Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Regi U.S., Inc. - Exhibit 10.3

EXHIBIT 10.3
COMMON STOCK PURCHASE WARRANT 

EXHIBIT C 

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS
SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON
EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES. 

COMMON STOCK PURCHASE WARRANT 

REGI U.S., INC. 

	Warrant Shares: 1,000,000 	Initial Exercise Date: November
      ___, 2006 
	  	Issue Date: November ___, 2006
  

     THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, Dresden
Investments Ltd. (the “Holder”), is entitled, upon the terms and subject
to the limitations on exercise and the conditions hereinafter set forth, at any
time on or after the date hereof (the “Initial Exercise Date”) and on or
prior to the close of business on the fifth anniversary of the Initial Exercise
Date (the “Termination Date”) but not thereafter, to subscribe for and
purchase from Regi U.S., Inc., an Oregon corporation (the “Company”), up
to 1,000,000 shares (the “Warrant Shares”) of common stock, no par value
per share, of the Company (the “Common Stock”). The purchase price of one
share of Common Stock under this Warrant shall be equal to the Exercise Price,
as defined in Section 2(b). 

             
Section 1. Definitions. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Securities
Purchase Agreement (the “Purchase Agreement”), dated November 14,
2006, among the Company and the purchasers signatory thereto. 

Section 2. Exercise. 

     a)
Exercise of Warrant. Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company of a 

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duly executed facsimile copy of the
Notice of Exercise Form annexed hereto (or such other office or agency of the
Company as it may designate by notice in writing to the registered Holder at the
address of such Holder appearing on the books of the Company); and, within 3
Trading Days of the date said Notice of Exercise is delivered to the Company,
the Company shall have received payment of the aggregate Exercise Price of the
shares thereby purchased by wire transfer or cashier’s check drawn on a United
States bank. Notwithstanding anything herein to the contrary, the Holder shall
not be required to physically surrender this Warrant to the Company until the
Holder has purchased all of the Warrant Shares available hereunder and the
Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within 3 Trading Days of the date
the final Notice of Exercise is delivered to the Company. Partial exercises of
this Warrant resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the outstanding
number of Warrant Shares purchasable hereunder in an amount equal to the
applicable number of Warrant Shares purchased. The Holder and the Company shall
maintain records showing the number of Warrant Shares purchased and the date of
such purchases. The Company shall deliver any objection to any Notice of
Exercise Form within 1 Business Day of receipt of such notice. In the event of
any dispute or discrepancy, the records of the Holder shall be controlling and
determinative in the absence of manifest error. The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face hereof. 

     b)
Exercise Price. The exercise price per share of the Common Stock under
this Warrant shall be $1.30, subject to adjustment hereunder (the
“Exercise Price”). 

     c)
Cashless Exercise. If at any time after one year from the date of
issuance of this Warrant there is no effective Registration Statement
registering, or no current prospectus available for, the resale of the Warrant
Shares by the Holder, then this Warrant may also be exercised at such time by
means of a “cashless exercise” in which the Holder shall be entitled to receive
a certificate for the number of Warrant Shares equal to the quotient obtained by
dividing [(A-B) (X)] by (A), where: 

(A) = the VWAP on the Trading Day
immediately preceding the date of such election; 

(B) = the Exercise Price of this
Warrant, as adjusted; and

(X) = the number of Warrant Shares
issuable upon exercise of this Warrant in accordance with the terms of this
Warrant by means of a cash exercise rather than a cashless exercise. 

     Notwithstanding anything herein to
the contrary, on the Termination Date, this Warrant shall be automatically
exercised via cashless exercise pursuant to this Section 2(c). 

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     d)
Holder’s Restrictions. The Company shall not effect any exercise of this
Warrant, and a Holder shall not have the right to exercise any portion of this
Warrant, pursuant to Section 2(c) or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of
Exercise, such Holder (together with such Holder’s Affiliates, and any other
person or entity acting as a group together with such Holder or any of such
Holder’s Affiliates), as set forth on the applicable Notice of Exercise, would
beneficially own in excess of the Beneficial Ownership Limitation (as defined
below). For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by such Holder and its Affiliates shall include the
number of shares of Common Stock issuable upon exercise of this Warrant with
respect to which such determination is being made, but shall exclude the number
of shares of Common Stock which would be issuable upon (A) exercise of the
remaining, nonexercised portion of this Warrant beneficially owned by such
Holder or any of its Affiliates and (B) exercise or conversion of the
unexercised or nonconverted portion of any other securities of the Company
(including, without limitation, any other Common Stock or Warrants) subject to a
limitation on conversion or exercise analogous to the limitation contained
herein beneficially owned by such Holder or any of its affiliates. Except as set
forth in the preceding sentence, for purposes of this Section 2(d), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder, it being acknowledged
by a Holder that the Company is not representing to such Holder that such
calculation is in compliance with Section 13(d) of the Exchange Act and such
Holder is solely responsible for any schedules required to be filed in
accordance therewith. To the extent that the limitation contained in this
Section 2(d) applies, the determination of whether this Warrant is exercisable
(in relation to other securities owned by such Holder together with any
Affiliates) and of which a portion of this Warrant is exercisable shall be in
the sole discretion of a Holder, and the submission of a Notice of Exercise
shall be deemed to be each Holder’s determination of whether this Warrant is
exercisable (in relation to other securities owned by such Holder together with
any Affiliates) and of which portion of this Warrant is exercisable, in each
case subject to such aggregate percentage limitation, and the Company shall have
no obligation to verify or confirm the accuracy of such determination. In
addition, a determination as to any group status as contemplated above shall be
determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. For purposes of this Section 2(d), in
determining the number of outstanding shares of Common Stock, a Holder may rely
on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Form 10-QSB or Form 10-KSB, as the case may be, (y) a more
recent public announcement by the Company or (z) any other notice by the Company
or the Company’s Transfer Agent setting forth the number of shares of Common
Stock outstanding. Upon the written or oral request of a Holder, the Company
shall within two Trading Days confirm orally and in writing to such Holder the
number of shares of Common Stock then outstanding. In any case, the number of
outstanding shares of Common Stock shall be determined after giving effect to
the conversion or exercise of securities of the Company, including this Warrant,
by such Holder or its Affiliates since the date as of which such number of
outstanding shares of Common 

