Document:

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                                  EXHIBIT 10.2

                      PREFERRED SHARE REPURCHASE AGREEMENT

THIS AGREEMENT dated as of the 31st day of May, 2004.

BETWEEN:

         MED-EMERG INTERNATIONAL INC., being a corporation incorporated under
         the laws of the Province of Ontario

         (hereinafter referred to as "MEII")

                                                              OF THE FIRST PART;

                                      -and-

         1245841 ONTARIO INC., being a corporation incorporated under the laws
         of the Province of Ontario,

         (hereinafter referred to as the "Shareholder")

                                                             OF THE SECOND PART;

         REFERENCE is made to a Securities Purchase Agreement (the "SPA") made
as of the 31st day of May, 2004, amongst MEII and the Buyers (as such
capitalized term is defined in the SPA);

         AND WHEREAS MEII presently has 500,000 preferred shares (the "Preferred
Shares") issued and outstanding;

         AND WHEREAS the holders of the Preferred Shares have the right to:

         (a)      cumulative quarterly dividends of US $0.27 per Preferred
                  Share; and

         (b)      in the event of the liquidation, dissolution or winding up of
                  MEII, before any distribution to any part of the assets of
                  MEII amongst the holders of the common shares the sum of US
                  $4,500,000.00.

         AND WHEREAS the Shareholder owns all of the issued and outstanding
Preferred Shares;

         AND WHEREAS the Articles of Incorporation, and amendments thereto, of
MEII do not contain a redemption privilege with respect to the Preferred Shares
obligating the Shareholder to sell the Preferred Shares to MEII or to convert
the Preferred Shares into common shares of MEII;

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         AND WHEREAS MEII is presently indebted to the Shareholder in the amount
of Five Hundred Ninety Seven Thousand Seven Hundred Fifty Dollars US
($597,750.00) in unpaid dividends (the "Dividend Debt");

         AND WHEREAS as a condition to the completion of the SPA, the Buyers
required that the 500,000 Preferred Shares be purchased by MEII for
cancellation;

         AND WHEREAS pursuant to a resolution of the directors of MEII dated May
31, 2004, the directors approved and authorized the issuance of 4,348,000 common
shares of MEII to the Shareholder as a stock dividend (the "Stock Dividend") in
satisfaction of the Dividend Debt;

         AND WHEREAS pursuant to a resolution of the directors of MEII dated May
31, 2004, the directors approved the terms of a certain Preferred Share
Repurchase Agreement, between MEII and the Shareholder (the "Original
Agreement"), whereby MEII agreed to purchase the Preferred Shares in
consideration for the issuance of the 5,000,000 common shares of MEII and the
New Warrants (as such capitalized term is defined in the Original Agreement);

         AND WHEREAS subsequent to the passing of said directors resolutions
(the "Resolutions"), the Shareholder advised that its professionals required
that all common shares to be issued to the Shareholder be issued pursuant to the
preferred share repurchase agreement and not through the issuance of a stock
dividend;

         AND WHEREAS the Shareholder has agreed to forgive the Dividend Debt in
its entirety;

         AND WHEREAS MEII has agreed to issue the Common Shares (as hereinafter
defined) and the New Warrants in consideration of:

         (a)      the sale by the Shareholder of the Preferred Shares to MEII
                  for cancellation by MEII; and

         (b)      the Shareholder forgiving the Dividend Debt in its entirety;

         AND WHEREAS the total number of common shares to be issued by MEII to
the Shareholder pursuant to the New PSRA Agreement is the same number of common
shares that MEII would have issued to the Shareholder pursuant to the Stock
Dividend and the Original Agreement;

         NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the
respective covenants herein contained, the sum of Ten Dollars ($10.00) now paid
by each party to the other and for other good and valuable consideration (the
receipt and sufficiency of which is hereby acknowledged), the parties hereto
agree as follows:

         1. MEII hereby accepts the forgiveness by the Shareholder of the
Dividend Debt in its entirety.

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         2. Subject to the terms and conditions hereof, the Shareholder hereby
sells, assigns and transfers to MEII and MEII hereby purchases from the
Shareholder, for cancellation, all right, title and interest in the Preferred
Shares.

         3. The purchase price for the Preferred Shares shall be paid by MEII
issuing 9,348,000 common shares in the capital of MEII (the "Common Shares"). In
conjunction with the issuance of the Shares, MEII shall also issue to the
Shareholder an aggregate of 3,083,949 warrants entitling the Shareholder to
purchase additional common shares as follows:

         (a)      1,931,250 common shares on the basis of one (1) common share
                  for each two (2) Option Shares (as such capitalized term is
                  defined in the New Warrants) issued; and

         (b)      1,152,699 common shares on the basis of three (3) common
                  shares for each one (1) Option Shares issued.

and upon the terms contained in the certificates representing such warrants (the
"New Warrants") and attached hereto as Schedules A & B.

         3. The Shareholder represents and warrants that (which representations
and warranties shall survive the closing of the transaction contemplated herein
and shall continue in full force and effect):

         (a)      it owns the Preferred Shares with good and marketable title
                  thereto, free of any claim, lien, security interest, or
                  encumbrance of any nature or kind and free of any rights or
                  privileges capable of becoming claims, liens, security
                  interests or encumbrances; it is entitled to sell, transfer
                  and assign the Preferred Shares to MEII, free of any such
                  claims, liens, encumbrances, rights and privileges; and no
                  person, firm or corporation has any agreement or option or any
                  right capable of becoming an agreement for the purchase of any
                  of the Preferred Shares.

         (b)      it is not a "non-resident" of Canada within the meaning of the
                  Income Tax Act (Canada).

         (c)      the Shareholder is a corporation duly organized, validly
                  existing, and in good standing under the laws of the Province
                  of Ontario.

         (d)      this Agreement constitutes a valid and binding obligation of
                  the Shareholder enforceable against the Shareholder, in
                  accordance with its terms subject, however, to limitations on
                  enforcement imposed by bankruptcy, insolvency, reorganization
                  or other laws affecting the enforcement of the rights of
                  creditors and others and to the extent that equitable remedies
                  such as specific performance and injunctions are only
                  available in the discretion of the court from which they are
                  sought.
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         (e)      the Shareholder has the requisite power, authority and
                  capacity to enter into, and to carry out its obligations
                  under, this Agreement. The execution and delivery of this
                  Agreement and the completion of the transactions contemplated
                  by this Agreement have been duly authorized by all necessary
                  corporate action on the part of the Shareholder, and its
                  directors and/or shareholders.

         (f)      The Shareholder is a resident of the Province of Ontario and
                  has no other residency.

         (g)      The Shareholder has not received any document purporting to
                  describe the business and affairs of MEII that has been
                  prepared primarily for delivery to and review by the
                  Shareholder so as to assist the Shareholder to make an
                  investment decision in respect of the Common Shares being
                  issued.

         (h)      The Shareholder qualifies as an "accredited investor", as such
                  term is defined in Ontario Securities Commission Rule 45-501
                  Exempt Distributions (the "Rule"), and as such the Buyer is
                  one of the following:

                  (i)      an individual whose net income before taxes exceeded
                           $200,000.00 in each of the two most recent years or
                           whose net income before taxes combined with that of a
                           spouse exceeded $300,000.00 in each of those years
                           and who, in either case, has a reasonable expectation
                           of exceeding the same threshold net income level in
                           the current year; or

                  (ii)     a person or company in respect of which all of the
                           owners of interests, direct or indirect, legal or
                           beneficially, are persons or companies that qualify
                           under any one or more of the above categories; or

                  (iii)    a person, company or other entity that qualifies
                           under any one of the "accredited investor" categories
                           listed in the Rule, and the Buyer agrees to provide
                           specifics thereof.

         4. The Shareholder acknowledges that:

         (a)      the Common Shares are subject to transfer and resale
                  restrictions pursuant to the Securities Act (Ontario) and the
                  regulation, rules, orders, instruments and published policy
                  statements applicable thereunder, including Multilateral
                  Instrument 45-102 Resale of Securities;

         (b)      the Shareholder's purchase of the Common Shares has not been
                  made through or as a result of and the distribution of the
                  Common Shares is not being accompanied by an advertisement or
                  general solicitation in printed or public media, or general or
                  regular print circulation, radio or television or
                  telecommunications, including electronic display of any other
                  form of advertisement; and

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         (c)      the Shareholder is generally responsible for obtaining such
                  legal advice as the Shareholder considers appropriate in
                  connection with the execution, delivery and performance of
                  this Agreement and any subsequent transfer or resale of the
                  Common Shares.

         (d)      the Shareholder understands that until (a) the Common Shares
                  may be sold by the Investor under Rule 144(k) or (b) such time
                  as the resale of the Common Shares have been registered under
                  the Securities Act of 1933, the certificates representing the
                  Common Shares will bear a restrictive legend in substantially
                  the following form:

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
                  THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE
                  SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE
                  ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
                  SECURITIES UNDER APPLICABLE SECURITIES LAWS, OR UNLESS
                  OFFERED, SOLD OR TRANSFERRED PURSUANT TO AN OPINION FROM
                  COUNSEL THAT SUCH OFFER, SALE OR TRANSFER FALLS WITHIN AN
                  AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENT OF THOSE
                  LAWS.

                  THE BUYER FURTHER UNDERSTANDS THAT THE CERTIFICATES
                  REPRESENTING THE COMMON SHARES WILL BEAR A LEGEND, OR AN
                  OWNERSHIP STATEMENT ISSUED UNDER A DIRECT REGISTRATION SYSTEM
                  OR OTHER ELECTRONIC BOOK-ENTRY SYSTEM ACCEPTABLE TO THE
                  ONTARIO SECURITIES COMMISSION WILL BEAR A LEGEND RESTRICTION
                  NOTATION, STATING AS FOLLOWS:

                  UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF
                  THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT
                  IS FOUR MONTHS AND ONE DAY AFTER THE EFFECTIVE DATE OF THIS
                  AGREEMENT.

         5. MEII represents and warrants that (which representations and
warranties shall survive the closing of the transaction contemplated herein and
shall continue in full force and effect):

         (a)      MEII is a corporation duly organized, validly existing, and in
                  good standing under the laws of the Province of Ontario

         (b)      this Agreement constitutes a valid and binding obligation of
                  MEII enforceable against MEII, in accordance with its terms
                  subject, however, to limitations on enforcement imposed by
                  bankruptcy, insolvency, reorganization or other laws affecting
                  the enforcement of the rights of creditors and others and to
                  the extent that equitable remedies such as specific
                  performance and injunctions are only available in the
                  discretion of the court from which they are sought.
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         (c)      MEII has the requisite power, authority and capacity to enter
                  into, and to carry out its obligations under, this Agreement.
                  The execution and delivery of this Agreement and the
                  completion of the transactions contemplated by this Agreement
                  have been duly authorized by all necessary corporate action on
                  the part of MEII, and its directors and/or shareholders.

         (d)      there are reasonable grounds for believing that MEII is, and
                  after issuing the Common Shares will be, able to pay its
                  liabilities as they become due, and after issuing the Common
                  Shares, the realizable value of MEII's assets will be greater
                  than the aggregate of its liabilities and the amount that
                  would be required to pay holders of securities of MEII who
                  have a right to be paid, upon redemption or in a liquidation,
                  rateably with or prior to the holders of the Preferred Shares.

