Document:

EXHIBIT 4.13  

Execution Version  

STOCK PURCHASE
AGREEMENT 

        THIS
STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of March
3, 2006, by and between Kodiak Oil & Gas Corp., a Yukon corporation (the
“Company”), and each of the purchasers set forth on the signature page hereof
(each, an “Investor” and collectively, the “Investors”). 

        1.       Authorization
of Issuance and Sale of Shares. Subject to the terms and           conditions of this
Agreement and the Term Sheet dated March 3, 2006 (the           “Term Sheet”),
the Company has authorized the offer and sale by the           Company of up to
19,514,268 shares (the “Shares”) of its common stock,           without par
value per share (the “Common Stock”) (the           “Offering”).  

        2.       Agreements
to Sell and Purchase. On the basis of the representations and           warranties
contained in this Agreement, and subject to its terms and conditions,           the
Company hereby agrees to sell to the Investors, and each Investor agrees to
          purchase from the Company, the number of Shares of Common Stock set forth
          immediately next to its name on the signature page hereto at the aggregate
          purchase price set forth immediately next to such Investor’s name on the
          signature page hereto (the “Purchase Price”).  

        3.       Payment
and Delivery. Payment for the Shares purchased by each Investor           shall be
made by such Investor to the Company in federal or other funds           immediately
available in New York City (such payment hereinafter referred to as           the “Closing”)
at 10:00 a.m., Denver time, on March 3, 2006, or at           such other time on the same
or such other date, not later than March 10, 2006,           as shall be agreed in
writing by the Company and KeyBanc Capital Markets, a           division of McDonald
Investments Inc. (“KeyBanc”), Petrie Parkman           & Company (“Petrie”)
and Dominick & Dominick           (“Dominick”), in their capacity as agents
of the Company in connection           with the sale of the Shares contemplated hereby
(each a “Co-Placement           Agent” and collectively, the “Co-Placement
Agents”). The time and           date of such payment is hereinafter referred to as
the “Closing Date.”          Except where alternative settlement arrangements
have been agreed to with an           Investor, payment by each Investor for such Shares
shall be made through an           escrow agent on terms and instructions set forth in an
Escrow Agreement dated as           of March 1, 2006, among the Company, KeyBanc and
Associated Bank, N.A., as           escrow agent.  

        Certificates
for the Shares purchased by each Investor shall be registered in the name of such
Investor or if so indicated on the signature page hereto, in the name of a nominee
designated by such Investor. The certificates evidencing the Shares purchased by each
Investor shall be delivered to such Investor within seven days of the Closing Date,
except where alternative settlement arrangements have been agreed to with an investor,
with any transfer taxes payable in connection with the transfer of such Shares to such
Investor duly paid by or on behalf of the Company, against payment of the Purchase Price
therefor.  

        4.       Conditions
to the Company’s Obligations. The Company’s           obligation to issue
and sell the Shares to each Investor is subject to the           following conditions:  

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	  	        (a)
                          receipt by the Company of
federal or other immediately available funds in the           full amount of the Purchase
Price for the Shares to be sold to each Investor           hereunder; and  

	  	        (b)
                          the representations and
warranties of each Investor contained in this Agreement           being true and correct
in all material respects on and as of the Closing Date           with the same effect as
though such representations and warranties had been made           on and as of the
Closing Date, and the fulfillment in all material respects of           those
undertakings of each Investor to be fulfilled prior to the Closing Date.  

        5.       Conditions
to the Investor’s Obligations. The obligation of each           Investor to
purchase and pay for Shares on the Closing Date is subject to the           following
conditions, any one or more of which may be waived in writing at any           time by
such Investor:  

	  	        (a)
                  delivery to such Investor on the
Closing Date of an opinion of Dorsey &          Whitney LLP, counsel to the Company,
dated the Closing Date, substantially in           the form set forth in Exhibit A hereto;  

	  	        (b)
                  delivery to such Investor on the
Closing Date of an opinion of Miller Thomson           LLP, Canadian counsel to the
Company, dated the Closing Date, substantially in           the form set forth in Exhibit
B hereto;  

	  	        (c)
                  the representations and warranties
of the Company contained in this Agreement           being true and correct in all
material respects on and as of the Closing Date           with the same effect as though
such representations and warranties had been made           on and as of the Closing Date
(except with respect to representations and           warranties that are made as of a
specific date or period, which shall continue           to be true and correct in all
material respects as of the respective dates and           for the respective periods
covered);  

	  	        (d)
                  absence of any order, writ,
injunction, judgment or decree that could           negatively affect the validity of
this Agreement or the right of the Company to           enter into this Agreement or to
consummate the transactions contemplated hereby;           and  

	  	        (e)
                  receipt by such Investor on the
Closing Date of a certificate, dated the           Closing Date and signed by the Chief
Executive Officer and Chief Operating           Officer of the Company, to the effect
that the conditions set forth in clauses           (c) and (d) of this Section 5 have
been fulfilled.  

        6.       Representations,
Warranties and Covenants of the Company. The Company           represents and
warrants to, and covenants with, the Investor that as of the date           of this
Agreement and as of the Closing Date:  

	  	        (a)
                  The Company’s Amendment No. 3
to Registration Statement on Form 20-F filed           with the Securities and Exchange
Commission (the “Commission”) on           March 3, 2006 (the “Amended
20-F Registration Statement”)  

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does
not as of the date hereof contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements
therein not misleading. The Amended 20-F Registration Statement complied when filed as to
form in all material respects with the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) and the applicable rules and regulations of the Commission
thereunder (the “Exchange Act Regulations”).  

	  	        (b)
                  The Company has filed with the
British Columbia and Alberta Securities           Commissions (the “Canadian
Commissions”) and the TSX Venture Exchange           all documents required to be
filed pursuant to the Securities Act (British           Columbia) and the Securities Act
(Alberta) (collectively, the “Canadian           Acts”) and the TSX Venture
Exchange rules and trading policies, during the           12 months preceding the date of
this Agreement. All such documents complied when           filed in all material respects
with the Canadian Acts, the applicable rules and           regulations of the Canadian
Commissions and the TSX Venture Exchange rules and           trading policies.  

	  	        (c)
                  The Term Sheet and the written
presentation to Investors made by the           Company’s management (the “Investor
Presentation”) taken as a           whole and each as amended to the date hereof, do
not as of the date hereof           contain any untrue statement of a material fact or
omit to state a material fact           necessary to make the statements therein, in
light of the circumstances under           which they were made, not misleading.  

	  	        (d)
                  The Company is eligible to register
the resale of the Shares in a secondary           offering on a registration statement on
Form F-1 under the Securities Act of           1933, as amended (the “Securities Act”)
and the applicable rules and           regulations of the Commission thereunder (the
“Securities Act           Regulations”). The Company has been duly incorporated
and is validly           existing as a corporation in good standing under the laws of the
Yukon           Territory, Canada, with corporate power and authority to own or lease its
          properties and conduct its business as currently conducted and as described in
          the Amended 20-F Registration Statement. Each of the subsidiaries listed
          on Schedule I hereto (collectively, the “Subsidiaries”) has
          been duly organized and is validly existing as a corporation or other entity in
          good standing under the laws of the jurisdiction of its organization, with the
          power and authority to own or lease its properties and conduct its business as
          currently conducted and as described in the Amended 20-F Registration
Statement.           The Subsidiaries are the only entities in which the Company owns,
directly or           indirectly, a majority of the outstanding voting securities. The
Company and the           Subsidiaries are duly qualified to transact business and are in
good standing in           all jurisdictions in which the conduct of their respective
businesses or the           ownership or leasing of their property requires such
qualification, except in           such jurisdictions where the failure to be so
qualified or to be in good           standing would not have a Material Adverse Effect.
For purposes of this           Agreement, the term “Material Adverse Effect” means
a material adverse           effect on (i) the condition (financial or otherwise),
properties, assets,           liabilities, rights, operations, earnings, business,
management or prospects of           the Company  

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and
the Subsidiaries, taken as a whole, whether or not arising from transactions in the
ordinary course of business, (ii) the transactions contemplated by this Agreement or
(iii) the authority or the ability of the Company to perform its obligations under this
Agreement.  

	  	        (e)
                  The outstanding shares of capital
stock of each of the Subsidiaries have been           duly authorized and validly issued,
are fully paid and non-assessable and are           wholly owned by the Company or
another Subsidiary free and clear of all liens,           encumbrances, equities and
claims. There are no outstanding rights (including,           without limitation,
preemptive rights), warrants or options to acquire, or           instruments convertible
into or exchangeable for, any unissued shares of capital           stock or other equity
interest in any of the Subsidiaries, or any contract,           commitment, agreement,
understanding or arrangement of any kind, in each case to           which the Company or
any Subsidiary is a party and providing for the issuance or           sale of any capital
stock of that Subsidiary, any such convertible or           exchangeable securities or
any such rights, warrants or options.  

	  	        (f)
                  This Agreement has been duly
authorized, executed and delivered by the Company,           and constitutes a valid,
legal, and binding obligationof the Company,           enforceable in accordance
with its terms, except as such enforceability may be           limited by bankruptcy,
insolvency, reorganization or similar laws affecting the           rights of creditors
generally, and subject to general principles of equity. The           Company has full
power and authority to execute and deliver this Agreement and           to perform its
obligations hereunder.  

	  	        (g)
                  Neither the Company nor any of the
Subsidiaries is or with the giving of notice           or lapse of time or both, will be,
in violation of or in default under its           charter documents (“Charter”)
or bylaws or under any agreement, lease,           contract, indenture or other
instrument or obligation to which it is a party or           by which it is bound or to
which any of its properties or assets are subject,           and which violation or
default has had or is reasonably likely to have a           Material Adverse Effect. The
execution and delivery of this Agreement and the           consummation of the
transactions contemplated herein, including without           limitation the issuance and
sale of the Shares, and the fulfillment of the terms           of this Agreement will not
(i) violate (A) any statute, rule or regulation of           governmental agency or
authority applicable to the Company or any of the           Subsidiaries, or (B) any
order applicable to the Company or any of the           Subsidiaries (or any of
properties or assets of the Company or any Subsidiary)           of any court or of any
regulatory body or administrative agency or other           governmental body, except
where any such violation would not have a Material           Adverse Effect, (ii)
conflict with or result in a breach of any of the terms or           provisions of, or
constitute a default under, any contract, indenture, mortgage,           deed of trust or
other agreement or instrument to which the Company or any of           its Subsidiaries
is a party or by which the Company or any of its Subsidiaries           is bound or to
which any of the Company’s or any Subsidiary’s           properties or assets
are subject, except where any such conflict, breach or           default would not have a
Material Adverse Effect, or (iii) conflict with any           provisions of the Charter
or bylaws of the Company.  

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	  	        (h)
                  Each approval, consent, order,
authorization, designation, declaration or           filing by or with any regulatory,
administrative or other governmental body           necessary in connection with the
execution and delivery by the Company of the           Agreement and the consummation of
the transactions herein contemplated (except           such as may be required by the
securities or Blue Sky laws of the various states           in connection with the offer
and sale of the Shares, and by federal and state           securities laws with respect
to the Company’s obligations under Sections 8           and 9 of this Agreement) has
been obtained or made and is in full force and           effect.  

	  	        (i)
                  The capitalization of the Company is
as set forth under           “Capitalization” in the Amended 20-F Registration
Statement as of the           date set forth therein. The Company has not issued any
capital stock since           December 13, 2005, except for issuances of Common Stock
upon the exercise of (i)           outstanding warrants and (ii) stock options granted
under any benefit plan           identified in the Amended 20-F Registration Statement.
The outstanding shares of           Common Stock of the Company have been duly authorized
and validly issued and are           fully paid and non-assessable, the Shares have been
duly authorized and when           issued and paid for as contemplated in the Agreement
will be validly issued,           fully paid and non-assessable. Except as specifically
disclosed in Schedule           II hereto, there are no outstanding warrants or
options to acquire, or           instruments convertible into or exchangeable for, any
unissued shares of capital           stock or other equity interest in the Company, or
any contract, commitment,           agreement, understanding or arrangement of any kind,
in either case to which the           Company is a party and providing for the issuance
or sale of any capital stock           of the Company, any such convertible or
exchangeable securities or any such           rights, warrants or options.  

	  	        (j)
                  Except as specifically disclosed in
Schedule III hereto, no preemptive           right, co-sale right, registration
right, right of first refusal or other           similar right exists with respect to the
issuance and sale of the Shares, the           registration for resale of the Shares or
any other transactions contemplated by           the Agreement. There are no stockholders
agreements, voting agreements or other           similar agreements with respect to the
Common Stock to which the Company is a           party.  

	  	        (k)
                  The form of certificates for the
Shares conforms to the requirements of the           laws of The Yukon Territory.  

	  	        (l)
                  There are no legal, governmental or
regulatory actions, suits, claims or           proceedings pending to which the Company
or any of the Subsidiaries is a party           or of which any property of the Company
or any of the Subsidiaries is the           subject, which, if determined adversely to
the Company or any of the           Subsidiaries, might individually or in the aggregate
reasonably be expected to           have a Material Adverse Effect; to the Company’s
knowledge, no such action,           suit, claim or proceeding is threatened or
contemplated by governmental or           regulatory authorities or threatened by others.  