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Stock was reported. The “Beneficial
Ownership Limitation” shall be 4.99% of the number of shares of the Common
Stock outstanding immediately after giving effect to the issuance of shares of
Common Stock issuable upon exercise of this Warrant. The Beneficial Ownership
Limitation provisions of this Section 2(d) may be waived by such Holder, at the
election of such Holder, upon not less than 61 days’ prior notice to the Company
to change the Beneficial Ownership Limitation to 9.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance
of shares of Common Stock upon exercise of this Warrant, and the provisions of
this Section 2(d) shall continue to apply. Upon such a change by a Holder of the
Beneficial Ownership Limitation from such 4.99% limitation to such 9.99%
limitation, the Beneficial Ownership Limitation may not be further waived by
such Holder. The provisions of this paragraph shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section
2(d) to correct this paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Beneficial Ownership Limitation herein contained
or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Warrant. 

e) Mechanics of Exercise.

     i.
Authorization of Warrant Shares. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges created by the Company in respect of the
issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue).

     ii.
Delivery of Certificates Upon Exercise. Certificates for shares purchased
hereunder shall be transmitted by the transfer agent of the Company to the
Holder by crediting the account of the Holder’s prime broker with the Depository
Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”)
system if the Company is a participant in such system, and otherwise by physical
delivery to the address specified by the Holder in the Notice of Exercise within
3 Trading Days from the delivery to the Company of the Notice of Exercise Form,
surrender of this Warrant (if required) and payment of the aggregate Exercise
Price as set forth above (“Warrant Share Delivery Date”). This Warrant
shall be deemed to have been exercised on the date the Exercise Price is
received by the Company. The Warrant Shares shall be deemed to have been issued,
and Holder or any other person so designated to be named therein shall be deemed
to have become a holder of record of such shares for all purposes, as of the
date the Warrant has been exercised by payment to the Company of the Exercise
Price (or by cashless exercise, if permitted) and all taxes required to be paid
by the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance of
such shares, have been paid.

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     iii.
Delivery of New Warrants Upon Exercise. If this Warrant shall have been
exercised in part, the Company shall, at the request of a Holder and upon
surrender of this Warrant certificate, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to Holder a new
Warrant evidencing the rights of Holder to purchase the unpurchased Warrant
Shares called for by this Warrant, which new Warrant shall in all other respects
be identical with this Warrant. 

     iv.
Rescission Rights. If the Company fails to cause its transfer agent to
transmit to the Holder a certificate or certificates representing the Warrant
Shares pursuant to this Section 2(e)(iv) by the 2nd Trading Day
following the Warrant Share Delivery Date, then the Holder will have the right
to rescind such exercise. 

     v.
Compensation for Buy-In on Failure to Timely Deliver Certificates Upon
Exercise. In addition to any other rights available to the Holder, if the
Company fails to cause its transfer agent to transmit to the Holder a
certificate or certificates representing the Warrant Shares pursuant to an
exercise on or before the 2nd Trading Day following the Warrant Share
Delivery Date, and if after such date the Holder is required by its broker to
purchase (in an open market transaction or otherwise) or the Holder’s brokerage
firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Warrant Shares which the Holder anticipated receiving
upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash
to the Holder the amount by which (x) the Holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (y) the amount obtained by multiplying (A) the number of
Warrant Shares that the Company was required to deliver to the Holder in
connection with the exercise at issue times (B) the price at which the sell
order giving rise to such purchase obligation was executed, and (2) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to
the Holder the number of shares of Common Stock that would have been issued had
the Company timely complied with its exercise and delivery obligations
hereunder. For example, if the Holder purchases Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (1) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance 

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and/or injunctive relief with respect
to the Company’s failure to timely deliver certificates representing shares of
Common Stock upon exercise of the Warrant as required pursuant to the terms
hereof. 

     vi.
No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall at its election, either pay a cash adjustment
in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or round up to the next whole share. 

     vii.
Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares
shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; provided, however, that in the event
certificates for Warrant Shares are to be issued in a name other than the name
of the Holder, this Warrant when surrendered for exercise shall be accompanied
by the Assignment Form attached hereto duly executed by the Holder; and the
Company may require, as a condition thereto, the payment of a sum sufficient to
reimburse it for any transfer tax incidental thereto. 

     viii.
Closing of Books. The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof. 