         (e)      none of the execution and delivery of this Agreement, the
                  fulfilment of the terms of this Agreement or the issue by MEII
                  of the Common Shares in accordance herewith result, or will
                  result in, a breach (whether after notice or lapse of time or
                  both) of any of the terms, conditions or provisions of: (i)
                  the constating documents of MEII; or (ii) resolutions of the
                  directors or the shareholders of MEII; or (iii) any agreement
                  or instrument to which MEII is a party or its assets are
                  bound; or (iv), contravene any laws, rules or regulations
                  applicable to MEII (including without limitation any United
                  States federal or state securities laws or Ontario securities
                  laws).

         (f)      upon issuance, the Common Shares will be outstanding as fully
                  paid, non-assessable shares in the capital of MEII.

         6. The Shareholder hereby covenants that, coincidentally with the
execution of this Agreement, it will cause all necessary steps and proceedings
to be taken so that the Preferred Shares may be properly transferred to MEII and
in that regard to deliver to MEII certificates representing all of the Preferred
Shares, such certificates being duly endorsed for cancellation to MEII in
exchange for the issuance of the Common Shares.

         7. This agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, administrators, successors
and assigns.

         8. The parties hereto covenant and agree to sign such other papers,
cause such meetings to be held, resolutions passed and bylaws enacted, exercise,
their vote and influence, do and perform and cause to be done and performed such
further and other acts and things as may be necessary or desirable in order to
give full effect to this Agreement and every part hereof.

         9. This Agreement shall be governed by the laws of Canada to the extent
they apply and by the laws of the Province of Ontario.

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         10. This Agreement may be executed in several counterparts, each of
which so executed shall be deemed to be an original and such counterparts
together shall constitute one and the same agreement.

                  IN WITNESS WHEREOF the parties hereto have duly executed as of
this Agreement this 31st day of May, 2004.

SIGNED, SEALED AND             )         1245841 ONTARIO INC.
DELIVERED                      )
in the presence of             )
                               )   Per: _____________________________
                               )   MED-EMERG INTERNATIONAL INC.
                               )
                               )
                               )   Per: _____________________________

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SCHEDULE "A"

NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE ON THE EXERCISE OF THIS WARRANT
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS.

UNLESS PERMITTED BY APPLICABLE SECURITIES LEGISLATION, THE HOLDER SHALL NOT
TRADE EITHER THIS WARRANT OR THE SECURITIES ISSUABLE ON THE EXERCISE OF THIS
WARRANT UNTIL OCTOBER 2, 2004.

                          COMMON SHARE PURCHASE WARRANT

                          To Subscribe for and Purchase
                                  Common Shares

                          MED-EMERG INTERNATIONAL INC.

Series A, No. 1                     Warrant to Purchase 1,931,250 Common Shares

REFERENCE is made to 1,437,500 common share purchase warrants currently
outstanding for the purchase common shares of Med-Emerg International Inc. (the
"CORPORATION") exercisable at $0.50 (U.S.) per common share.

AND REFERENCE is made to 2,325,000 options currently outstanding for the
purchase of common shares of the Corporation, exercisable at $0.50 (U.S.) per
common share.

(The aggregate of the 1,437,500 common share purchase warrants and the 2,325,000
options shall collectively hereinafter be referred to as the "$0.50 OPTION
SHARES")

AND REFERENCE is made to 100,000 options currently outstanding for the purchase
of common shares of the Corporation, exercisable at $1.00 (U.S.) per common
share (hereinafter referred to as the "$1.00 OPTION SHARES").

THIS IS TO CERTIFY that, for the sum of $1.00 now paid by 1245841 Ontario Inc.
(the "HOLDER") and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Holder is entitled, subject to
the terms and conditions hereinafter set forth, to subscribe for and purchase
from the Corporation:

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         a)       one (1) common share of the Corporation at $0.50 U.S. per
                  common share for each two (2) $0.50 Option Shares of the
                  Corporation issued;

         b)       one (1) common share of the Corporation at $1.00 U.S. per
                  common share for each two (2) $1.00 Option Shares of the
                  Corporation issued;

by surrendering to the Corporation at its principal office in the City of
Mississauga, Province of Ontario, this Warrant, together with a subscription
form, duly completed and executed, and a certified cheque or bank draft in
lawful money of the United States payable to or to the order of the Corporation
for an amount equal to the Exercise Price (as hereinafter defined), on and
subject to the terms and conditions set forth below.

1.       Definitions In this Warrant, including the preamble, unless there is
         something in the subject matter or context inconsistent herewith, the
         following terms shall have the following meanings, respectively:

         "BUSINESS DAY" means any day except Saturday, Sunday or any day on
         which banks are generally not open for business in the City of Toronto;

         "COMMON SHARES" means the common shares of the Corporation as the same
         are constituted on the date hereof, together with any other class or
         classes of shares in the capital of the Corporation, whether now
         existing or hereafter created, entitling the Holder to share in the
         final distribution of the property and assets of the Corporation upon
         liquidation, dissolution or winding-up after any fixed payments to the
         holders of any other class or classes of shares, and includes any
         shares or securities into which such shares may be converted or changed
         or which result from a consolidation, subdivision, reclassification or
         re-designation of Common Shares or other such shares or securities
         which are received as a stock dividend or distribution payable in
         Common Shares or other such shares or securities of the Corporation or
         Common Shares or other such shares or securities received on the
         exercise of any option, warrant or other similar right and any Common
         Shares or other such shares or securities which may be received by the
         parties hereto or bound hereby as a result of an amalgamation, merger,
         arrangement or other reorganization of or including the Corporation,
         and where the context permits, includes any Common Shares issuable
         pursuant to any instrument of the Corporation that is convertible into
         Common Shares or evidences the right to acquire Common Shares;

         "CAPITAL REORGANIZATION" has the meaning ascribed thereto in
         Section 9.1;

         "CORPORATION" means Med-Emerg International Inc., a corporation
         incorporated under the laws of the Province of Ontario;

         "EXERCISE PRICE" means the sum of $0.50 US per common share for each of
         the $0.50 Option Shares and $1.00 US for each for the $1.00 Option
         Shares, subject to adjustment as provided herein;

<PAGE>

         "EXPIRY DATE" means the date that is the latest date that any of the
         $0.50 Option Shares or the $1.00 Option Shares have expired without
         being exercised by the holder thereof;

         "FULLY DILUTED" means the number of Common Shares outstanding at any
         time, including any stock dividends which have been declared but not
         issued and assuming all securities which are convertible directly or
         indirectly into such Common Shares are converted into Common Shares and
         all options, warrants or rights to acquire directly or indirectly such
         Common Shares shall be treated as if exercised;

         "HOLDER" means 1245841 Ontario Inc.;

         "OPTION SHARES" means the $0.50 Option Shares or the $1.00 Options
         Shares, as the case may be;

         "SECURITIES PURCHASE AGREEMENT" means the securities purchase agreement
         made as of even date hereof between the Corporation and the Buyers (as
         such capitalized term is defined in the Securities Purchase Agreement)
         and for the purpose of referring herein to the purchase of common
         shares of the Corporation pursuant to the "Securities Purchase
         Agreement" the term "Securities Purchase Agreement" shall include any
         other agreement pursuant to which any of the aforementioned parties
         have, directly or indirectly, acquired securities of the Corporation on
         the date hereof;

         "SHARE REORGANIZATION" has the meaning ascribed thereto in Section 9.2;

         "SUBSCRIPTION LIMIT" means the aggregate of One Million Nine Hundred
         Thirty One Thousand Two Hundred and Fifty (1,931,250) common shares of
         the Corporation on the basis of one (1) common share for each two (2)
         common shares of the Corporation issued pursuant to the exercise of the
         Option Shares. If within three hundred and sixty five days (365) days
         from the date upon which notice of such exercise was, or was deemed to
         be, received by the Holder, the Holder has failed to exercise the
         Warrant with respect to that number of Common Shares he is entitled to
         purchase on the issuance of Option Shares in accordance with the terms
         of this Warrant, then the number of Underlying Shares issuable upon
         exercise of this Warrant as a result of the issuance of said Option
         Shares shall be reduced by such amount;

         "UNDERLYING SHARES" means the Common Shares of the Corporation issuable
         upon the exercise of the Warrant; and

         "WARRANT" means this warrant and any deed or instrument supplemental or
         ancillary hereto and any schedules hereto or thereto and not to any
         particular article, section, subsection, clause, subclause or other
         portion hereof.

2.       Conditions This Warrant entitles the Holder, upon exercise of this
         Warrant, to subscribe for and purchase Common Shares for the Exercise
         Price, subject to adjustment as hereinafter provided. Notwithstanding
         anything to the contrary contained herein, the aggregate number of
         Common Shares subscribed for and purchased by the Holder pursuant to
         this Warrant shall not exceed the Subscription Limit.
<PAGE>

3.       Expiration of Warrant Rights under this Warrant in respect of which the
         right of subscription and purchase herein provided for have not been
         exercised shall wholly cease and such Warrant shall be wholly void and
         of no valid or binding effect as of 5 p.m. (Toronto time) on the Expiry
         Date and of no further force and effect and the Holder shall tender to
         the Corporation this Warrant (if in its possession) for cancellation.

4.       Notice by Corporation to Holder Upon the issuance by the Corporation of
         share certificates representing the exercise of any of the Option
         Shares, the Corporation shall forthwith, by notice in writing advise
         the Holder of:

         (a)      the number of Common Shares issued by the Corporation upon the
                  exercise of the $0.50 Option Shares or the $1.00 Option
                  Shares; and

         (b)      the number of Common Shares that the Holder is entitled to
                  purchase and the purchase price for such Common Shares based
                  on (a) above.

         The Holder shall have three hundred and sixty five days (365) days from
         the date upon which such notice was, or was deemed to be, received by
         the Holder to exercise the Warrant with respect to that number of
         Common Shares and otherwise in accordance with the terms of this
         Warrant.

5.       Exercise of Warrant The rights represented by this Warrant may be
         exercised by the Holder by the surrender of this Warrant, with the
         attached Subscription Form duly executed, at the principal office of
         the Corporation at 6711 Mississauga Road, Suite 404, Mississauga,
         Ontario L5N 2W3 (or such other office or agency of the Corporation as
         it may designate by notice in writing to the Holder hereof) at the
         address of such holder appearing in the records of the Corporation and
         upon payment to it for the account of the Corporation, by certified
         cheque or bank draft, of the Exercise Price for the number of Common
         Shares in respect of which this Warrant is being exercised. The
         Corporation agrees that the shares subscribed for and purchased by
         exercise of this Warrant shall be and be deemed to be issued to the
         Holder as the registered owner of such shares as of the close of
         business on the date on which this Warrant shall have been surrendered
         and payment made for such shares as aforesaid. Certificates for the
         shares so purchased shall be delivered to the Holder within three (3)
         Business Days, if the Holder address as registered in the books of the
         Corporation is in North America, or four (4) Business Days if the
         Holder address as registered in the books of the Corporation is outside
         of North America, after the rights represented by this Warrant shall
         have been so exercised.