5 

	  	        (m)
                  The Company and each Subsidiary (i) are
in compliance in all material           respects with any and all applicable foreign,
federal, state and local laws,           orders, rules, regulations, directives, decrees
and judgements relating to the           protection of human health and safety, the
environment or hazardous or toxic           substances or wastes, pollutants or
contaminants (the “Environmental           Laws”); (ii) have received all
permits, licenses, certifications,           franchises, clearances or other approvals
required of it under applicable           Environmental Laws, to conduct its business to
date as described in the Amended           20-F Registration Statement; and (iii) are
in compliance in all material           respects with all terms and conditions of any
such permit, license           certification, franchise, clearance or approval, except
where such noncompliance           with Environmental Laws, failure to receive required
permits, licenses,           certifications, franchises, clearances or other approvals or
failure to comply           with the terms and conditions of such permits, licenses,
certifications,           franchises, clearances or approvals would not, individually or
in the aggregate,           have a Material Adverse Effect. The Company is not presently
subject to any           costs or liabilities associated with Environmental Laws
(including, without           limitation, any capital or operating expenditures required
for clean-up and any           potential liabilities to third parties) that would,
individually or in the           aggregate, have a Material Adverse Effect. To the Company’s
knowledge,           there are no pending or threatened administrative, regulatory or
judicial           actions, suits, demands, demand letters, claims, liens, notices of
noncompliance           or violation, investigation or proceedings relating to any
Environmental Law           against the Company or any Subsidiary. To the Company’s
knowledge, there           are no events or circumstances that would reasonably be
expected to form the           basis of an order for clean-up or remediation, or an
action, suit or proceeding           by any private party or governmental body or agency,
against or affecting the           Company or any Subsidiary, or any of its predecessors
in interest, relating to           hazardous materials or any Environmental Laws. To the
Company’s knowledge,           no property that is or has been owned, leased or
occupied by the Company or any           Subsidiary has been designated as a Superfund
Site pursuant to the Comprehensive           Environmental Response, Compensation of
Liability Act of 1980, as amended           (“CERCLA”), or otherwise designated
as a contaminated site under           applicable state or local law under circumstances
that would be reasonably           likely to have a Material Adverse Effect, and neither
the Company nor any           Subsidiary has been named as a “potentially
responsible party” under           CERCLA.  

	  	        (n)
                  The Company and the Subsidiaries
have good and marketable title to all property           described in the Amended 20-F
Registration Statement as owned by them, free from           mortgages, pledges, liens,
security interests, claims, restrictions,           encumbrances and defects of any kind,
except as (i) would not, individually or           in the aggregate, materially affect
the value of such property or materially           interfere with the use made or to be
made of such property by them, or (iii)           would not, individually or in the
aggregate, reasonably be likely to have a           Material Adverse Effect. All of the
leases, subleases and options to acquire           leases material to the business of the
Company and the Subsidiaries, and under           which the Company or any of its
Subsidiaries holds properties described in the           Amended 20-F Registration
Statement, including, without limitation, all oil,           natural gas and  

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coal
bed methane producing properties of the Company and the Subsidiaries and all assets and
facilities used by the Company and the Subsidiaries in the production and marketing of
oil, natural gas and coal bed methane, are in full force and effect, and neither the
Company nor any Subsidiary has any notice of any material claim of any sort that has been
asserted by anyone adverse to the rights of the Company or such Subsidiary to the
continued possession of the leased or subleased property under any such lease or
sublease, except in each case as would not, individually or in the aggregate, reasonably
be likely to have a Material Adverse Effect.  

	  	        (o)
                The Company and each of the Subsidiaries possess all material
licenses,                certifications, permits, franchises, approvals, consents,
clearances and other                authorizations (“Permits”) issued by
appropriate federal, state or                local governmental authorities as are
necessary to conduct their respective                businesses as currently conducted
and to own, lease and operate their respective                properties in the manner
described in the Amended 20-F Registration Statement,                except where the
failure to have any such Permit would not have a Material                Adverse Effect.
There is no claim, proceeding or controversy, pending or, to the                knowledge
of the Company, threatened, involving the status of or sanctions under                any
of the Permits. The Company and each of the Subsidiaries have fulfilled and
               performed all of their material obligations with respect to the Permits,
and no                event has occurred that allows, or after notice or lapse of time
would allow,                the revocation, termination, modification or other impairment
of the rights of                the Company or any of the Subsidiaries under any such
Permit.  

	  	        (p)
                The Company and each of the Subsidiaries owns, licenses or otherwise
has rights                in all United States and foreign patents, trademarks, service
marks, tradenames,                copyrights, trade secrets and other proprietary rights
necessary for the conduct                of their respective businesses as currently
carried on and as proposed to be                carried on as described in the Amended
20-F Registration Statement                (collectively, and together with any
applications or registrations for the                foregoing, the “Intellectual
Property”). Except as specifically                described in the Amended 20-F
Registration Statement, neither the Company nor                the Subsidiaries has
received any notice or is otherwise aware of any                infringement of or
conflict with asserted rights of others with respect to any                Intellectual
Property or of any facts or circumstances which would render any
               Intellectual Property invalid or inadequate to protect the interest of the
               Company or any of the Subsidiaries, except any infringement, conflict,
facts or                circumstances which would not have a Material Adverse Effect.  

	  	        (q)
                Neither the Company nor any of the Subsidiaries is in violation of
any law,                administrative regulation, ordinance or order of any court or
governmental                agency, arbitration panel or authority applicable to the
Company or that                Subsidiary, as the case may be, which violation,
individually or in the                aggregate, is reasonably likely to have a Material
Adverse Effect.  

7 

	  	        (r)
                The information set forth in the Amended 20-F Registration Statement
relating to                oil, natural gas or coal bed methanereserves, wells and
any other oil,                natural gas or coal bed methanerelated information
has been prepared by                the Company or its independent reservoir engineer in
accordance with methods                generally applied in the U.S. oil and gas industry
and conforms, in all material                respects, to the requirements of the
Securities Act and the Securities Act                Regulations.  

	  	        (s)
                The participation, joint development, joint operating, farm-out and
other                agreements relating to rights of the Company and its Subsidiaries
with respect                to the ownership, lease or operation of oil, natural gas and
coal bed methane                properties or the exploration for development of, or
production of oil, natural                gas and coal bed methane reserves thereon,
constitute valid and binding                agreements of the Company and its
Subsidiaries that are parties thereto and, to                the knowledge of the
Company, of the other parties thereto, except as                enforceability may be
limited by bankruptcy, insolvency, reorganization,                moratorium or similar
laws affecting creditors’ rights generally and by                general equitable
principles.  

	  	        (t)
                The consolidated financial statements of the Company, together with
related                notes set forth in the Amended 20-F Registration Statement,
present fairly the                consolidated financial position and the results of
operations and cash flows of                the Company, at the indicated dates and for
the indicated periods. Such                financial statements and related notes and
schedules have been prepared in                accordance with accounting principles
generally accepted in Canada                (“Canadian GAAP”), consistently
applied throughout the periods                involved, except as disclosed therein, and
all adjustments necessary for a fair                presentation of results for such
periods have been made. The selected financial                data included in the
Amended 20-F Registration Statement present fairly the                information shown
therein and such data have been compiled on a basis consistent                with the
financial statements presented therein and the books and records of the
               Company and the Subsidiaries.  

	  	        (u)
                The Company maintains a system of internal accounting controls
sufficient to                provide reasonable assurances (i) regarding the reliability
of financial                reporting and the preparation of financial statements for
external purposes in                accordance with generally accepted accounting
principles and (ii) that (A)                transactions are executed in accordance with
management’s general or                specific authorization; (B) transactions are
recorded as necessary to permit                preparation of financial statements in
conformity with generally accepted                accounting principles and to maintain
accountability for assets; (D) access to                assets is permitted only in
accordance with management’s general or                specific authorization; and
(E) the recorded accountability for assets is                compared with existing
assets at reasonable intervals and appropriate action is                taken with
respect to any differences.  

	  	        (v)
                Since February 8, 2006there has not been any material adverse
change,                financial or otherwise, with respect to the Company or any of the
Subsidiaries                that has had or is reasonably likely to have a Material
Adverse Effect, whether                or not occurring in the ordinary course of
business, and there has  

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not
been any material transaction entered into by the Company or any of the Subsidiaries,
other than transactions in the ordinary course of business. The Company and the
Subsidiaries have no material contingent obligations that are not disclosed in the
Amended 20-F Registration Statement.  

	  	        (w)
                The Company’s Common Stock is listed on the TSX Venture
Exchange and is                authorized for trading on the TSX Venture Exchange. The
Company has taken no                action designed to, or which to its knowledge is
likely to have the effect of,                terminating the listing of or disqualify
such shares of Common Stock from                listing on the TSX Venture Exchange. The
issuance of the Shares does not require                shareholder approval, including,
without limitation, pursuant to the rules of                the listing on the TSX
Venture Exchange. At no time has the Common Stock been                quoted, listed or
admitted to trading on the NASDAQ National Market, the NASDAQ                SmallCap
Market or any registered United States securities exchange. The Company
               is, and has no reason to believe that it will not in the foreseeable
future                continue to be, in compliance with the qualifications for listing
of its common                stock on the TSX Venture Exchange; provided that the Company
may delist from the                TSX Venture Exchange at such time as the Common Stock
is listed on a U.S. market                or exchange.  

	  	        (x)
                The Company will file with the Commission a notice of the sale of
Shares                pursuant to this Agreement on Form D within the time prescribed for
the filing                of such notice under Regulation D of the Securities Act. The
Company will also                file with the applicable Canadian securities regulatory
bodies and the TSX                Venture Exchange the documents necessary to comply with
the applicable Canadian                securities laws and the rules and policies of the
TSX Venture Exchange.  

	  	        (y)
                Neither the Company nor, to the Company’s knowledge, any of its
affiliates,                has taken or may take, directly or indirectly, any action
designed to cause or                result in, or which has constituted or which might
reasonably be expected to                constitute, the stabilization or manipulation of
the price of the shares of                Common Stock to facilitate the sale or resale
of the Shares.  

	  	        (z)
                The contracts listed as exhibits to the Amended 20-F Registration
Statement,                other than those contracts that are substantially performed or
expired by their                terms, are in full force and effect on the date hereof,
and none of the Company,                the Subsidiaries and, to the Company’s
knowledge, any other party, is in                breach of or default under any such
contract. Except as disclosed in the Amended                20-F Registration Statement
or as would not have a Material Adverse Effect,                neither the Company nor
any of the Subsidiaries has sent or received any notice                indicating the
termination of or intention to terminate any such contract, and                no such
termination has been threatened by the Company, any Subsidiary, or, to                the
Company’s knowledge, any other party.  

	  	        (aa)
                The Company and the Subsidiaries have filed all federal, state,
local and                foreign tax returns which have been required to be filed and
have paid all taxes                indicated by said returns and all assessments received
by any of them to the                extent  

9 

	  	
that
such taxes have become due and are not being contested in good faith and for which an
adequate reserve for accrual has been established in accordance with Canadian GAAP. All
tax liabilities have been adequately provided for in the financial statements of the
Company in accordance with Canadian GAAP, and the Company does not know of any actual or
proposed additional material tax assessments.  

	  	        (bb)
                Neither the Company nor any of the Subsidiaries is, or intends to
conduct its                business in a manner in which it would become, an “investment
company”               as defined in Section 3(a) of the Investment Company Act of
1940, as amended,                and the rules and regulations promulgated thereunder.  

	  	        (cc)
                The Company and the Subsidiaries carry, or are covered by, insurance
in such                amounts and covering such risks as is adequate for the conduct of
their                respective businesses and the value of their respective properties
and as is                customary for similarly sized companies engaged in similar
industries. All                policies of insurance insuring the Company or any
Subsidiary or any of their                respective businesses, assets, employees,
officers or directors are in full                force and effect, and the Company and
the Subsidiaries are in compliance with                the terms of such policies in all
material respects. There are no claims by the                Company or any Subsidiary
under any such policy or instrument as to which an                insurance company is
denying liability or defending under a reservation of                rights clause.  

	  	        (dd)
                None of the Company, its employees or directors or, to the knowledge
of the                Company, any other affiliate, as defined in Rule 501(b) of
Regulation D under                the Securities Act (an “Affiliate”), of the
Company has, directly or                through any agent, sold, offered for sale,
solicited offers to buy or otherwise                negotiated in respect of, any
security (as defined in the Securities Act) which                is or will be integrated
with the Offering in a manner that would require the                registration under
the Securities Act of the sale of the Shares pursuant to this                Agreement,
and the Company will not, directly or through any agent, sell, offer                for
sale, solicit offers to buy or otherwise negotiate in respect of, any
               security (as defined in the Securities Act) which would be integrated with
the                Offering in a manner that would require the registration under the
Securities                Act of the sale of the Shares pursuant to this Agreement.  

	  	        (ee)
                None of the Company, its employees or directors or, to the knowledge
of the                Company, any other Affiliate of the Company has, directly or
through any agent,                offered, solicited offers to buy or sold Shares in the
Offering by any form of                general solicitation or general advertising (as
those terms are used in                Regulation D under the Securities Act) or in any
manner involving a public                offering within the meaning of Section 4(2) of
the Securities Act, and the                Company will not, directly or through any
agent, engage in any of the actions                described in this paragraph (ee) in
connection with the Offering.  

	  	        (ff)
                Other than the fees to be paid by the Company to the Co-Placement
Agents, the                Company has not incurred any liability for any finder’s
or  

10 

	  	
broker’s
fee, or agent’s commission in connection with the execution and delivery of this
Agreement or the consummation of the transactions contemplated hereby.  

	  	        (gg)
                None of the Company, any Subsidiary or, to the knowledge of the
Company, any                agent or other person acting on behalf of the Company or any
Subsidiary, has (i)                directly or indirectly, used any corrupt funds for
unlawful contributions,                gifts, entertainment, or other unlawful expenses
related to foreign or domestic                political activity, (ii) made any unlawful
payment to foreign or domestic                government officials or employees or to any
foreign or domestic political                parties or campaigns from corporate funds,
(iii) failed to disclose fully any                contribution made by the Company or any
Subsidiary (or made by any person acting                on its behalf of which the
Company is aware) that is in violation of law, or                (iv) violated in any
material respect any provision of the Foreign Corrupt                Practices Act of
1997, as amended.  