Section 3. Certain
Adjustments. 

     a)
Stock Dividends and Splits. If the Company, at any time while this
Warrant is outstanding: (A) pays a stock dividend or otherwise make a
distribution or distributions on shares of its Common Stock or any other equity
or equity equivalent securities payable in shares of Common Stock (which, for
avoidance of doubt, shall not include any shares of Common Stock issued by the
Company upon exercise of this Warrant), (B) subdivides outstanding shares of
Common Stock into a larger number of shares, (C) combines (including by way of
reverse stock split) outstanding shares of Common Stock into a smaller number of
shares, or (D) issues by reclassification of shares of the Common Stock any
shares of capital stock of the Company, then in each case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of
shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number
of shares of Common Stock outstanding immediately after such event and the
number of shares issuable upon exercise of this Warrant shall be proportionately
adjusted. Any adjustment made pursuant to this Section 3(a) shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or 

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distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination
or re-classification. 

     b)
Subsequent Equity Sales. If the Company or any Subsidiary thereof, as
applicable, at any time while this Warrant is outstanding, shall sell or grant
any option to purchase, or sell or grant any right to reprice its securities, or
otherwise dispose of or issue (or announce any offer, sale, grant or any option
to purchase or other disposition) any Common Stock or Common Stock Equivalents
entitling any Person to acquire shares of Common Stock, at an effective price
per share less than the then Exercise Price (such lower price, the “Base
Share Price” and such issuances collectively, a “Dilutive
Issuance”) (if the holder of the Common Stock or Common Stock Equivalents
so issued shall at any time, whether by operation of purchase price adjustments,
reset provisions, floating conversion, exercise or exchange prices or otherwise,
or due to warrants, options or rights per share which are issued in connection
with such issuance, be entitled to receive shares of Common Stock at an
effective price per share which is less than the Exercise Price, such issuance
shall be deemed to have occurred for less than the Exercise Price on such date
of the Dilutive Issuance), then the Exercise Price shall be reduced and only
reduced to equal the Base Share Price and the number of Warrant Shares issuable
hereunder shall be increased such that the aggregate Exercise Price payable
hereunder, after taking into account the decrease in the Exercise Price, shall
be equal to the aggregate Exercise Price prior to such adjustment. Such
adjustment shall be made whenever such Common Stock or Common Stock Equivalents
are issued. Notwithstanding the foregoing, no adjustments shall be made, paid or
issued under this Section 3(b) in respect of an Exempt Issuance. The Company
shall notify the Holder in writing, no later than the Trading Day following the
issuance of any Common Stock or Common Stock Equivalents subject to this Section
3(b), indicating therein the applicable issuance price, or applicable reset
price, exchange price, conversion price and other pricing terms (such notice the
“Dilutive Issuance Notice”). For purposes of clarification, whether or
not the Company provides a Dilutive Issuance Notice pursuant to this Section
3(b), upon the occurrence of any Dilutive Issuance, after the date of such
Dilutive Issuance the Holder is entitled to receive a number of Warrant Shares
based upon the Base Share Price regardless of whether the Holder accurately
refers to the Base Share Price in the Notice of Exercise. 

     c)
Subsequent Rights Offerings. If the Company, at any time while the
Warrant is outstanding, shall issue rights, options or warrants to all holders
of Common Stock (and not to Holders) entitling them to subscribe for or purchase
shares of Common Stock at a price per share less than the VWAP at the record
date mentioned below, then the Exercise Price shall be multiplied by a fraction,
of which the denominator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights or warrants plus the number
of additional shares of Common Stock offered for subscription or purchase, and
of which the numerator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights or warrants plus the number
of shares which the aggregate offering price of the total number of shares so
offered (assuming receipt by the Company in full of all consideration payable
upon exercise of such rights, options or warrants) would purchase at such VWAP.
Such adjustment shall be made whenever such rights or warrants are issued, and
shall become 

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effective immediately after the record
date for the determination of stockholders entitled to receive such rights,
options or warrants.

     d) Pro
Rata Distributions. If the Company, at any time prior to the Termination
Date, shall distribute to all holders of Common Stock (and not to Holders of the
Warrants) evidences of its indebtedness or assets (including cash and cash
dividends) or rights or warrants to subscribe for or purchase any security other
than the Common Stock (which shall be subject to Section 3(b)), then in each
such case the Exercise Price shall be adjusted by multiplying the Exercise Price
in effect immediately prior to the record date fixed for determination of
stockholders entitled to receive such distribution by a fraction of which the
denominator shall be the VWAP determined as of the record date mentioned above,
and of which the numerator shall be such VWAP on such record date less the then
per share fair market value at such record date of the portion of such assets or
evidence of indebtedness so distributed applicable to one outstanding share of
the Common Stock as determined by the Board of Directors in good faith. In
either case the adjustments shall be described in a statement provided to the
Holder of the portion of assets or evidences of indebtedness so distributed or
such subscription rights applicable to one share of Common Stock. Such
adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above. 