6.       Not a Shareholder Nothing in this certificate or in the holding of a
         Warrant evidenced hereby shall be construed as conferring upon the
         Holder any right or interest whatsoever as a shareholder of the
         Corporation.

<PAGE>

7.       No Fractional Shares Notwithstanding any provisions to the contrary
         herein, the Corporation shall not be required to issue any fractional
         shares in the capital of the Corporation (unless such fractional shares
         arise from a consolidation of shares) in connection with any exercise
         of the right to convert this Warrant into Common Shares, and in the
         event that the calculation of the number of Common Shares issuable upon
         such exercise results in a number which includes a fraction of whole
         shares, then the Corporation shall be required to issue the largest
         number of whole shares into which the Warrant is exercisable, and the
         remainder of such amount shall be paid in cash at the time of the
         issuance of the Common Shares in connection with the exercise of this
         Warrant in an amount determined by the Corporation's board of
         directors.

8.       Representations and Warranties of the Corporation The Corporation
         incorporates herein by reference the representations and warranties of
         the Corporation contained in the Securities Purchase Agreement and
         agrees and acknowledges that the Holder is relying thereupon.

9.       Covenants of the Corporation The Corporation hereby agrees as follows:

         9.1      All Common Shares which may be issued upon the exercise of the
                  rights represented by this Warrant will, upon issuance and
                  assuming that the Exercise Price therefore has been received
                  by the Corporation for each Common Share so subscribed, be
                  validly issued as fully paid and non-assessable and shall be
                  free from any and all taxes, liens and charges with respect to
                  the issue thereof.

         9.2      As long as this Warrant or any part evidenced hereby remains
                  outstanding, the Corporation shall reserve and there shall
                  remain unissued out of its capital a sufficient number of its
                  Common Shares to satisfy the right of purchase herein provided
                  for should the Holder determine to exercise its rights in
                  respect of the Common Shares for the time being called for and
                  represented by this Warrant.

10.      Adjustment of Subscription Rights

         10.1     Capital Reorganization. If at any time while this Warrant
                  remains outstanding there shall be any reclassification of any
                  class of Common Shares at any time outstanding or a change of
                  any class of Common Shares into other shares or into other
                  securities, or in case of the consolidation, amalgamation or
                  merger of the Corporation with or into any other corporation
                  (other than a consolidation, amalgamation or merger which does
                  not result in a reclassification of any class of the
                  outstanding Common Shares or a change of any class of the
                  Common Shares into other shares), or in case of any transfer
                  of the undertaking or assets of the Corporation as an entirety
                  or substantially as an entirety to another corporation, at any
                  time while this Warrant remains outstanding (collectively, a
                  "Capital Reorganization"), any holder who exercises its right
                  to purchase Common Shares pursuant to this Warrant after the
                  effective date of such Capital Reorganization shall be
                  entitled to receive, and shall accept, in lieu of the number
                  of Common Shares to which it was theretofore entitled upon
                  such exercise, the kind and amount of shares and other

<PAGE>

                  securities or property which the Holder would have been
                  entitled to receive as a result of such reclassification,
                  change, consolidation, amalgamation, merger or transfer if, on
                  the effective date thereof, the Holder had been the registered
                  holder of the number of Common Shares to which the Holder was
                  theretofore entitled upon exercise. If necessary, appropriate
                  adjustments shall be made in the application of the provisions
                  set forth in this Section 10 with respect to the rights and
                  interests thereafter of the Holder to the end that the
                  provisions set forth in this Section 9 shall thereafter
                  correspondingly be made applicable as nearly as may reasonably
                  be possible in relation to any shares or other securities or
                  property thereafter deliverable upon the exercise of this
                  Warrant. The subdivision or consolidation of any class of the
                  Common Shares at any time outstanding into a greater or lesser
                  number of Common Shares shall be deemed not to be a
                  reclassification of the capital of the Corporation for the
                  purposes of this Section 10.1.

         10.2     Share Reorganization. If at any time while this Warrant
                  remains outstanding, the Corporation shall (i) subdivide any
                  class of outstanding Common Shares into a greater number of
                  Common Shares, (ii) consolidate any class of outstanding
                  Common Shares into a lesser number of Common Shares, (iii)
                  issue Common Shares or securities exchangeable for or
                  convertible into Common Shares to the holders of all or
                  substantially all of any class of outstanding Common Shares by
                  way of stock dividend (other than as a dividend paid in the
                  ordinary course on any class of Common Shares) or (iv) make a
                  distribution on any class of outstanding Common Shares payable
                  in Common Shares or securities exchangeable for or convertible
                  into Common Shares (other than as a dividend paid in the
                  ordinary course) (any of such events in these clauses (i),
                  (ii), (iii) and (iv) being called a "SHARE REORGANIZATION"),
                  the Exercise Price shall be adjusted effective immediately on
                  the effective date of such Share Reorganization or the record
                  date at which the holders of Common Shares are determined for
                  the purposes of the Share Reorganization by multiplying in
                  each case, the Exercise Price in effect immediately prior to
                  such record date by a fraction, the numerator of which shall
                  be the number of outstanding Common Shares on such record date
                  calculated on a Fully Diluted basis, but before giving effect
                  to such Share Reorganization, and the denominator of which
                  shall be the number of outstanding Common Shares after giving
                  effect to such Share Reorganization calculated on a Fully
                  Diluted basis (including, in the case where securities
                  exchangeable for or convertible into Common Shares are
                  distributed, the number of Common Shares that would have been
                  outstanding had such securities been exchanged for or
                  converted into Common Shares on such record date). Such
                  adjustment shall be made successively whenever any such
                  effective date or record date shall occur and any such issue
                  of Common Shares by way of stock dividend or other
                  distribution shall be deemed to have been made on the record
                  date for the stock dividend or other distribution for the
                  purpose of calculating the number of outstanding Common
                  Shares.
<PAGE>

                  If at any time while this Warrant remains outstanding, a Share
                  Reorganization shall occur which results in an adjustment in
                  the Exercise Price pursuant to the provisions of this Section
                  10.2, the number of Common Shares which may be acquired
                  pursuant to this Warrant shall be adjusted contemporaneously
                  with the adjustment of the Exercise Price by multiplying the
                  number of Common Shares theretofore purchasable on the
                  exercise thereof by a fraction the numerator of which shall be
                  the Exercise Price in effect immediately prior to such
                  adjustment and the denominator of which shall be the Exercise
                  Price resulting from such adjustment.

         10.3     Rules Regarding Calculation of Adjustment of Exercise Price
                  and Number of Common Shares Purchasable Upon Exercise

                  10.3.1   In case the Corporation shall take any action
                           affecting the Common Shares, other than any action
                           described in this Section 10, which would materially
                           affect the rights of the Holder, the number of Common
                           Shares purchasable upon exercise shall be adjusted,
                           in consultation with the Holder.

                  10.3.2   In any case in which this Section 10 shall require
                           that an adjustment shall become effective immediately
                           after a record date for an event referred to herein,
                           the Corporation may defer, until the occurrence of
                           such event, issuing to the Holder (in the event this
                           Warrant is exercised after such record date and
                           before the occurrence of such event) the additional
                           Common Shares issuable upon such exercise by reason
                           of the adjustment required by such event; provided,
                           however, that the Corporation shall deliver to the
                           Holder an appropriate instrument evidencing the
                           Holder's right to receive such additional Common
                           Shares or other applicable securities upon the
                           occurrence of the event requiring such adjustment and
                           the right to receive any distributions made on such
                           additional Common Shares declared in favour of
                           holders of record of Common Shares on and after the
                           exercise date or such later date as the Holder would,
                           but for the provisions of this Section 10.3.2, have
                           become the Holder of record of such additional Common
                           Shares pursuant to Section 10.

                  10.3.3   The adjustments provided for in this Section 10 are
                           cumulative and shall be made successively whenever an
                           event referred to herein shall occur.

                  10.3.4   In the event of any question arising with respect to
                           the adjustments provided in this Section 10, such
                           question shall be conclusively determined by a firm
                           of chartered accountants appointed by the Corporation
                           and acceptable to the Holder, acting reasonably (who
                           may be the Corporation's auditors), such accountants
                           shall have access to all necessary records of the
                           Corporation and such determination shall be binding
                           upon the Corporation and the Holder.
<PAGE>

                  10.3.5   As a condition precedent to the taking of any action
                           which would result in an adjustment to the number of
                           Common Shares purchasable upon exercise of this
                           Warrant, the Corporation shall take any corporate
                           action which may be necessary in order that the
                           securities to which the Holder is entitled on the
                           full exercise of its exercise right in accordance
                           with the provisions hereof shall be available for
                           such purpose and that such shares may be validly and
                           legally issued as fully paid and non-assessable
                           shares.

                  10.3.6   If the issuance of any Common Shares upon the
                           exercise of this Warrant requires any filing or
                           registration with or approval of any governmental
                           authority or compliance with any other requirement
                           under any law before such shares may be validly
                           issued upon such exercise, the Corporation agrees to
                           take such actions as may be necessary to secure such
                           filing, registration, approval or compliance, as the
                           case may be; provided that, in the event that such
                           filing, registration, approval or compliance is
                           required only by reason of the particular
                           circumstances of or actions taken by any such person,
                           the Corporation will not be required to take such
                           action.

                  10.3.7   The Corporation shall from time to time immediately
                           after the occurrence of any event which requires an
                           adjustment in the number of Common Shares purchasable
                           upon exercise of this Warrant as above provided,
                           deliver a certificate of an officer of the
                           Corporation to the Holder specifying the nature of
                           the event requiring the adjustment and the amount of
                           the adjustment thereby necessitated and setting forth
                           in reasonable detail the method of calculation and
                           the facts upon which such calculation is based.

11.      Exchange of Warrant This Warrant is exchangeable, upon the surrender
         hereof by the Holder at the office or agency of the Corporation
         referred to in Section 5 hereof, for new warrants of like tenor
         representing in the aggregate the right to subscribe for and purchase
         the number of Common Shares which may be subscribed for and purchased
         hereunder, each such new warrant to represent the right to subscribe
         for and purchase such number of Common Shares as shall be designated by
         the Holder at the time of such surrender. In the event that this
         Warrant is exercised for less than the maximum number of Common Shares
         which may be purchased hereunder, at the time of and as a condition to
         the obligation of the Corporation to deliver the certificates
         representing the Common Shares, the Holder shall surrender this Warrant
         and the Corporation shall issue a new warrant to represent the right to
         subscribe for the remaining number of Common Shares calculated in
         accordance with the provisions thereof.