	  	        (hh)
                The information contained in the Amended 20-F Registration Statement
regarding                the Company’s expectations, plans and intentions, and any
other information                that constitutes “forward-looking” information
within the meaning of                the Securities Act and the Exchange Act, were made
by the Company on a                reasonable basis and reflected the Company’s good
faith belief or estimate                of the matters described therein, in each case as
of the date of the Amended                20-F Registration Statement containing such
information.  

	  	        (ii)
                All disclosure concerning the Company contained in this Agreement,
including the                Schedules to this Agreement, is true and correct and does
not contain any untrue                statement of a material fact or omit to state any
material fact necessary in                order to make the statements made therein, in
the light of the circumstances                under which they were made, not misleading.
None of the Company, its employees                or directors or, to the Company’s
knowledge, any other Person acting on its                behalf has provided any of the
Investors or their agents or counsel with any                information that constitutes
or might constitute material, nonpublic                information, except information
that will be promptly disclosed in the press                release pursuant to paragraph
(jj) below. The Company understands that each of                the Investors may rely on
the foregoing representations in effecting                transactions in securities of
the Company.  

	  	        (jj)
                The Company agrees, as soon as practicable but in no event later
than                10:30 a.m., Denver time, or as soon as practicable thereafter,
on the                Closing Date, to issue a press release in compliance with Rule 135c
under the                Securities Act, describing the material terms of the
transactions contemplated                by this Agreement. Such press release shall be
subject to prior review by                counsel to the Co-Placement Agents.
Notwithstanding the foregoing, the Company                shall not publicly disclose the
name of any Investor, or include the name of any                Investor in any filing
with the Commission or any regulatory agency without the                prior written
consent of such Investor, except to the extent such disclosure is                required
by law or the regulations of any quotation system or exchange on which
               securities of the Company are listed. The Company agrees that, after the
               issuance of such press  

11 

	  	
release,
none of the Company’s communications to any Investor will include material,
nonpublic information, unless otherwise agreed by the Company and such Investor in
accordance with law.  

	  	        (kk)
                The Company agrees not to, directly or indirectly, sell, offer to
sell, solicit                offers to buy, dispose of, loan, pledge or grant any right
with respect to any                shares of Common Stock, or any securities convertible
into or exercisable or                exchangeable for, shares of Common Stock until the
date on which the                Registration Statement (as defined below in Section
8(a)) is declared effective                by the Commission, except for (i) grants of
options to purchase Common Stock                under stock option plans of the Company
or pursuant to existing agreements with                other persons, (ii) the issuance
of shares of Common Stock upon the exercise of                stock options issued under
such stock option plans and agreements, and (iii) the                issuance of shares
of Common Stock upon the exercise of currently outstanding                warrants. The
Company will use reasonable efforts to cause each of its directors                and
executive officers to enter into similar agreements with the Co-Placement
               Agents; provided that any such agreements shall permit the Company’s
               directors and executive officers to sell, dispose of, loan, pledge,
hypothecate                or otherwise transfer up to that number of shares of Common
Stock equal to the                greater of (i) 10% of the shares of the Common Stock
held by such officer or                director on the date hereof and (ii) to the extent
necessary to pay the exercise                price for, and all taxes incurred in
connection with, the exercise of any                options or warrants that would
otherwise expire during such restricted period.  

	  	        (ll)
                The Company has not made an election under Section 897(i) of the
United States                Revenue Code, and agrees to not make such an election
without the consent of the                Investors.  

        7.       Representations,
Warranties and Covenants of the Investor. Each Investor           severally, and not
jointly, represents and warrants to, and covenants with, the           Company that:  

	  	        (a)
                If the Investor is in the United States or is a resident of the
United States,                then the Investor is an “accredited investor” as
defined in Regulation                D and, as provided under Rule 502(b)(2)(v) under the
Securities Act, has                requested, received, reviewed and considered all
information it deems relevant                in making an informed decision to purchase
Shares. The Investor is experienced                in evaluating companies such as the
Company, and has such business and financial                experience as is required to
give it the capacity to utilize the information                received, to evaluate the
risks involved in purchasing Shares, and to protect                its own interests in
connection with the purchase of Shares and is able to bear                the risks of an
investment in Shares.  

	  	        (b)
                If the Investor is a resident of Canada, then the Investor is an
               “accredited investor” as defined in National Instrument 45-106
               “Prospectus and Registration Exemptions,” or if the Investor
does not                qualify as an “accredited investor” then the Investor
is purchasing                shares having an acquisition cost to the Investor of not
less than CDN $150,000,                and has requested, received, reviewed  

12 

	  	
and
considered all information it deems relevant in making an informed decision to purchase
Shares. The Investor is experienced in evaluating companies such as the Company, and has
such business and financial experience as is required to give it the capacity to utilize
the information received, to evaluate the risks involved in purchasing Shares, and to
protect its own interests in connection with the purchase of Shares and is able to bear
the risks of an investment in Shares.  

	  	        (c)
                If the Investor is not a resident of the United States, then the
Investor                represents that (i) is not a person in the United States or a
U.S. Person (as                defined in Regulation S under the Securities Act); (ii)
the offer to purchase                the Shares was not made to the Investor in the
United States; and (iii) at the                time the Investor executed and delivered
this Agreement to the Company, the                Investor (or the Investor’s
authorized signatory, if it is an entity) was                outside the United States.  

	  	        (d)
                The Investor understands that the Shares are “restricted
securities”               and have not been registered under the Securities Act and
is acquiring the                number of Shares set forth on the signature page hereto
in the ordinary course                of its business and for its own account with no
present intention of                distributing any Shares, or any arrangement or
understanding with any other                persons regarding the distribution of such
Shares, or otherwise. The                representation and warranty in the previous
sentence shall not limit the                Investor’s right to indemnification
under Section 10, other than with                respect to any claim arising out of a
breach of this representation and                warranty.  

	  	        (e)
                The Investor will not, directly or indirectly, offer, sell, pledge,
transfer or                otherwise dispose of (or solicit offers to buy, purchase or
otherwise acquire or                take a pledge of) any of the Shares, except in
compliance with the Securities                Act, applicable state and other securities
laws and the respective rules and                regulations promulgated thereunder.  

	  	        (f)
                Other than the transaction contemplated hereunder, the Investor has
not directly                or indirectly, nor has any person acting on behalf of or
pursuant to any                understanding with such Investor, executed any
disposition, including Short                Sales (but not including the location and/or
reservation of borrowable shares of                Common Stock), in the securities of
the Company during the period commencing                from the time that such Investor
first received a term sheet from the Company or                any other person setting
forth the material terms of the transactions                contemplated hereunder until
the date hereof (“Discussion Time”).                Notwithstanding the
foregoing, in the case of an Investor that is a                multi-managed investment
vehicle whereby separate portfolio managers manage                separate portions of
such Investor’s assets and the portfolio managers have                no direct
knowledge of the investment decisions made by the portfolio managers
               managing other portions of such Investor’s assets, the representation
set                forth above shall only apply with respect to the portion of assets
managed by                the portfolio manager that made the investment decision to
purchase the Shares                covered by this Agreement. Other than to other persons
party to this Agreement,                such Investor has maintained the  

13 

	  	
confidentiality
of all disclosures made to it in connection with the transaction contemplated hereby
(including the existence and terms of the transaction contemplated hereby).  

	  	        (g)
                Each Investor severally and not jointly with the other Investors
covenants that                neither it nor any affiliates acting on its behalf or
pursuant to any                understanding with it will execute any Short Sales during
the period after the                Discussion Time and ending at the time that the
transactions contemplated by                this Agreement are first publicly announced
as described in Section 6(jj) above.                Each Investor, severally and not
jointly with the other Investors, covenants                that until such time as the
transactions contemplated by this Agreement are                publicly disclosed by the
Company as described in Section 6(jj) above, such                Investor will maintain
the confidentiality of all disclosures made to it in                connection with this
transaction (including the existence and terms of this                transaction). Each
Investor understands and acknowledges, severally and not                jointly with any
other Investor, that the Commission currently takes the                position that
coverage of short sales of shares of the Common Stock                “against the box” prior
to the time at which the Registration                Statement is declared effective by
the Commission is a violation of Section 5 of                the Securities Act, as set
forth in Item 65, Section 5 under Section A, of the                Manual of Publicly
Available Telephone Interpretations, dated July 1997,                compiled by the
Office of Chief Counsel, Division of Corporation Finance.                Notwithstanding
the foregoing, no Investor makes any representation, warranty or                covenant
hereby that it will not engage in Short Sales in the securities of the
               Company after the time that the transactions contemplated by this
Agreement are                first publicly announced as described in Section 6(jj).
Notwithstanding the                foregoing, in the case of an Investor that is a
multi-managed investment vehicle                whereby separate portfolio managers
manage separate portions of such                Investor’s assets and the portfolio
managers have no direct knowledge of                the investment decisions made by the
portfolio managers managing other portions                of such Investor’s assets,
the covenant set forth above shall only apply                with respect to the portion
of assets managed by the portfolio manager that made                the investment
decision to purchase the Shares covered by this Agreement.  

	  	        (h)
                The Investor will have, not less than three business days prior to
the Closing                Date, furnished to the Company a fully completed (i) Investor
Questionnaire                substantially in the form attached hereto as Exhibit C,
for use in                preparation of the Registration Statement, (ii) either (a) an
executed                Accredited Investor Certificate in the form attached hereto as Exhibit
D,                including Exhibit 1 thereto, if the Investor is a resident of
Canada, or (b) an                Accredited Investor Certificate in the form attached
hereto as Exhibit E,                including Exhibit 1 thereto, if the Investor
is a person is a resident of the                United States or is a U.S. Person as
defined therein, and (iii) Form 4C as                attached hereto as Exhibit F,
if such Investor has not in the year prior                to the Closing Date completed
and filed Form 4C with the TSX Venture Exchange,                and all of the
information contained therein will be true and correct in all                material
respects as of such date and as of the Closing Date.  

14 

	  	        (i)
                The Investor has, in connection with its decision to purchase the
number of                Shares set forth on the signature page hereto, (i) relied only
upon the Amended                20-F Registration Statement, the representations and
warranties of the Company                contained in this Agreement and any other
information received from the Company                pursuant to Section 7(a), and (ii)
has not relied on any information or advice                furnished by or on behalf of
the Co-Placement Agents or any other person.  

	  	        (j)
                The Investor acknowledges that the certificates evidencing the Shareswill
be imprinted with a legend in substantially the following form (and a
               stop-transfer order may be placed against transfer of the certificates for
the                Shares):  

	  	
“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE TRANSFERRED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, AND IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS.” 

	  	
“UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE
SECURITY BEFORE [THAT DAY THAT IS 4 MONTHS AFTER CLOSING]" 

	  	
“WITHOUT
PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE
SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD,
TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX
VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT
UNTIL [THAT DAY THAT IS 4 MONTHS AFTER CLOSING].” 

	  	
The
Investor further acknowledges that, upon receipt of a Suspension Notice (as defined below
in Section 9(c)), the Investor will refrain from selling any Shares pursuant to the
Registration Statement until the Investor receives from the Company copies of a
supplemented or amended Prospectus prepared and filed by the Company with the Commission,
or until it is advised in writing by the Company that the current Prospectus may be used,
and has received copies of any additional or supplemental filings that are incorporated
or deemed incorporated by reference in any such Prospectus.  

15 

	  	        (k)
                The Investor further represents and warrants to, and covenants with,
the Company                that (i) if an entity, the Investor is duly organized and in
good standing in                the jurisdiction of its organization, (ii) the Investor
has full legal,                corporate or other right, power, authority and capacity to
enter into this                Agreement and to consummate the transactions contemplated
hereby and has taken                all necessary action to authorize the execution,
delivery and performance of                this Agreement, and (iii) this Agreement has
been duly authorized, executed and                delivered by, and constitutes a valid
and binding agreement of, the Investor,                enforceable against the Investor
in accordance with its terms, except as such                enforceability may be limited
by bankruptcy, insolvency, reorganization or                similar laws affecting the
rights of creditors generally, and subject to general                principles of
equity.  

	  	        (l)
                The Investor shall not disclose to any other person (other than to
its                directors, officers, employees, agents, advisors or representatives to
the                extent necessary or advisable in connection with the investment
decision to                purchase Shares hereunder) any information concerning this
Agreement or the                placement of Shares under this Agreement or any nonpublic
information disclosed                to the Investor by or on behalf of the Company in
connection with the offer and                sale of Shares under this Agreement, until
the Company shall have made a public                announcement of such information.  

	  	        (m)
                The Investor understands that nothing in this Agreement, or any
other materials                presented to the Investor in connection with the purchase
and sale of Shares                constitutes legal, tax, accounting or investment
advice. The Investor has                consulted such legal, tax, accounting and
investment advisors as it, in its sole                discretion, has deemed necessary or
appropriate in connection with its purchase                of Shares.  

	  	        (n)
                No representation has been made to the Investor regarding the
present or future                value of the Shares.  

	  	        (o)
                The Investor understands 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 upon the issuance of such orders, consents or
approvals as may be                required to permit such sale without the requirement
of filing a prospectus.  

	  	        (p)
                If required by applicable securities legislation, regulations,
rules, policies                or orders or by any securities commission, stock exchange
or other regulatory                authority, the Investor will execute, deliver, file
and otherwise assist the                Company in filing, such reports, undertakings and
other documents with respect                to the issue or continued ownership of the
Shares as may be required.  

