Document:

ex10_5.htm

    

    SIXTEENTH
AMENDMENT TO EMPLOYMENT AGREEMENT

    

    

    This
Sixteenth Amendment to Employment Agreement is made and entered into as of March
1, 2009, by and between PriceSmart, Inc., a Delaware Corporation ("Employer")
and Thomas Martin ("Executive").

    

    

    Recitals

    

    
      	
              A)  

            	
              On
      March 31, 1998 an Employment Agreement was made and entered into by and
      between Employer and Executive.

            

    

    

    
      	
              B)  

            	
              Said
      Employment Agreement has been amended on fifteen prior
      occasions;

            

    

    

    
      	
              C)  

            	
              Employer
      and Executive now desire to amend the Employment Agreement, as set forth
      hereinbelow:

            

    

    

    Agreement

    

    

    1.           Section
3.1 of the Employment Agreement, which provides:

    

    3.1           Term.  The
term of Executive's employment hereunder shall commence on April 1, 1998 and
shall continue until March 31, 2009 unless sooner terminated or extended as
hereinafter provided (the "Employment Term").

    

    

    is hereby
amended, effective as of March 1, 2009, to provide as follows:

    

    

    3.1           Term.  The
term of Executive's employment hereunder shall commence on April 1, 1998 and
shall continue until March 31, 2010 unless sooner terminated or extended as
hereinafter provided (the "Employment Term").

    

    

    
      	
              2.

            	
              All
      other terms of the Employment Agreement, as amended, shall remain
      unaltered and fully effective.

            

    

    

    

    

    Executed
in San Diego, California, as of the date first written above.

    

    

    

    

    EXECUTIVE                                                                                                EMPLOYER

    PRICESMART, INC.

    

    Thomas
Martin                                                                                     By:
___________________

    

    ______________________                                                             Name: Jose Luis
Laparte

    

    Its:
PresidentFiled by sedaredgar.com - Keewatin Windpower Corp. - Exhibit 10.1

SHARE EXCHANGE AGREEMENT 

THIS AGREEMENT is dated for reference as of the 11th day of
May, 2009. 

BETWEEN: 

  
    
      KEEWATIN WINDPOWER CORP., a corporation incorporated
        under the laws of the State of Nevada 

      (“KWC”)

    

  

AND

  
    
      KEEWATIN WINDPOWER INC., a corporation incorporated
        under the laws of Saskatchewan 

      (“Exchangeco”) 

    

  

AND

  
    
      SKY HARVEST WINDPOWER CORP., a corporation incorporated
        under the laws of Canada 

      (“Sky Harvest”) 

    

  

AND 

  
    
      THE UNDERSIGNED SHAREHOLDERS OF SKY HARVEST

      (the “Selling Shareholders”) 

    

  

WHEREAS: 

A.        Exchangeco, a
wholly owned subsidiary of KWC, has offered to purchase the issued and
outstanding shares of Sky Harvest that are held by Canadian Selling Shareholders
and KWC has offered to purchase all of the remaining issued and outstanding
shares of Sky Harvest (the “Transaction”); 

B.        The Agreement
and the transactions contemplated herein are intended to provide to holders of
Sky Harvest Shares who are Canadian Residents the opportunity to dispose of
their Sky Harvest Shares in return for Exchangeable Shares on a tax-deferred or
“roll-over” basis for Canadian income tax purposes pursuant to the provisions of
Section 85 of the Income Tax Act;

C.        The Boards of
Directors of each of KWC, Exchangeco and Sky Harvest have approved and adopted
this Agreement; and

D.        In order to record
the terms and conditions of the agreement among them, the parties wish to enter
into this Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of
the premises, covenants, terms, conditions, representations and warranties
hereinafter set forth, the parties hereto agree each with the other as
follows:

- 2 - 

1.         
Interpretation 

1.1        Where used herein
or in any amendments or Schedules hereto, the following terms will have the
following meanings:

	 	(a) 	
      “Affiliate” of any person means any other person
      directly or indirectly controlling, controlled by, or under common control
      with, that person. For the purposes of this definition, “control”
      (including, with correlative meanings, the terms “controlled by” and
      “under common control with”), as applied to any person, means the
      possession by another person, directly or indirectly, of the power to
      direct or cause the direction of the management and policies of that first
      mentioned person, whether through the ownership of voting securities, by
      contract or otherwise.

	 	 	 	 
	 	(b) 	
      “Agreement” means this share exchange agreement
      and any amendment, supplement or addendum to the Agreement;

	 	 	 	 
	 	(c) 	
      “Applicable Securities Legislation” means all
      applicable securities legislation in all jurisdictions relevant to the
      issuance of the KWC Common Shares and Exchangeable Shares;

	 	 	 	 
	 	(d) 	
      “B.C. Legend” has the meaning ascribed to such
      term in Section 5.1;

	 	 	 	 
	 	(e) 	
      “B.C. Securities Act” means the Securities Act
      (British Columbia) R.S.B.C. (1996), c. 418, as amended from time to
      time;

	 	 	 	 
	 	(f) 	
      “B.C. Selling Shareholder” means a Selling
      Shareholder that is a B.C. Resident and is not resident in any other
      Canadian jurisdiction and is not a U.S. Person;

	 	 	 	 
	 	(g) 	
      “BCI 51-509” means British Columbia Instrument
      51-509 – Issuers Quoted in the U.S. Over-the- Counter Markets as
      adopted by the British Columbia Securities Commission;

	 	 	 	 
	 	(h) 	
      “Business” means the business in which Sky Harvest
      is engaged, namely:

	 	 	 	 
	 		(i) 	
      the exploration and development of wind power projects in
      Canada; and

	 	 	 	 
	 		(ii) 	
      any other enterprise that is directly related to the
      foregoing;

	 	 	 	 
	 	(i) 	
      “Canadian Resident” means a person that is a
      resident of Canada for the purposes of the Income Tax Act;

	 	 	 	 
	 	(j) 	
      “Canadian Selling Shareholder” means a Selling
      Shareholder that is a Canadian Resident and is not a U.S.
Person;

	 	 	 	 
	 	(k) 	
      “Closing Date” means the second Business Day
      following the day on which Sky Harvest delivers the financial statements
      referred to in Section 8.1 to KWC, or such other date as may be mutually
      agreed upon by the parties to this Agreement;

	 	 	 	 
	 	(l) 	
      “Current Market Price” has the meaning ascribed to
      that term in the Exchangeable Share Provisions;

	 	 	 	 
	 	(m) 	
      “Dividend Amount” has the meaning ascribed to that
      term in Section 13.1;

	 	 	 	 
	 	(n) 	
      “Electing Vendor” has the meaning ascribed to that
      term in Section 3.5;

	 	 	 	 
	 	(o) 	
      “Exchange Act” means the United States
      Securities Exchange Act of 1934, as amended from time to
    time;

- 3 - 

	 	(p) 	
      “Exchange Ratio” means the ratio of 1.5 KWC Common
      Shares for each 1 Sky Harvest Share held by a Selling Shareholder as
      determined pursuant to the valuation attached as Schedule N;

	 	 	 
	 	(q) 	
      “Exchangeable Share Exchange Ratio” means the
      ratio of 1.5 Exchangeable Shares for each 1 Sky Harvest Share held by a
      Canadian Selling Shareholder as determined pursuant to the valuation
      attached as Schedule N;

	 	 	 
	 	(r) 	
      “Exchangeable Shares” means the non-voting
      exchangeable shares in the capital of Exchangeco;

	 	 	 
	 	(s) 	
      “Exchangeable Share Provisions” means the
      Exchangeable Share provisions in substantially the form attached as
      Schedule O;

	 	 	 
	 	(t) 	
      “Exchangeable Share Support Agreement” means that
      certain Exchangeable Share Support Agreement made as of even date herewith
      between Exchangeco and KWC, in substantially the form attached as Schedule
      M;

	 	 	 
	 	(u) 	
      “Exchangeco” means Keewatin Windpower Inc., a
      corporation incorporated under the laws of Saskatchewan;

	 	 	 
	 	(v) 	
      “Income Tax Act” means the Income Tax Act
      (Canada) R.S.C. (1985), 5th supp., c. 1, as amended from time to
      time;

	 	 	 
	 	(w) 	
      “Indemnified Party” has the meaning ascribed to
      that term in Section 12.7;

	 	 	 
	 	(x) 	
      “Indemnifying Party” has the meaning ascribed to
      that term in Section 12.7;

	 	 	 
	 	(y) 	
      “KWC” means Keewatin Windpower Corp., a
      corporation incorporated under the laws of the State of Nevada;

	 	 	 
	 	(z) 	
      “KWC Common Shares” means the shares of common
      stock, par value $0.001 of KWC;

	 	 	 
	 	(aa) 	
      “KWC Financial Statements” means those audited
      financial statements of KWC for the years ended May 31, 2008 and May 31,
      2007, the unaudited interim financial statements of KWC for the nine
      months ended February 28, 2009, and pro forma financial statements as at
      February 28, 2009 attached as Schedule D;

	 	 	 
	 	(bb) 	
      “Liquidation Call Purchase Price” has the meaning
      ascribed to that term in Section 13.1;

	 	 	 
	 	(cc) 	
      “Liquidation Call Right” has the meaning ascribed
      to that term in Section 13.1;

	 	 	 
	 	(dd) 	
      “Material Adverse Effect” when used in connection
      with an entity means any change (including a decision to implement such a
      change made by the board of directors or by senior management who believe
      that confirmation of the decision by the board of directors is probable),
      event, violation, inaccuracy, circumstance or effect that is materially
      adverse to the business, assets (including intangible assets),
      liabilities, capitalization, ownership, financial condition or results of
      operations of such entity or subsidiaries taken as a whole;

	 	 	 
	 	(ee) 	
      “NI 45-106” means National Instrument 45-106 -
      Prospectus and Registration Exemptions, as adopted by the British
      Columbia Securities Commission;

	 	 	 
	 	(ff) 	
      “Non-Canadian Selling Shareholder” means a Selling
      Shareholder that is not a Canadian Resident and is not a U.S.
    Person;

	 	 	 
	 	(gg) 	
      “Non-B.C. Vendors” has the meaning ascribed to
      such term in Section 5.2;

- 4 - 

	 	(hh) 	
      “Parent Control Transaction” has the meaning
      ascribed to that term in the Exchangeable Share Provisions;

	 	 	 
	 	(ii) 	
      “OTC Bulletin Board” means the Financial Industry
      Regulatory Authority Over-The-Counter Bulletin Board;

	 	 	 
	 	(jj) 	
      “Redemption Call Purchase Price” has the meaning
      ascribed to that term in Section 13.2;

	 	 	 
	 	(kk) 	
      “Redemption Call Right” has the meaning ascribed
      to that term in Section 13.2;

	 	 	 
	 	(ll) 	
      “Regulation S” means Regulation S promulgated
      under the U.S. Securities Act;

	 	 	 
	 	(mm) 	
      “SBCA” means the Business Corporations Act
      (Saskatchewan) R.S.S. 1978, as amended from time to time;

	 	 	 
	 	(nn) 	
      “SEC” means the United States Securities and
      Exchange Commission;

	 	 	 
	 	(oo) 	
      “U.S. Securities Act” means the United States
      Securities Act of 1933, as amended from time to time;

	 	 	 
	 	(pp) 	
      “Selling Shareholders” means the undersigned
      shareholders of Sky Harvest;

	 	 	 
	 	(qq) 	
      “Sky Harvest” means Sky Harvest Windpower Corp., a
      corporation incorporated under the laws of Canada;

	 	 	 
	 	(rr) 	
      “Sky Harvest Financial Statements” means those
      unaudited interim financial statements of Sky Harvest for the nine month
      period ended February 28, 2009 and the audited financial statements of Sky
      Harvest for the years ended May 31, 2008 and May 31, 2007 attached as
      Schedule C;

	 	 	 
	 	(ss) 	
      “Sky Harvest Shares” means the Class A voting
      common shares in the capital stock of Sky Harvest;

	 	 	 
	 	(tt) 	
      “Special Voting Share” means the share of special
      voting stock of KWC, with a par value of U.S.$0.001, having substantially
      the same rights, privileges, restrictions and conditions described in the
      Voting and Exchange Trust Agreement;

	 	 	 
	 	(uu) 	
      “Transaction” has the meaning ascribed to such
      term in Recital A;

	 	 	 
	 	(vv) 	
      “Trustee” means Valiant Trust Company, a trust
      company continued under the laws of Canada and registered to carry on
      business in the Province of British Columbia;

	 	 	 
	 	(ww) 	
      “U.S. Certificate” has the meaning ascribed to
      such term in Section 9.1(b);

	 	 	 
	 	(xx) 	
      “U.S. GAAP” means U.S. generally accepted
      accounting principles;

	 	 	 
	 	(yy) 	
      “U.S. Person” has the meaning ascribed to such
      term in Rule 902 of Regulation S;

	 	 	 
	 	(zz) 	
      “U.S. Selling Shareholder” means a Selling
      Shareholders that is a U.S. Person;

	 	 	 
	 	(aaa) 	
      “Voting and Exchange Trust Agreement” means that
      certain voting and exchange trust agreement made as of even date herewith
      between KWC, Exchangeco and the Trustee, in substantially the form
      attached as Schedule L.

1.2        All dollar
amounts referred to in this Agreement are in United States funds, unless
expressly stated otherwise.

- 5 - 

1.3        The
following Schedules are attached to and form part of this Agreement:

  	Schedule
      	                     
                           
                           
                           
                       Description
      
	A 	U.S. Resident Certificate 
	B 	Canadian Resident Shareholders 
	C 	Sky Harvest Financial Statements 
	D 	KWC Financial Statements 
	E 	Material Agreements of Sky Harvest 
	F 	Real Property of Sky Harvest 
	G 	Encumbrances on Sky Harvest’s Assets 
	H 	Sky Harvest Litigation 
	I 	KWC Litigation 
	J 	Intellectual Property of Sky Harvest 
	K 	Subsidiaries of Sky Harvest 
	L 	Form of Voting and Exchange Trust Agreement 
	M 	Form of Exchangeable Share Support Agreement 
	N 	Valuation 
	O 	Exchangeable Share Provisions 

2.        
 Implementation Steps by KWC and Exchangeco

KWC and Exchangeco covenant in favour of Sky Harvest and the
Canadian Selling Shareholders that, on or prior to the Closing Date and subject
to the satisfaction or waiver of the other conditions herein contained in favour
of KWC and Exchangeco: 

	 	(a) 	
      KWC will, as soon as reasonably practicable, amend the
      certificate of incorporation and charter of KWC to create the Special
      Voting Share;

	 	 	 
	 	(b) 	
      KWC and Exchangeco will execute and deliver the
      Exchangeable Share Support Agreement;

	 	 	 
	 	(c) 	
      KWC will amend the articles of Exchangeco to create
      Exchangeable Shares prior to the Closing Date in a manner reasonably
      acceptable to Exchangeco;

	 	 	 
	 	(d) 	
      KWC and Exchangeco will execute and deliver the Voting
      and Exchange Trust Agreement; and

	 	 	 
	 	(e) 	
      KWC will issue to and deposit with the Trustee the
      Special Voting Share in consideration of the payment to KWC of
    $1.00.

3.        
 Canadian Selling Shareholder Share Exchange and Purchase of
Shares 

3.1        The Canadian
Selling Shareholders hereby covenant and agree to sell, assign and transfer to
Exchangeco, and Exchangeco covenants and agrees to purchase from the Canadian
Selling Shareholders, the Sky Harvest Shares held by the Canadian Selling
Shareholders.

3.2        In
consideration for the Canadian Selling Shareholders entering into this Agreement
and completing the sale of their Sky Harvest Shares to Exchangeco:

- 6 - 

	 	(a) 	
      On the Closing Date, KWC will enter into and cause
      Exchangeco to enter into the Voting and Exchange Trust Agreement with the
      Trustee and the Exchangeable Share Support Agreement;

	 	 	 
	 	(b) 	
      The purchase price for the Sky Harvest Shares held by the
      Canadian Selling Shareholders will consist of an aggregate of 16,400,016
      Exchangeable Shares to be issued to the Canadian Selling Shareholders in
      the amounts set out opposite each Canadian Selling Shareholder’s name in
      Schedule B as determined pursuant to the Exchangeable Share Exchange
      Ratio, and the rights and benefits to which such shareholder will be
      entitled pursuant to the terms of the Voting and Exchange Trust Agreement
      and the Exchangeable Share Support Agreement, and the name of each such
      shareholder will be removed from the register of holders of Sky Harvest
      Shares and added to the register of holders of Exchangeable Shares and
      Exchangeco will be recorded as the registered holder of such Sky Harvest
      Shares so exchanged and will be deemed to be the legal and beneficial
      owner thereof. For clarity, a Selling Shareholder that is not a Canadian
      Resident and not listed in Schedule B will not be entitled to receive any
      Exchangeable Shares; and

	 	 	 
	 	(c) 	
      Coincident with the transactions set out in Section
      3.2(b), KWC, Exchangeco and the Trustee will execute the Voting and
      Exchange Trust Agreement and KWC will issue to and deposit with the
      Trustee the Special Voting Share, in consideration of the payment to KWC
      of $1.00, to be thereafter held of record by the Trustee as trustee for
      and on behalf of, and for the use and benefit of, the holders of the
      Exchangeable Shares in accordance with the Voting and Exchange Trust
      Agreement. All rights of holders of Exchangeable Shares under the Voting
      and Exchange Trust Agreement will be received by them as part of the
      property receivable under Section 3.2(b) in exchange for the Sky Harvest
      Shares.

3.3        The sale of
the KWC Common Shares and the issuance of the Exchangeable Shares to the
Canadian Selling Shareholders will be made in reliance on an exemption from the
registration and prospectus filing requirements contained in section 2.16 of NI
45-106. The issuance or transfer of the KWC Common Shares to the Canadian
Selling Shareholders on the exchange of their Exchangeable Shares will be made
in reliance on section 2.16 of NI 45-106 and the exemption from the registration
requirements contained in Regulation S promulgated under the U.S. Securities
Act. KWC reserves the right to request from Selling Shareholders any additional
certificates or representations required to establish an exemption from
Applicable Securities Legislation prior to the issuance or transfer of any KWC
Common Shares. 

3.4        The Canadian
Selling Shareholders acknowledge and understand that any Exchangeable Shares
that they receive pursuant to this Agreement will be subject to resale
restrictions in accordance with Applicable Securities Legislation and that as a
result the certificates representing such Exchangeable Shares will be affixed
with certain legends describing such restrictions, including without limitation
the following: 

	 	(a) 	
      For Canadian Selling Shareholders who are not B.C.
      Selling Shareholders, the certificates representing KWC Common Shares to
      be issued to such shareholders on exchange of their Exchangeable Shares
      will be affixed with the following legends describing such
      restrictions:

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
“ACT”), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT. SUCH
SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN
EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

- 7 - 

UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE
DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (I) [INSERT THE DISTRIBUTION
DATE], AND (II) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR
TERRITORY. 

	 	(b) 	
      For B.C. Selling Shareholders, the certificates
      representing KWC Common Shares to be issued to such shareholders on
      exchange of their Exchangeable Shares will be affixed with the following
      legends describing such restrictions:

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
“ACT”), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT. SUCH
SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN
EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

UNLESS OTHERWISE PERMITTED UNDER
SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY
IN OR FROM BRITISH COLUMBIA UNLESS (A) THE SECURITY HOLDER TRADES THE SECURITY
THROUGH AN INVESTMENT DEALER REGISTERED IN BRITISH COLUMBIA FROM AN ACCOUNT AT
THAT DEALER IN THE NAME OF THAT SECURITY HOLDER, AND (B) THE DEALER EXECUTES THE
TRADE THROUGH THE OTC BULLETIN BOARD OR PINK SHEETS. 

	 	(c) 	
      For Canadian Selling Shareholders, the certificates
      representing the Exchangeable Shares will be affixed with a legend
      describing such restrictions, including, without limitation, the
      following:

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
“ACT”), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE ACT. SUCH
SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN
EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

THE CLASS D EXCHANGEABLE SHARES
REPRESENTED HEREBY ARE SUBJECT TO THE RIGHTS, PRIVILEGES, TERMS, CONDITIONS AND
RESTRICTIONS AS SET FORTH IN THE ARTICLES OF KEEWATIN WINDPOWER INC., A COPY OF
WHICH IS ON FILE AT THE REGISTERED OFFICE OF THE COMPANY AND IS OBTAINABLE ON
DEMAND WITHOUT CHARGE. 

- 8 - 

THIS SHARE CERTIFICATE
DOES NOT ENTITLE THE HOLDER TO ANY VOTES AT A MEETING OF
SHAREHOLDERS OF THE CORPORATION. EACH SHARE REPRESENTED BY THIS SHARE
CERTIFICATE SHALL ENTITLE THE HOLDER TO INSTRUCT THE TRUSTEE (AS DEFINED IN THE
VOTING AND EXCHANGE TRUST AGREEMENT (THE “AGREEMENT”) AMONG KEEWATIN WINDPOWER
CORP., KEEWATIN WINDPOWER INC. AND VALIANT TRUST COMPANY DATED EFFECTIVE AS OF
_____________, 2009) WITH RESPECT TO THE EXERCISE OF THE VOTING RIGHTS (AS
DEFINED IN THE AGREEMENT) AS SET OUT IN THE AGREEMENT.

3.5        It is intended
that the transactions contemplated in this Agreement will generally constitute
(i) a taxable exchange for United States federal income tax purposes (not
qualifying under Sections 368 or 351 of the United States Internal Revenue Code
of 1986, as amended) to persons who are otherwise subject to taxation in the
United States on the sale or exchange of Sky Harvest Shares, and (ii) a
transaction in respect of which the Canadian Selling Shareholders may elect to
be treated on a tax deferred basis for Canadian federal income tax purposes for
the Canadian Selling Shareholders. Exchangeco covenants and agrees to make a
joint election under subsection 85(1) of the Income Tax Act with each Canadian
Selling Shareholder who wishes to so elect (referred to in this section as an
“Electing Vendor”), subject to the following terms and conditions: 

	 	(a) 	
      the Electing Vendor will be fully responsible for
      completing and filing any and all election forms and all costs associated
      therewith;

	 	 	 
	 	(b) 	
      the Electing Vendor will (i) deliver to Exchangeco two
      copies of all election forms that are in the prescribed form and completed
      and signed by the Electing Vendor; and (ii) when, completing all election
      forms, elect in respect of the Sky Harvest Shares of the Electing Vendor
      an amount that is not less than the Electing Vendor’s adjusted cost base
      of the Sky Harvest Shares of the Electing Vendor on the Closing Date and
      not greater than the fair market value of the Sky Harvest Shares of the
      Electing Vendor on the Closing Date;

	 	 	 
	 	(c) 	
      within 15 days of the Electing Vendor delivering to
      Exchangeco the election forms as described above, Exchangeco will deliver
      to the Electing Vendor one copy of such election forms duly signed on
      behalf of Exchangeco;

	 	 	 
	 	(d) 	
      Exchangeco will return to the Electing Vendor unsigned
      any election forms that Exchangeco in its discretion considers to be
      incomplete or completed incorrectly;

	 	 	 
	 	(e) 	
      Exchangeco will bear no responsibility for the content of
      any election forms, for any penalties payable in connection with the late
      filing of any election forms, or for any taxes, penalties or interest
      payable by an Electing Vendor due to any failure to properly complete or
      file any election forms.

3.6        If an
Electing Shareholder who has completed and filed an election under subsection
85(1) of the Income Tax Act subsequently wishes to amend the election,
Exchangeco covenants and agrees to complete an amended election form for that
purpose, provided that the terms and conditions set forth in section 3.5(a)
through (e) will apply, with all references therein to “the election form” or
“the election forms” read as references to the amended election form or forms.

3.7        If, between the
date of this Agreement and the Closing Date, the outstanding KWC Common Shares
are changed into a different number or class of shares by reason of any stock
split, division or subdivision of shares, stock dividend, reverse stock split,
consolidation of shares, reclassification, recapitalization or other similar
transaction, then the Exchange Ratio and the Exchangeable Share Exchange Ratio
will be appropriately adjusted. 

- 9 - 

4.        
 Non-Canadian and U.S. Selling Shareholder Share Exchange and
Purchase of Shares 

4.1       The Non-Canadian
Selling Shareholders hereby covenant and agree to sell, assign and transfer to
KWC, and KWC covenants and agrees to purchase from the Non-Canadian Selling
Shareholders, the 480,000 Sky Harvest Shares held by the Non-Canadian Selling
Shareholders.

4.2        The U.S. Selling
Shareholders hereby covenant and agree to sell, assign and transfer to KWC, and
KWC covenants and agrees to purchase from the U.S. Selling Shareholders, the
147,000 Sky Harvest Shares held by the U.S. Selling Shareholders.

4.3        The purchase
price for the 480,000 Sky Harvest Shares held by the Non-Canadian Selling
Shareholders will consist of an aggregate of 720,000 KWC Common Shares to be
issued to the Non-Canadian Selling Shareholders as determined in accordance with
the Exchange Ratio. 

4.4        The purchase
price for the 147,000 Sky Harvest Shares held by the U.S. Selling Shareholders
will consist of an aggregate of 220,500 KWC Common Shares to be issued to the
U.S. Selling Shareholders as determined in accordance with the Exchange
Ratio.

4.5        The sale of the
KWC Common Shares to Non-Canadian Selling Shareholders will be made in reliance
on an exemption from the registration and prospectus filing requirements
contained in Regulation S. The Non-Canadian Selling Shareholders acknowledge and
understand that any KWC Common Shares that they receive pursuant to this
Agreement will be subject to resale restrictions in accordance with Applicable
Securities Legislation and that as a result the certificates representing such
KWC Common Shares will be affixed with the following legend in accordance with
Regulation S of the U.S. Securities Act:

  
    
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
        NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”),
        AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
        REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED UNDER THE
        ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE
        TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S,
        PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN
        AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS
        INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH
        THE ACT.

    

  

4.6        The sale of
the KWC Common Shares to U.S. Selling Shareholders will be made in reliance on
an exemption from the registration and prospectus filing requirements contained
in Rule 506 of Regulation D. The U.S. Selling Shareholders acknowledge that the
KWC Common Shares to be issued pursuant to the terms of this Agreement are
“restricted securities” within the meaning of the U.S. Securities Act and will
be issued to the U.S. Selling Shareholders, in accordance with Regulation D of
the U.S. Securities Act. Any certificates representing the KWC Common Shares
will be endorsed with the following legend in accordance with Regulation D of
the U.S. Securities Act:

  
    
      THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
        SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
        STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
        AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
        REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
        EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION 

    

  

- 10 - 

  
    
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
        WITH APPLICABLE STATE SECURITIES LAWS. 

    

  

5.         
Selling Shareholders Undertaking 

5.1        Pursuant to BCI
51-509 a subsequent trade in the KWC Common Shares in or from British Columbia
will be a distribution subject to the prospectus and registration requirements
of applicable Canadian securities legislation (including the B.C. Securities
Act) unless certain conditions are met, which conditions include, among others,
a requirement that any certificate representing the KWC Common Shares (or
ownership statement issued under a direct registration system or other book
entry system) bear the restrictive legend (the “B.C. Legend”) specified
in BCI 51-509. 

5.2        The Non-Canadian
Selling Shareholders, U.S. Selling Shareholders and Canadian Selling
Shareholders who are not B.C. Selling Shareholders (together the “Non-B.C.
Vendors”) each represent and warrant that they are not residents of British
Columbia and undertake not to trade or resell any of the KWC Common Shares
received by them pursuant to this Agreement in or from British Columbia. The
Non-B.C. Vendors understand and agree that KWC and others will rely upon the
truth and accuracy of these representations and warranties and agree that if
such representations and warranties are no longer accurate or have been
breached, the Non-B.C. Vendor will immediately notify KWC. 

5.3        By executing
and delivering this Agreement and as a consequence of the representations and
warranties made by the Non-B.C. Vendors in this section, the Non-B.C. Vendors
will have directed KWC not to include the B.C. Legend on any certificates
representing the KWC Common Shares to be issued to the Non-B.C. Vendors. As a
consequence, the Non-B.C. Vendors will not be able to rely on the resale
provisions of BCI 51-509, and any subsequent trade in any of the KWC Common
Shares in or from British Columbia will be a distribution subject to the
prospectus and registration requirements of the B.C. Securities Act. 

5.4        If the Non-B.C.
Vendor wishes to trade or resell any of the KWC Common Shares in or from British
Columbia, the Non-B.C. Vendor agrees and undertakes to return, prior to any such
trade or resale, any certificate representing the KWC Common Shares to KWC’s
transfer agent to have the B.C. Legend imprinted on such certificate or to
instruct KWC’s transfer agent to include the B.C. Legend on any ownership
statement issued under a direct registration system or other book entry system.

6.         
Covenants, Representations and Warranties of the Selling Shareholders
and Sky Harvest 

6.1        The Selling
Shareholders and Sky Harvest each jointly and severally covenant with and
represent and warrant to KWC and Exchangeco as of the date of this Agreement and
at the Closing Date as follows, and acknowledge that KWC and Exchangeco are
relying upon such covenants, representations and warranties in connection with
the Transaction:

6.2        Sky Harvest
has been duly incorporated and organized, is a validly existing company with
limited liability and is in good standing under the Canada Business Corporations
Act; it has the corporate power to own or lease its property and to carry on the
Business; it is duly qualified as a company to do business and is in good
standing with respect thereto in each jurisdiction in which the nature of the
Business or the property owned or leased by it makes such qualification
necessary; and it has all necessary licenses, permits, authorizations and
consents to operate its Business. Sky Harvest has no active or material
subsidiary, as such term is defined in the B.C. Securities Act.

6.3        The authorized
share capital of Sky Harvest consists of an unlimited number of Class A Voting
Shares, Class B Voting Shares, Class C Non-Voting Shares, Class D Non-Voting
Shares and Class E Preferred Shares, each without nominal or par value, of which
11,560,344 Class A Voting Shares and no shares of any other classes are issued
and outstanding as fully paid and non-assessable.

6.4        Each of the
Canadian Selling Shareholders and Non-Canadian Selling Shareholders (the
“Non-U.S. Vendors”) represents and warrants to KWC that they are not a
U.S. Person, and are not acquiring KWC Common Shares for the account or benefit
of a U.S. Person.

- 11 - 

A “U.S. Person” is defined by
Regulation S of the U.S. Securities Act to be any person who is: 

	 	(a) 	
      any natural person resident in the United
      States;

	 	 	 	 
	 	(b) 	
      any partnership or corporation organized or
      incorporated under the laws of the United States;

	 	 	 	 
	 	(c) 	
      any estate of which any executor or administrator is a
      U.S. person;

	 	 	 	 
	 	(d) 	
      any trust of which any trustee is a U.S.
      person;

	 	 	 	 
	 	(e) 	
      any agency or branch of a foreign entity located in
      the United States;

	 	 	 	 
	 	(f) 	
      any non-discretionary account or similar account
      (other than an estate or trust) held by a dealer or other fiduciary
      organized, incorporate, or (if an individual) resident in the United
      States; and

	 	 	 	 
	 	(g) 	
      any partnership or corporation if:

	 	 	 	 
	 		(i) 	
      organized or incorporated under the laws of any
      foreign jurisdiction; and

	 	 	 	 
	 		(ii) 	
      formed by a U.S. person principally for the purpose of
      investing in securities not registered under the U.S. Securities Act,
      unless it is organized or incorporated, and owned, by accredited investors
      [as defined in Section 230.501(a) of the U.S. Securities Act] who are not
      natural persons, estates or trusts.

6.5        The Non-U.S.
Vendors acknowledge that the KWC Common Shares to be issued to the Non-U.S.
Vendors in accordance with the terms of this Agreement and the Exchangeable
Shares will be “restricted securities” within the meaning of the U.S. Securities
Act and will be issued in accordance with Regulation S of the U.S. Securities
Act.

6.6        Each of the
Non-U.S. Vendors agrees not to engage in hedging transactions with regard to the
KWC Common Shares to be issued to the Selling Shareholders in accordance with
the Exchangeable Share Provisions unless in compliance with the U.S. Securities
Act.

6.7        Each of the
Canadian Selling Shareholders represents to KWC and Exchangeco that the
Exchangeable Shares and the KWC Common Shares to be issued to the Canadian
Selling Shareholders in accordance with the Exchangeable Share Provisions are
being issued to each Canadian Selling Shareholder as principal for their own
account and not for the benefit of any other person. 

6.8        The Non-U.S.
Vendors agree that, in accordance with the terms of this Agreement, KWC will
refuse to register any transfer of the KWC Common Shares to be issued to the
Non-U.S. Vendors not made in accordance with the provisions of Regulation S of
the U.S. Securities Act, pursuant to registration under the U.S. Securities Act,
pursuant to an available exemption from registration, or pursuant to this
Agreement.

6.9        The Sky
Harvest Shares owned by the Selling Shareholders are owned by each of the
Selling Shareholders as the beneficial and recorded owner with good and
marketable title thereto, free and clear of all mortgages, liens, charges,
security interests, adverse claims, pledges, encumbrances and demands
whatsoever.

6.10        No person,
firm or corporation has any agreement or option or any right or privilege
(whether by law, preemptive or contractual) capable of becoming an agreement or
option for the purchase from the Selling Shareholders of any of the Sky Harvest
Shares held by them.

6.11        No person, firm
or corporation has any agreement or option, including convertible securities,
warrants or convertible obligations of any nature, or any right or privilege
(whether by law, pre-emptive or contractual) capable of becoming an agreement or
option for the purchase, subscription, allotment or issuance of any of the
unissued shares in the capital of Sky Harvest or of any securities of Sky
Harvest.

- 12 - 

6.12        Sky Harvest
does not have any agreements of any nature to acquire any subsidiary, or to
acquire or lease any other business operations, and will not, prior to the
Closing Date, acquire, or agree to acquire, any subsidiary or business without
the prior written consent of KWC.

6.13        Sky Harvest
will not, without the prior written consent of KWC, issue any additional shares
from and after the date of this Agreement to the Closing Date or create any
options, warrants or rights for any person to subscribe for or acquire any
unissued shares in the capital of Sky Harvest.

6.14        To the best
of its knowledge, Sky Harvest is not a party to or bound by any guarantee,
warranty, indemnification, assumption or endorsement or any other like
commitment of the obligations, liabilities (contingent or otherwise) or
indebtedness of any other person, firm or corporation other than as set out in
Schedules C, E, G and H to this Agreement.

6.15        The books
and records of Sky Harvest fairly and correctly set out and disclose in all
material respects, in accordance with United States generally accepted
accounting principles, the financial position of Sky Harvest as at the date of
this Agreement, and all material financial transactions of Sky Harvest relating
to the Business have been accurately recorded in such books and records.

6.16        The Sky Harvest
Financial Statements present fairly the assets, liabilities (whether accrued,
absolute, contingent or otherwise) and the financial condition of Sky Harvest as
at the date thereof and there will not be, prior to the Closing Date or after
the consummation of the transaction contemplated by this Agreement, any material
increase in such liabilities other than increases arising as a result of
carrying on the Business in the ordinary and normal course. 

6.17        To the best
of the knowledge of Sky Harvest and the Selling Shareholders, the entry into
this Agreement and the consummation of the Transaction will not result in the
violation of any of the terms and provisions of the constating documents or
bylaws of Sky Harvest or of any indenture, instrument or agreement, written or
oral, to which Sky Harvest or the Selling Shareholders may be a party.

