Document:

Filed by sedaredgar.com - Megawest Energy Corp. - Exhibit 4.38

MEGAWEST ENERGY CORP.

U.S. EQUITY INCENTIVE PLAN

Amended and Restated June 5, 2008 

TABLE OF CONTENTS 

	1.
      	PURPOSE
      	1
      
	2.
      	ADMINISTRATION
      	1
      
	3.
      	ELIGIBILITY
      	3
      
	4.
      	STOCK
      	3
      
	5.
      	TERMS
      AND CONDITIONS OF AWARDS 	4
      
	6.
      	EFFECTIVE
      DATE; AMENDMENT; SHAREHOLDER APPROVAL 	18
      
	7.
      	NO
      OBLIGATIONS TO EXERCISE INCENTIVE 	19
      
	8.
      	NO
      RIGHT TO AWARDS OR TO EMPLOYMENT 	19
      
	9.
      	APPLICATION
      OF FUNDS 	19
      
	10.
      	INDEMNIFICATION
      OF PLAN ADMINISTRATOR 	19
      
	11.
      	AMENDMENT
      OF PLAN 	20
      

MEGAWEST ENERGY CORP.

U.S. EQUITY INCENTIVE PLAN

This Megawest Energy Corp. U.S. Equity Incentive Plan (the
“Plan”) provides for the grant of options to acquire common shares (the “Common
Shares”) in the capital of Megawest Energy Corp., a corporation continued under
the laws of the Province of Alberta (the “Corporation”), stock appreciation
rights, restricted stock units, performance awards, and other awards, whether
granted singly, in combination, or in tandem (“Awards”, each individually
referred to herein as an “Incentive”). Stock options granted under this Plan
that qualify under Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”) are referred to in this Plan as “Incentive Stock Options” and stock
options that do not qualify under Section 422 of the Code are referred to as
“Non-Qualified Stock Options”. Incentive Stock Options and Non-Qualified Stock
Options granted under this Plan are collectively referred to as “Options”. 

1. PURPOSE 

1.1 The purpose of this Plan is to retain the services of
valued key employees and consultants of the Corporation and such other persons
as the Plan Administrator (as defined below) shall select in accordance with
Section 2 below, and to encourage such persons to acquire a greater proprietary
interest in the Corporation, thereby strengthening their incentive to achieve
the objectives of the shareholders of the Corporation, and to serve as an aid
and inducement in the hiring of new employees and to provide an equity incentive
to consultants and other persons selected by the Plan Administrator. 

1.2 This Plan shall at all times be subject to all legal
requirements relating to the administration of equity incentive plans, if any,
under applicable corporate laws, applicable United States federal and state
securities laws, the Code, the rules of any applicable stock exchange or stock
quotation system, and the rules of any foreign jurisdiction applicable to
Options granted to residents therein (collectively, the “Applicable Laws”). 

2. ADMINISTRATION 

2.1 This Plan shall be administered initially by the Plan
Administrator, provided, however, that to the extent necessary to comply with
Applicable Law, the Plan shall be administered by a committee composed of two
(2) or more members of the Board of Directors of the Corporation (the “Board”),
which committee (the “Committee”) may be an executive, compensation or other
committee, including a separate committee especially created for this purpose.
For purposes of the Plan, the “Plan Administrator” means, initially, the Vice
President Finance & Controller of the Corporation, and thereafter, means
such director or other senior officer or employee of the Corporation as may be
designated as “Plan Administrator” by the Board from time to time. With respect
to any Awards where grant of the Award (or decisions with respect to the Award)
must be made by the Committee, any references in this Plan to the Plan
Administrator shall be deemed to refer to the Committee.

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2.2 If and so long as the Common Shares are registered under
Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) and the Corporation wishes to grant Incentive Stock
Options, then the Board shall consider in selecting the membership of any
Committee, with respect to any persons subject or likely to become subject to
Section 16 of the Exchange Act, the provisions regarding (a) “outside directors”
as contemplated by Section 162(m) of the Code, and (b) “Non-Employee Directors”
as contemplated by Rule 16b-3 under the Exchange Act. 

2.3 Any Committee designated by the Board shall have the powers
and authority vested in the Board hereunder (including the power and authority
to interpret any provision of the Plan or of any Award). The members of any such
Committee shall serve at the pleasure of the Board. A majority of the members of
the Committee shall constitute a quorum, and all actions of the Committee shall
be taken by a majority of the members present. Any action may be taken by a
written instrument signed by all of the members of the Committee and any action
so taken shall be fully effective as if it had been taken at a meeting. 

2.4 Subject to the provisions of this Plan and any Applicable
Laws, and with a view to effecting the purpose of the Plan, the Plan
Administrator shall have sole authority, in its absolute discretion, to: 

(a) construe and interpret this Plan; 

(b) define the terms used in the Plan; 

(c) prescribe, amend and rescind the rules and regulations
relating to this Plan; 

(d) correct any defect, supply any omission or reconcile any
inconsistency in this Plan; 

(e) grant Awards under this Plan; 

(f) determine the individuals to whom Awards shall be granted
under this Plan and, if granted an Option, whether the Option is granted as an
Incentive Stock Option or a Non-Qualified Stock Option; 

(g) determine the time or times at which Awards shall be
granted under this Plan; 

(h) determine the number of Common Shares subject to each
Award, the exercise price of each Incentive (if applicable), the duration of
each Incentive and the times at which each Incentive shall become exercisable
(if applicable); 

(i) determine all other terms and conditions of the Awards; and

(j) make all other determinations and interpretations necessary
and advisable for the administration of the Plan. 

2.5 All decisions, determinations and interpretations made by
the Plan Administrator shall be binding and conclusive on all participants in
the Plan and on their legal representatives, heirs and beneficiaries. 

- 3 - 

3. ELIGIBILITY 

3.1 Incentive Stock Options may be granted to any individual
who, at the time the Option is granted, is an Employee of the Corporation or any
Related Corporation (as defined below). For purposes of this Plan, “Employee”
means common law employee (as defined in accordance with the regulations and
Revenue Rulings then applicable under Section 3401(c) of the Code) of the
Corporation or any Related Corporation. 

3.2 Non-Qualified Stock Options may be granted to Employees and
to such other persons who are not Employees as the Plan Administrator shall
select, subject to any Applicable Laws. 

3.3 Stock Appreciation Rights (“SARs”), Restricted Stock Units
(“RSUs”), Performance Awards and Other Awards may be granted to Employees and to
such other persons who are not Employees as the Plan Administrator shall select,
subject to any Applicable Laws. 

3.4 Notwithstanding anything to the contrary contained herein,
Awards may only be granted to a person who is not an Employee or Non-Employee
Director, if such person is performing advisory or consulting services for the
Corporation or a Related Corporation, with or without compensation, provided
that bona fide services must be rendered by such person and such services shall
not be rendered in connection with the offer or sale of securities in a capital
raising transaction. Notwithstanding anything contained elsewhere herein, a
consultant providing investor relations services shall not be eligible to
receive awards covering more than two percent (2%) of the Corporation’s issued
and outstanding Common Shares, with a vesting of one quarter (1/4) every three
(3) months. No consultant providing services other than investor relations
services shall receive Options to acquire more than two percent (2%) of the
issued and outstanding Common Shares. 

3.5 Awards may be granted in substitution for outstanding
Awards of another corporation in connection with the merger, consolidation,
acquisition of property or stock or other reorganization between such other
corporation and the Corporation or any subsidiary of the Corporation.

3.6 Any person to whom an Award is granted under this Plan is
referred to as a “Participant” and any person to whom an Option is granted under
this Plan may be referred to as an “Optionee”. Any person who is the owner of an
Option, SAR, or RSU is referred to as a “Holder”. 

3.7 As used in this Plan, the term “Related Corporation” shall
mean any corporation (other than the Corporation) that is a “Parent Corporation”
of the Corporation or “Subsidiary Corporation” of the Corporation, as those
terms are defined in Sections 424(e) and 424(f), respectively, of the Code (or
any successor provisions) and the regulations thereunder (as amended from time
to time). 

4. STOCK 

4.1 The Plan Administrator is authorized to grant Awards to
acquire up to a total of 10% of the issued and outstanding Common Shares from
time to time less the number of options granted under the Corporation’s equity
incentive plan for Canadian directors and employees, 1,000,000 

- 4 - 

Shares of which can be granted as Incentive Stock Options. The
number of Common Shares with respect to which Awards may be granted hereunder is
subject to adjustment as set forth in Section 5.2(m) hereof. In the event that
any outstanding Award expires or is terminated for any reason, the Common Shares
allocable to the unexercised portion of such Award may again be subject to an
Award granted to the same Participant or to a different person eligible under
Section 3 of this Plan; provided however, that any cancelled Awards will be
counted against the maximum number of shares with respect to which Awards may be
granted to any particular person as set forth in Section 5.2(a) hereof. Awards
that may be satisfied either by the issuance of Common Shares or by cash or
other consideration shall be counted against the maximum number of Common Shares
that may be issued under this Plan only during the period that the Award is
outstanding or to the extent the Award is ultimately satisfied by the issuance
of Common Shares. Awards will not reduce the number of Common Shares that may be
issued pursuant to this Plan if the settlement of the Award will not require the
issuance of Common Shares, as, for example, a SAR that can be satisfied only by
the payment of cash. Common Shares to be issued may be made available from
authorized but unissued common shares. During the term of this Plan, the
Corporation will at all times reserve and keep available the number of Common
Shares that shall be sufficient to satisfy the requirements of this Plan.
Notwithstanding any provisions of the Plan to the contrary, only shares
forfeited back to the Corporation, shares canceled on account of termination,
expiration or lapse of an Award, or shares withheld for payment of applicable
employment tax withholding obligations resulting from the exercise of an Option
shall again be available for grant of Incentive Stock Options under the Plan,
but shall not increase the maximum number of shares described in this Section
4.1 as the maximum number of Common Shares that may be delivered pursuant to
Incentive Stock Options.

5. TERMS AND CONDITIONS OF AWARDS 

5.1 Each Award granted under this Plan shall be evidenced by a
written agreement approved by the Plan Administrator (each, an “Agreement”).
Agreements may contain such provisions setting forth the Incentive or Incentives
being granted, the total number of Common Shares subject to the Incentive(s),
the Exercise Price (if applicable), the exercise period, the Date of Grant
(terms defined below), and such other terms, provisions, limitations, and
performance objectives, as are approved by the Plan Administrator, but not
inconsistent with this Plan or any Applicable Laws. Each Award granted under
this Plan shall be subject to the restrictions of any stock exchange that the
Shares of the Corporation trade upon. The grant of an Award to a Participant
shall not be deemed either to entitle the Participant to, or to disqualify the
Participant from, receipt of any other Award under the Plan. 

5.2 All Options shall comply with the following requirements:

(a) Number of Shares and Type of Option 

Each Agreement shall state the number of Common Shares to which
it pertains and whether the Option is intended to be an Incentive Stock Option
or a Non-Qualified Stock Option; provided that: 

- 5 - 

(i) the number of Common Shares that
may be reserved pursuant to the exercise of Options granted to any person shall
not exceed 5% of the issued and outstanding Common Shares of the Corporation;

(ii) in the absence of action to the
contrary by the Plan Administrator in connection with the grant of an Option,
all Options shall be Non-Qualified Stock Options; 

(iii) the aggregate Fair Market Value
(determined at the Date of Grant, as defined below) of the Common Shares with
respect to which Incentive Stock Options are exercisable for the first time by
the Optionee during any calendar year (granted under this Plan and all other
Incentive Stock Option plans of the Corporation, a Related Corporation or a
predecessor corporation) shall not exceed U.S.$100,000, or such other limit as
may be prescribed by the Code as it may be amended from time to time (the
“Annual Limit”); and 

(iv) any portion of an Option which
exceeds the Annual Limit shall not be void but rather shall be a Non-Qualified
Stock Option. 

(b) Date of Grant 

Each Agreement shall state the date the Plan Administrator has
deemed to be the effective date of the Option for purposes of this Plan (the
“Date of Grant”). 