     e)
Fundamental Transaction. If, at any time while this Warrant is
outstanding, (A) the Company effects any merger or consolidation of the Company
with or into another Person, (B) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions, (C)
any tender offer or exchange offer (whether by the Company or another Person) is
completed pursuant to which holders of Common Stock are permitted to tender or
exchange their shares for other securities, cash or property, or (D) the Company
effects any reclassification of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property (in any such case, a
“Fundamental Transaction”), then, upon any subsequent exercise of this
Warrant, the Holder shall have the right to receive, for each Warrant Share that
would have been issuable upon such exercise immediately prior to the occurrence
of such Fundamental Transaction, at the option of the Holder, (a) upon exercise
of this Warrant, the number of shares of Common Stock of the successor or
acquiring corporation or of the Company, if it is the surviving corporation, and
any additional consideration (the “Alternate Consideration”)
receivable upon or as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets by a Holder of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
event or (b) if the Company is acquired in an all cash transaction, cash equal
to the value of this Warrant as determined in accordance with the Black-Scholes
option pricing formula. For purposes of any such exercise, the determination of
the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect
of one share of Common Stock in such Fundamental Transaction, and the Company
shall apportion the Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different components of
the Alternate Consideration. If holders of Common Stock are 

8

given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives
upon any exercise of this Warrant following such Fundamental Transaction. To the
extent necessary to effectuate the foregoing provisions, any successor to the
Company or surviving entity in such Fundamental Transaction shall issue to the
Holder a new warrant consistent with the foregoing provisions and evidencing the
Holder’s right to exercise such warrant into Alternate Consideration. The terms
of any agreement pursuant to which a Fundamental Transaction is effected shall
include terms requiring any such successor or surviving entity to comply with
the provisions of this Section 3(e) and insuring that this Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction. 

     f)
Calculations. All calculations under this Section 3 shall be made to the
nearest cent or the nearest 1/100th of a share, as the case may be. For purposes
of this Section 3, the number of shares of Common Stock deemed to be issued and
outstanding as of a given date shall be the sum of the number of shares of
Common Stock (excluding treasury shares, if any) issued and outstanding. 

     g)
Voluntary Adjustment By Company. The Company may at any time during the
term of this Warrant reduce the then current Exercise Price to any amount and
for any period of time deemed appropriate by the Board of Directors of the
Company. 

     h) Notice
to Holder.

     i.
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted
pursuant to any provision of this Section 3, the Company shall promptly mail to
the Holder a notice setting forth the Exercise Price after such adjustment and
setting forth a brief statement of the facts requiring such adjustment. If the
Company issues a variable rate security, despite the prohibition thereon in the
Purchase Agreement, the Company shall be deemed to have issued Common Stock or
Common Stock Equivalents at the lowest possible conversion or exercise price at
which such securities may be converted or exercised in the case of a Variable
Rate Transaction (as defined in the Purchase Agreement). 

     ii.
Notice to Allow Exercise by Holder. If (A) the Company shall declare a
dividend (or any other distribution in whatever form) on the Common Stock; (B)
the Company shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock; (C) the Company shall authorize the granting to
all holders of the Common Stock rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights; (D) the approval of
any stockholders of the Company shall be required in connection with any
reclassification of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially all of the
assets of the Company, of any compulsory share exchange whereby the Common Stock

9

is converted into other securities,
cash or property; (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company; then, in
each case, the Company shall cause to be mailed to the Holder at its last
address as it shall appear upon the Warrant Register of the Company, at least 20
calendar days prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution, redemption, rights or warrants, or
if a record is not to be taken, the date as of which the holders of the Common
Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected
that holders of the Common Stock of record shall be entitled to exchange their
shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share
exchange; provided that the failure to mail such notice or any defect therein or
in the mailing thereof shall not affect the validity of the corporate action
required to be specified in such notice. The Holder is entitled to exercise this
Warrant during the 20-day period commencing on the date of such notice to the
effective date of the event triggering such notice. 

Section 4. Transfer of
Warrant. 

     a)
Transferability. Subject to compliance with any applicable securities
laws and the conditions set forth in Section 4(d) hereof and to the provisions
of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder
(including, without limitation, any registration rights) are transferable, in
whole or in part, upon surrender of this Warrant at the principal office of the
Company or its designated agent, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by the Holder or
its agent or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

     b) New
Warrants. This Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office of the Company, together with a
written notice specifying the names and denominations in which new Warrants are
to be issued, signed by the Holder or its agent or attorney. Subject to
compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice. 

10

     c)
Warrant Register. The Company shall register this Warrant, upon records
to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the contrary. 

     d)
Transfer Restrictions. If, at the time of the surrender of this Warrant
in connection with any transfer of this Warrant, the transfer of this Warrant
shall not be registered pursuant to an effective registration statement under
the Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer, that (i) the
Holder or transferee of this Warrant, as the case may be, furnish to the Company
a written opinion of counsel (which opinion shall be in form, substance and
scope customary for opinions of counsel in comparable transactions) to the
effect that such transfer may be made without registration under the Securities
Act and under applicable state securities or blue sky laws, and (ii) the Holder
or transferee execute and deliver to the Company an investment letter in form
and substance acceptable to the Company, and (iii) the transferee be an
“accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or
(a)(8) promulgated under the Securities Act or a “qualified institutional buyer”
as defined in Rule 144A(a) promulgated under the Securities Act. 