12.      Mutilated or Missing Warrant Upon receipt of evidence satisfactory to
         the Corporation of the loss, theft, destruction or mutilation of this
         Warrant and, in the case of any such loss, theft or destruction, upon
         delivery of a bond or indemnity satisfactory to the Corporation, acting
         reasonably, or, in the case of any such mutilation, upon surrender or
         cancellation of this Warrant, the Corporation will issue to the Holder
         a new warrant of like tenor, in lieu of this Warrant, representing the
         right to subscribe for and purchase the number of Common Shares which
         may be subscribed for and purchased hereunder.
<PAGE>

13.      Assignment/Transfer of Warrant

         13.1     This Warrant may not be sold, transferred, assigned,
                  hypothecated or divided into two or more Warrant of smaller
                  denominations, nor may any Underlying Shares be transferred,
                  sold, assigned or hypothecated except in accordance with this
                  Section. The Holder, by acceptance hereof, agrees to give
                  written notice to the Corporation before transferring this
                  Warrant or transferring any Underlying Shares; such notice
                  will describe briefly the any proposed transfer and will give
                  the Corporation the name, address, and tax identification
                  number of the proposed transferee, and will further provide
                  the Corporation with an opinion of the Holder's counsel that
                  such transfer can be accomplished in accordance with federal
                  and applicable state securities laws (unless such transaction
                  is permitted by the plan of distribution in an effective
                  Registration Statement). Promptly upon receiving such written
                  notice, the Corporation shall present copies thereof to the
                  Corporation's counsel.

                  13.1.1   If in the opinion of such counsel the proposed
                           transfer may be effected without registration or
                           qualification (under any federal or state securities
                           laws), the Corporation, as promptly as practicable,
                           shall notify the Holder of such opinion, whereupon
                           the Holder shall be entitled to transfer this Warrant
                           or to dispose of Underlying Shares received upon the
                           previous conversion of this Warrant, all in
                           accordance with the terms of the notice delivered by
                           the Holder to the Corporation; provided that an
                           appropriate legend may be endorsed on this Warrant or
                           the certificates for such Underlying Shares
                           respecting restrictions upon transfer thereof
                           necessary or advisable in the opinion of counsel and
                           satisfactory to the Corporation to prevent further
                           transfers which would be in violation of Section 5 of
                           the Act and applicable state securities laws; and
                           provided further that the prospective transferee or
                           purchaser shall execute such documents and make such
                           representations, warranties, and agreements as may be
                           required solely to comply with the exemptions relied
                           upon by the Corporation for the transfer or
                           disposition of the Warrant or Underlying Shares.

                  13.1.2   If in the opinion of the counsel referred to in this
                           Section 2, the proposed transfer or disposition of
                           this Warrant or such Underlying Shares described in
                           the written notice given pursuant to this Section 2
                           may not be effected without registration or
                           qualification of this Warrant or such Underlying
                           Shares the Corporation shall promptly give written
                           notice thereof to the Holder, and the Holder will
                           limit its activities in respect to such as, in the
                           opinion of such counsel, are permitted by law.

         13.2     Prior to transfer of this Warrant in compliance with this
                  Section 2, the Corporation and any agent of the Corporation
                  may treat the person in whose name this Warrant is duly
                  registered on the Warrant Register as the owner hereof for the
                  purpose of receiving payment as herein provided and for all
                  other purposes, neither the Corporation nor any such agent
                  shall be affected by notice to the contrary.
<PAGE>

14.      Governing Law. This Warrant shall be governed by and construed in
         accordance with the laws of the Province of Ontario. All disputes will
         be settled in accordance with section 8.04 of the Securities Purchase
         Agreement.

15.      Severability If any one or more of the provisions or parts thereof
         contained in this Warrant should be or become invalid, illegal or
         unenforceable in any respect in any jurisdiction, the remaining
         provisions or parts thereof contained herein shall be and shall be
         conclusively deemed to be, as to such jurisdiction, severable therefrom
         and:

         15.1     the validity, legality or enforceability of such remaining
                  provisions or parts thereof shall not in any way be affected
                  or impaired by the severance of the provisions or parts
                  thereof severed; and

         15.2     the invalidity, illegality or unenforceability of any
                  provision or part thereof contained in this Warrant in any
                  jurisdiction shall not affect or impair such provision or part
                  thereof or any other provisions of this Warrant in any other
                  jurisdiction.

16.      Headings The headings of the sections, subsections, paragraphs,
         subparagraphs and clauses of this Warrant have been inserted for
         convenience of reference only and do not define, limit, alter or
         enlarge the meaning of any provision of this Warrant.

17.      Numbering of Articles, etc Unless otherwise stated, a reference herein
         to a numbered or lettered section, subsection, paragraph, subparagraph
         or schedule refers to the section, subsection, paragraph, subparagraph
         or schedule bearing that number or letter in this Warrant.

18.      Gender Whenever used in this Warrant, words importing the singular
         number only shall include the plural, and vice versa, and words
         importing the masculine gender shall include the feminine gender.

19.      Day not a Business Day In the event that any day on or before which any
         action is required to be taken hereunder is not a Business Day, then
         such action shall be required to be taken on or before the requisite
         time on the next succeeding day that is a Business Day. If the payment
         of any amount is deferred for any period, then such period shall be
         included for purposes of the computation of any interest payable
         hereunder.

20.      Binding Effect This Warrant and all of its provisions shall enure to
         the benefit of the Holder and its successors and permitted assigns and
         shall be binding upon the Corporation and its successors and permitted
         assigns. This Warrant is not assignable by the Corporation without the
         prior written consent of the Holder.
<PAGE>

21.      Registration Rights The Holder shall have the same rights as set forth
         in Section 2.25 of the Securities Purchase Agreement with respect to
         the Common Shares issuable upon the exercise of this Warrant.

22.      Notices All notices, requests, demands or other communications by the
         terms hereof required or permitted to be given one party to the other
         shall be given in writing by personal delivery or by registered mail,
         postage prepaid, addressed to the other party or delivered to such
         other party as provided in Section 5 hereof, or at such other address
         as may be given by either of them to the other in writing from time to
         time and such notices, requests, demands or other communications shall
         be deemed to have been received when delivered or faxed, or, if mailed,
         One Hundred and Twenty (120) hours after 12:01 a.m. on the day
         following the day of the mailing thereof if to the Company or if the
         Holder is in North America, and Two Hundred and Forty (240) hours after
         12:00 a.m. on the day following the day of the mailing thereof if the
         Holder is outside of North America; provided that if any such notice,
         request, demand or other communication shall have been mailed and if
         regular mail service shall be interrupted by strikes or other
         irregularities, such notices, requests, demands or other communications
         shall be deemed to have been received forty-eight (48) hours after
         12:01 a.m. on the day following the resumption of normal mail service.

IN WITNESS WHEREOF the Corporation has caused this Warrant to be signed by its
duly authorized officers under its corporate seal, and this Warrant to be dated
the 31st day of May, 2004.
                                    MED-EMERG INTERNATIONAL INC.

                                    By:
                                        -------------------------------------
                                    Name: Bill Danis, Chief Financial Officer

<PAGE>

                                  SCHEDULE "A"
                                SUBSCRIPTION FORM

(To be signed only upon exercise of this Warrant)

                  The undersigned hereby exercises the within Warrant for the
purchase of One (1) Common Shares covered by such New Warrants in accordance
with the terms and conditions thereof, and herewith makes payment of the
exercise price in full.

                  The Corporation is instructed to issue certificates for such
shares and any New Warrants to which the undersigned may be entitled on partial
exercise hereof in the name of the undersigned and to deliver the same to the
address indicated.

--------------------------------------------------------------------------------
Name

--------------------------------------------------------------------------------
Street and Number                                    City and Province

Date:
     --------------------------               ----------------------------------
Purchaser's Signature                         [Signature must
                                              conform exactly
                                              with the name of
                                              the registered
                                              owner on the form
                                              of this Warrant.]

<PAGE>

                                  SCHEDULE "B"
                                  TRANSFER FORM

FOR VALUE RECEIVED, the undersigned hereby sells, transfers and assigns to
(print name of address of transferee)

[Print name and address of transferee]

                                   (Warrants)

[Number of Warrants to be transferred]

represented by the attached Warrant Certificate and does hereby appoint [INSERT]
with full power of substitution to transfer the Warrants on the register
maintained by the Corporation.

The undersigned acknowledges that any transfer of Warrants is subject to the
resale restrictions of the securities legislation in those jurisdictions where
the transferor and transferee are normally resident. The undersigned confirms
that he, she or it has ascertained that exemptions from the relevant prospectus
and registration requirements are available and undertakes to file all necessary
forms with the appropriate bodies, in connection with such transfer.

The signature below must be guaranteed by a Canadian chartered bank or by a
Canadian trust company.

DATED this day of May, 2004.

                                              [Signature of Registered Holder]

[Signature Guarantee]                         [Name of Registered Holder]

NOTICE:   The signature of the registered holder must correspond with
          the name appearing on the face of this Warrant Certificate as
          in every particular without alteration or enlargement or any
          change whatsoever.

<PAGE>

SCHEDULE "B"

NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE ON THE EXERCISE OF THIS WARRANT
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS.

UNLESS PERMITTED BY APPLICABLE SECURITIES LEGISLATION, THE HOLDER SHALL NOT
TRADE EITHER THIS WARRANT OR THE SECURITIES ISSUABLE ON THE EXERCISE OF THIS
WARRANT UNTIL OCTOBER 2, 2004.

                          COMMON SHARE PURCHASE WARRANT

                          To Subscribe for and Purchase
                                  Common Shares

                          MED-EMERG INTERNATIONAL INC.

Series A, No. 1                     Warrant to Purchase 1,152,699 Common Shares

REFERENCE is made to 1,437,500 common share purchase warrants currently
outstanding for the purchase common shares of Med-Emerg International Inc. (the
"CORPORATION") exercisable at $0.50 (U.S.) per common share.

AND REFERENCE is made to 2,325,000 options currently outstanding for the
purchase of common shares of the Corporation, exercisable at $0.50 (U.S.) per
common share.

(The aggregate of the 1,437,500 common share purchase warrants and the 2,325,000
options shall collectively hereinafter be referred to as the "$0.50 OPTION
SHARES")

AND REFERENCE is made to 100,000 options currently outstanding for the purchase
of common shares of the Corporation, exercisable at $1.00 (U.S.) per common
share (hereinafter referred to as the "$1.00 OPTION SHARES").

THIS IS TO CERTIFY that, for the sum of $1.00 now paid by 1245841 Ontario Inc.
(the "HOLDER") and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Holder is entitled, subject to
the terms and conditions hereinafter set forth, to subscribe for and purchase
from the Corporation:

<PAGE>

c)       three (3) common shares of the Corporation at $0.50 U.S. per common
         share for each $0.50 Option Shares of the Corporation issued;

d)       three (3) common shares of the Corporation at $1.00 U.S. per common
         share for each $1.00 Option Shares of the Corporation issued;

by surrendering to the Corporation at its principal office in the City of
Mississauga, Province of Ontario, this Warrant, together with a subscription
form, duly completed and executed, and a certified cheque or bank draft in
lawful money of the United States payable to or to the order of the Corporation
for an amount equal to the Exercise Price (as hereinafter defined), on and
subject to the terms and conditions set forth below.

