Document:

exhibit10-18.htm

    EXHIBIT 10.18

     

    

      FORM
OF SUBSCRIPTION AGREEMENT

      

      Oilsands
Quest Inc.

      800, 326
– 11th Avenue SW

      Calgary,
Alberta, Canada

      T2R
0C5

      

      

      Ladies
and Gentlemen:

      

      The
undersigned (the “Investor”) hereby
confirms and agrees with you as follows:

      

      
        	
                1.  

              	
                This
      Subscription Agreement (this “Agreement”) is
      made as of the date set forth below between Oilsands Quest Inc., a
      Colorado corporation (the “Corporation”)
      and the Investor.

              

      

      

      
        	
                2.  

              	
                The
      Corporation has authorized the sale and issuance of up to — shares
      (the “Securities”) of
      the Corporation’s common stock, $0.001 par value per share (the “Common Stock”)
      for a purchase price of $— per
      share (the “Offering”).  The
      Investor acknowledges that the Corporation may enter into subscription
      agreements in substantially the same form as this Agreement with certain
      other investors.

              

      

      

      
        	
                3.  

              	
                As
      of the Closing (as defined below) and subject to the terms and conditions
      hereof, the Corporation and the Investor agree that the Investor will
      purchase from the Corporation and the Corporation will issue and sell to
      the Investor such number of Securities as is set forth on the signature
      page hereto (the “Signature
      Page”).  The Investor acknowledges that the Offering is
      not a firm commitment underwriting and that there is a minimum offering
      amount.

              

      

      

      
        	
                4.  

              	
                The
      completion of the purchase and sale of the Securities shall occur at a
      closing (the “Closing”) which
      is expected to occur on or about —,
      2009.  At the Closing, (i) the Corporation shall cause its
      transfer agent to release to the Investor the number of Securities being
      purchased by the Investor, and (ii) upon receipt of such Securities,
      the aggregate purchase price for the Securities being purchased by the
      Investor will be delivered by or on behalf of the Investor to the
      Corporation.

              

      

      

      
        	
                5.  

              	
                The
      Offering and issuance of the Securities pursuant to this Agreement have
      not been registered under the U.S. Securities Act of 1933, as amended (the
      “Securities
      Act”).  The Corporation and the Investor will enter into
      a registration rights agreement, dated as of the date hereof (the “Registration Rights
      Agreement”), in substantially the form attached hereto as Exhibit
      A.

              

      

      

      
        	
                6.  

              	
                On
      or prior to the date of the Closing (the “Closing Date”),
      the Corporation shall deliver or cause to be delivered to the Investor the
      following (the “Corporation
      Deliverables”):

              

      

       

      (i)           this
Agreement, duly executed by the Corporation;

       

      (ii)           one
or more stock certificates, evidencing the Securities subscribed for by Investor
hereunder, registered in the name of such Investor or as otherwise set forth on
the Signature Page;
 

       

      (iii)           legal
opinions of one or more counsel to the Corporation (“Corporation
Counsel”), dated as of the Closing Date and covering the matters set
forth in Exhibit B, executed by such counsel and addressed to the
Investor;

       

      (iv)           the
Registration Rights Agreement, duly executed by the Corporation;
and

       

      (v) a
certificate of the Secretary of the Corporation, dated as of the Closing Date,
(a) certifying the resolutions adopted by the Board of Directors of the
Corporation or a duly authorized committee thereof approving the transactions
contemplated by this Agreement and the issuance of the Securities,
(b) certifying the current versions of the articles of incorporation, as
amended, and by-laws, as amended, of the Corporation and (c) certifying as
to the signatures and authority of persons signing this Agreement and related
documents on behalf of the Corporation, in the form attached hereto as
Exhibit C; and

       

      (vi)            the
Compliance Certificate referred to in Section 12(g).

       

      
        
          
          

        

        
          EX-66

          
            

          

        

        
          
          

        

      

      

      
        	
                7.  

              	
                On
      or prior to the date of the Closing, the Investor shall deliver or cause
      to be delivered to the Corporation the following (the “Investor
      Deliverables”):

              

      

       

      (i)           this
Agreement, duly executed by the Investor;

       

      (ii)           the
aggregate purchase price to be paid for the Securities purchased hereunder, in
U.S. dollars and in immediately available funds, in the amount indicated above
the Investor’s name on the Signature Page by wire transfer in accordance with
the Corporation’s written instructions; and

       

      (iii) the
Registration Rights Agreement, duly executed by such Investor.

       

      

      
        	
                8.  

              	
                The
      Corporation hereby makes the following representations, warranties and
      covenants to the Investor:

              

      

      

      (a) (i) The
Corporation is duly incorporated, validly existing and in good standing under
the laws of the State of Colorado and has all requisite corporate authority to
carry on its businesses, as now conducted and as presently proposed to be
conducted by it, and to own its assets.  The Corporation is qualified
to carry on business under the laws of each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification
necessary.

      

      (ii) Each Material Subsidiary (as
defined below) has been duly incorporated, continued or organized, as the case
may be, and is validly existing under the laws of the jurisdiction of its
incorporation, continuance or organization and has all requisite corporate
authority and power to carry on its businesses, as now conducted and as
presently proposed to be conducted by it, and to own its assets.  Each
Material Subsidiary is qualified to carry on business under the laws of each
jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary.  “Material
Subsidiaries” means Oilsands Quest Sask Inc. (“OQI Sask”) and any
other subsidiary of the Corporation, the total assets of which constitute more
than 10% of the consolidated assets of the Corporation as at April 30, 2009 or
the total revenues of which constitute more than 10% of the consolidated
revenues of the Corporation as at April 30, 2009.

      

      (b) The only
subsidiaries of the Corporation are OQI Sask, Township Petroleum Corporation,
Western Petrochemicals Corp., Stripper Energy Services Inc., Oilsands Quest
Technology Inc., 1291329 Alberta Ltd. and 1259882 Alberta Ltd. and the only
Material Subsidiary of the Corporation is OQI Sask.  Except for the
exchangeable shares described in the Corporation’s Annual Report on Form 10-K
for the fiscal year ended April 30, 2009 (the “Form 10-K”), the
Corporation owns, directly or indirectly, all of the capital stock or comparable
equity interests of each subsidiary free and clear of any and all liens, and all
the issued and outstanding shares of capital stock or comparable equity
interests of each subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights to subscribe for or
purchase securities.

      

      (c) The
Corporation has full corporate capacity, power and authority to enter into this
Agreement and the Registration Rights Agreement and to perform its obligations
set out herein and therein (including, without limitation, to create, issue and
sell the Securities), and each of this Agreement and the Registration Rights
Agreement has been duly authorized and executed by the Corporation, and when
delivered in accordance with the terms hereof and thereof, will be a valid and
binding obligation of the Corporation enforceable against the Corporation in
accordance with its terms.  The Corporation’s execution and delivery
of each of this Agreement and the Registration Rights Agreement and the
consummation by it of the transactions contemplated hereby and thereby
(including, but not limited to, the sale and delivery of the Securities) have
been duly authorized by all necessary corporate action on the part of the
Corporation, and no further corporate

      
        
           

        

        
          EX-67

          
            

          

        

        
           

        

      

      action is
required by the Corporation, its Board of Directors or its shareholders in
connection therewith.

      

      (d) The
Corporation shall (i) before 8:30 A.M., New York City time, on —, 2009, issue a
press release (the “Press Release”),
disclosing all material aspects of the transactions contemplated hereby and by
the Registration Rights Agreement and any other material, non-public information
that the Corporation may have provided any Investor at any time prior to the
filing of the Press Release, and (ii) make such other filings and notices
in the manner and time required by the U.S. Securities and Exchange Commission
(the “Commission”) with
respect to the transactions contemplated hereby.  From and after the
issuance of the Press Release, the Investor shall not be in possession of any
material, non-public information regarding the transactions contemplated hereby
and by the Registration Rights Agreement or received from the Corporation or any
of its officers, directors or employees, that is not disclosed in the Press
Release.  The Corporation shall not publicly disclose the name of the
Investor or any affiliate or investment adviser of the Investor, or include the
name of the Investor or any affiliate or investment adviser of the Investor in
any filing with the Commission or any regulatory agency or trading market,
without the prior written consent of the Investor, except (i) as required
by U.S. federal or Canadian securities law (including in connection with any
resale registration statement and accompanying prospectus) or a trading market
on which the securities of the Corporation trade and (ii) to the extent
such disclosure is required by law or trading market regulations, in which case
the Corporation shall provide the Investor with prior notice
thereof.

      

      (e) The
Corporation confirms that neither it nor any of its officers or directors nor
any other person acting on its or their behalf has provided the Investor or its
agents or counsel with any information that it believes constitutes or could
reasonably be expected to constitute material, non-public information except
insofar as the existence, provisions and terms of this Agreement and the
Registration Rights Agreement and the proposed transactions hereunder may
constitute such information, all of which will be disclosed by the Corporation
in the Press Release.  From and after the filing of the Press Release,
except with the express written consent of the Investor and unless prior thereto
the Investor shall have executed a written agreement regarding the
confidentiality and use of such information, neither the Corporation nor any
other person acting on its behalf will provide the Investor or its agents or
counsel with any information that the Corporation believes constitutes material
non-public information.  The Corporation understands and confirms that
the Investor shall rely on the foregoing covenant in this Section 8(e) in
effecting transactions in securities of the Corporation.