Section 5. Miscellaneous.

     a) No
Rights as Shareholder Until Exercise. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof as set forth in Section 2(e)(ii).

     b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants
that upon receipt by the Company of evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, in
the case of the Warrant, shall not include the posting of any bond), and upon
surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate. 

     c)
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall not be a Business Day, then such action may be taken or such right may be
exercised on the next succeeding Business Day. 

    d) Authorized
Shares.

     The
Company covenants that during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient 

11

number of shares to provide for the
issuance of the Warrant Shares upon the exercise of any purchase rights under
this Warrant. The Company further covenants that its issuance of this Warrant
shall constitute full authority to its officers who are charged with the duty of
executing stock certificates to execute and issue the necessary certificates for
the Warrant Shares upon the exercise of the purchase rights under this Warrant.
The Company will take all such reasonable action as may be necessary to assure
that such Warrant Shares may be issued as provided herein without violation of
any applicable law or regulation, or of any requirements of the Trading Market
upon which the Common Stock may be listed.

     Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment. Without limiting the generality of the foregoing, the Company will
(a) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (b)
take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable Warrant
Shares upon the exercise of this Warrant, and (c) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be necessary to enable
the Company to perform its obligations under this Warrant. 

     Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof. 

     e)
Jurisdiction. All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement. 

     f)
Restrictions. The Holder acknowledges that the Warrant Shares acquired
upon the exercise of this Warrant, if not registered, will have restrictions
upon resale imposed by state and federal securities laws. 

     g)
Nonwaiver and Expenses. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or remedies,
notwithstanding the fact that all rights hereunder terminate on the Termination
Date. If the Company willfully and 

12

knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder,
the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder. 

     h)
Notices. Any notice, request or other document required or permitted to
be given or delivered to the Holder by the Company shall be delivered in
accordance with the notice provisions of the Purchase Agreement. 

     i)
Limitation of Liability. No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company. 

     j)
Remedies. Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Warrant. The Company agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of the provisions of this Warrant and hereby agrees to waive and
not to assert the defense in any action for specific performance that a remedy
at law would be adequate. 

     k)
Successors and Assigns. Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares. 

     l)
Amendment. This Warrant may be modified or amended or the provisions
hereof waived with the written consent of the Company and the Holder. 

     m)
Severability. Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Warrant shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant. 

     n)
Headings. The headings used in this Warrant are for the convenience of
reference only and shall not, for any purpose, be deemed a part of this Warrant.

********************

13

     IN WITNESS WHEREOF, the Company
has caused this Warrant to be executed by its officer thereunto duly authorized
as of the date first above indicated. 

	 	REGI U.S., INC. 
	 	  
	 	  
	 	By:__________________________________________
    
	 	       Name: 
	 	       Title:

14

NOTICE OF EXERCISE 

TO: REGI U.S., INC. 

     (1) The undersigned hereby elects
to purchase ________ Warrant Shares of the Company pursuant to the terms of the
attached Warrant (only if exercised in full), and tenders herewith payment of
the exercise price in full, together with all applicable transfer taxes, if any.

     (2) Payment shall take the form of
(check applicable box): 

[ ] in lawful money of the United
States; or 

[ ] [if permitted] the cancellation of
such number of Warrant Shares as is necessary, in accordance with the formula
set forth in subsection 2(c), to exercise this Warrant with respect to the
maximum number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c). 

     (3) Please issue a certificate or
certificates representing said Warrant Shares in the name of the undersigned or
in such other name as is specified below: 

_______________________________

The Warrant Shares shall be delivered to the following DWAC
Account Number or by physical delivery of a certificate to: 

_______________________________

_______________________________

_______________________________

     (4) Accredited Investor. The
undersigned is an “accredited investor” as defined in Regulation D promulgated
under the Securities Act of 1933, as amended. 

[SIGNATURE OF HOLDER] 

Name of Investing Entity:
________________________________________________________________________
Signature
of Authorized Signatory of Investing Entity:
_________________________________________________
Name of Authorized
Signatory:
___________________________________________________________________
Title of
Authorized Signatory:
____________________________________________________________________
Date:
________________________________________________________________________________________

ASSIGNMENT FORM 

(To assign the foregoing warrant, execute
this form and
supply required information.
Do not use this form to exercise the warrant.)