6.18        The entry
into this Agreement and the consummation of the Transactions will not, to the
best of the knowledge of Sky Harvest and the Selling Shareholders, result in the
violation by Sky Harvest of any law or regulation of the Province of
Saskatchewan or of any states or provinces or other jurisdiction in which Sky
Harvest are resident or in which the Business is or at the Closing Date will be
carried on or of any municipal bylaw or ordinance to which Sky Harvest or the
Business may be subject.

6.19        This
Agreement has been duly authorized, validly executed and delivered by Sky
Harvest and the Selling Shareholders.

6.20        Except as
disclosed in Schedule E, Sky Harvest is not a party to any written or oral
employment, service or pension agreement.

6.21        Except as
disclosed in Schedules C and E, Sky Harvest does not have outstanding any bonds,
debentures, mortgages, notes or other indebtedness and Sky Harvest is not under
any agreement to create or issue any bonds, debentures, mortgages, notes or
other indebtedness, except liabilities incurred in the ordinary course of
business.

6.22        Except as
disclosed in Schedules E and F, Sky Harvest is not the owner, lessee or under
any agreement to own or lease any real property, and does not have any operating
subsidiaries.

6.23        Except as
disclosed in Schedule G, Sky Harvest owns, possesses and has good and marketable
title to its undertaking, property and assets, and without restricting the
generality of the foregoing, all those assets described in the balance sheet
included in Sky Harvest Financial Statements, free and clear of any and all
mortgages, liens, pledges, charges, security interests, encumbrances, actions,
claims or demands of any nature whatsoever or howsoever arising.

- 13 - 

6.24        Sky Harvest
has its property insured against loss or damage by all insurable hazards or
risks on a replacement cost basis and such insurance coverage will be continued
in full force and effect to and including the Closing Date; to the best of the
knowledge of Sky Harvest and the Selling Shareholders, Sky Harvest is not in
default with respect to any of the provisions contained in any such insurance
policy and has not failed to give any notice or present any claim under any such
insurance policy in due and timely fashion.

6.25        Except as
disclosed in Schedule E, Sky Harvest does not have any outstanding material
agreements, contracts or commitments, whether written or oral, of any nature or
kind whatsoever, including, but not limited to, employment agreements,
agreements, contracts and commitments in the ordinary course of business,
service contracts on office equipment and leases. 

6.26       Except as
provided in Schedule H and to the best of Sky Harvest’s knowledge, there are no
actions, suits or proceedings (whether or not purportedly on behalf of Sky
Harvest), pending or threatened against or affecting Sky Harvest or affecting
the Business, at law or in equity, or before or by any federal, provincial,
state, municipal or other governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, and neither Sky Harvest nor the
Selling Shareholders is aware of any existing ground on which any such action,
suit or proceeding might be commenced with any reasonable likelihood of
success.

6.27        Except as
disclosed in the Sky Harvest Financial Statements, Sky Harvest is not in
material default or breach of any contracts, agreements, written or oral,
indentures or other instruments to which they are a party and there are no
facts, which after notice or lapse of time or both, that would constitute such a
default or breach, and all such contracts, agreements, indentures or other
instruments are now in good standing and Sky Harvest is entitled to all benefits
thereunder.

6.28        Sky Harvest has
the right to use all of the registered trademarks, trade names and patents, both
domestic and foreign, in relation to the Business as set out in Schedule J.

6.29        To the best of
the knowledge of Sky Harvest and the Selling Shareholders, the conduct of the
Business does not infringe upon the patents, trade marks, trade names or
copyrights, domestic or foreign, of any other person, firm or corporation.

6.30        To the best
of the knowledge of Sky Harvest and the Selling Shareholders, Sky Harvest is
conducting and will conduct the Business in compliance with all applicable laws,
rules and regulations of each jurisdiction in which the Business is or will be
carried on, Sky Harvest is not in material breach of any such laws, rules or
regulations and is, or will be on the Closing Date, fully licensed, registered
or qualified in each jurisdiction in which Sky Harvest owns or leases property
or carries on or proposes to carry on the Business to enable the Business to be
carried on as now conducted and its property and assets to be owned, leased and
operated, and all such licenses, registrations and qualifications are or will be
on the Closing Date valid and subsisting and in good standing and that none of
the same contains or will contain any provision, condition or limitation which
has or may have a materially adverse effect on the operation of the Business.

6.31        All facilities
and equipment owned or used by Sky Harvest in connection with the Business are
in good operating condition and are in a state of good repair and maintenance,
reasonable wear and tear excluded.

6.32        Except as
disclosed in the Sky Harvest Financial Statements and salaries incurred in the
ordinary course of business since the date thereof, Sky Harvest has no loans or
indebtedness outstanding which have been made to or from directors, former
directors, officers, shareholders and employees of Sky Harvest or to any person
or corporate body not dealing at arm’s length with any of the foregoing, and
will not, prior to closing, pay any such indebtedness unless in accordance with
budgets agreed in writing by KWC.

6.33        Sky Harvest
has made full disclosure to KWC and Exchangeco of all aspects of the Business
and has made all of its books and records available to the representatives of
KWC and Exchangeco in order to assist KWC and Exchangeco in the performance of
its due diligence searches and no material facts in relation to the Business
have been concealed by Sky Harvest or the Selling Shareholders.

- 14 - 

6.34        All of Sky
Harvest’s credit facilities are in good standing, other than as disclosed in the
Sky Harvest Financial Statements, and Sky Harvest has not received any notices
of default or acceleration requests from any bank or other creditor respecting
Sky Harvest’s credit facilities.

6.35        The articles,
bylaws and other constating documents of Sky Harvest in effect with the
appropriate corporate authorities as at the date of this Agreement will remain
in full force and effect without any changes thereto as at the Closing Date.

6.36        The
directors and officers of Sky Harvest are as follows:

  	Name 	Position 
	Chris Craddock 	President, Chief Financial Officer, Treasurer and Director
    
	William Iny 	Secretary and Director 

7.         
Covenants, Representations and Warranties of KWC and Exchangeco

7.1        KWC and
Exchangeco jointly and severally covenant with and represent and warrant to the
Selling Shareholders and Sky Harvest as of the date of this Agreement and at the
Closing Date as follows, and acknowledge that the Selling Shareholders are
relying upon such covenants, representations and warranties in entering into
this Agreement:

7.2        KWC has been duly
incorporated and organized and is validly subsisting under the laws of the State
of Nevada; it is a reporting issuer under the Exchange Act and is in good
standing with respect to all filings required to be made under such statutes
with the SEC; it has the corporate power to own or lease its properties and to
carry on its business as now being conducted by it; and it is duly qualified as
a corporation to do business and is in good standing with respect thereto in
each jurisdiction in which the nature of its business or the property owned or
leased by it makes such qualification necessary.

7.3        The authorized
capital of KWC consists of 100,000,000 shares of common stock with a par value
$0.001 per share and 10,000,000 preferred shares with a par value of $0.001 per
share, of which 12,391,500 shares of common stock are currently issued and
outstanding as fully paid and non-assessable, and no other shares of any other
class of KWC are issued and outstanding.

7.4        Exchangeco has
been duly incorporated and organized and is validly subsisting under the laws of
Saskatchewan; it has the corporate power to own or lease its properties and to
carry on its business as now being conducted by it; and it is duly qualified as
a corporation to do business and is in good standing with respect thereto in
each jurisdiction in which the nature of its business or the property owned or
leased by it makes such qualification necessary.

7.5        The
authorized capital of Exchangeco consists of an unlimited number of Class A
Voting Shares, Class B Non-Voting Shares and Class C Preferred Shares, of which
10 Class A Voting Shares are currently issued and outstanding as fully paid and
non-assessable, and no Class B Non-Voting Shares and no Class C Preferred Shares
are currently issued and outstanding.

7.6        No person,
firm or corporation has any agreement or option, including convertible
securities, warrants or convertible obligations of any nature, or any right or
privilege (whether by law, pre-emptive or contractual) capable of becoming an
agreement or option for the purchase, subscription, allotment or issuance of any
of the unissued shares in the capital of either KWC Common Shares or Exchangeco.

7.7        The
directors and officers of KWC and Exchangeco are as follows:

	Name 	Position 
	Chris Craddock 	President, Secretary, Treasurer, Chief Executive Officer,
  

- 15 - 

	  	Chief Financial Officer and Director 
	William Iny 	Director 

7.8        KWC
Financial Statements present fairly the assets, liabilities (whether accrued,
absolute, contingent or otherwise) and the financial condition of KWC as at the
date thereof.

7.9        The books and
records of KWC fairly and correctly set out and disclose in all material
respects, in accordance with United States generally accepted accounting
principles, the financial position of KWC as at the date of this Agreement, and
all material financial transactions of KWC relating to the business have been
accurately recorded in such books and records.

7.10        KWC has made
full disclosure to Sky Harvest of all material aspects of KWC’s business and has
made all of its books and records available to the representatives of Sky
Harvest in order to assist Sky Harvest in the performance of its due diligence
searches and no material facts in relation to KWC’s business have been concealed
by KWC.

7.11        KWC and
Exchangeco are not a party to or bound by any agreement or guarantee, warranty,
indemnification, assumption or endorsement or any other like commitment of the
obligations, liabilities (contingent or otherwise) or indebtedness of any other
person, firm or corporation.

7.12        Except as
disclosed in Schedule I, there are no actions, suits or proceedings (whether or
not purportedly on behalf of KWC or Exchangeco), pending or threatened against
or affecting KWC or Exchangeco or affecting KWC’s business, at law or in equity,
or before or by any federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign and
KWC and Exchangeco are not aware of any existing ground on which any such
action, suit or proceeding might be commenced with any reasonable likelihood of
success.

7.13        The
Corporate Charter, Articles of Incorporation and Bylaws and any other constating
documents of KWC in effect with the appropriate corporate authorities as at the
date of this Agreement will not have been materially changed as at the Closing
Date, except for changes made in furtherance of the transactions contemplated
under this Agreement.

7.14        The Articles of
Incorporation and Bylaws and any other constating documents of Exchangeco in
effect with the appropriate corporate authorities as at the date of execution of
this Agreement will not have been materially changed as at the Closing Date,
except for changes made in furtherance of the transactions contemplated under
this Agreement.

7.15        The entry into
this Agreement and the consummation of the Transaction will not result in the
violation of any of the terms and provisions of the constating documents or
bylaws of KWC or Exchangeco or of any indenture, instrument or agreement,
written or oral, to which KWC or Exchangeco may be a party.

7.16        The entry into
this Agreement and the consummation of the Transaction will not, to the best of
the knowledge of KWC, result in the violation of any law or regulation of the
United States or the State of Nevada or of any local government bylaw or
ordinance to which KWC or KWC’s business may be subject.

7.17        This
Agreement has been duly authorized, validly executed and delivered by each of
KWC and Exchangeco.

7.18        No agreement has
been made with KWC or Exchangeco in respect of the purchase and sale
contemplated by this Agreement that could give rise to any valid claim by any
person against Sky Harvest or the Selling Shareholders for a finder’s fee,
brokerage commission or similar payment.

- 16 - 

8.         
Acts in Contemplation of Closing

8.1        Sky Harvest
covenants and agrees with KWC, Exchangeco and the Selling Shareholders to
deliver to KWC and Exchangeco, those financial statements of Sky Harvest as are
required by Applicable Securities Legislation in order to permit KWC to make the
SEC filings required in respect of the purchase and sale of the shares of Sky
Harvest in accordance with this Agreement.

9.         
Closing Conditions 

9.1        Conditions
Precedent to Closing by KWC and Exchangeco. The obligation of KWC and
Exchangeco to consummate the Transaction is subject to the satisfaction or
waiver of the conditions set forth below on or before the Closing Date or such
earlier date as hereinafter specified. The Closing of the Transaction
contemplated by this Agreement will be deemed to mean the satisfaction or waiver
of all conditions to Closing. These conditions of closing are for the benefit of
KWC and Exchangeco and may be waived by either party in its sole discretion.

	 	(a) 	
      Representations and Warranties. The respective
      representations and warranties of the Selling Shareholders and Sky Harvest
      contained in this Agreement or in any Schedule to this Agreement or
      certificate or other document delivered to KWC pursuant to this Agreement
      will be true, correct and complete in all material respects as of the date
      of this Agreement and as of the Closing Date with the same force and
      effect as though such representations and warranties had been made on and
      as of such date, regardless of the date as of which the information in
      this Agreement or any such Schedule or certificate is given, and KWC and
      Exchangeco will have received on the Closing Date certificates dated as of
      the Closing Date, in forms satisfactory to counsel for KWC and Exchangeco
      and signed under seal by the Selling Shareholders and by the senior
      officer of Sky Harvest to the effect that their respective representations
      and warranties referred to above are true, correct and complete on and as
      of the Closing Date with the same force and effect as though made on and
      as of such date, provided that the acceptance of such certificates and the
      closing of the transactions provided for in this Agreement will not be a
      waiver of the respective representations and warranties contained in this
      Agreement or in any Schedule to this Agreement or in any certificate or
      document given pursuant to this Agreement which covenants, representations
      and warranties will continue in full force and effect for the benefit of
      KWC and Exchangeco.

	 	 	 	 
	 	(b) 	
      U.S. Selling Shareholders. Each of the U.S.
      Selling Shareholders will have duly executed the Certificate of U.S.
      Resident in the form attached as Schedule A (the “U.S.
      Certificate”), and the representations and warranties contained in the
      U.S. Certificate will be accurate in all respects as of the date of this
      Agreement and as of the Closing Date as if made on and as of the Closing
      Date.

	 	 	 	 
	 	(c) 	
      Performance. All of the covenants and obligations
      that Sky Harvest and the Selling Shareholders are required to perform or
      to comply with pursuant to this Agreement at or prior to the Closing will
      have been performed and complied with in all material respects.

	 	 	 	 
	 	(d) 	
      Transaction Documents. This Agreement and all
      other documents necessary or reasonably required to consummate the
      Transaction and the transactions contemplated under this Agreement, all in
      form and substance reasonably satisfactory to KWC and its counsel, will
      have been executed and delivered to KWC by Sky Harvest and the Selling
      Shareholders.

	 	 	 	 
	 	(e) 	
      Approvals. Sky Harvest will have delivered to KWC
      minutes of meetings, written consents or other evidence satisfactory to
      KWC and its counsel that the board of directors of Sky Harvest have
      approved this Agreement and the Transaction.

	 	 	 	 
	 	(f) 	
      President’s Certificate – Sky Harvest. Sky
      Harvest will have delivered to KWC a certificate from the President of Sky
      Harvest attaching:

	 	 	 	 
	 		(i) 	
      a copy of Sky Harvest’s articles, bylaws and all other
      constating documents, as amended through the Closing Date;
  and

- 17 - 

	 	(ii) 	
      copies of resolutions duly adopted by the board of
      directors of Sky Harvest approving the execution and delivery of this
      Agreement and the consummation of the transactions contemplated
    herein.

	 	(g) 	
      Third Party Consents. Sky Harvest will have
      delivered to KWC duly executed copies of all third party consents and
      approvals required by this Agreement to be obtained by Sky Harvest, in
      form and substance reasonably satisfactory to KWC and its
  counsel.

	 	 	 	 
	 	(h) 	
      Regulatory Approvals and Consents. Sky Harvest
      will have obtained all approvals and consents required to carry out this
      Agreement and the Transaction, in form and substance reasonably
      satisfactory to KWC and its counsel.

	 	 	 	 
	 	(i) 	
      No Material Adverse Effect. At the Closing Date,
      there will have been no Material Adverse Effect to the affairs, assets,
      liabilities, or financial condition of Sky Harvest or the Business
      (financial or otherwise) from that shown on or reflected in the Sky
      Harvest Financial Statements.

	 	 	 	 
	 	(j) 	
      No Damage. No substantial damage by fire or other
      hazard to the Business will have occurred prior to or on the Closing
      Date.

	 	 	 	 
	 	(k) 	
      No Action. No suit, action, or proceeding will be
      pending or threatened which would:

	 	 	 	 
	 		(i) 	
      prevent the consummation of any of the transactions
      contemplated by this Agreement; or

	 	 	 	 
	 		(ii) 	
      cause the Transaction to be rescinded following
      consummation.

	 	 	 	 
	 	(l) 	
      Outstanding Securities. Sky Harvest will have no
      more than 11,560,344 shares of Class A Voting Stock and no shares of any
      other classes issued and outstanding on the Closing Date.

	 	 	 	 
	 	(m) 	
      Public Disclosure. Sky Harvest will have delivered
      substantive information about its assets and personnel satisfactory to KWC
      for completion of any required public disclosure of the Transaction
      details.

	 	 	 	 
	 	(n) 	
      Compliance with Securities Laws. Sky Harvest will
      have delivered evidence satisfactory to KWC that the Sky Harvest Shares
      issuable in the Transaction will be issuable without registration pursuant
      to the U.S. Securities Act and the Applicable Securities Legislation in
      reliance on a safe harbour from the registration requirements of the U.S.
      Securities Act and the Applicable Securities Legislation.

	 	 	 	 
	 	(a) 	
      Financial Statements. Sky Harvest will have
      delivered all financial statements of Sky Harvest prepared in U.S. GAAP
      required to be filed by KWC under Applicable Securities Legislation
      including those financial statements specified in Section 8.1.

	 	 	 	 
	 	(o) 	
      Share Certificates of Canadian Selling Shareholders.
      The Canadian Selling Shareholders will deliver to Exchangeco or to the
      direction of Exchangeco certificates representing their Sky Harvest Shares
      duly executed for transfer, together with all other documentation required
      to transfer title to their Sky Harvest Shares to or to the direction of
      Exchangeco, provided that if there are no certificates representing the
      Sky Harvest Shares, the Canadian Selling Shareholders will each deliver to
      Exchangeco, or as directed by Exchangeco, an executed stock power of
      attorney or other document evidencing the transfer of the Sky Harvest
      Shares from the Canadian Selling Shareholders to or to the direction of
      Exchangeco.

	 	 	 	 
	 	(p) 	
      Share Certificates of Non-Canadian Selling
      Shareholders. The Non-Canadian Selling Shareholders will deliver to or
      to the direction of KWC certificates representing their Sky Harvest Shares
      duly signed off for transfer, together with all other documentation
      required to transfer title to their Sky Harvest Shares to or to the
      direction of KWC, provided that if there are no
  certificates

- 18 - 

  representing the Sky Harvest Shares, the Non-Canadian Selling
    Shareholders will each deliver to KWC, or as directed by KWC, an executed
    stock power of attorney or other document evidencing the transfer of the Sky
    Harvest Shares from the Non-Canadian Selling Shareholders to or to the direction
    of KWC (in either case with the signature guaranteed by the appropriate official)
    with all applicable security transfer taxes paid. 

9.2        In the event any
of the foregoing conditions contained in Section 9.1 are not fulfilled or
performed at or before the Closing Date to the reasonable satisfaction of KWC
and Exchangeco, KWC or Exchangeco may terminate this Agreement by written notice
to Sky Harvest and the Selling Shareholders and in such event KWC and Exchangeco
will be released from all further obligations hereunder. Any of the foregoing
conditions contained in Section 9.1 may be waived in writing in whole or in part
by KWC or Exchangeco without prejudice to each entity’s respective rights of
termination in the event of the non-fulfilment of any other conditions. 

9.3        Conditions
Precedent to Closing by Sky Harvest and the Selling Shareholders. The
obligation of Sky Harvest and the Selling Shareholders to consummate the
Transaction is subject to the satisfaction or waiver of the conditions set forth
below on or before the Closing Date or such earlier date as hereinafter
specified. The Closing of the Transaction will be deemed to mean the
satisfaction or waiver of all conditions to Closing. These conditions precedent
are for the benefit of Sky Harvest and the Selling Shareholders and may be
waived by either Sky Harvest and/or the Selling Shareholders in their
discretion. 

	 	(a) 	
      Representations and Warranties. The
      representations and warranties of KWC and Exchangeco contained in this
      Agreement or in any Schedule to this Agreement or certificate or other
      document delivered to Sky Harvest and the Selling Shareholders pursuant to
      this Agreement will be true, correct and complete in all material respects
      as of the date of this Agreement and as of the Closing Date with the same
      force and effect as though such representations and warranties had been
      made on and as of such date, regardless of the date as of which the
      information in this Agreement or any such Schedule or certificate is
      given, and Sky Harvest will have received on the Closing Date a
      certificate dated as of the Closing Date from each of KWC and Exchangeco,
      in a form satisfactory to Sky Harvest, signed by a senior officer of KWC
      or Exchangeco, respectively, to the effect that such representations and
      warranties referred to above are true, correct and complete on and as of
      the Closing Date with the same force and effect as though made on and as
      of such date, provided that the acceptance of such certificate and the
      closing of the transaction provided for in this Agreement will not be a
      waiver of the representations and warranties contained in this Agreement
      or in any Schedule to this Agreement or in any certificate or document
      given pursuant to this Agreement which covenants, representations and
      warranties will continue in full force and effect for the benefit of Sky
      Harvest and the Selling Shareholders.

	 	 	 	 
	 	(b) 	
      Performance. All of the covenants and obligations
      that KWC is required to perform or to comply with pursuant to this
      Agreement at or prior to the Closing will have been performed and complied
      with in all material respects. KWC and Exchangeco will have delivered each
      of the documents respectively required to be delivered by them pursuant to
      this Agreement.

	 	 	 	 
	 	(c) 	
      Compliance. Upon the closing of this Agreement,
      KWC will be in compliance with its reporting requirements under the
      Exchange Act.

	 	 	 	 
	 	(d) 	
      Transaction Documents. This Agreement and all
      other documents necessary or reasonably required to consummate the
      Transaction, all in form and substance reasonably satisfactory to Sky
      Harvest, will have been executed and delivered to Sky Harvest by KWC and
      Exchangeco.

	 	 	 	 
	 	(e) 	
      President’s Certificate – KWC and Exchangeco. Each
      of KWC and Exchangeco will have delivered to Sky Harvest a certificate
      from their respective President attaching:

	 	 	 	 
	 		(i) 	
      a copy of the articles of incorporation, bylaws and all
      other constating documents, as amended through the Closing Date;
  and

- 19 - 

	 	(ii) 	
      copies of resolutions duly adopted by the respective
      boards of directors of KWC and Exchangeco and copies of consents of the
      shareholder of Exchangeco approving the execution and delivery of this
      Agreement and the consummation of the transactions contemplated
    herein.

	 	(f) 	
      Approvals. KWC and Exchangeco will have delivered
      to Sky Harvest minutes of meetings, written consents or other evidence
      satisfactory to Sky Harvest that the respective boards of directors of KWC
      and Exchangeco have approved this Agreement and the Transaction.

	 	 	 	 
	 	(g) 	
      No Material Adverse Effect. At the Closing Date,
      there will have been no Material Adverse Effect to the affairs, assets,
      liabilities, financial condition or business (financial or otherwise) of
      KWC from that shown on or reflected in the KWC Financial
  Statements.

	 	 	 	 
	 	(h) 	
      No Action. No suit, action, or proceeding will be
      pending or threatened before any governmental or regulatory authority
      wherein an unfavourable judgment, order, decree, stipulation, injunction
      or charge would:

	 	 	 	 
	 		(i) 	
      prevent the consummation of any of the transactions
      contemplated by this Agreement; or

	 	 	 	 
	 		(ii) 	
      cause the Transaction to be rescinded following
      consummation.

	 	 	 	 
	 	(i) 	
      Outstanding Securities. Other than the KWC Common
      Shares to be issued by KWC pursuant to this Agreement, KWC will have
      issued and outstanding no more than 12,391,500 KWC Common Shares

	 	 	 	 
	 	(j) 	
      Regulatory Approvals and Consents. KWC will have
      obtained all necessary approvals and consents to carry out the
      Transaction, in form and substance reasonably satisfactory to Sky
      Harvest.

	 	 	 	 
	 	(k) 	
      Public Market. On the Closing Date, the KWC Common
      Shares will be quoted on the OTC Bulletin Board. KWC has not been
      informed, nor does it have any knowledge, that the United States Financial
      Regulatory Authority or any other regulatory agency will take action to
      cease the KWC Common Shares from being quoted on the OTC Bulletin
      Board.

	 	 	 	 
	 	(l) 	
      KWC Debts. KWC will have provided evidence that it
      has satisfied or will otherwise provide for payment of all material debt
      on its books and accounts payable.

	 	 	 	 
	 	(m) 	
      Other Agreements. KWC and Exchangeco will have
      entered into the Voting and Exchange Trust Agreement with the Trustee and
      the Exchangeable Share Support Agreement.

	 	 	 	 
	 	(n) 	
      Issuance of Special Voting Share. KWC will issue
      to and deposit with the Trustee the Special Voting Share, in consideration
      of the payment to KWC of $1.00, to be thereafter held of record by the
      Trustee as trustee for and on behalf of, and for the use and benefit of,
      the holders of the Exchangeable Shares in accordance with the Voting and
      Exchange Trust Agreement.

9.4        In the event that
any of the conditions contained in Section 9.3 will not be fulfilled or
performed by KWC or Exchangeco at or before the Closing Date to the reasonable
satisfaction of Sky Harvest and the Selling Shareholders, then Sky Harvest or
the Selling Shareholders may terminate this Agreement by written notice to KWC
and Exchangeco and in such event Sky Harvest and the Selling Shareholders will
be released from all further obligations hereunder. Any of the foregoing
conditions contained in Section 9.3 may be waived in writing in whole or in part
by Sky Harvest or the Selling Shareholders without prejudice to the respective
rights of termination of Sky Harvest or the Selling Shareholders in the event of
the non-fulfilment of any other conditions. 

- 20 - 

9.5        The closing will
take place on the Closing Date at the offices of Clark Wilson LLP at Suite
800-885 West Georgia St., Vancouver, British Columbia, Canada V6C 3H1, or at
such other time and place as the parties may mutually agree. 

10.       
Covenants

10.1      Notification of Financial
Liabilities. Sky Harvest will immediately notify KWC in accordance with
Section 14.6, if Sky Harvest receives any advice or notification from its
independent certified public accounts that Sky Harvest has used any improper
accounting practice that would have the effect of not reflecting or incorrectly
reflecting in the books, records, and accounts of Sky Harvest, any properties,
assets, liabilities, revenues, or expenses. Notwithstanding any statement to the
contrary in this Agreement, this covenant will survive closing and continue in
full force and effect. 

10.2      Access and
Investigation. Between the date of this Agreement and the Closing Date, Sky
Harvest, on the one hand, and KWC, on the other hand, will, and will cause each
of their respective representatives to: 

	 	(a) 	
      afford the other and its representatives full and free
      access to its personnel, properties, assets, contracts, books and records
      and other documents and data;

	 	 	 
	 	(b) 	
      furnish the other and its representatives with copies of
      all such contracts, books and records, and other existing documents and
      data as required by this Agreement and as the other may otherwise
      reasonably request; and

	 	 	 
	 	(c) 	
      furnish the other and its representatives with such
      additional financial, operating, and other data and information as the
      other may reasonably request.

All of such access, investigation and communication by a party
and its representatives will be conducted during normal business hours and in a
manner designed not to interfere unduly with the normal business operations of
the other party. Each party will instruct its auditors to co-operate with the
other party and its representatives in connection with such investigations. 

10.3      Confidentiality.

	 	(a) 	
      All information regarding the business of Sky Harvest
      including, without limitation, financial information that Sky Harvest has
      provided to KWC, will be kept in strict confidence by KWC and will not be
      given to any other person or party or used (except in connection with due
      diligence and except as required to file a news release and Form 8-K
      disclosure regarding the transaction to the public after the Closing),
      dealt with, exploited or commercialized by KWC or disclosed to any third
      party (other than KWC’s professional accounting and legal advisors)
      without the prior written consent of Sky Harvest. If the Transaction
      contemplated by this Agreement does not proceed for any reason, then upon
      receipt of a written request from Sky Harvest, KWC will immediately return
      to Sky Harvest (or as directed by Sky Harvest) any information received
      regarding Sky Harvest’s business, including all copies thereof. Likewise,
      all information regarding the business of KWC including, without
      limitation, financial information that KWC provides to Sky Harvest during
      its due diligence investigation of KWC will be kept in strict confidence
      by Sky Harvest and will not be used (except in connection with due
      diligence), dealt with, exploited or commercialized by Sky Harvest or
      disclosed to any third party (other than Sky Harvest’s professional
      accounting and legal advisors) without KWC’s prior written consent. If the
      Transaction contemplated by this Agreement does not proceed for any
      reason, then upon receipt of a written request from KWC, Sky Harvest will
      immediately return to KWC (or as directed by KWC) any information received
      regarding KWC’s business, including all copies thereof. Upon request, each
      party will provide an affidavit to the other that all documents, including
      all copies thereof, were returned to the other
party.

- 21 - 

	 	(b) 	
      KWC and Sky Harvest acknowledge and agree, subject to
      disclosure obligations under Applicable Securities Legislation or other
      laws or regulations, that neither party will make any public
      pronouncements concerning the terms of this Agreement without the express
      written consent of the other party, such consent not to be unreasonably
      withheld.

	 	 	 
	 	(c) 	
      Sky Harvest acknowledges and agrees that, while in
      possession of material information about KWC that has not been publicly
      disclosed, it will not trade and will take all reasonable steps to prevent
      any of its employees or agents from trading in the securities of KWC prior
      to Closing.

10.4      Notification of
Breach. Between the date of this Agreement and the Closing Date, each of the
parties to this Agreement will promptly notify the other parties in writing if
it becomes aware of any fact or condition that causes or constitutes a material
breach of any of its representations and warranties as of the date of this
Agreement, if it becomes aware of the occurrence after the date of this
Agreement of any fact or condition that would cause or constitute a material
breach of any such representation or warranty had such representation or
warranty been made as of the time of occurrence or discovery of such fact or
condition. Should any such fact or condition require any change in the Schedules
relating to such party, such party will promptly deliver to the other parties a
supplement to the Schedules specifying such change. During the same period, each
party will promptly notify the other parties of the occurrence of any material
breach of any of its covenants in this Agreement or of the occurrence of any
event that may make the satisfaction of such conditions impossible or unlikely.

10.5      Conduct of Sky Harvest
and KWC Business Prior to Closing. Except as expressly contemplated by this
Agreement or for purposes in furtherance of this Agreement, from the date of
this Agreement to the Closing Date, and except to the extent that KWC otherwise
consents in writing, Sky Harvest will operate its business substantially as
presently operated and only in the ordinary course and in compliance with all
applicable laws, and use its best efforts to preserve intact its good reputation
and present business organization and to preserve its relationships with persons
having business dealings with it. Likewise, from the date of this Agreement to
the Closing Date, and except to the extent that Sky Harvest otherwise consents
in writing, KWC will operate its business substantially as presently operated
and only in the ordinary course and in compliance with all applicable laws, and
use its best efforts to preserve intact its good reputation and present business
organization and to preserve its relationships with persons having business
dealings with it. 

10.6      Full Disclosure
Requirement. KWC possesses, or expects to possess on or before the required
filing date, all of the financial statements and financial information required
to be included in the report on Form 8-K to be filed by KWC within four (4)
business days after the consummation on the transactions contemplated by this
Agreement. Sky Harvest will use its commercially reasonable best efforts to
cooperate fully in providing KWC with all information and documentation
reasonably requested.

10.7      Public Announcements.
Until the Closing Date, KWC and Sky Harvest each agree that they will not
release or issue any reports or statements or make any public announcements
relating to this Agreement or the Transaction without the prior written consent
of the other party, except as may be required upon written advice of counsel to
comply with applicable laws or regulatory requirements after consulting with the
KWC or Sky Harvest, as applicable, and seeking their reasonable consent to such
announcement. Sky Harvest acknowledges that KWC must comply with Applicable
Securities Legislation requiring full disclosure of material facts and
agreements in which it is involved, and will co-operate to assist KWC in meeting
its obligations.

11.      
 TERMINATION 

11.1      Termination. This
Agreement may be terminated at any time prior to the Closing Date by: 

	 	(a) 	
      mutual agreement of KWC and Sky Harvest, without the
      consent of Exchangeco and the Selling Shareholders;

	 	 	 
	 	(b) 	
      KWC, if there has been a material breach by Sky Harvest
      or any of the Selling Shareholders of any material representation,
      warranty, covenant or agreement set forth in this Agreement on the part of
      Sky Harvest or the Selling Shareholders that is not cured by the breaching
      party, to the

- 22 - 

	 		
      reasonable satisfaction of KWC, within ten business days
      after notice of such breach is given by KWC (except that no cure period
      will be provided for a breach by Sky Harvest or the Selling Shareholders
      that by its nature cannot be cured);

	 	 	 
	 	(c) 	
      Sky Harvest or any of the Selling Shareholders, if there
      has been a material breach by KWC of any material representation,
      warranty, covenant or agreement set forth in this Agreement on the part of
      KWC that is not cured by KWC, to the reasonable satisfaction of Sky
      Harvest or such Selling Shareholder(s), within ten business days after
      notice of such breach is given by Sky Harvest or the Selling
      Shareholder(s) (except that no cure period will be provided for a breach
      by KWC that by its nature cannot be cured);

	 	 	 
	 	(d) 	
      KWC or Sky Harvest, if the Transaction contemplated by
      this Agreement has not been consummated by the date which is 41 days after
      the date of the delivery of the Sky Harvest Financial Statements, unless
      the parties to this Agreement agree to extend such date in
  writing;

	 	 	 
	 	(e) 	
      KWC or Sky Harvest, if any permanent injunction or other
      order of a governmental entity of competent authority preventing the
      consummation of the Transaction contemplated by this Agreement has become
      final and non-appealable; or

	 	 	 
	 	(f) 	
      KWC or Sky Harvest, if the Transaction has not been
      consummated prior to September 1, 2009, or such other date as may be
      agreed to in writing by KWC and Sky Harvest.

11.2      Effect of
Termination. In the event of the termination of this Agreement as provided
for in Section 11.1, this Agreement will be of no further force or effect,
except for those provisions in this Agreement which expressly survive
termination, and provided that no termination of this Agreement will relieve any
party of liability for any breaches of this Agreement that are based on a
wrongful refusal or failure to perform any obligations. 

12.        Indemnification,
  Remedies, Survival

12.1      Certain Definitions.
For the purposes of this Section 12, the terms “Loss” and
“Losses” mean any and all demands, claims, actions or causes of action,
assessments, losses, damages, liabilities, costs, and expenses, including
without limitation, interest, penalties, fines and reasonable attorneys,
accountants and other professional fees and expenses, but excluding any
indirect, consequential or punitive damages suffered by KWC or Sky Harvest
including damages for lost profits or lost business opportunities. 

12.2      Agreement of Sky Harvest
to Indemnify. Sky Harvest will indemnify, defend, and hold harmless, to the
full extent of the law, KWC and its directors, officers, employees, agents,
advisers and shareholders from, against, and in respect of any and all Losses
asserted against, relating to, imposed upon, or incurred by KWC and its
directors, officers, employees, agents, advisers and shareholders by reason of,
resulting from, based upon or arising out of: 

	 	(a) 	
      the breach by Sky Harvest of any representation or
      warranty of Sky Harvest contained in or made pursuant to this Agreement,
      any Sky Harvest document or any certificate or other instrument delivered
      pursuant to this Agreement; or

	 	 	 
	 	(b) 	
      the breach or partial breach by Sky Harvest of any
      covenant or agreement of Sky Harvest made in or pursuant to this
      Agreement, any document or any certificate or other instrument delivered
      pursuant to this Agreement.