	  	        (q)
                If the Investor is a resident of an International Jurisdiction
(which is defined                herein to mean a country other than Canada or the United
States), then the                Investor on its own behalf and, if applicable on behalf
of others for whom it is                hereby acting, confirms that:  

16 

	  	        (i)
                the Investor is knowledgeable of, or has been independently advised
as to, the                International Securities Laws (which is defined herein to mean,
in respect of                each and every offer or sale of Shares, any securities laws
having application                to the Investor and the private placement other than
the laws of Canada and the                United States and all regulatory notices,
orders, rules, regulations, policies                and other instruments incidental
thereto) which would apply to this                subscription, if any;  

	  	        (ii)
                the Investor is purchasing the Shares pursuant to an applicable
exemption from                any prospectus, registration or similar requirements under
the International                Securities Laws of that International Jurisdiction, or,
if such is not                applicable, the Investor is permitted to purchase the
Shares under the                International Securities Laws of the International
Jurisdiction without the need                to rely on exemptions;  

	  	        (iii)
                the subscription by the Investor does not contravene any of the
International                Securities Laws applicable to the Investor and the Company
and does not give                rise to any obligation of the Company or the Agents to
prepare and file a                prospectus or similar document or to register the
Shares or to be registered                with any governmental or regulatory authority;  

	  	        (iv)
                the International Securities Laws do not require the Company to make
any filings                or seek any approvals of any kind whatsoever from any
regulatory authority of                any kind whatsoever in the International
Jurisdiction; and  

	  	        (v)
                the Shares are being acquired for investment purposes only and not
with a view                to resale and distribution, and the distribution of the Shares
to the Investor                by the Company complies with all International Securities
Laws.  

	  	        (r)
                The funds representing the aggregate purchase price for the Shares
which will be                advanced by the Investor hereunder will not represent
proceeds of crime for the                purposes of the Proceeds of Crime (Money
Laundering) and Terrorist Financing                Act  (Canada) and the Investor
acknowledges that the Company may in the                future be required by law to
disclose the Investor’s name and other                information relating to this
Agreement and the Investor’s purchase                hereunder, on a confidential
basis, pursuant to such Act. To the best of its                knowledge: (i) none
of the purchase funds to be provided by the Investor                (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, or any other                jurisdiction, or
(B) are being tendered on behalf of a person or entity who                has not
been identified to the Investor; and (ii) the Investor shall                promptly
notify the Company and the Agents if the Investor discovers that any of
               such representations ceases to be true,  

17 

	  	
and
to provide the Company and the Agents with appropriate information in connection
therewith.  

	  	        (s)
                The Investor represents that: (i) based on the closing price of the
               Company’s Common Stock on the Closing Date, the Investor, together
with its                ultimate parent entity and all entities controlled by the same
ultimate parent                as the Investor (such entities, including the Investor,
hereinafter collectively                referred to as the “Investor Affiliates,” except
that the term                Investor Affiliates will not include investment companies
registered with the                Commission under the Investment Company act of 1940),
will not hold in excess of                $53.1 million of the Company’s outstanding
voting securities as a result of                the sale and purchase of Shares pursuant
to this Agreement, and (ii) all voting                securities of the Company that the
Investor Affiliates will hold, directly or                indirectly, at the Closing Date
(after giving effect to the sale and purchase of                Shares pursuant to this
Agreement), will be held solely for the purpose of                passive investment such
that these securities will be held by the Investor                Affiliates with no
intention on the part of any of them to participate in the                formulation,
determination or direction of the basic business decisions of the                Company.
The Investor Affiliates are relying on the exemption available to them                as
passive investors under Section 7A(c)(9) of the Hart-Scott-Rodino Antitrust
               Improvements Act of 1976, as amended, and regulations promulgated
thereunder                (including 16 C.F.R. Sec. 802.9) in their determination that
the sale and                purchase of Shares pursuant to this Agreement does not
require them to submit                any Hart-Scott-Rodino Notification and Report Form.  

	  	        (t)
                The Investor represents that it will deliver a prospectus upon any
resale of                Shares whenever such delivery is required by law.  

	  	        (u)
                The Investor represents that the acquisition of Shares hereunder
will not result                in the Investor becoming a “Control Person,” as
defined under the                applicable Canadian securities laws.  

	  	        (v)
                The Investor acknowledges that the Company and its counsel are
entitled to rely                on the representations made above.  

	  	        (w)
                The Investor understands that it is not purchasing the Shares
pursuant to a                prospectus and acknowledges that: (i) no securities
commission or similar                regulatory authority has reviewed or passed on the
merits of the Shares; (ii)                there is no government or other insurance
covering the Shares; (iii) there are                risks associated with the purchase of
the Shares; (iv) there are restrictions on                the Investor’s ability to
resell the Shares, and it is the responsibility                of the Investor to find
out what those restrictions are and to comply with them                before selling
such securities; and (v) the Company has advised the Investor                that the
Company is relying on an exemption from the requirements to provide the
               Investor with a prospectus and to sell securities through a person
registered to                sell securities under the applicable Canadian securities
laws and, as a                consequence of acquiring securities pursuant to this
exemption, certain                protections, rights and remedies  

18 

	  	
provided
by the applicable Canadian securities laws , including statutory rights of rescission or
damages, will not be available to the Investor.  

	  	        (x)
                The Investor, on its own behalf and on behalf of any other person
for whom it is                contracting hereunder, acknowledges and consents to the
release by the Company                of certain information regarding the Investor’s
subscription, including the                Investor’s name, address, telephone
number and registration instructions,                the number of Shares purchased, the
number of securities of the Company held,                the status of the Investor as an
insider, as a “Pro Group” member or                as otherwise represented
herein, and, if applicable, information regarding                beneficial ownership of
or the principal of the Investor, in compliance with                securities regulatory
policies to regulatory authorities (including the TSX                Venture Exchange) in
reporting jurisdictions or to other authorities as required                by law and to
the transfer agent of the Company for the purpose of arranging for                the
preparation of the certificates representing the Shares issuable in
               connection with this Agreement; provided that the Company may not disclose
any                information regarding the Investor’s subscription without the
prior written                consent of the Investor where such disclosure would be in
the Company’s                discretion and not required by the applicable
securities regulatory policies.                The purpose of the collection of the
information is to ensure the Company and                its advisors will be able to
issue Shares to the Investor in compliance with                applicable Canadian
securities laws and the instructions of the Investor and to                obtain the
information required to be provided in documents required to be filed                with
the TSX Venture Exchange and with securities regulatory authorities under
               applicable securities laws and other authorities as required by law. In
               addition, the Investor acknowledges and consents to the collection, use
and                disclosure of all such personal information by the TSX Venture
Exchange and                other regulatory authorities in accordance with their
requirements, including                the provision to third party service providers,
from time to time. The contact                information for the officer of the Company
who can answer questions about the                collection of information by the
Company is as follows:  

	  	
Lynn Peterson

Kodiak Oil & Gas Corp.

1625 Broadway, Suite 330

Denver, Colorado 80202

Tel: (303) 592-8075

Fax:  (303) 592-8071

        8.       Registration.
The Company shall:  

	  	        (a)
                prepare and file with the Commission, not later than 60 calendar
days following                the later of the (i) date of receipt by the Company of
approval for listing of                the Common Stock on the American Stock Exchange
and (ii) the Closing Date (the                “Filing Deadline Date”), a
registration statement on Form F-1 (the                “Registration Statement”)
to enable the resale of Shares by the                Investors from time to time under
the Securities Act;  

19 

	  	        (b)
                use its commercially reasonable best efforts, subject to receipt of
information                from the Investors set forth in Exhibit C, to cause the
Registration Statement                to be declared effective under the Securities Act
as soon as practicable but in                no event later than the date (the “Effectiveness
Deadline Date”) that                is 90calendar days after the Filing
Deadline Date; provided that if the                Commission elects to review the
Registration Statement, the Effectiveness                Deadline Date shall be the date
that is 120 days from the date of filing of the                Registration Statement.  

	  	        (c)
                upon effectiveness of the Registration Statement the Company will
use its                commercially reasonable best efforts to cause the Shares to be
listed on the                American Stock Exchange or any other registered United
States national                securities exchange. In the event that the Shares cannot
be listed on the                American Stock Exchange or any other United States
national securities exchange,                the Company shall use its commercially
reasonable best efforts to list the                Shares on the TSX Venture Exchange as
soon as practicable.  

	  	        (d)
                during the period from the date on which the Registration Statement
is declared                effective until the earlier of (i) such time as all Investors
may immediately                sell all of the Shares purchased under this Agreement
under Rule 144(b) and (ii)                such time as all Investors have sold all of the
Shares that the Investors                purchased under this Agreement (such period, the
“Effectiveness                Period”), the Company shall: (A) use its
commercially reasonable best                efforts to prepare and file with the
Commission such amendments and supplements                to the Registration Statement
as may be necessary or appropriate to keep such                Registration Statement
current and continuously effective; (B) cause the                Prospectus used in
connection with such Registration Statement to be                supplemented by any
required Prospectus supplement, and as so supplemented to be                filed
pursuant to Rule 424 (or any similar provisions then in force) under the
               Securities Act; and (C) use its commercially reasonable best efforts to
comply                with the provisions of the Securities Act applicable to it with
respect to the                disposition of all securities covered by such Registration
Statement during the                Effectiveness Period in accordance with the intended
methods of disposition by                the sellers thereof set forth in such
Registration Statement, as so amended, or                such Prospectus, as so
supplemented;  

	  	        (e)
                as soon as practicable, but in any event within two business days,
give notice                to each Investor when any Prospectus, Prospectus supplement,
or the Registration                Statement or any post-effective amendment to the
Registration Statement has been                filed with the Commission and, with
respect to a Registration Statement or any                post-effective amendment, when
the same has been declared effective;  

	  	        (f)
                furnish to each Investor such number of copies of the Registration
Statement,                Prospectuses (including Prospectus supplements) and preliminary
versions of the                Prospectus filed with the Commission (“Preliminary
Prospectuses”) in                conformity with the requirements of the Securities
Act, and such other documents                as such Investor may reasonably request, in
order to  

20 

	  	
facilitate
the public sale or other disposition of all or any of the Shares by such Investor;
provided, however, that unless waived by the Company in writing, the obligation of the
Company to deliver copies of Prospectuses or Preliminary Prospectuses to any Investor
shall be subject to the receipt by the Company of reasonable assurances from such
Investor that such Investor will comply with the applicable provisions of the Securities
Act and of such other securities or Blue Sky laws as may be applicable in connection with
any use of such Prospectuses or Preliminary Prospectuses;  

	  	        (g)
                file documents required of the Company for normal blue sky clearance
in all                states requiring blue sky clearance; provided that the Company will
not be                required to (i) qualify as a foreign corporation or as a dealer in
securities in                any jurisdiction where it would not otherwise be required to
qualify but for                this Agreement or (ii) take any action that would subject
it to general service                of process in suits or to taxation in any such
jurisdiction where it is not then                so subject;  

	  	        (h)
                advise the Investors at the earliest possible moment after the
Company shall                receive notice or obtain knowledge of (i) the issuance of
any stop order by the                Commission delaying or suspending the effectiveness
of the Registration                Statement or (ii) suspension of the qualification (or
exemption from                qualification) of any of the Shares for sale in any
jurisdiction in which they                have been qualified for sale, or, in each case,
the initiation of any proceeding                for that purpose; and promptly use its
commercially reasonable best efforts to                prevent the issuance of any stop
order or suspension or obtain its withdrawal at                the earliest possible
moment if such stop order should be issued or suspension                levied; and  

	  	        (i)
                bear all fees and expenses (other than fees and expenses of each
Investor’s                legal counsel or other advisers, and underwriting
discounts, brokerage fees and                commissions, if any) incurred in connection
with the performance by the Company                of its obligations under paragraphs
(a) through (g) and the registration of                Shares pursuant to the
Registration Statement, whether or not the Registration                Statement is
declared effective.  

        9.       Transfer
of Shares after Registration; Suspension.  

	  	        (a)
                Each Investor agrees that it will not effect any disposition of the
Shares, or                its right to purchase Shares, that would constitute a sale
within the meaning of                the Securities Act except as contemplated in the
Registration Statement referred                to in Section 8(a) of this Agreement and
as described below, in accordance with                Section 16 of this Agreement or as
otherwise permitted by law, and that it will                promptly notify the Company
of any change in any such information until such                time as such Investor has
sold all of its Shares or until the Company is no                longer required to keep
the Registration Statement effective. Prior to any                proposed transfer of
any Shares other than pursuant to the Registration                Statement, Rule 144 or
Rule 904 of Regulation S, the Investor proposing to make                such transfer
shall give written notice to the Company of such Investor’s                intention  

21 

	  	
to
effect such transfer, which notice shall set forth the date of such proposed transfer.
Such Investor also shall furnish to the Company (i) a written agreement by the proposed
transferee that it is taking and holding the same subject to the terms and conditions
specified in this Agreement and (ii) a written opinion of such Investor’s counsel,
in a form reasonably satisfactory to the Company, to the effect that the proposed
transfer may be effected without registration under the Securities Act.  

	  	        (b)
                Except in the event that paragraph (c) below applies, the Company
shall:  

	  	        (i)
                if it deems necessary, prepare and file from time to time with the
Commission                one or more post-effective amendments to the Registration
Statement or                supplements to the related Prospectus so that such
Registration Statement will                not contain an untrue statement of a material
fact or omit to state a material                fact required to be stated therein or
necessary to make the statements therein                not misleading, and so that, as
thereafter delivered to purchasers of the Shares                being sold thereunder,
such Prospectus will not contain an untrue statement of a                material fact or
omit to state a material fact required to be stated therein or                necessary
to make the statements therein, in the light of the circumstances                under
which they were made, not misleading; and  

	  	        (ii)
                as soon as practicable provide to each Investor copies of any
documents filed                pursuant to the preceding Section 9(b)(i).  