     FOR VALUE RECEIVED, [____] all of
or [_______] shares of the foregoing Warrant and all rights evidenced thereby
are hereby assigned to 

_______________________________________________whose address is

_______________________________________________________________
.

_______________________________________________________________

Dated: ______________, _______

	 	Holder’s Signature: 	
	 	Holder’s Address: 	
	 	 	 

Signature Guaranteed:
___________________________________________

NOTE: The signature to this Assignment Form must correspond
with the name as it appears on the face of the Warrant, without alteration or
enlargement or any change whatsoever, and must be guaranteed by a bank or trust
company. Officers of corporations and those acting in a fiduciary or other
representative capacity should file proper evidence of authority to assign the
foregoing Warrant.Filed by Automated Filing Services Inc. (604) 609-0244 - Major Creations Incorporated - Letter of Intent

LETTER OF INTENT

THIS NON-BINDING LETTER OF INTENT, hereinafter referred
to as the “LOI”, is entered into, dated and made effective this 16th day of
November, 2006, 

	BETWEEN: 	MAJOR CREATIONS
      INCORPORATED 
	 	 
	  	(“MAJOR”) 
	 	 
	AND: 	AEGIS INDUSTRIES, INC.
  
	 	 
	  	(“AEGIS”)

WHEREAS MAJOR believes that AEGIS has significant
valuable intellectual property assets, valuable products and significant
expertise in its industry;

AND WHEREAS Aegis has secured, by way of a promissory
note, a loan of US$40,000 to Aegis to fund due diligence on Aegis’ financial
affairs and the status of its patent applications and wishes, to complete an RTO
with MAJOR to secure further financing and raise its public and business
profile.

AND WHEREAS the parties wish to enter into a non-binding
letter of intent which states that, upon completion of due diligence, the
parties intend that MAJOR and AEGIS will negotiate a share purchase and exchange
agreement whereby MAJOR would purchase all of the issued and outstanding shares
of AEGIS and the principals of AEGIS would acquire a controlling equity interest
in MAJOR.

NOW, THEREFORE, in consideration of $10.00 and other
good and valuable consideration, the parties agree as follows: 

	1. 	
      The parties hereto agree that they will act together
      towards ensuring that MAJOR and AEGIS enter into, on or before November
      30, 2006, a definitive share purchase and exchange agreement (the
      “Definitive Agreement”) containing substantially the same terms and
      provisions as this LOI.

	 	 
	2. 	
      The Definitive Agreement shall provide for the purchase,
      by MAJOR, of all of the issued and outstanding shares of common stock of
      AEGIS (and all other equity which may be issued and outstanding, if any)
      in exchange for the issuance of approximately fifteen (15) million shares
      of common stock of MAJOR or that number of shares of common stock of MAJOR
      which is equal to 25% of the issued and outstanding shares of MAJOR (as
      calculated after the issuance of the approximately 15,000,000) The
      approximately fifteen (15) million shares shall be issued after a share
      split or consolidation, if any, referenced in Section 9(d) is effected and
      after MAJOR’S stock trust and transfer agent has been notified of the
      split or consolidation as has the NASD and, if required, the
  SEC.

	3. 	
      The Definitive Agreement shall provide that the Closing
      shall occur on or before February 28, 2007 unless otherwise agreed by the
      parties thereto. The Definitive Agreement shall also provide for the
      payment of a fee to Knight Capital, in consideration of acting as an agent
      and finder pursuant to these transactions, of 600,000 common shares of
      MAJOR.

	 	 
	
      4. 
	
      Upon execution of the Definitive Agreement, MAJOR will
      agree that it will effect the appointment to its Board of Directors two
      (2) persons chosen by AEGIS (collectively, the “New Directors”) and
      further agrees that all persons acting as directors and officers of MAJOR
      prior to the execution of the Definitive Agreement will resign their
      positions.

	 	 
	5.	The Definitive Agreement will provide that
      closing of the transactions contemplated in the Definitive Agreement (the
      “Closing”) will be conditional upon the following:

 

	 	(a) 	
      AEGIS shall operate its business only in the ordinary
      course and will not sell, distribute, license or encumber any of the
      Assets;

	 	 	 
	 	(b) 	
      the receipt of any certificates, opinions and/or
      documents related to the Assets, as MAJOR or MAJOR may reasonably request,
      including documents relating to any tests performed or studies completed,
      provided these tests or studies are not subject to non-disclosure
      covenants by AEGIS in connection with any third-party customer agreements,
      and the status of any patent applications;

	 	 	 
	 	(c) 	
      the receipt of all consents, approvals, authorizations
      and orders required of or for the completion of any document required
      hereunder;

	 	 	 
	 	(d) 	
      satisfactory completion of due diligence, at the absolute
      and sole discretion of MAJOR, concerning the business, affairs, financial
      affairs and assets of AEGIS;

	 	 	 
	 	(e) 	
      satisfactory completion of due diligence, at the absolute
      and sole discretion of AEGIS, concerning the business, affairs, financial
      affairs and Assets of MAJOR;

	 	 	 
	 	(f) 	
      the existence of no outstanding mergers, acquisitions,
      financial commitments, obligations, liabilities, etc. other than those
      contemplated in this transaction; and

	 	 	 
	 	(g) 	
      other than those disclosed herein in Section 18, there
      are no legal actions against MAJOR or directors, officers and/or
      shareholders of MAJOR nor does MAJOR know of any intended legal actions
      against it or any of its directors and MAJOR is not engaged in any legal
      actions against other parties, and is current in all filings with tax and
      regulatory authorities.