1.       Definitions In this Warrant, including the preamble, unless there is
         something in the subject matter or context inconsistent herewith, the
         following terms shall have the following meanings, respectively:

         "BUSINESS DAY" means any day except Saturday, Sunday or any day on
         which banks are generally not open for business in the City of Toronto;

         "COMMON SHARES" means the common shares of the Corporation as the same
         are constituted on the date hereof, together with any other class or
         classes of shares in the capital of the Corporation, whether now
         existing or hereafter created, entitling the Holder to share in the
         final distribution of the property and assets of the Corporation upon
         liquidation, dissolution or winding-up after any fixed payments to the
         holders of any other class or classes of shares, and includes any
         shares or securities into which such shares may be converted or changed
         or which result from a consolidation, subdivision, reclassification or
         re-designation of Common Shares or other such shares or securities
         which are received as a stock dividend or distribution payable in
         Common Shares or other such shares or securities of the Corporation or
         Common Shares or other such shares or securities received on the
         exercise of any option, warrant or other similar right and any Common
         Shares or other such shares or securities which may be received by the
         parties hereto or bound hereby as a result of an amalgamation, merger,
         arrangement or other reorganization of or including the Corporation,
         and where the context permits, includes any Common Shares issuable
         pursuant to any instrument of the Corporation that is convertible into
         Common Shares or evidences the right to acquire Common Shares;

         "CAPITAL REORGANIZATION" has the meaning ascribed thereto in
         Section 9.1;

         "CORPORATION" means Med-Emerg International Inc., a corporation
         incorporated under the laws of the Province of Ontario;

         "EXERCISE PRICE" means the sum of $0.50 US per common share for each of
         the $0.50 Option Shares and $1.00 US for each for the $1.00 Option
         Shares, subject to adjustment as provided herein;
<PAGE>

         "EXPIRY DATE" means the date that is the latest date that any of the
         $0.50 Option Shares or the $1.00 Option Shares have expired without
         being exercised by the holder thereof;

         "FULLY DILUTED" means the number of Common Shares outstanding at any
         time, including any stock dividends which have been declared but not
         issued and assuming all securities which are convertible directly or
         indirectly into such Common Shares are converted into Common Shares and
         all options, warrants or rights to acquire directly or indirectly such
         Common Shares shall be treated as if exercised;

         "HOLDER" means 1245841 Ontario Inc.;

         "OPTION SHARES" means the $0.50 Option Shares or the $1.00 Options
         Shares, as the case may be;

         "SECURITIES PURCHASE AGREEMENT" means the securities purchase agreement
         made as of even date hereof between the Corporation and the Buyers (as
         such capitalized term is defined in the Securities Purchase Agreement)
         and for the purpose of referring herein to the purchase of common
         shares of the Corporation pursuant to the "Securities Purchase
         Agreement" the term "Securities Purchase Agreement" shall include any
         other agreement pursuant to which any of the aforementioned parties
         have, directly or indirectly, acquired securities of the Corporation on
         the date hereof;

         "SHARE REORGANIZATION" has the meaning ascribed thereto in Section 9.2;

         "SUBSCRIPTION LIMIT" means the aggregate of One Million One Hundred
         Fifty Two Thousand Six Hundred and Ninety Nine (1,152,599) common
         shares of the Corporation on the basis of three (3) common shares for
         each common share of the Corporation issued p to the exercise of the
         Option Shares. If within three hundred and sixty five days (365) days
         from the date upon which notice of such exercise was, or was deemed to
         be, received by the Holder, the Holder has failed to exercise the
         Warrant with respect to that number of Common Shares he is entitled to
         purchase on the issuance of Option Shares in accordance with the terms
         of this Warrant, then the number of Underlying Shares issuable upon
         exercise of this Warrant as a result of the issuance of said Option
         Shares shall be reduced by such amount;

         "UNDERLYING SHARES" means the Common Shares of the Corporation issuable
         upon the exercise of the Warrant; and

         "WARRANT" means this warrant and any deed or instrument supplemental or
         ancillary hereto and any schedules hereto or thereto and not to any
         particular article, section, subsection, clause, subclause or other
         portion hereof.

2.       Conditions This Warrant entitles the Holder, upon exercise of this
         Warrant, to subscribe for and purchase Common Shares for the Exercise
         Price, subject to adjustment as hereinafter provided. Notwithstanding
         anything to the contrary contained herein, the aggregate number of
         Common Shares subscribed for and purchased by the Holder pursuant to
         this Warrant shall not exceed the Subscription Limit.
<PAGE>

3.       Expiration of Warrant Rights under this Warrant in respect of which the
         right of subscription and purchase herein provided for have not been
         exercised shall wholly cease and such Warrant shall be wholly void and
         of no valid or binding effect as of 5 p.m. (Toronto time) on the Expiry
         Date and of no further force and effect and the Holder shall tender to
         the Corporation this Warrant (if in its possession) for cancellation.

4.       Notice by Corporation to Holder Upon the issuance by the Corporation of
         share certificates representing the exercise of any of the Option
         Shares, the Corporation shall forthwith, by notice in writing advise
         the Holder of:

         (a)      the number of Common Shares issued by the Corporation upon the
                  exercise of the $0.50 Option Shares or the $1.00 Option
                  Shares; and

         (b)      the number of Common Shares that the Holder is entitled to
                  purchase and the purchase price for such Common Shares based
                  on (a) above.

         The Holder shall have three hundred and sixty five days (365) days from
         the date upon which such notice was, or was deemed to be, received by
         the Holder to exercise the Warrant with respect to that number of
         Common Shares and otherwise in accordance with the terms of this
         Warrant.

5.       Exercise of Warrant The rights represented by this Warrant may be
         exercised by the Holder by the surrender of this Warrant, with the
         attached Subscription Form duly executed, at the principal office of
         the Corporation at 6711 Mississauga Road, Suite 404, Mississauga,
         Ontario L5N 2W3 (or such other office or agency of the Corporation as
         it may designate by notice in writing to the Holder hereof) at the
         address of such holder appearing in the records of the Corporation and
         upon payment to it for the account of the Corporation, by certified
         cheque or bank draft, of the Exercise Price for the number of Common
         Shares in respect of which this Warrant is being exercised. The
         Corporation agrees that the shares subscribed for and purchased by
         exercise of this Warrant shall be and be deemed to be issued to the
         Holder as the registered owner of such shares as of the close of
         business on the date on which this Warrant shall have been surrendered
         and payment made for such shares as aforesaid. Certificates for the
         shares so purchased shall be delivered to the Holder within three (3)
         Business Days, if the Holder address as registered in the books of the
         Corporation is in North America, or four (4) Business Days if the
         Holder address as registered in the books of the Corporation is outside
         of North America, after the rights represented by this Warrant shall
         have been so exercised.

6.       Not a Shareholder Nothing in this certificate or in the holding of a
         Warrant evidenced hereby shall be construed as conferring upon the
         Holder any right or interest whatsoever as a shareholder of the
         Corporation.
<PAGE>

7.       No Fractional Shares Notwithstanding any provisions to the contrary
         herein, the Corporation shall not be required to issue any fractional
         shares in the capital of the Corporation (unless such fractional shares
         arise from a consolidation of shares) in connection with any exercise
         of the right to convert this Warrant into Common Shares, and in the
         event that the calculation of the number of Common Shares issuable upon
         such exercise results in a number which includes a fraction of whole
         shares, then the Corporation shall be required to issue the largest
         number of whole shares into which the Warrant is exercisable, and the
         remainder of such amount shall be paid in cash at the time of the
         issuance of the Common Shares in connection with the exercise of this
         Warrant in an amount determined by the Corporation's board of
         directors.

8.       Representations and Warranties of the Corporation The Corporation
         incorporates herein by reference the representations and warranties of
         the Corporation contained in the Securities Purchase Agreement and
         agrees and acknowledges that the Holder is relying thereupon.

9.       Covenants of the Corporation The Corporation hereby agrees as follows:

         9.1      All Common Shares which may be issued upon the exercise of the
                  rights represented by this Warrant will, upon issuance and
                  assuming that the Exercise Price therefore has been received
                  by the Corporation for each Common Share so subscribed, be
                  validly issued as fully paid and non-assessable and shall be
                  free from any and all taxes, liens and charges with respect to
                  the issue thereof.

         9.2      As long as this Warrant or any part evidenced hereby remains
                  outstanding, the Corporation shall reserve and there shall
                  remain unissued out of its capital a sufficient number of its
                  Common Shares to satisfy the right of purchase herein provided
                  for should the Holder determine to exercise its rights in
                  respect of the Common Shares for the time being called for and
                  represented by this Warrant.

10.      Adjustment of Subscription Rights

         10.1     Capital Reorganization. If at any time while this Warrant
                  remains outstanding there shall be any reclassification of any
                  class of Common Shares at any time outstanding or a change of
                  any class of Common Shares into other shares or into other
                  securities, or in case of the consolidation, amalgamation or
                  merger of the Corporation with or into any other corporation
                  (other than a consolidation, amalgamation or merger which does
                  not result in a reclassification of any class of the
                  outstanding Common Shares or a change of any class of the
                  Common Shares into other shares), or in case of any transfer
                  of the undertaking or assets of the Corporation as an entirety
                  or substantially as an entirety to another corporation, at any
                  time while this Warrant remains outstanding (collectively, a
                  "Capital Reorganization"), any holder who exercises its right
                  to purchase Common Shares pursuant to this Warrant after the
                  effective date of such Capital Reorganization shall be
                  entitled to receive, and shall accept, in lieu of the number

<PAGE>

                  of Common Shares to which it was theretofore entitled upon
                  such exercise, the kind and amount of shares and other
                  securities or property which the Holder would have been
                  entitled to receive as a result of such reclassification,
                  change, consolidation, amalgamation, merger or transfer if, on
                  the effective date thereof, the Holder had been the registered
                  holder of the number of Common Shares to which the Holder was
                  theretofore entitled upon exercise. If necessary, appropriate
                  adjustments shall be made in the application of the provisions
                  set forth in this Section 10 with respect to the rights and
                  interests thereafter of the Holder to the end that the
                  provisions set forth in this Section 9 shall thereafter
                  correspondingly be made applicable as nearly as may reasonably
                  be possible in relation to any shares or other securities or
                  property thereafter deliverable upon the exercise of this
                  Warrant. The subdivision or consolidation of any class of the
                  Common Shares at any time outstanding into a greater or lesser
                  number of Common Shares shall be deemed not to be a
                  reclassification of the capital of the Corporation for the
                  purposes of this Section 10.1.