	  	        (c)
                Subject to paragraph (d) below, in the event of:  

	  	        (i)
                any request by the Commission or any other federal or state
governmental                authority during the Effectiveness Period for amendments or
supplements to the                Registration Statement or related Prospectus or for
additional information;  

	  	        (ii)
                the issuance by the Commission or any other federal or state
governmental                authority of any stop order suspending the effectiveness of
the Registration                Statement or the initiation of any proceedings for that
purpose;  

	  	        (iii)
                the receipt by the Company of any notification with respect to the
suspension of                the qualification (or exemption from qualification) of any
of the Shares for                sale in any jurisdiction in which they have been
qualified for sale or the                initiation of any proceeding for such purpose;
or  

	  	        (iv)
                any event or circumstance which necessitates the making of any
changes in the                Registration Statement or Prospectus so that, in the case
of the Registration                Statement, it will not contain any untrue statement of
a material fact or any                omission to state a material fact required to be
stated therein or necessary to                make the statements therein not misleading,  

22 

	  	
and
that in the case of the Prospectus, it will not contain any untrue statement of a
material fact or any omission to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading;  

	  	
the
Company shall promptly deliver a certificate in writing to each Investor (the “Suspension
Notice”) to the effect of the foregoing and, upon receipt of such Suspension Notice,
such Investor will refrain from selling any Shares pursuant to the Registration Statement
(a “Suspension”) until such Investor receives from the Company copies of a
supplemented or amended Prospectus prepared and filed by the Company, or until it is
advised in writing by the Company that the current Prospectus may be used. In the event
of any Suspension, the Company will use its commercially reasonable best efforts to cause
the use of the Prospectus so suspended to be resumed as soon as practicable after
delivery of a Suspension Notice to the Investor, and the Company shall as soon as
practicable provide each Investor with copies of any supplemented or amended Prospectus
or, as the case may be, advise each Investor in writing that the current Prospectus may
be used.  

	  	        (d)
                Notwithstanding the foregoing paragraphs of this Section 9, the
Company shall                use its commercially reasonable best efforts to ensure that
each Investor shall                not be prohibited from selling Shares under the
Registration Statement as a                result of Suspensions of not more than 60 days
in the aggregate in any 12-month                period.  

	  	        (e)
                In addition, subject to compliance with applicable law, the Company
shall use                its commercially reasonable best efforts to ensure that the
Company’s                transfer agent expeditiously effects all sales of Shares
under the Registration                Statement that the Investor may have from time to
time, including the prompt                removal of any restrictive legends.  

        10.       Indemnity
and Contribution.  

	  	        (a)
                For purposes of this Section 10:  

	  	        (i)
                the term “Selling Stockholder” shall include the Investor
and each                person, if any, who controls the Investor within the meaning of
Section 15 of                the Securities Act or Section 20 of the Exchange Act; and  

	  	        (ii)
                the term “Registration Statement” shall include any final
Prospectus,                exhibit, supplement or amendment included in or relating to
the Registration                Statement (or deemed to be a part thereof);  

	  	        (b)
                The Company agrees:  

	  	        (i)
                to indemnify and hold harmless each Selling Stockholder against any
losses,                claims, damages or liabilities to which such Selling Stockholder
may become                subject under the Securities Act or otherwise,  

23 

	  	
insofar
as such losses, claims, damages or liabilities (or actions or proceedings in respect
thereof) arise out of or are based upon (A) any untrue statement or alleged untrue
statement of any material fact contained in the Registration Statement, (B) the omission
or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein (in the case of any Prospectus or amendment or
supplement thereto, in the light of the circumstances under which they were made) not
misleading, (C) any inaccuracy in the representations and warranties of the Company
contained in this Agreement or the failure of the Company to perform its obligations
hereunder or (D) any failure by the Company to fulfill any undertaking included in the
Registration Statement; provided, however, that the Company shall not be liable in any
such case to the extent that such loss, claim, damage or liability arises out of or is
based upon an untrue statement or alleged untrue statement, or omission or alleged
omission made in the Registration Statement in reliance upon and in conformity with
written information furnished to the Company by or on behalf of such Selling Stockholder
specifically for use in preparation of the Registration Statement or the failure of such
Selling Stockholder to comply with its covenants and agreements contained in Section 7, 9
or 15 hereof.  

	  	        (ii)
                to reimburse each Selling Stockholder upon demand for any legal or
other                out-of-pocket expenses reasonably incurred by such Selling
Stockholder in                connection with investigating or defending any such loss,
claim, damage or                liability, action or proceeding or in responding to a
subpoena or governmental                inquiry related to the offering of the Shares,
whether or not such Selling                Stockholder is a party to any action or
proceeding. In the event that it is                finally judicially determined that a
Selling Stockholder was not entitled to                receive payments for legal and
other expenses pursuant to this subparagraph,                such Selling Stockholder
will promptly return all sums that had been advanced                pursuant hereto.  

	  	        (c)
                Each Investor agrees to indemnify and hold harmless the Company,
each of its                directors, each of its officers who has signed the
Registration Statement and                each person, if any, who controls the Company
within the meaning of the                Securities Act, against any losses, claims,
damages or liabilities to which the                Company or any such director, officer
or controlling person may become subject                under the Securities Act or
otherwise, insofar as such losses, claims, damages                or liabilities (or
actions or proceedings in respect thereof) arise out of or                are based upon
(i) any failure by such Investor to comply with the covenants and
               agreements contained in Section 7, 9 or 15, (ii) any inaccuracy in the
               representations and warranties of the Investor contained in this
Agreement, or                (iii) any untrue statement or alleged untrue statement of a
material fact                contained in the Registration Statement or any omission or
alleged omission to                state therein a material fact required to be stated
therein or necessary to make                the statements therein, in the light of the
circumstances under which they were                made, not misleading; and will
reimburse any legal or other expenses reasonably                incurred by  

24 

	  	
the
Company or any such director, officer or controlling person in connection with
investigating or defending any such loss, claim, damage, liability, action or proceeding;
provided, however, that each Investor will be liable, in the case of clause (iii)
above, to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission has been made in the Registration
Statement in reliance upon and in conformity with written information furnished to the
Company by or on behalf of such Investor specifically for use in preparation of the
Registration Statement. The maximum obligation of an Investor to indemnify under this
Section 10 shall be limited to the net amount of the proceeds received by such Investor
from the sale of Shares pursuant to the Registration Statement to which the loss, claim,
damage or liability relates.  

	  	        (d)
                In case any proceeding (including any governmental investigation)
shall be                instituted involving any person in respect of which indemnity may
be sought                pursuant to this Section 10, such person (the “indemnified
party”)                shall promptly notify the person against whom such indemnity
may be sought (the                “indemnifying party”) in writing. No
indemnification provided for in                Section 10(b) or (c) shall be available to
any party who shall fail to give                notice as provided in this subsection if
the party to whom notice was not given                was unaware of the proceeding to
which such notice would have related and was                materially prejudiced by the
failure to give such notice, but the failure to                give such notice shall not
relieve the indemnifying party or parties from any                liability that it or
they may have to the indemnified party for contribution or                otherwise than
on account of the provisions of Section 10(b) or (c). In case any                such
proceeding shall be brought against any indemnified party and it shall
               notify the indemnifying party of the commencement thereof, the
indemnifying                party shall be entitled to participate therein and, to the
extent that it shall                wish, jointly with any other indemnifying party
similarly notified, to assume                the defense thereof, with counsel
satisfactory to such indemnified party and                shall pay as incurred the fees
and disbursements of such counsel related to such                proceeding. In any such
proceeding, any indemnified party shall have the right                to retain its own
counsel at its own expense. Notwithstanding the foregoing, the
               indemnifying party shall pay as incurred (or within 30 days of
presentation) the                fees and expenses of the counsel retained by the
indemnified party in the event                (i) the indemnifying party and the
indemnified party shall have mutually agreed                to the retention of such
counsel, (ii) the named parties to any such proceeding                (including any
impleaded parties) include both the indemnifying party and the                indemnified
party and representation of both parties by the same counsel would                be
inappropriate due to actual or potential differing interests between them or
               (iii) the indemnifying party shall have failed to assume the defense and
employ                counsel acceptable to the indemnified party within a reasonable
period of time                after notice of commencement of the action.  

	  	        
        It
is understood that the indemnifying party shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable fees and
expenses of more than one separate firm for all such indemnified parties. Such firm shall
be designated in writing by a Selling  

25 

	  	
Stockholder
in the case of parties indemnified pursuant to Section 10(b) and by the Company in the
case of parties indemnified pursuant to Section 10(c). The indemnifying party shall not
be liable for any settlement of any proceeding effected without its written consent but
if settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party from and against any loss or
liability by reason of such settlement or judgment. In addition, the indemnifying party
will not, without the prior written consent of the indemnified party, settle or
compromise or consent to the entry of any judgment in any pending or threatened claim,
action or proceeding of which indemnification may be sought hereunder unless such
settlement, compromise or consent includes an unconditional release of each indemnified
party from all liability arising out of such claim, action or proceeding.  

	  	        (e)
                If the indemnification provided for in this Section 10 is
unavailable or                insufficient to hold harmless an indemnified party under
subsection (b) or (c)                above in respect of any losses, claims, damages or
liabilities (or actions or                proceedings in respect thereof) referred to
therein, then each indemnifying                party shall contribute to the amount paid
or payable by such indemnified party                as a result of such losses, claims,
damages or liabilities (or actions or                proceedings in respect thereof) in
such proportion as is appropriate to reflect                the relative fault of the
Company on the one hand and the Selling Stockholder on                the other hand in
connection with the statements or omissions or other matters                that resulted
in such losses, claims, damages or liabilities (or actions or                proceedings
in respect thereof), as well as any other relevant equitable
               considerations. The relative fault shall be determined by reference to,
among                other things, in the case of an untrue statement or omission,
whether the untrue                statement or omission relates to information supplied
by the Company on the one                hand or a Selling Stockholder on the other and
the parties’ relative                intent, knowledge, access to information and
opportunity to correct or prevent                such untrue statement or omission. The
Company and each Investor agree that it                would not be just and equitable if
contribution pursuant to this subsection (e)                were determined by pro rata
allocation (even if all Selling Stockholders were                treated as one entity
for such purpose) or by any other method of allocation                that does not take
into account the equitable considerations referred to above                in this
subsection (e). The amount paid or payable by an indemnified party as a
               result of the losses, claims, damages or liabilities (or actions or
proceedings                in respect thereof) referred to above in this subsection (e)
shall be deemed to                include any legal or other expenses reasonably incurred
by such indemnified                party in connection with investigating or defending
any such action or claim.                Notwithstanding the provisions of this
subsection (e), no Investor shall be                required to contribute any amount in
excess of the amount by which the net                amount of the proceeds received by
such Investor from the sale of Shares                pursuant to the Registration
Statement to which the losses, claims, damages or                liabilities relate
exceeds the amount of any damages that such Investor has                otherwise been
required to pay by reason of the statements or omissions or other                matters
that resulted in such losses, claims, damages or liabilities. No person
               guilty of fraudulent misrepresentation (within the meaning of Section
10(f) of                the  

26 

	  	
Securities
Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. Each Investor’s obligation under this subsection to
contribute shall be in proportion to its sale of Shares to which such loss relates and
shall not be joint with any other Selling Shareholder.  

	  	        (f)
                In any proceeding relating to the Registration Statement, each party
against                whom contribution may be sought under this Section 10 hereby
consents to the                jurisdiction of any court having jurisdiction over any
other contributing party,                agrees that process issuing from such court may
be served upon him or it by any                other contributing party and consents to
the service of such process and agrees                that any other contributing party
may join him or it as an additional defendant                in any such proceeding in
which such other contributing party is a party.  

	  	        (g)
                Any losses, claims, damages, liabilities or expenses for which an
indemnified                party is entitled to indemnification or contribution under
this Section 10 shall                be paid by the indemnifying party to the indemnified
party as such losses,                claims, damages, liabilities or expenses are
incurred. The indemnity and                contribution agreements contained in this
Section 10 and the representations and                warranties of the Company and each
Investor set forth in this Agreement shall                remain operative and in full
force and effect, regardless of (i) any                investigation made by or on behalf
of any Selling Stockholder, the Company, its                directors or officers or any
persons controlling the Company, (ii) the sale of                any Shares hereunder,
and (iii) any termination of this Agreement.  

	  	        (h)
                The remedies provided for in this Section 10 are not exclusive and
shall not                limit any rights or remedies that may otherwise be available to
any indemnified                party at law or equity.  

        11.       Termination
of Conditions and Obligations. The conditions precedent           imposed by Sections
7, 8 and 9 upon the transferability of Shares shall cease           and terminate as to
any particular number of Shares (and the legend on such           Shares will be removed
by the Company) at such time (i) solely with respect to           Shares, as such Shares
have been effectively registered under the Securities Act           , (ii) upon the
termination on the restrictions on the sales of such Shares           under Rule 144(k),
or (iii) at such time as an opinion of counsel satisfactory           to the Company
shall have been rendered to the effect that such conditions are           not necessary
in order to comply with the Securities Act. The Company shall           cause its counsel
to issue a legal opinion to the Company’s transfer agent           within two
trading days after the date on which the Registration Statement under           which the
Shares may be sold is declared effective by the Commission (the           “Effective
Date”) to the effect that a registration statement with           respect to such
Shares has become effective under the Securities Act and that           such Shares may
be transferred without restriction under the Securities Act.           Following the
Effective Date or at such earlier time as a legend is no longer           required for
certain Shares, the Company will no later than two trading days           following the
delivery by an Investor to the Company or the Company’s           transfer agent of
a legended certificate representing such Shares deliver or           cause to be
delivered to such Investor a certificate representing such Shares           that is free
from all restrictive and other legends.  