	6. 	
      MAJOR will, in the Definitive Agreement, represent and
      warrant to AEGIS that:

	 	(a) 	
      it is a public corporation incorporated and is in good
      standing with all regulatory agencies and its shares will be traded on the
      OTC Bulletin Board;

2

	 	(b) 	
      there are no legal actions against MAJOR and the company
      knows of no intended legal actions against the company and is not engaged
      in any legal actions against other parties;

	 	 	 
	 	(c) 	
      its business and financial condition are as set forth in
      its filings with the SEC on the EDGAR database and is the filings are
      current as of the date hereof;

	 	 	 
	 	(d) 	
      there are no outstanding mergers, acquisitions, financial
      commitments, obligations, liabilities, etc. other than those contemplated
      in this transaction;

	 	 	 
	 	(e) 	
      other than those disclosed herein in Section 19, there
      are no legal actions against the company or directors, officers and/or
      shareholders of the company nor does MAJOR know of any intended legal
      actions against it or any of its directors and MAJOR is not engaged in any
      legal actions against other parties, and is current in all filings with
      tax and regulatory authorities; and

	 	 	 
	 	(f) 	
      there have been no other issuances or shares of its
      common stock other than in connection with the Closing or financing of the
      transactions to be contemplated in the Definitive
  Agreement.

	7. 	
      AEGIS will, in the Definitive Agreement, represent and
      warrant to MAJOR that:

	 	(a) 	
      it is a private corporation incorporated in the State of
      Delaware and is in good standing with all regulatory agencies;

	 	 	 
	 	(b) 	
      there are no legal actions against the company or
      directors of the company nor does AEGIS know of any intended legal actions
      against it or any of its directors and AEGIS is not engaged in any legal
      actions against other parties, and is current in all filings with tax and
      regulatory authorities;

	 	 	 
	 	(c) 	
      its business and financial condition remain materially
      unchanged from any due diligence or financial statement documentation
      provided to MAJOR prior to Closing;

	 	 	 
	 	(d) 	
      it owns 100% beneficial right, title and interest in and
      to intellectual property and other assets (the “Assets”) which will be
      disclosed in a schedule to the Definitive Agreement, subject to any liens,
      charges, securitizations, UCC filings or debts disclosed in the schedule
      or financial statements of AEGIS provided to MAJOR prior to Closing;
      and

	 	 	 
	 	(e) 	
      it will use any financing funds substantially in the
      manner disclosed in Schedule “A” attached hereto and entitled “Use of
      Proceeds”.

8.      The Definitive Agreement shall
provide that each and every obligation of MAJOR to be performed hereunder shall
be subject to the satisfaction prior thereto of the following conditions:

3

	 	a) 	
      the representations and warranties made by AEGIS in this
      LOI and the Definitive Agreement or given on its behalf hereunder shall be
      substantially accurate in all material respects on and as of the closing
      date with the same effect as though such representations and warranties
      had been made or given on and as of the closing date;

	 	 	 
	 	b) 	
      AEGIS shall have performed and complied with all
      obligations and covenants required by the Definitive Agreement to be
      performed or complied with by it prior to or at Closing;

	 	 	 
	 	c) 	
      MAJOR shall have been furnished that information on the
      business and affairs of AEGIS which it deems, in its sole and absolute
      discretion, to be necessary for it to meet its continuous disclosure
      obligations under the Securities Exchange Act of 1934 upon
  Closing;

	 	 	 
	 	d) 	
      as of Closing there shall not have occurred any material
      adverse change, financially or otherwise, which materially impairs the
      ability of AEGIS to conduct its business or the earning power
    thereof;

	 	 	 
	 	e) 	
      the completion, by AEGIS, of audited pro forma
      consolidated financial statements required to be filed upon Closing by
      MAJOR as a reporting issuer under the Securities Exchange Act of
    1934;

	 	 	 
	 	f) 	
      the opinion of counsel to MAJOR that the Closing will not
      result in MAJOR breaching any applicable securities law, rules and
      regulations;

	 	 	 
	 	g) 	
      the completion, by AEGIS, of settlement of approximately
      $700,000 in debts which will, concurrently with the Closing, result in not
      more than $300,000 in AEGIS having not more than $300,000 in debts on
      Closing; and

	 	 	 
	 	h) 	
      on or before five (5) days from the date hereof, MAJOR
      will have two (2) directors recommended by AEGIS formally appointed to its
      board of directors, will have entered into an audit engagement letter to
      appoint auditors of its financial affairs, will have entered into
      communications consulting agreements and will have filed any and all
      necessary 1934 Act filings required to disclose the transactions
      contemplated in this paragraph (h).