12.3      Agreement of the Selling
Shareholders to Indemnify. The Selling Shareholders will each, severally,
and not jointly and severally, indemnify, defend, and hold harmless, to the full
extent of the law, KWC and its directors, officers, employees, agents, advisers
and shareholders from, against, and in respect of any and all Losses asserted
against, relating to, imposed upon, or incurred by KWC and its directors,
officers, employees, agents, advisers and shareholders by reason of, resulting
from, based upon or arising out of: 

- 23 - 

	 	(a) 	
      any breach by such Selling Shareholder of this Agreement;
      or

	 	 	 
	 	(b) 	
      any misstatement, misrepresentation or breach of the
      representations and warranties made by such Selling Shareholder contained
      in or made pursuant to the representations or warranties or certificates
      executed by the Selling Shareholder as part of the share exchange
      procedure detailed in Sections 2, 3, 4 and 5 of this
  Agreement.

12.4      Agreement of KWC to
Indemnify. KWC will indemnify, defend, and hold harmless, to the full extent
of the law, Sky Harvest and the Selling Shareholders from, against, for, and in
respect of any and all Losses asserted against, relating to, imposed upon, or
incurred by Sky Harvest and the Selling Shareholders by reason of, resulting
from, based upon or arising out of: 

	 	(a) 	
      the breach by KWC of any representation or warranty of
      KWC contained in or made pursuant to this Agreement, any KWC document or
      any certificate or other instrument delivered pursuant to this Agreement;
      or

	 	 	 
	 	(b) 	
      the breach or partial breach by KWC of any covenant or
      agreement of KWC made in or pursuant to this Agreement, any KWC document
      or any certificate or other instrument delivered pursuant to this
      Agreement.

12.5      Limitation on
Indemnity. Any party entitled to indemnification under Section 12 will only
be entitled to indemnification in respect of any Losses after the aggregate
amount of such Losses exceeds $50,000, at which point the indemnified party will
be entitled to recover the entire amount of such Losses from the first dollar
(including the first $50,000). 

12.6      Additional Indemnity from
Selling Shareholders. In addition to the indemnification provisions set out
in Section 12.3, and for a period of one (1) year from the Closing Date, the
Selling Shareholders will each, severally, and not jointly and severally,
indemnify, defend, and hold harmless, to the full extent of the law, KWC from,
against, for, and in respect of any and all known or unknown liabilities,
excluding those set out in Schedule H, incurred and brought forth after the
Closing Date, including legal proceedings brought against Sky Harvest, which
liabilities were incurred, arose or relate to any matter that occurred prior to
the Closing Date to the extent that such liabilities exceed $50,000 in any given
year; provided, however, the aggregate indemnification obligations of the
Selling Shareholders will be limited to $500,000. 

12.7      Indemnification
Procedures. If any action will be brought against any party in respect of
which indemnity may be sought pursuant to this Agreement (the “Indemnified
Party”), such Indemnified Party will promptly notify the party from whom
indemnity is being sought (the “Indemnifying Party”) in writing, and the
Indemnifying Party will have the right to assume the defence thereof with
counsel of its own choosing. Any Indemnified Party will have the right to employ
separate counsel in any such action and participate in the defence thereof, but
the fees and expenses of such counsel will be at the expense of such Indemnified
Party except to the extent that the employment thereof has been specifically
authorized by the Indemnifying Party in writing, the Indemnifying Party has
failed after a reasonable period of time to assume such defence and to employ
counsel or in such action there is, in the reasonable opinion of such separate
counsel, a material conflict on any material issue between the position of the
Indemnifying Party and the position of such Indemnified Party. The Indemnifying
Party will not be liable to any Indemnified Party under this Section 12 for any
settlement by an Indemnified Party effected without the Indemnifying Party’s
prior written consent, which consent will not be unreasonably withheld or
delayed; or to the extent, but only to the extent that a loss, claim, damage or
liability is attributable to any Indemnified Party’s indemnification pursuant to
this Section 12.

13.      
 Certain Rights of KWC to Acquire Exchangeable
Shares 

13.1      KWC Liquidation Call
Right. 

	 	(a) 	
      KWC will have the overriding right (the “Liquidation
      Call Right”), in the event of and notwithstanding the proposed
      liquidation, dissolution or winding-up of Exchangeco pursuant
  to

- 24 - 

	 		
      Article 5 of the Exchangeable Share Provisions, to
      purchase from all but not less than all of the holders of Exchangeable
      Shares (other than any holder of Exchangeable Shares which is KWC or an
      Affiliate of KWC) on the Liquidation Date all but not less than all of the
      Exchangeable Shares held by each such holder on payment by KWC of an
      amount per share (the “Liquidation Call Purchase Price”) equal to
      the Current Market Price of a KWC Common Share on the last Business Day
      prior to the Liquidation Date, which will be satisfied in full by KWC
      causing to be delivered to such holder one KWC Common Share for each such
      Exchangeable Share, plus, to the extent not paid by Exchangeco, an
      additional amount equivalent to the full amount of all declared and unpaid
      dividends on each such Exchangeable Share held by such holder on any
      dividend record date which occurred prior to the date of purchase by KWC
      (the “Dividend Amount”). In the event of the exercise of the
      Liquidation Call Right by KWC, each holder (other than KWC or Affiliates
      of KWC) will be obligated to sell all but not less than all of the
      Exchangeable Shares held by such holder to KWC on the Liquidation Date on
      payment by KWC to the holder of the Liquidation Call Purchase Price for
      each such share, and Exchangeco will have no obligation to pay the
      Liquidation Amount of such shares so purchased by KWC.

	 	 	 
	 	(b) 	
      To exercise the Liquidation Call Right, KWC must notify
      Exchangeco of KWC’s intention to exercise such right at least twenty days
      before the Liquidation Date in the case of a voluntary liquidation,
      dissolution or winding-up of Exchangeco and at least five Business Days
      before the Liquidation Date in the case of an involuntary liquidation,
      dissolution or winding-up of Exchangeco. Exchangeco will notify the
      holders of Exchangeable Shares as to whether or not KWC has exercised the
      Liquidation Call Right forthwith after the expiry of the period during
      which the same may be exercised by KWC. If KWC exercises the Liquidation
      Call Right, then on the Liquidation Date KWC will purchase and the holders
      of the Exchangeable Shares (other than KWC or Affiliates of KWC) will sell
      all but not less than all of the Exchangeable Shares held by such holders
      for a price per share equal to the Liquidation Call Purchase
  Price.

	 	 	 
	 	(c) 	
      For the purposes of completing the purchase of the
      Exchangeable Shares pursuant to the Liquidation Call Right, KWC will
      deposit with Exchangeco, on or before the Liquidation Date, certificates
      representing the aggregate number of KWC Common Shares deliverable by KWC
      and a cheque or cheques of KWC payable at par at any branch of the bankers
      of KWC representing the aggregate Dividend Amount in payment of the total
      Liquidation Call Purchase Price, less any amounts withheld pursuant to
      Section 14.11. Provided that KWC has complied with the immediately
      preceding sentence, on and after the Liquidation Date, the rights of each
      holder of Exchangeable Shares will be limited to receiving such holder’s
      proportionate part of the total Liquidation Call Purchase Price payable by
      KWC upon presentation and surrender by the holder of certificates
      representing the Exchangeable Shares held by such holder and the holder
      will on and after the Liquidation Date be considered and deemed for all
      purposes to be the holder of the KWC Common Shares to which it is
      entitled. Upon surrender to Exchangeco of a certificate or certificates
      representing Exchangeable Shares, together with such other documents and
      instruments as may be required to effect a transfer of Exchangeable Shares
      under the SBCA and the by-laws of Exchangeco and any such additional
      documents and instruments as Exchangeco may reasonably require, the holder
      of such surrendered certificate or certificates will be entitled to
      receive in exchange therefore, and Exchangeco on behalf of KWC will
      deliver to such holder, certificates representing the KWC Common Shares to
      which the holder is entitled and a cheque or cheques of KWC payable at par
      at any branch of the bankers of KWC in payment of the Dividend Amount,
      less any amounts withheld pursuant to Section 14.11. If KWC does not
      exercise the Liquidation Call Right in the manner described above, on the
      Liquidation Date the holders of the Exchangeable Shares will be entitled
      to receive in exchange therefor the Liquidation Amount of such shares
      pursuant to Article 5 of the Exchangeable Share
  Provisions.

13.2      KWC Redemption Call
Right. 

	 	(a) 	
      KWC will have the overriding right (the “Redemption
      Call Right”), notwithstanding the proposed redemption of the
      Exchangeable Shares by Exchangeco pursuant to Article 7 of the
      Exchangeable Share Provisions, to purchase from all but not less than all
      of the holders of

- 25 - 

	 		
      Exchangeable Shares (other than any holder of
      Exchangeable Shares which is KWC or an Affiliate of KWC) on the Redemption
      Date all but not less than all of the Exchangeable Shares held by each
      such holder on payment by KWC to each holder of an amount per Exchangeable
      Share (the “Redemption Call Purchase Price”) equal to the Current
      Market Price of a KWC Common Share on the last Business Day prior to the
      Redemption Date, which will be satisfied in full by KWC causing to be
      delivered to such holder one share of KWC Common Share, plus the Dividend
      Amount, for each Exchangeable Share redeemed. In the event of the exercise
      of the Redemption Call Right by KWC, each holder (other than KWC or
      Affiliates of KWC) will be obligated to sell all but not less than all the
      Exchangeable Shares held by such holder to KWC on the Redemption Date on
      payment by KWC to the holder of the Redemption Call Purchase Price for
      each such share, and Exchangeco will have no obligation to redeem such
      shares so purchased by KWC.

	 	 	 
	 	(b) 	
      To exercise the Redemption Call Right, KWC must notify
      Exchangeco of KWC’s intention to exercise such right at least 60 days
      before the Redemption Date, except in the case of a redemption occurring
      as a result of a Parent Control Transaction, an Exchangeable Share Voting
      Event or an Exempt Exchangeable Share Voting Event, in which case KWC will
      so notify Exchangeco on or as soon as practicable before the Redemption
      Date. Exchangeco will notify the holders of the Exchangeable Shares as to
      whether or not KWC has exercised the Redemption Call Right forthwith after
      the expiry of the period during which the same may be exercised by KWC. If
      KWC exercises the Redemption Call Right, on the Redemption Date, KWC will
      purchase and the holders (other than KWC or Affiliates of KWC) will sell
      all but not less than all of the Exchangeable Shares held by such holders
      for a price per share equal to the Redemption Call Purchase
  Price.

	 	 	 
	 	(c) 	
      For the purposes of completing the purchase of the
      Exchangeable Shares pursuant to the Redemption Call Right, KWC will
      deposit with Exchangeco, on or before the Redemption Date, certificates
      representing the aggregate number of shares of KWC Common Shares
      deliverable by KWC and a cheque or cheques of KWC payable at par at any
      branch of the bankers of KWC representing the aggregate Dividend Amount in
      payment of the total Redemption Call Purchase Price, less any amounts
      withheld pursuant to Section 14.11. Provided that KWC has complied with
      the immediately preceding sentence, on and after the Redemption Date the
      rights of each holder of Exchangeable Shares (other than KWC or Affiliates
      of KWC) will be limited to receiving such holder’s proportionate part of
      the total Redemption Call Purchase Price payable by KWC upon presentation
      and surrender by the holder of certificates representing the Exchangeable
      Shares held by such holder and the holder will on and after the Redemption
      Date be considered and deemed for all purposes to be the holder of the KWC
      Common Share to which it is entitled. Upon surrender to Exchangeco of a
      certificate or certificates representing Exchangeable Shares, together
      with such other documents and instruments as may be required to effect a
      transfer of Exchangeable Shares under the SBCA and the by-laws of
      Exchangeco and such additional documents and instruments as Exchangeco and
      the KWC may reasonably require, the holder of such surrendered certificate
      or certificates will be entitled to receive in exchange therefor, and
      Exchangeco on behalf of KWC will deliver to such holder, certificates
      representing the KWC Common Shares to which the holder is entitled and a
      cheque or cheques of KWC payable at par at any branch of the bankers of
      KWC in payment of the Dividend Amount, less any amounts withheld pursuant
      to Section 14.11. If KWC does not exercise the Redemption Call Right in
      the manner described above, on the Redemption Date the holders of the
      Exchangeable Shares will be entitled to receive in exchange therefor the
      Redemption Price of such shares pursuant to Article 7 of the Exchangeable
      Share Provisions.

14.      
 Miscellaneous Provisions 

14.1      Effectiveness of
Representations; Survival. Each party is entitled to rely on the
representations, warranties and agreements of each of the other parties and all
such representation, warranties and agreement will be effective regardless of
any investigation that any party has undertaken or failed to undertake. Unless
otherwise stated in this Agreement, and except for instances of fraud, the
representations, warranties and agreements will survive the Closing Date and
continue in full force and effect until one (1) year after the Closing Date.

- 26 - 

14.2      Further Assurances.
Each of the parties hereto will co-operate with the others and execute and
deliver to the other parties hereto such other instruments and documents and
take such other actions as may be reasonably requested from time to time by any
other party hereto as necessary to carry out, evidence, and confirm the intended
purposes of this Agreement. 

14.3      Amendment. This
Agreement may not be amended except by an instrument in writing signed by each
of the parties. 

14.4      Expenses. KWC and Sky
Harvest will bear their respective costs incurred in connection with the
preparation, execution and performance of this Agreement and the Transaction
contemplated hereby, including all fees and expenses of their respective agents,
representatives and accountants, provided that if the Closing does not occur on
or prior to September 1, 2009 solely due to the actions or inactions of KWC,
including but not limited to failure by KWC to obtain any regulatory or
shareholder approvals, then KWC will be responsible for the costs incurred by
Sky Harvest in furtherance of and closing of the Transaction after September 1,
2009.

14.5      Entire Agreement.
This Agreement, the Schedules and the other documents in connection with this
transaction contain the entire agreement between the parties with respect to the
subject matter hereof and supersede all prior arrangements and understandings,
both written and oral, expressed or implied, with respect thereto. Any preceding
correspondence or offers are expressly superseded and terminated by this
Agreement. 

14.6      Notices. All notices
and other communications required or permitted under this Agreement must be in
writing and will be deemed given if sent by personal delivery, faxed with
electronic confirmation of delivery, internationally-recognized express courier
or registered or certified mail (return receipt requested), postage prepaid, to
the parties at the following addresses (or at such other address for a party as
will be specified by like notice): 

If to Sky Harvest: 

Suite #617 – 666 Burrard Street,

Vancouver, British Columbia, V6C 3P6

Attention:        Secretary

Facsimile:         (604) 601-2070

With a copy (which will not constitute
notice) to: 

McDougall Gauley LLP 
1500 – 1881
Scarth Street 
Regina, Saskatchewan, S4P 4K9 

Attention:        Mark Yemen

Telephone:      (306) 565-5186

Facsimile:         (306) 359-0785

If to any of the Selling Shareholders
to the addresses set forth for such Selling Shareholders in the Sky Harvest
shareholder register.

If to KWC: 

Suite #617 – 666 Burrard Street,

Vancouver, British Columbia, V6C 3P6

Attention:        Secretary

Facsimile:         (604) 601-2070

- 27 - 

With a copy (which will not constitute
notice) to: 

Clark Wilson LLP 
Barristers &
Solicitors 
Suite 800 – 885 West Georgia Street 
Vancouver, British
Columbia, Canada 
V6C 3H1 

Attention:        Bernard
Pinsky 
Telephone:      (604) 643-3153

Facsimile:         (604) 687-6314

If to Exchangeco: 

Suite #617 – 666 Burrard Street,

Vancouver, British Columbia, V6C 3P6

Attention:        Secretary

Facsimile:         (604) 601-2070

With a copy (which will not constitute
notice) to: 

Clark Wilson LLP 
Barristers &
Solicitors 
Suite 800 – 885 West Georgia Street 
Vancouver, British
Columbia, Canada 
V6C 3H1 

Attention:        Bernard
Pinsky 
Telephone:      (604) 643-3153

Facsimile:         (604) 687-6314

All such notices and other communications will be deemed to
have been received: 

	 	(a) 	
      in the case of personal delivery, on the date of such
      delivery;

	 	 	 
	 	(b) 	
      in the case of a fax, when the party sending such fax has
      received electronic confirmation of its delivery;

	 	 	 
	 	(c) 	
      in the case of delivery by internationally-recognized
      express courier, on the business day following dispatch; and

	 	 	 
	 	(d) 	
      in the case of mailing, on the fifth business day
      following mailing.

14.7      Headings. The
headings contained in this Agreement are for convenience purposes only and will
not affect in any way the meaning or interpretation of this Agreement. 

14.8      Benefits. This
Agreement is and will only be construed as for the benefit of or enforceable by
those Persons party to this Agreement. 

14.9      Severability. Each of
the provisions contained in this Agreement is distinct and severable and a
declaration of invalidity, illegality or unenforceability of any such provision
or part thereof by a court of competent jurisdiction shall not affect the
validity or enforceability of any other provisions of this Agreement or of such
provisions or part thereof in any other jurisdiction. 

- 28 - 

14.10     Assignment. This Agreement
may not be assigned (except by operation of law) by any party without the
consent of the other parties. 

14.11     Withholding Rights.
Exchangeco, KWC and Sky Harvest will be entitled to deduct and withhold from any
dividend or consideration otherwise payable to any holder of KWC Common Shares
or Exchangeable Shares, such amounts as Exchangeco, KWC or Sky Harvest is
required or permitted to deduct and withhold with respect to such payment under
the Income Tax Act, the United States Internal Revenue Code of 1986 or any
provision of provincial, state, local or foreign tax law, in each case, as
amended. To the extent that amounts are so withheld, such withheld amounts will
be treated for all purposes hereof as having been paid to the holder of the
shares in respect of which such deduction and withholding was made, provided
that such withheld amounts are actually remitted to the appropriate taxing
authority. To the extent that the amount so required or permitted to be deducted
or withheld from any payment to a holder exceeds the cash portion of the
consideration otherwise payable to the holder, Exchangeco, KWC or Sky Harvest
are hereby authorized to sell or otherwise dispose of such portion of the
consideration as is necessary to provide sufficient funds to Exchangeco, KWC or
Sky Harvest, as the case may be, to enable it to comply with such deduction or
withholding requirement and Exchangeco, KWC or Sky Harvest will notify the
holder thereof and remit to the holder any unapplied balance of the net proceeds
of such sale. 

14.12     Governing Law. This
Agreement will be governed by and construed in accordance with the laws of the
Province of British Columbia applicable to contracts made and to be performed
therein. 

14.13     Construction. The language
used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rule of strict construction will be
applied against any party. 

14.14     Gender. All references to
any party will be read with such changes in number and gender as the context or
reference requires. 

14.15     Business Days. If the last
or appointed day for the taking of any action required or the expiration of any
rights granted herein will be a Saturday, Sunday or a legal holiday in the
Provinces of British Columbia or Ontario, then such action may be taken or right
may be exercised on the next succeeding day which is not a Saturday, Sunday or
such a legal holiday. 

14.16     Counterparts. This
Agreement may be executed in one or more counterparts, all of which will be
considered one and the same agreement and will become effective when one or more
counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same
counterpart. 

14.17     Independent Legal Advice.
Each of the parties acknowledges that: 

	 	(a) 	
      Clark Wilson LLP has acted as counsel only to KWC and
      Exchangeco that all other parties to this Agreement acknowledge and
      confirm that they have been advised to seek, and have sought or have
      otherwise waived, independent tax and legal advice with respect to this
      Agreement and the documents delivered pursuant thereto and that Clark
      Wilson LLP is not protecting the rights and interests of any other party
      to this Agreement; and

	 	 	 
	 	(b) 	
      McDougall Gauley LLP has acted as counsel only to Sky
      Harvest, that all other parties to this Agreement acknowledge and confirm
      that they have been advised to seek, and have sought or waived,
      independent tax and legal advice with respect to this Agreement and the
      documents delivered pursuant thereto and that Clark Wilson LLP and
      McDougall Gauley LLP are not protecting the rights and interests of any
      other party to the Agreement. To the extent that any Selling Shareholder
      declines to receive independent legal counsel in respect of this
      Agreement, such Selling Shareholder hereby waives the right, should a
      dispute later develop, to rely on its lack of independent legal counsel to
      avoid its obligations, to seek indulgences from the other parties hereto,
      or to otherwise attack, in whole or in part, the integrity of this
      Agreement and the documents related thereto.

- 29 - 

14.18     Facsimile Execution.
Delivery of an executed signature page to this Agreement by any party to this
Agreement by facsimile transmission and portable document format (.PDF) shall be
as effective as delivery of a manually executed copy of this Agreement by such
party. 

14.19     Schedules and Exhibits.
The schedules and exhibits are attached to and form part of this Agreement and
are incorporated herein. 

THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY
BLANK.

- 30 - 

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

  	KEEWATIN WINDPOWER CORP. 	 	 SKY HARVEST WINDPOWER CORP. 
	  	 	 	  	  
	By: 	/s/
        Chris Craddock 	 	By: 	/s/
        William Iny 
	  	Authorized Signatory 	 	  	Authorized Signatory 
	  	Name: Chris Craddock 	 	  	Name: William Iny 
	  	Title: President 	 	  	Title: Secretary 
	  	 	 	  	  
	  	 	 	  	  
	KEEWATIN WINDPOWER INC. 	 	  	  
	  	 	 	  	  
	By: 	/s/
        Chris Craddock 	 	  	  
	  	Authorized Signatory 	 	  	  
	  	Name: Chris Craddock 	 	  	  
	  	Title: President 	 	  	  

	  	  ) 	/s/
      Chris Craddock 
	Witness 	  ) 	CHRIS CRADDOCK 
	  	  ) 	  
	  	  ) 	/s/
      William Iny 
	Witness 	  ) 	WILLIAM INY 
	  	  ) 	  
	  	  ) 	/s/
      Greg Yanke 
	Witness 	  ) 	GREG YANKE 
	  	  ) 	  
	  	  	/s/
      Tina Iny 
	Witness 	  ) 	TINA INY 
	  	  	  
	  	  ) 	/s/
      Carole Basri 
	Witness 	  ) 	CAROLE BASRI 
	  	  ) 	  
	  	  ) 	/s/
      Michael Waggett 
	Witness 	  ) 	MICHAEL WAGGETT 
	  	  ) 	  
	  	  ) 	/s/
      Edward Gerald Bothner 
	Witness 	  ) 	EDWARD GERALD BOTHNER 
	  	  	  
	  	  ) 	/s/
      Charlotte M. Bothner 
	Witness 	  ) 	CHARLOTTE M. BOTHNER 
	  	  ) 	  
	  	  ) 	/s/
      Barrie Wells 
	Witness 	  ) 	BARRIE WELLS 
	  	  	  
	  	  ) 	/s/
      Lyle F. Bothner 
	Witness 	  ) 	LYLE F. BOTHNER 
	  	  ) 	  
	  	  ) 	/s/
      Curtiss M. Bothner 
	Witness 	  ) 	CURTISS M. BOTHNER 
	  	  	  
	  	  	/s/
      Winston C. Bothner 
	Witness 	  ) 	WINSTON C. BOTHNER 
	  	  ) 	  

- 31 - 

	  	  ) 	/s/
      Ken Howell 
	Witness 	  ) 	KEN HOWELL 
	  	  	  
	  	  ) 	/s/
      Thelma Howell 
	Witness 	  ) 	THELMA HOWELL 
	  	  ) 	  
	  	  ) 	/s/
      Doug Erickson 
	Witness 	  ) 	DOUG ERICKSON 
	  	  	  
	  	  ) 	/s/
      Jodi Erickson 
	Witness 	  ) 	JODI ERICKSON 
	  	  ) 	  
	  	  ) 	/s/
      Dean D. Erickson 
	Witness 	  ) 	DEAN D. ERICKSON 
	  	  	  
	  	  ) 	/s/
      Donald Erickson 
	Witness 	  ) 	DONALD ERICKSON 
	  	  ) 	  
	  	  ) 	/s/
      Patricia Erickson 
	Witness 	  ) 	PATRICIA ERICKSON 
	  	  	  
	  	  ) 	/s/
      Heather Erickson 
	Witness 	  ) 	HEATHER ERICKSON 
	  	  ) 	  
	  	  ) 	/s/
      Randy Bergstrom 
	Witness 	  ) 	RANDY BERGSTROM 
	  	  	  
	  	  ) 	/s/
      Shirley Bergstrom 
	Witness 	  ) 	SHIRLEY BERGSTROM 
	  	  ) 	  
	  	  ) 	/s/
      Lloyd Delparte 
	Witness 	  ) 	LLOYD DELPARTE 
	  	  	  
	  	  ) 	/s/
      Jean Delparte 
	Witness 	  ) 	JEAN DELPARTE 
	  	  ) 	  
	  	  ) 	/s/
      Jerry Hastie 
	Witness 	  ) 	JERRY HASTIE 
	  	  	  
	  	  ) 	/s/
      Paulette Hastie 
	Witness 	  ) 	PAULETTE HASTIE 
	  	  ) 	  
	  	  ) 	/s/
      Stanley N. Leppa 
	Witness 	  ) 	STANLEY N. LEPPA 
	  	  	  
	  	  ) 	/s/
      Wayne Wallace 
	Witness 	  ) 	WAYNE WALLACE 
	  	  	  
	  	  ) 	/s/
      Serena Jen Lee Tan 
	Witness 	  ) 	SERENA JEN LEE TAN 
	  	  	  
	  	  ) 	/s/
      Shirley Waggett 
	Witness 	  ) 	SHIRLEY WAGGETT 

- 32 - 

  	DAVITEX CANADA INC. 	 	P & B HOLDINGS LTD. 
	  	 	 	  	 
	By: 	/s/
        Edward Fisch 	 	By: 	/s/
        A.E. Burstein 
	  	Authorized Signatory 	 	  	Authorized Signatory 
	  	Name: Edward Fisch 	 	  	Name: A. E. Burstein 
	  	Title: President 	 	  	Title: Vice President 
	  	 	 	  	 
	  	 	 	  	 
	2033862 ONTARIO LIMITED 	 	 MODIFIN INC. 
	  	 	 	  	 
	By: 	/s/
        Rolf Reininghaus 	 	By: 	/s/
        Joel L. Rubinovich 
	  	Authorized Signatory 	 	  	Authorized Signatory 
	  	Name: Rolf Reininghaus 	 	  	Name: Joel L. Rubinovich 
	  	Title: President 	 	  	Title: President 
	  	 	 	  	 
	  	 	 	  	 
	PLEIN SPRUNG ENERGY PARTNERSHIP 	 	THE ISRAEL DESK LTD. 
	  	 	 	  	 
	By: 	/s/
        Hilton R. Plein 	 	By: 	/s/
        Harry Bauskin 
	  	Authorized Signatory 	 	  	Authorized Signatory 
	  	Name: Hilton R. Plein 	 	  	Name: Harry Bauskin 
	  	Title: General Partner 	 	  	Title: Director 
	  	 	 	  	 
	  	 	 	  	 
	GOH INTERNATIONAL LTD. 	 	  	 
	  	 	 	  	 
	By: 	/s/
        Harry Bauskin 	 	  	 
	  	Authorized Signatory 	 	  	 
	  	Name: Harry Bauskin 	 	  	 
	  	Title: Director 	 	  	 

SCHEDULE A 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Form of Certificate of U.S. Resident 

In connection with the issuance of common stock (the “Pubco
Shares”) of Keewatin Windpower Corp., a Nevada corporation (“Pubco”),
to the undersigned, pursuant to that certain Share Exchange Agreement dated for
reference May 11, 2009 (the “Agreement”), between Pubco and the
shareholders of Sky Harvest Windpower Corp. (“Sky Harvest”). as set out
in the Agreement (each, a “Selling Shareholder”), the undersigned Selling
Shareholder hereby agrees, acknowledges, represents and warrants that: 

1.            
it satisfies one or more of the categories of “Accredited Investors”, as defined
by Regulation D promulgated under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”), as indicated below:
(Please initial in the space provide those categories, if any, of an
“Accredited Investor” which the undersigned satisfies.) 

	________	Category 1 	
      An organization described in Section 501(c)(3) of the
      United States Internal Revenue Code, a corporation, a Massachusetts or
      similar business trust or partnership, not formed for the specific purpose
      of acquiring the Pubco Shares, with total assets in excess of U.S.
      $5,000,000. 

	 	  	
       

	________	Category 2 	
      A natural person whose individual net worth, or joint net
      worth with that person’s spouse, on the date of purchase exceeds U.S.
      $1,000,000. 

	 	  	
       

	________	Category 3 	
      A natural person who had an individual income in excess
      of U.S. $200,000 in each of the two most recent years or joint income with
      that person’s spouse in excess of U.S. $300,000 in each of those years and
      has a reasonable expectation of reaching the same income level in the
      current year. 

	 	  	
       

	________	Category 4 	
      A “bank” as defined under Section (3)(a)(2) of the U.S.
      Securities Act or savings and loan association or other institution as
      defined in Section 3(a)(5)(A) of the U.S. Securities Act acting in its
      individual or fiduciary capacity; a broker dealer registered pursuant to
      Section 15 of the Securities Exchange Act of 1934 (United States);
      an insurance company as defined in Section 2(13) of the U.S. Securities
      Act; an investment company registered under the Investment Company Act
      of 1940 (United States) or a business development company as defined
      in Section 2(a)(48) of such Act; a Small Business Investment Company
      licensed by the U.S. Small Business Administration under Section 301(c) or
      (d) of the Small Business Investment Act of 1958 (United States); a
      plan with total assets in excess of $5,000,000 established and maintained
      by a state, a political subdivision thereof, or an agency or
      instrumentality of a state or a political subdivision thereof, for the
      benefit of its employees; an employee benefit plan within the meaning of
      the Employee Retirement Income Security Act of 1974 (United States)
      whose investment decisions are made by a plan fiduciary, as defined in
      Section 3(21) of such Act, which is either a bank, savings and loan
      association, insurance company or registered investment adviser, or if the
      employee benefit plan has total assets in excess of $5,000,000, or, if a
      self-directed plan, whose investment decisions are made solely by persons
      that are accredited investors. 

	 	  	
       

	________	Category 5 	
      A private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940 (United
      States). 

	 	  	
       

	________	Category 6 	
      A director or executive officer of Pubco.
  

A-2 

	________	Category 7 	
      A trust with total assets in excess of $5,000,000, not
      formed for the specific purpose of acquiring the Shares, whose purchase is
      directed by a sophisticated person as described in Rule 506(b)(2)(ii)
      under the U.S. Securities Act. 

	 	  	
       

	________	Category 8 	
      An entity in which all of the equity owners satisfy the
      requirements of one or more of the foregoing categories.

Note that for any of the Selling Shareholders claiming to
satisfy one of the above categories of Accredited Investor may be required to
supply Pubco with a balance sheet, prior years’ federal income tax returns or
other appropriate documentation to verify and substantiate the Selling
Shareholder’s status as an Accredited Investor. 

If the Selling Shareholder is an entity which initialled
Category 8 in reliance upon the Accredited Investor categories above, state the
name, address, total personal income from all sources for the previous calendar
year, and the net worth (exclusive of home, home furnishings and personal
automobiles) for each equity owner of the said entity:
___________________________________

2.            
none of the Pubco Shares have been or will be registered under the U.S.
Securities Act, or under any state securities or “blue sky” laws of any state of
the United States, and may not be offered or sold in the United States or,
directly or indirectly, to U.S. Persons, as that term is defined in Regulation
S, except in accordance with the provisions of Regulation S or pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the U.S. Securities Act and in compliance with any applicable
state and foreign securities laws; 

3.            
the Selling Shareholder understands and agrees that offers and sales of any of
the Pubco Shares will be made only in compliance with the registration
provisions of the U.S. Securities Act or an exemption therefrom and in each case
only in accordance with applicable state and foreign securities laws; 

4.            
the Selling Shareholder understands and agrees not to engage in any hedging
transactions involving any of the Pubco Shares unless such transactions are in
compliance with the provisions of the U.S. Securities Act and in each case only
in accordance with applicable state and provincial securities laws; 

5.            
the Selling Shareholder is acquiring the Pubco Shares for investment only and
not with a view to resale or distribution and, in particular, it has no
intention to distribute either directly or indirectly any of the Pubco Shares in
the United States or to U.S. Persons; 

6.            
Pubco has not undertaken, and will have no obligation, to register any of the
Pubco Shares under the U.S. Securities Act; 

7.            
Pubco is entitled to rely on the acknowledgements, agreements, representations
and warranties and the statements and answers of the Selling Shareholder
contained in the Agreement and this Certificate, and the Selling Shareholder
will hold harmless Pubco from any loss or damage either one may suffer as a
result of any such acknowledgements, agreements, representations and/or
warranties made by the Selling Shareholder not being true and correct; 

8.            
the Selling Shareholder has been advised to consult their own respective legal,
tax and other advisors with respect to the merits and risks of an investment in
the Pubco Shares and, with respect to applicable resale restrictions, is solely
responsible (and Pubco is not in any way responsible) for compliance with
applicable resale restrictions; 

9.            
the Selling Shareholder and the Selling Shareholder’s advisor(s) have had a
reasonable opportunity to ask questions of and receive answers from Pubco in
connection with the acquisition of the Pubco Shares under the Agreement, and to
obtain additional information, to the extent possessed or obtainable by Pubco
without unreasonable effort or expense; 

10.          
the books and records of Pubco were available upon reasonable notice for
inspection, subject to certain confidentiality restrictions, by the undersigned
during reasonable business hours at its principal place of business 

A-3 

and that all documents, records and books in connection with
the acquisition of the Pubco Shares under the Agreement have been made available
for inspection by the undersigned, the Selling Shareholder’s attorney and/or
advisor(s); 

11.          
the Selling Shareholder: 

	 	(a) 	
      is knowledgeable of, or has been independently advised as
      to, the applicable securities laws of the securities regulators having
      application in the jurisdiction in which the Selling Shareholder is
      resident (the “International Jurisdiction”) which would apply to
      the acquisition of the Pubco Shares;

	 	 	 	 
	 	(b) 	
      the Selling Shareholder is acquiring the Pubco Shares
      pursuant to exemptions from prospectus or equivalent requirements under
      applicable securities laws or, if such is not applicable, the Selling
      Shareholder is permitted to acquire the Pubco Shares under the applicable
      securities laws of the securities regulators in the International
      Jurisdiction without the need to rely on any exemptions;

	 	 	 	 
	 	(c) 	
      understands and agrees that the applicable securities
      laws of the authorities in the International Jurisdiction do not require
      Pubco to make any filings or seek any approvals of any kind whatsoever
      from any securities regulator of any kind whatsoever in the International
      Jurisdiction in connection with the issue and sale or resale of the Pubco
      Shares; and

	 	 	 	 
	 	(d) 	
      the acquisition of the Pubco Shares by the Selling
      Shareholder does not trigger:

	 	 	 	 
	 		(i) 	
      any obligation to prepare and file a prospectus or
      similar document, or any other report with respect to such purchase in the
      International Jurisdiction; or

	 	 	 	 
	 		(ii) 	
      any continuous disclosure reporting obligation of Pubco
      in the International Jurisdiction; and

     the Selling Shareholder will, if requested by Pubco, deliver to
      Pubco a certificate or opinion of local counsel from the International
      Jurisdiction which will confirm the matters referred to in Sections 11(c) and
      11(d) above to the satisfaction of Pubco, acting reasonably; 

12.          
the Selling Shareholder (i) is able to fend for itself in connection with the
acquisition of the Pubco Shares; (ii) has such knowledge and experience in
business matters as to be capable of evaluating the merits and risks of its
prospective investment in the Pubco Shares; and (iii) has the ability to bear
the economic risks of its prospective investment and can afford the complete
loss of such investment; 

13.          
the Selling Shareholder is not aware of any advertisement of any of the Pubco
Shares and is not acquiring the Pubco Shares as a result of any form of general
solicitation or general advertising including advertisements, articles, notices
or other communications published in any newspaper, magazine or similar media or
broadcast over radio or television, or any seminar or meeting whose attendees
have been invited by general solicitation or general advertising; 

14.          
no person has made to the Selling Shareholder any written or oral
representations: 

	 	(a) 	
      that any person will resell or repurchase any of the
      Pubco Shares;

	 	 	 
	 	(b) 	
      that any person will refund the purchase price of any of
      the Pubco Shares;

	 	 	 
	 	(c) 	
      as to the future price or value of any of the Pubco
      Shares; or

	 	 	 
	 	(d) 	
      that any of the Pubco Shares will be listed and posted
      for trading on any stock exchange or automated dealer quotation system or
      that application has been made to list and post any of
  the

A-4 

Pubco Shares on any stock exchange or
automated dealer quotation system, except that currently certain market makers
make market in the common shares of Pubco on the OTC Bulletin Board; 

15.          
none of the Pubco Shares are listed on any stock exchange or automated dealer
quotation system and no representation has been made to the Selling Shareholder
that any of the Pubco Shares will become listed on any stock exchange or
automated dealer quotation system, except that currently certain market makers
make market in the common shares of Pubco on the OTC Bulletin Board; 

16.          
the Selling Shareholder is acquiring the Pubco Shares as principal for their own
account, for investment purposes only, and not with a view to, or for, resale,
distribution or fractionalization thereof, in whole or in part, and no other
person has a direct or indirect beneficial interest in the Pubco Shares;

17.          
neither the SEC nor any other securities commission or similar regulatory
authority has reviewed or passed on the merits of the Pubco Shares; 

18.          
the Selling Shareholder acknowledges and agrees that Pubco will refuse to
register any transfer of Pubco Shares not made in accordance with the provisions
of Regulation S, pursuant to registration under the U.S. Securities Act, or
pursuant to an available exemption from registration under the U.S. Securities
Act; 

19.          
Pubco has advised the Selling Shareholder that Pubco is relying on an exemption
from the prospectus and registration requirements of the applicable securities
laws (as such term is defined in the Agreement) to issue the Pubco Shares, and
the Selling Shareholder will not receive information that would otherwise be
required to be provided to the Selling Shareholder pursuant to applicable
securities laws. 