         10.2     Share Reorganization. If at any time while this Warrant
                  remains outstanding, the Corporation shall (i) subdivide any
                  class of outstanding Common Shares into a greater number of
                  Common Shares, (ii) consolidate any class of outstanding
                  Common Shares into a lesser number of Common Shares, (iii)
                  issue Common Shares or securities exchangeable for or
                  convertible into Common Shares to the holders of all or
                  substantially all of any class of outstanding Common Shares by
                  way of stock dividend (other than as a dividend paid in the
                  ordinary course on any class of Common Shares) or (iv) make a
                  distribution on any class of outstanding Common Shares payable
                  in Common Shares or securities exchangeable for or convertible
                  into Common Shares (other than as a dividend paid in the
                  ordinary course) (any of such events in these clauses (i),
                  (ii), (iii) and (iv) being called a "SHARE REORGANIZATION"),
                  the Exercise Price shall be adjusted effective immediately on
                  the effective date of such Share Reorganization or the record
                  date at which the holders of Common Shares are determined for
                  the purposes of the Share Reorganization by multiplying in
                  each case, the Exercise Price in effect immediately prior to
                  such record date by a fraction, the numerator of which shall
                  be the number of outstanding Common Shares on such record date
                  calculated on a Fully Diluted basis, but before giving effect
                  to such Share Reorganization, and the denominator of which
                  shall be the number of outstanding Common Shares after giving
                  effect to such Share Reorganization calculated on a Fully
                  Diluted basis (including, in the case where securities
                  exchangeable for or convertible into Common Shares are
                  distributed, the number of Common Shares that would have been
                  outstanding had such securities been exchanged for or
                  converted into Common Shares on such record date). Such
                  adjustment shall be made successively whenever any such
                  effective date or record date shall occur and any such issue
                  of Common Shares by way of stock dividend or other
                  distribution shall be deemed to have been made on the record
                  date for the stock dividend or other distribution for the
                  purpose of calculating the number of outstanding Common
                  Shares.
<PAGE>

                  If at any time while this Warrant remains outstanding, a Share
                  Reorganization shall occur which results in an adjustment in
                  the Exercise Price pursuant to the provisions of this Section
                  10.2, the number of Common Shares which may be acquired
                  pursuant to this Warrant shall be adjusted contemporaneously
                  with the adjustment of the Exercise Price by multiplying the
                  number of Common Shares theretofore purchasable on the
                  exercise thereof by a fraction the numerator of which shall be
                  the Exercise Price in effect immediately prior to such
                  adjustment and the denominator of which shall be the Exercise
                  Price resulting from such adjustment.

         10.3     Rules Regarding Calculation of Adjustment of Exercise Price
                  and Number of Common Shares Purchasable Upon Exercise

                  10.3.1   In case the Corporation shall take any action
                           affecting the Common Shares, other than any action
                           described in this Section 10, which would materially
                           affect the rights of the Holder, the number of Common
                           Shares purchasable upon exercise shall be adjusted,
                           in consultation with the Holder.

                  10.3.2   In any case in which this Section 10 shall require
                           that an adjustment shall become effective immediately
                           after a record date for an event referred to herein,
                           the Corporation may defer, until the occurrence of
                           such event, issuing to the Holder (in the event this
                           Warrant is exercised after such record date and
                           before the occurrence of such event) the additional
                           Common Shares issuable upon such exercise by reason
                           of the adjustment required by such event; provided,
                           however, that the Corporation shall deliver to the
                           Holder an appropriate instrument evidencing the
                           Holder's right to receive such additional Common
                           Shares or other applicable securities upon the
                           occurrence of the event requiring such adjustment and
                           the right to receive any distributions made on such
                           additional Common Shares declared in favour of
                           holders of record of Common Shares on and after the
                           exercise date or such later date as the Holder would,
                           but for the provisions of this Section 10.3.2, have
                           become the Holder of record of such additional Common
                           Shares pursuant to Section 10.

                  10.3.3   The adjustments provided for in this Section 10 are
                           cumulative and shall be made successively whenever an
                           event referred to herein shall occur.

                  10.3.4   In the event of any question arising with respect to
                           the adjustments provided in this Section 10, such
                           question shall be conclusively determined by a firm
                           of chartered accountants appointed by the Corporation
                           and acceptable to the Holder, acting reasonably (who
                           may be the Corporation's auditors), such accountants
                           shall have access to all necessary records of the
                           Corporation and such determination shall be binding
                           upon the Corporation and the Holder.
<PAGE>

                  10.3.5   As a condition precedent to the taking of any action
                           which would result in an adjustment to the number of
                           Common Shares purchasable upon exercise of this
                           Warrant, the Corporation shall take any corporate
                           action which may be necessary in order that the
                           securities to which the Holder is entitled on the
                           full exercise of its exercise right in accordance
                           with the provisions hereof shall be available for
                           such purpose and that such shares may be validly and
                           legally issued as fully paid and non-assessable
                           shares.

                  10.3.6   If the issuance of any Common Shares upon the
                           exercise of this Warrant requires any filing or
                           registration with or approval of any governmental
                           authority or compliance with any other requirement
                           under any law before such shares may be validly
                           issued upon such exercise, the Corporation agrees to
                           take such actions as may be necessary to secure such
                           filing, registration, approval or compliance, as the
                           case may be; provided that, in the event that such
                           filing, registration, approval or compliance is
                           required only by reason of the particular
                           circumstances of or actions taken by any such person,
                           the Corporation will not be required to take such
                           action.

                  10.3.7   The Corporation shall from time to time immediately
                           after the occurrence of any event which requires an
                           adjustment in the number of Common Shares purchasable
                           upon exercise of this Warrant as above provided,
                           deliver a certificate of an officer of the
                           Corporation to the Holder specifying the nature of
                           the event requiring the adjustment and the amount of
                           the adjustment thereby necessitated and setting forth
                           in reasonable detail the method of calculation and
                           the facts upon which such calculation is based.

11.      Exchange of Warrant This Warrant is exchangeable, upon the surrender
         hereof by the Holder at the office or agency of the Corporation
         referred to in Section 5 hereof, for new warrants of like tenor
         representing in the aggregate the right to subscribe for and purchase
         the number of Common Shares which may be subscribed for and purchased
         hereunder, each such new warrant to represent the right to subscribe
         for and purchase such number of Common Shares as shall be designated by
         the Holder at the time of such surrender. In the event that this
         Warrant is exercised for less than the maximum number of Common Shares
         which may be purchased hereunder, at the time of and as a condition to
         the obligation of the Corporation to deliver the certificates
         representing the Common Shares, the Holder shall surrender this Warrant
         and the Corporation shall issue a new warrant to represent the right to
         subscribe for the remaining number of Common Shares calculated in
         accordance with the provisions thereof.

12.      Mutilated or Missing Warrant Upon receipt of evidence satisfactory to
         the Corporation of the loss, theft, destruction or mutilation of this
         Warrant and, in the case of any such loss, theft or destruction, upon
         delivery of a bond or indemnity satisfactory to the Corporation, acting
         reasonably, or, in the case of any such mutilation, upon surrender or
         cancellation of this Warrant, the Corporation will issue to the Holder
         a new warrant of like tenor, in lieu of this Warrant, representing the
         right to subscribe for and purchase the number of Common Shares which
         may be subscribed for and purchased hereunder.

<PAGE>

13.      Assignment/Transfer of Warrant

         13.1     This Warrant may not be sold, transferred, assigned,
                  hypothecated or divided into two or more Warrant of smaller
                  denominations, nor may any Underlying Shares be transferred,
                  sold, assigned or hypothecated except in accordance with this
                  Section. The Holder, by acceptance hereof, agrees to give
                  written notice to the Corporation before transferring this
                  Warrant or transferring any Underlying Shares; such notice
                  will describe briefly the any proposed transfer and will give
                  the Corporation the name, address, and tax identification
                  number of the proposed transferee, and will further provide
                  the Corporation with an opinion of the Holder's counsel that
                  such transfer can be accomplished in accordance with federal
                  and applicable state securities laws (unless such transaction
                  is permitted by the plan of distribution in an effective
                  Registration Statement). Promptly upon receiving such written
                  notice, the Corporation shall present copies thereof to the
                  Corporation's counsel.

                  13.1.1   If in the opinion of such counsel the proposed
                           transfer may be effected without registration or
                           qualification (under any federal or state securities
                           laws), the Corporation, as promptly as practicable,
                           shall notify the Holder of such opinion, whereupon
                           the Holder shall be entitled to transfer this Warrant
                           or to dispose of Underlying Shares received upon the
                           previous conversion of this Warrant, all in
                           accordance with the terms of the notice delivered by
                           the Holder to the Corporation; provided that an
                           appropriate legend may be endorsed on this Warrant or
                           the certificates for such Underlying Shares
                           respecting restrictions upon transfer thereof
                           necessary or advisable in the opinion of counsel and
                           satisfactory to the Corporation to prevent further
                           transfers which would be in violation of Section 5 of
                           the Act and applicable state securities laws; and
                           provided further that the prospective transferee or
                           purchaser shall execute such documents and make such
                           representations, warranties, and agreements as may be
                           required solely to comply with the exemptions relied
                           upon by the Corporation for the transfer or
                           disposition of the Warrant or Underlying Shares.

                  13.1.2   If in the opinion of the counsel referred to in this
                           Section 2, the proposed transfer or disposition of
                           this Warrant or such Underlying Shares described in
                           the written notice given pursuant to this Section 2
                           may not be effected without registration or
                           qualification of this Warrant or such Underlying
                           Shares the Corporation shall promptly give written
                           notice thereof to the Holder, and the Holder will
                           limit its activities in respect to such as, in the
                           opinion of such counsel, are permitted by law.
<PAGE>

         13.2     Prior to transfer of this Warrant in compliance with this
                  Section 2, the Corporation and any agent of the Corporation
                  may treat the person in whose name this Warrant is duly
                  registered on the Warrant Register as the owner hereof for the
                  purpose of receiving payment as herein provided and for all
                  other purposes, neither the Corporation nor any such agent
                  shall be affected by notice to the contrary.

14.      Governing Law. This Warrant shall be governed by and construed in
         accordance with the laws of the Province of Ontario. All disputes will
         be settled in accordance with section 8.04 of the Securities Purchase
         Agreement.

15.      Severability If any one or more of the provisions or parts thereof
         contained in this Warrant should be or become invalid, illegal or
         unenforceable in any respect in any jurisdiction, the remaining
         provisions or parts thereof contained herein shall be and shall be
         conclusively deemed to be, as to such jurisdiction, severable therefrom
         and:

         15.1     the validity, legality or enforceability of such remaining
                  provisions or parts thereof shall not in any way be affected
                  or impaired by the severance of the provisions or parts
                  thereof severed; and

         15.2     the invalidity, illegality or unenforceability of any
                  provision or part thereof contained in this Warrant in any
                  jurisdiction shall not affect or impair such provision or part
                  thereof or any other provisions of this Warrant in any other
                  jurisdiction.

16.      Headings The headings of the sections, subsections, paragraphs,
         subparagraphs and clauses of this Warrant have been inserted for
         convenience of reference only and do not define, limit, alter or
         enlarge the meaning of any provision of this Warrant.

17.      Numbering of Articles, etc Unless otherwise stated, a reference herein
         to a numbered or lettered section, subsection, paragraph, subparagraph
         or schedule refers to the section, subsection, paragraph, subparagraph
         or schedule bearing that number or letter in this Warrant.

18.      Gender Whenever used in this Warrant, words importing the singular
         number only shall include the plural, and vice versa, and words
         importing the masculine gender shall include the feminine gender.

19.      Day not a Business Day In the event that any day on or before which any
         action is required to be taken hereunder is not a Business Day, then
         such action shall be required to be taken on or before the requisite
         time on the next succeeding day that is a Business Day. If the payment
         of any amount is deferred for any period, then such period shall be
         included for purposes of the computation of any interest payable
         hereunder.

20.      Binding Effect This Warrant and all of its provisions shall enure to
         the benefit of the Holder and its successors and permitted assigns and
         shall be binding upon the Corporation and its successors and permitted
         assigns. This Warrant is not assignable by the Corporation without the
         prior written consent of the Holder.

<PAGE>

21.      Registration Rights The Holder shall have the same rights as set forth
         in Section 2.25 of the Securities Purchase Agreement with respect to
         the Common Shares issuable upon the exercise of this Warrant.