9.      The Definitive Agreement shall
provide that each and every obligation of AEGIS to be performed on Closing shall
be subject to the satisfaction prior thereto of the following conditions:

	 	(a) 	
      a total of approximately 15,000,000 shares of MAJOR, or
      such other number of shares of MAJOR which is equal to 25% of its issued
      and outstanding shares (as calculated after the issuance of the
      approximately 15,000,000) such shares subject to Rule 144, shall be issued
      to the shareholders of AEGIS, being approximately 12,000,000 shares to
      Kenneth Stethem and 3,000,000 to other shareholders of AEGIS, in exchange
      for the purchase of all of the issued and outstanding shares of AEGIS,
      said issuances or transfers to be made in a manner which will minimize any
      tax liabilities incurred by the AEGIS shareholders receiving the
      shares;

4

	 	(b) 	
      AEGIS shall have secured loan or equity or other
      financing of $40,000 on or before signing of this LOI and $300,000 within
      five (5) days of signing of this LOI (which $300,000 shall be included in
      the financing referred to in 9(d)(i) below);

	 	 	 
	 	(c) 	
      AEGIS shall have provided financial statements and a
      statement from its intellectual property lawyers as to the state of its
      patent and other intellectual property applications;

	 	 	 
	 	(d) 	
      the agreement by the parties that they will work together
      to secure further financing for AEGIS and MAJOR as follows (i) $2,000,000
      on or before February 28, 2007; (ii) an additional $2,000,000 on or before
      May 31, 2007; (iii) an additional $2,000,000 on or before August 30, 2007;
      and an additional $5,000,000 on or before April 30,
2008.

10.      Neither AEGIS, on the one
hand, nor MAJOR, on the other, will make any disclosure or public announcements
of the proposed transactions, the Definitive Agreement or the terms thereof
without the prior knowledge of the other. For greater clarity, if any one or
more of the common directors of AEGIS and MAJOR are aware of any disclosures or
public announcements of the proposed transactions, the Definitive Agreement or
the terms thereof, AEGIS will be deemed to have prior knowledge of them.

11.      Each party agrees and
acknowledges that such party and its directors, officers, employees, agents and
representatives will disclose business information and information about the
proposed transaction in the course of securing financings for MAJOR and AEGIS
and that both parties and their representatives may be required to disclose that
information under the continuous disclosure requirements of the Securities
Exchange Act of 1934.

12.      The parties hereby agree that
neither will solicit any third party for the licensing, lease, transfer or sale
of any or all their respective Assets, or solicit opportunities for either party
to enter into any discussions with any third party for the licensing, lease,
transfer or sale of any or all of its respective Assets, for the term of the
Definitive Agreement. This section shall not be read to prohibit the parties
from conducting such discussions which are in the ordinary course of business
but is intended to be read as protecting each of the parties from the other
entering into negotiations which would conflict with the transactions
contemplated by this LOI and by the Definitive Agreement.

13.      The Definitive Agreement will
specify that, in the event that Closing does not occur on or before February 28,
2007, then:

	 	(a) 	
      the New Directors, and any directors and officers that
      they have appointed during their term as directors, shall resign and shall
      appoint ________________________as the sole director and officer of
      MAJOR;

	 	 	 
	 	(b) 	
      the New Directors will return any and all shares of
      common stock which they hold in MAJOR to the treasury of
  MAJOR;

5

	 	(c) 	
      any and all funds loaned or transferred to February 28,
      2007 to AEGIS by MAJOR will be considered to be a demand loan bearing
      interest at 6% per annum said loan to be secured by the Assets, accounts
      receivable and other assets of AEGIS; and

	 	 	 
	 	(d) 	
      MAJOR, together with any of the parties making the bridge
      loan and other interim financing to AEGIS, agrees not to undertake,
      directly or indirectly the financing of, or a reverse merger with, any
      other business operating in the same industry as AEGIS during the term of
      the LOI and the term of the Definitive Agreement or in the event that the
      Closing does not occur by February 28, 2007, for a period of one year
      thereafter.

14.      This LOI shall be construed
in accordance with, and governed by, the laws of the State of Nevada, and each
party separately and unconditionally subjects to the jurisdiction of any court
of competent authority in the State of Nevada, and the rules and regulations
thereof, for all purposes related to this agreement and/or their respective
performance hereunder.

15.      This LOI sets forth the
entire understanding of the parties with respect to the subject matter hereof
and may be modified only by a written document signed by all parties. The
Definitive Agreement will also provide that it can be modified only by a written
document signed by all parties.

16.      The parties shall, upon
Closing, prepare, execute and file any and all documents necessary to comply
with all applicable federal and state securities laws, rules and regulations in
any jurisdiction where they are required to do so.

17.      This LOI is subject to the
approval of any regulatory agency having jurisdiction over the transactions
contemplated herein.

18.      MAJOR acknowledges that AEGIS
has disclosed that it is currently involved in no lawsuits.

19.      AEGIS acknowledges that MAJOR
has disclosed that it is currently involved in no lawsuits.

20.      If this LOI accurately sets
forth the terms and conditions under which you are willing to enter into the
transactions contemplated hereby, please so indicate by signing and returning a
copy of this letter to MAJOR, by fax, not later than 5:00 p.m. Pacific Standard
Time, on November 17, 2006, failing which, any offer contained herein will be
considered invalid.

21.      If any term or provision
hereof shall be held illegal or invalid, this LOI shall be construed and
enforced as if such illegal or invalid term or provision had not been contained
herein. 

6

22.      All references to currency in
this LOI are references to the lawful currency of the United States of
America.

 

DATED EFFECTIVE THIS 16TH DAY OF NOVEMBER, 2006

“Paul
Evancoe”
____________________________
MAJOR CREATIONS
INCORPORATED

 

“Ken
Stethem”
____________________________
AEGIS INDUSTRIES,
INC.

7

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