20.          
the Selling Shareholder understands and agrees that the Pubco Shares will bear
the following legend: 

  
    
      “NONE OF THE SECURITIES REPRESENTED HEREBY HAVE
        BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
        COMMISSION OF ANY STATE, AND WERE ISSUED IN RELIANCE UPON AN EXEMPTION
        FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933
        ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
        TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT OR PURSUANT
        TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
        REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE
        STATE SECURITIES LAWS.” 

    

  

A-5 

21.          
the address of the Selling Shareholder included herein is the sole address of
the Selling Shareholder as of the date of this certificate. 

IN WITNESS WHEREOF, I have executed this Certificate of U.S.
Resident 

	If a Corporation, Partnership or Other Entity: 	 	If an Individual: 
	 	 	 
	 	 	 
	Print or Type Name of Entity 	 	Signature 
	 	 	 
	 	 	 
	Signature of Authorized Signatory 	 	Print or Type Name 
	 	 	 
	 	 	 
	Type of Entity 	 	Social Security/Tax I.D. Number

SCHEDULE B 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Canadian Resident Shareholders

  	     
                       Column I
      	Column II 	Column III 	Column IV 
	

        Name and Address of Sky 
Harvest Shareholder 	Number of Sky Harvest 

        Common Shares held 
before
      Closing 	Number of 

        Exchangeable Shares 
to be received 	Number of KWC Shares to be 

        received on exercise of
      
Exchangeable Share 
	Chris Craddock
      
2159 Greylynn Crescent 
North Vancouver, BC 
V7J 2X6 	

3,000,000 
	

4,500,000 
	

4,500,000 

	William Iny
      
1810 – 250th Street 
Aldergrove, BC 
V4W 2E8 	

3,111,000 
	

4,666,500 
	

4,666,500 

	Greg Yanke
      
Suite #617 – 666 Burrard 
Street, Vancouver, British 
Columbia,
      V6C 3P6 	

3,272,344 
	

4,908,516 
	

4,908,516 

	Michael Waggett
      
1645 Harbour Drive 
Coquitlam, BC 
V3J 5V7 	

150,000 
	

225,000 
	

225,000 

	Edward Gerald
      Bothner 
PO Box 283 
Beechy, SK S0L 0C0 	
50,000 
	
75,000 
	
75,000 

	Charlotte M.
      Bothner 
Po Box 283 
Beechy, SK S0L 0C0 	
50,000 
	
75,000 
	
75,000 

	Barrie Wells
      
526 21st Street West 
North Vancouver, BC 
V7M 1Z8 	

40,000 
	

60,000 
	

60,000 

	Lyle F. Bothner
      
10 Matheson Crescent 
Yorkton, SK 
S3N 3M3 	

10,000 
	

15,000 
	

15,000 

	Curtiss M. Bothner
      
PO Box 283 
Beechy, SK S0L 0C0 	
10,000 
	
15,000 
	
15,000 

	Winston C. Bothner
      
PO Box 283 
Beechy, SK S0L 0C0 	
10,000 
	
15,000 
	
15,000 

B-2 

  	Column I
      	Column II 	Column III 	Column IV 
	

        Name and Address of Sky 
Harvest Shareholder 	Number of Sky Harvest 

        Common Shares held 
before
      Closing 	Number of 

        Exchangeable Shares 
to be received 	Number of KWC Shares to be 

        received on exercise of
      
Exchangeable Share 
	Ken Howell and
      Thelma 
Howell, joint holders 
P.O. Box 70 
Birsay, SK S0L 0G0
	50,000 	75,000 	75,000 
	Doug Erickson and
      Jodi 
Erickson, joint holders 
PO Box 1795 
Rosetown, SK S0L 2V0
    	15,000 	22,500 	22,500 
	Dean D. Erickson
      
PO Box 1493 
Rosetown, SK S0L 2V0 	50,000 	75,000 	75,000 
	Donald Erickson
      and Patricia 
Erickson, joint holders 
PO Box 94 
Birsay, SK S0L
      0G0 	60,000 	90,000 	90,000 
	Heather Erickson
      
PO Box 1493 
Rosetown, SK S0L 2V0 	5,000 	7,500 	7,500 
	Randy Bergstrom
      and 
Shirley Bergstrom, joint holders 
PO Box 33 
Birsay, SK S0L
      0G0 	50,000 	75,000 	75,000 
	Lloyd Delparte and
      Jean 
Delparte, joint holders 
PO Box 177 
Macrorie, SK S0L 2E0
    	50,000 	75,000 	75,000 
	Jerry Hastie and
      Paulette 
Hastie, joint holders 
307 Nemeiben Rd, 
Saskatoon, SK,
      S7J 4S7 	25,000 	37,500 	37,500 
	Stanley N. Leppa
      
PO Box 96 
Macrorie, SK S0L 2E0 	5,000 	7,500 	7,500 
	Wayne Wallace
      
1299 Evelyn Street 
North Vancouver, B.C. 
V7K 3A7 	50,000 	75,000 	75,000 
	Davitex Canada
      Inc. 
1 Post Road, Suite 203 
Toronto, ON M3B 3R4 	200,000 	300,000 	300,000 

B-3 

  	Column I
      	Column II 	Column III 	Column IV 
	

        Name and Address of Sky 
Harvest Shareholder 	Number of Sky Harvest 

        Common Shares held 
before
      Closing 	Number of 

        Exchangeable Shares 
to be received 	Number of KWC Shares to be 

        received on exercise of
      
Exchangeable Share 
	2033862 Ontario
      Limited 
313 Indian Valley Trail 
Mississauga, ON L5G 2K9 	400,000 	600,000 	600,000 
	Mondifin Inc.
      
70 Rosehill Ave., Apt 404 
Toronto, ON M4T 2W7 	80,000 	120,000 	120,000 
	The Israel Desk
      Ltd. 
Harry Bauskin 
10 Kenneth Ave 
Toronto, ON M2N 6K6 	90,000 	135,000 	135,000 
	Shirley Waggett
      
1645 Harbour Drive 
Coquitlam, BC 
V3J 5V7 	100,000 	150,000 	150,000 
	Total 	10,933,344 	16,400,016 	16,400,016 

B-4 

Non-Canadian Resident Shareholders

  	Column I
      	Column II 	Column III 
	

        Name and Address of Sky Harvest 
Shareholder 	Number of Sky Harvest Common Shares 

        held before Closing
      
	Number of KWC Common Shares 

        to be received 

	Tina Iny 
257
      Harmon Avenue 
Fort Lee, NJ, USA 07024 	5,000 	7,500 
	Carole Basri
      
B303 Mercer Street 
New York, NY, USA 10003 	2,000 	3,000 
	P & B Holdings
      Ltd. 
PO Box F42683, Chancery Court, 
The Mall 
Freeport, Bahamas
    	200,000 	300,000 
	Serena Jen Lee Tan
      
38 "G", Tower 11 
Caribbean Coast, Tung Chung, 
Hong Kong 	50,000 	75,000 
	Plein Sprung
      Energy Partnership 
3285 RFD 
Long Grove, IL, USA 60047 	140,000 	210,000 
	GOH International
      Ltd. 
Tortola BVI 
British Virgin Islands 	110,000 	165,000 
	Mondifin Inc.
      
70 Rosehill Ave., Apt 404 
Toronto, ON M4T 2W7 	120,000 	180,000 
	Total 	627,000 	940,500 

SCHEDULE C 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Sky Harvest Financial Statements 

Sky Harvest Windpower Corporation 
(A Development Stage
Company) 

May 31, 2008 

 

 

	  	Index 
	 	 
	Report
      of Independent Registered Public Accounting Firm 	F–1
      
	 	 
	Balance
      Sheets 	F–2
      
	 	 
	Statements
      of Operations 	F–3
      
	 	 
	Statements
      of Cash Flows 	F–4
      
	 	 
	Statement
      of Stockholders’ Equity 	F–5
      
	 	 
	Notes
      to the Financial Statements 	F–6
      

C-2 

Report of Independent Registered Public Accounting
Firm 

To the Directors and Stockholders 
Sky Harvest Windpower
Corporation 
(A Development Stage Company) 

We have audited the accompanying balance sheets of Sky Harvest
Windpower Corporation (A Development Stage Company) as of May 31, 2008 and 2007,
and the related statements of operations, cash flows and stockholders' equity
for the years then ended and accumulated for the period from September 21, 2005
(Date of Inception) to May 31, 2008. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits. 

We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of Sky Harvest
Windpower Corporation (A Development Stage Company) as of May 31, 2008 and 2007,
and the results of its operations and its cash flows for the years then ended
and accumulated for the period September 21, 2005 (Date of Inception) to May 31,
2008 in conformity with accounting principles generally accepted in the United
States. 

The accompanying financial statements have been prepared
assuming the Company will continue as a going concern. As discussed in Note 1 to
the financial statements, the Company has never generated any revenue and has
incurred operating losses since inception. These factors raise substantial doubt
about the Company’s ability to continue as a going concern. Management’s plans
in regard to these matters are also discussed in Note 1. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty. 

/s/ MANNING ELLIOTT LLP 

Chartered Accountants 

Vancouver, Canada 

April 6, 2009 

C-3 

Sky Harvest Windpower Corporation
 (A Development Stage
Company) 
Balance Sheets 
(Expressed in Canadian Dollars) 

	  	 	May 31, 	 	 	May 31, 	 
	  	 	2008 	 	 	2007 	 
	  	 	$	 	 	$	 
	  	 	  	 	 	  	 
	ASSETS 	 	  	 	 	  	 
	  	 	  	 	 	  	 
	Current Assets 	 	  	 	 	  	 
	     Cash and cash equivalents 	 	136,209 	 	 	463,006 	 
	     Amounts receivable 	 	1,059 	 	 	8,152 	 
	     Due from related party (Note 6) 	 	2,500 	 	 	– 	 
	     Prepaid expenses 	 	14,662 	 	 	14,663 	 
	Total Current Assets 	 	154,430 	 	 	485,821 	 
	Property and equipment, net (Note 4) 	 	61,979 	 	 	28,761 	 
	Intangible assets,
      net (Note 5) 	 	1,516
    	 	 	2,372
    	 
	Total Assets 	 	217,925 	 	 	516,954 	 
	  	 	  	 	 	  	 
	LIABILITIES AND STOCKHOLDERS’ EQUITY 	 	  	 	 	  	 
	Liabilities 	 	  	 	 	  	 
	     Accounts payable 	 	8,375 	 	 	91,827 	 
	     Accrued liabilities 	 	– 	 	 	525 	 
	     Due to related party (Note 6) 	 	736 	 	 	4,195 	 
	Total Liabilities
    	 	9,111
    	 	 	96,547 	 
	Contingencies (Note 1) 	 	  	 	 	  	 
	Stockholders’ Equity 	 	  	 	 	  	 
	Preferred Stock: (Note 7) 	 	  	 	 	  	 
	       Authorized: unlimited Class E
      redeemable, retractable shares, no par value 	 	  	 	 	  	 
	       Issued and
      outstanding: None 	 	– 	 	 	– 	 
	Common Stock: (Note 7) 	 	  	 	 	  	 
	       Authorized:
      unlimited Class A, voting shares, no par value 	 	  	 	 	  	 
	       Issued and outstanding:
      11,560,344 shares 	 	1,697,034 	 	 	1,697,034 	 
	       Authorized:
      unlimited Class B, voting shares, no par value 	 	  	 	 	  	 
	       Issued and outstanding: None 	 	– 	 	 	– 	 
	       Authorized:
      unlimited Class C, non-voting shares, no par value 	 	  	 	 	  	 
	       Issued and outstanding: None 	 	– 	 	 	– 	 
	       Authorized:
      unlimited Class D, non-voting shares, no par value 	 	  	 	 	  	 
	       Issued and outstanding: None 	 	– 	 	 	– 	 
	Share Subscription Receivable 	 	(2,500	) 	 	(2,500	) 
	Deficit
      accumulated during the development stage 	 	(1,485,720	) 	 	(1,274,127	) 
	Total Stockholders’ Equity 	 	208,814 	 	 	420,407 	 
	Total Liabilities
      and Stockholders’ Equity 	 	217,925 	 	 	516,954 	 

Approved on behalf of the Board of Directors: 

	/s/ “Chris
      Craddock” 	 	/s/
      “William Iny” 
	Chris Craddock, Director 	 	William Iny, Director 

(The accompanying notes are an integral part of these financial
statements) 

C-4 

Sky Harvest Windpower Corporation 
(A Development Stage
Company) 
Statements of Operations 
(Expressed in Canadian Dollars) 

	  	 	Accumulated from 	 	 	  	 	 	  	 
	  	 	September 21, 2005 	 	 	For the Year 	 	 	For the Year 	 
	  	 	(Date of Inception) 	 	 	Ended 	 	 	Ended 	 
	  	 	to May 31, 	 	 	May 31, 	 	 	May 31, 	 
	  	 	2008 	 	 	2008 	 	 	2007 	 
	  	 	$	 	 	$	 	 	$	 
	  	 	  	 	 	  	 	 	  	 
	Expenses 	 	  	 	 	  	 	 	  	 
	   Management fees (Note 6(a)) 	 	1,102,127 	 	 	76,077 	 	 	96,050 	 
	   Development and engineering
	 	178,448 	 	 	34,628 	 	 	132,089 	 
	 
       General and administrative 	 	223,101 	 	 	109,025 	 	 	81,523 	 
	  	 	  	 	 	  	 	 	  	 
	Operating loss 	 	(1,503,676	) 	 	(219,730	) 	 	(309,662	) 
	  	 	  	 	 	  	 	 	  	 
	Other Income 	 	  	 	 	  	 	 	  	 
	  	 	  	 	 	  	 	 	  	 
	   Foreign exchange gain 	 	1,312 	 	 	1,312 	 	 	- 	 
	   Interest income 	 	16,644 	 	 	6,825 	 	 	9,820 	 
	  	 	  	 	 	  	 	 	  	 
	Net loss 	 	(1,485,720	) 	 	(211,593	) 	 	(299,842	) 
	  	 	  	 	 	  	 	 	  	 
	Net loss per common share – basic and diluted 	 	  	 	 	(0.02	) 	 	(0.03	) 
	  	 	  	 	 	  	 	 	  	 
	Weighted average number of common shares outstanding 	 	  	 	 	11,560,344 	 	 	10,911,604 	 

(The accompanying notes are an integral part of these financial
statements) 

C-5 

Sky Harvest Windpower Corporation 
(A Development Stage
Company) 
Statements of Cash Flows 
(Expressed in Canadian Dollars) 

	  	 	Accumulated from 	 	 	  	 	 	  	 
	  	 	September 21, 	 	 	  	 	 	  	 
	  	 	2005 	 	 	For the Year 	 	 	For the Year 	 
	  	 	(Date of Inception) 	 	 	Ended 	 	 	Ended 	 
	  	 	to May 31, 	 	 	May 31, 	 	 	May 31, 	 
	  	 	2008 	 	 	2008 	 	 	2007 	 
	  	 	$	 	 	$	 	 	$	 
	Operating activities 	 	  	 	 	  	 	 	  	 
	 Net loss for the period 	 	(1,485,720	) 	 	(211,593	) 	 	(299,842	) 
	  	 	  	 	 	  	 	 	  	 
	 Adjustment to reconcile net loss to net cash used in
    	 	  	 	 	  	 	 	  	 
	 operating activities: 	 	  	 	 	  	 	 	  	 
	         Depreciation 	 	4,707 	 	 	2,688 	 	 	1,642 	 
	         Shares
      issued for services 	 	900,000 	 	 	– 	 	 	– 	 
	 Changes in operating assets and liabilities: 	 	  	 	 	  	 	 	  	 
	         Amounts
      receivable 	 	(1,058	) 	 	7,094 	 	 	(8,152	) 
	         Prepaid expenses 	 	(14,663	) 	 	- 	 	 	(9,663	) 
	         Accounts
      payable and accrued liabilities 	 	8,375 	 	 	(83,977	) 	 	76,972 	 
	   
           Due to related parties 	 	(1,764	) 	 	(5,959	) 	 	8,933
    	 
	Net cash flows used in operating activities 	 	(590,123	) 	 	(291,747	) 	 	(230,110	) 
	Investing activities 	 	  	 	 	  	 	 	  	 
	   Purchase of equipment 	 	(68,202	) 	 	(35,050	) 	 	(5,255	) 
	Net cash flows
      used in investing activities 	 	(68,202	) 	 	(35,050	) 	 	(5,255	) 
	Financing activities 	 	  	 	 	  	 	 	  	 
	   Share subscription receivable 	 	(2,500	) 	 	– 	 	 	(2,500	) 
	   Proceeds from issuance of common stock 	 	797,034 	 	 	– 	 	 	690,000 	 
	Net cash flows
      provided by financing activities 	 	794,534 	 	 	– 	 	 	687,500 	 
	Increase (decrease) in cash and cash
      equivalents 	 	136,209 	 	 	(326,797	) 	 	452,135 	 
	Cash and cash
      equivalents – beginning of period 	 	–
    	 	 	463,006 	 	 	10,871 	 
	Cash and cash equivalents – end of period 	 	136,209 	 	 	136,209 	 	 	463,006 	 
	  	 	  	 	 	  	 	 	  	 
	Non cash financing activities 	 	  	 	 	  	 	 	  	 
	 Issuance of
      common shares as finders fees 	 	55,000 	 	 	– 	 	 	55,000 	 
	  	 	  	 	 	  	 	 	  	 
	Supplementary disclosures 	 	  	 	 	  	 	 	  	 
	 Interest paid 	 	– 	 	 	– 	 	 	– 	 
	 Income taxes
      paid 	 	–
    	 	 	– 	 	 	– 	 

(The accompanying notes are an integral part of these financial
statements) 

C-6 

Sky Harvest Windpower Corporation 
(A Development Stage
Company) 
Statement of Stockholders’ Equity 
(Expressed in Canadian
Dollars) 

	 	 	  	 	 	  	 	 	Deficit 	 	 	  	 
	 	 	  	 	 	  	 	 	Accumulated 	 	 	  	 
	 	 	  	 	 	  	 	 	During the 	 	 	  	 
	 	 	Common 	 	 	  	 	 	Development 	 	 	  	 
	 	 	Shares 	 	 	Amount 	 	 	Stage 	 	 	Total 	 
	 	 	# 	 	 	$	 	 	$	 	 	$	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance – September 21, 2005
      (Date of Inception) 	 	– 	 	 	– 	 	 	– 	 	 	– 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Class A shares issued to
      founders for services at $0.10 per share 	 	9,000,000 	 	 	900,000 	 	 	– 	 	 	900,000 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Class A shares issued for
      cash at $0.10 per share 	 	1,070,344 	 	 	107,034 	 	 	– 	 	 	107,034 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net loss for the period 	 	– 	 	 	– 	 	 	(974,284	) 	 	(974,284	) 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance – May, 31 2006 	 	10,070,344 	 	 	1,007,034 	 	 	(974,284	) 	 	32,750 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Class A shares issued for
      cash at $0.50 per share 	 	1,380,000 	 	 	690,000 	 	 	– 	 	 	690,000 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Class A shares issued for
      finders’ fee 	 	110,000 	 	 	55,000 	 	 	– 	 	 	55,000 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Share issuance costs 	 	– 	 	 	(55,000	) 	 	– 	 	 	(55,000	) 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Share subscription receivable
    	 	  	 	 	(2,500	) 	 	  	 	 	(2,500	) 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net loss 	 	– 	 	 	– 	 	 	(299,843	) 	 	(299,843	) 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance – May 31, 2007 	 	11,560,344 	 	 	1,694,534 	 	 	(1,274,127	) 	 	420,407 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net loss 	 	– 	 	 	– 	 	 	(211,593	) 	 	(211,593	) 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance – May 31, 2008 	 	11,560,344 	 	 	1,694,534 	 	 	(1,485,720	) 	 	208,814 	 

(The accompanying notes are an integral part of these financial
statements) 

C-7 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars) 

	1. 	
      Organization and Description of Business

	 	 	 
		
      The Company was incorporated in the Province of British
      Columbia, Canada on September 21, 2005. The Company is a Development Stage
      Company, as defined by Statement of Financial Accounting Standard (“SFAS”)
      No.7 “Accounting and Reporting for Development Stage Companies”.
      Its activities to date have been limited to capital formation,
      organization, and development of its business plan for the exploration and
      development of wind power projects in Canada.

	 	 	 
		
      These financial statements have been prepared in
      accordance with United States generally accepted accounting principles
      applicable to a going concern, which implies the Company will continue to
      realize its assets and discharge its liabilities in the normal course of
      business. The Company has never generated revenues since inception and has
      never paid any dividends and is unlikely to pay dividends or generate
      earnings in the immediate or foreseeable future. The continuation of the
      Company as a going concern is dependent upon the continued financial
      support from its shareholders, the ability of the Company to obtain
      necessary equity financing to continue operations, the successful
      exploitation of economically recoverable electricity in its wind power
      projects, and the attainment of profitable operations. As at May 31, 2008,
      the Company has accumulated losses of $1,485,720 since inception. These
      factors raise substantial doubt regarding the Company’s ability to
      continue as a going concern. These financial statements do not include any
      adjustments to the recoverability and classification of recorded asset
      amounts and classification of liabilities that might be necessary should
      the Company be unable to continue as a going concern. Management plans to
      raise additional funds through debt and equity offerings

	 	 	 
		
      The Company entered into a letter agreement dated March
      26, 2007 with Keewatin Windpower Corp. (“Keewatin”), whereby Keewatin will
      acquire 100% of the issued and outstanding common shares of the Company,
      in consideration for 17,343,516 restricted shares of Keewatin’s common
      stock. The directors of the Company are also directors and principal
      shareholders of Keewatin. The closing of this transaction is subject to
      shareholder approval.

	 	 	 
	2. 	
      Significant Accounting Polices

	 	 	 
		a) 	
      Basis of Accounting

	 	 	 
			
      These financials statements and related notes are
      presented in accordance with accounting principles generally accepted in
      the United States, and are expressed in Canadian dollars. The Company’s
      fiscal year- end is May 31.

	 	 	 
		b) 	
      Use of Estimates

	 	 	 
			
      The preparation of financial statements in conformity
      with US generally accepted accounting principles requires management to
      make estimates and assumptions that affect the reported amounts of assets
      and liabilities and disclosure of contingent assets and liabilities at the
      date of the financial statements and the reported amounts of revenues and
      expenses during the reporting period. The Company regularly evaluates
      estimates and assumptions related to useful life and recoverability of
      long-lived assets and deferred income tax asset valuation allowances. The
      Company bases its estimates and assumptions on current facts, historical
      experience and various other factors that it believes to be reasonable
      under the circumstances, the results of which form the basis for making
      judgments about the carrying values of assets and liabilities and the
      accrual of costs and expenses that are not readily apparent from other
      sources. The actual results experienced by the Company may differ
      materially and adversely from the Company’s estimates. To the extent there
      are material differences between the estimates and the actual results,
      future results of operations will be affected.

	 	 	 
		c) 	
      Basic Earnings (Loss) per Share

	 	 	 
			
      The Company computes net income (loss) per share in
      accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128
      requires presentation of both basic and diluted earnings per share (EPS)
      on the face of the income statement. Basic EPS is computed by dividing net
      income (loss) available to common shareholders (numerator) by the weighted
      average number of shares outstanding (denominator) during the period.
      Diluted EPS gives effect to all dilutive potential common shares
      outstanding during the period using the treasury stock method and
      convertible preferred stock using the if-converted method. In computing
      diluted EPS, the average stock price for the period is used in determining
      the number of shares assumed to be purchased from the exercise of stock
      options or warrants. Diluted EPS excludes all dilutive potential shares if
      their effect is anti dilutive. As at May 31, 2008 and 2007, there are no
      dilutive potential common shares.

C-8 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars) 

	2. 	
      Significant Accounting Polices (continued)

	 	 	 
		d) 	
      Cash Equivalents

	 	 	 
			
      The Company considers all highly liquid investments
      purchased with an original maturity of three months or less to be cash
      equivalents.

	 	 	 
		e) 	
      Marketable Securities

	 	 	 
			
      The Company defines marketable securities as income
      yielding securities that can be readily converted into cash. Examples of
      marketable securities include Treasury and agency obligations, commercial
      paper, corporate notes and bonds, time deposits with an original maturity
      greater than 3 months, foreign notes and certificates of deposit. We
      account for our investment in debt and equity instruments under Statement
      of Financial Accounting Standards, or SFAS, No. 115, “Accounting for
      Certain Investments in Debt and Equity Securities and Financial Accounting
      Standards Board”, or FASB, Staff Position, or FSP, SFAS No. 115-1,
      “The Meaning of Other-Than-Temporary Impairment and Its Application to
      Certain Investments”. The Company follows the guidance provided by
      EITF No. 03-1, “The Meaning of Other-Than-Temporary Impairment and Its
      Application to Certain Investments, to assess whether our investments
      with unrealized loss positions are other than temporarily impaired.
      Realized gains and losses and declines in value judged to be other than
      temporary are determined based on the specific identification method and
      are reported in other income (expense). Management determines the
      appropriate classification of such securities at the time of purchase and
      re-evaluates such classification as of each balance sheet date. As at May
      31, 2008 and 2007, the Company does not hold any marketable securities
      with a period longer than three months

	 	 	 
		f) 	
      Financial Instruments

	 	 	 
			
      The fair values of financial instruments, which include
      cash, amounts receivable, accounts payable and accrued liabilities, and
      due to/from related parties approximate their carrying values due to the
      relatively short maturity of these instruments.

	 	 	 
		g) 	
      Equipment

	 	i) 	Amortization Methods and Rates
  
	 	  	  
			
      Property and equipment is recorded at cost less
      accumulated amortization. Capitalized costs are amortized based on their
      estimated useful life on a straight line basis over three years. Costs
      included in wind equipment are under construction and will be amortized
      over their useful life on a straight-line basis once they are put into
      use. 

	 	  	
       

	 	(ii) 	
      Asset Impairment 

	 	  	
       

			
      The Company performs impairment tests on its property and
      equipment when events or changes in circumstances occur that indicate the
      carrying value of an asset may not be recoverable. Estimated future cash
      flows are calculated using estimated future prices and operating and
      capital costs on an undiscounted basis. When the carrying value of the
      property and equipment exceeds estimated future cash flows, the asset is
      impaired. An impairment loss is recorded to the extent the carrying value
      exceeds the discounted value of the estimated future cash flows.

	 	  	
       

	 	(iii) 	
      Repairs and Maintenance 

	 	  	
       

			
      Repairs and maintenance costs are charged to expense as
      incurred, except when these repairs significantly extend the life of an
      asset or result in an operating improvement. In these instances, the
      portion of these repairs relating to the betterment is capitalized as part
      of property and equipment. 

	h) 	
      Website Development Costs

	 	 
		
      The Company capitalizes website development costs in
      accordance with the American Institute of Certified Public Accountants
      (“AICPA”) Statement of Position (“SOP”) No. 98-1, “Accounting for the
      Costs of Computer Software Developed or Obtained for Internal Use” and
      Emerging Issues Task Force (EITF) No. 00-2, “Accounting for Website
      Development Costs”, whereby costs related to the preliminary project
      stage of development are expensed and costs related to the application
      development stage are capitalized. Any additional costs for upgrades and
      enhancements which result in additional functionality will be capitalized.
      Capitalized costs will be amortized based on their estimated useful life
      over three years. Internal costs related to the development of website
      content are charged to operations as incurred.

C-9 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars) 

	2. 	
      Significant Accounting Polices (continued)

	 	 	 
		i) 	
      Income Taxes

	 	 	 
			
      Potential benefits of income tax losses are not
      recognized in the accounts until realization is more likely than not. The
      Company has adopted SFAS No. 109 “Accounting for Income Taxes” as
      of its inception. Pursuant to SFAS No. 109 the Company is required to
      compute tax asset benefits for net operating losses carried forward.
      Potential benefit of net operating losses have not been recognized in
      these financial statements because the Company cannot be assured it is
      more likely than not it will utilize the net operating losses carried
      forward in future years.

	 	 	 
		j) 	
      Foreign Currency Translation

	 	 	 
			
      The Company’s functional and reporting currency is the
      Canadian dollar. Monetary assets and liabilities denominated in foreign
      currencies are translated using the exchange rate prevailing at the
      balance sheet date. Gains and losses arising on translation or settlement
      of foreign currency denominated transactions or balances are included in
      the determination of income. Foreign currency transactions are primarily
      undertaken in Canadian dollars. The Company has not, to the date of these
      financials statements, entered into derivative instruments to offset the
      impact of foreign currency fluctuations.

	 	 	 
	3. 	
      Recent Accounting Pronouncements

	 	 	 
		
      In May 2008, the Financial Accounting Standards Board
      (“FASB”) issued SFAS No. 163, “Accounting for Financial Guarantee
      Insurance Contracts – An interpretation of FASB Statement No. 60”.
      SFAS 163 requires that an insurance enterprise recognize a claim liability
      prior to an event of default when there is evidence that credit
      deterioration has occurred in an insured financial obligation. It also
      clarifies how Statement 60 applies to financial guarantee insurance
      contracts, including the recognition and measurement to be used to account
      for premium revenue and claim liabilities, and requires expanded
      disclosures about financial guarantee insurance contracts. It is effective
      for financial statements issued for fiscal years beginning after December
      15, 2008, except for some disclosures about the insurance enterprise’s
      risk-management activities. SFAS 163 requires that disclosures about the
      risk-management activities of the insurance enterprise be effective for
      the first period beginning after issuance. Except for those disclosures,
      earlier application is not permitted. The adoption of this statement is
      not expected to have a material effect on the Company’s financial
      statements.

	 	 	 
		
      In May 2008, the FASB issued SFAS No. 162, “The
      Hierarchy of Generally Accepted Accounting Principles”. SFAS 162
      identifies the sources of accounting principles and the framework for
      selecting the principles to be used in the preparation of financial
      statements of nongovernmental entities that are presented in conformity
      with generally accepted accounting principles in the United States. It is
      effective 60 days following the SEC’s approval of the Public Company
      Accounting Oversight Board amendments to AU Section 411, “The Meaning
      of Present Fairly in Conformity With Generally Accepted Accounting
      Principles”. The adoption of this statement is not expected to have a
      material effect on the Company’s financial statements.

	 	 	 
		
      In March 2008, the Financial Accounting Standards Board
      (“FASB”) issued SFAS No. 161, “Disclosures about Derivative Instruments
      and Hedging Activities – an amendment to FASB Statement No. 133”. SFAS
      No. 161 is intended to improve financial standards for derivative
      instruments and hedging activities by requiring enhanced disclosures to
      enable investors to better understand their effects on an entity's
      financial position, financial performance, and cash flows. Entities are
      required to provide enhanced disclosures about: (a) how and why an entity
      uses derivative instruments; (b) how derivative instruments and related
      hedged items are accounted for under Statement 133 and its related
      interpretations; and (c) how derivative instruments and related hedged
      items affect an entity’s financial position, financial performance, and
      cash flows. It is effective for financial statements issued for fiscal
      years beginning after November 15, 2008, with early adoption encouraged.
      The adoption of this statement is not expected to have a material effect
      on the Company’s financial statements.

	 	 	 
		
      In December 2007, the FASB issued SFAS No. 141R,
      “Business Combinations”. This statement replaces SFAS 141 and
      defines the acquirer in a business combination as the entity that obtains
      control of one or more businesses in a business combination and
      establishes the acquisition date as the date that the acquirer achieves
      control. SFAS 141R requires an acquirer to recognize the assets acquired,
      the liabilities assumed, and any noncontrolling interest in the acquiree
      at the acquisition date, measured at their fair values as of that date.
      SFAS 141R also requires the acquirer to recognize contingent consideration
      at the acquisition date, measured at its fair value at that date. This
      statement is effective for fiscal years, and interim periods within those
      fiscal years, beginning on or after December 15, 2008. Earlier adoption is
      prohibited. The adoption of this statement is not expected to have a
      material effect on the Company's financial
statements.

C-10 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars) 

	3. 	
      Recent Accounting Pronouncements (continued)

	 	 
		
      In December 2007, the FASB issued SFAS No. 160,
      “Noncontrolling Interests in Consolidated Financial Statements
      Liabilities –an Amendment of ARB No. 51”. This statement amends ARB 51
      to establish accounting and reporting standards for the Noncontrolling
      interest in a subsidiary and for the deconsolidation of a subsidiary. This
      statement is effective for fiscal years, and interim periods within those
      fiscal years, beginning on or after December 15, 2008. Earlier adoption is
      prohibited. The adoption of this statement is not expected to have a
      material effect on the Company's financial statements.