      

      (f) The
Corporation has filed all reports, schedules, forms, statements and other
documents required to be filed by it under the U.S. Securities Exchange Act of
1934, as amended (the “Exchange Act”),
including pursuant to Section 13(a) or 15(d) thereof, for the twelve months
preceding the date hereof (the foregoing materials, including the exhibits
thereto and documents incorporated by reference therein, being collectively
referred to herein as the “Exchange Act
Reports”), on a timely basis or has received a valid extension of such
time of filing and has filed any such Exchange Act Reports prior to the
expiration of any such extension, except for the Form 10-K.  As of
their respective filing dates, the Exchange Act Reports complied in all material
respects with the requirements of the Securities Act and the Exchange Act and
the rules and regulations of the Commission promulgated thereunder, and none of
the Exchange Act Reports, when filed, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

      

      (g) The
authorized capital of the Corporation consists of 750 million shares of Common
Stock and 10 million preferred shares, issuable in series, and as of
December 14, 2009 the issued and outstanding capital of the Corporation consists
of 278,119,961 shares of Common Stock, and one Series B Preferred Share,
each of which has been validly issued as a fully paid and non-assessable share
in the capital of the Corporation.  Except as described in the Form
10-K, the Corporation’s Quarterly Report on Form 10-Q for the quarter ended July
31, 2009, as amended,  and the Corporation's Quarterly Report on Form
10-Q for the quarter ended October 31, 2009 (collectively, the “Form 10-Qs”) and any
other periodic reports filed by the Corporation pursuant to Section 13(a) or
15(d) of the Exchange Act since April 30, 2009, no person, firm, corporation or
entity holds any securities convertible or exchangeable into securities of the
Corporation or any subsidiary or has any agreement, warrant, option, right or
privilege (whether pre-emptive or contractual) being or capable of becoming an
agreement, warrant, option or right for the purchase, subscription or issuance
of any unissued securities of the Corporation or any
subsidiary.  There are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of
the Securities.

      

      (h)  The
Securities to be issued and sold by the Corporation hereunder have been duly and
validly created, authorized and reserved and, when issued and delivered against
payment therefor, will be duly and validly issued, fully paid and non-assessable
and free of liens or any pre-emptive or similar rights and will conform to the
description thereof contained in the Corporation’s Registration Statement on
Form 10-SB filed on October 14, 2005, as amended by the Corporation’s
Registration Statement on Form 8-A filed on March 13, 2006 and August 23,
2006.

      
        
           

        

        
          EX-68

          
            

          

        

        
           

        

      

      

      (i) The
consolidated financial statements of the Corporation included in the Form 10-K
(as modified by the Corporation’s Form 8-K filed on September 10, 2009) and the
Form 10-Qs fairly present, in all material respects and in accordance with
generally accepted accounting principles in the United States (“GAAP”) consistently
applied, the financial position and condition, the results of operations, cash
flows and other information purported to be shown therein of the Corporation as
at the dates thereof and for the periods then ended and reflect all assets,
liabilities and obligations (absolute, accrued, contingent or otherwise) of the
Corporation as at the dates thereof required to be disclosed in accordance with
GAAP, and include all adjustments necessary for a fair
presentation.  Such financial statements comply in all material
respects with applicable accounting requirements and the rules and regulations
of the Commission with respect thereto as in effect at the time of
filing.

      

      (j) Since the
date of the latest audited financial statements included in the Form 10-K (as
modified by the Corporation's Form 8-K filed on September 10, 2009), except as
disclosed in subsequent Exchange Act Reports filed prior to the date hereof, (A)
there have been no facts, transactions, events or circumstances which,
individually or in the aggregate, have had or could reasonably be expected to
have a material and adverse effect on the condition (financial or otherwise),
properties, assets, prospects, liabilities, obligations, cash flow, income or
business operations of the Corporation and its subsidiaries (taken as a whole)
(a “Material Adverse
Effect”) and (B) the Corporation has not incurred any material
liabilities (contingent or otherwise) other than (i) trade payables, accrued
expenses and other liabilities incurred in the ordinary course of business
consistent with past practice and (ii) liabilities not required to be reflected
in the Corporation’s financial statements pursuant to GAAP or required to be
disclosed in filings made with the Commission.  Except for the
transactions contemplated by this Agreement, no event, liability or development
has occurred or exists with respect to the Corporation or its subsidiaries or
their respective business, properties, operations or financial condition that
would be required to be disclosed by the Corporation under applicable securities
laws on a registration statement on Form S-1 filed with the Commission relating
to an issuance and sale by the Corporation of Common Stock at the time this
representation is made that has not been publicly disclosed at least one
business day prior to the date that this representation is made.

      

      (k) KPMG LLP
is, and Pannell Kerr Forster was, independent with respect to the Corporation as
required by applicable Canadian Securities Laws and the rules of the NYSE AMEX
and there has not been any reportable disagreement (within the meaning of
Section 4.11 of National Instrument No. 51-102 of the Canadian Securities
Administrators) with the auditors of the Corporation since incorporation of the
Corporation.

      

      (l) The
issued and outstanding shares of Common Stock are, and subject to the approval
of the NYSE AMEX, the Securities will be, listed and posted for trading on the
NYSE AMEX and the Corporation is, and has no reason to believe that it will not
in the foreseeable future continue to be, in material compliance with the
by-laws, rules and regulations of the NYSE AMEX.

      

      (m) Neither
the Corporation nor, to the Corporation’s knowledge, any of its affiliates or
any person acting on its behalf has, directly or indirectly, at any time within
the past six months, made any offers or sales of any Corporation security or
solicited any offers to buy any security under circumstances that would (i)
eliminate the availability of the exemption from registration under Regulation D
under the Securities Act in connection with the offer and sale by the
Corporation of the Securities as contemplated hereby or (ii) cause the offering
of the Securities pursuant to this Agreement to be integrated with prior
offerings by the Corporation for purposes of any applicable law, regulation or
shareholder approval provisions, including, without limitation, under the rules
and regulations of the NYSE AMEX.  The Corporation shall not sell,
offer for sale or solicit offers to buy any security (as defined in
Section 2 of the Securities Act) in a transaction that would be integrated
with the offer or sale of the Securities in a manner that would require
registration under the Securities Act of the sale of the Securities to the
Investor, or that will be integrated with the offer or sale of the Securities
for purposes of the rules and regulations of the NYSE AMEX such that it would
require approval of the Corporation’s shareholders prior to the closing of such
other transaction, unless such shareholder approval is obtained before the
closing of such other transaction.

      

      (n) The
execution, delivery and performance by the Corporation of this Agreement and the
Registration Rights Agreement, including without limitation, the sale and
delivery of the Securities by the Corporation in accordance with the terms
hereof (i) do not and will not (or will not with the giving of notice, the lapse
of time or the happening of any other event or condition) result in a breach or
a violation of, or conflict with or result in a default under (A) any of
the terms or provisions of the articles or by-laws of the Corporation or any
organizational documents of any subsidiaries, (B) any resolution of the
board of directors, (or any committee thereof) or securityholders of the
Corporation, or (C) any judgment, decree, order or award of any court,
governmental body or arbitrator having jurisdiction over the Corporation, or any
agreement, license or permit to which the Corporation is a party; (ii) do not
and will not result in the violation of any law or the rules and regulations of
any self-regulatory organization, including the NYSE AMEX; and (iii) do not and
will not give rise to any lien on or with respect to the properties or assets
now owned or hereafter acquired by the Corporation or the acceleration of or the
maturity of any indebtedness or other liabilities or obligations under any
indenture, mortgage, lease, agreement or

      
        
           

        

        
          EX-69

          
            

          

        

        
           

        

      

      instrument
binding or affecting any of them or any of its properties, except, in each case,
for any conflict, breach, violation or default which is not reasonably likely to
have a material adverse effect on the Corporation’s performance of its
obligations hereunder or the consummation of the transactions contemplated
hereby.

      

      (o) No
consent, approval, authorization, order, registration, filing or qualification
of or with any court or governmental, regulatory or self-regulatory agency or
body or other person is required for the valid authorization, execution,
delivery and performance by the Corporation of this Agreement or the
Registration Rights Agreement or the issuance of the Securities, except for such
consents, approvals, authorizations, registrations, filings or qualifications as
may be required under the Securities Act, state securities or “blue sky” laws,
the Financial Industry Regulatory Authority or in connection with the listing of
the Securities on the NYSE AMEX, which have been or will be obtained or
made.