22.      Notices All notices, requests, demands or other communications by the
         terms hereof required or permitted to be given one party to the other
         shall be given in writing by personal delivery or by registered mail,
         postage prepaid, addressed to the other party or delivered to such
         other party as provided in Section 5 hereof, or at such other address
         as may be given by either of them to the other in writing from time to
         time and such notices, requests, demands or other communications shall
         be deemed to have been received when delivered or faxed, or, if mailed,
         One Hundred and Twenty (120) hours after 12:01 a.m. on the day
         following the day of the mailing thereof if to the Company or if the
         Holder is in North America, and Two Hundred and Forty (240) hours after
         12:00 a.m. on the day following the day of the mailing thereof if the
         Holder is outside of North America; provided that if any such notice,
         request, demand or other communication shall have been mailed and if
         regular mail service shall be interrupted by strikes or other
         irregularities, such notices, requests, demands or other communications
         shall be deemed to have been received forty-eight (48) hours after
         12:01 a.m. on the day following the resumption of normal mail service.

IN WITNESS WHEREOF the Corporation has caused this Warrant to be signed by its
duly authorized officers under its corporate seal, and this Warrant to be dated
the 31st day of May, 2004.
                                    MED-EMERG INTERNATIONAL INC.

                                    By:
                                        -----------------------------------
                    Name: Bill Danis, Chief Financial Officer

<PAGE>

                                  SCHEDULE "A"
                                SUBSCRIPTION FORM

(To be signed only upon exercise of this Warrant)

                  The undersigned hereby exercises the within Warrant for the
purchase of Three (3) Common Shares covered by such New Warrants in accordance
with the terms and conditions thereof, and herewith makes payment of the
exercise price in full.

                  The Corporation is instructed to issue certificates for such
shares and any New Warrants to which the undersigned may be entitled on partial
exercise hereof in the name of the undersigned and to deliver the same to the
address indicated.

--------------------------------------------------------------------------------
Name

--------------------------------------------------------------------------------
Street and Number                                    City and Province

Date:
     -------------------------            ---------------------------------
Purchaser's Signature                     [Signature must
                                          conform exactly
                                          with the name of
                                          the registered
                                          owner on the form
                                          of this Warrant.]

<PAGE>

                                  SCHEDULE "B"
                                  TRANSFER FORM

FOR VALUE RECEIVED, the undersigned hereby sells, transfers and assigns to
(print name of address of transferee)

[Print name and address of transferee]

                                   (Warrants)

[Number of Warrants to be transferred]

represented by the attached Warrant Certificate and does hereby appoint [INSERT]
with full power of substitution to transfer the Warrants on the register
maintained by the Corporation.

The undersigned acknowledges that any transfer of Warrants is subject to the
resale restrictions of the securities legislation in those jurisdictions where
the transferor and transferee are normally resident. The undersigned confirms
that he, she or it has ascertained that exemptions from the relevant prospectus
and registration requirements are available and undertakes to file all necessary
forms with the appropriate bodies, in connection with such transfer.

The signature below must be guaranteed by a Canadian chartered bank or by a
Canadian trust company.

DATED this day of May, 2004.

                                               [Signature of Registered Holder]

[Signature Guarantee]                          [Name of Registered Holder]

NOTICE:  The signature of the registered holder must correspond with
         the name appearing on the face of this Warrant Certificate as
         in every particular without alteration or enlargement or any
         change whatsoever.<PAGE>

                                                                    EXHIBIT 10.4

       ---------------------------------------------------            TO ADVANCE
[Logo] CANADIAN NURSES ASSOCIATION                                   THE QUALITY
       ASSOCIATION DES INFIRMIERES ET INFIRMIERS DU CANADA         OF NURSING IN
                                                                    THE INTEREST
                                                                   OF THE PUBLIC

                                                                           FAIRE
                                                                   PROGRESSER LA
CONFIDENTIAL                                                         QUALITE DES
                                                                           SOINS
                                                                      INFIRMIERS
File: (Med-Emerg)                                                 DANS L'INTERET
                                                                       DU PUBLIC
19 January 2005

Med-Emerg Inc
6711 Mississauga Road, Suite 404
Mississauga, ON, L5N 2W3

Dear Don Ross

This letter will serve as confirmation of the Canadian Nurses Association's
(CNA) engagement of your services to develop health human resource planning
models for Primary Health Care Nurse Practitioners. The services required are
outlined in the attached Description of Services. The general terms of this
agreement are set out in the attached Schedule of General Terms Governing
Outside Contracts dated July 2003.

This contract will come into effect on 01 February 2005 and continue until 25
November 2005. CNA reserves the right to terminate the contract, without penalty
or notice, prior to the completion of the specified term. Should the CNA wish to
cancel this letter of agreement, monies owed to the consultant for work done
prior to the issuance, verbal or otherwise, of a notice of cancellation will be
paid by the CNA upon receipt of an invoice for said work. Reasons for
termination will be provided to the consultant.

Your contact person at CNA will be Lisa Little. You should contact her as
necessary; the minimum requirement is bi-monthly.

Your fee for this project is outlined in Appendix A. Total payment is not to
exceed $ 468,997.50 plus GST. See Appendix B for a fee payment schedule. Each
monthly fee and the final fee is payable upon CNA's acceptance of the stated
deliverable as well as a detailed invoice on/by the date outlined. Your invoice
should be forwarded to the Purchasing Agent at CNA house. It is your
responsibility to make all payments required of self-employed individuals, e.g.,
tax remittances.

In the course of providing services, you may acquire confidential information
and/or documentation with respect to the Canadian Nurses Association. You agree
that all such information and documentation will be kept strictly confidential
and will not be disclosed or communicated in any way during the term of this
agreement or thereafter. Any and all such confidential information and
documentation, including, but not limited to, data acquired throughout the
project, shall remain the sole and exclusive property of the Canadian Nurses
Association and shall be returned to the Canadian Nurses Association upon
termination of this agreement.

                    50 DRIVEWAY OTTAWA ONTARIO CANADA K2P 1E2
       TEL/TEL (613) 237-2133 o 1-800-361-8404 o FAX/TELEC (613) 237-3520
                             o WEB www.cna-aiic.ca

<PAGE>

Med-Emerg International Inc
Page 2
19 January 2005

If during the term, or any renewal of the term, of the agreement, you develop
any confidential information which relates in any way to the Canadian Nurses
Association, or become the author of any work in which copyright may exist, you
agree that copyright of all data, drafts, as well as the final product, shall be
the sole and exclusive property of the Canadian Nurses Association. You also
accept that your name may not appear in any form on the final product and that
CNA retains the right to amend, change or not use the paper at its sole
discretion.

In addition, you agree not to hold yourself out as an agent or representative of
the Canadian Nurses Association OR

With the exception of those cases where CNA has specifically asked you to
represent its views, you agree not to hold yourself out as an agent of CNA.

You further agree that in documents where references are cited, you are
responsible for providing and verifying the accuracy of all references cited, as
well as for verifying the accompanying bibliographic information. In addition,
we will require a hard copy of all articles/papers etc. cited, including hard
copy printouts of documents accessed through the internet. Responsibility for
attaining appropriate copyright permissions lies with you. CNA can provide a
standardized form for this purpose.

We request that your report be submitted in MS Word format either on diskette or
via email attachment.

Would you please indicate your acceptance of these terms by signing and
returning one copy of this letter to Andrea Nault, Human Resources Coordinator
in the enclosed envelope by 24 January 2005. Please provide your GST
registration number below, if appropriate.

We look forward to working with you on this exciting project.

Sincerely

/s/ Lucille Auffrey
-------------------
Lucille Auffrey, RN, MN
Executive Director

Encl.

                                             GST Registration Number 103617049RT

                                             I accept the terms and conditions
                                             outlined above.

                                             Signature         Date

cc: Purchasing Agent
    Human Resources

<PAGE>

                             Description of Services

PURPOSE

To develop health human resource planning models for projecting future supply
and demand for nurse practitioners in primary health care in Canada. The models
will support varying health care delivery models and fulfill the following
criteria:

         o    forecast needs based on population health indicators;
         o    forecast supply based on: inflow (i.e. education, [ number of
              seats, enrollees, graduates], immigration, etc.), current stock,
              retirement, death, immigration, emigration and other factors;
         o    be evidence-based;
         o    respect the legislated scopes of practice of the primary health
              care nurse practitioner;
         o    incorporate evidence on recruitment and retention of nurse
              practitioners;
         o    recognize the various health services delivery models in place
              across the country;
         o    address both urban and rural/remote scenarios;
         o    recognize interprofessional, multidisciplinary collaboration;
         o    build upon the Health Human Resources Conceptual Framework
              (O'Brien-Pallas, Tomblin Murphy, Baumann, & Birch, 2001); and
         o    incorporate outcomes of consultations with federal, provincial and
              territorial governments.

The forecasting models must be demonstrated through the application of regional,
provincial or national data and produce numbers reflecting actual and historical
nurse practitioner supply and projected needs.

SERVICES REQUIRED:

    1.   Med Emerg is responsible for project management, including proper
         management of project finances, timelines, risk management, etc
    2.   Med Emerg is required to plan, host and execute a minimum of two
         workshops with F/P/T governments to seek input and feedback on the
         model development. Costs for travel, accommodation and per diem for Med
         Emerg staff to plan and attend these workshops is the responsibility of
         Med Emerg. Funding for travel and accommodations of other workshop
         participants and facilitator to be provided by CNA.
    3.   Project activities are outlined in the proposed work plan (See Appendix
         C). This work plan will be approved during initial consultations with
         Med Emerg and CNA. It is subject to minor changes that may occur as the
         project unfolds. These changes will be mutually agreed upon, in advance
         where possible, by CNA and Med Emerg, and corresponding changes will be
         made to Appendix B.
    4.   Submission of monthly status reports and interim reports of the
         activities outlined in Appendix B. Receipt and acceptance of these
         reports is tied to the payment schedule.
    5.   Med Emerg and the project team may be required to present to the
         Canadian Nurse Practitioner Initiative HHR Taskforce.
    6.   Med Emerg must seek CNA's approval to publish any article or document
         related to this model development project in the future, even after the
         term of this contract.

DELIVERABLE:
The deliverables of this project include:
    1.   A final report that includes:
         a.  an executive summary
         b.  an outline of the approach used in the model
         c.  the methodology
         d.  detailed environmental scan ( An environmental scan will be
             provided by CNA. Filling

<PAGE>

              pertinent gaps in that scan is the responsibility of Med Emerg.)
         e.  data and data roll up in the form of a summary and a "matrix" that
             identifies the data elements required (including recommended
             measurement and coding standards) and their availability and
             quality. The summary report will provide a justification for each
             of the data elements required, and will be guided by the above
             described conceptual framework developed by the research team.
         f.  detailed analytical framework that provides a systematic approach
             to considering the effects and interactions between a wide range of
             policy levers including but not limited to:

                 i.    Changing the flows of qualified providers entering and
                       leaving the jurisdiction;
                 ii.   Changing the participation rate of existing HHR by
                       changing the rate of retirement from the professions and
                       the rate of loss to other jurisdictions/professions;
                 iii.  Changing the activity rate of existing HHR by changing
                       the distribution of part-time and full-time employment;
                 iv.   Changing the productivity of existing HHR by adopting
                       different methods of service delivery or different mixes
                       of human and non-human resources; and,
                 v.    Changing the efficiency of training programmes by
                       changing the content and length of programmes and rates
                       of loss from programmes.