	 	 
		
      In February 2007, the Financial Accounting Standards
      Board (FASB) issued SFAS No. 159, “The Fair Value Option for Financial
      Assets and Financial Liabilities – Including an Amendment of FASB
      Statement No. 115”. This statement permits entities to choose to
      measure many financial instruments and certain other items at fair value.
      Most of the provisions of SFAS No. 159 apply only to entities that elect
      the fair value option. However, the amendment to SFAS No. 115
      “Accounting for Certain Investments in Debt and Equity Securities”
      applies to all entities with available-for-sale and trading securities.
      SFAS No. 159 is effective as of the beginning of an entity’s first fiscal
      year that begins after November 15, 2007. Early adoption is permitted as
      of the beginning of a fiscal year that begins on or before November 15,
      2007, provided the entity also elects to apply the provision of SFAS No.
      157, “Fair Value Measurements”. The adoption of this statement is
      not expected to have a material effect on the Company's financial
      statements.

	 	 
		
      In September 2006, the SEC issued Staff Accounting
      Bulletin (“SAB”) No. 108, “Considering the Effects of Prior Year
      Misstatements when Quantifying Misstatements in Current Year Financial
      Statements.” SAB No. 108 addresses how the effects of prior year
      uncorrected misstatements should be considered when quantifying
      misstatements in current year financial statements. SAB No. 108 requires
      companies to quantify misstatements using a balance sheet and income
      statement approach and to evaluate whether either approach results in
      quantifying an error that is material in light of relevant quantitative
      and qualitative factors. SAB No. 108 is effective for fiscal years ending
      after November 15, 2006. The adoption of this statement did not have a
      material effect on the Company’s financial statements.

	 	 
		
      In September 2006, the FASB issued SFAS No. 157, “Fair
      Value Measurements”. The objective of SFAS 157 is to increase
      consistency and comparability in fair value measurements and to expand
      disclosures about fair value measurements. SFAS 157 defines fair value,
      establishes a framework for measuring fair value in generally accepted
      accounting principles, and expands disclosures about fair value
      measurements. SFAS 157 applies under other accounting pronouncements that
      require or permit fair value measurements and does not require any new
      fair value measurements. The provisions of SFAS No. 157 are effective for
      fair value measurements made in fiscal years beginning after November 15,
      2007. The adoption of this statement is not expected to have a material
      effect on the Company's future reported financial position or results of
      operations.

	 	 
	4. 	
      Property and Equipment

	 	  	 	  	 	 	  	 	 	May 31, 	 	 	May 31, 	 
	 	  	 	  	 	 	  	 	 	2008 	 	 	2007 	 
	 	  	 	  	 	 	Accumulated 	 	 	Net carrying 	 	 	Net carrying 	 
	 	  	 	Cost 	 	 	Depreciation 	 	 	value 	 	 	value 	 
	 	  	 	$	 	 	$ 	 	 	$	 	 	$	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	Computer equipment 	 	4,588 	 	 	(2,801	) 	 	1,787 	 	 	3,168 	 
	 	Other equipment 	 	1,500 	 	 	(1,049	) 	 	451 	 	 	902 	 
	 	Meteorological towers 	 	59,741 	 	 	– 	 	 	59,741 	 	 	24,691 	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	  	 	65,829 	 	 	(3,850	) 	 	61,979 	 	 	28,761 	 

C-11 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars) 

	5. 	
      Intangible Assets

	 	  	 	  	 	 	  	 	 	May 31, 	 	 	May 31, 	 
	 	  	 	  	 	 	  	 	 	2008 	 	 	2007 	 
	 	  	 	  	 	 	Accumulated 	 	 	Net carrying 	 	 	Net carrying 	 
	 	  	 	Cost 	 	 	Amortization 	 	 	value 	 	 	value 	 
	 	  	 	$	 	 	$	 	 	$	 	 	$	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	Website development 	 	2,372 	 	 	(856	) 	 	1,516 	 	 	2,372 	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	  	 	2,372 	 	 	(856	) 	 	1,516 	 	 	2,372 	 

	6. 	
      Related Party Transactions

	 	 	 
		a) 	
      During the year ended May 31, 2008, the Company incurred
      $76,077 (2007 - $96,050) in management fees to directors and
    officers.

	 	 	 
		b) 	
      As at May 31, 2008, the Company owes $736 (2007 - $4,195)
      to a director of the Company. These amounts are unsecured, non-interest
      bearing and have no terms of repayment.

	 	 	 
		c) 	
      As at May 31, 2008, the Company advanced $2,500 (2007 -
      $Nil) to a director of the Company. These amounts are unsecured,
      non-interest bearing and have no terms of repayment.

	 	 	 
		
      These related party transactions are recorded at the
      exchange amount, being the amount established and agreed to by the related
      parties.

	 	 	 
	7. 	
      Stockholders’ Equity

	 	 	 
		a) 	
      Class E preferred shares shall be entitled to receive a
      non-cumulative annual dividend per share not exceeding 10% of the
      redemption price. The Company may redeem any number of the issued and
      outstanding Class E preferred shares at any time and for the redemption
      price upon 7 days’ written notice to the holder. The holder may require
      the Company to redeem any number of the issued and outstanding Class E
      preferred shares at the redemption price upon 30 days’ written notice to
      the Company.

	 	 	 
		b) 	
      During the year ended May 31, 2007, the Company issued
      1,380,000 Class A shares for cash proceeds of $690,000. In relation to
      these placements, the Company issued 110,000 shares as finders’ fees,
      valued at $55,000.

	 	 	 
	8. 	
      Income Taxes

	 	 	 
		
      The Company accounts for income taxes under SFAS No. 109,
      "Accounting for Income Taxes." Deferred income tax assets and
      liabilities are determined based upon differences between financial
      reporting and tax bases of assets and liabilities and are measured using
      the enacted tax rates and laws that will be in effect when the differences
      are expected to reverse. Income tax expense differs from the amount that
      would result from applying the Canadian federal income tax rates to
      earnings before income taxes. The Company has a non-capital loss carry
      forward of approximately $1,479,000 available to offset taxable income in
      future years which expires in fiscal 2028. Pursuant to SFAS 109, the
      potential benefit of the non-capital loss carry forward has not been
      recognized in the financial statements since the Company cannot be assured
      that it is more likely than not that such benefit will be utilized in
      future years.

	 	 	 
		
      In assessing the realization of the Company’s future
      income tax asses, management considers whether it is more likely that not
      that some portion of all of the future tax asset will not be realized. The
      ultimate realization of future tax assets is dependent upon the generation
      of taxable income during the periods in which those temporary differences
      become deductible. Management considers the scheduled reversal of future
      tax liabilities, projected future taxable income, and tax planning
      strategies in making this assessment. The amount of future tax assets
      considered realizable could change materially in the near term based on
      future taxable income during the carry-forward
period.

C-12 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars) 

	8. 	
      Income Taxes (continued)

	 	 	 
		a) 	
      Reconciliation of Tax Rates

	 	 	 
			
      The Company is subject to Canadian federal and provincial
      taxes at an approximate rate of 31% (2007 - 34%). The reconciliation of
      the provision for income taxes at the statutory rate compared to the
      Company’s income tax expense as reported is as
follows:

	  	 	May 31, 	 	 	May 31, 	 
	  	 	2008 	 	 	2007 	 
	  	 	$	 	 	$	 
	Income tax rate 	 	31% 	 	 	32.5% 	 
	Income tax recovery 	 	66,000 	 	 	97,000 	 
	Permanent differences 	 	(1,000	) 	 	(1,000	) 
	Change in tax rates 	 	(11,000	) 	 	(48,000	) 
	Valuation allowance change 	 	(54,000	) 	 	(48,000	) 
	Provision for
      income taxes 	 	– 	 	 	– 	 

The Company has recognized a valuation
allowance for the deferred income tax asset since the Company cannot be assured
that it is more likely than not that such benefit will be utilized in future
years. The valuation allowance is reviewed annually. When circumstances change
and which cause a change in management's judgment about the realizability of
deferred income tax assets, the impact of the change on the valuation allowance
is generally reflected in current income. 

	 	b) 	
      Future Income Tax Assets and Liabilities

	 	 	 
	 		
      The significant components of the Company future income
      tax assets and liabilities are as follows:

	 	  	 	May 31, 	 	 	May 31, 	 
	 	  	 	2008 	 	 	2007 	 
	 	  	 	$	 	 	$	 
	 	  	 	  	 	 	  	 
	 	Future income tax assets: 	 	  	 	 	  	 
	 	   Non capital tax losses carried forward 	 	384,000 	 	 	330,000 	 
	 	   Property and equipment 	 	1,000 	 	 	1,000 	 
	 	  	 	  	 	 	  	 
	 	Valuation allowance 	 	(385,000	) 	 	(331,000	) 
	 	  	 	  	 	 	  	 
	 	Net deferred income tax asset 	 	– 	 	 	– 	 

	 	c) 	
      Non-Capital Losses Carried Forward and Expiration
      Dates

	 	 	 
	 		
      As at May 31, 2008, the Company has non-capital losses at
      approximately $1,479,000 (2007 - $1,270,000; 2006 - $974,000) which may be
      carried forward to apply against future years income tax for Canadian
      income tax purposes, subject to final determination by taxation
      authorities and expiring in the fiscal years
ending:

	Year Incurred 	Year of Expiry 	Amount ($) 
	  	  	  
	2006 	2026 	974,000 
	2007 	2027 	296,000 
	2008 	2028 	209,000 
	  	  	  
	  	  	1,479,000 

C-13 

Sky Harvest Windpower Corporation 
(A Development Stage
Company) 

February 28, 2009 

 

 

	  	Index 
	 	 
	Balance
      Sheets 	F–1
      
	 	 
	Statements
      of Operations 	F–2
      
	 	 
	Statements
      of Cash Flows 	F–3
      
	 	 
	Notes
      to the Financial Statements 	F–4
      

C-14 

Sky Harvest Windpower Corporation 
(A Development Stage
Company) 
Balance Sheets 
(Expressed in Canadian Dollars) 

	  	 	February 28, 	 	 	May 31, 	 
	  	 	2009 	 	 	2008 	 
	  	 	$	 	 	$	 
	  	 	(unaudited) 	 	 	  	 
	  	 	  	 	 	  	 
	ASSETS 	 	  	 	 	  	 
	  	 	  	 	 	  	 
	Current Assets 	 	  	 	 	  	 
	     Cash and cash equivalents 	 	83,490 	 	 	136,209 	 
	     Short-term investments
      (Note 4) 	 	23,778 	 	 	– 	 
	     Amounts receivable 	 	180 	 	 	1,059 	 
	     Due from related party
      (Note 7 (c)) 	 	– 	 	 	2,500 	 
	   
       Prepaid expenses 	 	23,225 	 	 	14,662 	 
	Total Current Assets 	 	130,673 	 	 	154,430 	 
	Property and equipment, net (Note 5) 	 	69,109 	 	 	61,979 	 
	Intangible assets, net (Note 6) 	 	923 	 	 	1,516 	 
	Total Assets 	 	200,705 	 	 	217,925 	 
	  	 	  	 	 	  	 
	LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY 	 	  	 	 	  	 
	Liabilities 	 	  	 	 	  	 
	     Accounts payable 	 	26,774 	 	 	8,375 	 
	     Accrued liabilities 	 	13,654 	 	 	– 	 
	     Due to related party (Note 7 (b)) 	 	736 	 	 	736 	 
	     Loan payable (Note 8) 	 	254,460 	 	 	– 	 
	Total Liabilities
    	 	295,624 	 	 	9,111
    	 
	Commitments and Contingencies (Notes 1 and
      10) 	 	  	 	 	  	 
	Stockholders’ (Deficit) Equity 	 	  	 	 	  	 
	Preferred Stock: 	 	  	 	 	  	 
	       Authorized: unlimited Class E
      redeemable, retractable shares, no par value 	 	  	 	 	  	 
	       Issued and
      outstanding: None 	 	– 	 	 	– 	 
	Common Stock: (Note 9) 	 	  	 	 	  	 
	       Authorized:
      unlimited Class A, voting shares, no par value 	 	  	 	 	  	 
	       Issued and outstanding:
      11,560,344 shares 	 	1,697,034 	 	 	1,697,034 	 
	       Authorized:
      unlimited Class B, voting shares, no par value 	 	  	 	 	  	 
	       Issued and outstanding: None 	 	– 	 	 	– 	 
	       Authorized:
      unlimited Class C, non-voting shares, no par value 	 	  	 	 	  	 
	       Issued and outstanding: None 	 	– 	 	 	– 	 
	       Authorized:
      unlimited Class D, non-voting shares, no par value 	 	  	 	 	  	 
	       Issued and outstanding: None 	 	– 	 	 	– 	 
	  	 	  	 	 	  	 
	Share Subscription Receivable 	 	(2,500	) 	 	(2,500	) 
	Deficit accumulated during the development stage 	 	(1,789,453	) 	 	(1,485,720	) 
	Total
      Stockholders’ (Deficit) Equity 	 	(94,919	) 	 	208,814 	 
	Total Liabilities and Stockholders’ (Deficit) Equity 	 	200,705 	 	 	217,925 	 

Approved on behalf of the Board of Directors: 

	/s/ “Chris
      Craddock” 	 	/s/
      “William Iny” 
	Chris Craddock, Director 	 	William Iny, Director 

(The accompanying notes are an integral part of these financial
statements) 

C-15 

Sky Harvest Windpower Corporation 
(A Development Stage
Company) 
Statements of Operations 
(Expressed in Canadian Dollars)

(Unaudited) 

	  	 	Accumulated from 	 	 	  	 	 	  	 
	  	 	September 21, 2005 	 	 	Nine months 	 	 	Nine months 	 
	  	 	(Date of Inception) 	 	 	Ended 	 	 	Ended 	 
	  	 	to February 28, 	 	 	February 28, 	 	 	February 29, 	 
	  	 	2009 	 	 	2009 	 	 	2008 	 
	  	 	$	 	 	$	 	 	$	 
	  	 	  	 	 	  	 	 	  	 
	Expenses 	 	  	 	 	  	 	 	  	 
	   Management fees (Note 7(a)) 	 	1,168,252 	 	 	66,125 	 	 	50,550 	 
	   Development and engineering
	 	235,639 	 	 	57,191 	 	 	30,352 	 
	 
       General and administrative 	 	372,819 	 	 	149,718 	 	 	125,080 	 
	  	 	  	 	 	  	 	 	  	 
	Operating loss 	 	(1,776,710	) 	 	(273,034	) 	 	(205,982	) 
	  	 	  	 	 	  	 	 	  	 
	Other Income 	 	  	 	 	  	 	 	  	 
	  	 	  	 	 	  	 	 	  	 
	   Foreign exchange loss 	 	(29,648	) 	 	(30,960	) 	 	– 	 
	   Interest income 	 	16,905 	 	 	261 	 	 	13,203 	 
	  	 	  	 	 	  	 	 	  	 
	Net loss 	 	(1,789,453	) 	 	(303,733	) 	 	(192,779	) 
	  	 	  	 	 	  	 	 	  	 
	Net loss per common share – basic and diluted 	 	  	 	 	(0.03	) 	 	(0.02	) 
	  	 	  	 	 	  	 	 	  	 
	Weighted average number of common shares outstanding 	 	  	 	 	11,560,000 	 	 	11,560,000 	 

(The accompanying notes are an integral part of these financial
statements) 

C-16 

Sky Harvest Windpower Corporation 
(A Development Stage
Company) 
Statements of Cash Flows 
(Expressed in Canadian Dollars)

(Unaudited) 

	  	 	Accumulated from 	 	 	  	 	 	  	 
	  	 	September 21, 	 	 	  	 	 	  	 
	  	 	2005 	 	 	Nine months 	 	 	Nine months 	 
	  	 	(Date of Inception) 	 	 	Ended 	 	 	Ended 	 
	  	 	to February 28, 	 	 	February 28, 	 	 	February 29, 	 
	  	 	2009 	 	 	2009 	 	 	2008 	 
	  	 	$	 	 	$	 	 	$	 
	Operating activities 	 	  	 	 	  	 	 	  	 
	 Net loss for the period 	 	(1,789,453	) 	 	(303,733	) 	 	(192,779	) 
	  	 	  	 	 	  	 	 	  	 
	 Adjustment to reconcile net loss to net
      cash used in 	 	  	 	 	  	 	 	  	 
	   operating
      activities: 	 	  	 	 	  	 	 	  	 
	       
       Depreciation 	 	6,665 	 	 	1,958 	 	 	1,568 	 
	       
       Shares issued for services 	 	900,000 	 	 	– 	 	 	– 	 
	 Changes in operating assets and
      liabilities: 	 	  	 	 	  	 	 	  	 
	       
       Prepaid expenses 	 	(23,225	) 	 	(8,562	) 	 	(2,551	) 
	         Accrued
      interests 	 	(180	) 	 	879 	 	 	– 	 
	       
       Accounts payable and accrued liabilities 	 	40,428 	 	 	32,052 	 	 	(93,253	) 
	         Due to related parties 	 	36
	 	 	2,500
    	 	 	(9,855	) 
	Net cash flows used in operating activities 	 	(865,729	) 	 	(274,906	) 	 	(296,870	) 
	Investing activities 	 	  	 	 	  	 	 	  	 
	   Purchase of
      equipment 	 	(76,697	) 	 	(8,495	) 	 	(35,049	) 
	   Purchase of short term investment 	 	(23,778	) 	 	(23,778	) 	 	– 	 
	Net cash flows used in investing activities 	 	(100,475	) 	 	(32,273	) 	 	(35,049	) 
	  	 	  	 	 	  	 	 	  	 
	Financing activities 	 	  	 	 	  	 	 	  	 
	   Loan payable 	 	254,460 	 	 	254,460 	 	 	– 	 
	   Share
      subscription receivable 	 	(2,500	) 	 	– 	 	 	– 	 
	   Proceeds from issuance of common stock 	 	797,734 	 	 	– 	 	 	– 	 
	Net cash flows provided by financing activities 	 	1,049,694 	 	 	254,460 	 	 	– 	 
	Increase (decrease) in cash and cash
      equivalents 	 	83,490 	 	 	(52,719	) 	 	(331,919	) 
	Cash and cash equivalents – beginning of period 	 	– 	 	 	136,209 	 	 	463,006 	 
	Cash
      and cash equivalents – end of period 	 	83,490 	 	 	83,490 	 	 	131,087 	 
	  	 	  	 	 	  	 	 	  	 
	Non cash financing activities 	 	  	 	 	  	 	 	  	 
	 Issuance of common shares as finders fees 	 	55,000 	 	 	– 	 	 	– 	 
	  	 	  	 	 	  	 	 	  	 
	Supplementary disclosures 	 	  	 	 	  	 	 	  	 
	 Interest paid 	 	– 	 	 	– 	 	 	– 	 
	 Income taxes paid 	 	– 	 	 	– 	 	 	– 	 

(The accompanying notes are an integral part of these financial
statements) 

C-17 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars)

(Unaudited) 

	1. 	
      Organization and Description of Business

	 	 
		
      The Company was incorporated in the Province of British
      Columbia, Canada on September 21, 2005. The Company is a Development Stage
      Company, as defined by Statement of Financial Accounting Standard (“SFAS”)
      No.7 “Accounting and Reporting for Development Stage Companies”.
      Its activities to date have been limited to capital formation,
      organization, and development of its business plan for the exploration and
      development of wind power projects in Canada.

	 	 
		
      These financial statements have been prepared in
      accordance with United States generally accepted accounting principles
      applicable to a going concern, which implies the Company will continue to
      realize its assets and discharge its liabilities in the normal course of
      business. The Company has never generated revenues since inception and has
      never paid any dividends and is unlikely to pay dividends or generate
      earnings in the immediate or foreseeable future. The continuation of the
      Company as a going concern is dependent upon the continued financial
      support from its shareholders, the ability of the Company to obtain
      necessary equity financing to continue operations, the successful
      exploitation of economically recoverable electricity in its wind power
      projects, and the attainment of profitable operations. As at February 28,
      2009, the Company has accumulated losses of $1,789,453 since inception.
      These factors raise substantial doubt regarding the Company’s ability to
      continue as a going concern. These financial statements do not include any
      adjustments to the recoverability and classification of recorded asset
      amounts and classification of liabilities that might be necessary should
      the Company be unable to continue as a going concern. Management plans to
      raise additional funds through debt and equity offerings

	 	 
		
      The Company entered into a share exchange agreement dated
      April 21, 2009 with Keewatin Windpower Corp. (“Keewatin”), whereby
      Keewatin will acquire 100% of the issued and outstanding common shares of
      the Company, in consideration for 17,340,516 restricted shares of
      Keewatin’s common stock. The directors of the Company are also directors
      and principal shareholders of Keewatin. The closing of this transaction is
      subject to shareholder approval.

	 	 
	2. 	
      Significant Accounting
Polices

	 	a) 	
      Basis of Accounting

	 	 	 
	 		
      These financials statements and related notes are
      presented in accordance with accounting principles generally accepted in
      the United States, and are expressed in Canadian dollars. The Company’s
      fiscal year- end is May 31.

	 	 	 
	 	b) 	
      Interim Financial Statements

	 	 	 
	 		
      The interim unaudited financial statements have been
      prepared on the same basis as the annual financial statements and in the
      opinion of management, reflect all adjustments, which include only normal
      recurring adjustments, necessary to present fairly the Company’s financial
      position, results of operations and cash flows for the periods shown. The
      results of operations for such periods are not necessarily indicative of
      the results expected for a full year or for any future period.

	 	 	 
	 	c) 	
      Use of Estimates

	 	 	 
	 		
      The preparation of financial statements in conformity
      with US generally accepted accounting principles requires management to
      make estimates and assumptions that affect the reported amounts of assets
      and liabilities and disclosure of contingent assets and liabilities at the
      date of the financial statements and the reported amounts of revenues and
      expenses during the reporting period. The Company regularly evaluates
      estimates and assumptions related to useful life and recoverability of
      long-lived assets and deferred income tax asset valuation allowances. The
      Company bases its estimates and assumptions on current facts, historical
      experience and various other factors that it believes to be reasonable
      under the circumstances, the results of which form the basis for making
      judgments about the carrying values of assets and liabilities and the
      accrual of costs and expenses that are not readily apparent from other
      sources. The actual results experienced by the Company may differ
      materially and adversely from the Company’s estimates. To the extent there
      are material differences between the estimates and the actual results,
      future results of operations will be affected.

C-18 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars)

(Unaudited) 

	2. 	
      Significant Accounting Polices (continued)

	 	 	 
		d) 	
      Basic Earnings (Loss) per Share

	 	 	 
			
      The Company computes net income (loss) per share in
      accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128
      requires presentation of both basic and diluted earnings per share (EPS)
      on the face of the income statement. Basic EPS is computed by dividing net
      income (loss) available to common shareholders (numerator) by the weighted
      average number of shares outstanding (denominator) during the period.
      Diluted EPS gives effect to all dilutive potential common shares
      outstanding during the period using the treasury stock method and
      convertible preferred stock using the if-converted method. In computing
      diluted EPS, the average stock price for the period is used in determining
      the number of shares assumed to be purchased from the exercise of stock
      options or warrants. Diluted EPS excludes all dilutive potential shares if
      their effect is anti dilutive. As at February 28, 2009 and February 29,
      2008, there are no dilutive potential common shares.

	 	 	 
		e) 	
      Cash Equivalents

	 	 	 
			
      The Company considers all highly liquid investments
      purchased with an original maturity of three months or less to be cash
      equivalents.

	 	 	 
		f) 	
      Marketable Securities

	 	 	 
			
      The Company defines marketable securities as income
      yielding securities that can be readily converted into cash. Examples of
      marketable securities include Treasury and agency obligations, commercial
      paper, corporate notes and bonds, time deposits with an original maturity
      greater than 3 months, foreign notes and certificates of deposit. We
      account for our investment in debt and equity instruments under Statement
      of Financial Accounting Standards, or SFAS, No. 115, “Accounting for
      Certain Investments in Debt and Equity Securities and Financial Accounting
      Standards Board”, or FASB, Staff Position, or FSP, SFAS No. 115-1,
      “The Meaning of Other-Than-Temporary Impairment and Its Application to
      Certain Investments”. The Company follows the guidance provided by
      EITF No. 03-1, “The Meaning of Other-Than-Temporary Impairment and Its
      Application to Certain Investments, to assess whether our investments
      with unrealized loss positions are other than temporarily impaired.
      Realized gains and losses and declines in value judged to be other than
      temporary are determined based on the specific identification method and
      are reported in other income (expense). Management determines the
      appropriate classification of such securities at the time of purchase and
      re-evaluates such classification as of each balance sheet date. As at
      February 28, 2009 and February 29, 2008, the Company does not hold any
      marketable securities with a period longer than three months.

	 	 	 
		g) 	
      Financial Instruments

	 	 	 
			
      SFAS No. 157 “Fair Value Measurements” requires an
      entity to maximize the use of observable inputs and minimize the use of
      unobservable inputs when measuring fair value. SFAS No. 157 establishes a
      fair value hierarchy based on the level of independent, objective evidence
      surrounding the inputs used to measure fair value. A financial
      instrument’s categorization within the fair value hierarchy is based upon
      the lowest level of input that is significant to the fair value
      measurement. SFAS No. 157 prioritizes the inputs into three levels that
      may be used to measure fair value:

	 	 	 
			
      Level 1

	 	 	 
			
      Level 1 applies to assets or liabilities for which there
      are quoted prices in active markets for identical assets or
      liabilities.

	 	 	 
			
      Level 2

	 	 	 
			
      Level 2 applies to assets or liabilities for which there
      are inputs other than quoted prices that are observable for the asset or
      liability such as quoted prices for similar assets or liabilities in
      active markets; quoted prices for identical assets or liabilities in
      markets with insufficient volume or infrequent transactions (less active
      markets); or model-derived valuations in which significant inputs are
      observable or can be derived principally from, or corroborated by,
      observable market data.

	 	 	 
			
      Level 3

	 	 	 
			
      Level 3 applies to assets or liabilities for which there
      are unobservable inputs to the valuation methodology that are significant
      to the measurement of the fair value of the assets or
  liabilities.

C-19 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars)

(Unaudited) 

	3. 	
      Significant Accounting Polices (continued)

	 	 	 	 
		g) 	
      Financial instruments (continued)

	 	 	 	 
			
      The Company’s financial instruments consist principally
      of cash, short-term investments, amounts receivable, accounts payable and
      accrued liabilities, loan payable, and due to/from related parties.
      Pursuant to SFAS No. 157, the fair value of our cash equivalents is
      determined based on “Level 1” inputs, which consist of quoted prices in
      active markets for identical assets. The Company believes that the
      recorded values of all of the other financial instruments approximate
      their current fair values because of their nature and respective maturity
      dates or durations.

	 	 	 	 
		h) 	
      Equipment

	 	 	 	 
			(i) 	
      Amortization Methods and Rates

	 	 	 	 
				
      Property and equipment is recorded at cost less
      accumulated amortization. Capitalized costs are amortized based on their
      estimated useful life on a straight line basis over three years. Costs
      included in wind equipment are under construction and will be amortized
      over their useful life on a straight-line basis once they are put into
      use.

	 	 	 	 
			(ii) 	
      Asset Impairment

	 	 	 	 
				
      The Company performs impairment tests on its property and
      equipment when events or changes in circumstances occur that indicate the
      carrying value of an asset may not be recoverable. Estimated future cash
      flows are calculated using estimated future prices and operating and
      capital costs on an undiscounted basis. When the carrying value of the
      property and equipment exceeds estimated future cash flows, the asset is
      impaired. An impairment loss is recorded to the extent the carrying value
      exceeds the discounted value of the estimated future cash flows.

	 	 	 	 
			(iii) 	
      Repairs and Maintenance

	 	 	 	 
				
      Repairs and maintenance costs are charged to expense as
      incurred, except when these repairs significantly extend the life of an
      asset or result in an operating improvement. In these instances, the
      portion of these repairs relating to the betterment is capitalized as part
      of property and equipment.

	 	 	 	 
		i) 	
      Website Development Costs

	 	 	 	 
			
      The Company capitalizes website development costs in
      accordance with the American Institute of Certified Public Accountants
      (“AICPA”) Statement of Position (“SOP”) No. 98-1, “Accounting for the
      Costs of Computer Software Developed or Obtained for Internal Use” and
      Emerging Issues Task Force (EITF) No. 00-2, “Accounting for Website
      Development Costs”, whereby costs related to the preliminary project
      stage of development are expensed and costs related to the application
      development stage are capitalized. Any additional costs for upgrades and
      enhancements which result in additional functionality will be capitalized.
      Capitalized costs will be amortized based on their estimated useful life
      over three years. Internal costs related to the development of website
      content are charged to operations as incurred.

	 	 	 	 
		j) 	
      Income Taxes

	 	 	 	 
			
      Potential benefits of income tax losses are not
      recognized in the accounts until realization is more likely than not. The
      Company has adopted SFAS No. 109 “Accounting for Income Taxes” as
      of its inception. Pursuant to SFAS No. 109 the Company is required to
      compute tax asset benefits for net operating losses carried forward.
      Potential benefit of net operating losses have not been recognized in
      these financial statements because the Company cannot be assured it is
      more likely than not it will utilize the net operating losses carried
      forward in future years.

	 	 	 	 
		k) 	
      Foreign Currency Translation

	 	 	 	 
			
      The Company’s functional and reporting currency is the
      Canadian dollar. Monetary assets and liabilities denominated in foreign
      currencies are translated using the exchange rate prevailing at the
      balance sheet date. Gains and losses arising on translation or settlement
      of foreign currency denominated transactions or balances are included in
      the determination of income. Foreign currency transactions are primarily
      undertaken in Canadian dollars. The Company has not, to the date of these
      financials statements, entered into derivative instruments to offset the
      impact of foreign currency fluctuations.

C-20 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars)

(Unaudited) 

	3. 	
      Recent Accounting Pronouncements

	 	 
		
      In June 2008, the Financial Accounting Standards Board
      (“FASB”) issued FASB Staff Position EITF 03-6-1, “Determining Whether
      Instruments Granted in Share-Based Payment Transactions Are Participating
      Securities”. FSP EITF 03-6-1 addresses whether instruments granted in
      share-based payment transactions are participating securities prior to
      vesting, and therefore need to be included in the computation of earnings
      per share under the two-class method as described in FASB Statement of
      Financial Accounting Standards No. 128, “Earnings per Share.” FSP EITF
      03-6-1 is effective for financial statements issued for fiscal years
      beginning on or after December 15, 2008 and earlier adoption is
      prohibited. The adoption of this statement is not expected to have a
      material effect on the Company’s financial statements.

	 	 
		
      In May 2008, the Financial Accounting Standards Board
      (“FASB”) issued SFAS No. 163, “Accounting for Financial Guarantee
      Insurance Contracts – An interpretation of FASB Statement No. 60”.
      SFAS 163 requires that an insurance enterprise recognize a claim liability
      prior to an event of default when there is evidence that credit
      deterioration has occurred in an insured financial obligation. It also
      clarifies how Statement 60 applies to financial guarantee insurance
      contracts, including the recognition and measurement to be used to account
      for premium revenue and claim liabilities, and requires expanded
      disclosures about financial guarantee insurance contracts. It is effective
      for financial statements issued for fiscal years beginning after December
      15, 2008, except for some disclosures about the insurance enterprise’s
      risk-management activities. SFAS 163 requires that disclosures about the
      risk-management activities of the insurance enterprise be effective for
      the first period beginning after issuance. Except for those disclosures,
      earlier application is not permitted. The adoption of this statement is
      not expected to have a material effect on the Company’s financial
      statements.

	 	 
		
      In May 2008, the FASB issued SFAS No. 162, “The
      Hierarchy of Generally Accepted Accounting Principles”. SFAS 162
      identifies the sources of accounting principles and the framework for
      selecting the principles to be used in the preparation of financial
      statements of nongovernmental entities that are presented in conformity
      with generally accepted accounting principles in the United States. It is
      effective 60 days following the SEC’s approval of the Public Company
      Accounting Oversight Board amendments to AU Section 411, “The Meaning
      of Present Fairly in Conformity With Generally Accepted Accounting
      Principles”. The adoption of this statement is not expected to have a
      material effect on the Company’s financial statements.

	 	 
		
      In March 2008, the FASB issued SFAS No. 161,
      “Disclosures about Derivative Instruments and Hedging Activities – an
      amendment to FASB Statement No. 133”. SFAS No. 161 is intended to
      improve financial standards for derivative instruments and hedging
      activities by requiring enhanced disclosures to enable investors to better
      understand their effects on an entity's financial position, financial
      performance, and cash flows. Entities are required to provide enhanced
      disclosures about: (a) how and why an entity uses derivative instruments;
      (b) how derivative instruments and related hedged items are accounted for
      under Statement 133 and its related interpretations; and (c) how
      derivative instruments and related hedged items affect an entity’s
      financial position, financial performance, and cash flows. It is effective
      for financial statements issued for fiscal years beginning after November
      15, 2008, with early adoption encouraged. The adoption of this statement
      is not expected to have a material effect on the Company’s financial
      statements.

	 	 
		
      In December 2007, the FASB issued SFAS No. 141R,
      “Business Combinations”. This statement replaces SFAS 141 and
      defines the acquirer in a business combination as the entity that obtains
      control of one or more businesses in a business combination and
      establishes the acquisition date as the date that the acquirer achieves
      control. SFAS 141R requires an acquirer to recognize the assets acquired,
      the liabilities assumed, and any noncontrolling interest in the acquiree
      at the acquisition date, measured at their fair values as of that date.
      SFAS 141R also requires the acquirer to recognize contingent consideration
      at the acquisition date, measured at its fair value at that date. This
      statement is effective for fiscal years, and interim periods within those
      fiscal years, beginning on or after December 15, 2008. Earlier adoption is
      prohibited. The adoption of this statement is not expected to have a
      material effect on the Company's financial statements.

	 	 
		
      In December 2007, the FASB issued SFAS No. 160,
      “Noncontrolling Interests in Consolidated Financial Statements
      Liabilities –an Amendment of ARB No. 51”. This statement amends ARB 51
      to establish accounting and reporting standards for the Noncontrolling
      interest in a subsidiary and for the deconsolidation of a subsidiary. This
      statement is effective for fiscal years, and interim periods within those
      fiscal years, beginning on or after December 15, 2008. Earlier adoption is
      prohibited. The adoption of this statement is not expected to have a
      material effect on the Company's financial
statements.

C-21 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars)

(Unaudited)  

	4. 	
      Short-term Investments

	 	 	 
		a) 	
      On July 24, 2007, the Company purchased a term deposit in
      the amount of $11,500, bearing interest of 3.15% per annum, maturing on
      July 23, 2008. The term deposit was reinvested upon maturity, bears
      interest of 2.10% per annum and matures on July 23, 2009. As at February
      28, 2009, the Company accrued $146 of interest income.

	 	 	 
		b) 	
      On November 3, 2006, the Company purchased a term deposit
      in the amount of $11,500, bearing interest of 3.57% per annum, maturing on
      November 2, 2007. The term deposit was reinvested on November 5, 2007 in
      the amount of $11,910, bearing interest of 3.09% per annum, maturing on
      October 31, 2008. Upon maturity, the term deposit was again reinvested on
      November 5, 2008 in the amount of $12,278, bears floating interest rate of
      prime rate less 2.65%, and matures on October 31, 2009. As at February 28,
      2009, the Company accrued $34 of interest income.