(c) Exercise Price 

Each Agreement shall state the price per Common Share at which
it is exercisable (the “Exercise Price”). The Plan Administrator shall act in
good faith to establish the exercise price in accordance with Applicable Laws;
provided that: 

(i) the Exercise Price for any Option
shall not be less than the Fair Market Value (as defined below) per Common Share
at the Date of Grant;

(ii) with respect to Incentive Stock
Options granted to greater-than-ten percent (>10%) shareholders of the
Corporation (as determined with reference to Section 424(d) of the Code), the
Exercise Price shall not be less than one hundred ten percent (110%) of the Fair
Market Value per Common Share at the Date of Grant; and 

(iii) Options granted in substitution
for outstanding options of another corporation in connection with the merger,
consolidation, acquisition of property or stock or other reorganization
involving such other corporation and the Corporation or any subsidiary of the
Corporation may be granted with an Exercise Price equal to the exercise price
for the substituted option of the other corporation, subject to any adjustment
consistent with the terms of the transaction pursuant to which the substitution
is to occur, and provided that for Incentive Stock Options: 

A. the excess of the aggregate Fair
Market Value of the shares subject to the option immediately after the
substitution over the aggregate Exercise Price of such shares is not more than
the excess of the aggregate Fair Market Value of all 

- 6 - 

shares subject to the option
immediately before such substitution over the aggregate Exercise Price of such
shares, and 

B. the substituted option does not
give the employee additional benefits which he did not have under the previously
held Option; and 

(iv) For purposes of the Plan, “Fair
Market Value” means, as of a particular date, determined in accordance with the
requirements of Section 422 of the Code (to the extent Incentive Stock Options
are granted) and/or Section 409A of the Code and the regulations and other
guidance issued thereunder: (A) if the Common Shares are listed on any
established national securities exchange, the volume weighted average sales
prices of the Common Shares for the five (5) day period prior to and including
the Date of Grant; or (B) if the foregoing is not applicable, such amount as may
be determined by the Plan Administrator (acting on the advice of an Independent
Third Party, should the Plan Administrator elect in its sole discretion to
utilize an Independent Third Party for this purpose), in good faith, to be the
fair market value per Common Share. For purposes of the Plan, “Independent Third
Party” means an individual or entity independent of the Corporation having
experience in providing investment banking or similar appraisal or valuation
services and with expertise generally in the valuation of securities or other
property for purposes of this Plan. The Plan Administrator may utilize one or
more Independent Third Parties. 

(d) Duration of Options 

At the time of the grant of the Option, the Plan Administrator
shall designate, subject to Section 5.2(g) below, the expiration date of the
Option, which date shall not be later than ten (10) years from the Date of Grant
or, such earlier date as may be required by the restrictions of any stock
exchange that the Corporation’s Shares trade upon; provided, that the
expiration date of any Incentive Stock Option granted to a greater-than-ten
percent (>10%) shareholder of the Corporation (as determined with reference
to Section 424(d) of the Code) shall not be later than five (5) years from the
Date of Grant. In the absence of action to the contrary by the Plan
Administrator in connection with the grant of a particular Option, and except in
the case of Incentive Stock Options as described above, all Options granted
under this Section 5 shall expire ten (10) years from the Date of Grant. 

(e) Vesting Schedule 

No Option shall be exercisable until it has vested. Subject to
Section 5.2(f) hereof, the vesting schedule for each Option shall be specified
by the Plan Administrator at the time of grant of the Option prior to the
provision of services with respect to which such Option is granted;
provided, that if no vesting schedule is specified at the time of grant,
the Option shall vest according to the following schedule: 

	Number of Years 	Percentage of Total 
	Following
      Date of Grant 	Option Vested 

- 7 - 

	One 	25% 
	Two 	50% 
	Three 	75% 
	Four 	100% 

The Plan Administrator may specify a
vesting schedule for all or any portion of an Option based on the achievement of
performance objectives established in advance of the commencement by the
Optionee of services related to the achievement of the performance objectives.
Performance objectives shall be expressed in terms of objective criteria,
including but not limited to, one or more of the following: return on equity,
return on assets, share price, market share, sales, earnings per share, costs,
net earnings, net worth, inventories, cash and cash equivalents, gross margin or
the Corporation’s performance relative to its internal business plan.
Performance objectives may be in respect of the performance of the Corporation
as a whole (whether on a consolidated or unconsolidated basis), a Related
Corporation, or a subdivision, operating unit, product or product line of either
of the foregoing. Performance objectives may be absolute or relative and may be
expressed in terms of a progression or a range. An Option that is exercisable
(in full or in part) upon the achievement of one or more performance objectives
may be exercised only following written notice to the Optionee and the
Corporation by the Plan Administrator that the performance objective has been
achieved. 

(f) Acceleration of Vesting 

Upon the occurrence of a Change of Control of the Corporation,
all unexpired and unvested Options shall immediately vest and shall be
exercisable for the acquisition of Common Shares. Notwithstanding any other
provision hereof, the vesting of one or more outstanding Options may be
accelerated by the Board at such times and in such amounts as it shall determine
in its sole discretion. 

For the purposes hereof the term “Change of Control” shall
mean, in respect of the Corporation, the occurrence of any of: 

(i) the purchase or acquisition of
Common Shares and/or securities convertible into Common Shares or carrying the
right to acquire Common Shares (“Convertible Securities”) as a result of which a
person, group of persons or persons acting jointly or in concert, or any
Affiliates (as such term is defined in the Business Corporations Act
(Alberta)) or Associates (as such term is defined in the Securities Act
(Alberta)) of any such person, group of persons or any of such persons acting
jointly or in concert (collectively, the “Subject Persons”) beneficially own or
exercise control or direction over Common Shares and/or Convertible Securities
such that, after the conversion of the Convertible Securities beneficially owned
by the Subject Persons, the Subject Persons would have the right to cast more
than 50% of the votes attached to all Common Shares; provided that, the
acquisition of Common Shares or Convertible Securities pursuant to 

- 8 - 

the issuance of securities from
treasury which results in a Subject Person, or Subject Persons, beneficially
owning or exercising control or direction over 50% of the votes attached to all
Common Shares (assuming the conversion of the Convertible Securities
beneficially owned by Subject Persons) where the Board continues to be
supportive of the direction of the Corporation under the management of the Chief
Executive Officer, shall not constitute a “Change of Control”; or 

(ii) approval by the shareholders
of:

A. an amalgamation, arrangement,
merger or other consolidation or combination of the Corporation with another
entity pursuant to which the shareholders of the Corporation immediately
thereafter do not own securities of the successor or continuing entity which
would entitle them to cast more than 50% of the votes attaching to all of the
Common Shares; 

B. a liquidation, dissolution or
winding up of the Corporation; 

C. the sale, lease or other
disposition of all or substantially all of the assets of the Corporation; 

D. the election at a meeting of the
Corporation’s shareholders of a number of directors, who were not included in
the slate for election as directors approved by the prior Board, and who would
represent a majority of the Board; or 

E. the appointment of a number of
directors which would represent a majority of the Board and which were nominated
by any holder of voting shares of the Corporation or by any group of holders of
voting shares of the Corporation acting jointly or in concert and not approved
by the Corporation’s prior Board. 

(iii) Notwithstanding the foregoing, in
the event an Option issued under the Plan is subject to Section 409A of the
Code, then, in lieu of the foregoing definition and to the extent necessary to
comply with the requirements of Section 409A of the Code, the definition of
“Change of Control” for purposes of such Option shall be the definition provided
for under Section 409A of the Code and the regulations or other guidance issued
thereunder. 

(g) Term of Option

(i) At the time of grant of an Option,
the Board shall designate the date after which an Option cannot be exercised
(the “Expiry Date”), provided that the Expiry Date of an Option shall be the
earlier of the date so fixed by the Board at the time the Option is awarded and
the date established, if applicable, in paragraphs A. to D. below. 

A. Death: In the event that the
Optionee should die while he or she is still providing services to the
Corporation or a Related Corporation, the Expiry Date for all unvested Options
shall be the date of the Optionee’s death, and the Expiry Date for all vested
Options shall be one (1) year from the date of the Optionee’s death. Upon the
death of an Optionee, any vested Options held by the Optionee 

- 9 - 

shall be exercisable only by the
person or persons to whom such Optionee’s rights under such Option shall pass by
the Optionee’s will or by the laws of descent and distribution of the Optionee’s
domicile at the time of death and only until such Options terminate as provided
in the foregoing sentence. 

B. Ceasing to Hold Office: In
the event that the Optionee holds his or her Option as a director of the
Corporation and such Optionee ceases to be a director of the Corporation and
such Optionee ceases to be a director of the Corporation other than by reason of
death, the Expiry Date for all unvested Options shall be the date he or she
ceases to be director of the Corporation, and the Expiry Date of the vested
Options shall be the 30th day following the date the Optionee ceases to be a
director of the Corporation unless the Optionee ceases to be a director of the
Corporation but continues to be engaged by the Corporation as an Employee, in
which case the Expiry Date shall remain unchanged, or unless the Optionee ceases
to be a director of the Corporation as a result of: 

(1) ceasing to meet the qualifications
set forth in section 105(1) of the Business Corporations Act (Alberta) or such
other qualifications required by the corporate laws in any other jurisdiction
under which the Corporation is continued or amalgamated; or 

(2) by order of the Alberta Securities
Commission or any regulatory body having jurisdiction to so order, 

in which case the Expiry Date shall be
the date the Optionee ceases to be a director of the Corporation. 

C. Ceasing to be Employed: In
the event that the Optionee holds his or her Option as an Employee of the
Corporation or Related Corporation and such Optionee ceases to be an Employee of
the Corporation or Related Corporation other than by reason of death, or if the
Employee is a party providing investor relations services or management or
consulting services to the Corporation or Related Corporation and ceases to
continue providing such services to the Corporation or Related Corporation, the
Expiry Date for all unvested Options shall be the date the Optionee ceases to be
an Employee of the Corporation or Related Corporation or ceases to continue
providing such investor relations, management and consulting services to the
Corporation or Related Corporation shall be the 30th day following the date the
Optionee ceases to be an Employee of the Corporation or Related Corporation or
ceases to continue providing such investor relations, management and consulting
services to the Corporation or Related Corporation, unless the Optionee ceases
to be an Employee of the Corporation or Related Corporation or ceases to
continue providing such services to the Corporation or Related Corporation as a
result of: 

(1) termination for cause; or 

- 10 - 

(2) by order of the Alberta Securities
Commission or any regulatory body having jurisdiction to so order, 

in which case the Expiry Date shall be
the date the Optionee ceases to be an Employee of the Corporation or Related
Corporation or ceases to continue providing such services.

D. Extension of Expiry Date:
Notwithstanding any other provision hereof, the Expiry Date of one or more
outstanding Non-Qualified Stock Options may be extended up to ninety days (90)
by the Plan Administrator or the Board, in the absence of such, at such times as
it shall determine in its sole discretion, subject to the requirements of
Applicable Law.

E. Transfer of Employment: For
purposes of this Plan, transfer of employment between or among the Corporation
and/or any Related Corporation shall not be deemed to constitute a termination
of employment with the Corporation or any Related Corporation. Employment shall
be deemed to continue while the Optionee is on military leave, sick leave or
other bona fide leave of absence (as determined by the Plan
Administrator). The foregoing notwithstanding, employment shall not be deemed to
continue beyond the first ninety (90) days of such leave, unless the Optionee’s
re-employment rights are guaranteed by statute or by contract. 

(h) Exercise of Options 

(i) Options shall be exercisable, in
full or in part, at any time after vesting, until termination. If less than all
of the Common Shares included in the vested portion of any Option are purchased,
the remainder may be purchased at any subsequent time prior to the expiration of
the Option term. Only whole Common Shares may be issued pursuant to an Option,
and to the extent that an Option covers less than one (1) share, it is
unexercisable. 

(ii) Options or portions thereof may be
exercised by giving written notice to the Corporation, which notice shall
specify the number of Common Shares to be purchased, and be accompanied by
payment in the amount of the aggregate exercise price for the Common Shares so
purchased, which payment shall be in the form specified in Section 5.2(i) below.
The Corporation shall not be obligated to issue, transfer or deliver a
certificate representing Common Shares to the Holder of any Option, until
provision has been made by the Holder, to the satisfaction of the Corporation,
for the payment of the aggregate exercise price for all Common Shares for which
the Option shall have been exercised and for satisfaction of any tax withholding
obligations associated with such exercise. During the lifetime of an Optionee,
Options are exercisable only by the Optionee. 