      

      (p) Each of
the Corporation and its subsidiaries has conducted and is conducting its
business in compliance in all respects with all applicable laws, rules and
regulations of each jurisdiction in which its business is carried on and holds
all valid permits, licenses, registrations, qualifications, consents and
approvals that are required and necessary to enable its business to be carried
on as now conducted and its property and assets to be owned, leased and
operated, except in each case where the failure to be in such compliance or to
hold such permits, licenses, registrations, qualifications, consents and
approvals would not have or could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the Corporation
and its subsidiaries (taken as a whole) and all such permits, licenses,
registrations, qualifications, consents and approvals are in good standing and
none contains any term, provision, condition or limitation which will have or
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect on the Corporation and its subsidiaries (taken as a
whole) and the Corporation is not aware of any fact or matter which would
reasonably be expected to result in the termination of any such permit or
otherwise have or could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the Corporation and its subsidiaries
(taken as a whole).  Neither the Corporation nor any of its
subsidiaries (i) is in default under or in violation of (and no event has
occurred that has not been waived that, with notice or lapse of time or both,
would result in a default by the Corporation or any of its subsidiaries under),
nor has the Corporation or any of its subsidiaries received written notice of a
claim that it is in default under or that it is in violation of, any material
agreement (whether or not such default or violation has been waived) or (ii) is
in violation of any order of which the Corporation has been made aware in
writing of any court, arbitrator or governmental body having jurisdiction over
the Corporation or its properties or assets, except in each case as would not
have or reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

      

      (q) Except as
described in the Exchange Act Reports, there are no actions, suits, proceedings
or inquiries pending or, to the Corporation’s knowledge, threatened against or
affecting the Corporation or any of its Material Subsidiaries at law or in
equity or before or by any federal, provincial, municipal or other governmental
department, commission, board, bureau, agency or instrumentality which, in any
way could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect on the Corporation and its subsidiaries (taken as a
whole) or which affects or may affect the sale of the Securities hereunder or
which would impair the ability of the Corporation to consummate the transactions
contemplated hereby or by the Registration Rights Agreement or to duly observe
and perform any of its covenants or obligations contained in this Agreement or
the Registration Rights Agreement and the Corporation is not aware of any
existing ground on which such action, suit, proceeding or inquiry might be
commenced with any reasonable likelihood of success.  Neither the
Corporation nor any subsidiary, nor to the Corporation’s knowledge, any director
or officer thereof, is or has been the subject of any action involving a claim
of violation of or liability under federal or state securities laws or a claim
of breach of fiduciary duty.  There has not been, and to the
Corporation’s knowledge there is not pending or contemplated, any investigation
by the Commission involving the Corporation or any current or former director or
officer of the Corporation.

      

      (r) Each of
the Corporation and its subsidiaries has good and marketable title to its
property and assets free and clear of all liens and defects that would affect
the value thereof or interfere with the use made or to be made thereof by the
Corporation or such subsidiary, as the case may be, except for such liens and
defects which would not, singly or in the aggregate, result in or reasonably be
expected to result in a Material Adverse Effect on the Corporation or its
subsidiaries (taken as a whole), and each of the Corporation and its
subsidiaries holds all of its leased real or personal property under valid and
enforceable leases with no exceptions that would interfere with the use made or
to be made thereof by the Corporation or such subsidiary, as the case may be,
except for such exceptions which would not, singly or in the aggregate, result
in or reasonably be expected to result in a Material Adverse Effect on the
Corporation as its subsidiaries (taken as a whole), and neither the Corporation
or any of its subsidiaries, as the case may be, has received notice of any claim
of any sort that has been asserted by any person adverse to the rights of the
Corporation or any of its subsidiaries, as the case may be, to the continuing
possession and use of the leased or subleased properties except for such claims
which would not, singly or in the aggregate, result in or reasonably be expected
to result in a Material Adverse Effect on the Corporation or its subsidiaries
(taken as a whole), each of the Corporation and its Material Subsidiaries owns
or leases all such properties as are necessary to its business as currently
conducted or proposed to be conducted.

      
        
           

        

        
          EX-70

          
            

          

        

        
           

        

      

      

      (s) Excepting
out those things and matters which are not material to the Corporation or any of
its Material Subsidiaries, the Corporation and each of its Material Subsidiaries
has duly and on a timely basis filed all tax returns required to be filed by it,
has paid all taxes due and payable by it and has paid all assessments and
re-assessments and all other taxes, governmental charges, penalties, interest
and other fines due and payable by it and which are claimed by any governmental
authority to be due and owing and adequate provision has been made for taxes
payable for any completed fiscal period for which tax returns are not yet
required and there are no agreements, waivers, or other arrangements providing
for an extension of time with respect to the filing of any tax return or payment
of any tax, governmental charge or deficiency by the Corporation or any Material
Subsidiary and there are no actions, suits, proceedings, investigations or
claims or, to the Corporation’s knowledge, threatened or pending against the
Corporation or any Material Subsidiary in respect of taxes, governmental charges
or assessments or any matters under discussion with any governmental authority
relating to taxes, governmental charges or assessments asserted by any such
authority.

      

      (t) The
Corporation and each Material Subsidiary is insured by insurers of recognized
financial responsibly against such losses and risks and in such amounts as are
prudent and customary in the businesses in which it is engaged; all policies of
insurance insuring the Corporation and each Material Subsidiary or its
businesses, assets, employees, officers and directors are in full force and
effect, except where the failure to be in full force and effect would not have
or reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Corporation and its subsidiaries (taken as a whole) or
their assets.

      

      (u) Except to
the extent that any violation or other matter referred to in this subparagraph
does not have or would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect on the Corporation and its subsidiaries
(taken as a whole): (i) the Corporation and each subsidiary is not in violation
of any applicable federal, provincial, state, municipal or local laws,
regulations, orders, government decrees or ordinances with respect to
environmental, health or safety matters (collectively, “Environmental Laws”);
(ii) the Corporation and each subsidiary has operated its business at all times
and has received, handled, used, stored, treated, shipped and disposed of all
contaminants without violation of Environmental Laws; (iii) except as have been
disclosed in the Exchange Act Reports, there have been no spills, releases,
deposits or discharges of hazardous or toxic substances, contaminants or wastes
into the earth, air or into any body of water or any municipal or other sewer or
drain water systems by the Corporation and each subsidiary that have not been
remedied; (iv) no orders, directions or notices have been issued and remain
outstanding pursuant to any Environmental Laws relating to the business or
assets of the Corporation and each subsidiary; (v) the Corporation and each
subsidiary has not failed to

      report to
the proper federal, provincial, municipal or other political subdivision,
government, department, commission, board, bureau, agency or instrumentality,
domestic or foreign (“Government
Authority”) the occurrence of any event which is required to be so
reported by any Environmental Law; and (vi) the Corporation and each subsidiary
holds, or will hold at the required time, all licenses, permits and approvals
required under any Environmental Laws in connection with the operation of its
business and the ownership and use of its assets, all such licenses, permits and
approvals are in full force and effect, and except for notifications and
conditions of general application to assets of the type owned by it and the
Corporation and each subsidiary has not received any notification pursuant to
any Environmental Laws that any work, repairs, constructions or capital
expenditures are required to be made by it as a condition of continued
compliance with any Environmental Laws, or any license, permit or approval
issued pursuant thereto, or that any license, permit or approval referred to
above is about to be reviewed, made subject to limitation or conditions,
revoked, withdrawn or terminated.

      

      (v) Each of
the Corporation and its Material Subsidiaries owns or possesses, or can acquire
on reasonable terms, adequate patents, patent rights, licenses, inventions,
copyrights, know-how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures),
trademarks, service marks and trade names or other intellectual property
(collectively, “Intellectual
Property”) necessary to carry on the business now operated by it and
neither the Corporation nor any subsidiary has received any notice and is not
otherwise aware of any infringement of or conflict with asserted rights of
others with respect to any Intellectual Property or of any facts or
circumstances which would render any Intellectual Property invalid or inadequate
to protect the interest of the Corporation or its subsidiaries therein, and
which infringement or conflict (if the subject of any unfavorable decision,
ruling or finding) or invalidity or inadequacy, singly or in the aggregate,
would result or would reasonably be expected to result in a Material Adverse
Effect on the Corporation or its subsidiaries (taken as a whole).

      

      (w) The
Corporation is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof, will not be required to
register as an “investment company” within the meaning of the Investment Company
Act of 1940, as amended, and the rules and regulations of the Commission
thereunder.

      

      (x) Except as
disclosed in the Exchange Act Reports, the Corporation and each Material
Subsidiary maintains a system of internal accounting controls sufficient to
provide reasonable assurance that in all material respects: (i) transactions are
executed in accordance with management’s general or specific authorization; (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to
maintain accountability for assets; and (iii) access to assets is permitted only
in accordance with management’s general or specific
authorization.

      
        
           

        

        
          EX-71

          
            

          

        

        
           

        

      

      

      (y) Except as
disclosed in the Exchange Act Reports, the Corporation maintains “disclosure
controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act)
that are designed to ensure that information required to be disclosed by the
Corporation in reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified
in the Exchange Act, and that such information is accumulated and communicated
to the Corporation’s management as appropriate to allow timely decisions
regarding required disclosure.  The Corporation has carried out
evaluations of the effectiveness of its disclosure controls and procedures as
required by Rule 13a-15 of the Exchange Act.

      

      (z) The
Corporation has not (i) taken, directly or indirectly, any action designed
to or that could reasonably be expected to cause or result in any stabilization
or manipulation of the price of the Securities or (ii) sold or issued any
securities that would be integrated with the Offering of any of the Securities
pursuant to the Securities Act or the interpretations thereof by the
Commission.

      

      (aa) There is
and has been no failure on the part of the Corporation or any of the
Corporation’s directors or officers, in their capacities as such, to comply with
any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations
promulgated in connection therewith (the “Sarbanes-Oxley Act”),
including Section 402 related to loans and Sections 302 and 906
related to certifications to the extent that the Corporation is or has been
required to comply with the Sarbanes-Oxley Act and such rules.

      

      (bb) No person
or entity will have, as a result of the transactions contemplated by this
Agreement, any valid right, interest or claim against or upon the Corporation or
the Investor for any commission, fee or other compensation pursuant to any
agreement, arrangement or understanding entered into by or on behalf of the
Corporation.

      

      (cc) Assuming
the accuracy of the Investor’s representations and warranties set forth in
Section 9 of this Agreement, no registration under the Securities Act is
required for the offer and sale of the Securities by the Corporation to the
Investor under this Agreement.