	 	 	 
	5. 	
      Property and Equipment

	 	  	 	  	 	 	  	 	 	February 28, 	 	 	May 31, 	 
	 	  	 	  	 	 	  	 	 	2009 	 	 	2008 	 
	 	  	 	  	 	 	Accumulated 	 	 	Net carrying 	 	 	Net carrying 	 
	 	  	 	Cost 	 	 	Depreciation 	 	 	value 	 	 	value 	 
	 	  	 	$	 	 	$	 	 	$	 	 	$	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	Computer equipment 	 	4,588 	 	 	(3,830	) 	 	758 	 	 	1,787 	 
	 	Other equipment 	 	1,500 	 	 	(1,386	) 	 	114 	 	 	451 	 
	 	Meteorological towers 	 	68,237 	 	 	– 	 	 	68,237 	 	 	59,741 	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	  	 	74,325 	 	 	(5,216	) 	 	69,109 	 	 	61,979 	 

	6. 	
      Intangible Assets

	 	  	 	  	 	 	  	 	 	February 28, 	 	 	May 31, 	 
	 	  	 	  	 	 	  	 	 	2009 	 	 	2008 	 
	 	  	 	  	 	 	Accumulated 	 	 	Net carrying 	 	 	Net carrying 	 
	 	  	 	Cost 	 	 	Amortization 	 	 	value 	 	 	value 	 
	 	  	 	$	 	 	$	 	 	$	 	 	$	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	Website development 	 	2,372 	 	 	(1,449	) 	 	923 	 	 	1,516 	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	  	 	2,372 	 	 	(1,449	) 	 	923 	 	 	1,516 	 

	7. 	
      Related Party Transactions

	 	 	 
		a) 	
      During the nine month period ended February 28, 2009, the
      Company incurred $66,125 (2007 - $50,550) in management fees to directors
      and officers.

	 	 	 
		b) 	
      As at February 28, 2009, the Company owed $736 (May 31,
      2008 - $736) to a director of the Company. These amounts are unsecured,
      non-interest bearing and have no terms of repayment.

	 	 	 
		c) 	
      As at February 28, 2009, the Company advanced $nil (May
      31, 2008 - $2,500) to a director of the Company. These amounts are
      unsecured, non-interest bearing and have no terms of repayment.

	 	 	 
		
      These related party transactions are recorded at the
      exchange amount, being the amount established and agreed to by the related
      parties.

C-22 

Sky Harvest Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in Canadian Dollars)

(Unaudited) 

	8. 	
      Loan Payable

	 	a) 	
      On September 23, 2008, the Company received $127,230
      (equivalent of USD$100,000) from Keewatin Windpower Corp. This loan is
      non-interest bearing, unsecured and due on September 22, 2009. The
      directors of the Company are also directors and principal shareholders of
      Keewatin. Refer to Note 1.

	 	 	 
	 	b) 	
      On January 28, 2009, the Company received $127,230
      (equivalent of USD$100,000) from Keewatin Windpower Corp. This loan is
      non-interest bearing, unsecured and due on January 28, 2010. The directors
      of the Company are also directors and principal shareholders of Keewatin.
      Refer to Note 1.

	9. 	
      Stockholders’ Equity 

	  	
       

		
      Class E preferred shares shall be entitled to receive a
      non-cumulative annual dividend per share not exceeding 10% of the
      redemption price. The Company may redeem any number of the issued and
      outstanding Class E preferred shares at any time and for the redemption
      price upon 7 days’ written notice to the holder. The holder may require
      the Company to redeem any number of the issued and outstanding Class E
      preferred shares at the redemption price upon 30 days’ written notice to
      the Company. 

	  	
       

	10. 	
      Commitment 

	  	
       

		
      On April 5, 2006, the Company entered into a leasing
      agreement to construct and operate a wind-powered electrical generating
      facility in Saskatchewan. The lease is to commence on the date the Company
      generates and sells electricity from the property (the “Commencement
      Date”) and is for a term of 25 years. Pursuant to the agreement the
      Company will pay for crop damage occurring as direct result of the
      Company’s activities as well as any increase in property taxes that is
      directly attributable to the installation of wind power facilities.
  

	  	
       

		
      The Company must pay $2,500 per year per turbine once
      excavation commences. Each rent payment shall be paid in quarterly
      increments. The Company has yet to commence excavation. In the event that
      the Commencement Date has not occurred by September 30, 2008, then the
      Company must either abandon the lease or pay delay rental payments of
      $5,000 per month. For the nine month period ended February 28, 2009, the
      Company incurred delay rental payments of $25,000. The Company must also
      pay a gross overriding royalty of 2% of the revenue received from the sale
      of power produced on the properties. 

	  	
       

	11. 	
      Proposed Transactions 

	  	
       

		
      The Company entered into a share exchange agreement dated
      April 21, 2009 with Keewatin, whereby Keewatin will acquire 100% of the
      issued and outstanding common shares of the Company, in consideration for
      17,340,516 restricted shares of Keewatin’s common stock. The directors of
      the Company are also directors and principal shareholders of Keewatin. The
      closing of this transaction is subject to shareholder approval.
  

SCHEDULE D 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

KWC Financial Statements 

Keewatin Windpower Corp. 
(A Development Stage Company) 

February 28, 2009 

 

	  	Index 
	  	  
	Balance
      Sheets 	F–1
      
	 	 
	Statements
      of Operations 	F–2
      
	 	 
	Statements
      of Cash Flows 	F–3
      
	 	 
	Notes
      to the Financial Statements 	F–4
      

D-2 

Keewatin Windpower Corp. 
(A Development Stage Company)

Balance Sheets 
(Expressed in US Dollars) 

	  	 	February 28, 	 	 	May 31, 	 
	  	 	2009 	 	 	2008 	 
	  	 	$	 	 	$	 
	  	 	(Unaudited) 	 	 	  	 
	ASSETS 	 	  	 	 	  	 
	Current Assets 	 	  	 	 	  	 
	     Cash and cash
      equivalents 	 	208,594 	 	 	1,311 	 
	     Short term investment 	 	655,733 	 	 	1,366,056 	 
	     Prepaid expenses (Note
      6(b)) 	 	22,119 	 	 	5,000 	 
	   
       Note receivable (Note 5) 	 	200,000 	 	 	– 	 
	Total Current Assets 	 	1,086,446 	 	 	1,372,367 	 
	Property and
      equipment, net (Note 4) 	 	10,344 	 	 	14,478 	 
	Total Assets 	 	1,096,790 	 	 	1,386,845 	 
	LIABILITIES AND STOCKHOLDERS’ EQUITY 	 	  	 	 	  	 
	Liabilities 	 	  	 	 	  	 
	     Accounts payable 	 	8,509 	 	 	6,512 	 
	     Accrued liabilities 	 	4,192 	 	 	13,597 	 
	   
       Management fees payable (Note 6(b)) 	 	– 	 	 	45,100 	 
	Total Liabilities 	 	12,701 	 	 	65,209 	 
	Contingencies (Note 1 and 7) 	 	  	 	 	  	 
	Stockholders’ Equity 	 	  	 	 	  	 
	Preferred Stock: 	 	  	 	 	  	 
	       
       Authorized: 10,000,000 shares, $0.001 par value 	 	  	 	 	  	 
	         Issued and outstanding:
      None 	 	– 	 	 	– 	 
	Common Stock: (Note 8) 	 	  	 	 	  	 
	         Authorized: 100,000,000
      shares, $0.001 par value 	 	  	 	 	  	 
	         Issued
      and outstanding: 12,391,500 shares 	 	12,391 	 	 	12,391 	 
	Common Stock Subscribed (Note 7) 	 	6,750 	 	 	– 	 
	Additional paid-in capital 	 	2,071,366 	 	 	2,071,366 	 
	Deficit
      accumulated during the development stage 	 	(1,006,418	) 	 	(762,121	) 
	Total Stockholders’ Equity 	 	1,084,089 	 	 	1,321,636 	 
	Total Liabilities
      and Stockholders’ Equity 	 	1,096,790 	 	 	1,386,845 	 

(The accompanying notes are an integral part of these financial
statements) 

D-3 

Keewatin Windpower Corp. 
(A Development Stage Company)

Statements of Operations 
(Expressed in US Dollars) 
(Unaudited) 

  	  	 	Accumulated from 	 	 	  	 	 	  	 	 	  	 	 	  	 
	  	 	February 25, 2005 	 	 	  	 	 	  	 	 	  	 	 	  	 
	  	 	(Date of Inception) 	 	 	Three Months 	 	 	Three Months 	 	 	Nine Months 	 	 	Nine Months 	 
	  	 	To 	 	 	Ended 	 	 	Ended 	 	 	Ended 	 	 	Ended 	 
	  	 	February 28, 	 	 	February 28, 	 	 	February 29, 	 	 	February 28, 	 	 	February 29, 	 
	  	 	2009 	 	 	2009 	 	 	2008 	 	 	2009 	 	 	2008 	 
	  	 	   $	 	 	$	 	 	$	 	 	$	 	 	$	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Expenses 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	   Consulting fees 	 	142,359 	 	 	57,230 	 	 	1,750 	 	 	117,534 	 	 	9,110 	 
	   Engineering and
      development 	 	113,677 	 	 	936 	 	 	13,553 	 	 	6,452 	 	 	9,972 	 
	   Management fees (Note 6(b) and
      6(c)) 	 	317,452 	 	 	22,875 	 	 	25,550 	 	 	68,625 	 	 	68,500 	 
	   Professional
      fees 	 	132,609 	 	 	15,807 	 	 	24,083 	 	 	54,400 	 	 	33,593 	 
	   General and administrative 	 	385,027 	 	 	2,713
    	 	 	4,375
    	 	 	9,847
    	 	 	13,877 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Operating loss 	 	1,091,124 	 	 	99,561 	 	 	69,311 	 	 	256,858 	 	 	135,052 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Other Income 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	   Interest income 	 	(84,706	) 	 	(4,145	) 	 	(16,461	) 	 	(12,561	) 	 	(50,517	) 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Net
      loss 	 	1,006,418 	 	 	95,416 	 	 	52,850 	 	 	244,297 	 	 	84,535 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Net
      loss per common share – basic and diluted 	 	  	 	 	(0.01	) 	 	(0.00	) 	 	(0.02	) 	 	(0.01	) 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	Weighted average number of common 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	stock outstanding 	 	  	 	 	12,392,000 	 	 	12,392,000 	 	 	12,392,000 	 	 	12,062,000 	 

(The accompanying notes are an integral part of these financial
statements) 

D-4 

Keewatin Windpower Corp. 
(A Development Stage Company)

Statements of Cash Flows 
(Expressed in US Dollars) 
(Unaudited) 

	  	 	Accumulated from 	 	 	  	 	 	  	 
	  	 	February 25, 2005 	 	 	  	 	 	  	 
	  	 	(Date of Inception) 	 	 	Nine Months 	 	 	Nine Months 	 
	  	 	To 	 	 	Ended 	 	 	Ended 	 
	  	 	February 28, 	 	 	February 28, 	 	 	February 29, 	 
	  	 	2009 	 	 	2009 	 	 	2008 	 
	  	 	$	 	 	$	 	 	$	 
	Operating activities 	 	  	 	 	  	 	 	  	 
	 Net loss for the period 	 	(1,006,418	) 	 	(244,297	) 	 	(84,535	) 
	 Adjustments to reconcile net loss to
      net cash used in 	 	  	 	 	  	 	 	  	 
	 operating activities: 	 	  	 	 	  	 	 	  	 
	       
       Depreciation 	 	14,523 	 	 	4,134 	 	 	4,134 	 
	         Stock-based compensation
    	 	365,764 	 	 	256 	 	 	– 	 
	 Changes in operating assets and
      liabilities: 	 	  	 	 	  	 	 	  	 
	         Prepaid expenses 	 	(15,625	) 	 	(10,625	) 	 	(10,000	) 
	         Accrued
      interest 	 	(5,733	) 	 	10,323 	 	 	(12,500	) 
	         Accounts payable and
      accrued liabilities 	 	12,701 	 	 	(7,408	) 	 	21,877 	 
	         Note
      receivable 	 	(200,000	) 	 	(200,000	) 	 	– 	 
	   
           Management fees payable 	 	–
    	 	 	(45,100	) 	 	– 	 
	Net cash flows used in operating activities 	 	(834,788	) 	 	(492,717	) 	 	(81,024	) 
	Investing activities 	 	  	 	 	  	 	 	  	 
	   Purchase of equipment 	 	(24,867	) 	 	– 	 	 	(4,054	) 
	   Purchase of short - term investments 	 	(2,150,000	) 	 	(800,000	) 	 	(1,350,000	) 
	   Redemption of short - term investments 	 	1,500,000 	 	 	1,500,000 	 	 	– 	 
	Net cash flows
      provided by (used in) investing activities 	 	(674,867	) 	 	700,000 	 	 	(1,354,054	) 
	Financing activities 	 	  	 	 	  	 	 	  	 
	 
       Proceeds from common stock issuances 	 	1,718,249 	 	 	– 	 	 	1,163,249 	 
	Net cash flows provided by financing activities 	 	1,718,249 	 	 	– 	 	 	1,163,249 	 
	Increase (Decrease) in cash and cash equivalents 	 	208,594 	 	 	207,283 	 	 	(271,829	) 
	Cash and cash equivalents – beginning of period 	 	– 	 	 	1,311 	 	 	449,185 	 
	Cash and cash
      equivalents – end of period 	 	208,594 	 	 	208,594 	 	 	177,356 	 
	  	 	  	 	 	  	 	 	  	 
	  	 	  	 	 	  	 	 	  	 
	Supplementary disclosures 	 	  	 	 	  	 	 	  	 
	 Interest paid 	 	– 	 	 	– 	 	 	– 	 
	 Income taxes paid 	 	– 	 	 	– 	 	 	– 	 

(The accompanying notes are an integral part of these financial
statements) 

D-5 

Keewatin Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in US Dollars)

(Unaudited) 

	1. 	
      Basis of Presentation

	 	 
		
      The unaudited financial information furnished herein
      reflects all adjustments, which in the opinion of management, are
      necessary to fairly state the Company’s financial position and the results
      of its operations for the periods presented. This report on Form 10-Q
      should be read in conjunction with the Company’s financial statements and
      notes thereto included in the Company’s Form 10-K for the fiscal year
      ended May 31, 2008. The Company assumes that the users of the interim
      financial information herein have read or have access to the audited
      financial statements for the preceding fiscal year and that the adequacy
      of additional disclosure needed for a fair presentation may be determined
      in that context. Accordingly, footnote disclosure, which would
      substantially duplicate the disclosure contained in the Company’s Form
      10-K for the fiscal year ended May 31, 2008, has been omitted. The results
      of operations for the nine-month period ended February 28, 2009 are not
      necessarily indicative of results that may be expected for the fiscal year
      ending May 31, 2009.

	 	 
	2. 	
      Organization and Description of Business

	 	 
		
      The Company was incorporated in the State of Nevada on
      February 25, 2005. The Company is a Development Stage Company, as defined
      by Statement of Financial Accounting Standard (“SFAS”) No.7 “Accounting
      and Reporting for Development Stage Companies”. Its activities to date
      have been limited to capital formation, organization, and development of
      its business plan for the exploration and development of wind power
      projects in Canada.

	 	 
		
      These financial statements have been prepared on a going
      concern basis, which implies the Company will continue to realize its
      assets and discharge its liabilities in the normal course of business. The
      Company has never generated revenues since inception and has never paid
      any dividends and is unlikely to pay dividends or generate earnings in the
      immediate or foreseeable future. The continuation of the Company as a
      going concern is dependent upon the continued financial support from its
      shareholders, the ability of the Company to obtain necessary equity
      financing to continue operations, the successful exploitation of
      economically recoverable electricity in its wind power projects, and the
      attainment of profitable operations. As at February 28, 2009, the Company
      has accumulated losses of $1,006,418 since inception. These factors raise
      substantial doubt regarding the Company’s ability to continue as a going
      concern. These financial statements do not include any adjustments to the
      recoverability and classification of recorded asset amounts and
      classification of liabilities that might be necessary should the Company
      be unable to continue as a going concern.

	 	 
	3. 	
      Recent Accounting Pronouncements

	 	 
		
      In June 2008, the Financial Accounting Standards Board
      (“FASB”) issued FASB Staff Position EITF 03-6-1, “Determining Whether
      Instruments Granted in Share-Based Payment Transactions Are Participating
      Securities”. FSP EITF 03-6-1 addresses whether instruments granted in
      share-based payment transactions are participating securities prior to
      vesting, and therefore need to be included in the computation of earnings
      per share under the two-class method as described in FASB Statement of
      Financial Accounting Standards No. 128, “Earnings per Share.” FSP EITF
      03-6-1 is effective for financial statements issued for fiscal years
      beginning on or after December 15, 2008 and earlier adoption is
      prohibited. The adoption of this statement is not expected to have a
      material effect on the Company’s financial statements.

	 	 
		
      In May 2008, the Financial Accounting Standards Board
      (“FASB”) issued SFAS No. 163, “Accounting for Financial Guarantee
      Insurance Contracts – An interpretation of FASB Statement No. 60”.
      SFAS 163 requires that an insurance enterprise recognize a claim liability
      prior to an event of default when there is evidence that credit
      deterioration has occurred in an insured financial obligation. It also
      clarifies how Statement 60 applies to financial guarantee insurance
      contracts, including the recognition and measurement to be used to account
      for premium revenue and claim liabilities, and requires expanded
      disclosures about financial guarantee insurance contracts. It is effective
      for financial statements issued for fiscal years beginning after December
      15, 2008, except for some disclosures about the insurance enterprise’s
      risk-management activities. SFAS 163 requires that disclosures about the
      risk-management activities of the insurance enterprise be effective for
      the first period beginning after issuance. Except for those disclosures,
      earlier application is not permitted. The adoption of this statement is
      not expected to have a material effect on the Company’s financial
      statements.

	 	 
		
      In May 2008, the FASB issued SFAS No. 162, “The
      Hierarchy of Generally Accepted Accounting Principles”. SFAS 162
      identifies the sources of accounting principles and the framework for
      selecting the principles to be used in the preparation of financial
      statements of nongovernmental entities that are presented in conformity
      with generally accepted accounting principles in the United States. It is
      effective 60 days following the SEC’s approval of the Public Company
      Accounting Oversight Board amendments to AU Section 411, “The Meaning
      of Present Fairly in Conformity With Generally Accepted Accounting
      Principles”. The adoption of this statement is not expected to have a
      material effect on the Company’s financial
statements.

D-6 

Keewatin Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in US Dollars)

(Unaudited) 

	3. 	
      Recent Accounting Pronouncements (continued)

	 	 
		
      In March 2008, FASB issued SFAS No. 161, “Disclosures
      about Derivative Instruments and Hedging Activities – an amendment to FASB
      Statement No. 133”. SFAS No. 161 is intended to improve financial
      standards for derivative instruments and hedging activities by requiring
      enhanced disclosures to enable investors to better understand their
      effects on an entity's financial position, financial performance, and cash
      flows. Entities are required to provide enhanced disclosures about: (a)
      how and why an entity uses derivative instruments; (b) how derivative
      instruments and related hedged items are accounted for under Statement 133
      and its related interpretations; and (c) how derivative instruments and
      related hedged items affect an entity’s financial position, financial
      performance, and cash flows. It is effective for financial statements
      issued for fiscal years beginning after November 15, 2008, with early
      adoption encouraged. The adoption of this statement is not expected to
      have a material effect on the Company’s financial statements.

	 	 
		
      In December 2007, the FASB issued SFAS No. 141R,
      “Business Combinations”. This statement replaces SFAS 141 and
      defines the acquirer in a business combination as the entity that obtains
      control of one or more businesses in a business combination and
      establishes the acquisition date as the date that the acquirer achieves
      control. SFAS 141R requires an acquirer to recognize the assets acquired,
      the liabilities assumed, and any noncontrolling interest in the acquiree
      at the acquisition date, measured at their fair values as of that date.
      SFAS 141R also requires the acquirer to recognize contingent consideration
      at the acquisition date, measured at its fair value at that date. This
      statement is effective for fiscal years, and interim periods within those
      fiscal years, beginning on or after December 15, 2008. Earlier adoption is
      prohibited. The adoption of this statement is not expected to have a
      material effect on the Company's financial statements.

	 	 
		
      In December 2007, the FASB issued SFAS No. 160,
      “Noncontrolling Interests in Consolidated Financial Statements
      Liabilities –an Amendment of ARB No. 51”. This statement amends ARB 51
      to establish accounting and reporting standards for the Noncontrolling
      interest in a subsidiary and for the deconsolidation of a subsidiary. This
      statement is effective for fiscal years, and interim periods within those
      fiscal years, beginning on or after December 15, 2008. Earlier adoption is
      prohibited. The adoption of this statement is not expected to have a
      material effect on the Company's financial statements.

	 	 
		
      In February 2007, the FASB issued SFAS No. 159, “The
      Fair Value Option for Financial Assets and Financial Liabilities –
      Including an Amendment of FASB Statement No. 115”. This statement
      permits entities to choose to measure many financial instruments and
      certain other items at fair value. Most of the provisions of SFAS No. 159
      apply only to entities that elect the fair value option. However, the
      amendment to SFAS No. 115 “Accounting for Certain Investments in Debt
      and Equity Securities” applies to all entities with available-for-sale
      and trading securities. SFAS No. 159 is effective as of the beginning of
      an entity’s first fiscal year that begins after November 15, 2007. Early
      adoption is permitted as of the beginning of a fiscal year that begins on
      or before November 15, 2007, provided the entity also elects to apply the
      provision of SFAS No. 157, “Fair Value Measurements”. The adoption
      of this statement did not have a material effect on the Company's
      financial statements.

	 	 
		
      In September 2006, the FASB issued SFAS No. 157, “Fair
      Value Measurements”. The objective of SFAS 157 is to increase
      consistency and comparability in fair value measurements and to expand
      disclosures about fair value measurements. SFAS 157 defines fair value,
      establishes a framework for measuring fair value in generally accepted
      accounting principles, and expands disclosures about fair value
      measurements. SFAS 157 applies under other accounting pronouncements that
      require or permit fair value measurements and does not require any new
      fair value measurements. The provisions of SFAS No. 157 are effective for
      fair value measurements made in fiscal years beginning after November 15,
      2007. The adoption of this statement did not have a material effect on the
      Company's financial statements.

	 	 
	4. 	
      Property and equipment

	 	  	 	  	 	 	  	 	 	February 28, 	 	 	May 31, 	 
	 	  	 	  	 	 	  	 	 	2009 	 	 	2008 	 
	 	  	 	  	 	 	Accumulated 	 	 	Net carrying 	 	 	Net carrying 	 
	 	  	 	Cost 	 	 	depreciation 	 	 	value 	 	 	value 	 
	 	  	 	$	 	 	$	 	 	$	 	 	$	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	Computer equipment 	 	4,054 	 	 	(2,366	) 	 	1,688 	 	 	2,702 	 
	 	Meteorological
      towers 	 	20,813 	 	 	(12,157	) 	 	8,656
    	 	 	11,776 	 
	 	  	 	  	 	 	  	 	 	  	 	 	  	 
	 	  	 	24,867 	 	 	(14,523	) 	 	10,344 	 	 	14,478 	 

D-7

Keewatin Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in US Dollars)

(Unaudited) 

	5. 	
      Promissory Note

	 	 	 
		
      On September 23, 2008, the Company entered into a loan
      agreement with Sky Harvest Windpower Corp. (“Sky Harvest”) to lend Sky
      Harvest $100,000. This loan is non-interest bearing, unsecured and due on
      September 22, 2009. On January 28, 2009, the Company entered into a second
      loan agreement with Sky Harvest to lend Sky Harvest an additional
      $100,000. This loan is non-interest bearing, unsecured and due on January
      28, 2010. Refer to Note 10.

	 	 	 
	6. 	
      Related Party Transactions

	 	 	 
		a) 	
      The Company neither owns nor leases any real or personal
      property. A director provides office services without charge. Such costs
      are immaterial to the financial statements and accordingly, have not been
      reflected therein.

	 	 	 
		b) 	
      During the nine months ended February 28, 2009, the
      Company has incurred $45,000 (2008 - $30,000) in management fees provided
      by a director and principal shareholder of the Company. As at February 28,
      2009, the Company has prepaid management fees of $5,000. As at February
      28, 2009, the Company owes this director $nil (2008 - $45,100) in
      management fees incurred prior to May 31, 2007.

	 	 	 
		c) 	
      During the nine months ended February 28, 2009, other
      directors were paid $23,625 (2007 - $36,000) in management fees. As at
      February 28, 2009, the Company has prepaid management fees of $2,625 to
      the other directors.

	 	 	 
		
      These related party transactions are recorded at the
        exchange amount, being the amount established and agreed to by the related
    parties.

	 	 	 
	7. 	
      Commitments and contingencies

	 	 	 
		
      On February 23, 2009, the Company entered into a
      consulting agreement with a consultant (the “Consultant”). Pursuant to the
      agreement, the Consultant will provide investor relations services for the
      Company from February 24, 2009 to July 5, 2009. In consideration for the
      investor relations services, the Company agreed to pay the Consultant
      $5,000 per month and to issue 15,000 shares of the Company’s common stock.
      At February 28, 2009, the fair value of the 15,000 shares issuable was
      $6,750 and is included in common stock subscribed. In addition, if the
      Company receives equity or debt funding of $3,000,000 or more through a
      source introduced to the Company by the Consultant then the parties agree
      to extend the agreement by an additional year. In consideration for the
      additional year of investor relations services, the Company must pay
      $8,500 per month and issue 50,000 shares of the Company’s common stock or
      pay $7,500 per month and issue 80,000 shares of the Company’s common
      stock.

	 	 	 
	8. 	
      Common Stock and Share Purchase Warrants

	 	 	 
		a) 	
      On July 11, 2007, the Company issued 715,000 shares of
      common stock at $0.70 per share for proceeds of $500,500. The Company also
      paid a 10% finders fee consisting of 71,500 shares of common stock. The
      finder’s fee shares were valued at $50,050.

	 	 	 
		b) 	
      On July 27, 2007, the Company completed a private
      placement consisting of 1,075,000 shares of common stock at $1.20 per
      share for cash proceeds of $1,290,000. Finders’ fees of $126,750 cash and
      1,000,000 share purchase warrants entitling the holder to acquire an
      additional share of common stock at $2.50 per share on or before July 27,
      2008, were paid related to this placement. The warrants were valued at
      $321,279 using the Black-Scholes option pricing model.

	 	 	 
			
      A summary of the changes in the Company’s common share
      purchase warrants is presented below:

	 	  	 	Nine Months Ended 	 
	 	  	 	February 28, 2009
    	 
	 	  	 	  	 	 	Weighted Average 	 
	 	  	 	Number 	 	 	Exercise Price 	 
	 	Balance, beginning of period 	 	1,000,000 	 	$	 2.50 	 
	 	Granted 	 	– 	 	 	– 	 
	 	Expired 	 	(1,000,000	) 	 	2.50 	 
	 	Exercised 	 	–
    	 	 	–
    	 
	 	Balance, end of period 	 	– 	 	$	 – 	 

D-8 

Keewatin Windpower Corp. 
(A Development Stage Company)

Notes to the Financial Statements 
(Expressed in US Dollars)

(Unaudited) 

	9. 	
      Stock Options

	 	 
		
      During the year ended May 31, 2007, the Company granted
      stock options to directors, officers and key advisors to acquire up to
      1,000,000 shares of common stock exercisable at $1.10 per share on or
      before February 26, 2009. All options granted were vested at the time of
      issuance. The fair value for options granted was estimated at the date of
      grant to be $365,508 using the Black-Scholes option pricing model assuming
      an expected life of 2 years, a risk-free rate of 4.49%, an expected
      volatility of 42% and no expected dividends. The fair value of these stock
      options granted was approximately $0.37 per share. During the year ended
      May 31, 2007, the Company recorded stock-based compensation of $91,337 as
      management fees and $274,131 as general and administrative
  expenses.

	 	 
		
      A summary of the Company’s stock option activity is as
      follows:

	 	  	 	Nine Months Ended 	 
	 	  	 	February 28, 2009
    	 
	 	  	 	  	 	 	  	 
	 	  	 	Number 	 	 	Weighted Average 	 
	 	  	 	of Options
    	 	 	Exercise Price 	 
	 	  	 	  	 	 	  	 
	 	Balance, Beginning of period 	 	1,000,00 	 	$	 1.10 	 
	 	Granted 	 	– 	 	 	– 	 
	 	Expired 	 	(1,000,000	) 	 	1.10 	 
	 	Exercised 	 	–
    	 	 	–
    	 
	 	Balance, End of period 	 	– 	 	$	 – 	 

	10. 	
      Potential Acquisition

	 	 
		
      The Company entered into a letter agreement dated March
      26, 2007 to acquire 100% of the issued and outstanding common shares of
      Sky Harvest Windpower Corp. (“Sky Harvest”), a private Canadian company
      incorporated under the laws of British Columbia, in consideration for
      17,343,516 restricted shares of the Company’s common stock. The directors
      of the Company are also directors and principal shareholders of Sky
      Harvest. Sky Harvest holds the rights to construct a wind power facility
      on approximately 8,500 acres of land located in Southwestern Saskatchewan.
      The closing of this transaction is subject to shareholder
  approval.

D-9 

KEEWATIN WINDPOWER CORP. 
PROFORMA FINANCIAL
STATEMENTS 
(Expressed in US dollars) 
(Unaudited) 

 

 

	Pro Forma Consolidated
      Balance Sheet as at February 28, 2009	PF - 1 
	 	 
	Pro Forma Consolidated
      Statement of Operations for the Nine Months ended February 28, 2009	PF - 2 
	 	 
	Pro Forma Consolidated
      Statement of Operations for the Year Ended May 31, 2008	PF - 3 
	 	 
	Notes to the Pro Forma
      Consolidated Financial Statements	PF - 4 

D-10 

KEEWATIN WINDPOWER CORP. 
PRO FORMA CONSOLIDATED
BALANCE SHEET 
AS AT FEBRUARY 28, 2009 
(Expressed in US
dollars) 
(Unaudited) 

	  	 	Keewatin 	 	 	Sky Harvest 	 	 	  	 	 	  	 	 	Pro Forma 	 
	  	 	As at 	 	 	As at 	 	 	  	 	 	Pro Forma 	 	 	Consolidated 	 
	  	 	February 28, 	 	 	February 28, 	 	 	  	 	 	Adjustments 	 	 	Balance 	 
	  	 	2009
    	 	 	2009
    	 	 	  	 	 	(Note
      3	) 	 	Sheet 	 
	  	 	$	 	 	$	 	 	  	 	 	$	 	 	$	 
	ASSETS 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	CURRENT 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	   Cash and cash equivalents 	 	208,594 	 	 	65,623 	 	 	  	 	 	  	 	 	274,217 	 
	   Accounts receivable 	 	– 	 	 	141 	 	 	  	 	 	  	 	 	141 	 
	   Short-term investments 	 	655,733 	 	 	18,690 	 	 	  	 	 	  	 	 	674,423 	 
	   Prepaid expenses 	 	22,119 	 	 	18,255 	 	 	  	 	 	  	 	 	40,374 	 
	   Note receivable 	 	200,000 	 	 	– 	 	 	(c) 	 	 	(200,000	) 	 	– 	 
	  	 	1,086,446 	 	 	102,709 	 	 	  	 	 	  	 	 	989,155 	 
	INVESTMENT IN SKY HARVEST 	 	– 	 	 	– 	 	 	(a) 	 	 	953,728 	 	 	– 	 
	  	 	  	 	 	  	 	 	(b) 	 	 	(953,728	) 	 	  	 
	PROPERTY, PLANT AND EQUIPMENT 	 	10,344 	 	 	54,320 	 	 	  	 	 	  	 	 	64,664 	 
	INTANGIBLE
      ASSETS 	 	– 	 	 	725
    	 	 	(b) 	 	 	793,329 	 	 	794,054 	 
	  	 	1,096,790 	 	 	157,754 	 	 	  	 	 	  	 	 	1,847,873 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	LIABILITIES 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	CURRENT 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	   Accounts payable 	 	8,509 	 	 	21,044 	 	 	  	 	 	  	 	 	29,553 	 
	   Accrued liabilities 	 	4,192 	 	 	10,732 	 	 	  	 	 	  	 	 	14,924 	 
	   Due to a related party 	 	– 	 	 	579 	 	 	  	 	 	  	 	 	579 	 
	   Loan
      payable 	 	– 	 	 	200,000 	 	 	(c) 	 	 	(200,000	) 	 	– 	 
	  	 	12,701 	 	 	232,355 	 	 	  	 	 	  	 	 	45,056 	 
	  	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	STOCKHOLDERS’ EQUITY 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	COMMON STOCK 	 	12,391 	 	 	1,333,869 	 	 	(b) 	 	 	(1,333,869	) 	 	29,732 	 
	  	 	  	 	 	  	 	 	(a) 	 	 	17,341 	 	 	  	 
	ADDITIONAL PAID-IN CAPITAL 	 	2,071,366 	 	 	– 	 	 	(a) 	 	 	936,387 	 	 	3,007,753 	 
	COMMON STOCK SUBSCRIBED 	 	6,750 	 	 	– 	 	 	  	 	 	  	 	 	6,750 	 
	SHARE SUBSCRIPTIONS RECEIVABLE 	 	– 	 	 	(1,965	) 	 	(b) 	 	 	1,965 	 	 	– 	 
	DEFICIT ACCUMULATED DURING THE 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	 
	DEVELOPMENT
      STAGE 	 	(1,006,418	) 	 	(1,406,505	) 	 	(b) 	 	 	1,171,505 	 	 	(1,241,418	) 
	  	 	1,084,089 	 	 	(74,601	) 	 	  	 	 	  	 	 	1,802,817 	 
	  	 	1,096,790 	 	 	157,754 	 	 	  	 	 	 
    	 	 	1,847,873 	 

(See accompanying notes) 

D-11 

KEEWATIN WINDPOWER CORP. 
PRO FORMA CONSOLIDATED
STATEMENT OF OPERATIONS 
NINE MONTHS ENDED FEBRUARY 28, 2009

(Expressed in US dollars) 
(Unaudited) 

	  	 	Keewatin 	 	 	Sky Harvest 	 	 	  	 	 	  	 
	  	 	Nine Months 	 	 	Nine Months 	 	 	  	 	 	Pro Forma 	 
	  	 	Ended 	 	 	Ended 	 	 	Pro Forma 	 	 	Consolidated 	 
	  	 	February 28, 	 	 	February 28, 	 	 	Adjustments 	 	 	Statement Of 	 
	  	 	2009
    	 	 	2009
    	 	 	(Note
      3	) 	 	Operations 	 
	  	 	$	 	 	$	 	 	$	 	 	$	 
	  	 	  	 	 	  	 	 	  	 	 	  	 
	REVENUE 	 	– 	 	 	– 	 	 	– 	 	 	– 	 
	EXPENSES 	 	  	 	 	  	 	 	  	 	 	  	 
	   Acquired development costs 	 	– 	 	 	– 	 	 	235,000 	 	 	235,000 	 
	   Consulting 	 	117,534 	 	 	– 	 	 	– 	 	 	117,534 	 
	   Development and engineering
	 	6,452 	 	 	50,288 	 	 	– 	 	 	56,740 	 
	   Management fees 	 	68,625 	 	 	58,144 	 	 	– 	 	 	126,769 	 
	   Professional 	 	54,400 	 	 	– 	 	 	– 	 	 	54,400 	 
	 
       General & Administrative 	 	9,847
    	 	 	131,647 	 	 	– 	 	 	141,494 	 
	Total Expenses 	 	256,858 	 	 	240,079 	 	 	– 	 	 	731,937 	 
	Net Loss Before Other Items 	 	(256,858	) 	 	(240,079	) 	 	– 	 	 	(731,937	) 
	Other Income (Expense) 	 	  	 	 	  	 	 	  	 	 	  	 
	   Interest Income 	 	12,561 	 	 	229 	 	 	– 	 	 	12,790 	 
	   Foreign Exchange Loss 	 	– 	 	 	(27,223	) 	 	– 	 	 	(27,223	) 
	NET LOSS
	 	(244,297	) 	 	(267,073	) 	 	– 	 	 	(746,370	) 
	  	 	  	 	 	  	 	 	  	 	 	  	 
	Pro forma loss per share (Note 5) 	 	  	 	 	  	 	 	  	 	 	  	 
	LOSS PER SHARE – Basic and diluted
    	 	(0.01	) 	 	(0.01	) 	 	  	 	 	(0.03	)
  

(See accompanying notes) 

D-12 

KEEWATIN WINDPOWER CORP. 
PRO FORMA CONSOLIDATED
STATEMENT OF OPERATIONS 
YEAR ENDED MAY 31, 2008 
(Expressed in
US dollars) 
(Unaudited) 

	  	 	Keewatin 	 	 	Sky Harvest 	 	 	  	 	 	  	 
	  	 	Year 	 	 	Year 	 	 	  	 	 	Pro Forma 	 
	  	 	Ended 	 	 	Ended 	 	 	Pro Forma 	 	 	Consolidated 	 
	  	 	May 31, 	 	 	May 31, 	 	 	Adjustments 	 	 	Statement Of 	 
	  	 	2008 	 	 	2008 	 	 	(Note 3	) 	 	Operations 	 
	  	 	$	 	 	$	 	 	$	 	 	$	 
	  	 	  	 	 	  	 	 	  	 	 	  	 
	REVENUE 	 	– 	 	 	– 	 	 	– 	 	 	– 	 
	EXPENSES 	 	  	 	 	  	 	 	  	 	 	  	 
	   Acquired development costs 	 	– 	 	 	– 	 	 	235,000 	 	 	235,000 	 
	   General and administrative 	 	230,735 	 	 	107,477 	 	 	– 	 	 	338,212 	 
	   Management fees 	 	88,750 	 	 	74,997 	 	 	– 	 	 	163,747 	 
	 
       Development and engineering 	 	– 	 	 	34,136 	 	 	– 	 	 	34,136 	 
	Total Expenses 	 	319,485 	 	 	216,610 	 	 	– 	 	 	771,095 	 
	Net Loss Before Other Items 	 	(319,485	) 	 	(216,610	) 	 	– 	 	 	(771,095	) 
	Other Income 	 	  	 	 	  	 	 	  	 	 	  	 
	   Interest Income 	 	62,655 	 	 	6,728 	 	 	– 	 	 	69,383 	 
	   Foreign Exchange Gain 	 	– 	 	 	1,293 	 	 	– 	 	 	1,293 	 
	NET LOSS
	 	(256,830	) 	 	(208,589	) 	 	– 	 	 	(700,419	) 
	  	 	  	 	 	  	 	 	  	 	 	  	 
	Pro forma loss per share (Note 5) 	 	  	 	 	  	 	 	  	 	 	  	 
	LOSS PER SHARE – Basic and diluted
    	 	(0.01	) 	 	(0.01	) 	 	  	 	 	(0.02	)
  

(See accompanying notes) 

D-13 

KEEWATIN WINDPOWER CORP. 