27 

        12.       Information
Available. So long as the Registration Statement is effective           covering the
resale of Shares owned or issuable to an Investor, the Company will           furnish (or
to the extent such information is available electronically through           the Company’s
filings with the Commission, the Company will make available           through its
Internet website) to such Investor as soon as practicable after it           is available
(but in the case of the Company’s Annual Report to           Stockholders, within 90
days of each fiscal year of the Company), one copy of:  

	  	        (a)
                its Annual Report to Shareholders (which Annual Report shall contain
financial                statements audited in accordance with generally accepted
auditing standards by                an independent registered accounting firm with
respect to the Company within the                meaning of the Securities Act and the
applicable rules and regulations                thereunder adopted by the Commission and
the United States Public Company                Accounting Oversight Board) and, if not
included in substance in the Annual                Report to Shareholders, its Annual
Report on Form 10-K (the foregoing, in each                case, excluding exhibits); and  

	  	        (b)
                upon the reasonable request of the Investor, all exhibits excluded
by the                parenthetical to subparagraph (a) of this Section 12, if such
exhibits are not                publicly available, as filed with the Commission.  

        13.       Independent
Nature of Investors’ Obligations and Rights. The           obligations of each
Investor under this Agreement are several and not joint with           the obligations of
any other Investor, and no Investor shall be responsible in           any way for the
performance of the obligations of any other Investor under this           Agreement. The
decision of each Investor to purchase Shares under this Agreement           has been made
by such Investor independently of any other Investor and           independently of any
information, materials, statements or opinions as to the           business, affairs,
operations, assets, properties, liabilities, results of           operations, condition
(financial or otherwise) or prospects of the Company or           any of its Subsidiaries
that may have been made or given by any other Investor           or by any agent or
employee of any other Investor, other than with respect to           investment advisors
who provide discretionary investment services to more than           one Investor, and no
Investor or any of its agents or employees shall have any           liability to any
other Investor (or any other person) relating to or arising           from any such
information, materials, statements or opinions. Nothing contained           in this
Agreement, and no action taken by any Investor pursuant hereto, shall be           deemed
to constitute the Investors as a partnership, an association, a joint           venture
or any other kind of entity, or create a presumption that the Investors           are in
any way acting in concert or as a group with respect to such obligations           or the
transactions contemplated by this Agreement. Each Investor acknowledges           that no
other Investor has acted as agent for such Investor in connection with           making
its investment hereunder and that no other Investor will be acting as           agent of
such Investor in connection with monitoring its investment hereunder.           Each
Investor shall be entitled to independently protect and enforce its rights,
          including without limitation the rights arising out of this Agreement, and it
          shall not be necessary for any other Investor to be joined as an additional
          party in any proceeding for such purpose.  

        14.       Co-Placement
Agents and Other Fees. The Investor acknowledges that the           Company is
obligated to (a) pay fees to KeyBanc, Petrie and Dominick, in each           case in
their capacity as Co-Placement Agent, based on contractual obligations           relating
to the sale of the Shares to the Investors. The Company shall indemnify           and
hold harmless each Investor from  

28 

and against all fees, commissions or
other payments owing by the Company to KeyBanc, Sanders or any other person or firm
acting on behalf of the Company in connection with the transactions contemplated by this
Agreement.  

        15.       Brokers.
Each Investor acknowledges that there are no fees, commissions           or other
payments owing to any broker, finder or intermediary acting on behalf           of such
Investor in connection with the transactions contemplated by this           Agreement.  

        16.       Rule
144. (a) The Company covenants that, if at any time before the end           of the
Effectiveness Period the Company is not subject to the reporting           requirements
of the Exchange Act, it will cooperate with each Investor and take           such further
reasonable action as the Investor may reasonably request in writing           (including,
without limitation, making such reasonable representations as such           Investor may
reasonably request), all to the extent required from time to time           to enable
such Investor to sell Shares without registration under the Securities           Act
within the limitation of the exemptions provided by Rule 144 and Rule 144A
          under the Securities Act (or any successor rule) and customarily taken in
          connection with sales pursuant to such exemptions. Upon the written request of
          an Investor, the Company shall deliver to such Investor a written statement as
          to whether it has complied with such reporting requirements, unless such a
          statement has been included in the Company’s most recent report filed
          pursuant to Section 13 or Section 15(d) of Exchange Act. Notwithstanding the
          foregoing, nothing in this Section 16 shall be deemed to require the Company to
          register any of its securities (other than the Common Stock) under any section
          of the Exchange Act.  

	  	        (b)
                The Company shall comply with the requirements set forth in the
instructions to                Form F-1 in order to allow the Company to be eligible to
file registration                statements on Form F-1, and shall file all reports
required to be filed by it                under the Exchange Act.  

        17.       Liquidated
Damages. Nothing shall preclude any Investor from pursuing or           obtaining, at
any time, specific performance or other equitable relief with           respect to this
Agreement.  

        18.       Notices.
All notices and other communications provided for or permitted           hereunder shall
be made in writing by hand delivery, by telecopier, by courier           guaranteeing
overnight delivery or by first-class mail, return receipt           requested, and shall
be deemed given (a) when made, if made by hand           delivery, (b) upon
confirmation, if made by telecopier, (c) one (1) business day           after being
deposited with such courier, if made by overnight courier or (d) on           the date
indicated on the notice of receipt, if made by first-class mail, to the           parties
as follows:  

	  	        (a)              if
to an Investor, at its address on the signature page hereto;  

	  	        (b)              if
to the Company, to:  

	  	
Kodiak Oil & Gas Corp.    

1625 Broadway, Suite 330  

Denver, Colorado  80202   

Attention: Lynn Peterson  

Fax:  (303) 529-8071      

29 

	  	
 With a copy to:                  

                                  

 Dorsey & Whitney LLP             

 1420 Fifth Avenue, Suite 3400    

 Seattle, Washington 98101        

 Attention: Randal Jones          

 Fax:  (206) 903-8820             

or to such other address as such
person may have furnished to the other persons identified in this Section 18 in writing in
accordance herewith. 

        19.       Modification;
Amendment. The provisions of this Agreement may not be           amended, modified or
supplemented unless pursuant to an instrument in writing           signed by the Company
and each Investor.  

        20.       Assignment.
Subject to Section 9 hereof, the rights and obligations of           each Investor under
this Agreement shall be automatically assigned by such           Investor to any
transferee of all or any portion of such Investor’s Shares           in any private
transfer of such Shares. Upon any transfer permitted by this           Section 20,
the Company shall be obligated to such transferee to perform           all of its
covenants under this Agreement as if such transferee were the           Investor.  

        21.       Headings.
The headings of the various sections of this Agreement have           been inserted for
convenience of reference only and shall not be deemed to be           part of this
Agreement.  

        22.       Severability.
If any term provision, covenant or restriction of this           Agreement is held to be
invalid, illegal, void or unenforceable, the remainder           of the terms,
provisions, covenants and restrictions set forth herein shall           remain in full
force and effect and shall in no way be affected, impaired or           invalidated
thereby, and the parties hereto shall use their best efforts to find           and employ
an alternative means to achieve the same or substantially the same           result as
that contemplated by such term, provision, covenant or restriction, it           being
intended that all of the rights and privileges of the parties shall be
          enforceable to the fullest extent permitted by law.  

        23.       Governing
Law. This Agreement shall be governed by, and construed in           accordance with,
the internal laws of the State of New York, without giving           effect to the
principles of conflicts of law.  

        24.       Counterparts.
This Agreement may be executed in two or more counterparts,           each of which shall
constitute an original, but all of which, when taken           together, shall constitute
but one instrument, and shall become effective when           one or more counterparts
have been signed by each party hereto and delivered to           the other parties.  

        25.       Entire
Agreement. This Agreement is intended by the parties as a final           expression
of their agreement and is intended to be a complete and exclusive           statement of
the agreement and understanding of the parties hereto with respect           to the
subject matter contained herein. Except as provided in this Agreement,           there
are no restrictions, promises, warranties or undertakings, other than           those set
forth or referred to herein, with respect to such matters. This  

30 

Agreement supersedes all prior
agreements and undertakings among the parties with respect to such matters. No party
hereto shall have any rights, duties or obligations other than those specifically set
forth in this Agreement.  

[signature page
follows]  

31 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above. 

	  	
By:__________________________________________________________

                                                                      

                                                                       

Name:________________________________________________________

                                                                       

Title:_________________________________________________________

                                                                       

Address:______________________________________________________

                                                                       

        _____________________________________________________________

                                                                       

        _____________________________________________________________

                                                                       

Number of Shares:                                                      

                                                                       

Aggregate Purchase Price:                                              

                                                                       

Tax Identification Number:_________________________________________

                                                                       

Contact Name:__________________________________________________

                                                                       

Telephone:_____________________________________________________

                                                                       

Name in which the Shares should be                                     

registered (if different):____________________________________________

                                                                       

Relationship between the Investor and                                  

the person or entity in whose name the                                 

Shares should be registered (if                                        

different):______________________________________________________

Agreed to and Accepted by: 

	  	
 Kodiak Oil & Gas Corp.                     

                                            

                                            

  By:  ___________________________________  

       Name:                                

       Title:                               

SCHEDULE I  

Subsidiaries 

Kodiak Oil & Gas
(USA) Inc. 

Schedule I-1 

SCHEDULE II  

Securities
Exchangeable or Convertible for Common Stock 

Options Outstanding 

	
     (CDN $)      

  Exercise Price  	
 Number of Options Outstanding  	
Expiry Date 
	
	
	

	$0.15	 	100,000	 	December 6, 2006	 
	$0.15	 	1,187,000	 	December 4, 2008	 
	$0.50	 	1,000,000	 	March 1, 2009	 
	$1.00	 	751,500	 	August 23, 2009	 
	$1.20	 	900,000	 	October 16, 2010	 

Schedule II-1 

SCHEDULE III  

Registration and Other
Rights 

None 

Schedule III-1 

EXHIBIT A  

OPINION OF COUNSEL TO
THE COMPANY 

        The
opinion of Dorsey & Whitney LLP, counsel to the Company, to be delivered pursuant to
Section 5(a) of this Agreement may include customary assumptions and qualifications, may
be limited to the laws upon which such firm may opine, and shall be substantially to the
effect that: 

        1.               The
Company is duly qualified to transact business as a foreign corporation in           and
is in good standing in the State of Colorado. 

        2.              The
Agreement constitutes the valid and binding obligation of the Company,
          enforceable against the Company in accordance with its terms.  

        3.              To
the knowledge of such counsel, except as set forth in the Agreement or the
          Amended 20-F Registration Statement there is no (a) outstanding warrant or
          option to acquire, and no instrument convertible into or exchangeable for, any
          unissued shares of capital stock or other equity interest in the Company and no
          contract, commitment, agreement, understanding or arrangement of any kind to
          which the Company is a party and that provides for the issuance or sale of any
          capital stock of the Company, any such convertible or exchangeable instrument
or           any such warrant or option, or (b) preemptive right, co-sale right,
registration           right, right of first refusal or similar right with respect to the
issuance and           sale of the Shares and the registration of the Shares.  

        4.              Neither
the sale of the Shares pursuant to the Agreement nor the registration           for
resale of the Shares violates any such rights discussed in opinion paragraph           3.  

        5.              The
execution and delivery of the Agreement and the consummation of the
          transactions contemplated thereby (including, but not limited to, the issuance
          of the Shares, the sale of the Shares and the fulfillment of the terms of the
          Agreement) will not (a) violate (i) any statute, rule or regulation of the
State           of Colorado, or any U.S. federal statute, rule or regulation, normally
          applicable to transactions of the type contemplated by the Agreement or (ii) to
          the knowledge of such counsel, any order of any U.S. federal or state court,
          regulatory body, administrative agency or other U.S. federal or state
          governmental body applicable to the Company, any Subsidiary or any of the
          properties of the Company or any Subsidiary or (b) conflict with, breach or
          constitute a default under any contract, indenture, mortgage, deed of trust or
          other agreement or instrument identified in the Amended 20-F Registration
          Statement as one to which the Company or any Subsidiary is a party, by which
the           Company or any Subsidiary is bound or to which any of the properties of the
          Company or any Subsidiary is subject.  

        6.              To
the knowledge of such counsel, there is no approval, consent, order,
          authorization, designation, declaration or filing by or with any court,
          regulatory body, administrative agency or other governmental body necessary in
          connection with the execution and delivery by the Company of the Agreement and
          the consummation of the transactions contemplated thereby that has not been
          obtained and is not in full force and effect, except any  

A-1 

such approval, consent,
authorization, designation, declaration, or filing required by any securities or Blue Sky
statute of any state in connection with the offer and sale of the Shares, or by any U.S.
federal or securities statute with respect to the Company’s obligations under
Sections 8 and 9 of the Agreement. 

        7.              It
is not necessary to register the Shares under the Securities Act in           connection
with the offer and sale of the Shares to the Investors in the manner
          contemplated by the Agreement.  

        8.              To
our knowledge, there is not pending against the Company before any court or
          administrative agency or overtly threatened in writing any action, proceeding
or           investigation that questions the validity of the Agreement or any of the
          transactions contemplated thereby.  

        9.              The
Company is not, and will not become as a result of the consummation of the
          transactions contemplated by the Agreement and the application of the net
          proceeds of the sale of the Shares thereunder, an “investment company”          as
defined in Section 3(a) of the Investment Company Act of 1940, as amended,           and
the rules and regulations promulgated thereunder.  

