              the
                Subscriber acknowledges that the Subscriber has not acquired the
                Shares as
                a result of, and will not itself engage in, any “directed selling efforts”
                (as defined in Regulation S under the 1933 Act) in the United States
                in
                respect of any of the Shares which would include any activities undertaken
                for the purpose of, or that could reasonably be expected to have
                the
                effect of, conditioning the market in the United States for the resale
                of
                any of the Shares; provided, however, that the Subscriber may sell
                or
                otherwise dispose of any of the Shares pursuant to registration of
                any of
                the Shares pursuant to the 1933 Act and any applicable state securities
                laws or under an exemption from such registration requirements and
                as
                otherwise provided herein;

            

    

     

    
      	
              (q)

            	
              the
                Subscriber is not aware of any advertisement of any of the Shares;
                and

            	
               

            
	
              (r)

            	
              no
                person has made to the Subscriber any written or oral
                representations:

            	
               

            
	
               

            	
              (i)

            	
              that
                any person will resell or repurchase any of the Shares;

            	
               

            
	
               

            	
              (ii)

            	
              that
                any person will refund the purchase price of any of the
                Shares;

            
	
               

            	
              (iii)

            	
              as
                to the future price or value of any of the Shares; or

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            

    

     

    
      	
              (iv)

            	
              that
                any of the Shares will be listed and posted for trading on any stock
                exchange or automated dealer quotation system or that application
                has been
                made to list and post any of the Shares of the Company on any stock
                exchange or automated dealer quotation
                system.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

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      7
      -

     

     

     

    7. Acknowledgement
      and Waiver

     

    7.1            The
      Subscriber has acknowledged that the decision to purchase the Shares was solely
      made on the basis of publicly available information contained in the Public
      Record. The Subscriber hereby waives, to the fullest extent permitted by law,
      any rights of withdrawal, rescission or compensation for damages to which the
      Subscriber might be entitled in connection with the distribution of any of
      the
      Shares.

     

    8. Legending
      of Subject Shares

     

    8.1            The
      Subscriber hereby acknowledges that that upon the issuance thereof, and until
      such time as the same is no longer required under the applicable securities
      laws
      and regulations, the certificates representing any of the Shares will bear
      legends in substantially the following form:

     

    “THESE
      SHARES WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S.
      PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). ACCORDINGLY, NONE OF THE
      SHARES TO WHICH THIS CERTIFICATE RELATES HAVE BEEN REGISTERED UNDER THE 1933
      ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY
      BE
      OFFERED OR SOLD IN THE UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS
      (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
      OR
      PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
      REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE
      WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS
      INVOLVING THE SHARES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933
      ACT.”

     

    “Unless
      permitted under securities legislation, the holder of the securities shall
      not
      trade the securities before the earlier of (i) the date that is 12 months and
      a
      day after the date the issuer first becomes a reporting issuer in any of
      Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and
      Saskatchewan, if the issuer is a SEDAR filer; and (ii) the date that is 12
      months and a day after the later of (A) the distribution date, and (B) the
      date
      the issuer became a reporting issuer in the local jurisdiction of the purchaser
      of the securities that are the subject of the trade.”

     

     

     

    8.2            The
      Subscriber hereby acknowledges and agrees to the Company making a notation
      on
      its records or giving instructions to the registrar and transfer agent of the
      Company in order to implement the restrictions on transfer set forth and
      described in this Subscription Agreement.

     

    9. Costs

     

    9.1            The
      Subscriber acknowledges and agrees that all costs and expenses incurred by
      the
      Subscriber (including any fees and disbursements of any special counsel retained
      by the Subscriber) relating to the purchase of the Shares shall be borne by
      the
      Subscriber.

     

    10. Governing
      Law

     

    10.1           This
      Subscription Agreement is governed by the laws of the Province of British
      Columbia. The Subscriber, in its personal or corporate capacity and, if
      applicable, on behalf of each beneficial purchaser for whom it is acting,
      irrevocably attorns to the jurisdiction of the courts of the Province of British
      Columbia.

     

    11. Survival

     

    11.1           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 parties hereto notwithstanding the
      completion of the purchase of the Shares by the Subscriber pursuant
      hereto.

     

    
      12. Assignment

       

      12.1 This
        Subscription Agreement is not transferable or assignable.

       

       

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

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      8
      -

     

     

     

    13. Severability

     

    13.1           The
      invalidity or unenforceability of any particular provision of this Subscription
      Agreement shall not affect or limit the validity or enforceability of the
      remaining provisions of this Subscription Agreement.