      

      (dd) Neither
the Corporation nor any of its subsidiaries, nor to the Corporation’s knowledge,
any directors, officers, employees, agents or other persons acting at the
direction of or on behalf of the Corporation or any of its subsidiaries has, in
the course of its actions for, or on behalf of, the Corporation violated any
applicable law, rule or regulation of any locality with respect to anti-bribery,
including the Foreign Corrupt Practices Act of 1977, as amended.

      

      (ee) Neither
the Corporation nor any subsidiary nor, to the Corporation’s knowledge, any
director, officer, agent, employee, affiliate or person acting on behalf of the
Corporation or any subsidiary is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S. Treasury
Department (“OFAC”); and the
Corporation will not knowingly directly or indirectly use the proceeds of the
sale of the Securities, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity,
towards any sales or operations in Cuba, Iran, Syria, Sudan, Myanmar or any
other country sanctioned by OFAC or for the purpose of financing the activities
of any person currently subject to any U.S. sanctions administered by
OFAC.

      

      (ff) The
operations of each of the Corporation and any subsidiary are and have been
conducted at all times in compliance with the applicable anti-money laundering
statutes of jurisdictions where the Company and its subsidiaries conduct
business, the rules and regulations thereunder and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any applicable
governmental agency (collectively, the “Money Laundering
Laws”) and to the Corporation’s knowledge, no action, suit or proceeding
by or before any court or governmental agency, authority or body or any
arbitrator involving the Corporation and/or any subsidiary with respect to the
Money Laundering Laws is pending or threatened.

      

      (gg) Except as
disclosed in the Exchange Act Reports, the Corporation has not adopted any
stockholder rights plan or similar arrangement relating to accumulations of
beneficial ownership of Common Stock or a change in control of the
Corporation.

      

      (hh) There is
no transaction, arrangement, or other relationship between the Corporation (or
any subsidiary) and an unconsolidated or other off balance sheet entity that is
required to be disclosed by the Corporation in its Exchange Act filings and is
not so disclosed and would have or reasonably be expected to have a Material
Adverse Effect.

      

      (ii) Neither
the Corporation nor any person acting on its behalf has engaged or will engage
in any form of general solicitation or general advertising (within the meaning
of Regulation D under the Securities Act) in connection with any offer or sale
of the Securities.

      

      (jj) The
Corporation is not, and has never been, an issuer identified in Rule 144(i)(1)
under the Securities Act.

      

       

      
        	
                9.  

              	
                The
      Investor hereby makes the following representations, warranties and
      covenants to the Corporation:

              

      

      
        
           

        

        
          EX-72

          
            

          

        

        
           

        

      

       

      

      (a) The
Investor is duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization with the requisite corporate or
partnership power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations
hereunder.  The execution, delivery and performance by the Investor of
the transactions contemplated by this Agreement have been duly authorized by all
necessary corporate or, if the Investor is not a corporation, such partnership,
limited liability company or other applicable like action, on the part of the
Investor.  Each of this Agreement and the Registration Rights
Agreement has been duly executed by the Investor, and when delivered by the
Investor in accordance with the terms hereof, will constitute the valid and
legally binding obligation of the Investor, enforceable against it in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting generally the enforcement of, creditors’ rights and
remedies or by other equitable principles of general application.

       

      (b) The
execution, delivery and performance by the Investor of this Agreement and the
Registration Rights Agreement and the consummation by such the Investor of the
transactions contemplated hereby and thereby will not (i) result in a
violation of the organizational documents of the Investor, (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or
both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Investor is a party, or (iii) result in a violation
of any law, rule, regulation, order, judgment or decree (including federal and
state securities laws) applicable to the Investor, except in the case of clauses
(ii) and (iii) above, for such conflicts, defaults, rights or
violations which would not, individually or in the aggregate, reasonably be
expected to have a material adverse effect on the ability of the Investor to
perform its obligations hereunder.

       

      (c) The
Investor understands that the Securities are “restricted securities” and have
not been registered under the Securities Act or any applicable state securities
law and is acquiring the Securities as principal for its own account and not
with a view to, or for distributing or reselling such Securities or any part
thereof in violation of the Securities Act or any applicable state securities
laws, provided,
however, that by making the representations herein, the Investor does not
agree to hold any of the Securities for any minimum period of time and reserves
the right, subject to the provisions of this Agreement and the Registration
Rights Agreement, at all times to sell or otherwise dispose of all or any part
of such
 Securities pursuant to an
effective registration statement under the Securities Act or under an exemption
from such registration and in compliance with applicable federal and state
securities laws.  The Investor is acquiring the Securities hereunder
in the ordinary course of its business.  The Investor does not
presently have any agreement, plan or understanding, directly or indirectly,
with any person

       

      (d) to
distribute or effect any distribution of any of the Securities (or any
securities which are derivatives thereof) to or through any person or
entity.

       

      

      (e) The
Investor understands that all certificates representing the Securities will bear
a legend substantially as follows until such time as such legend is no longer
required under applicable requirements of the Securities Act, state securities
laws or applicable Canadian securities laws:

       

      “The
securities represented by this certificate have not been registered under the
Securities Act of 1933, as amended (the “Securities Act”), or
the securities laws of any state.  The securities may not be offered,
sold, transferred or otherwise disposed of except (i) pursuant to an effective
registration statement under the Securities Act and applicable state securities
laws, or (ii) pursuant to an applicable exemption from the registration
requirements of the Securities Act and applicable state securities
laws.  Unless permitted under securities legislation, the holder of
this security must not trade the security in Canada before [the date that is 4
months and a day after the distribution date].”

       

       

      (f) The
Investor understands that the Corporation, in its discretion, may cause stop
transfer orders to be placed with its transfer agent with respect to the
certificates for the Securities which are required to bear the legend set forth
above.

       

      (g) At the
time the Investor was offered the Securities, it was, and at the date hereof it
is, an “accredited investor” as defined in Rule 501(a) under the Securities
Act.

       

      (h) The
Investor is not purchasing the Securities as a result of any advertisement,
article, notice or other communication regarding the Securities published in any
newspaper, magazine or similar media or broadcast over television or radio or
presented at any seminar or any other general advertisement.

       

      (i) The
Investor, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be
capable of evaluating the merits and risks of the prospective investment in the
Securities, and has so evaluated the merits and risks of such
investment.  The Investor is able to bear the economic risk of an
investment in the Securities and, at the present time, is able to afford a
complete loss of such investment.

       

      (j) The
Investor acknowledges that it has had the opportunity to review the Exchange Act
Reports and this Agreement and has been afforded (i) the opportunity to ask
such questions as it has deemed necessary of, and to receive answers from,
representatives of the Corporation concerning the terms and conditions of the
offering of the Securities and the merits and risks of investing in the
Securities; (ii) access to information about the Corporation and the
Material Subsidiaries and their respective financial condition, results of
operations,

      
        
           

        

        
          EX-73

          
            

          

        

        
           

        

      

       

      business,
properties, management and prospects sufficient to enable it to evaluate its
investment; and (iii) the opportunity to obtain such additional information
that the Corporation possesses or can acquire without unreasonable effort or
expense that is necessary to make an informed investment decision with respect
to the investment.  Neither such inquiries nor any other investigation
conducted by or on behalf of the Investor or its representatives or counsel
shall modify, amend or affect the Investor’s right to rely on the truth,
accuracy and completeness of the Exchange Act Reports and the Corporation’s
representations and warranties contained in this Agreement.  The
Investor has sought such accounting, legal and tax advice as it has considered
necessary to make an informed decision with respect to its acquisition of the
Securities.

       

      (k) No person
will have, as a result of the transactions contemplated by this Agreement, any
valid right, interest or claim against or upon the Corporation or the Investor
for any commission, fee or other compensation pursuant to any agreement,
arrangement or understanding entered into by or on behalf of the
Investor.

       

      (l) The
Investor has independently evaluated the merits of its decision to purchase
Securities pursuant to this Agreement, and the Investor confirms that it has not
relied on the advice of any other investor’s business and/or legal counsel in
making such decision.  The Investor understands that nothing in this
Agreement or any other materials presented by or on behalf of the Corporation to
the Investor in connection with the purchase of the Securities constitutes
legal, tax or investment advice.  The Investor has consulted such
legal, tax and investment advisors as it, in its sole discretion, has deemed
necessary or appropriate in connection with its purchase of the
Securities.

       

      (m) The
Investor understands that the Securities being offered and sold to it in
reliance on specific exemptions from the registration requirements of U.S.
federal and state securities laws and that the Corporation is relying in part
upon the truth and accuracy of, and the Investor’s compliance with, the
representations, warranties, agreements, acknowledgements and understandings of
the Investor set forth herein in order to determine the availability of such
exemptions and the eligibility of the Investor to acquire the
Securities.

       

      (n) The
Investor acknowledges that the Corporation will have the authority to issue
shares of Common Stock, in excess of those being issued in connection with the
Offering, and that the Corporation may issue additional shares of Common Stock
from time to time.  The issuance of additional shares of Common Stock
may cause dilution of the existing shares of Common Stock and a decrease in the
market price of such existing shares.

       

      (o) The
Investor understands that no U.S. federal or state agency or any other
government or governmental agency has passed on or made any recommendation or
endorsement of the Securities or the fairness or suitability of the investment
in the Securities nor have such authorities passed upon or endorsed the merits
of the offering of the Securities.

       

      (p) If
required by applicable securities legislation, regulations, rules, policies or
orders or by any securities commission, stock exchange or other regulatory
authority, the Investor covenants that it will execute, deliver, file and
otherwise assist the Corporation in filing such reports, undertakings and other
documents with respect to the issue of the Securities.