(i) Payment upon Exercise of Option 

Upon the exercise of any Option, the aggregate Exercise Price
shall be paid to the Corporation in cash or by certified or cashier’s check. In
addition, if pre-approved in writing by the Plan 

- 11 - 

Administrator who may arbitrarily withhold consent, the Holder
may pay for all or any portion of the aggregate Exercise Price by complying with
one or more of the following alternatives: 

(i) by delivering a properly executed
exercise notice together with irrevocable instructions to a broker promptly to
sell or margin a sufficient portion of the Common Shares and deliver directly to
the Corporation the amount of sale or margin loan proceeds to pay the exercise
price; or 

(ii) by complying with any other
payment mechanism approved by the Plan Administrator at the time of exercise.

(j) No Rights as a Shareholder 

A Holder shall have no rights as a shareholder of the
Corporation with respect to any Common Shares covered by an Option until such
Holder becomes a record holder of such Common Shares, irrespective of whether
such Holder has given notice of exercise. Subject to the provisions of Section
5.2(m) hereof, no rights shall accrue to a Holder and no adjustments shall be
made on account of dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distributions or other rights declared on, or
created in, the Common Shares for which the record date is prior to the date the
Holder becomes a record holder of the Common Shares covered by the Option,
irrespective of whether such Holder has given notice of exercise. 

(k) Non-transferability of Options 

(i) Options granted under this Plan and
the rights and privileges conferred by this Plan may not be transferred,
assigned, pledged or hypothecated in any manner (whether by operation of law or
otherwise) other than by will or by applicable laws of descent and distribution
or, in the case of a Non-Qualified Stock Option, pursuant to a qualified
domestic relations order, and shall not be subject to execution, attachment or
similar process; provided however that, subject to applicable laws: 

A. for Non-Qualified Stock Options,
any Agreement may provide or be amended to provide that a Non-Qualified Stock
Option to which it relates is transferable without payment of consideration to
immediate family members of the Optionee or to trusts or partnerships or limited
liability companies established exclusively for the benefit of the Optionee and
the Optionee’s immediate family members;

B. for all Options, the Optionee’s
heirs or administrators may exercise any portion of the outstanding Options
within one year of the Optionee’s death. 

(ii) Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of any Option or of any right
or privilege conferred by this Plan contrary to the provisions hereof, or upon
the sale, levy or any attachment or similar process upon the rights and
privileges conferred by this Plan, such Option shall thereupon terminate and
become null and void. 

- 12 - 

(l) Securities Regulation and Tax Withholding 

(i) Common Shares shall not be issued
with respect to an Option unless the exercise of such Option and the issuance
and delivery of such Common Shares shall comply with all Applicable Laws, and
such issuance shall be further subject to the approval of counsel for the
Corporation with respect to such compliance, including the availability of an
exemption from prospectus and registration requirements for the issuance and
sale of such Common Shares. The inability of the Corporation to obtain from any
regulatory body the authority deemed by the Corporation to be necessary for the
lawful issuance and sale of any Common Shares under this Plan, or the
unavailability of an exemption from prospectus and registration requirements for
the issuance and sale of any Common Shares under this Plan, shall relieve the
Corporation of any liability with respect to the non-issuance or sale of such
Common Shares. 

(ii) As a condition to the exercise of
an Option, the Plan Administrator may require the Holder to represent and
warrant in writing at the time of such exercise that the Common Shares are being
purchased only for investment and without any then-present intention to sell or
distribute such Common Shares. If necessary under Applicable Laws, the Plan
Administrator may cause a stop-transfer order against such Common Shares to be
placed on the stock books and records of the Corporation, and a legend
indicating that the Common Shares may not be pledged, sold or otherwise
transferred unless an opinion of counsel is provided stating that such transfer
is not in violation of any Applicable Laws, may be stamped on the certificates
representing such Common Shares in order to assure an exemption from
registration. The Plan Administrator also may require such other documentation
as may from time to time be necessary to comply with applicable securities laws.
THE CORPORATION HAS NO OBLIGATION TO UNDERTAKE REGISTRATION IN THE UNITED STATES
OF OPTIONS, SHARES OR THE COMMON SHARES ISSUABLE UPON THE EXERCISE OF OPTIONS.

(iii) The Holder shall pay to the
Corporation by certified or cashier’s check, promptly upon exercise of an Option
or, if later, the date that the amount of such obligations becomes determinable,
all applicable federal, state, local and foreign withholding taxes that the Plan
Administrator, in its discretion, determines to result upon exercise of an
Option or from a transfer or other disposition of Common Shares acquired upon
exercise of an Option or otherwise related to an Option or Common Shares
acquired in connection with an Option. Upon approval of the Plan Administrator,
a Holder may satisfy such obligation by complying with one or more of the
following alternatives selected by the Plan Administrator: 

A. by delivering to the Corporation
Common Shares previously held by such Holder or by the Corporation withholding
Common Shares otherwise deliverable pursuant to the exercise of the Option,
which Common Shares received or withheld shall have a fair market value at the
date of exercise (as determined by the Plan Administrator) equal to any
withholding tax obligations arising as a result of such exercise, transfer or
other disposition; or 

- 13 - 

B. by complying with any other payment
mechanism approved by the Plan Administrator from time to time. 

(iv) The issuance, transfer or delivery
of certificates representing Common Shares pursuant to the exercise of Options
may be delayed, at the discretion of the Plan Administrator, until the Plan
Administrator is satisfied that the applicable requirements of all Applicable
Laws and the withholding provisions of the Code have been met and that the
Holder has paid or otherwise satisfied any withholding tax obligation as
described in Section 5.2(l)(iii) above. 

(m) Adjustments Upon Changes In Capitalization 

(i) The aggregate number and class of
shares for which Options may be granted under this Plan, the number and class of
shares covered by each outstanding Option, and the exercise price per share
thereof (but not the total price), and each such Option, shall all be
proportionately adjusted for any increase or decrease in the number of issued
Common Shares of the Corporation resulting from: 

A. a subdivision or consolidation of
Common Shares or any like capital adjustment, or 

B. the issuance of any Common Shares,
or securities exchangeable for or convertible into Common Shares, to the holders
of all or substantially all of the outstanding Common Shares by way of a stock
dividend (other than the issue of Common Shares, or securities exchangeable for
or convertible into Common Shares, to holders of Common Shares pursuant to their
exercise of options to receive dividends in the form of Common Shares, or
securities convertible into Common Shares, in lieu of dividends paid in the
ordinary course on the Common Shares). 

(ii) Except as provided in Section
5.2(m)(iii) hereof, upon a merger (other than a merger of the Corporation in
which the holders of Common Shares immediately prior to the merger have the same
proportionate ownership of common shares in the surviving corporation
immediately after the merger), consolidation, acquisition of property or stock,
separation, reorganization (other than a mere re-incorporation or the creation
of a holding Corporation) or liquidation of the Corporation, as a result of
which the shareholders of the Corporation, receive cash, shares or other
property in exchange for or in connection with their Common Shares, any Option
granted hereunder shall terminate, but the Holder shall have the right to
exercise such Holder’s Option immediately prior to any such merger,
consolidation, acquisition of property or shares, separation, reorganization or
liquidation, and to be treated as a shareholder of record for the purposes
thereof, to the extent the vesting requirements set forth in the Option
agreement have been satisfied (or accelerated pursuant to Section 5.2(f)
hereof). 

(iii) If the shareholders of the
Corporation receive shares in the capital of another corporation (“Exchange
Shares”) in exchange for their Common Shares in any transaction involving a
merger (other than a merger of the Corporation in which the 

- 14 - 

holders of Common Shares immediately
prior to the merger have the same proportionate ownership of Common Shares in
the surviving corporation immediately after the merger), consolidation,
acquisition of property or shares, separation or reorganization (other than a
mere re-incorporation or the creation of a holding Corporation), all Options
granted hereunder shall be converted into options to purchase Exchange Shares
unless the Corporation and the corporation issuing the Exchange Shares, in their
sole discretion, determine that any or all such Options granted hereunder shall
not be converted into options to purchase Exchange Shares but instead shall
terminate in accordance with, and subject to the Holder’s right to exercise the
Holder’s Options pursuant to, the provisions of Section 5.2(m)(ii) . The amount
and price of converted options shall be determined by adjusting the amount and
price of the Options granted hereunder in the same proportion as used for
determining the number of Exchange Shares the holders of the Common Shares
receive in such merger, consolidation, acquisition or property or stock,
separation or reorganization. Unless accelerated by the Board, the vesting
schedule set forth in the option agreement shall continue to apply to the
options granted for the Exchange Shares. 

(iv) In the event of any adjustment in
the number of Common Shares covered by any Option, any fractional shares
resulting from such adjustment shall be disregarded and each such Option shall
cover only the number of full shares resulting from such adjustment. 

(v) All adjustments pursuant to Section
5.2(m) shall be made by the Plan Administrator, and its determination as to what
adjustments shall be made, and the extent thereof, shall be final, binding and
conclusive. 

(vi) The grant of an Option shall not
affect in any way the right or power of the Corporation to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure, to merge, consolidate or dissolve, to liquidate or to sell or
transfer all or any part of its business or assets. 

(n) Disqualifying Disposition of Incentive Stock Options 

If Common Shares acquired upon exercise of an Incentive Stock
Option are disposed of by an Optionee prior to the expiration of either two (2)
years from the Date of Grant of such Option or one (1) year from the transfer of
Common Shares to the Optionee pursuant to the exercise of such Option, or in any
other disqualifying disposition within the meaning of Section 422 of the Code,
such Optionee shall notify the Corporation in writing of the date and terms of
such disposition. A disqualifying disposition by an Optionee shall not affect
the status of any other Options granted under the Plan as an Incentive Stock
Option within the meaning of Section 422 of the Code. 

5.3 Stock Appreciation Rights 

(a) In General 

The Plan Administrator may grant SARs to any Participant,
either as a separate Award or in connection with an Option. SARs shall be
subject to such terms and conditions as the Plan 

- 15 - 

Administrator shall impose, provided that such terms and
conditions are (i) not inconsistent with the Plan, and (ii) to the extent a SAR
issued under the Plan is subject to Section 409A of the Code, in compliance with
the applicable requirements of Section 409A of the Code and the regulations or
other guidance issued thereunder. Unless otherwise provided in Sections 5.3(b)
and 5.3(c) below, to the extent applicable as may be determined by the Plan
Administrator in its sole discretion, the provisions in Sections 5.2(b) through
5.2(m) shall apply analogously to the grant of a SAR. 

(b) Terms of a SAR 

The grant of the SAR may provide that the Holder may be paid
for the value of the SAR either in cash or in Common Shares, or a combination
thereof. In the event of the exercise of a SAR payable in Common Shares, the
holder of the SAR shall receive that number of whole Common Shares having an
aggregate Fair Market Value on the date of exercise equal to the value obtained
by multiplying (i) the difference between the Fair Market Value of a Common
Share on the date of exercise over the Exercise Price as set forth in such SAR
(or other value specified in the agreement granting the SAR), by (ii) the number
of Common Shares as to which the SAR is exercised, with a cash settlement to be
made for any fractional Common Shares. The Exercise Price for any Common Share
subject to a SAR may be equal to or greater than the Fair Market Value of the
share on the Date of Grant. The Plan Administrator, in its sole discretion, may
place a ceiling on the amount payable upon exercise of a SAR, but any such
limitation shall be specified at the time that the SAR is granted.

(c) Exercise of a SAR 

Subject to the conditions of this Section 5.3(c) and such
administrative regulations as the Plan Administrator may from time to time
adopt, a SAR may be exercised by the delivery of written notice to the Plan
Administrator setting forth the number of Common Shares with respect to which
the SAR is to be exercised and the date of exercise, which shall be at least
three (3) days after giving such notice unless an earlier time shall have been
mutually agreed upon. Subject to the terms of the Award Agreement and only if
permissible under Section 409A of the Code and the regulations or other guidance
issued thereunder (or, if not so permissible, at such time as permitted by
Section 409A of the Code and the regulations or other guidance issued
thereunder), the Participant shall receive from the Corporation in exchange
therefor in the discretion of the Plan Administrator, and subject to the terms
of the Award Agreement: 

(i) cash in an amount equal to the
excess (if any) of the Fair Market Value (as of the date of the exercise, or if
provided in the Award Agreement, conversion, of the SAR) per Common Share over
the Exercise Price specified in such SAR, multiplied by the total number of
Common Shares of the SAR being surrendered;

(ii) that number of Common Shares
having an aggregate Fair Market Value (as of the date of the exercise, or if
provided in the Award Agreement, conversion, of the SAR) equal to the amount of
cash otherwise payable to the Participant, with a cash settlement to be made for
any fractional share interests; or

- 16 - 

(iii) the Corporation may settle such
obligation in part with Common Shares and in part with cash. 