     

    14. Entire
      Agreement

     

    14.1           Except
      as expressly provided in this Subscription Agreement and in the agreements,
      instruments and other documents contemplated or provided for herein, this
      Subscription Agreement contains the entire agreement between the parties with
      respect to the sale of the Shares and there are no other terms, conditions,
      representations or warranties, whether expressed, implied, oral or written,
      by
      statute or common law, by the Company or by anyone else.

     

    15. Notices

     

    15.1           All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been duly given if mailed or transmitted by any standard form
      of
      telecommunication. Notices to the Subscriber shall be directed to the address
      on
      page Error! Bookmark not defined. and notices to the Company shall be
      directed to it at Service Air Group Inc., 5455 Airport Road South, Richmond,
      British Columbia, V7B 1B5 Attention: Jag Dhilon, Fax No. (604)
      233-7030.

     

    16. Counterparts
      and Electronic Means

     

    This
      Subscription Agreement may be executed in any number of counterparts, each
      of
      which, when so executed and delivered, shall constitute an original and all
      of
      which together shall constitute one instrument. Delivery of an executed copy
      of
      this Agreement by electronic facsimile transmission or other means of electronic
      communication capable of producing a printed copy will be deemed to be execution
      and delivery of this Agreement as of the date hereinafter set
      forth.

     

    17. Delivery
      Instructions

    
      	
              17.1

            	
              The
                Subscriber hereby directs the Company to deliver the Share Certificates
                to:

            
	
               

            	
              ***As
                per item 17.3

            	
               

            
	
               

            	
               

            	
               

            	
               

            

    

    (name)

     

    (address)

     

    17.2           The
      Subscriber hereby directs the Company to cause the Shares to be registered
      on
      the books of the Company as follows:

    
      	
              ***As
                per item 17.3

            

    

    (name)

     

    (address)

    

    17.3 Schedule
      of Subscriber(s), Full Legal Name, Address, Number of shares subscribed for
      and
      purchase price:

    

    

    17.4      
      

     

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

     

     

    
      	
              Subscriber
                Name

            	
              Subscriber’s
                Address

            	
              Number
                of Shares

            	
              Purchase
                Price

            
	
              Dilbag
                S Mand

            	
              625
                63rd Ave East Vancouver B.C. V5X 2K3

            	
              1,000

            	
              $1,000.00

            
	
              Surjinder
                S Johal

            	
              896
                East 53rd Ave Vancouver B.C. V5X 1L8

            	
              4,000

            	
              $4,000.00

            
	
              Shiro
                K Johal

            	
              1055
                64th Ave East Vancouver B.C. V5X 2W6

            	
              1,000

            	
              $1,000.00

            
	
              Madho
                Singh Mannan

            	
              6408
                Elgin St Vancouver B.C. V5W 3K3

            	
              1,000

            	
              $1,000.00

            
	
              Lakbir
                S Johal

            	
              896
                East 53rd Ave Vancouver B.C. V5X 1L8

            	
              1,000

            	
              $4,000.00

            
	
              Devki
                Nandan

            	
              7657
                Prince Edward St Vancouver B.C. V5X 3R4

            	
              2,000

            	
              $2,000.00

            
	
              E.Patricia
                Connor

            	
              8933
                112th Street Delta B.C. V4C 4X5

            	
              5,000

            	
              $5,000.00

            
	
              Jag
                Dhillon

            	
              1415-54Th
                Street, Delta, BC, Canada V4M 3H6

            	
              4,125,000

            	
              $412.50

            
	
              TOTAL:

            	
               

            	
              4,143,000

            	
              $18,412.50

            

    

     

    

    IN
      WITNESS WHEREOF
      the
      Subscriber has duly executed this Subscription Agreement as of the date of
      acceptance by the Company;

    

    

    
      	
              Subscriber
                Name

            	
              Signature

            
	
              Dilbag
                S Mand

            	
              /s/
                Dilbag S Mand

            
	
              Surjinder
                S Johal

            	
              /s/
                Surjinder S Johal

            
	
              Shiro
                K Johal

            	
              /s/
                Shiro K Johal

            
	
              Madho
                Singh Mannan

            	
              /s/
                Madho Singh Mannan

            
	
              Lakbir
                S Johal

            	
              /s/
                Lakbir S Johal

            
	
              Devki
                Nandan

            	
              /s/
                Devki Nandan

            
	
              E.Patricia
                Connor

            	
              /s/
                E.Patricia Connor

            
	
              Jag
                Dhillon

            	
              /s/
                Jag Dhillon

            
	
              TOTAL:

            	
              TOTAL:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    -
      9
      -

     

    A
      C C E P T A N C E

     

    The
      above-mentioned Subscription Agreement in respect of the Shares is hereby
      accepted by SERVICE AIR GROUP INC.