        10.              The
conditions for use by the Company of a registration statement on Form S-1,           set
forth in the General Instructions thereto, have been satisfied.  

        11.              The
Amended 20-F Registration Statement, when filed, complied as to form in all
          material respects with the Securities Act and the applicable rules and
          regulations of the Commission thereunder.  

        In
addition to the matters set forth above, such opinion shall also include a confirmation to
the effect that, although such counsel is not passing upon, has not undertaken to verify
independently, and does not assume any responsibility for, the accuracy, completeness or
fairness of any statement contained in the Amended 20-F Registration Statement, nothing
has come to the attention of such counsel that would cause such counsel to believe that
the Amended 20-F Registration Statement, taken as a whole, as of the Closing Date,
contained an untrue statement of a material fact or omitted to state a material fact
necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading (except that such counsel need not express any view as to the
financial statements therein). 

B-2 

EXHIBIT B  

OPINION OF SPECIAL
CANADA COUNSEL TO THE COMPANY 

The opinion of Miller Thomson LLP,
Canada counsel to the Company, to be delivered pursuant to Section 5(b) of this Agreement
may include customary assumptions and qualifications, may be limited to the laws upon
which such firm may opine, and shall be substantially to the effect that: 

	1.  	  	The
Company is a corporation validly existing under the Business Corporations
                    Act (Yukon Territory) and is in good standing with respect to the
filing of                     annual returns.  

	2.  	  	The
Shares to be received by the Investors pursuant to the Agreement have been
                    duly authorized and, upon issuance and delivery against payment
therefor in                     accordance with the terms of the Agreement, will be
validly issued, fully paid                     and nonassessable.  

	3.  	  	The
Agreement has been duly authorized by all necessary corporate action by the
                    Company, and has been executed and delivered by the Company.  

	4.  	  	The
Company has the requisite corporate power under the Business Corporations
                    Act (Yukon Territory) and the Articles of Continuation and the
By-laws of the                     Company to own its properties and to conduct its
business as described in the                     Amended 20-F Registration Statement, and
to execute, deliver and to perform its                     obligations under the
Agreement.  

	5.  	  	The
authorized capital stock of the Company consists of an unlimited number of
                    shares of common stock, without par value.  

	6.  	  	The
execution and delivery of the Agreement and the consummation of the
                    transactions contemplated thereby (including, but not limited to, the
issuance                     of the Shares, the sale of the Shares, and the fulfillment
of the terms of the                     Agreement) will not violate (i) any statute, rule
or regulation of the Yukon                     Territory, or any Canadian federal
statute, rule or regulation, normally                     applicable to transactions of
the type contemplated by the Agreement or (ii) to                     the knowledge of
such counsel, any order of any Canadian court, regulatory body,
                    administrative agency or other Canadian governmental body applicable
to the                     Company, any Subsidiary or any of the properties of the
Company or any                     Subsidiary.  

	7.  	  	The
TSX Venture Exchange has granted conditional listing of the Shares.  

	8.  	  	The
offering, issue, sale and delivery of the Shares by the Company to the
                    Investors in accordance with the Agreement have been effected in such
a manner                     as to be exempt, either by statute, regulation, instrument
or order, from the                     prospectus requirements of Canadian securities
laws and related rules,                     regulations, instruments, policies, notices
and interpretation notes                     (collectively, the “Canadian Securities
Laws”) and the only filing,                     proceeding, approval consent or
authorization required to be made, taken or                     obtained under the
Canadian Securities Laws to permit the offering, sale,                     issuance and
delivery of  

B-1 

	  	
the
Shares to Canadian resident Investors is the filing with the applicable Securities
Commissions in the Provinces or Territories where such Investors reside, within 10 days
of the date of the issue and sale of the Shares, of a report prepared and executed in
accordance with Form 45-103F4 and filed in accordance with Canadian Securities Laws,
together with the requisite filing fees and a duly completed fee checklist.  

B-2 

EXHIBIT C  

KODIAK OIL & GAS
CORP. 

INVESTOR QUESTIONNAIRE 

        This
Questionnaire requests information necessary to prepare a registration statement on Form
S-1 (the “Registration Statement”) for the registration and resale under Rule
415 of the Securities Act of 1933, as amended (the “Securities Act”), of certain
shares of common stock of Kodiak Oil & Gas Corp. (the “Company”), without
par value (the “Common Stock”), to be filed by the Company with the Securities
and Exchange Commission (the “Commission”), in accordance with the terms of the
Stock Purchase Agreement dated as of March 3, 2006 (the “Purchase Agreement”),
between the Company and the undersigned beneficial owner (the “Selling
Securityholder”) of shares of Common Stock purchased pursuant to such agreement (the
“Purchased Shares”) (the “Shares.”). This Questionnaire also requests
certain information required under Canadian law in connection with the sale of the Shares
pursuant to the Agreement. All capitalized terms not otherwise defined herein shall have
the respective meanings ascribed thereto in the Purchase Agreement. 

        In
order to sell or otherwise dispose of any Shares pursuant to the Registration Statement,
you generally will be required to be named as a selling securityholder in the related
prospectus, deliver a prospectus to purchasers of the Shares and be bound by the
provisions of the Purchase Agreement (including certain indemnification provisions, as
described below). If you do not complete this Questionnaire and deliver it to the Company
as provided below you will not be named as a selling securityholder in the prospectus and
therefore will not be permitted to sell any Shares pursuant to the Registration Statement.
Please complete and deliver this Questionnaire to Mr. Lynn Peterson, Chief Executive
Officer and President of the Company, as soon as possible and in any event no later than
Closing Date (as defined in the Purchase Agreement). 

        Certain
legal consequences arise from being named as a selling securityholder in the Registration
Statement and the related prospectus. Accordingly, holders and beneficial owners of Shares
are advised to consult their own securities law counsel regarding the consequences of
being named or not being named as a selling securityholder in the Registration Statement
and the related prospectus. 

        The
Selling Securityholder, by signing and returning this Questionnaire, understands that it
will be bound by the terms and conditions of this Questionnaire and the Purchase
Agreement. 

        Pursuant
to the Purchase Agreement, the undersigned has agreed to indemnify and hold harmless the
Company, each of its directors, each of its officers who has signed the Registration
Statement and each person, if any, who controls the Company within the meaning of the
Securities Act, from and against certain losses arising in connection with statements
concerning the undersigned made in the Registration Statement or the related prospectus in
reliance upon the information provided in this Questionnaire. 

        The
undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate and complete: 

C-1 

QUESTIONNAIRE 

	1.  	  	(a) Full
Legal Name of Selling Securityholder:1

___________________________________

	  	
(b) Except
as set forth below in this Item 1(b), the undersigned does not hold any or all of the
Shares on behalf of another person or entity.  

	  	
State
any exceptions here:  

___________________________________

	2.  	  	Beneficial
Ownership:

	  	
Immediately
after the Closing, there will be no equity securities of the Company of which the
undersigned will be the “beneficial owner”2, except as set forth
below in this Item 2. The disclosure indicates the amount of equity securities which the
undersigned beneficially owns, which it has a right to acquire within 60 days after the
Closing Date, and as to which it has sole voting power, shared voting power, sole
investment power or shared investment power. 

___________________________________

___________________________________

___________________________________

___________________________________ 

	3.  	  	Except
as set forth below in this Item 3, the undersigned wishes that all of the
               _________ Purchased Shares that the undersigned purchased pursuant to the
               Purchase Agreement are to be offered for the account of the undersigned in
the                Registration Statement.  

	  	
State
any exceptions here:  

___________________________________

___________________________________

___________________________________

___________________________________

_________________ 

        1
  If this Questionnaire is being completed by or on behalf of a person other than an
individual, the entity on whose behalf the Questionnaire is being completed should be
steted.  

        2
  Defined in Appendix A to this questionnaire.  

C-2 

	4. 	  	Relationships
with the Company:  

	  	
Except
as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (5% or more) has held any position or office or has
had any other material relationship with the Company (or its predecessors or affiliates)
during the past three years.  

	  	
State
any exceptions here:  

___________________________________

___________________________________

___________________________________

___________________________________

	5. 	  	Plan
of Distribution:  

	  	
Except
as set forth below, the undersigned (including its donees or pledgees) intends to
distribute the Shares pursuant to the Registration Statement only as follows (if at all):
Such Shares may be sold from time to time directly by the undersigned or, alternatively,
through underwriters, broker-dealers or agents. If the Shares are sold through
underwriters, broker-dealers or agents, the Selling Securityholder will be responsible
for underwriting discounts or commissions or agent’s commissions. Such Shares may be
sold in one more or transactions at fixed prices, at prevailing market prices at the time
of sale, at varying prices determined at the time of sale, or at negotiated prices. Such
sales may be effected in transactions (which may involve block transactions) (a) on any
national securities exchange or quotation service on which the Shares may be listed or
quoted at the time of sale, (b) in the over-the-counter market, (c) in transactions
otherwise than on such exchanges or services or in the over-the-counter market, or (d)
through the writing of options. In connection with sales of Shares or otherwise, the
undersigned may enter into hedging transactions with broker-dealers, which may in turn
engage in short sales of the Shares in the course of hedging positions they assume. The
undersigned may also sell Shares short and deliver Shares to close out short positions,
or loan or pledge Shares to broker-dealers that in turn may sell such securities. State
any exceptions here:  

___________________________________

___________________________________

___________________________________

C-3 

	  	
Note:
In no event will such method(s) of distribution take the form of an underwritten offering
of the Shares without the prior agreement of the Company.  

        The
undersigned acknowledges that it understands its obligation to comply with the provisions
of the Securities Exchange Act of 1934, as amended, and the rules thereunder relating to
stock manipulation, particularly Regulation M thereunder (or any successor rules or
regulations), in connection with any offering of the Shares pursuant to the Registration
Statement. The undersigned agrees that neither it nor any person acting on its behalf will
engage in any transaction in violation of such provisions. 

        In
accordance with the undersigned’s obligation under the Purchase Agreement, the
undersigned agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein that may occur subsequent to the date hereof at any time while
the Registration Statement remains effective. 

        By
signing below, the undersigned consents to the disclosure of the information contained
herein in its answers to Items 1 through 6 above and the inclusion of such information in
the Registration Statement and the related prospectus. The undersigned understands that
such information will be relied upon by the Company in connection with the preparation or
amendment of the Registration Statement and the related prospectus. 

C-4 

EXHIBIT D  

ACCREDITED INVESTOR
CERTIFICATE 

CANADIAN PURCHASERS 

	TO: 	
Kodiak Oil & Gas Corp. (the “Company”)  

	AND
TO:  	
KeyBanc Capital Markets, a division of McDonald Investments Inc. (“KBCM”),
Petrie Parkman & Company (“PP”), and
Dominick &
Dominick (“DD” and, together with KBCM and PP, the “Agents”)  

In connection with the purchase by
the undersigned subscriber (the “Subscriber”) of Shares of the Company,
the Subscriber hereby represents, warrants, covenants and certifies to the Company that
the Subscriber is resident in Canada and is an “accredited investor” within the
meaning of National Instrument 45-106 by virtue of satisfying one of the indicated
criteria as set out in Exhibit "1” to this Representation Letter and as so
marked by the Subscriber. 

Dated at _____________, this _____
day of _______________, 2006. 

	  	
____________________________________________

Name of Subscriber

____________________________________________

Signature

____________________________________________

If the Subscriber is a corporation, office or title of signatory
 

D-1 

EXHIBIT “1" 

[Please check the appropriate box.] 

“accredited
investor” means: 

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

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

		 (c)	  	
a subsidiary of any person referred to in paragraph (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;  

		(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 the Securities Act (Ontario) or the Securities Act (Newfoundland
and Labrador);  

		(3) 	  	
an individual registered or formerly registered under the securities legislation
of a jurisdiction of Canada, as a representative of a person referred to in
paragraph (d);  

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

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

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

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

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

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

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

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

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

	  	
(i)
    a person that is or was an
accredited investor at the time of the distribution, 

	  	
(ii)   
a person that acquires or acquired securities in the circumstances referred           to
in sections 2.10 Minimum amount investment, and 2.19 Additional investment
in investment funds of NI 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
          NI 45-106;  

D-2 

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

		(p)	  	
a trust company or trust corporation registered or authorized to carry on business under
the Trust and Loan Companies Act (Canada) or under comparable legislation in a
jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed
account managed by the trust company or trust corporation, as the case may be;  

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

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

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

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

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

		(t)	  	
a person in respect of which all of the owners of interests, direct, indirect or
beneficial, except the voting securities required by law to be owned by directors, are
persons that are accredited investors;  

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

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

	  	
(i)    an
accredited investor, or  

	  	
(ii)   an
exempt purchaser in Alberta or British Columbia after September 14,           2005.  

For the purposes hereof: 

“Canadian financial
institution” means (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. 

“financial assets”
means (a) cash; (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. 

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

“person” includes
(a) an individual; (b) a corporation; (c) a partnership, trust, fund and an
association, syndicate, organization or other organized group of persons, whether
incorporated or not; and (d) an individual or other person in that person’s
capacity as a trustee, executor, administrator or personal or other legal representative. 

“related
liabilities” means (a) liabilities incurred or assumed for the purpose of
financing the acquisition or ownership of financial assets; or (b) liabilities
that are secured by financial assets. 

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

D-3 

Affiliate and Control 

	  	A.  	  	an
issuer is an affiliate of another issuer if (a) one of them is the
               subsidiary of the other; or (b) each of them is controlled by the
same                person.  