The distribution of any cash or Common Shares pursuant to the
foregoing sentence shall be made at such time as set forth in the Award
Agreement.

5.4 Restricted Stock Units 

Restricted Stock Units may be awarded or sold to any
Participant under such terms and conditions as shall be established by the Plan
Administrator, provided, however, that such terms and conditions are (i) not
inconsistent with the Plan, and (ii) to the extent a Restricted Stock Unit
issued under the Plan is subject to Section 409A of the Code, in compliance with
the applicable requirements of Section 409A of the Code and the regulations or
other guidance issued thereunder. Unless otherwise provided below, to the extent
applicable as may be determined by the Plan Administrator in its sole
discretion, the provisions in Sections 5.2(b) through 5.2(m) shall apply
analogously to the grant of a RSU. 

The grant of the Restricted Stock Units may provide that the
Holder may be paid for the value of the Restricted Stock Unit either in cash or
in Common Shares, or a combination thereof. Restricted Stock Units shall be
subject to such restrictions as the Plan Administrator determines, including,
without limitation, (i) a prohibition against sale, assignment, transfer,
pledge, hypothecation or other encumbrance for a specified period; or (ii) a
requirement that the Holder forfeit (or in the case of Common Shares or rights
sold to the Participant, resell to the Corporation at cost) such shares or
rights in the event the Participant ceases to be employed or otherwise provide
services to the Corporation during the period of restriction.

5.5 Performance Awards 

(a) Grant of Performance Award

The Plan Administrator may grant Performance Awards to one or
more Participants, including Common Shares in lieu of a cash performance bonus,
under such terms and conditions as shall be established by the Plan
Administrator and not otherwise inconsistent with the Plan or Applicable Law.
The terms and conditions of Performance Awards shall be specified at the time of
the grant and may include provisions establishing the performance period, the
applicable Performance Goals (as defined below) to be achieved during a
performance period, and the maximum or minimum settlement values. If the
Performance Award is to be in Common Shares, the Performance Awards may provide
for the issuance of the Common Shares at the time of the grant of the
Performance Award or at the time of the certification by the Plan Administrator
that the Performance Goals for the performance period have been met. Performance
Awards may be paid in cash, Common Shares, or other consideration, or any
combination thereof. If payable in Common Shares, the consideration for the
issuance of such shares may be the achievement of the performance objective
established at the time of the grant of the Performance Award. Performance
Awards may be payable in a single payment or in installments and may be payable
at a specified date or dates or upon attaining the performance objective. The
extent to which any applicable performance objective has been achieved shall be
conclusively determined by the Plan Administrator. 

- 17 - 

If it is determined to be necessary in order to satisfy Section
162(m) of the Code, at the time of the grant of a Performance Award (other than
an Option) and to the extent permitted under Section 162(m) of the Code and the
regulations issued thereunder, the Committee shall provide for the manner in
which the Performance Goals shall be reduced to take into account the negative
effect on the achievement of specified levels of the Performance Goals which may
result from enumerated corporate transactions, extraordinary events, accounting
changes and other similar occurrences which were unanticipated at the time the
Performance Goal was initially established. In no event, however, may the
Committee increase the amount earned under a Performance Award, unless the
reduction in the Performance Goals would reduce or eliminate the amount to be
earned under the Performance Award and the Committee determines not to make such
reduction or elimination.

With respect to a Performance Award that is not intended to
satisfy the requirements of Code Section 162(m), if the Plan Administrator
determines, in its sole discretion, that the established performance measures or
objectives are no longer suitable because of a change in the Corporation’s
business, operations, corporate structure, or for other reasons that the Plan
Administrator deemed satisfactory, the Plan Administrator may modify the
performance measures or objectives and/or the performance period.

(b) Performance Awards may be valued by reference to the Fair
Market Value (as determined in accordance with Section 5.2(c) of a Common Share
or according to any formula or method deemed appropriate by the Plan
Administrator, in its sole discretion, including, but not limited to,
achievement of Performance Goals or other specific financial, production, sales
or cost performance objectives that the Plan Administrator believes to be
relevant to the Corporation’s business and/or remaining in the employ of the
Corporation for a specified period of time.

(c) Notwithstanding the foregoing, in order to comply with the
requirements of Section 162(m) of the Code, no Participant may receive in any
calendar year Performance Awards which have an aggregate value of more than
$250,000, and if such Performance Awards involve the issuance of Common Shares,
said aggregate value shall be based on the Fair Market Value of such shares on
the time of the grant of the Performance Award.

(d) Awards of Restricted Stock Units, Performance Awards and
Other Awards (whether relating to cash or Common Shares) under the Plan may be
made subject to the attainment of Performance Goals relating to one or more
business criteria which, where applicable, shall be within the meaning of
Section 162(m) of the Code and consist of one or more or any combination of the
following criteria: cash flow; cost; revenues; sales; ratio of debt to debt plus
equity; net borrowing, credit quality or debt ratings; profit before tax;
economic profit; earnings before interest and taxes; earnings before interest,
taxes, depreciation and amortization; gross margin; earnings per share (whether
on a pre-tax, after-tax, operational or other basis); operating earnings;
capital expenditures; expenses or expense levels; economic value added; ratio of
operating earnings to capital spending or any other operating ratios; free cash
flow; net profit; net sales; net asset value per share; the accomplishment of
mergers, acquisitions, dispositions, public offerings or similar extraordinary
business transactions; sales growth; price of the Corporation’s 

- 18 - 

Common Shares; return on assets, equity or shareholders’
equity; market share; inventory levels, inventory turn or shrinkage; or total
return to shareholders (“Performance Criteria”). Any Performance Criteria may be
used to measure the performance of the Corporation as a whole or any business
unit of the Corporation and may be measured relative to a peer group or index.
Any Performance Criteria may include or exclude (i) extraordinary, unusual
and/or non-recurring items of gain or loss, (ii) gains or losses on the
disposition of a business, (iii) changes in tax or accounting regulations or
laws, (iv) the effect of a merger or acquisition, as identified in the
Corporation’s quarterly and annual earnings releases, or (v) other similar
occurrences. In all other respects, Performance Criteria shall be calculated in
accordance with the Corporation’s financial statements, under generally accepted
accounting principles, or under a methodology established by the Plan
Administrator prior to the issuance of an Award which is consistently applied
and identified in the audited financial statements, including footnotes, or the
Compensation Discussion and Analysis section of the Corporation’s annual report.
However, to the extent Section 162(m) of the Code is applicable, the Committee
may not in any event increase the amount of compensation payable to an
individual upon the attainment of a Performance Goal.

(e) To the extent applicable and not otherwise contradictory to
the provisions of this Section 5.5 as may be determined by the Plan
Administrator in its sole discretion, the provisions in Sections 5.2(b) through
5.2(m) shall apply analogously to the grant of a Performance Award. 

5.6 Other Awards 

The Plan Administrator may grant to any Participant other forms
of Awards, based upon, payable in, or otherwise related to, in whole or in part,
Common Shares, if the Plan Administrator determines that such other form of
Award is consistent with the purpose and restrictions of this Plan. The terms
and conditions of such other form of Award shall be specified by the grant. Such
Other Awards may be granted for no cash consideration, for such minimum
consideration as may be required by applicable law, or for such other
consideration as may be specified by the grant. To the extent applicable as may
be determined by the Plan Administrator in its sole discretion, the provisions
in Sections 5.2(b) through 5.2(m) shall apply analogously to the grant of any
other Award. 

5.7 Tandem Awards 

The Plan Administrator may grant two or more Incentives in one
Award in the form of a “tandem Award,” so that the right of the Participant to
exercise one Incentive shall be cancelled if, and to the extent, the other
Incentive is exercised. For example, if an Option and a SAR are issued in a
tandem Award, and the Participant exercises the SAR with respect to 100 Common
Shares, the right of the Participant to exercise the related Option shall be
cancelled to the extent of 100 Common Shares. 

6. EFFECTIVE DATE; AMENDMENT; SHAREHOLDER APPROVAL 

6.1 Awards may be granted by the Plan Administrator from time
to time on or after the date on which this Plan is adopted by the Board (the
“Effective Date”). 

- 19 - 

6.2 Unless sooner terminated by the Board, this Plan shall
terminate on the tenth anniversary of the Effective Date. No Award may be
granted after such termination or during any suspension of this Plan. 

6.3 Any Incentive Stock Options granted by the Plan
Administrator prior to the ratification of this Plan by the shareholders of the
Corporation shall be granted subject to approval of this Plan by the holders of
a majority of the Corporation’s outstanding voting shares, voting either in
person or by proxy at a duly held shareholders’ meeting within twelve (12)
months before or after the Effective Date. If such shareholder approval is
sought and not obtained, all Incentive Stock Options granted prior thereto and
thereafter shall be considered Non-Qualified Stock Options and any Awards
granted to “covered employees” (as such term is defined by Section 162(m) of the
Code) will not be eligible for the exclusion set forth in Section 162(m) of the
Code with respect to the deductibility by the Corporation of certain
compensation. 

7. NO OBLIGATIONS TO EXERCISE INCENTIVE 

7.1 The grant of an Incentive shall impose no obligation upon
the Participant to exercise such Incentive. 

8. NO RIGHT TO AWARDS OR TO EMPLOYMENT 

8.1 Whether or not any Awards are to be granted under this Plan
shall be exclusively within the discretion of the Plan Administrator, and
nothing contained in this Plan shall be construed as giving any person any right
to participate under this Plan. The grant of an Award shall in no way constitute
any form of agreement or understanding binding on the Corporation or any Related
Corporation, express or implied, that the Corporation or any Related Corporation
will employ or contract with a Participant for any length of time, nor shall it
interfere in any way with the Corporation’s or, where applicable, a Related
Corporation’s right to terminate the Participant’s employment at any time, which
right is hereby reserved. 

9. APPLICATION OF FUNDS 

9.1 The proceeds received by the Corporation from the sale of
Common Shares issued upon the exercise of Incentives shall be used for general
corporate purposes, unless otherwise directed by the Board. 

10. INDEMNIFICATION OF PLAN ADMINISTRATOR 

10.1 In addition to all other rights of indemnification they
may have as members of the Board, the Plan Administrator, or members of the
Committee shall be indemnified by the Corporation for all reasonable expenses
and liabilities of any type or nature, including attorneys’ fees, incurred in
connection with any action, suit or proceeding to which they or any of them are
a party by reason of, or in connection with, this Plan or any Award granted
under this Plan, and against all amounts paid by them in settlement thereof
(provided that such settlement is approved by independent legal counsel selected
by the Corporation), except to the extent that such expenses relate to matters
for which it is adjudged that such Plan Administrator member is liable for
willful misconduct; provided, that within fifteen (15) days after the
institution of any such action, suit or proceeding, the Plan Administrator (or
member of the Board or the Committee) 

- 20 - 

involved therein shall, in writing, notify the Corporation of
such action, suit or proceeding, so that the Corporation may have the
opportunity to make appropriate arrangements to prosecute or defend the same.

11. AMENDMENT OF PLAN 

11.1 The Plan Administrator may, at any time, modify, amend or
terminate this Plan or modify or amend Award granted under this Plan, including,
without limitation, such modifications or amendments as are necessary to
maintain compliance with the Applicable Laws. The Plan Administrator may
condition the effectiveness of any such amendment on the receipt of shareholder
approval at such time and in such manner as the Plan Administrator may consider
necessary for the Corporation to comply with or to avail the Corporation and/or
the Participants of the benefits of any securities, tax, market listing or other
administrative or regulatory requirements. 