       

      (q) The
Investor acknowledges that it may not be able to resell the Securities into
Canada except in accordance with limited exemptions under applicable Canadian
securities laws and regulatory policy until expiry of the applicable restricted
period and compliance with the other requirements of applicable
law.

      

      (r) The
Investor represents and warrants that it is purchasing the Securities as
principal for its own account, not for the benefit of any other person, for
investment only and not with a view to the resale or distribution of all or any
of the Securities, it is resident in or otherwise subject to applicable
securities laws of the jurisdiction set out as the “domicile” on the Investor
Signature Page hereof and it is an “accredited investor”, as such term is
defined in National Instrument 45-106 - “Prospectus and Registration Exemptions”
(“NI 45-106”) promulgated under the securities legislation of the provinces of
Canada, it was not created or used solely to purchase or hold securities as an
“accredited investor” as described in paragraph (m) of the definition of
“accredited investor” in NI 45-106 attached hereto as Appendix A.

      

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

      

      (t) The
Investor acknowledges that this Agreement and the Exhibits hereto require the
Investor (or any beneficial investor for whom the Investor is contracting) to
provide certain personal information to the Corporation.  Such
information is being collected by the Corporation for the purposes of completing
the offering of Securities, which includes, without limitation, determining
the

      
        
           

        

        
          EX-74

          
            

          

        

        
           

        

      

      Investor's
(or any beneficial Investor for whom the Investor is contracting) eligibility to
purchase the Securities under applicable securities legislation, preparing and
registering any certificates representing Securities to be issued to the
Investor and completing filings required by any stock exchange or securities
regulatory authority.  Solely in connection with such purposes, the
Investor's (or any beneficial Investor for whom the Investor is contracting)
personal information may be disclosed by the Corporation to: (a) stock exchanges
or securities regulatory authorities, (b) the Corporation's registrar and
transfer agent, and (c) legal counsel to the Corporation.  By
executing this Agreement, the Investor (or any beneficial Investor for whom the
Investor is contracting) consents to the foregoing collection, use and
disclosure of the Investor's (or any beneficial Investor for whom the Investor
is contracting) personal information.  The Investor (or any beneficial
Investor for whom the Investor is contracting) also consents to the filing of
copies or originals of any of the Investor's (or any beneficial Investor for
whom the Investor is contracting) documents delivered in connect with the
Offering as may be required to be filed with any stock exchange or securities
regulatory authority in connection with the transactions contemplated
hereby.  The Investor (on its own behalf and on behalf of any
beneficial investor for whom it is contracting hereunder) further acknowledges
that it has been notified by the Corporation (a) of the requirement to deliver
to the Ontario Securities Commission (the “OSC”) the full name,
residential address and telephone number of the purchaser of the securities, the
number and type of securities purchased, the total purchase price, the exemption
relied upon and the date of distribution; (b) that this information is being
collected indirectly by the OSC under the authority granted to it in securities
legislation; (c) that this information is being collected for the purposes of
the administration and enforcement of the securities legislation of Ontario; and
(d) that the Administrative Assistant to the Director of Corporate Finance can
be contacted at Ontario Securities Commission, Suite 1903, Box 55, 20 Queen
Street West, Toronto, Ontario M5H 3S8, or at (416) 593 8086, regarding any
questions about the OSC's indirect collection of this information.

      

      
        	
                10.  

              	
                (a)           In
      addition to the indemnity provided in the Registration Rights Agreement,
      the Corporation will indemnify and hold the Investor and its directors,
      officers, stockholders, members, partners, employees and agents (and any
      other persons with a functionally equivalent role of a person holding such
      titles notwithstanding a lack of such title or any other title), each
      person who controls the Investor (within the meaning of Section 15 of the
      Securities Act and Section 20 of the Exchange Act), and the directors,
      officers, stockholders, agents, members, partners or employees (and any
      other persons with a functionally equivalent role of a person holding such
      titles notwithstanding a lack of such title or any other title) of such
      controlling person (each, an “Investor
      Party”) harmless from any and all losses, liabilities, obligations,
      claims, contingencies, damages, costs and expenses, including all
      judgments, amounts paid in settlements, court costs and reasonable
      attorneys’ fees and costs of investigation that any such Investor Party
      may suffer or incur as a result of (i) any breach of any of the
      representations, warranties, covenants or agreements made by the
      Corporation in

              

      

      this
Agreement or in the Registration Rights Agreement or (ii) any action instituted
against an Investor Party in any capacity, or any of them or their respective
affiliates, by any stockholder of the Corporation who is not an affiliate of
such Investor Party, with respect to any of the transactions contemplated by
this Agreement.  The Corporation will not be liable to any Investor
Party under this Agreement to the extent, but only to the extent that a loss,
claim, damage or liability is attributable to any Investor Party’s breach of any
of the representations, warranties, covenants or agreements made by such
Investor Party in this Agreement or in the Registration Rights
Agreement.

      

      (b)           Any
Investor Party entitled to indemnification hereunder (the “Indemnified Party”)
agrees to give prompt written notice to the Corporation after the receipt by the
Indemnified Party of any written notice of the commencement of any action, suit,
proceeding or investigation or threat thereof made in writing for which the
Indemnified Party intends to claim indemnification pursuant to this Agreement;
provided, however, that the failure to
so notify the Corporation shall not relieve the Corporation of any liability or obligation
that it may have to the Indemnified Party hereunder (except to the extent that
it shall be finally judicially determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) that the
Corporation has been materially prejudiced or otherwise forfeited substantive
rights or defenses by reason of such failure).  If notice of
commencement of any such action is given to the Corporation as above provided,
the Corporation shall be entitled to participate in and to assume the defense of
such action at its own expense, with counsel chosen by it and reasonably
satisfactory to such Indemnified Party.  The Indemnified Party shall
have the right to employ separate counsel in any such action and participate in
the defense thereof, but the fees and expenses of such counsel shall be paid by
the Indemnified Party unless (i) the Corporation agrees to pay the same, (ii)
the Corporation fails to promptly assume the defense of such action with counsel
reasonably satisfactory to the Indemnified Party or (iii) such parties have been
advised in writing by such counsel that either (x) representation of such
Indemnified Party and the Corporation by the same counsel would be inappropriate
under applicable standards of professional conduct or (y) there may be one or
more legal defenses available to the Indemnified Party which are different from
or additional to those available to the Corporation, in any of such cases, the
Corporation shall not have the right to assume the defense of such action on
behalf of such Indemnified Party, it being understood, however, that the
Corporation shall not be liable for the fees and expenses of more than one
separate firm of attorneys (in addition to any local counsel) for all
similarly-situated Indemnified Parties.  The Corporation shall not be
liable for any settlement entered into without its written consent, which
consent shall not be unreasonably withheld.  The Corporation shall
not, without the consent of such Indemnified Party, effect any settlement of any
pending or threatened proceeding in respect of which such Indemnified Party is a
party and indemnity has been sought hereunder by such Indemnified Party, unless
such settlement includes an

      
        
           

        

        
          EX-75

          
            

          

        

        
           

        

      

      unconditional
release of such Indemnified Party from all liability for claims that are the
subject matter of such proceeding.

      

      
        	
                11.  

              	
                The
      Corporation will use its reasonable best efforts to list the Securities
      for quotation on the NYSE AMEX and maintain the listing of the Securities
      on the NYSE AMEX.

              

      

      

      
        	
                12.  

              	
                The
      obligation of the Investor to acquire the Securities at the Closing is
      subject to the fulfillment to the Investor’s satisfaction, on or prior to
      the Closing Date, of each of the following conditions, any of which may be
      waived by the Investor:

              

      

       

      (a)           The
representations and warranties of the Corporation contained herein shall be true
and correct as of the date when made and as of the Closing Date, as though made
on and as of such date, except for such representations and warranties that
speak as of a specific date.

       

      (b)           The
Corporation shall have performed, satisfied and complied in all material
respects with all covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by it at or prior to the
Closing.

       

      (c)           No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction that prohibits the consummation of any of
the transactions contemplated by this Agreement.

       

      (d)           The
Corporation shall have obtained in a timely fashion any and all consents,
permits, approvals, registrations and waivers necessary for consummation of the
purchase and sale of the Securities, all of which shall be and remain so long as
necessary in full force and effect.

       

      (e)           The
Common Stock (i) shall be designated for quotation or listed on the NYSE
AMEX and (ii) shall not have been suspended, as of the Closing Date, by the
Commission or the NYSE AMEX from trading on the NYSE AMEX nor shall suspension
by the Commission or the NYSE AMEX have been threatened, as of the Closing Date,
either (A) in writing by the Commission or the NYSE AMEX or (B) by
falling below the minimum listing maintenance requirements of the NYSE
AMEX.  The Corporation shall have obtained approval of the NYSE AMEX
to list the Securities.

       

      (f)           The
Corporation shall have delivered the Corporation Deliverables in accordance with
Section 6.

       

      (g)           The
Corporation shall have delivered to the Investor a certificate, dated as of the
Closing Date and signed by its Chief Executive Officer or its Chief Financial
Officer, dated as of the Closing Date, certifying to the fulfillment of the
conditions specified in Sections 12(a) and (b) in the form attached
hereto as Exhibit D.

      
        
           

        

        
          EX-76

          
            

          

        

        
           

        

      

       

      

      
        	
                13.  

              	
                The
      Corporation’s obligation to sell and issue the Securities at the Closing
      is subject to the fulfillment to the satisfaction of the Corporation, on
      or prior to the Closing Date, of each of the following conditions, any of
      which may be waived by the
Corporation:

              

      

       

      (a)           The
representations and warranties made by the Investor in Section 9 hereof
shall be true and correct as of the date when made, and as of the Closing Date
as though made on and as of such date, except for representations and warranties
that speak as of a specific date.