     

    DATED
      at,
      Richmond, the Dec 08, 2006

     

     

     SERVICE
      AIR GROUP INC.

     

    
      	
              Per:

            	
              /s/
                Mahmood Mawji (VP)

            
	
               

            	
              Authorized
                Signatory

            	
               

            

    

     

     

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    -
      11
      -

     

     

    EXHIBIT
      A

     

    MULTILATERAL
      INSTRUMENT 45-103

     

    ACCREDITED
      INVESTOR QUESTIONNAIRE

     

    The
      purpose of this Questionnaire is to assure the Company that the undersigned
      (the
“Subscriber”) will meet certain requirements for the registration and prospectus
      exemptions provided for under Multilateral Instrument 45-103 (“MI 45-103”), as
      adopted by the British Columbia Securities Commission and the Alberta Securities
      Commission, in respect of a proposed private placement of securities by the
      Company (the “Transaction”). The Company will rely on the information contained
      in this Questionnaire for the purposes of such determination.

     

    The
      undersigned Subscriber covenants, represents and warrants to the Company
      that:

    
      	
              1.

            	
              the
                Subscriber has such knowledge and experience in financial and business
                matters as to be capable of evaluating the merits and risks of the
                Transaction and the Subscriber is able to bear the economic risk
                of loss
                arising from such Transaction;

            
	
              2.

            	
              the
                Subscriber satisfies one or more of the categories of “accredited
                investor” (as that term is defined in MI 45-103) indicated below (please
                check the appropriate box):

            
	
               

            	
              o

            	
              an
                individual who beneficially owns, or who together with a spouse
                beneficially own, financial assets (as defined in MI 45-103) having
                an
                aggregate realizable value that, before taxes but net of any related
                liabilities, exceeds CDN.$1,000,000;

            
	
               

            	
              o

            	
              an
                individual whose net income before taxes exceeded CDN.$200,000 in
                each of
                the two more recent years or whose net income before taxes combined
                with
                that of a spouse exceeded $300,000 in each of those years and who,
                in
                either case, has a reasonable expectation of exceeding the same net
                income
                level in the current year;

            
	
               

            	
              o

            	
              an
                individual registered or formerly registered under the Securities
                Act (British
                Columbia), or under securities legislation in another jurisdiction
                of
                Canada, as a representative of a person or company registered under
                the
                Securities
                Act
                (British Columbia), or under securities legislation in another
                jurisdiction of Canada, as an adviser or dealer, other than a limited
                market dealer registered under the Securities
                Act
                (Ontario); 

            
	
               

            	
              o

            	
              a
                Canadian financial institution as defined in National Instrument
                14-101,
                or an authorized foreign bank listed in Schedule III of the Bank
                Act
                (Canada);

            
	
               

            	
              o

            	
              the
                Business Development Bank of Canada incorporated under the Business
                Development Bank Act
                (Canada);

            
	
               

            	
              o

            	
              an
                association under the Cooperative
                Credit Associations Act
                (Canada) located in Canada;

            
	
               

            	
              o

            	
              a
                subsidiary of any company referred to in any of the foregoing categories,
                where the company owns all of the voting securities of the subsidiary,
                except the voting securities required by law to be owned by directors
                of
                that subsidiary;

            
	
               

            	
              o

            	
              a
                person or company registered under the Securities
                Act
                (British Columbia), or under securities legislation of another
                jurisdiction of Canada, as an adviser or dealer, other than a limited
                market dealer registered under the Securities
                Act
                (Ontario);

            
	
               

            	
              o

            	
              a
                pension fund that is regulated by either the Office of the Superintendent
                of Financial Institutions (Canada) or a provincial pension commission
                or
                similar regulatory authority;

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    -
      12
      -

     

     

    
      	
               

            	
              o

            	
              
                an
                  entity organized in a foreign jurisdiction that is analogous to
                  any of the
                  entities referred to in any of the foregoing categories in form
                  and
                  function;

              

            
	
               

            	
              o

            	
              
                the
                  government of Canada or a province, or any crown corporation or
                  agency of
                  the government of Canada or a province;

              

            
	
               

            	
              o

            	
              
                a
                  municipality, public board or commission in
                  Canada;

              

            
	
               

            	
              o

            	
              
                a
                  national, federal, state, provincial, territorial or municipal
                  government
                  of or in any foreign jurisdiction, or any agency
                  thereof;

              

            
	
               

            	
              o

            	
              
                a
                  registered charity under the Income
                  Tax Act
                  (Canada);

              

            
	
               

            	
              o

            	
              
                a
                  corporation, limited partnership, limited liability partnership,
                  trust or
                  estate, other than a mutual fund or non-redeemable investment fund,
                  that
                  had net assets of at least CDN.$5,000,000 as reflected on its most
                  recently prepared financial statements;