Effective Date: June 6, 2008Filed by sedaredgar.com - Megawest Energy Corp. - Exhibit 4.39

CANADA/OFFSHORE

SUBSCRIPTION AGREEMENT FOR COMMON SHARES

	TO: 	MegaWest Energy Corp. (the
      "Corporation") 
	 	 
	AND TO: 	Tristone Capital Inc. (the "Agent")
  

The undersigned (hereinafter referred to as the
"Subscriber") hereby irrevocably subscribes for and agrees to purchase
the number of Common Shares ("Shares") in the capital of the Corporation
set forth below for the aggregate subscription price set forth below (the
"Aggregate Subscription Price"), representing a subscription price of
US$0.60 per Share, upon and subject to the terms and conditions set forth in
"Terms and Conditions of Subscription for Shares of MegaWest Energy Corp."
attached hereto (together with the face pages and the attached Exhibits, the
"Subscription Agreement").

	 	 	 	 	 	 	 	 
	 	 
    	 	  	 	 	Number of Shares: 	 
	 	(Name of Subscriber - please print) 	 	  	 	 	 
    	 
	 	By:
	 	  	 	 	 
    	 
	 	      
      (Authorized Signature) 	 	  	 	 	Aggregate Subscription Amount: 	 
	 	  	 	  	 	 	(No. of Shares x US$0.60 per
      Share) 	
	 	 	 	 	 	 	 	 
	 	(Official Capacity or Title - please print) 	 	  	 	 	  	 
	 	  	 	  	 	 	 
    	 
	 	 
    	 	  	 	 	Disclosed Beneficial Purchaser
      Information: 	 
	 	(Please print name of individual whose
      signature appears above if 	 	 	 	 	  	 
	 	different than the name of the Subscriber
      printed above.) 	 	 	 	 	If the Subscriber is signing as agent for a
      principal pursuant to 	 
	 	  	 	  	 	 	section 3(f)(i) or 3(g) (the "Disclosed
      Beneficial Purchaser"),	 
	 	 
    	 	  	 	 	complete the following and ensure that Exhibit
      1 is completed on 	 
	 	(Subscriber's Residential Address) 	 	  	 	 	behalf of such principal or, if applicable,
      ensure that Exhibit 2 is 	 
	 	 
    	 	  	 	 	completed on behalf of such principal: 	 
	 	  	 	  	 	 	 
    	 
	 	 
    	 	  	 	 	(Name of Principal) 	 
	 	(Telephone
      Number)                                   
       (E-Mail Address)	 	 	 	 	 
    	 
	 	 
    	 	  	 	 	(Principal's Residential Address, Telephone
      Number and E-mail 	 
	 	  	 	  	 	 	Address) 	 
	 	  	 	  	 	 	 
    	 
	 	Register the Shares as set forth
      below: 	 	  	 	 	Deliver the Shares as set forth
      below: 	 
	 	  	 	  	 	 	  	 
	 	 	 	 	 	 	 	 
	 	(Name) 	 	  	 	 	(Name) 	 
	 	  	 	  	 	 	  	 
	 	 	 	 	 	 	 	 
	 	(Account reference, if applicable) 	 	  	 	 	(Account reference, if applicable) 	 
	 	  	 	  	 	 	  	 
	 	 	 	 	 	 	 	 
	 	(Address) 	 	  	 	 	(Contact Name) 	 
	 	  	 	  	 	 	  	 
	 	 	 	 	 	 	 	 
	 	  	 	  	 	 	(Address) 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

ACCEPTANCE: The Corporation hereby accepts the
subscription as set forth above on the terms and conditions contained in this
Subscription Agreement and the Corporation represents and warrants to the
Subscriber that the representations and warranties made by the Corporation to
the Agent in the Agency Agreement (as defined herein) are true and correct in
all material respects as of the Closing Date (as defined herein) (save and
except as waived by the Agent) and that the Subscriber is entitled to rely
thereon as if the Subscriber was a party thereto.

_________________________ , 2008

	MEGAWEST ENERGY CORP. 		Subscription No.: 

	 	 	 
	By: 	 	  

This agreement comprises 8 pages (not including Exhibits 1
and 2)

	 	2 	CANADA/OFFSHORE 

TERMS AND CONDITIONS OF SUBSCRIPTION FOR 
SHARES OF
MEGAWEST ENERGY CORP.

	INSTRUCTIONS: To properly complete
      this Subscription Agreement: 
	(1) 	All
      subscribers must complete all boxes on the face page; 
	(2) 	All
      Canadian subscribers subscribing as an accredited investor must complete
      and sign Exhibit 1; 
	(3) 	All
      non-Canadian subscribers must complete and sign Exhibit 2; and 
	(4) 	All
      subscribers should return their completed documents, to Tristone Capital
      Inc., Attn: Rita Sivadas at Suite 2020, 335 
	 
    	-
      8th Avenue S.W., Calgary, Alberta, T2P 1C9;
      Telephone: 403.539.4347; Fax: 403.303.8658; Email: 
	  	rsivadas@tristonecapital.com.

Terms of the Offering

1. The Subscriber acknowledges (on its own behalf and, if
applicable, on behalf of each person on whose behalf the Subscriber is
contracting) that this subscription is subject to rejection, acceptance or
allotment by the Corporation in whole or in part.

2. The Subscriber acknowledges (on its own behalf and, if
applicable, on behalf of each person on whose behalf the Subscriber is
contracting) that the Shares subscribed for by it hereunder form part of a
larger issuance and sale by the Corporation of up to 26,750,000 Shares at a
subscription price of US$0.60 per Share (the "Offering") but that
completion of the Offering is not subject to the Corporation receiving any
minimum amount of subscriptions. 

Representations, Warranties and Covenants by
Subscriber

3. The Subscriber (on its own behalf and, if applicable, on
behalf of each person on whose behalf the Subscriber is contracting) represents,
warrants and covenants to the Corporation and the Agent (and acknowledges that
the Corporation, the Agent, and their respective counsel, are relying thereon)
that both at the date hereof and at the Closing Time (as defined herein):

	(a) 	
      it has been independently advised as to restrictions with
      respect to trading in the Shares imposed by applicable securities laws,
      confirms that no representation has been made to it by or on behalf of the
      Corporation or the Agent with respect thereto, acknowledges that it is
      aware of the characteristics of the Shares, the risks relating to an
      investment therein and of the fact that it may not be able to resell the
      Shares except in accordance with limited exemptions under applicable
      securities laws and regulatory policy until expiry of the applicable
      restricted period and compliance with the other requirements of applicable
      law; and it agrees that any certificates representing the Shares are to
      bear the following legend indicating that the resale of such securities is
      restricted:

	 	 
		
      UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER
      OF THE SECURITIES MUST NOT TRADE THE SECURITIES BEFORE THE DATE WHICH IS
      FOUR MONTHS FROM THE CLOSING DATE;

	 	 
		
      and the Subscriber further acknowledges that it has been
      advised to consult its own legal counsel in its jurisdiction of residence
      for full particulars of the resale restrictions applicable to it;
    and

	 	 
	(b) 	
      it has not received or been provided with, nor has it
      requested, nor does it have any need to receive, any offering memorandum,
      any prospectus, sales or advertising literature, or any other document
      (other than an annual report, annual information form, interim report,
      information circular or any other continuous disclosure document, other
      than an offering memorandum, the content of which is prescribed by statute
      or regulation) describing or purporting to describe the business and
      affairs of the Corporation which has been prepared for delivery to, and
      review by, prospective purchasers in order to assist them in making an
      investment decision in respect of the Shares;
and

	 	3 	CANADA/OFFSHORE

	(c) 	 it has not become aware of any advertisement
        in printed media of general and regular paid circulation (or other printed
        public media), radio, television or telecommunications or other form of
        advertisement (including electronic display and the internet) with respect
        to the distribution of the Shares; and

	 	 	 
	(d) 	 it understands that the Shares are being offered
        for sale only on a "private placement" basis and that the sale and delivery
        of the Shares is conditional upon such sale being exempt from the requirements
        as to the filing of a prospectus or delivery of an offering memorandum
        or upon the issuance of such 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, as a consequence (i) certain protections,
        rights and remedies provided by applicable securities laws, including
        statutory rights of rescission or damages, will not be available to the
        Subscriber, (ii) the Subscriber is restricted from using most of the civil
        remedies available under securities legislation, (iii) the Subscriber
        may not receive information that would otherwise be required to be provided
        to it under securities legislation, and (iv) the Corporation is relieved
        from certain obligations that would otherwise apply under securities legislation;
        and

	 	 	 
	(e) 	 unless it is purchasing under section 3(f)
        or (g), it is purchasing the Shares as principal for its own account,
        not for the benefit of any other person, for investment only and not with
        a view to the resale or distribution of all or any of the Shares, it is
        resident in the jurisdiction set out as the "Subscriber's Residential
        Address" on the face page hereof and it is an "accredited investor", as
        such term is defined in National Instrument 45-106 entitled "Prospectus
        and Registration Exemptions" ("NI 45-106") promulgated under Canadian
        securities legislation, it was not created and is not being used solely
        to purchase or hold securities as an accredited investor as described
        in paragraph (m) of the definition of "accredited investor" in NI 45-106
        and has concurrently executed and delivered a Representation Letter in
        the form attached to this Subscription Agreement as Exhibit 1 and specifically
        represents and warrants that one or more of the categories set forth in
        Appendix A attached to the Representation Letter correctly, and in all
        respects, describes the Subscriber, and will describe the Subscriber as
        at the Closing Date (as defined herein), and the Subscriber has so indicated
        by initialling the category in such Appendix A which so describes it;
        or

	 	 	 
	(f) 	 if it is not purchasing as principal or pursuant
        to section 3(g), it is duly authorized to enter into this Subscription
        Agreement and to execute and deliver all documentation in connection with
        the purchase on behalf of each beneficial purchaser, each of whom is purchasing
        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 all or any of the
        Shares, it acknowledges that the Corporation may be required by law to
        disclose to certain regulatory authorities the identity of each beneficial
        purchaser of Shares for whom it may be acting, and it and each beneficial
        purchaser is resident in the jurisdiction set out as the "Subscriber's
        Residential Address" and:

	 	 	 
		 (i) 
	 it is acting as agent for a Disclosed Beneficial Purchaser,
        who is disclosed on the face page of this Subscription Agreement, who
        is resident in the jurisdiction set out as the "Principal's Residential
        Address" and who complies with section 3(e) hereof as if all references
        therein were to the Disclosed Beneficial Purchaser rather than to the
        Subscriber and the Subscriber has concurrently executed and delivered
        a Representation Letter in the form attached hereto as Exhibit 1 on behalf
        of such Disclosed Beneficial Purchaser on behalf of such Disclosed Beneficial
        Purchaser ; or

	 	 	 
		(ii)	 it is an "accredited investor" as such term is defined
        in paragraphs (p) or (q) of the definition of "accredited investor" in
        NI 45-106 and reproduced in Appendix A to Exhibit 1 of this Subscription
        Agreement (provided, however, that it is not a trust company or trust
        corporation registered under the laws of Prince Edward Island that is
        not registered or authorized under the Trust and Loan Companies Act
        (Canada) or under comparable legislation in another jurisdiction in
        Canada) and has concurrently executed and delivered a Representation Letter
        in the form attached hereto as Exhibit 1 and has initialled Appendix A
        thereto indicating that the Subscriber satisfies one of the categories
        of "accredited investor" set out in paragraphs (p) or (q) of Appendix
        A thereto; or

	 	 	 
	(g) 	 it, and each person on whose behalf the Subscriber
        is contracting, is a resident of a jurisdiction outside of both Canada
        and the United States, it has concurrently executed and delivered a Representation
        Letter in the form attached to this Subscription Agreement as Exhibit
        2 and will provide such evidence of

	 	4 	CANADA/OFFSHORE

		
      compliance with all matters described in such
      Representation Letter as the Corporation, the Agent or their respective
      counsel may request; and

	 	 	 
	(h) 	
      it acknowledges that:

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

	 	 	 
		(ii) 	
      there is no government or other insurance covering the
      Shares; and

	 	 	 
		(iii) 	
      there are risks associated with the purchase of the
      Shares; and

	 	 	 
		(iv) 	
      there are restrictions on the Subscriber's ability to
      resell the Shares and it is the responsibility of the Subscriber to find
      out what those restrictions are and to comply with them before selling the
      Shares; and