       

      (b)           The
Investor shall have performed, satisfied and complied in all material respects
with all covenants, agreements and conditions required by this Agreement to be
performed, satisfied or complied with by the Investor at or prior to the Closing
Date.

       

      (c)           No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction that prohibits the consummation of any of
the transactions contemplated by this Agreement.

       

      (d)           The
Corporation shall have obtained in a timely fashion any and all consents,
permits, approvals, registrations and waivers necessary for consummation of the
purchase and sale of the Shares, all of which shall be and remain so long as
necessary in full force and effect.

       

      

      (e)           The
Investor shall have delivered its Investor Deliverables in accordance with
Section 7.

      

      
        	
                14.  

              	
                Notwithstanding
      any investigation made by any party to this Agreement, all covenants,
      agreements, representations and warranties made by the Corporation and the
      Investor herein will survive the execution of this Agreement, the delivery
      to the Investor of the Securities being purchased and the payment
      therefor.

              

      

      

      
        	
                15.  

              	
                This
      Agreement may not be modified or amended except pursuant to an instrument
      in writing signed by the Corporation and the
  Investor.

              

      

      

      
        	
                16.  

              	
                In
      case any provision contained in this Agreement should be invalid, illegal
      or unenforceable in any respect, the validity, legality and enforceability
      of the remaining provisions contained herein will not in any way be
      affected or impaired thereby.

              

      

      

      
        	
                17.  

              	
                This
      Agreement will be governed by, and construed in accordance with, the
      internal laws of the State of New York, without giving effect to the
      principles of conflicts of law that would require the application of the
      laws of any other jurisdiction.

              

      

      

      
        	
                18.  

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

              

      

      

      
        	
                19.  

              	
                The
      Investor acknowledges and agrees that such Investor’s receipt of the
      Corporation’s counterpart to this Agreement shall constitute written
      confirmation of the Corporation’s agreement to sell Securities to such
      Investor.  No federal or state agency or authority has made any
      finding or determination as to the fairness of the terms of the Offering
      nor any recommendation or endorsement of the Securities.  Any
      representation to the contrary is a criminal offense.  In making
      an investment decision, Investors must rely on their own examination of
      the Corporation and the terms of the Offering, including the merits and
      risks involved.

              

      

      

      
        	
                20.  

              	
                The
      obligations of the parties hereunder are subject to all required
      regulatory approvals being
obtained.

              

      

       

      
        	
                21.  

              	
                The
      restrictive legend set forth in Section 9(d) above shall be removed and
      the Corporation shall issue a certificate without such restrictive legend
      or any other restrictive legend to the holder of the applicable Securities
      upon which it is stamped or issue to such holder by electronic delivery at
      the applicable balance account at the Depository Trust Company (“DTC”), if (i)
      such Securities are registered for resale under the Securities Act, (ii)
      such Securities are sold or transferred pursuant to Rule 144, or (iii)
      such Securities are eligible for sale under Rule 144, without the
      requirement for the Corporation to be in compliance with the current
      public information required under Rule 144 as to such Securities and
      without volume or manner-of-sale restrictions.  Following the
      earlier of (i) the effective date of a registration statement covering the
      resale of the Securities or (ii) Rule 144 becoming available for the
      resale of the Securities, without the requirement for the Corporation to
      be in compliance with the current public information required under Rule
      144 as to the Securities and without volume or manner-of-sale
      restrictions, the Corporation shall instruct its transfer agent to remove
      the legend from the Securities and shall cause its counsel to issue any
      legend removal opinion required by the transfer agent.  Any fees
      (with respect to the transfer agent, Corporation counsel or otherwise)
      associated with the issuance of such opinion or the removal of such legend
      shall be borne by the Corporation.  If a legend is no longer
      required pursuant to the foregoing, the Corporation will no later than
      three (3) business days following the delivery by the Investor to the
      Corporation or the transfer agent (with notice to the Corporation) of a
      legended certificate or instrument representing such Securities (endorsed
      or with stock powers attached, signatures guaranteed, and otherwise in
      form necessary to affect the reissuance and/or transfer) deliver or cause
      to be delivered to the Investor a certificate or instrument (as the case
      may be) representing such Securities that is free from all restrictive
      legends.  Certificates for Securities free from
    all

              

      

       

      
        
           

        

        
          EX-77

          
            

          

        

        
           

        

      

      restrictive
legends may be transmitted by the transfer agent to the Investor by crediting
the account of the Investor’s prime broker with DTC as directed by the
Investor.

       

      
        	
                22.  

              	
                In
      order to enable the Investor to sell the Securities under Rule 144 of the
      Securities Act, for a period of one year from the Closing, the Corporation
      shall timely file (or obtain extensions in respect thereof and file within
      the applicable grace period) all reports required to be filed by the
      Corporation after the date hereof pursuant to the Exchange
      Act.  During such one year period, if the Corporation is not
      required to file reports pursuant to such laws, it will prepare and
      furnish to the Investor and make publicly available the information
      described in Rule 144(c)(2), if the provision of such information will
      allow resales of the Securities pursuant to Rule
  144.

              

      

       

      
        	
                23.  

              	
                The
      Corporation agrees to timely file a Form D with respect to the Securities
      as required under Regulation D.  The Corporation, on or before
      the Closing Date, shall take such action as the Corporation shall
      reasonably determine is necessary in order to obtain an exemption for or
      to qualify the Securities for sale to the Investor at the Closing pursuant
      to this Agreement under applicable securities or “blue sky” laws of the
      states of the United States (or to obtain an exemption from such
      qualification).  The Corporation shall make all filings and
      reports relating to the offer and sale of the Securities required under
      applicable securities or “blue sky” laws of the states of the United
      States following the Closing Date.

              

      

       

      
        	
                24.  

              	
                Unless
      this Agreement is terminated pursuant to Section 25, the Corporation shall
      reimburse the Investor for all legal fees and expenses incurred in
      connection with this Agreement (up to a maximum of $25,000), which amount
      shall be paid directly by the Corporation at the
      Closing.  Except as set forth in this Section 24, the
      Corporation and the Investor shall each pay the fees and expenses of their
      respective advisers, accountants and other experts, if any, and all other
      expenses incurred by such party in connection with the negotiation,
      preparation, execution, delivery and performance of this
      Agreement.  The Corporation shall pay all transfer agent fees,
      stamp taxes and other taxes and duties levied in connection with the sale
      and issuance of the Securities to the
Investor.

              

      

       

      
        	
                25.  

              	
                This
      Agreement may be terminated and the sale and purchase of the Securities to
      the Investor abandoned at any time prior to the Closing by either the
      Corporation or the Investor upon written notice to the other, if the
      Closing has not been consummated on or prior to 5:00 p.m., New York City
      time, on the thirtieth (30th)
      day following the date of this Agreement; provided, however, that the
      right to terminate this Agreement hereunder shall not be available to any
      person whose failure to comply with its obligations under this Agreement
      has been the cause of or resulted in the failure of the Closing to occur
      on or before such time.  Nothing in this Section shall be deemed
      to release any party from any liability for any breach by such party of
      the terms and provisions of this Agreement or to impair the right of any
      party to compel specific performance by any other party of its obligations
      under this Agreement.  Upon a termination in accordance with
      this Section, the Corporation and the Investor shall not have any further
      obligation or liability (including arising from such termination) to the
      other.

              

      

       

      
        	
                26.  

              	
                The
      obligations of each Investor under their respective subscription
      agreements and the Registration Rights Agreement are several and not joint
      with the obligations of any other Investor, and no Investor shall be
      responsible in any way for the performance of the obligations of any other
      Investor under any such agreement.  The decision of each
      Investor to purchase securities pursuant to their respective subscription
      agreements has been made by such Investor independently of any other
      Investor.  Nothing contained herein or in any other subscription
      agreement or in the Registration Rights Agreement, and no action taken by
      any Investor pursuant thereto, shall be deemed to constitute the Investors
      as a partnership, an association, a joint venture or any other kind of
      entity, or create a presumption that the Investors are in any way acting
      in concert or as a group with respect to such obligations or the
      transactions contemplated by the subscription agreements or the
      Registration Rights Agreement.  Each Investor acknowledges that
      no other Investor has acted as agent for such Investor in connection with
      making its investment their respective subscription agreements and that no
      Investor will be acting as agent of such Investor in connection with
      monitoring its investment in the Securities or enforcing its rights under
      the subscription agreements or the Registration Rights
      Agreement.  Each Investor shall be entitled to independently
      protect and enforce its rights, including without limitation the rights
      arising out of its subscription agreement or out of the Registration
      Rights Agreement, and it shall not be necessary for any other Investor to
      be joined as an additional party in any proceeding for such
      purpose.

              

      

       

      

       

      [The
remainder of this page is intentionally left blank]

      
        
           

        

        
          EX-78

          
            

          

        

        
           

        

      

      INVESTOR
SIGNATURE PAGE

       

      

      Number of
Securities:                                                             

      

      Purchase
Price Per Security: $      
                    
              

      

      Aggregate
Purchase Price: $     
                   
                

      

      Please
confirm that the foregoing correctly sets forth the agreement between us by
signing in the

      space
provided below for that purpose.