             The analytical model will be based on explicit recognition that the
             changing population health needs, the changing nature of health
             care provision and the introduction of various health service
             policies can have an impact on planning for NPs. Within the
             confines of available data, consideration will be given to the
             expected future need for services, the ability of the expected
             future stock of nurse practitioners to meet that need, and the
             implications of various health service polices.

         g.  simulation model of supply and need. The analytical framework will
             be used to develop this simulation model represented by the
             mathematical relationships between the various elements of the
             framework. The model will be implemented with the Vensim software
             package, or other software as appropriate. The final simulation
             model, as well as the data inputs, will be made available to CNA to
             assist with ongoing planning. The models will be provided as
             portable tool enabling users to simulate different scenarios, and
             we will provide training in their use. A Vensim Application, or
             Venapp, will be constructed to provide a management flight
             simulator interface for the model.
         h.  scenario development by modelling the implications on NP HHR
             planning under different demand, productivity and scope of practice
             scenarios. The team will involve F/P/T government officials and
             call upon their expertise in providing valuable scenarios for use
             in the simulation. Such officials will be able to inform the team
             on the most likely policies and interventions that could occur not
             only on a national level, but on provincial and regional levels as
             well. This will allow the reporting of the results of the
             simulations runs in a general and, to the extent the data permit,
             local context. This will be done for at least one or more
             provinces, territories, regions or settings, again, within the
             confines of the data made available to the Contractor.
         i.  results of running the model based on scenarios in 'h' above.
         j.  summary reports of workshops hosted by CNA and Med Emerg
         k.  analysis
         1.  conclusion
         m.  recommendations

French translation of the final report is not required.

<PAGE>

    2.   The simulation model as portable tool enabling users to simulate
         different scenarios in the form of the Vensim software with a Vensim
         Application, or Venapp, constructed to provide a management flight
         simulator interface for the model.
    3.   Training to CNA and interested F/P/T governments on simulation model
         use in # 2 above.
    4.   User Manual for simulation model.
    5.   Regular meetings with CNA including at least 3 face-to-face meetings
         over the course of the project and minimum one teleconference per month
         regarding project status.

<PAGE>

Appendix A

--------------------------------------------------------------------------------
  Consulting Fees (see table below)                  $         408,450.00
-------------------------------------------------------------------------------
  Reimbursable Expenses                              $          38,650.00
-------------------------------------------------------------------------------
  NHSRU Biostatistical Support                       $          14,000.00
-------------------------------------------------------------------------------
  Med-Emerg Administration                           $           7,897.50
-------------------------------------------------------------------------------
  MAXIMUM ESTIMATED COST                             $         468,997.50
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                         Consulting Days Per Step
                         Development     Environmental    Development    Model and
                         of Detailed     Scan and Data    of Analytical  Scenario     Running     Report       Total # of
Consultant   Per Diem    Workplan        Roll Up          Framework      Development  the Model   Generation   Days         Total $
------------------------------------------------------------------------------------------------------------------------------------
<S>          <C>          <C>            <C>              <C>            <C>          <C>         <C>          <C>       <C>
Alder        $2,000.00    5              10               5              13           5           8            46        $ 92,000.00
------------------------------------------------------------------------------------------------------------------------------------
Birch        $2,000.00    3              8                10             9            5           3            38        $ 76,000.00
------------------------------------------------------------------------------------------------------------------------------------
O'Brien
Pallas       $2,000.00    3              6                4              9            3           3            28        $ 56,000.00
------------------------------------------------------------------------------------------------------------------------------------
Tomblin
Murphy       $2,000.00    3              13               5              11           3           3            38        $ 76,000.00
------------------------------------------------------------------------------------------------------------------------------------
Zacharias    $2,000.00    2              1                               3                        2            8         $ 16,000.00
------------------------------------------------------------------------------------------------------------------------------------
Sping        $1,250.00    1              7                2              6            7           2            25        $ 31,250.00
------------------------------------------------------------------------------------------------------------------------------------
Ranganathan  $  900.00    7              15               7              18           6           15           68        $ 61,200.00
------------------------------------------------------------------------------------------------------------------------------------
Total Days                24             60               33             69           29          36           251
------------------------------------------------------------------------------------------------------------------------------------
COST PER
PERIOD                    $39,550.00     $98,250.00       $56,800.00     $113,700.00  $46,150.00  $54,000.00             $408,450.00
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

APPENDIX B - revised

<TABLE>

    Deliverable                                    To be Submitted                     Fee $ (plus GST)
-------------------------------------------------------------------------------------------------------------
<S>                                                   <C>                                 <C>
1. Approved Workplan                                  Feb 15, 2005                         46,899.75
-------------------------------------------------------------------------------------------------------------
1. Monthly status report                             March 31, 2005                        66,899.75
2. summary report on environmental scan
   findings
3. materials for first Task Force meeting
   (agenda, presentation and materials for
   workshop # 1)
-------------------------------------------------------------------------------------------------------------
1. monthly status report                             April 30, 2005                         56,899.75
2. summary report of trends/issues and
   matrix on relevant data elements
3. summary report of workshop #1
   analytical framework
-------------------------------------------------------------------------------------------------------------
1. monthly status report                              May 30, 2005                          36,899.75
2. outline of preliminary model
-------------------------------------------------------------------------------------------------------------
1. monthly status report                              June 30, 2005                         46,899.75
2. materials for workshop #2
3. preliminary model
-------------------------------------------------------------------------------------------------------------
4. monthly status report                              July 31, 2005                         46,899.75
5. summary report of workshop #2
6. final draft of model and list of scenarios
-------------------------------------------------------------------------------------------------------------
1. monthly status report                             August 31, 2005                        26,899.75
-------------------------------------------------------------------------------------------------------------
1. monthly status report                           September 30, 2005                       46,899.75
2. preliminary results of simulation
   modelling
-------------------------------------------------------------------------------------------------------------
1. monthly status report                            November 1, 2005                        46,899.75
2. draft final report
-------------------------------------------------------------------------------------------------------------
1. summary report of workshop #3                    November 30, 2005                       46,899.75
2. final report
3. simulation model as portable tool
   enabling users to simulate different
   scenarios in the form of the Vensim
   software with a Vensim Application, or
   Venapp, constructed to provide a
   management flight simulator interface
   for the model.
4. training to CNA and interested F/P/T
   governments on simulation model use
5. User Manual for simulation model.
-------------------------------------------------------------------------------------------------------------
                                                                  TOTAL                   $468,997.50
-------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

Appendix C

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Phase               Task Components                                   Target Dates          Consultant         Days
                                                                                                               (7.5 hrs/day)
-----------------------------------------------------------------------------------------------------------------------------

<S>                 <C>                                               <C>                   <C>                    <C>
Phase I -           Confirmation of the Work Plan                     4 Jan '05 to          Alder                  5
Development         o Collecting documentation                        21 Jan '05
of Detailed         o Review of documents                                                   Birch                  3
Work Plan           o Refining the work plan
                                                                                            O'Brien Pallas         3
                    Steering Committee Meeting                        21 Jan '05
                                                                                            Tomblin Murphy         3
                    o Presentation of conceptual framework
                      and key milestones as identified in the                               Zacharias              2
                      work plan
                                                                                            Wang                   1
                    KEY DELIVERABLE: APPROVED WORK PLAN
                                                                                            Ranganathan            7
-----------------------------------------------------------------------------------------------------------------------------

Phase II -          Environmental Scan                                22 Jan '05 to         Alder                  10
Environmental       o Environmental scan                              15 Mar '05
Scan and Data                                                                               Birch                  8
Roll-Up             KEY DELIVERABLE: SUMMARY REPORT ON
                    FINDINGS                                                                O'Brien Pallas         6

                    Data Roll-Up                                                            Tomblin Murphy         13
                    o Determine data availability
                    o Justification of data elements required                               Zacharias              1

                    KEY DELIVERABLE: SUMMARY REPORT OF                                      Wang                   7
                    TRENDS/ISSUES AND MATRIX ON RELEVANT DATA
                    ELEMENTS                                                                Ranganathan            15

                    Workshop #1                                       28 Feb '05

-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Phase               Task Components                                   Target Dates          Consultant         Days
                                                                                                               (7.5 hrs/day)
-----------------------------------------------------------------------------------------------------------------------------

<S>                 <C>                                               <C>                                          <C>
Phase III -         o Development of analytical framework             16 Mar '05 to         Alder                  5
Development                                                           15 April '05
of Analytical                                                                               Birch                  10
Framework
                    Steering Committee Meeting                        15 April '05          O'Brien Pallas         4

                    KEY DELIVERABLE: ANALYTICAL FRAMEWORK                                   Tomblin Murphy         5

                                                                                            Zacharias             --

                                                                                            Wang                   2

                                                                                            Ranganathan            7
-----------------------------------------------------------------------------------------------------------------------------

Phase IV -        Model Development                                   16 Apr '05 to         Alder                  13
Model and         o Team meeting to plan program model                31 July '05
Scenario            development                                                             Birch                  9
Development       o Develop preliminary model
                                                                                            O'Brien Pallas         9
                  Scenario Development
                  o Finalize program model                                                  Tomblin Murphy         11

                                                                                            Zacharias              3
                  Workshop #2                                         30 Jun '05

                  Model and Scenario Development                                            Wang                   6
                  o Further refinement of models and
                    scenarios                                                               Ranganathan            18

                  KEY DELIVERABLE: FINAL DRAFT OF MODEL
                  AND LIST OF SCENARIOS
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Phase               Task Components                                   Target Dates          Consultant         Days
                                                                                                               (7.5 hrs/day)
-----------------------------------------------------------------------------------------------------------------------------

<S>                 <C>                                               <C>                                          <C>
 Phase V -          o Populate model with available data              1 Aug '05 to 30       Alder                  5
 Running the        o Model factors affecting attrition &             Sep '05
 Model                productivity of professionals                                         Birch                  5
                    o Team meeting to discuss simulation
                      runs                                                                  O'Brien Pallas         3

                    Steering Committee Meeting                        30 Sep '05            Tomblin Murphy         3

                    KEY DELIVERABLE: PRELIMINARY RESULTS OF                                 Zacharias              --
                    SIMULATION MODELING
                                                                                            Wang                   7

                                                                                            Ranganathan            6
-----------------------------------------------------------------------------------------------------------------------------

Phase VI -          Report Generation                                 1 Oct '05 to          Alder                  8
Final Report                                                          Nov 30 '05

                    o Prepare draft report                                                  Birch                  3

                    Workshop #3                                       15 Nov '05            O'Brien Pallas         3

                    o Review and revisions                                                  Tomblin Murphy         3

                    Submission of final report                        30 Nov '05            Zacharias              2

                    KEY DELIVERABLE: FINAL REPORT - ANALYSIS                                Wang                   2
                    AND RECOMMENDATIONS FOR NP RESOURCE
                    PLANNING                                                                Ranganathan            15
-----------------------------------------------------------------------------------------------------------------------------

                    TOTAL                                                                                          251
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

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