	 	 	 
		(v) 	
      the Corporation has advised the Subscriber that the
      Corporation is relying on an exemption from the requirements to provide
      the Subscriber with a prospectus and to sell securities through a person
      or company registered to sell securities under the Securities Act
      (Alberta), the Securities Act (British Columbia), The
      Securities Act, 1988 (Saskatchewan) and the Securities Act
      (Ontario) and other applicable securities laws and, as a consequence
      of acquiring securities pursuant to this exemption, certain protections,
      rights and remedies provided by the Securities Act (Alberta), the
      Securities Act (British Columbia), The Securities Act, 1988
      (Saskatchewan) and the Securities Act (Ontario) and other
      applicable securities laws, including statutory rights of rescission or
      damages, will not be available to the Subscriber; and

	 	 	 
	(i) 	
      the Shares have not been offered to the Subscriber (or
      any person on whose behalf the Subscriber is contracting) in the United
      States, and the individuals making the order to purchase the Shares and
      executing and delivering this Subscription Agreement were not in the
      United States when the order was placed and this Subscription Agreement
      was executed and delivered; and

	 	 	 
	(j) 	
      it is not a U.S. Person (as defined in Regulation S under
      the United States Securities Act of 1933, as amended (the "U.S.
      Securities Act"), which definition includes, but is not limited to, an
      individual resident in the United States, an estate or trust of which any
      executor or administrator or trustee, respectively, is a U.S. Person and
      any partnership or corporation organized or incorporated under the laws of
      the United States) and is not purchasing the Shares on behalf of, or for
      the account or benefit of, a person in the United States or a U.S. Person;
      and

	 	 	 
	(k) 	
      it is aware that the Shares have not been and will not be
      registered under the U.S. Securities Act or the securities laws of any
      state and that these securities may not be offered or sold in the United
      States without registration under the U.S. Securities Act or compliance
      with requirements of an exemption from registration and the applicable
      laws of all applicable states and acknowledges that the Corporation has no
      present intention of filing a registration statement under the U.S.
      Securities Act in respect of any of the Shares; and

	 	 	 
	(l) 	
      it undertakes and agrees that it will not offer or sell
      any of the Shares in the United States unless such securities are
      registered under the U.S. Securities Act and the securities laws of all
      applicable states of the United States or an exemption from such
      registration requirements is available, and further that it will not
      resell the Shares, except in accordance with the provisions of applicable
      securities legislation, regulations, rules, policies and orders and stock
      exchange rules; and

	 	 	 
	(m) 	
      it has not purchased the Shares as a result of any form
      of directed selling efforts in the United States, as such term is defined
      in Regulation S under the U.S. Securities Act;
and

	 	5 	CANADA/OFFSHORE

	(n) 	
      it understands and acknowledges that the Corporation (i)
      is under no obligation to be or to remain a "foreign issuer", as such term
      is defined in the U.S. Securities Act, (ii) may not, at the time the
      Subscriber sells the Shares or at any other time, be a foreign issuer, and
      (iii) may engage in one or more transactions that could cause the
      Corporation not to be a foreign issuer; and

	 	 
	(o) 	
      if it is not an individual, it pre-existed the offering
      of the Shares and has a bona fide business purpose other than the
      investment in the Shares and was not created, formed or established solely
      or primarily to acquire securities, or to permit purchases of securities
      without a prospectus, in reliance on an exemption from the prospectus
      requirements of applicable securities legislation; and

	 	 
	(p) 	
      if it is a corporation, partnership, trust,
      unincorporated association or other entity, it has the legal capacity to
      enter into and be bound by this Subscription Agreement and further
      certifies that all necessary approvals of directors, trustees,
      fiduciaries, shareholders, partners, stakeholders, holders of voting
      securities or otherwise have been given and obtained; and

	 	 
	(q) 	
      if it is an individual, it is of the full age of majority
      and is legally competent to execute this Subscription Agreement and take
      all action pursuant hereto; and

	 	 
	(r) 	
      the entering into of this Subscription Agreement and the
      transactions contemplated hereby will not result in a violation of any of
      the terms or provisions of any law applicable to the Subscriber (or any
      person on whose behalf the Subscriber is contracting), or if the
      Subscriber (or any person on whose behalf the Subscriber is contracting)
      is not a natural person, any of such person's constating documents, or any
      agreement to which such person is a party or by which it is bound;
    and

	 	 
	(s) 	
      this Subscription Agreement has been duly and validly
      authorized, executed and delivered by and constitutes a legal, valid,
      binding and enforceable obligation of the Subscriber; and

	 	 
	(t) 	
      in the case of a subscription by it for Shares acting as
      agent for a principal, it is duly authorized to execute and deliver this
      Subscription Agreement and all other necessary documentation in connection
      with such subscription on behalf of such principal and this Subscription
      Agreement has been duly authorized, executed and delivered by or on behalf
      of, and constitutes a legal, valid and binding agreement of, such
      principal; and

	 	 
	(u) 	
      it has such knowledge and experience in financial and
      business affairs as to be capable of evaluating the merits and risks of
      its investment in the Shares and is able to, and agrees to, bear the
      economic risk of loss of its investment or, where it is not purchasing as
      principal, each beneficial purchaser is able to, and agrees to, bear the
      economic risk of loss of its investment; and

	 	 
	(v) 	
      except for the representations and warranties made by the
      Corporation to the Agent in the Agency Agreement (as defined herein), it
      has relied solely upon publicly available information relating to the
      Corporation and not upon any verbal or written representation as to fact
      or otherwise made by or on behalf of the Corporation or the Agent, such
      publicly available information having been delivered to the Subscriber
      without independent investigation or verification by the Agent, and agrees
      that the Agent and the Agent's counsel assume no responsibility or
      liability of any nature whatsoever for the accuracy, adequacy or
      completeness of the publicly available information or as to whether all
      information concerning the Corporation required to be disclosed by the
      Corporation has been generally disclosed and acknowledges that the
      Corporation's counsel and the Agent's counsel are acting as counsel to the
      Corporation and the Agent, respectively, and not as counsel to the
      Subscriber (or any person on whose behalf the Subscriber is contracting);
      and

	 	 
	(w) 	
      if required by applicable securities legislation,
      regulations, rules, policies or orders or by any securities commission,
      stock exchange or other regulatory authority, the Subscriber will execute,
      deliver, file and otherwise assist the Corporation in filing, such
      reports, undertakings and other documents with respect to the issue of the
      Shares including, without limitation: (A) a Representation Letter in the
      form attached as

	 	6 	CANADA/OFFSHORE

		
      Exhibit 1 hereto; and (B) if the Subscriber, or if
      applicable, the Disclosed Beneficial Purchaser, is resident outside of
      Canada, a Representation Letter in the form attached as Exhibit 2 hereto;
      and

	 	 
	(x) 	
      the acquisition of the Shares hereunder by the Subscriber
      (and each person on whose behalf the Subscriber is contracting) will not
      result in the Subscriber (or any such person) becoming a "control person"
      in respect of the Corporation, as defined under applicable securities
      laws; and

	 	 
	(y) 	
      no person has made to the Subscriber (or any person on
      whose behalf the Subscriber is contracting) any written or oral
      representations (i) that any person will resell or repurchase the Shares
      (except in accordance with the articles of the Corporation), or (ii) that
      any person will refund the purchase price of the Shares, or (iii) as to
      the future price or value of the Shares; and

	 	 
	(z) 	
      the Aggregate Subscription Price which will be advanced
      by the Subscriber to the Agent or the Corporation hereunder will not
      represent proceeds of crime for the purposes of the Proceeds of Crime
      (Money Laundering) and Terrorist Financing Act (Canada) (the
      "PCMLA") and the Subscriber acknowledges that the Corporation may
      in the future be required by law to disclose the Subscriber's name and
      other information relating to this Agreement and the Subscriber's
      subscription hereunder, on a confidential basis, pursuant to the PCMLA;
      and to the best of its knowledge (i) none of the subscription funds to be
      provided by the Subscriber (A) have been or will be derived from or
      related to any activity that is deemed criminal under the law of Canada,
      the United States of America, or any other jurisdiction, or (B) are being
      tendered on behalf of a person or entity who has not been identified to
      the Subscriber, and (ii) it shall promptly notify the Corporation if the
      Subscriber discovers that any of such representations ceases to be true,
      and to provide the Corporation with appropriate information in connection
      therewith;

	 	 
	(aa) 	
      the Subscriber (including any person on whose behalf the
      Subscriber is contracting) has been encouraged to obtain independent
      legal, income tax and investment advice with respect to this subscription
      for the Shares and accordingly, has had the opportunity to acquire an
      understanding of the meanings of all terms contained herein relevant to
      the Subscriber (and each person on whose behalf the Subscriber is
      contracting) for purposes of giving representations, warranties and
      covenants under this Subscription Agreement; and

	 	 
	(bb) 	
      none of the securities are listed on any stock exchange
      or automated dealer quotation system and no representation has been made
      to the Subscriber that any of the Securities will become listed on any
      stock exchange or automated dealer quotation system, except that currently
      certain market makers make market in the shares of the Company's common
      stock on the OTC Bulletin Board.

Closing

4. The Subscriber agrees to deliver to Tristone Capital Inc. at
Suite 2020, 335 - 8th Avenue S.W., Calgary, Alberta T2P 1C9,
Attention: Rita Sivadas, Telephone: 403.539.4347; Fax: 403.303.8658;
Email: rsivadas@tristonecapital.com, not later than 5:00 p.m. (Calgary time) on
the day that is three business days before the Closing Date (as defined below):
(a) this duly completed and executed Subscription Agreement, including all
applicable Exhibits; and (b) a certified cheque or bank draft payable to
"Tristone Capital Inc." for the Aggregate Subscription Amount or payment of the
same amount in such other manner as is acceptable to the Agent. If this
Subscription Agreement is rejected in whole or in part, the Subscriber
acknowledges that the unused portion of the subscription amount will be promptly
returned to it without interest.

5. The sale of the Shares pursuant to this Subscription
Agreement will be completed at the offices of Macleod Dixon LLP, the
Corporation's counsel, in Calgary, Alberta at 8:00 a.m. or such other time as is
established by the Corporation and the Agent (the "Closing Time") on May
15, 2008 or such other date as is established by the Corporation and the Agent
(the "Closing Date"). If at the Closing Time the Agent is satisfied that
all of the Agent's terms and conditions for the Offering have been satisfied or
waived by them, the Agent shall deliver to the Corporation all completed
subscription agreements, including this Subscription Agreement, and deliver to
the Corporation the aggregate subscription proceeds for the Offering in
accordance with the Agency Agreement, against delivery by the Corporation of the
certificates representing the Shares and such other documentation as may be
required.

	 	7 	CANADA/OFFSHORE 

6. The Corporation and the Agent shall be entitled to rely on
an executed copy of this Subscription Agreement delivered via facsimile or
electronically (including e-mail), and acceptance by the Corporation of such
executed copy of this Subscription Agreement shall be legally effective to
create a valid and binding agreement between the Subscriber and the Corporation
in accordance with the terms hereof. In addition, this Subscription Agreement
may be executed in counterparts, each of which shall be deemed to be an original
and all of which shall constitute one and the same document. If less than a
complete copy of this Subscription Agreement is delivered to the Corporation at
the Closing Time, the Corporation and the Agent shall be entitled to assume that
the Subscriber accepts and agrees with all of the terms and conditions of this
Subscription Agreement on the pages not delivered at the Closing Time
unaltered.