      

      Dated as
of:                     ,
2009

      

      INVESTOR

      

      

      By:_______________________________

           Name:

           Title:

      

      Name in
which Securities are to be registered:                     

      

      Mailing
Address:                 _______________________________

      _______________________________

      _______________________________

      

      Taxpayer
Identification Number:                     

      

      Domicile:

      

      Address
for
Notice:            
_______________________________

      _______________________________

      _______________________________

      Facsimile
No.:

      E-mail
Address:

      Attention:

      

      Agreed
and Accepted this ___ day of _________, 2009:

      

      

      OILSANDS
QUEST INC.

      

      

      By:_______________________________

           Name:

           Title:

      
        
           

        

        
          EX-79

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      

       

      Form of
Registration Rights Agreement

       

      

       

      EXHIBIT
B

       

      Form of
Opinion of Corporation Counsel*

       

      
        	
                1.  

              	
                The
      Corporation is validly existing as a corporation in good standing under
      the laws of the State of Colorado.

              

      

       

      
        	
                2.  

              	
                The
      Corporation has the corporate power and authority to execute and deliver
      and to perform its obligations under the Subscription Agreement,
      including, without limitation, to issue the Securities under the
      Subscription Agreement.

              

      

       

      
        	
                3.  

              	
                Each
      of the Subscription Agreement and the Registration Rights Agreement has
      been duly authorized, executed and delivered by the Corporation and,
      assuming due authorization, execution and delivery by the Investor (to the
      extent they are a party), each of the Subscription Agreement and the
      Registration Rights Agreement constitutes a valid and binding agreement of
      the Corporation, enforceable against the Corporation in accordance with
      its terms.

              

      

       

      
        	
                4.  

              	
                The
      execution and delivery by the Corporation of each of the Subscription
      Agreement and the Registration Rights Agreement and the performance by the
      Corporation of its obligations under such agreements, including its
      issuance and sale of the Securities, do not and will not: (a) require any
      consent, approval, license or exemption by, order or authorization of, or
      filing, recording or registration by the Corporation with any federal or
      state governmental authority, except (1) as may be required by federal
      securities laws with respect to the Corporation’s obligations under the
      Registration Rights Agreement, (2) the filings required in accordance with
      Section 8(d) of the Subscription Agreement, (b) violate any federal or
      state statute, rule or regulation, or any rule or regulation of the NYSE
      AMEX, or any court order, judgment or decree, if any, listed in Exhibit A
      hereto, which Exhibit lists all court orders, judgments and decrees that
      the Corporation has certified to us are applicable to it, (c) result in
      any violation of the Articles of Incorporation, as amended, or Bylaws, as
      amended, of the Corporation or (d) result in a breach of, or constitute a
      default under, any contract of the Corporation that was filed as an
      exhibit to the SEC Reports pursuant to Item 601 of Regulation
      S-K.

              

      

       

      
        	
                5.  

              	
                Assuming
      the accuracy of the representations, warranties and compliance with the
      covenants and agreements of the Investor and the Corporation contained in
      the Subscription Agreement, it is not necessary, in connection with the
      offer, sale and delivery of the Securities to the Investor to register the
      Securities under the Securities
Act.

              

      

       

      
        	
                6.  

              	
                The
      Securities being delivered to the Investor pursuant to the Subscription
      Agreement have been duly and validly authorized and, when issued,
      delivered and paid for as contemplated in the Subscription Agreement, will
      be duly and validly issued, fully paid and non-assessable, and free of any
      preemptive right or similar rights contained in the Corporation’s Articles
      of Incorporation, as amended, or Bylaws, as
  amended.

              

      

       

      

      *  The
opinion letter of Corporation Counsel will be subject to customary limitations
and carveouts.

       

      
        
           

        

        
          EX-80

          
            

          

        

        
           

        

      

      EXHIBIT
C

       

       

      Form of
Secretary’s Certificate

      

      The
undersigned hereby certifies that he is the duly elected, qualified and acting
Secretary of Oilsands Quest Inc., a Colorado corporation (the “Company”), and that as such
he is authorized to execute and deliver this certificate in the name and on
behalf of the Company and in connection with the Subscription Agreement, dated
as of __________, 2009, by and among the Company and the investors party thereto
(the “Subscription
Agreement”), and further certifies in his official capacity, in the name
and on behalf of the Company, the items set forth below.  Capitalized
terms used but not otherwise defined herein shall have the meaning set forth in
the Subscription Agreement.

       

      
        	
                1.  

              	
                Attached
      hereto as Exhibit A is a
      true, correct and complete copy of the resolutions duly adopted by the
      Board of Directors of the Company at a meeting held on [_______],
      2009.  Such resolutions have not in any way been amended,
      modified, revoked or rescinded, have been in full force and effect since
      their adoption to and including the date hereof and are now in full force
      and effect.

              

      

       

      
        	
                2.  

              	
                Attached
      hereto as Exhibit B is a
      true, correct and complete copy of the Articles of Incorporation of the
      Company, together with any and all amendments thereto currently in effect,
      and no action has been taken to further amend, modify or repeal such
      Articles of Incorporation, the same being in full force and effect in the
      attached form as of the date
hereof.

              

      

       

      
        	
                3.  

              	
                Attached
      hereto as Exhibit C is a
      true, correct and complete copy of the Amended and Restated Bylaws of the
      Company and any and all amendments thereto currently in effect, and no
      action has been taken to further amend, modify or repeal such Amended and
      Restated Bylaws, the same being in full force and effect in the attached
      form as of the date hereof.

              

      

       

      
        	
                4.  

              	
                Each
      person listed below has been duly elected or appointed to the position(s)
      indicated opposite his name and is duly authorized to sign the
      Subscription Agreement and the Registration Rights Agreement on behalf of
      the Company, and the signature appearing opposite such person’s name below
      is such person’s genuine signature.

              

      

       

      

      
        	
                Name

              	 	
                Position

              	 	
                Signature

                 

              
	 
      	 	 
      	 	
                _________________________

              
	 
      	 	 
      	 	
                 

                _________________________

              
	 
      	 
      	 	 
      

      

      

      
        
           

        

        
          EX-81

          
            

          

        

        
           

        

      

      

      IN
WITNESS WHEREOF, the undersigned has hereunto set his hand as of this ___ day of
__________, 2009.

       

      

      

      [_____________]

      Secretary

      

      

      I,
[_____________], Chief Financial Officer, hereby certify that [_____________] is
the duly elected, qualified and acting Secretary of the Company and that the
signature set forth above is his true signature.

       

      

      

      
        	
                 
      

              	
                [______________]

              

      

      
        	
                 
      

              	
                Chief
      Financial Officer

              

      

      

      

      

      
        
           

        

        
          EX-82

          
            

          

        

        
           

        

      

       

      EXHIBIT
D

       

      Form of
Officer’s Certificate

       

      

      The
undersigned, the Chief Financial Officer of Oilsands Quest Inc., a Colorado
corporation (the “Corporation”), pursuant to
Section 12(g) of the Subscription Agreement, dated as of _______, 2009, by and
among the Corporation and the investors signatory thereto (the “Subscription Agreement”),
hereby represents, warrants and certifies as follows (capitalized terms used but
not otherwise defined herein shall have the meaning set forth in the
Subscription Agreement):

      

      
        	
                 
      

              	
                1.

              	
                The
      representations and warranties of the Corporation contained in the
      Subscription Agreement are true and correct as of the date when made and
      as of the Closing Date, as though made on and as of such date, except for
      such representations and warranties that speak as of a specific
      date.

              

      

      

      
        	
                 
      

              	
                2.

              	
                The
      Corporation has performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Subscription Agreement to be performed, satisfied or complied with by it
      at or prior to the Closing.

              

      

      

      

      IN WITNESS WHEREOF, the
undersigned has executed this certificate this ___ day of _________,
2009.

      

      

      

      ___________________________

      [__________]

      Chief
Financial Officer

      
        
           

        

        
          EX-83

          
            

          

        

        
           

        

      

      APPENDIX
A

       

      Accredited
Investor   (defined in NI 45-106) means:

       

      
        	
                (a) 

                 

              	
                a
      Canadian financial institution, or a Schedule III bank;
  or

              
	
                (b) 

                 

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

              
	
                (c) 

                 

              	
                a
      subsidiary of any person referred to in paragraphs (a) or (b), if the
      person owns all of the voting securities of the subsidiary, except the
      voting securities required by law to be owned by directors of that
      subsidiary; or

              
	
                (d) 

                 

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

              
	
                (e) 

                 

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

              
	
                (f) 

                 

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

              
	
                (g) 

                 

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

              
	
                (h) 

                 

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

              
	
                (i) 

                 

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

              
	
                (j) 

                 

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

              
	
                (k) 

                 

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

              

      

      
        
           

        

        
          EX-84

          
            

          

        

        
           

        

      

      

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

                 

              
	
                (l) 

                 

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

              
	
                (m) 

                 

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

              
	
                (n) 

                 

              	
                an
      investment fund that distributes or has distributed its securities only
      to

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

                 

              
	 
      	
                (ii) a
      person that acquires or acquired securities in the circumstances referred
      to in sections 2.10 [minimum amount investment] or 2.19 [additional
      investment in investment funds] of NI 45-106, or

                 

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

                 

              
	
                (o) 

                 

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

              
	
                (p) 

                 

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

              
	
                (q) 

                 

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

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

                 

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

                 

              
	
                (r) 

                 

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

              

      

      
        
           

        

        
          EX-85

          
            

          

        

        
           

        

      

      

      
        	
                (s) 

                 

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

              
	
                (t) 

                 

              	
                a
      person in respect of which all of the owners of interests, direct,
      indirect or beneficial, except the voting securities required by law to be
      owned by directors, are persons that are accredited investors (as defined
      in NI 45-106); or