Notes to Pro Forma Consolidated Financial Statements

(Unaudited) 
(Expressed in US dollars)  

1. Basis of Presentation 

Pursuant to a share exchange agreement dated April 21, 2009,
Keewatin Windpower Corp. (“Keewatin”) is proposing to acquire all of the issued
and outstanding shares of Sky Harvest Windpower Corp. (“Sky Harvest”). See Note
2. 

These unaudited pro forma consolidated financial statements
(“pro forma financial statements”) have been prepared in accordance with
accounting principles generally accepted in the United States and are expressed
in US dollars. These pro forma financial statements do not contain all of the
information required for annual financial statements. Accordingly, they should
be read in conjunction with the most recent annual and interim financial
statements of Keewatin and of Sky Harvest.

These pro forma financial statements have been compiled from
and include: 

(a) an unaudited pro forma consolidated balance sheet combining
the unaudited balance sheet of Keewatin as at February 28, 2009 with the
unaudited balance sheet of Sky Harvest as at February 28, 2009, giving effect to
the transaction as if it occurred on February 28, 2009; 

(b) an unaudited pro forma consolidated statement of operations
combining the unaudited interim statement of operations of Keewatin for the
nine-month period ended February 28, 2009 with the unaudited interim statement
of operations of Sky Harvest for the nine-month period ended February 28, 2009,
giving effect to the transaction as if it occurred on June 1, 2008; and 

(c) an unaudited pro forma consolidated statement of operations
combining the audited statement of operations of Keewatin for the year ended May
31, 2008 with the audited statement of operations of Sky Harvest for the year
ended May 31, 2008, giving effect to the transaction as if it occurred on June
1, 2007. 

The unaudited pro forma financial statements have been compiled
using the significant accounting policies as set out in the audited financial
statements of Keewatin for the year ended May 31, 2008. Based on the review of
the accounting policies of Sky Harvest, it is Keewatin management’s opinion that
there are no material accounting differences between the accounting policies of
Keewatin and Sky Harvest. The unaudited pro forma financials statements should
be read in conjunction with the historical financial statements and notes
thereto of Keewatin. 

It is management’s opinion that these pro forma financial
statements include all adjustments necessary for the fair presentation, in all
material respects, of the proposed transaction described above in accordance
with US GAAP applied on a basis consistent with Keewatin ’s accounting policies.
No adjustments have been made to reflect potential cost savings that may occur
subsequent to completion of the transaction. The pro forma statements of
operations do not reflect non-recurring charges or credits directly attributable
to the transaction, of which none are currently anticipated. 

The unaudited pro forma financial statements are not intended
to reflect the results of operations or the financial position of Keewatin which
would have actually resulted had the proposed transactions been effected on the
dates indicated. Further, the unaudited pro forma financial information is not
necessarily indicative of the results of operations that may be obtained in the
future.

D-14 

KEEWATIN WINDPOWER CORP. 

Notes to Pro Forma Consolidated Financial Statements

(Unaudited) 
(Expressed in US dollars) 

2. Business Acquisition 

Pursuant to a share exchange agreement dated April 21, 2009,
Keewatin is offering to acquire all of the issued and outstanding shares of Sky
Harvest. The non-Canadian shareholders of Sky Harvest will receive 1.5 common
shares of Keewatin for every Sky Harvest common share held. The Canadian
shareholders of Sky Harvest will receive 1.5 Exchangeable shares of Keewatin
Windpower Inc. (“Exchangeco”), a wholly-owned subsidiary of Keewatin, for every
Sky Harvest common share held. Each Exchangeco share will be exchangeable into
one Keewatin share, subject to the terms and conditions of the Exchangeable
shares. Following completion of the transaction, Sky Harvest will be a
wholly-owned subsidiary of Keewatin. 

The Keewatin shares to be issued were determined to have a fair
value of $953,728. The preliminary allocation of the purchase price is
summarized in the table below and is subject to change. 

	  	 	$	 
	Purchase price 	 	  	 
	  	 	  	 
	17,340,516 Keewatin common shares 	 	953,728 	 
	  	 	  	 
	Fair value of Sky Harvest net assets
      to be acquired 	 	  	 
	  	 	  	 
	Cash and cash equivalents 	 	65,623 	 
	Accounts receivable 	 	141 	 
	Short-term investments 	 	18,690 	 
	Prepaid expenses 	 	18,255 	 
	Property, plant and equipment 	 	54,320 	 
	Acquired development costs 	 	235,000 	 
	Intangible assets 	 	794,054 	 
	Accounts payable 	 	(21,044	) 
	Accrued liabilities 	 	(10,732	) 
	Due to related party 	 	(579	) 
	Loan payable 	 	(200,000	) 
	  	 	  	 
	  	 	953,728 	 

After reflecting the pro forma purchase adjustments, the excess
of the purchase consideration over the book values of Sky Harvest’s assets and
liabilities as at February 28, 2009, has been allocated $235,000 to acquired
development costs, which has been expensed, and the remaining $793,329 to wind
farm lease agreements, which has been included with intangible assets.

3. Pro Forma Assumptions and Adjustments 

The unaudited pro form consolidated financial statements
incorporate the following pro forma assumptions: 

	 	(a) 	
      All of the non-Canadian Sky Harvest common shareholders
      exchange their Sky Harvest common shares for Keewatin common shares. All
      of the Canadian Sky Harvest common shareholders exchange their Sky Harvest
      common shares for Exchangeco shares. All of the Exchangeco shares are
      exchanged for Keewatin common shares.

	 	 	 
	 	(b) 	
      Keewatin’s investment in Sky Harvest and Sky Harvest’s
      stockholders’ equity are eliminated upon consolidation.

	 	 	 
	 	(c) 	
      The $200,000 previously advanced by Keewatin to Sky
      Harvest is eliminated upon consolidation.

	 	 	 
	 	(d) 	
      The purchase price for the Acquisition has been allocated
      to the acquired assets and liabilities on a pro forma basis as described
      in Note 2.

	 	 	 
	 	(e) 	
      The acquisition has been accounted for using the purchase
      method with Keewatin identified as the acquirer and the business acquired
      recorded at estimated fair value.

D-15 

KEEWATIN WINDPOWER CORP. 

Notes to Pro Forma Consolidated Financial Statements

(Unaudited) 
(Expressed in US dollars) 

4. Pro Forma Share Capital: 

Pro forma share capital as at February 28, 2009 has been
determined as follows: 

	  	 	Number 	 	 	  	 	 	Additional 	 	 	  	 
	  	 	of
      shares 	 	 	Par
      Value 	 	 	Paid-in Capital 	 	 	Amount 	 
	  	 	  	 	 	$	 	 	$	 	 	$	 
	Issued common shares of Keewatin 	 	12,391,500 	 	 	12,391 	 	 	2,071,366 	 	 	2,083,757 	 
	Shares issued for
      acquisition of Sky Harvest 	 	17,340,516 	 	 	17,341 	 	 	936,659 	 	 	954,000 	 
	Pro forma balance 	 	29,732,016 	 	 	29,732 	 	 	3,008,025 	 	 	3,037,757 	 

5. Pro Forma Loss Per Share: 

Pro forma basic and diluted loss per share for the nine months
ended February 28, 2009, and the year ended May 31, 2008, has been calculated
based on actual weighted average number of Keewatin common shares outstanding
for the respective periods and the assumed number of Keewatin shares issued to
Sky Harvest shareholders being effective on March 1, 2009 and June 1, 2008,
respectively. 

	  	 	Nine months ended 	 	 	Year ended 	 
	  	 	February 28, 2009 	 	 	May 31,
      2008 	 
	Basic pro forma loss per share computation
	 	  	 	 	  	 
	Numerator: 	 	  	 	 	  	 
	Pro forma net loss available to shareholders 	$	 (746,370	) 	$	 (700,419	) 
	Denominator: 	 	  	 	 	  	 
	Keewatin weighted average share outstanding
    	 	12,391,500 	 	 	12,145,000 	 
	Shares issued to
      Sky Harvest shareholders 	 	17,340,516 	 	 	17,340,516 	 
	Pro forma weighted average shares outstanding 	 	29,732,016 	 	 	29,485,516 	 
	Basic pro forma
      loss per share 	$	 (0.03	) 	$	 (0.02	) 

SCHEDULE E 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Material Agreements of Sky Harvest

	1. 	
      Loan Agreement between Keewatin Windpower Corp. and Sky
      Harvest Windpower Inc. dated September 23, 2008.

	 	 
	2. 	
      Promissory Note dated September 23, 2008 in the amount of
      U.S.$100,000 issued by Sky Harvest Windpower Corp. to Keewatin Windpower
      Corp.

	 	 
	3. 	
      Saskatchewan Wind Energy Lease between Donald Ernest
      Erickson and Patricia Gail Erickson dated April 5, 2006.

	 	 
	4. 	
      Saskatchewan Wind Energy Lease between Triple D & P
      Farms Ltd. and Sky Harvest Windpower Corp. dated April 5, 2006.

	 	 
	5. 	
      Saskatchewan Wind Energy Lease between Glen Marwill
      Howell, Wilma Eleanor Wilhelmina Howell and Sky Harvest Windpower Corp.
      dated April 12, 2006.

	 	 
	6. 	
      Saskatchewan Wind Energy Lease between Kenneth Walter
      Howell, Thelma Elaine Howell and Sky Harvest Windpower Corp. dated April
      5, 2006.

	 	 
	7. 	
      Saskatchewan Wind Energy Lease between Douglas Donald
      Erickson and Sky Harvest Windpower Corp. dated April 4, 2006.

	 	 
	8. 	
      Saskatchewan Wind Energy Lease between Dean David
      Erickson and Sky Harvest Windpower Corp. dated April 3, 2006.

	 	 
	9. 	
      Saskatchewan Wind Energy Lease between Leroy Kenneth Alm,
      Madeline June Alm and Sky Harvest Windpower Corp. dated April 21,
    2006.

	 	 
	10. 	
      Saskatchewan Wind Energy Lease between Roy Edwin Alto,
      Sherry Ann Alto and Sky Harvest Windpower Corp. dated April 12,
    2006.

	 	 
	11. 	
      Saskatchewan Wind Energy Lease between Melva Lea Mabel
      Leppa and Sky Harvest Windpower Corp. dated April 6, 2006.

	 	 
	12. 	
      Saskatchewan Wind Energy Lease between Stanley Leppa and
      Sky Harvest Windpower Corp. dated April 5, 2006.

	 	 
	13. 	
      Saskatchewan Wind Energy Lease between Bergstrom Farms
      Ltd. and Sky Harvest Windpower Corp. dated April 5, 2006.

	 	 
	14. 	
      Saskatchewan Wind Energy Lease between John Pavo and Sky
      Harvest Windpower Corp. dated April 19, 2006.

	 	 
	15. 	
      Saskatchewan Wind Energy Lease between Jerry Joseph
      Hastie, Paulette Patricia Hastie and Sky Harvest Windpower Corp. dated
      April 5, 2006.

	 	 
	16. 	
      Saskatchewan Wind Energy Lease between Michael Edward
      Leppa and Sky Harvest Windpower Corp. dated April 3,
  2006.

E-2 

	17. 	
      Saskatchewan Wind Energy Lease between Lloyd Edwin
      Delparte, Jean Afton Delparte and Sky Harvest Windpower Corp. dated April
      6, 2006.

	 	 
	18. 	
      Saskatchewan Wind Energy Lease between George Edward
      Delparte, Kerstin Malin Delparte and Sky Harvest Windpower Corp. dated
      April 10, 2006.

	 	 
	19. 	
      Verbal consulting agreement between Sky Harvest Windpower
      Corp. and Abra Management Ltd. pursuant to which Abra Management provides
      certain consulting services to Sky Harvest at a rate of $2,500 per month
      on a month to month basis

	 	 
	20. 	
      Verbal employment agreement between Sky Harvest Windpower
      Corp. and Chris Craddock pursuant to which Mr. Craddock provides certain
      consulting services to Sky Harvest at a rate of $5,000 per
  month.

	 	 
	21.	Loan Agreement between Keewatin Windpower Corp. and Sky Harvest Windpower Inc. dated January 28, 2009.
	 	 
	22.	Promissory Note dated January 29, 2009 in the amount of U.S.$100,000 issued by Sky Harvest Windpower Corp. to Keewatin Windpower Corp.

SCHEDULE F 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Real Property of Sky Harvest 

None.

SCHEDULE G 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Encumbrances on Sky Harvest’s Assets 

None.

SCHEDULE H 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Sky Harvest Litigation 

None.

SCHEDULE I 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

KWC Litigation 

None.

SCHEDULE J 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Intellectual Property of Sky Harvest 

None.

SCHEDULE K 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Subsidiaries of Sky Harvest 

None. 

SCHEDULE L 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Form of Voting and Exchange Trust Agreement

VOTING AND EXCHANGE TRUST AGREEMENT 

THIS AGREEMENT is dated for reference May 11, 2009. 

AMONG: 

  
    
      KEEWATIN WINDPOWER INC., a corporation existing
        under the laws of Saskatchewan (“ExchangeCo”) 

    

  

AND 

  
    
      KEEWATIN WINDPOWER CORP., a corporation existing
        under the laws of the State of Nevada (“Parent”) 

    

  

AND 

  
    
      VALIANT TRUST COMPANY, a trust company continued
        under the laws of Canada and registered to carry on business in the Province
        of British Columbia (“Trustee”) 

    

  

WHEREAS: 

A.        Pursuant to a
share exchange agreement (the “Share Exchange Agreement”) dated for
reference May 11, 2009 among Parent, ExchangeCo, Sky Harvest Windpower Corp.
(the “Company”) and the shareholders of the Company, ExchangeCo has
agreed to issue exchangeable shares (the “Exchangeable Shares”) to
certain holders of common shares of the Company pursuant to the acquisition of
common shares of the Company contemplated by the Share Exchange Agreement; and

B.        Pursuant to the
Share Exchange Agreement, Parent and ExchangeCo have agreed to execute a voting
and exchange trust agreement substantially in the form of this Agreement; and

THEREFORE in consideration of the respective covenants and
agreements provided in this Agreement and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged),
the parties hereto covenant and agree as follows: 

ARTICLE 1 
DEFINITIONS AND INTERPRETATION 

1.1      Definitions

                         In
this Agreement, the following terms shall have the following meanings: 

                         “Affiliate”
of any Person means any other Person directly or indirectly controlling,
controlled by, or under common control with, that Person. For the purposes of
this definition, “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”), as applied to any Person,
means the possession by another Person, directly or indirectly, of the power to
direct or cause the direction of the management 

L-2 

and policies of that first mentioned Person, whether through
the ownership of voting securities, by contract or otherwise. 

                         “Assignee”
has the meaning ascribed to that term in Section 12.3.

                         “Authorized
Person” has the meaning ascribed to that term in Section 6.16. 

                         “Automatic
Exchange Rights” means the benefit of the obligation of Parent to effect the
automatic exchange of Parent Common Shares for Exchangeable Shares pursuant to
Section 5.13. 

                         “Beneficiaries”
means the registered holders from time to time of Exchangeable Shares, other
than Parent and the Parent Affiliates. 

                         “Beneficiary
Votes” has the meaning ascribed to that term in Section 4.2. 

                         “Board
of Directors” means the Board of Directors of ExchangeCo or Parent, as the
case may be. 

                         “Business
Day” means any day on which commercial banks are generally open for business
in Vancouver, British Columbia, other than a Saturday, a Sunday or a day
observed as a holiday in Vancouver, British Columbia under the laws of the
Province of British Columbia or the federal laws of Canada. 

                         “Canadian
Dollar Equivalent” means, in respect of an amount expressed in a currency
other than Canadian dollars (the “Foreign Currency Amount”) at any date,
the product obtained by multiplying: (a) the Foreign Currency Amount, by (b) the
noon spot exchange rate on such date for such foreign currency expressed in
Canadian dollars as reported by the Bank of Canada or, in the event such spot
exchange rate is not available, such exchange rate on such date for such foreign
currency expressed in Canadian dollars as may be deemed by the Board of
Directors to be appropriate for such purpose. 

                         “Current
Market Price” means, in respect of a Parent Common Share on any date, the
Canadian Dollar Equivalent of the average of the closing prices of Parent Common
Shares during a period of 20 consecutive trading days ending not more than three
trading days before such date on the OTC Bulletin Board, or, if the Parent
Common Shares are not then quoted on the OTC Bulletin Board, on such other stock
exchange or automated quotation system on which the Parent Common Shares are
listed or quoted, as the case may be, as may be selected by the Board of
Directors of Parent for such purpose; provided, however, that if in the opinion
of the Board of Directors of Parent the public distribution or trading activity
of Parent Common Shares during such period does not create a market which
reflects the fair market value of a Parent Common Shares, then the Current
Market Price of a Parent Common Share shall be determined by the Board of
Directors of Parent, in good faith and in its sole discretion, and provided
further that any such selection, opinion or determination by the Board of
Directors of Parent shall be conclusive and binding. 

                         “Entity”
means any corporation (including any non-profit corporation), general
partnership, limited partnership, limited liability partnership, joint venture,
estate, trust, company (including any company limited by shares, limited
liability company or joint stock company), firm, society or other enterprise,
association, organization or entity. 

                         “Exchange
Right” has the meaning ascribed to that term in Section 5.1. 

                         “Exchangeable
Share” means a share in the class of non-voting exchangeable shares in the
capital of ExchangeCo having the rights, privileges, restrictions and conditions
set forth in the Exchangeable Share Provisions. 

                         “Exchangeable
Share Provisions” means the rights, privileges, restrictions and conditions
attaching to the Exchangeable Shares as set forth in Schedule O of the Share
Exchange Agreement. 

L-3 

                         “Exchangeable
Share Support Agreement” means the exchangeable share support agreement
dated for reference May 11, 2009 among ExchangeCo and Parent. 

                         “Governmental
Body” means any: (a) nation, state, commonwealth, province, territory,
county, municipality, district or other jurisdiction of any nature; (b) federal,
state, provincial, local, municipal, foreign or other government; or (c)
governmental or quasi-governmental authority of any nature (including any
governmental division, department, agency, commission, instrumentality,
official, ministry, fund, foundation, center, organization, unit, body or Entity
and any court or other tribunal). 

                         “Indemnified
Parties” has the meaning ascribed to that term in Section 8.1. 

                         “Insolvency
Event” means the institution by ExchangeCo of any proceeding to be
adjudicated a bankrupt or insolvent or to be wound up, or the consent of
ExchangeCo to the institution of bankruptcy, insolvency or winding-up
proceedings against ExchangeCo, or the filing of a petition, answer or consent
seeking dissolution or winding-up under any bankruptcy, insolvency or analogous
laws, including without limitation the Companies Creditors Arrangement
Act (Canada) and the Bankruptcy and Insolvency Act (Canada), and the
failure by ExchangeCo to contest in good faith any such proceedings commenced in
respect of ExchangeCo within 30 days of becoming aware thereof, or the consent
by ExchangeCo to the filing of any such petition or to the appointment of a
receiver, or the making by ExchangeCo of a general assignment for the benefit of
creditors, or the admission in writing by ExchangeCo of its inability to pay its
debts generally as they become due, or ExchangeCo not being permitted, pursuant
to solvency requirements of applicable law, to redeem any Retracted Shares
pursuant to Section 6.6 of the Exchangeable Share Provisions. 

                         “Liquidation
Call Right” has the meaning ascribed to that term in the Share Exchange
Agreement.

                         “Liquidation
Event” has the meaning ascribed to that term in Section 5.13(b) .
“Liquidation Event Effective Date” has the meaning ascribed to that term
in Section 5.13(c) . “List” has the meaning ascribed to that term in
Section 4.6. 

                         “Officer’s
Certificate” means, with respect to Parent or ExchangeCo, as the case may
be, a certificate signed by any one of the authorized signatories of Parent or
ExchangeCo, as the case may be. 

                         “Parent
Affiliates” means Affiliates of Parent. 

                         “Parent
Common Share” means a share of common stock, par value U.S. $0.001 per
share, in the capital of Parent, and any other security into which such share
may be changed. 

                         “Parent
Consent” has the meaning ascribed to that term in Section 4.2.

                         “Parent
Meeting” has the meaning ascribed to that term in Section 4.2. 

                         “Parent
Special Voting Share” means the one share of special voting stock of Parent,
par value U.S.$0.001, which entitles the holder of record of that share to a
number of votes at meetings of holders of Parent Common Shares equal to the
number of Exchangeable Shares outstanding from time to time (other than
Exchangeable Shares held by Parent and Parent Affiliates). 

                         “Parent
Successor” has the meaning ascribed to that term in Section 10.1. 

                         “Person”
means any individual, Entity or Governmental Body. 

                         “Redemption
Call Right” has the meaning ascribed to that term in the Share Exchange
Agreement.

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                         “Retracted
Shares” has the meaning ascribed to that term in Section 5.7. 

                         “Retraction
Call Right” has the meaning ascribed to that term in the Exchangeable Share
Provisions.

                         “Share
Exchange Agreement” means the agreement dated for reference May 11, 2009
between Parent, ExchangeCo and the Company and certain shareholders of the
Company, as amended, supplemented and/or restated in accordance therewith,
providing for, among other things, the acquisition of common shares of the
Company. 

                         “Trust”
means the trust created by this Agreement. 

                         “Trust
Estate” means the Parent Special Voting Share, any other securities, the
Exchange Right, the Automatic Exchange Rights and any money or other property
which may be held by Trustee from time to time pursuant to this trust agreement.

                         “Trustee”
means Valiant Trust Company or such other trust company or other Entity that
Parent and the Company choose and, subject to the provisions of Article 9,
includes any successor trust company. 

                         “Voting
Rights” means the voting rights attached to the Parent Special Voting Share
as set forth in Article 4. 

1.2    
 Interpretation Not Affected by Headings, etc. 

                         The
division of this Agreement into Articles, Sections and other portions and the
insertion of headings are for convenience of reference only and should not
affect the construction or interpretation of this Agreement. Unless otherwise
indicated, all references to an “Article” or “Section” followed by a number
and/or a letter refer to the specified Article or Section of this Agreement. The
terms “this Agreement”, “hereof”, “herein” and “hereunder” and similar
expressions refer to this Agreement and not to any particular Article, Section
or other portion hereof and include any agreement or instrument supplementary or
ancillary hereto. 

1.3      Number,
Gender, etc. 

                         Words
importing the singular number only shall include the plural and vice versa.
Words importing any gender shall include all genders. 

1.4      Date for any
Action 

                         If
any date on which any action is required to be taken under this Agreement is not
a Business Day, such action shall be required to be taken on the next succeeding
Business Day. 

ARTICLE 2 
PURPOSE OF AGREEMENT 

2.1    
 Establishment of Trust 

                         The
purpose of this Agreement is to create the Trust for the benefit of the
Beneficiaries, as herein provided. Trustee will hold the Parent Special Voting
Share in order to enable Trustee to execute the Voting Rights and will hold the
Exchange Right and the Automatic Exchange Rights in order to enable Trustee to
exercise such rights, in each case as Trustee for and on behalf of the
Beneficiaries as provided in this Agreement. 

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ARTICLE 3 

PARENT SPECIAL VOTING SHARE 

3.1      Issue and
Ownership of the Parent Special Voting Share 

                         Parent
hereby issues to and deposits with Trustee, the Parent Special Voting Share to
be hereafter held of record by Trustee as Trustee for and on behalf of, and for
the use and benefit of, the Beneficiaries and in accordance with the provisions
of this Agreement. Parent hereby acknowledges receipt from Trustee as Trustee
for and on behalf of the Beneficiaries of good and valuable consideration (and
the adequacy thereof) for the issuance of the Parent Special Voting Share by
Parent to Trustee. During the term of the Trust and subject to the terms and
conditions of this Agreement, Trustee shall possess and be vested with full
legal ownership of the Parent Special Voting Share and shall be entitled to
exercise all of the rights and powers of an owner with respect to the Parent
Special Voting Share provided that Trustee shall: 

	 	(a) 	
      hold the Parent Special Voting Share and the legal title
      thereto as Trustee solely for the use and benefit of the Beneficiaries in
      accordance with the provisions of this Agreement; and

	 	 	 
	 	(b) 	
      except as specifically authorized by this Agreement, have
      no power or authority to sell, transfer, vote or otherwise deal in or with
      the Parent Special Voting Share and the Parent Special Voting Share shall
      not be used or disposed of by Trustee for any purpose other than the
      purposes for which this Trust is created pursuant to this
  Agreement.

3.2      Legended
Share Certificates 

                         ExchangeCo
will cause each certificate representing Exchangeable Shares to bear an
appropriate legend notifying the Beneficiaries of their right to instruct
Trustee with respect to the exercise of the Voting Rights in respect of the
Exchangeable Shares of the Beneficiaries. 

3.3      Safe Keeping
of Certificate 

                         The
certificate representing the Parent Special Voting Share shall at all times be
held in safe keeping by Trustee or its duly authorized agent. 

ARTICLE 4 

EXERCISE OF VOTING RIGHTS 

4.1      Voting
Rights 

                         Trustee,
as the holder of record of the Parent Special Voting Share, shall be entitled to
vote in person or by proxy the Parent Special Voting Share on any matters,
questions, proposals or propositions whatsoever that may properly come before
the holders of Parent Common Shares at a Parent Meeting or in connection with a
Parent Consent. The Voting Rights shall be and remain vested in and exercised by
Trustee. Subject to Section 6.14: 

	 	(a) 	
      Trustee shall exercise the Voting Rights only on the
      basis of instructions received in accordance with this Article 4 from
      Beneficiaries entitled to instruct Trustee as to the voting thereof at the
      time at which the Parent Meeting is held or a Parent Consent is sought;
      and

	 	 	 
	 	(b) 	
      to the extent that no instructions are received from a
      Beneficiary with respect to the Voting Rights to which such Beneficiary is
      entitled, Trustee shall not exercise or permit the exercise of such Voting
      Rights.

4.2      Number of
Votes 

                         With
respect to all meetings of stockholders of Parent at which holders of Parent
Common Shares are entitled to vote (each, a “Parent Meeting”) and with
respect to all written consents sought by Parent from its 

L-6 

stockholders including the holders of Parent Common Shares
(each, a “Parent Consent”), each Beneficiary shall be entitled to
instruct Trustee to cast and exercise one of the votes comprised in the Voting
Rights for each Exchangeable Share owned of record by such Beneficiary on the
record date established by Parent or by applicable law for such Parent Meeting
or Parent Consent, as the case may be (the “Beneficiary Votes”), in
respect of each matter, question, proposal or proposition to be voted on at such
Parent Meeting or in connection with such Parent Consent. 

4.3      Mailings to
Stockholders 

                         With
respect to each Parent Meeting and Parent Consent, Trustee will mail or cause to
be mailed (or otherwise communicate in the same manner as Parent utilizes in
communications to holders of Parent Common Shares subject to Trustee being
advised in writing of that method and its ability to provide that method of
communication) to each of the Beneficiaries named in the List referred to in
Section 4.6, the following materials (such mailing or communication to commence
on the same day as the mailing (or other communication) is commenced by Parent
to its stockholders or, if later, promptly after receipt by Trustee of such
materials): 

	 	(a) 	
      a copy of the notice of such Parent Meeting or such
      Parent Consent, together with any related materials to be provided to
      stockholders of Parent;

	 	 	 	 
	 	(b) 	
      a statement that such Beneficiary is entitled to instruct
      Trustee as to the exercise of the Beneficiary Votes with respect to such
      Parent Meeting or Parent Consent or, pursuant to Section 4.7, to attend
      such Parent Meeting and to exercise personally the Beneficiary Votes
      thereat;

	 	 	 	 
	 	(c) 	
      a statement as to the manner in which such instructions
      may be given to Trustee, including an express indication that instructions
      may be given to Trustee to give:

	 	 	 	 
	 		(i) 	
      a proxy to such Beneficiary or his designee to exercise
      personally the Beneficiary Votes; or

	 	 	 	 
	 		(ii) 	
      a proxy to a designated agent or other representative of
      the management of Parent to exercise such Beneficiary Votes;

	 	 	 	 
	 	(d) 	
      a statement that if no such instructions are received
      from the Beneficiary, the Beneficiary Votes to which such Beneficiary is
      entitled will not be exercised;

	 	 	 	 
	 	(e) 	
      a form of direction whereby the Beneficiary may instruct
      Trustee as to voting and otherwise as contemplated herein; and

	 	 	 	 
	 	(f) 	
      a statement of the time and date by which such
      instructions must be received by Trustee in order to be binding upon it,
      which, in the case of a Parent Meeting, shall be not later than the close
      of business on the second Business Day prior to such meeting, and of the
      method for revoking or amending such instructions.

                         For
the purpose of determining Beneficiary Votes to which a Beneficiary is entitled
in respect of any Parent Meeting or Parent Consent, the number of Exchangeable
Shares owned of record by the Beneficiary shall be determined at the close of
business on the record date established by Parent or by applicable law for
purposes of determining stockholders entitled to vote at such Parent Meeting or
sign such Parent Consent. Parent will notify Trustee of any decision of the
Board of Directors of Parent with respect to the calling of any Parent Meeting
or with respect to the seeking of any Parent Consent and shall provide all
necessary information and materials to Trustee in each case promptly and in any
event in sufficient time to enable Trustee to perform its obligations
contemplated by this Section 4.3. 

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4.4      Copies of
Stockholder Information 

                         Parent
will deliver to Trustee copies of all proxy materials (including notices of
Parent Meetings but excluding proxies to vote Parent Common Shares), information
statements, reports (including without limitation, all interim and annual
financial statements) and other written communications that, in each case, are
to be distributed from time to time to holders of Parent Common Shares in
sufficient quantities and in sufficient time so as to enable Trustee to send
those materials to each Beneficiary at the same time as such materials are first
sent to holders of Parent Common Shares. Trustee will mail or otherwise send to
each Beneficiary, at the expense of Parent, copies of all such materials (and
all materials specifically directed to the Beneficiaries or to Trustee for the
benefit of the Beneficiaries by Parent) received by Trustee from Parent and will
use its best efforts to mail or otherwise send such materials contemporaneously
with the sending by Parent or its designee of such materials to holders of
Parent Common Shares. Trustee will also make available for inspection by any
Beneficiary at Trustee’s principal corporate trust office in the City of
Vancouver during the regular business hours of Trustee all proxy materials,
information statements, reports and other written communications that are: 

	 	(a) 	
      received by Trustee as the registered holder of the
      Parent Special Voting Share and made available by Parent generally to the
      holders of Parent Common Shares; or

	 	 	 
	 	(b) 	
      specifically directed to the Beneficiaries or to Trustee
      for the benefit of the Beneficiaries by Parent.

4.5      Other
Materials 

                         As
soon as reasonably practicable after receipt by Parent or stockholders of Parent
(if such receipt is known by Parent) of any material sent or given by or on
behalf of a third party to holders of Parent Common Shares generally, including
without limitation, dissident proxy and information circulars (and related
information and material) and tender and exchange offer circulars (and related
information and material), Parent shall use its reasonable efforts to obtain and
deliver to Trustee copies thereof in sufficient quantities so as to enable
Trustee to forward such material (unless the same has been provided directly to
Beneficiaries by such third party) to each Beneficiary as soon as possible
thereafter. As soon as reasonably practicable after receipt thereof, Trustee
will mail or otherwise send to each Beneficiary, at the expense of Parent,
copies of all such materials received by Trustee from Parent. Trustee will also
make available for inspection by any Beneficiary at Trustee’s principal
corporate trust office in the City of Vancouver during the regular business
hours of Trustee copies of all such materials. 