General

7. The Subscriber, on its own behalf and (if applicable) on
behalf of others for whom it is contracting hereunder, agrees that the
representations, warranties and covenants of the Subscriber herein will be true
and correct both as of the Subscriber's execution of this Subscription Agreement
and as of the Closing Time and will survive the completion of the issuance of
the Shares. The representations, warranties and covenants of the Subscriber
herein are made with the intent that they be relied upon by the Corporation and
the Agent and their respective counsel in determining the eligibility of a
purchaser of Shares and the Subscriber agrees to indemnify and save harmless the
Corporation and the Agent and their respective affiliates, shareholders,
directors, officers, employees, counsel and agent against all losses, claims,
costs, expenses and damages or liabilities which any of them may suffer or incur
which are caused or arise from a breach thereof. The Subscriber undertakes to
immediately notify the Corporation at MegaWest Energy Corp., Suite 800, 926 -
5th Avenue S.W., Calgary, Alberta, T2P 0N7, Telephone: 403.984.6320;
Fax: 403.984.6343; E-mail: kelly.sledz@megawestenergy.com, Attention: Kelly
Sledz and the Agent at Tristone Capital Inc. at Suite 2020, 335 - 8th Avenue
S.W., Calgary, Alberta, T2P 1C9; Telephone: 403.539.4347; Fax: 403.303.8658;
E-mail: rsivadas@tristonecapital.com, Attention: Rita Sivadas, of any change in
any statement or other information relating to the Subscriber set forth herein
which takes place prior to the Closing Time.

8. The Subscriber acknowledges that the Agent has been
appointed by the Corporation to act as the agent of the Corporation in
connection with the Offering and, in connection therewith, the Corporation and
the Agent have entered into or will enter into an agency agreement (the
"Agency Agreement") pursuant to which the Agent, in connection with the
Offering, will receive a fee from the Corporation. The Subscriber hereby
irrevocably authorizes the Agent:

	(a) 	
      to negotiate and settle the form of any certificates to
      be delivered and any agreement to be entered into in connection with the
      Offering and to vary, amend, alter or waive, on its own behalf and on
      behalf of the purchasers of Shares, in whole or in part, or extend the
      time for compliance with, any of the conditions for completing the sale of
      the Shares in such manner and on such terms and conditions as the Agent
      may determine, acting reasonably, without in any way affecting the
      Subscriber's obligations or the obligations of such others hereunder;
      provided, however, that the Agent shall not vary, amend, alter or waive
      any such condition where to do so would result in a material adverse
      change to any of the material attributes of the Shares;

	 	 
	(b) 	
      to allocate the Shares being offered pursuant to the
      Offering and in accordance with the terms of the Agency
  Agreement;

	 	 
	(c) 	
      to act as its representative at the closing of the
      Offering with full power of substitution, as its true and lawful attorney
      and agent with the full power and authority in its place and stead to
      swear, execute, file and record any document necessary, to approve any
      opinions, certificates or other documents addressed to the Subscriber, to
      accept delivery of certificates representing the Shares on the Closing
      Date, to terminate this subscription on its behalf in the event that any
      condition precedent to the Offering has not been satisfied, to execute a
      receipt for such certificates and all other documentation, and to deliver
      such certificates to the Subscriber as set out in this Subscription
      Agreement promptly after the Closing Time; and

	 	 
	(d) 	
      to complete or correct any errors or omissions in any
      form or document provided by the Subscriber, including this Subscription
      Agreement.

	 	8 	CANADA/OFFSHORE 

9. The Subscriber acknowledges that this Subscription Agreement
and the Exhibits hereto require the Subscriber to provide certain personal
information to the Corporation. Such information is being collected by the
Corporation for the purposes of completing the private placement, which
includes, without limitation, determining the Subscriber's eligibility (or that
of any Disclosed Beneficial Purchaser) to purchase the Shares under applicable
securities laws, preparing and registering certificates representing the Shares
to be issued to the Subscriber and completing filings required by any stock
exchange or securities regulatory authority. The Subscriber's personal
information (and that of any Disclosed Beneficial Purchaser) may be disclosed by
the Corporation to (a) stock exchanges or securities regulatory authorities
(including the Ontario Securities Commission as referred to below), (b) the
Corporation's registrar and transfer agent, (c) Canadian tax authorities, and
(d) any of the other parties involved in the Offering, including legal counsel,
and may be included in record books in connection with the Offering. By
executing this Subscription Agreement, the Subscriber (on its own behalf and on
behalf of any Disclosed Beneficial Purchaser for whom it is contracting
hereunder) consents to the foregoing collection, use and disclosure of the
Subscriber's (and any Disclosed Beneficial Purchaser's) personal information.
The Subscriber (on its own behalf and on behalf of any Disclosed Beneficial
Purchaser for whom it is contracting hereunder) also consents to the filing of
copies or originals of any of the Subscriber's documents delivered in connection
with this Subscription Agreement as may be required to be filed with any stock
exchange or securities regulatory authority in connection with the transactions
contemplated hereby. The Subscriber (on its own behalf and on behalf of any
Disclosed Beneficial Purchaser for whom it is contracting hereunder) further
acknowledges that it has been notified by the Corporation (a) of the requirement
to deliver to the Ontario Securities Commission (the "OSC") the full
name, residential address and telephone number of the purchaser of the
securities, the number and type of securities purchased, the total purchase
price, the exemption relied upon and the date of distribution; (b) that this
information is being collected indirectly by the OSC under the authority granted
to it in securities legislation; (c) that this information is being collected
for the purposes of the administration and enforcement of the securities
legislation of Ontario; and (d) that the Administrative Assistant to the
Director of Corporate Finance can be contacted at Ontario Securities Commission,
Suite 1903, Box 55, 20 Queen Street West, Toronto, Ontario M5H 3S8, or at (416)
593 8086, regarding any questions about the OSC's indirect collection of this
information.

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

11. The contract arising out of this Subscription Agreement and
all documents relating thereto is governed by and construed in accordance with
the laws of the Province of Alberta and the federal laws of Canada applicable
therein. The parties irrevocably attorn to the exclusive jurisdiction of the
courts of the Province of Alberta. Time is of the essence hereof.

12. This Subscription Agreement represents 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.

13. The terms and provisions of this Subscription Agreement are
binding upon and enure to the benefit of the Subscriber and the Corporation and
their respective heirs, executors, administrators, successors and assigns;
provided that, except for as otherwise herein provided, this Subscription
Agreement is not assignable by any party hereto without prior written consent of
the other parties. 

14. The Subscriber, on its own behalf and, if applicable, on
behalf of others for whom it is contracting hereunder, agrees that this
subscription is made for valuable consideration and may not be withdrawn,
cancelled, terminated or revoked by the Subscriber, on its own behalf and, if
applicable, on behalf of others for whom it is contracting hereunder. 

15. Subject to section 8, neither this Subscription Agreement
nor any provision hereof shall be modified, changed, discharged or terminated
except by an instrument in writing signed by the party against whom any waiver,
change, discharge or termination is sought.

16. The invalidity, illegality or unenforceability of any
provision of this Subscription Agreement does not affect the validity, legality
or enforceability of any other provision hereof.

	 	9 	CANADA/OFFSHORE 

17. The headings used in this Subscription Agreement have been
inserted for convenience of reference only and shall not affect the meaning or
interpretation of this Subscription Agreement or any provision hereof.

18. The covenants, representations and warranties contained
herein shall survive the closing of the transactions contemplated hereby.

19. In this Subscription Agreement (including attachments),
references to "$" are in Canadian dollars and references to "U.S. $" are in US
dollars.

EXHIBIT 1

REPRESENTATION LETTER

(FOR CANADIAN RESIDENT ACCREDITED INVESTORS)

	TO: 	MegaWest Energy Corp. (the
      "Corporation") 
	 	 
	AND TO: 	Tristone Capital Inc.

(Capitalized terms not specifically defined in this Exhibit
have the meaning ascribed to them in the Subscription Agreement to which this
Exhibit is attached)

     In connection with the execution
by the undersigned Subscriber of the Subscription Agreement which this
Representation Letter forms a part of, the undersigned Subscriber hereby
represents, warrants, covenants and certifies to the Corporation that:

	1. 	
      The undersigned Subscriber is resident in the
      jurisdiction set out as the "Subscriber's Residential Address" on the face
      page of the Subscription Agreement and if the undersigned Subscriber is
      purchasing as agent for a Disclosed Beneficial Purchaser, the Disclosed
      Beneficial Purchaser is resident in the jurisdiction set out as the
      "Principal's Residential Address" on the face page of the Subscription
      Agreement.

	 	 
	2. 	
      The undersigned Subscriber is either (a) purchasing the
      Shares as principal for its own account, (b) deemed to be purchasing the
      Shares as principal in accordance with section 2.3(3) or (5) of National
      Instrument 45- 106 entitled "Prospectus and Registration Exemptions"
      ("NI 45-106"), or (c) acting as agent for a Disclosed Beneficial
      Principal who is purchasing the Shares as principal for its own
      account.

	 	 
	3. 	
      The undersigned Subscriber (or if the undersigned
      Subscriber is purchasing as agent for a Disclosed Beneficial Purchaser,
      the Disclosed Beneficial Purchaser) is an "accredited investor" within the
      meaning of NI 45-106 by virtue of satisfying the indicated criterion as
      set out in Appendix A to this Representation Letter.

	 	 
	4. 	
      The undersigned Subscriber (or if the undersigned
      Subscriber is purchasing as agent for a Disclosed Beneficial Purchaser,
      the Disclosed Beneficial Purchaser) was not created or used solely to
      purchase or hold securities as an accredited investor as described in
      paragraph (m) of the definition of "accredited investor" in NI
    45-106.

	 	 
	5. 	
      Upon execution of this Exhibit 1 by the undersigned
      Subscriber, this Exhibit 1 and Appendix A hereto shall be incorporated
      into and form a part of the Subscription
Agreement.

Dated: ______________________ ,
2008.

	 	 	 
	 	Print name
      of Subscriber 
	 	 	 
	 	By:
      	 
	 	 	Signature 
	 	 	 
	 	 	 
	 	Print name
      of Signatory (if different from the 
	 	Subscriber) 
	 	 
	 	 
	 	Title
      

IMPORTANT: PLEASE INITIAL THE APPLICABLE PROVISION IN

APPENDIX A ON THE FOLLOWING PAGES

APPENDIX A

TO EXHIBIT 1

NOTE: INITIAL BESIDE THE APPLICABLE PORTION OF THE
DEFINITION BELOW.

     Accredited Investor (defined in
National Instrument 45 106) means:

	_____	(a) 	
      a Canadian financial institution, or a Schedule III bank;
      or 

	 	  	
       

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

	 	  	
       

	_____	(c) 	
      a subsidiary of any person referred to in paragraphs (a)
      or (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; or 

	 	  	
       

	_____	(d) 	
      a person registered under the securities legislation of a
      jurisdiction of Canada as an adviser or dealer, other than a person
      registered solely as a limited market dealer under one or both of the
      Securities Act (Ontario) or the Securities Act (Newfoundland
      and Labrador); or 

	 	  	
       

	_____	(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); or 

	 	  	
       

	_____	(f) 	
      the Government of Canada or a jurisdiction of Canada, or
      any crown corporation, agency or wholly owned entity of the Government of
      Canada or a jurisdiction of Canada; or 

	 	  	
       

	_____	(g) 	
      a municipality, public board or commission in Canada and
      a metropolitan community, school board, the Comité de gestion de la taxe
      scolaire de l'île de Montréal or an intermunicipal management board in
      Québec; or 

	 	  	
       

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

	 	  	
       

	_____	(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; or
      

	 	  	
       

	_____	(j) 	
      an individual who, either alone or with a spouse,
      beneficially owns, directly or indirectly, financial assets having an
      aggregate realizable value that before taxes, but net of any related
      liabilities, exceeds $1,000,000; or 

	 	  	
       

	_____	(k) 	
      an individual whose net income before taxes exceeded
      $200,000 in each of the two most recent calendar years or whose net income
      before taxes combined with that of a spouse exceeded $300,000 in each of
      the two most recent calendar years and who, in either case, reasonably
      expects to exceed that net income level in the current calendar year; or
      

	 	  	
       

		
      (Note: if individual accredited investors wish to
      purchase through wholly-owned holding companies or similar
      entities, such purchasing entities must qualify under section (t) below,
      which must be initialled.) 