              

            
	
               

            	
              o

            	
              
                a
                  mutual fund or non-redeemable investment fund that, in British
                  Columbia,
                  distributes it securities only to persons or companies that are
                  accredited
                  investors;

              

            
	
               

            	
              o

            	
              
                a
                  mutual fund or non-redeemable investment fund that, in British
                  Columbia,
                  distributes its securities under a prospectus for which a receipt
                  has been
                  issued by the executive director of the British Columbia Securities
                  Commission; or

              

            
	
               

            	
              o

            	
              
                a
                  person or company in respect of which all of the owners of interests,
                  direct or indirect, legal or beneficial, are persons or companies
                  that are
                  accredited
                  investors.

              

            

     

     

    The
      Subscriber acknowledges and agrees that the Subscriber may be required by the
      Company to provide such additional documentation as may be reasonably required
      by the Company and its legal counsel in determining the Subscriber’s eligibility
      to acquire the Shares under relevant Legislation.

     

    IN
      WITNESS WHEREOF, the undersigned has executed this Questionnaire as of the
      ________ day of __________________, 2006.

     

     

     

    
      	
              If
                a Corporation, Partnership or Other Entity:

            	
              If
                an Individual:

            

    

     

     

     

    
      	
              Print
                or Type Name of Entity

            	
              Signature

            

    

     

     

     

     

    
      	
              Signature
                of Authorized Signatory

            	
                                                           
                Print or Type Name

            

    

     

     

     

     

    Type
      of
      EntityAmendment to Stock Purchase Agreement

    Amendment
      to Stock Purchase Agreement and Share Exchange

    

    This
      Amendment to the Stock Purchase Agreement and Share Exchange (the “Amendment”)
      dated November 28, 2006, by and among Artcraft V., Inc., a Delaware Corporation
      with its principle place of business located at Baimang Checking Station
      1st
      Building, South Mountiain Xili Town, Shenzhen, People’s Republic of China
      (“Artcraft”), Top Interest International Limited, a BVI Corporation with its
      principle place of business at Wondial Building, 6 South Keji road, High-Tech
      Industrial Parkm Shennan Road, Shenzhen , People’s Republic of China (“Top
      Interest”), and Zu Da Xu, the sole shareholder of Top Interest (the
“Shareholder,” and collectively with Top Interest and Artcraft, the
“Parties”).

    

    RECITALS:

    

    A. WHEREAS,
      Artcraft
      and Top Interest entered into a Stock Purchase Agreement and Share Exchange
      dated November 7, 2005, (the “Agreement”), whereby Artcraft acquired all of the
      outstanding shares of Top Interest and Top Interest became a wholly owned
      subsidiary of Artcraft and in connection therewith Artcraft issued 10,000,000
      shares of Common stock to Top Interest.

    

    B. WHEREAS,
      all of
      the parties to the Agreement desire to amend the terms of the Agreement as
      set
      forth herein.

    

    NOW,
      THEREFORE, in consideration of the mutual promises contained in this Amendment
      and other valuable consideration, the receipt of which is acknowledged, the
      parties to this Agreement agree as follows:

    

    	1.  	
            Section
              3.2 Issuance of Artcraft Common Shares
              -
              The terms of Section 3.2 of the Agreement are hereby stricken, removed
              and
              caused to have no effect as between the Parties. Section 3.2 is hereby
              amended to read as follows:

          

    

    In
      exchange for all of the Top Interest Common Shares tendered pursuant to Section
      3.1, Artcraft shall issue to Zu
      Da Xu,
the
      sole
      shareholder of Top Interest, 10,000,000 shares of Artcraft Common Stock. Such
      shares are restricted in accordance with Rule 144 of the 1933 Securities
      Act.

    

    

    	2.  	
            Remainder
              of the Agreement
              -
              any portion of the Agreement not so specifically amended in this Amendment
              shall remain the same. Nothing in this Amendment shall be construed
              as to
              limit any other section of the Agreement, PROVIDED THAT, any conflict
              between any section of the Agreement and this Amendment shall be construed
              so as this Amendment is the controlling
              document.

          

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Amendment to be executed entered into as of
      the
      date first above written.

     

    ARTCRAFT
      V CORP

    

    

    By:
      /s/
      Li
      Te Xiao                            

    Li
      Te
      Xiao, President       

    

    TOP
      INTEREST INTERNATIONAL LIMITED

    

    By:
      /s/
      Robin Yanhong                       

    Robin
      Yanhong Li, President

    

    

    /s/
      Zu
      Da Xu                                 

    Zu
      Da Xu,
      Individually

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