              
	
                (u) 

                 

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

              
	
                (v) 

                 

              	
                a
      person that is recognized or designated by the securities regulatory
      authority or, except in Ontario and Québec, the regulator as an accredited
      investor

              

      

      

       

      For
the purposes hereof and the Subscription Agreement:

       

      “affiliate” means an issuer
connected with another issuer because

       

      
        	
                (b)  

              	
                one
      of them is the subsidiary of the other,
or

              

      

       

      
        	
                (c)  

              	
                each
      of them is controlled by the same
person;

              

      

       

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

       

      “Canadian financial
institution” means

       

      
        	
                (d)  

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

              

      

       

      
        	
                (e)  

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

              

      

       

      “director” means

       

      
        	
                (f)  

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

              

      

       

      
        	
                (g)  

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

              

      

       

      “eligibility adviser”
means

       

      
        
           

        

        
          EX-86

          
            

          

        

        
           

        

      

      

       

      
        	
                 
      

              	
                (a)

              	
                a
      person that is registered as an investment dealer and authorized to give
      advice with respect to the type of security being distributed,
      and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                in
      Saskatchewan or Manitoba, also means a lawyer who is a practicing member
      in good standing with a law society of a jurisdiction of Canada or a
      public accountant who is a member in good standing of an institute or
      association of chartered accountants, certified general accountants or
      certified management accountants in a jurisdiction of Canada provided that
      the lawyer or public accountant must
not:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                have
      a professional, business or personal relationship with the issuer, or any
      of its directors, executive officers, founders, or control persons,
      and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                have
      acted for or been retained personally or otherwise as an employee,
      executive officer, director, associate or partner of a person that has
      acted for or been retained by the issuer or any of its directors,
      executive officers, founders or control persons within the previous 12
      months;

              

      

       

      “executive officer” means, for
an issuer, an individual who is

       

      
        	
                (h)  

              	
                a
      chair, vice-chair or president,

              

      

       

      
        	
                (i)  

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

              

      

       

      
        	
                (j)  

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

              

      

       

      “financial assets”
means

       

      
        	
                (k)  

              	
                cash,

              

      

       

      
        	
                (l)  

              	
                securities,
      or

              

      

       

      
        	
                (m)  

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

              

      

       

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

       

      “founder” means, in respect of
an issuer, a person who,

       

      
        	
                (n)  

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

              

      

       

      
        
           

        

        
          EX-87

          
            

          

        

        
           

        

      

      

       

      
        	
                (o)  

              	
                at
      the time of the distribution or trade is actively involved in the business
      of the issuer;

              

      

       

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

       

      “individual” means a natural
person, but does not include

       

      
        	
                (p)  

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

              

      

       

      
        	
                (q)  

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

              

      

       

      “investment fund” means a
mutual fund or a non-redeemable investment fund, and, for greater certainty in
British Columbia, includes an employee venture capital corporation that does not
have a restricted constitution, and is registered under Part 2 of the Employee
Investment Act (British Columbia), R.S.B.C. 1996 c. 112, and whose business
objective is making multiple investments and a venture capital corporation
registered under Part 1 of the Small Business Venture Capital
Act (British Columbia), R.S.B.C. 1996 c.429 whose business objective is
making multiple investments;

       

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

       

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

       

      “mutual fund” has the meaning
ascribed to it under the securities legislation of the local
jurisdiction;

       

      “non-redeemable investment
fund” means an issuer,

       

      
        	
                (r)  

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

              

      

       

      
        	
                (s)  

              	
                that
      does not invest:

              

      

       

      
        	
                (i)  

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

              

      

       

      
        	
                (ii)  

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

              

      

       

      
        
           

        

        
          EX-88

          
            

          

        

        
           

        

      

       

      
        	
                (t)  

              	
                that
      is not a mutual fund.

              

      

       

      “person” includes

       

      
        	
                (u)  

              	
                an
      individual,

              

      

       

      
        	
                (v)  

              	
                a
      corporation,

              

      

       

      
        	
                (w)  

              	
                a
      partnership, trust, fund and an association, syndicate, organization or
      other organized group of persons, whether incorporated or not,
      and

              

      

       

      
        	
                (x)  

              	
                an
      individual or other person in that person's capacity as a trustee,
      executor, administrator or personal or other legal
      representative;

              

      

       

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

       

      “related liabilities”
means

       

      
        	
                (y)  

              	
                liabilities
      incurred or assumed for the purpose of financing the acquisition or
      ownership of financial assets, or

              

      

       

      
        	
                (z)  

              	
                liabilities
      that are secured by financial
assets;

              

      

       

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

       

      “spouse” means an individual
who,

       

      
        	
                (aa)  

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

              

      

       

      
        	
                (bb)  

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

              

      

       

      
        	
                (cc)  

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

              

      

       

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

       

      Control

       

      A person
(first person) is considered to control another person (second person)
if

       

      
        	
                (dd)  

              	
                the
      first person beneficially owns or, directly or indirectly, exercises
      control or direction over securities of the second person carrying votes
      which, if exercised, would entitle the first person to elect a majority of
      the directors of the second person, unless that first person holds the
      voting securities only to secure an
obligation,

              

      

       

      
        	
                (ee)  

              	
                the
      second person is a partnership, other than a limited partnership, and
      first person holds more than 50% of the interests of the partnership,
      or

              

      

       

      
        	
                (ff)  

              	
                the
      second person is a limited partnership and the general partner of the
      limited partnership is the first
person.

              

      

       

      All monetary references are in Canadian
Dollars.

       

      
        
           

        

        
          EX-89whdi8k20100119ex10-1.htm

    
      

      

    

    
      Exhibit
10.1

    

    

    

     

    January
13, 2010

    

    

    Dan
Fleyshman

    

    

    

    Dear
Dan:

    

    Who’s
Your Daddy, Inc. (the “Company”) has certain outstanding indebtedness that was
created during the time you were an Executive Officer and/or Director of the
Company.  This indebtedness is detailed below:

    

    
      	
              Unpaid
      payroll taxes – Federal (excludes penalties &
interest)

            	 	$	108,882	 
	
              Unpaid
      payroll taxes – State (excludes penalties & interest)

            	 	 	65,114	 
	
              Settlement
      with Who’s Ya Daddy, Inc.

            	 	 	100,000	 
	
              Settlement
      with Defiance U.S.A., Inc. (including interest)

            	 	 	217,000	 
	
              Total

            	 	$	490,996	 
	 
      	 	 	 	 
	
              In
      addition to the amounts shown above, penalties and interest for Federal
      and State unpaid payroll taxes currently total approximately $75,000 and
      continue to accrue.

            	 

    

    

    The
Company is also indebted to you in the amount of $286,764.55 consisting of
$226,557.62 for loans and advances made by you and $60,206.93 for services
provided by Girls Next Door, Inc. in 2007.  It is agreed that no
accrued but unpaid salary is due to you.

    

    This
significant indebtedness noted above has made it extremely difficult to raise
capital and to move the Company forward.  In order to relieve the
Company of some of its debt burden, you have agreed to the
following:

    

    
      	
              1. 
      

            	
              Because
      you have attempted to collect the amounts owed to you described above and
      because the Company has been unable to pay, and continues to be unable to
      pay such amounts, the Company will not repay this debt
      you.  Included in the $226,557.62 is the amount of $96,125.00
      originally recorded as owed to Renee Milton, which was reclassified
      effective June 30, 2009 in accordance with your instructions, as being
      owed to you.

            

    

    
 

    
      
        
          Who’s
Your Daddy, Inc., 26381 Crown Valley Parkway, #230, Mission Viejo, CA
92690

          Phone
949.582.5933 ... Fax 949.582.5913

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                2. 
      

              	
                You
      will assign to the Company the unpledged common shares of stock of the
      Company that are held in your name.  This currently consists of
      a total of 817,229 shares (certificate #4081 for 715,000 shares and #4082
      for 102,229 shares) (the “Transferred Stock”).  It is understood
      that 157,563 shares held in your name are pledged to Defiance U.S.A., Inc.
      as collateral for amounts owed to them.  The Company will use
      its best efforts to sell the Transferred Stock and use the proceeds, net
      of costs of creditor settlement (including legal costs) and stock
      liquidation, to repay debt in the following
  order:

              

      

       

    

    
      	
               
      

            	
              a. 
      Debt for unpaid payroll taxes

            

    

    
      	
               
      

            	
              b. 
      Debt to Who’s Ya Daddy, Inc.

            

    

    
      	
               
      

            	
              c. 
      Debt to Defiance U.S.A., Inc./Christopher
Wicks

            

    

    

    The
Company cannot assure you that it will be successful in liquidating any of the
Transferred Stock or that, if successful, the net proceeds of the liquidation
will be sufficient to repay any of the indebtedness referred to
above.  As a result, this letter in no way constitutes a release by
the Company of any liability you may have for any of this
indebtedness.  In the event that the Company is unsuccessful in
liquidating any of the Transferred Stock by August 1, 2010, then the
non-liquidated shares shall be returned to you.

    

    If this
letter is in accordance with your understanding of what you have agreed to do,
please sign below and return to me as soon as possible.

    

    Sincerely,

     

    

     

    Michael
R. Dunn

    CEO 

    

    

    ACKNOWLEDGED
AND AGREED.

    

    

    _____________________________

    Dan
Fleyshman

    

    _____________________________

    Date

     

     

    

      Who’s
Your Daddy, Inc., 26381 Crown Valley Parkway, #230, Mission Viejo, CA
92690

      Phone
949.582.5933 ... Fax 949.582.5913

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