	  	B.  	  	a
person (first person) is considered to control another person (second person)
               if (a) the first person, directly or indirectly, beneficially owns or
               exercises control or direction over securities of the second person
carrying                votes which, if exercised, would entitle the first person to
elect a majority of                the directors of the second person, unless that first
person holds the voting                securities only to secure an obligation; (b) the
second person is a                partnership, other than a limited partnership, and the
first person holds more                than 50% of the interests of the partnership; or
(c) the second person is a                limited partnership and the general
partner of the limited partnership is the                first person.  

D-4 

EXHIBIT E  

ACCREDITED INVESTOR
CERTIFICATE 

FOR UNITED STATES
PURCHASERS 

In connection with the purchase by
the undersigned subscriber (the “Subscriber”) of Shares of the Company,
the Subscriber hereby represents, warrants, covenants and certifies to the Company and the
Agents that the Subscriber is purchasing the Shares as principal for its own account, for
investment purposes only and not with a view to resale or distribution and, in particular,
it has no intention to distribute either directly or indirectly any of the Shares (the
“Purchased Securities”); provided, however, that this sentence shall not
restrict the Subscriber from selling or otherwise disposing of any of the Purchased
Securities pursuant to registration thereof pursuant to the U.S. Securities Act of 1933
(the “U.S. Securities Act”) and any applicable state securities laws or
under an exemption from such registration requirements. The Subscriber is an
“accredited investor” as defined in Rule 501 of Regulation D under the U.S.
Securities Act by virtue of satisfying one of the indicated criteria as set out in
Exhibit "1” to this Accredited Investor Certificate and as so marked by the
Subscriber. 

In addition, if Subscriber is a
resident of the State of New York, it represents that it qualifies as an
“accredited investor” under one of the categories set forth in subparagraphs (a)
through (k), or (o), in Exhibit “1” hereto. 

Subscriber acknowledges that
(A) the Shares are and will be “restricted securities” as defined in Rule
144 promulgated under the U.S. Securities Act; (B) the Shares may be sold or
otherwise transferred except to the Company, outside the United States in compliance with
Rule 904 of Regulation S under the U.S. Securities Act and in compliance with applicable
local laws and regulations, pursuant to an effective registration statement under the U.S.
Securities Act and all applicable state securities laws, or pursuant to an available
exemption under the U.S. Securities Act and the Subscriber shall have first delivered to
the Company a written opinion of counsel (which counsel and opinion shall be reasonable
satisfactory to the Company), to the effect that the proposed sale or transfer of the
securities is registered under or exempt from the registration provisions of the U.S.
Securities Act and all applicable state securities laws; and (C) upon the original
issuance of the Shares, and until such time as the same is no longer required under
applicable requirements of the U.S. Securities Act or applicable state securities laws,
the certificates representing the Shares will bear a restrictive securities legend in
substantially the following form: 

	  	
“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE TRANSFERRED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, AND IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS.” 

	  	
“UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE
SECURITY BEFORE [THAT DAY THAT IS 4 MONTHS AFTER CLOSING]" 

	  	
“WITHOUT
PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE
SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD,
TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX
VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT
UNTIL [THAT DAY THAT IS 4 MONTHS AFTER CLOSING].” 

provided, that if any of the
Purchased Securities are being sold under clause (B) above, at a time when the Company is
a “foreign issuer” as defined in Rule 902 under the U.S. Securities Act, the
legend set forth above may be  

E-1 

removed by providing a declaration
to the Company and its transfer agent in the form attached hereto as Exhibit “2” or
such other evidence as the Company or its transfer agent may from time to time prescribe
(which may include an opinion of counsel satisfactory to the Company and its transfer
agent), to the effect that the sale of the securities is being made in compliance with
Rule 904 of Regulation S under the U.S. Securities Act. The Subscriber has had
access to such information regarding the Company as it has deemed necessary in connection
with its decision to invest in the Shares.  

The Subscriber consents to the
Company making a notation on its records or giving instruction to the registrar and
transfer agent of the Company in order to implement the restrictions on transfer set forth
and described herein. The office or other address of the Subscriber at which the
Subscriber received and accepted the offer to purchase the Shares is the address listed as
the “Subscriber’s Address” on the first page of the Subscription Agreement.
The Subscriber understands and agrees that there may be material tax consequences to the
Subscriber of an acquisition, disposition or exercise of any of the Purchased Securities;
the Company gives no opinion and makes no representation with respect to the tax
consequences to the Subscriber under United States, state, local or foreign tax law of the
Subscriber’s acquisition or disposition of such Purchased Securities; in particular,
no determination has been made whether the Company will be a “passive foreign
investment company” within the meaning of Section 1297 of the United States Internal
Revenue Code. 

The Subscriber understands and
acknowledges that the Company is not obligated to remain a “foreign issuer”. 

The Subscriber understands and agrees
that the financial statements of the Company have been prepared in accordance with
Canadian generally accepted accounting principles, which differ in some respects from
United States generally accepted accounting principles, and thus may not be comparable to
financial statements of United States companies. 

Dated at _____________________, this
_____ day of _____________,  2006. 

	  	
____________________________________________

Name of Subscriber

____________________________________________

Signature

____________________________________________

If the Subscriber is a corporation, office or title of signatory
 

E-2 

EXHIBIT “1”

Please check the appropriate box(es),
indicating which box(es) applies to the Subscriber. 

“accredited
investor” means: 

		(a)  	  	A
bank as defined in Section 3(a)(2) of the U.S. Securities Act whether acting in its
individual or                 fiduciary capacity; or 

		(b)	  	
A savings and loan association or other institution as defined in Section 3(a)(5)(A)
of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or  

		(c) 	  	A
broker or dealer registered pursuant to Section 15 of the U.S. Securities Exchange Act
of 1934; or  

		(d)	  	
An insurance company as defined in Section 2(13) of the U.S. Securities Act; or <W099> 

		(e)  	  	An
investment company registered under the U.S. Investment Company Act of 1940; or
<W099> 

		(f)  	  	A
business development company as defined in Section 2(a)(48) of the U.S.
Investment Company Act of 1940; or 

		(g)  	  	A
small business investment company licensed by the U.S. Small Business Administration
under Section 301(c) or (d) of the U.S. Small Business Investment Act of
1958; or  

		(h)	  	
A plan established and maintained by a state, its political subdivisions or any agency or
instrumentality of a state or its political subdivisions, for the benefit of its
employees, with total assets in excess of U.S.$5,000,000; or  

		(i)	  	
An employee benefit plan within the meaning of the U.S. Employee Retirement Income
Security Act of 1974, if the investment decision is made by a plan fiduciary,
as defined in Section 3(21) of such Act, which is either a bank, savings and loan
association, insurance company or registered investment adviser, or an employee benefit
plan with total assets in excess of U.S.$5,000,000 or, if a self-directed plan, the
investment decisions are made solely by persons who are accredited investors, as defined
herein; or  

		(j)  	  	A
private business development company as defined in Section 202(a)(22) or the U.S.
Investment Advisers Act of 1940; or  

		(k)	  	
A corporation, a partnership, an organization described in Section 501(c)(3) of the U.S.
Internal Revenue Code, or a Massachusetts or similar business trust, not formed for the
specific purpose of acquiring the Units, with total assets in excess of U.S.$5,000,000;
or  

		(l)  	  	A
director or executive officer of the Company; or 

		(m)	  	
A natural person whose individual net worth (defined as the excess of total assets over
total liabilities), or joint net worth with that person’s spouse, at the time of his
or her purchase exceeds U.S.$1,000,000; or  

		(n)	  	
A natural person who had an individual income in excess of U.S.$200,000 in each of the
two most recent years or joint income with that person’s spouse in excess of
U.S.$300,000 in each of those years and has a reasonable expectation of reaching the same
income level in the current year; or  

		(o)	  	
A trust, with total assets in excess of U.S.$5,000,000, not formed for the specific
purpose of acquiring the Shares, whose purchase is directed by a sophisticated person as
described under the U.S. Securities Act Rule 506(b)(2)(ii); or  

		(p)	  	
An entity in which each of the equity owners satisfies the requirements of at least one
of the above categories.  

E-3 

Dated at _____________________, this
_____ day of _____________, 2006. 

	  	
____________________________________________

Name of Subscriber

____________________________________________

Signature

____________________________________________

If the Subscriber is a corporation, office or title of signatory
 

E-4 

EXHIBIT F  

 

FORM 4C 

CORPORATE PLACEE REGISTRATION FORM 

        Where subscribers
to a Private Placement are not individuals, the following information about the placee
must be provided. This Form will remain on file with the Exchange. The corporation, trust,
portfolio manager or other entity (the “Placee”) need only file it on one
time basis, and it will be referenced for all subsequent Private Placements in which it
participates. If any of the information provided in this Form changes, the Placee must
notify the Exchange prior to participating in further placements with Exchange listed
companies. If as a result of the Private Placement, the Placee becomes an Insider of the
Issuer, Insiders of the Placee are reminded that they must file a Personal Information
Form (2A) or, if applicable, Declarations, with the Exchange. 

	1.  	  	Placee
Information:  

	  	
Name:    ____________________________________________________________________________

	  	
Complete Address:    __________________________________________________________________

__________________________________________________________________________________

	  	
Jurisdiction of Incorporation or Creation:   __________________________________________________

	2.	(a)  	  	
Is the Placee purchasing securities as a portfolio manager (Yes/No)?  _____________________

	  	(b) 	  	Is
the Placee carrying on business as a portfolio manager outside of Canada
          (Yes/No)? _______  

	3. 	  	If
the answer to 2(b) above was “Yes”, the undersigned certifies that:  

	  	
It
 is purchasing securities of an Issuer on behalf of managed accounts for which it is
making the investment decision to purchase the securities and has full discretion to
purchase or sell securities for such accounts without requiring the client’s express
consent to a transaction;  

	  	
it
 carries on the business of managing the investment portfolios of clients through
discretionary authority granted by those clients (a “portfolio manager”business)
in ____________________ [jurisdiction], and it is permitted by law to carry on a
portfolio manager business in that jurisdiction;  

	  	
it
was not created solely or primarily for the purpose of purchasing securities of the
Issuer;  

	  	
the
total asset value of the investment portfolios it manages on behalf of clients is not
less than $20,000,000; and  

	  	
it
 has no reasonable grounds to believe, that any of the directors, senior officers
and other insiders of the Issuer, and the persons that carry on investor relations
activities for the Issuer has a beneficial interest in any of the managed accounts for
which it is purchasing  

F-1 

	4. 	  	If
the answer to 2(a). above was “No”, please provide the names and
          addresses of control persons of the Placee:  

	Name 	City 	Province or State 	Country 
	

	 
	

	 
	

	 

The undersigned acknowledges that it
is bound by the provisions of applicable Securities Law, including provisions concerning
the filing of insider reports and reports of acquisitions (See for example, sections 87
and 111 of the Securities Act (British Columbia) and sections 176 and 182 of the
Securities Act (Alberta). 

Acknowledgement —
Personal Information 

“Personal
Information” means any information about an identifiable individual, and includes
information contained in sections 1, 2 and 4, as applicable, of this Form. 

The undersigned hereby acknowledges
and agrees that it has obtained the express written consent of each individual to: 

	(a)  	  	the
disclosure of Personal Information by the undersigned to the Exchange (as
                    defined in Appendix 6B) pursuant to this Form; and  

	(b)  	  	the
collection, use and disclosure of Personal Information by the Exchange for
                    the purposes described in Appendix 6B or as otherwise identified by
the                     Exchange, from time to time.  

Dated at ____________________________ on _________________________. 

	  	
____________________________________________

(Name of Purchaser - please print)

____________________________________________

(Authorized Signature) 

____________________________________________

(Official Capacity - please print)

____________________________________________

(please print name of individual whose signature appears above)
 

THIS IS NOT A PUBLIC
DOCUMENT 

F-2exv10w1

 

EXHIBIT 10.1

AMENDED AND RESTATED CREDIT FACILITY AGREEMENT

AMENDMENT NUMBER 6

          This AMENDED AND RESTATED CREDIT FACILITY AGREEMENT AMENDMENT NUMBER 6 (“Amendment”) is made
as of the 26th day of April, 2006, by and among PHOENIX FOOTWEAR GROUP, INC., a
corporation formed under the laws of the State of Delaware (“Borrower”) and MANUFACTURERS AND
TRADERS TRUST COMPANY (“Agent”), a New York banking corporation, with offices at 255 East Avenue,
Rochester, New York 14604 as administrative agent for the Lenders, and each of the LENDERS (as
defined in the Agreement described below).

          This Amendment amends the Amended and Restated Credit Facility Agreement (“Credit Agreement”)
dated as of August 3, 2005 made between Borrower, the Agent, and the Lenders described therein, as
previously amended by Amendment Number 1, 2, 3, 4 and 5.

          1.      The definition of “Bridge Loan Maturity Date” contained in Section 1.1 of the Credit
Agreement is hereby amended to read in its entirety as follows:

“Bridge Loans Maturity Date” means June 1, 2006.

          2.      In connection with this Amendment the Borrower agrees to pay to the Bank an amendment fee
of $10,000 as well as the Bank’s legal fees in connection herewith.

          3.      All other terms of the Credit Agreement shall remain in full force and effect.

          4.      Borrower represents and warrants that no Event of Default, or event that with the giving of
notice or the passage of time or both would constitute an Event of Default, under the Credit
Agreement has occurred and is continuing.

          IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

[Signature Pages Follow]

 

 

	 	 	 	 	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY,

as Administrative Agent

 	 
	 	By:  	/s/ John C. Morsch
 	 
	 	 	John C. Morsch 	 
	 	 	Administrative Vice President 	 
	 
	 	PHOENIX FOOTWEAR GROUP, INC.

 	 
	 	By:  	/s/ Kenneth Wolf
 	 
	 	Title: 	   CFO

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