	 	  	
       

	_____	(l) 	
      an individual who, either alone or with a spouse, has net
      assets of at least $5,000,000; or 

	 	  	
       

	_____	(m) 	
      a person, other than an individual or investment fund,
      that has net assets of at least $5,000,000 as shown on its most recently
      prepared financial statements; or 

	 	  	
       

	_____	(n) 	
      an investment fund that distributes or has distributed
      its securities only to 

- 2 -

	 		(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 sections 2.10 [minimum amount investment] and
      2.19 [additional investment in investment funds] of National Instrument
      45-106, or

	 	 	 	 
	 		(iii) 	
      a person described in paragraph (i) or (ii) that acquires
      or acquired securities under section 2.18 [investment fund reinvestment]
      of National Instrument 45-106; or

	 	 	 	 
	 _____	(o) 	
      an investment fund that distributes or has distributed
      securities under a prospectus in a jurisdiction of Canada for which the
      regulator or, in Quebéc, the securities regulatory authority, has issued a
      receipt; or

	 	 	 	 
	 _____	(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;
      or

	 	 	 	 
	 _____	(q) 	
      a person acting on behalf of a fully managed account
      managed by that person, if that person

	 	 	 	 
	 		(i) 	
      is registered or authorized to carry on business as an
      adviser or the equivalent under the securities legislation of a
      jurisdiction of Canada or a foreign jurisdiction, and

	 	 	 	 
	 		(ii) 	
      in Ontario, is purchasing a security that is not a
      security of an investment fund; or

	 	 	 	 
	 _____	(r) 	
      a registered charity under the Income Tax Act
      (Canada) that, in regard to the trade, has obtained advice from an
      eligibility adviser or an adviser registered under the securities
      legislation of the jurisdiction of the registered charity to give advice
      on the securities being traded; or

	 	 	 	 
	 _____	(s) 	
      an entity organized in a foreign jurisdiction that is
      analogous to any of the entities referred to in paragraphs (a) to (d) or
      paragraph (i) in form and function; or

	 	 	 	 
	 _____	(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 (as defined in National Instrument 45 106); or

	 	 	 	 
	 _____	(u) 	
      an investment fund that is advised by a person registered
      as an adviser or a person that is exempt from registration as an adviser;
      or

	 	 	 	 
	 _____	(v) 	
      a person that is recognized or designated by the
      securities regulatory authority or, except in Ontario and Quebéc, the
      regulator as

	 	 	 	 
	 		(i) 	
      an accredited investor, or

	 	 	 	 
	 		(ii) 	
      an exempt purchaser in Alberta or British Columbia after
      National Instrument 45-106 came into force.

For the purposes hereof and the Subscription
Agreement:

"affiliate" means an issuer
connected with another issuer because

	 	(a) 	
      one of them is the subsidiary of the other; or

	 	 	 
	 	(b) 	
      each of them is controlled by the same
  person;

"bank" means a bank named in
Schedule I or II of the Bank Act (Canada);

"Canadian financial institution"
means 

- 3 -

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

	 	 	 
	 	(b) 	
      a bank, loan corporation, trust company, trust
      corporation, insurance company, treasury branch, credit union, caisse
      populaire, financial services cooperative, or league that, in each case,
      is authorized by an enactment of Canada or a jurisdiction of Canada to
      carry on business in Canada or a jurisdiction of
Canada;

     "control person" has the
same meaning as in securities legislation except in Ontario where control person
means any person that holds or is one of a combination of persons that holds

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

	 	 	 
	 	(b) 	
      more than 20% of the outstanding voting securities of an
      issuer except where there is evidence showing that the holding of those
      securities does not affect materially the control of the
  issuer;

     "consultant" means for an
issuer, a person, other than an employee, executive officer, or director of the
issuer or of a related entity of the issuer, that

	 	(a) 	
      is engaged to provide services to the issuer or a related
      entity of the issuer, other than services provided in relation to a
      distribution;

	 	 	 
	 	(b) 	
      provides the services under a written contract with the
      issuer or a related entity of the issuer, and

	 	 	 
	 	(c) 	
      spends or will spend a significant amount of time and
      attention on the affairs and business of the issuer or a related entity of
      the issuer

and includes, for an individual
consultant, a corporation of which the individual consultant is an employee or
shareholder, and a partnership of which the individual consultant is an employee
or partner;

     "director" means

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

	 	 	 
	 	(b) 	
      with respect to a person that is not a company, an
      individual who performs functions similar to those of a director of a
      company;

     "eligibility adviser"
means a person that is registered as an investment dealer or in an equivalent
category of registration under the securities legislation of the jurisdiction of
a purchaser and authorized to give advice with respect to the type of security
being distributed, 

     "executive officer" means, for
an issuer, an individual who is 

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

	 	 	 
	 	(b) 	
      a vice-president in charge of a principal business unit,
      division or function including sales, finance or production,

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

	 	 	 
	 	(d) 	
      performing a policy-making function in respect of the
      issuer;

     "financial assets" means

	 	(a) 	
      cash,

- 4 -

	 	(b) 	
      securities, or

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

     "foreign jurisdiction"
means a country other than Canada or a political subdivision of a country other
than Canada;

     "founder" means, in respect of
an issuer, a person who,

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

	 	 	 
	 	(b) 	
      at the time of the trade is actively involved in the
      business of the issuer;

     "fully managed account"
means an account of a client for which a person makes the investment decisions
if that person has full discretion to trade in securities for the account
without requiring the client's express consent to a transaction;

     "individual" means a natural
person, but does not include

	 	(a) 	
      a partnership, unincorporated association, unincorporated
      syndicate, unincorporated organization or a trust, or

	 	 	 
	 	(b) 	
      a natural person in the person's capacity as trustee,
      executor, administrator or other legal personal
  representative;

     "investment fund" means a
mutual fund or non-redeemable investment fund, and, for greater certainty in
British Columbia, includes 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), R.S.B.C. 1996 c. 112, and whose business
objective is making multiple investments and a venture capital corporation
registered under Part 1 of the Small Business Venture Capital Act
(British Columbia), R.S.B.C. 1996 c.429 whose business objective is making
multiple investments;

     "jurisdiction" means a province
or territory of Canada except when used in the term "foreign jurisdiction";

     "local jurisdiction" means
the jurisdiction in which the applicable Canadian securities regulatory
authority is situate;

     "non-redeemable investment
fund" means an issuer,

	 	(a) 	
      whose primary purpose is to invest money provided by its
      securityholders,

	 	 	 	 
	 	(b) 	
      that does not invest,

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

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

	 	 	 	 
	 	(c) 	
      that is not a mutual fund;

     "person" includes 

	 	(a) 	
      an individual,

	 	 	 
	 	(b) 	
      a corporation,

- 5 -

	 	(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 personal or other legal
      representative;

     "regulator" means, for the
local jurisdiction, the person referred to in Appendix D of National Instrument
14-101 opposite the name of the local jurisdiction;

     "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;

     "Schedule III bank" means an
authorized foreign bank named in Schedule III of the Bank Act (Canada);

     "spouse" means an individual
who,

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

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

	 	 	 
	 	(e) 	
      in Alberta, is an individual referred to in paragraph (a)
      or (b), or is an adult interdependent partner within the meaning of the
      Adult Interdependent Relationships Act (Alberta);
  and

     "subsidiary" means an
issuer that is controlled directly or indirectly by another issuer and includes
a subsidiary of that subsidiary.

All monetary references are in Canadian Dollars.

EXHIBIT 2

REPRESENTATION LETTER

(FOR NON-CANADIAN RESIDENT INVESTORS 
EXCLUDING U.S.
PERSONS)

	TO: 	MegaWest Energy Corp. (the
      "Corporation") 
	 	 
	AND TO: 	Tristone Capital Inc.

(Capitalized terms not specifically defined in this Exhibit
have the meaning ascribed to them in the Subscription Agreement to which this
Exhibit is attached)

     In connection with the execution
by the undersigned Subscriber of the Subscription Agreement which this
Representation Letter forms a part of, the undersigned Subscriber hereby
represents, warrants, covenants and certifies to the Corporation that:

	1. 	
      The undersigned Subscriber and (if applicable) any other
      purchaser for whom it is acting hereunder, is resident in the jurisdiction
      set out as the "Subscriber's Residential Address" on the face page of the
      Subscription Agreement (the "Foreign Jurisdiction") and the
      undersigned Subscriber certifies that it and (if applicable) any other
      purchaser for whom it is acting hereunder is not resident in or otherwise
      subject to applicable securities laws of any province or territory of
      Canada.

	 	 
	2. 	
      The undersigned Subscriber and (if applicable) any other
      purchaser for whom it is acting hereunder, is a purchaser which is
      purchasing the Shares pursuant to an exemption from any prospectus or
      securities registration or similar requirements under the applicable
      securities laws of the Foreign Jurisdiction or any other securities laws
      to which the Subscriber and (if applicable) any other purchaser for whom
      the Subscriber is acting hereunder are otherwise subject.

	 	 
	3. 	
      If the undersigned Subscriber, or any other purchaser for
      whom it is acting hereunder, is resident in or otherwise subject to
      applicable securities laws of the United
Kingdom:

	 	(a) 	
      the Subscriber is either: (i) purchasing the Shares as
      principal for its own account, (ii) acting as agent for a Disclosed
      Beneficial Purchaser who is disclosed on the face page of the Subscription
      Agreement and who is purchasing the Shares as principal for its own
      account; or (iii) purchasing the Shares on behalf of discretionary
      client(s) in circumstances where section 86(2) of the Financial Services
      and Markets Act 2000 ("FSMA") applies;

	 	 	 
	 	(b) 	
      the Subscriber (and if the undersigned Subscriber is
      purchasing as agent for a Disclosed Beneficial Purchaser, the Disclosed
      Beneficial Purchaser) is a person in the United Kingdom: (i) who is a
      "qualified investor" for the purposes of section 86(7) of the FSMA, (ii)
      is such a person as is referred to in Article 19 (investment
      professionals) or 49 (high net worth companies etc) of the Financial
      Services and Markets Act 2000 (Financial Promotion) Order 2005; and (iii)
      has complied with and undertakes to comply with all applicable provisions
      of the FSMA and other applicable securities laws with respect to anything
      done by it in relation to the Securities in, from or otherwise involving
      the United Kingdom; and

	 	 	 
	 	(c) 	
      it confirms that, to the extent applicable to it, it is
      aware of, has complied and will comply with its obligations in connection
      with the Criminal Justice Act 1993, the Proceeds of Crime Act 2002 and
      Part VIII of the FSMA, it has identified its clients in accordance with
      the Money Laundering Regulations 2003 (the "Regulations") and has complied
      fully with its obligations pursuant to the Regulations and will, as a
      condition precedent of any acceptance of this subscription, provide all
      such information and documents as may be required in relation to it (or
      any person on whose behalf it is acting as agent) that may be required by
      the Corporation or any agent or person acting for it in order to discharge
      any obligations under the Regulations.

- 2 -

	4. 	
      The purchase of Shares by the Subscriber, and any other
      purchaser for whom it is acting hereunder, does not contravene any of the
      applicable securities laws in the Foreign Jurisdiction or any other
      securities laws to which the Subscriber and (if applicable) any other
      purchaser for whom the Subscriber is acting hereunder are otherwise
      subject and does not result in: (i) any obligation of the Corporation to
      prepare and file a prospectus, an offering memorandum or similar document;
      or (ii) any obligation of the Corporation to make any filings with or seek
      any approvals of any kind from any regulatory body in such jurisdiction or
      any other ongoing reporting requirements with respect to such purchase or
      otherwise; or (iii) any registration or other obligation on the part of
      the Corporation under the applicable securities laws in the Foreign
      Jurisdiction or any other securities laws to which the Subscriber and (if
      applicable) any other purchaser for whom the Subscriber is acting
      hereunder are otherwise subject.

	 	 
	5. 	
      The Shares are being acquired for investment purposes
      only and not with a view to the resale or distribution of all or any of
      the Securities.

	 	 
	6. 	
      The Subscriber, and any other purchaser for whom it is
      acting hereunder, are knowledgeable of, and have been independently
      advised as to, the securities laws of the Foreign Jurisdiction or any
      other securities laws to which the Subscriber and (if applicable) any
      other purchaser for whom the Subscriber is acting hereunder are otherwise
      subject.

	 	 
	7. 	
      Upon execution of this Exhibit 2 by the undersigned
      Subscriber, this Exhibit 2 shall be incorporated into and form a part of
      the Subscription Agreement.

Dated: ________________ , 2008.

	 	 
	 	Print name
      of Subscriber 
	 	 	 
	 	By:
      	 
	 	 	Signature 
	 	 	 
	 	 	 
	 	Print name
      of Signatory (if different from the 
	 	Subscriber) 
	 	 
	 	 
	 	Title

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