4.6      List of
Persons Entitled to Vote 

                         ExchangeCo
shall, (a) prior to each annual general and special Parent Meeting or the
seeking of any Parent Consent and (b) forthwith upon each request made at any
time by Trustee in writing, prepare or cause to be prepared a list (a
“List”) of the names and addresses of the Beneficiaries arranged in
alphabetical order (and, if requested, arranged by jurisdiction of residence)
and showing the number of Exchangeable Shares held of record by each such
Beneficiary, in each case at the close of business on the date specified by
Trustee in such request or, in the case of a List prepared in connection with a
Parent Meeting or a Parent Consent, at the close of business on the record date
established by Parent or pursuant to applicable law for determining the holders
of Parent Common Shares entitled to receive notice of and/or to vote at such
Parent Meeting or to give consent in connection with such Parent Consent. Each
such List shall be delivered to Trustee promptly after receipt by ExchangeCo of
such request or the record date for such meeting or seeking of consent, as the
case may be, and in any event within sufficient time to enable Trustee to
perform its obligations under this Agreement. Parent agrees to give ExchangeCo
notice (with a copy to Trustee) of the calling of any Parent Meeting or the
seeking of any Parent Consent, together with the record dates therefor,
sufficiently prior to the date of the calling of such meeting or seeking of such
consent so as to enable ExchangeCo to perform its obligations under this Section
4.6. 

4.7      Entitlement
to Direct Votes 

                         Any
Beneficiary named in a List prepared in connection with any Parent Meeting or
Parent Consent will be entitled (a) to instruct Trustee in the manner described
in Section 4.3 with respect to the exercise of 

L-8 

the Beneficiary Votes to which such Beneficiary is entitled or
(b) to attend such meeting and personally exercise thereat, as the proxy of
Trustee, the Beneficiary Votes to which such Beneficiary is entitled. 

4.8      Voting by
Trustee, and Attendance of Trustee Representative at Meeting 

	 	(a) 	
      In connection with each Parent Meeting and Parent
      Consent, Trustee shall exercise, either in person or by proxy, in
      accordance with the instructions received from a Beneficiary pursuant to
      Section 4.3, the Beneficiary Votes as to which such Beneficiary is
      entitled to direct the vote (or any lesser number thereof as may be set
      forth in the instructions); provided, however, that such written
      instructions are received by Trustee from the Beneficiary prior to the
      time and date fixed by Trustee for receipt of such instruction in the
      notice given by Trustee to the Beneficiary pursuant to Section
  4.3.

	 	 	 
	 	(b) 	
      Subject to the timely receipt of instructions as
      contemplated in Section 4.3(f), Trustee shall cause a representative who
      is empowered by it to sign and deliver, on behalf of Trustee, proxies for
      Voting Rights to attend each Parent Meeting. Upon submission by a
      Beneficiary (or its designee) of identification satisfactory to Trustee’s
      representative, and at the Beneficiary’s request, such representative
      shall sign and deliver to such Beneficiary (or its designee) a proxy to
      exercise personally the Beneficiary Votes as to which such Beneficiary is
      otherwise entitled hereunder to direct the vote, if such Beneficiary
      either (i) has not previously given Trustee instructions pursuant to
      Section 4.3 in respect of such meeting or (ii) submits to such
      representative written revocation of any such previous instructions. At
      such meeting, the Beneficiary exercising such Beneficiary Votes shall have
      the same rights as Trustee to speak at the meeting in favour of any
      matter, question, proposal or proposition, to vote by way of ballot at the
      meeting in respect of any matter, question, proposal or proposition, and
      to vote at such meeting by way of a show of hands in respect of any
      matter, question or proposition.

4.9      Distribution
of Written Materials 

                         Any
written materials distributed by Trustee pursuant to this Agreement shall be
sent by mail (or otherwise communicated in the same manner as Parent utilizes in
communications to holders of Parent Common Shares subject to Trustee being
advised in writing of that method of communication and its ability to provide
that method of communication) to each Beneficiary at its address as shown on the
books of ExchangeCo. ExchangeCo shall provide or cause to be provided to Trustee
for this purpose, on a timely basis and without charge or other expense: 

	 	(a) 	
      a current List; and

	 	 	 
	 	(b) 	
      upon the request of Trustee, mailing labels to enable
      Trustee to carry out its duties under this
Agreement.

4.10     Termination of
Voting Rights 

                         All
of the rights of a Beneficiary with respect to the Beneficiary Votes exercisable
in respect of the Exchangeable Shares held by such Beneficiary, including the
right to instruct Trustee as to the voting of or to vote personally such
Beneficiary Votes, shall be deemed to be surrendered by the Beneficiary to
Parent, and such Beneficiary Votes and the Voting Rights represented thereby
shall cease immediately upon the delivery by such holder to Trustee of the
certificates representing such Exchangeable Shares in connection with the
exercise by the Beneficiary of the Exchange Right or the occurrence of the
automatic exchange of Exchangeable Shares for Parent Common Shares, as specified
in Article 5 (unless, in either case, Parent shall not have delivered the
requisite Parent Common Shares issuable in exchange for the Exchangeable Shares
to Trustee for delivery to the Beneficiaries), or upon the redemption of
Exchangeable Shares pursuant to Article 6 or 7 of the Exchangeable Share
Provisions, or upon the effective date of the liquidation, dissolution or
winding-up of ExchangeCo pursuant to Article 5 of the Exchangeable Share
Provisions, or upon the purchase of Exchangeable Shares from the holder thereof
by 

L-9 

ExchangeCo pursuant to the exercise by ExchangeCo of the
Retraction Call Right, the Redemption Call Right or the Liquidation Call Right.

ARTICLE 5 
EXCHANGE RIGHT AND AUTOMATIC EXCHANGE

5.1      Grant and
Ownership of the Exchange Right 

                         Parent
hereby grants to Trustee as Trustee for and on behalf of, and for the use and
benefit of, the Beneficiaries the right (the “Exchange Right”),
exercisable upon the occurrence and during the continuance of an Insolvency
Event, to require Parent to purchase from each or any Beneficiary all or any
part of the Exchangeable Shares held by the Beneficiary and the Automatic
Exchange Rights, all in accordance with the provisions of this Agreement. Parent
hereby acknowledges receipt from Trustee as Trustee for and on behalf of the
Beneficiaries of good and valuable consideration (and the adequacy thereof) for
the grant of the Exchange Right and the Automatic Exchange Rights by Parent to
Trustee. During the term of the Trust and subject to the terms and conditions of
this Agreement, Trustee shall possess and be vested with full legal ownership of
the Exchange Right and the Automatic Exchange Rights and shall be entitled to
exercise all of the rights and powers of an owner with respect to the Exchange
Right and the Automatic Exchange Rights, provided that Trustee shall: 

	 	(a) 	
      hold the Exchange Right and the Automatic Exchange Rights
      and the legal title thereto as Trustee solely for the use and benefit of
      the Beneficiaries in accordance with the provisions of this Agreement;
      and

	 	 	 
	 	(b) 	
      except as specifically authorized by this Agreement, have
      no power or authority to exercise or otherwise deal in or with the
      Exchange Right or the Automatic Exchange Rights, and Trustee shall not
      exercise any such rights for any purpose other than the purposes for which
      the Trust is created pursuant to this Agreement.

5.2      Legended
Share Certificates 

                         ExchangeCo
will cause each certificate representing Exchangeable Shares to bear an
appropriate legend notifying the Beneficiaries of: 

	 	(a) 	
      their right to instruct Trustee with respect to the
      exercise of the Exchange Right in respect of the Exchangeable Shares held
      by a Beneficiary;

	 	 	 
	 	(b) 	
      the Automatic Exchange Rights; and

	 	 	 
	 	(c) 	
      any additional rights or restrictions required under
      applicable laws.

5.3      General
Exercise of Exchange Right 

                         The
Exchange Right shall be and remain vested in and exercisable by Trustee. Subject
to Section 6.14, Trustee shall exercise the Exchange Right only on the basis of
instructions received pursuant to this Article 5 from Beneficiaries entitled to
instruct Trustee as to the exercise thereof. To the extent that no instructions
are received from a Beneficiary with respect to the Exchange Right, Trustee
shall not exercise or permit the exercise of the Exchange Right. 

5.4      Purchase
Price 

                         The
purchase price payable by Parent for each Exchangeable Share to be purchased by
Parent under the Exchange Right shall be an amount per share equal to (a) the
Current Market Price of a Parent Common Share on the last Business Day prior to
the day of closing of the purchase and sale of such Exchangeable Share under the
Exchange Right, which shall be satisfied in full by Parent causing to be sent to
such holder one Parent Common Share; plus (b) to the extent not paid by
ExchangeCo, an additional amount equivalent to the full amount 

L-10 

of all declared and unpaid dividends on each such Exchangeable
Share held by such holder on any dividend record date which occurred prior to
the closing of the purchase and sale. In connection with each exercise of the
Exchange Right, Parent shall provide to Trustee an Officer’s Certificate setting
forth the calculation of the purchase price for each Exchangeable Share. The
purchase price for each such Exchangeable Share so purchased may be satisfied
only by Parent issuing and delivering or causing to be delivered to Trustee, on
behalf of the relevant Beneficiary, one Parent Common Share and on the
applicable payment date a cheque for the balance, if any, of the purchase price
without interest (but less any amounts withheld pursuant to Section 5.14) . 

5.5      Exercise
Instructions 

                         Subject
to the terms and conditions herein set forth, a Beneficiary shall be entitled,
upon the occurrence and during the continuance of an Insolvency Event, to
instruct Trustee to exercise the Exchange Right with respect to all or any part
of the Exchangeable Shares registered in the name of such Beneficiary on the
books of ExchangeCo. To cause the exercise of the Exchange Right by Trustee, the
Beneficiary shall deliver to Trustee, in person or by certified or registered
mail, at its principal corporate trust office in Vancouver, British Columbia or
at such other places in Canada as Trustee may from time to time designate by
written notice to the Beneficiaries, the certificates representing the
Exchangeable Shares which such Beneficiary desires Parent to purchase, duly
endorsed in blank for transfer, and accompanied by such other documents and
instruments as may be required to effect a transfer of Exchangeable Shares under
applicable laws and the constating documents of ExchangeCo and such additional
documents and instruments as Trustee, Parent or ExchangeCo may reasonably
require together with (a) a duly completed form of notice of exercise of the
Exchange Right, contained on the reverse of or attached to the Exchangeable
Share certificates, stating (i) that the Beneficiary thereby instructs Trustee
to exercise the Exchange Right so as to require Parent to purchase from the
Beneficiary the number of Exchangeable Shares specified therein, (ii) that such
Beneficiary has good title to and owns all such Exchangeable Shares to be
acquired by Parent free and clear of all liens, claims, security interests,
adverse claims and encumbrances, (iii) the names in which the certificates
representing Parent Common Shares issuable in connection with the exercise of
the Exchange Right are to be issued, and (iv) the names and addresses of the
Persons to whom such new certificates should be delivered; and (b) payment (or
evidence satisfactory to Trustee, ExchangeCo and Parent of payment) of the taxes
(if any) payable as contemplated by Section 5.8 of this Agreement. If only a
part of the Exchangeable Shares represented by any certificate or certificates
delivered to Trustee are to be purchased by Parent under the Exchange Right, a
new certificate for the balance of such Exchangeable Shares shall be issued to
the holder at the expense of ExchangeCo. 

5.6      Delivery of
Parent Common Shares; Effect of Exercise 

                         Promptly
after receipt of the certificates representing the Exchangeable Shares which the
Beneficiary desires Parent to purchase under the Exchange Right, together with
such documents and instruments of transfer and a duly completed form of notice
of exercise of the Exchange Right (and payment of taxes, if any, payable as
contemplated by Section 5.8 or evidence thereof), duly endorsed for transfer to
Parent, Trustee shall notify Parent and ExchangeCo of its receipt of the same,
which notice to Parent and ExchangeCo shall constitute exercise of the Exchange
Right by Trustee on behalf of the holder of such Exchangeable Shares, and Parent
shall promptly thereafter deliver or cause to be delivered to Trustee, for
delivery to the Beneficiary of such Exchangeable Shares (or to such other
Persons, if any, properly designated by such Beneficiary) the number of Parent
Common Shares issuable in connection with the exercise of the Exchange Right,
and on the applicable payment date cheques for the balance, if any, of the total
purchase price therefor without interest (but less any amounts withheld pursuant
to Section 5.14; provided, however, that no such delivery shall be made unless
and until the Beneficiary requesting the same shall have paid (or provided
evidence satisfactory to Trustee, ExchangeCo and Parent of the payment of) the
taxes (if any) payable as contemplated by Section 5.8 of this Agreement.
Immediately upon the giving of notice by Trustee to Parent and ExchangeCo of the
exercise of the Exchange Right as provided in this Section 5.6, the closing of
the transaction of purchase and sale contemplated by the Exchange Right shall be
deemed to have occurred and the holder of such Exchangeable Shares shall be
deemed to have transferred to Parent all of such holder’s right, title and
interest in and to such Exchangeable Shares shall cease to be a holder of such
Exchangeable Shares and shall not be entitled to exercise any of the rights of a
holder in respect thereof, other than the right to receive his proportionate
part of the total purchase price for those Exchangeable Shares (together with a
cheque for the balance, if any, of the total purchase price therefor without
interest (but less any amounts withheld pursuant to Section 5.14), unless the
requisite number of Parent Common Shares is not allotted, issued and delivered
by Parent to Trustee within five Business Days of the date of the giving of such
notice by Trustee and cheque for the balance, 

L-11 

if any, of the total purchase price for such Exchangeable
Shares is not issued and delivered to Trustee on the applicable payment date, in
which case the rights of the Beneficiary shall remain unaffected until such
Parent Common Shares are so allotted, issued and delivered by Parent and any
such cheque is issued and delivered by Parent. Upon delivery by Parent to
Trustee of such Parent Common Shares, Trustee shall deliver such Parent Common
Shares to such Beneficiary (or to such other Persons, if any, properly
designated by such Beneficiary). Concurrently with such Beneficiary ceasing to
be a holder of Exchangeable Shares, the Beneficiary shall be considered and
deemed for all purposes to be the holder of the Parent Common Shares delivered
to it pursuant to the Exchange Right. 

5.7      Exercise of
Exchange Right Subsequent to Retraction 

                         In
the event that a Beneficiary has exercised its right under Article 6 of the
Exchangeable Share Provisions to require ExchangeCo to redeem any or all of the
Exchangeable Shares held by the Beneficiary (the “Retracted Shares”) and
is notified by ExchangeCo pursuant to Section 6.6 of the Exchangeable Share
Provisions that ExchangeCo will not be permitted as a result of solvency
requirements of applicable law to redeem all such Retracted Shares, and provided
that ExchangeCo shall not have exercised the Retraction Call Right with respect
to the Retracted Shares and that the Beneficiary has not revoked the retraction
request delivered by the Beneficiary to ExchangeCo pursuant to Section 6.1 of
the Exchangeable Share Provisions, the retraction request will constitute and
will be deemed to constitute notice from the Beneficiary to Trustee instructing
Trustee to exercise the Exchange Right with respect to those Retracted Shares
that ExchangeCo is unable to redeem. In any such event, ExchangeCo hereby agrees
with Trustee and in favour of the Beneficiary to immediately notify Trustee of
the prohibition against ExchangeCo redeeming all of the Retracted Shares and to
promptly to forward or cause to be forwarded to Trustee all relevant materials
delivered by the Beneficiary to ExchangeCo or to the transfer agent of the
Exchangeable Shares (including without limitation, a copy of the retraction
request delivered pursuant to Section 6.1 of the Exchangeable Share Provisions)
in connection with such proposed redemption of the Retracted Shares and Trustee
will thereupon exercise the Exchange Right with respect to the Retracted Shares
that ExchangeCo is not permitted to redeem and will require Parent to purchase
such shares in accordance with the provisions of this Article 5. 

5.8      Stamp or
Other Transfer Taxes 

                         Upon
any sale of Exchangeable Shares to Parent pursuant to the Exchange Right or the
Automatic Exchange Rights, the share certificate or certificates representing
Parent Common Shares to be delivered in connection with the payment of the total
purchase price therefor shall be issued in the name of the Beneficiary of the
Exchangeable Shares so sold or in such names as such Beneficiary may otherwise
direct in writing without charge to the holder of the Exchangeable Shares so
sold; provided, however, that such Beneficiary (a) shall pay (and none of
Parent, ExchangeCo or Trustee shall be required to pay) any documentary, stamp,
transfer or other taxes that may be payable in respect of any transfer involved
in the issuance or delivery of such shares to a Person other than such
Beneficiary or (b) shall have evidenced to the satisfaction of Trustee, Parent
and ExchangeCo that such taxes, if any, have been paid. 

5.9      Notice of
Insolvency Event 

                         As
soon as practicable following the occurrence of an Insolvency Event or any event
that with the giving of notice or the passage of time or both would be an
Insolvency Event, ExchangeCo and Parent shall give written notice thereof to
Trustee. As soon as practicable following the receipt of notice from ExchangeCo
and Parent of the occurrence of an Insolvency Event, or upon Trustee becoming
aware of an Insolvency Event, Trustee will mail to each Beneficiary, at the
expense of Parent, a notice of such Insolvency Event, in the form provided by
the Parent, which notice shall contain a brief statement of the rights of the
Beneficiaries with respect to the Exchange Right. 

5.10     Qualification of
Parent Common Shares 

                         Parent
will in good faith expeditiously take all such reasonable actions and do all
such reasonable things as are necessary or desirable to cause all Parent Common
Shares to be delivered pursuant to the Exchange Right or the Automatic Exchange
Rights to be listed, quoted or posted for trading on all stock exchanges and

L-12 

quotation systems on which outstanding Parent Common Shares
have been listed by Parent and remain listed and are quoted or posted for
trading at such time. 

5.11     Parent Common
Shares 

                         Parent
hereby represents, warrants and covenants that the Parent Common Shares issuable
as described herein will be duly authorized and validly issued as fully paid and
non-assessable and shall be free and clear of any lien, claim or encumbrance.

5.12     Prohibition on
Voluntary Liquidation 

                         Parent
covenants that it shall not take any action relating to a voluntary liquidation,
dissolution or winding-up of ExchangeCo or its successors, prior to the
Redemption Date (as defined in the Exchangeable Share Provisions) unless prior
to such liquidation, dissolution or winding-up Parent shall have taken such
actions to ensure that it is possible for holders of Exchangeable Shares to
extend through to the Redemption Date (subject to the continuing effect of other
provisions of this Agreement which may permit the redemption or other
termination of the Exchangeable Shares prior to the Redemption Date) the
deferral of any gain incurred by such holders that would otherwise have been
recognized at the closing of the transactions contemplated by the Share Exchange
Agreement. 

5.13     Automatic
Exchange on Liquidation of Parent 

	 	(a) 	
      Parent will give Trustee notice of each of the following
      events at the time set forth below:

	 	 	 	 
	 		(i) 	
      in the event of any determination by the Board of
      Directors of Parent to institute voluntary liquidation, dissolution or
      winding-up proceedings with respect to Parent or to effect any other
      distribution of assets of Parent among its shareholders for the purpose of
      winding up its affairs, at least 60 days prior to the proposed effective
      date of such liquidation, dissolution, winding-up or other distribution;
      and

	 	 	 	 
	 		(ii) 	
      as soon as practicable following the earlier of (A)
      receipt by Parent of notice of, and (B) Parent otherwise becoming aware
      of, any threatened or instituted claim, suit, petition or other
      proceedings with respect to the involuntary liquidation, dissolution or
      winding-up of Parent or to effect any other distribution of assets of
      Parent among its shareholders for the purpose of winding up its affairs,
      in each case where Parent has failed to contest in good faith any such
      proceeding commenced in respect of Parent within 30 days of becoming aware
      thereof.

	 	 	 	 
	 	(b) 	
      As soon as practicable following receipt by Trustee from
      Parent of notice of any event (a “Liquidation Event”) contemplated
      by Section 5.13(a)(i) or 5.13(a)(ii) above, Trustee will give notice
      thereof to the Beneficiaries. Such notice shall include a brief
      description of the automatic exchange of Exchangeable Shares for Parent
      Common Shares provided for in Section 5.13(c).

	 	 	 	 
	 	(c) 	
      In order that the Beneficiaries will be able to
      participate on a pro rata basis with the holders of Parent Common Shares
      in the distribution of assets of Parent in connection with a Liquidation
      Event, on the fifth Business Day prior to the effective date (the
      “Liquidation Event Effective Date”) of a Liquidation Event all of
      the then outstanding Exchangeable Shares shall be automatically exchanged
      for Parent Common Shares. To effect such automatic exchange, Parent shall
      purchase on the fifth Business Day prior to the Liquidation Event
      Effective Date each Exchangeable Share then outstanding and held by
      Beneficiaries, and each Beneficiary shall sell the Exchangeable Shares
      held by it at such time, for a total purchase price per share equal to (a)
      the Current Market Price of a Parent Common Share on the fifth Business
      Day prior to the Liquidation Event Effective Date, which shall be
      satisfied in full by Parent issuing to the Beneficiary one Parent Common
      Share, and (b) to the extent not paid by ExchangeCo, an additional amount
      equivalent to the full amount of all declared and unpaid dividends on each
      such Exchangeable Share held by such holder on any dividend record date
      which occurred prior to the

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      date of the exchange. In connection with such automatic
      exchange, Parent will provide to Trustee an Officer’s Certificate setting
      forth the calculation of the purchase price for each Exchangeable
      Share.

	 	 	 
	 	(d) 	
      On the fifth Business Day prior to the Liquidation Event
      Effective Date, the closing of the transaction of purchase and sale
      contemplated by the automatic exchange of Exchangeable Shares for Parent
      Common Shares shall be deemed to have occurred, and each Beneficiary shall
      be deemed to have transferred to Parent all of the Beneficiary’s right,
      title and interest in and to such Beneficiary’s Exchangeable Shares and
      the related interest in the Trust Estate and shall cease to be a holder of
      such Exchangeable Shares and Parent shall issue to the Beneficiary the
      Parent Common Shares issuable upon the automatic exchange of Exchangeable
      Shares for Parent Common Shares and on the applicable payment date shall
      deliver to Trustee for delivery to the Beneficiary a cheque for the
      balance, if any, of the total purchase price for such Exchangeable Shares
      without interest but less any amounts withheld pursuant to Section 5.14.
      Concurrently with such Beneficiary ceasing to be a holder of Exchangeable
      Shares, the Beneficiary shall be considered and deemed for all purposes to
      be the holder of the Parent Common Shares issued pursuant to the automatic
      exchange of Exchangeable Shares for Parent Common Shares and the
      certificates held by the Beneficiary previously representing the
      Exchangeable Shares exchanged by the Beneficiary with Parent pursuant to
      such automatic exchange shall thereafter be deemed to represent Parent
      Common Shares issued to the Beneficiary by Parent pursuant to such
      automatic exchange. Upon the request of a Beneficiary and the surrender by
      the Beneficiary of Exchangeable Share certificates deemed to represent
      Parent Common Shares, duly endorsed in blank and accompanied by such
      instruments of transfer as Parent may reasonably require, Parent shall
      deliver or cause to be delivered to the Beneficiary certificates
      representing Parent Common Shares of which the Beneficiary is the
      holder.

5.14     Withholding
Rights 

                         Parent,
ExchangeCo and Trustee shall be entitled to deduct and withhold from any
consideration otherwise payable under this Agreement to any holder of
Exchangeable Shares or Parent Common Shares such amounts as Parent, ExchangeCo
or Trustee is required or permitted to deduct and withhold with respect to such
payment under the Income Tax Act (Canada), the United States Internal
Revenue Code of 1986 or any provision of provincial, state, local or foreign
tax law, in each case as amended or succeeded. To the extent that amounts are so
withheld, such withheld amounts shall be treated for all purposes as having been
paid to the holder of the shares in respect of which such deduction and
withholding was made, provided that such withheld amounts are actually remitted
to the appropriate taxing authority. To the extent that the amount so required
or permitted to be deducted or withheld from any payment to a holder exceeds the
cash portion of the consideration otherwise payable to the holder, Parent,
ExchangeCo and Trustee are hereby authorized to sell or otherwise dispose of
such portion of the consideration as is necessary to provide sufficient funds to
Parent, ExchangeCo or Trustee, as the case may be, to enable it to comply with
such deduction or withholding requirement and Parent, ExchangeCo or Trustee
shall notify the holder thereof and remit to such holder any unapplied balance
of the net proceeds of such sale. Prior to making any distribution to holders of
Exchangeable Shares or Parent Common Shares, Parent or ExchangeCo, as the case
may be, shall ensure that Trustee has access to sufficient funds (by directly
providing, if necessary, such funds to Trustee) to enable Trustee to comply with
any applicable withholding taxes in connection with such consideration. In
carrying out its duties under this Section 5.14, Trustee may obtain the advice
of and assistance from such experts as Trustee may reasonably consider necessary
or advisable. If requested by Trustee, Parent shall retain such experts for
providing such advice or assistance to Trustee. 

ARTICLE 6 
CONCERNING THE TRUSTEE 

6.1      Powers and
Duties of the Trustee 

                         The
rights, powers, duties and authorities of Trustee under this Agreement, in its
capacity as Trustee of the Trust, shall include: 

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	 	(a) 	
      receipt and deposit of the Parent Special Voting Share
      from Parent as Trustee for and on behalf of the Beneficiaries in
      accordance with the provisions of this Agreement;

	 	 	 
	 	(b) 	
      granting proxies and distributing materials to
      Beneficiaries as provided in this Agreement;

	 	 	 
	 	(c) 	
      voting the Beneficiary Votes in accordance with the
      provisions of this Agreement;

	 	 	 
	 	(d) 	
      receiving the grant of the Exchange Right and the
      Automatic Exchange Rights from Parent as Trustee for and on behalf of the
      Beneficiaries in accordance with the provisions of this
  Agreement;

	 	 	 
	 	(e) 	
      exercising the Exchange Right and enforcing the benefit
      of the Automatic Exchange Rights, in each case in accordance with the
      provisions of this Agreement, and in connection therewith receiving from
      Beneficiaries Exchangeable Shares and other requisite documents and
      distributing to such Beneficiaries Parent Common Shares and cheques, if
      any, to which such Beneficiaries are entitled upon the exercise of the
      Exchange Right or pursuant to the Automatic Exchange Rights, as the case
      may be;

	 	 	 
	 	(f) 	
      holding title to the Trust Estate;

	 	 	 
	 	(g) 	
      investing any moneys forming, from time to time, a part
      of the Trust Estate as provided in this trust agreement;

	 	 	 
	 	(h) 	
      taking action at the written direction of a Beneficiary
      or Beneficiaries to enforce the obligations of Parent and ExchangeCo under
      this Agreement; and

	 	 	 
	 	(i) 	
      taking such other actions and doing such other things as
      are specifically provided in this Agreement.

                         In
the exercise of such rights, powers, duties and authorities Trustee shall have
(and is granted) such incidental and additional rights, powers, duties and
authority not in conflict with any of the provisions of this Agreement as
Trustee, acting in good faith and in the reasonable exercise of its discretion,
may deem necessary, appropriate or desirable to effect the purpose of the Trust.
Any exercise of such discretionary rights, powers, duties and authorities by
Trustee shall be final, conclusive and binding upon all Persons. 

                         Trustee
in exercising its rights, powers, duties and authorities hereunder shall act
honestly and in good faith and with a view to the best interests of the
Beneficiaries and shall exercise the care, diligence and skill that a reasonably
prudent Trustee would exercise in comparable circumstances. 

                         The
duties and obligations of Trustee shall be determined by the provisions hereof
and by the provisions of applicable law and accordingly, Trustee shall only be
responsible for the performance of such duties and obligations as it has
undertaken herein or as required by applicable law. Where the provision of
documentation to Trustee is contemplated by this Agreement, Trustee shall retain
the right not to act and shall be held not to be liable for refusing to act
unless it has received such documentation in a clear and reasonable form that
complies with the terms of this Agreement. Such documentation must not require
the exercise of any discretion or independent judgment on the part of Trustee
except as provided herein. 

6.2      No Conflict
of Interest 

                         Trustee
represents to Parent and ExchangeCo that at the date of execution and delivery
of this Agreement there exists no material conflict of interest in the role of
Trustee as a fiduciary hereunder and the role of Trustee in any other capacity.
Trustee shall, within 90 days after it becomes aware that such material conflict
of interest exists, either eliminate such material conflict of interest or
resign in the manner and with the effect specified in Article 9. If,
notwithstanding the foregoing provisions of this Section 6.2, Trustee has such a
material conflict of interest, the validity and enforceability of this Agreement
shall not be affected in any manner whatsoever by reason 

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only of the existence of such material conflict of interest. If
Trustee contravenes the foregoing provisions of this Section 6.2, any interested
party may apply to the Supreme Court of British Columbia for an order that
Trustee be replaced as Trustee hereunder. 

6.3      Dealings
with Transfer Agents, Registrars, etc. 

	 		
      Parent and ExchangeCo irrevocably authorize Trustee, from
      time to time, to:

	 	 	 
	 	(a) 	
      consult, communicate and otherwise deal with the
      respective registrars and transfer agents, and with any such subsequent
      registrar or transfer agent, of the Exchangeable Shares and Parent Common
      Shares; and

	 	 	 
	 	(b) 	
      requisition, from time to time, (i) from any such
      registrar or transfer agent any information readily available from the
      records maintained by it which Trustee may reasonably require for the
      discharge of its duties and responsibilities under this Agreement and (ii)
      from the transfer agent of Parent Common Shares, and any subsequent
      transfer agent of such shares, the share certificates issuable upon the
      exercise from time to time of the Exchange Right and pursuant to the
      Automatic Exchange Rights in the manner specified in Article 5
    hereof.

                         Parent
and ExchangeCo irrevocably authorize their respective registrars and transfer
agents to comply with all such requests. Parent covenants that it will supply
its transfer agent with duly executed share certificates for the purpose of
completing the exercise from time to time of the Exchange Right and the
Automatic Exchange Rights in each case pursuant to Article 5 hereof. 

6.4      Books and
Records 

                         Trustee
shall keep available for inspection by Parent and ExchangeCo at Trustee’s
principal corporate trust office in Vancouver, British Columbia correct and
complete books and records of account relating to the Trust created by this
Agreement, including without limitation, all relevant data relating to mailings
and instructions to and from Beneficiaries and all transactions pursuant to the
Exchange Right and the Automatic Exchange Rights. On or before January 31, 2009,
and on or before January 31 in every year thereafter, so long as the Parent
Special Voting Share is on deposit with Trustee, Trustee shall transmit to
Parent and ExchangeCo a brief report, dated as of the preceding December 31,
with respect to: 

	 	(a) 	
      the property and funds comprising the Trust Estate as of
      that date;

	 	 	 
	 	(b) 	
      the number of exercises of the Exchange Right, if any,
      and the aggregate number of Exchangeable Shares received by Trustee on
      behalf of Beneficiaries in consideration of the issuance by Parent of
      Parent Common Shares in connection with the Exchange Right, during the
      calendar year ended on such December 31; and

	 	 	 
	 	(c) 	
      any action taken by Trustee in the performance of its
      duties under this Agreement which it had not previously
  reported.

6.5    
 Indemnification Prior to Certain Actions by Trustee 

                         Trustee
shall exercise any or all of the rights, duties, powers or authorities vested in
it by this Agreement at the request, order or direction of any Beneficiary upon
such Beneficiary furnishing to Trustee reasonable security, funding or
indemnity, satisfactory to Trustee, acting reasonably, against the costs,
expenses and liabilities which may be incurred by Trustee therein or thereby,
provided that no Beneficiary shall be obligated to furnish to Trustee any such
security, funding or indemnity in connection with the exercise by Trustee of any
of its rights, duties, powers and authorities with respect to the Parent Special
Voting Share pursuant to Article 4, subject to Section 6.14, and with respect to
the Exchange Right pursuant to Article 5, subject to Section 6.14, and with
respect to the Automatic Exchange Rights pursuant to Article 5, subject to
Section 6.14. 

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                         None
of the provisions contained in this Agreement shall require Trustee to expend or
risk its own funds or otherwise incur financial liability in the exercise of any
of its rights, powers, duties, or authorities unless funded, given security or
indemnified as aforesaid. 

6.6      Action of
Beneficiaries 

                         No
Beneficiary shall have the right to institute any action, suit or proceeding or
to exercise any other remedy authorized by this Agreement for the purpose of
enforcing any of its rights or for the execution of any trust or power hereunder
unless the Beneficiary has requested Trustee to take or institute such action,
suit or proceeding and furnished Trustee with the security, funding or indemnity
referred to in Section 6.5 and Trustee shall have failed to act within a
reasonable time thereafter. In such case, but not otherwise, the Beneficiary
shall be entitled to take proceedings in any court of competent jurisdiction
such as Trustee might have taken; it being understood and intended that no one
or more Beneficiaries shall have any right in any manner whatsoever to affect,
disturb or prejudice the rights hereby created by any such action, or to enforce
any right hereunder or the Voting Rights, the Exchange Rights or the Automatic
Exchange Rights except subject to the conditions and in the manner herein
provided, and that all powers and trusts hereunder shall be exercised and all
proceedings at law shall be instituted, had and maintained by Trustee, except
only as herein provided, and in any event for the equal benefit of all
Beneficiaries. 

6.7      Reliance
Upon Declarations 

                         Trustee
shall not be considered to be in contravention of any its rights, powers, duties
and authorities hereunder if, when required, it acts and relies in good faith
upon statutory declarations, certificates, opinions, lists, mailing labels, or
reports or other papers or documents furnished pursuant to the provisions hereof
or required by Trustee to be furnished to it in the exercise of its rights,
powers, duties and authorities hereunder if such statutory declarations,
certificates, opinions, lists, mailing labels or reports or other papers or
documents comply with the provisions of Section 6.8, if applicable, and with any
other applicable provisions of this Agreement. 

6.8      Evidence and
Authority to the Trustee 

                         Parent
and/or ExchangeCo shall furnish to Trustee evidence of compliance with the
conditions provided for in this Agreement relating to any action or step
required or permitted to be taken by Parent and/or ExchangeCo or Trustee under
this Agreement or as a result of any obligation imposed under this Agreement,
including, without limitation, in respect of the Voting Rights or the Exchange
Right or the Automatic Exchange Rights and the taking of any other action to be
taken by Trustee at the request of or on the application of Parent and/or
ExchangeCo promptly if and when: 

	 	(a) 	
      such evidence is required by any other section of this
      Agreement to be furnished to Trustee in accordance with the terms of this
      Section 6.8; or

	 	 	 
	 	(b) 	
      Trustee, in the exercise of its rights, powers, duties
      and authorities under this Agreement, gives Parent and/or ExchangeCo
      written notice requiring it to furnish such evidence in relation to any
      particular action or obligation specified in such
notice.

                         Such
evidence shall consist of an Officer’s Certificate of Parent and/or ExchangeCo
or a statutory declaration or a certificate made by Persons entitled to sign an
Officer’s Certificate stating that any such condition has been complied with in
accordance with the terms of this Agreement. 

                         Whenever
such evidence relates to a matter other than the Voting Rights or the Exchange
Right or the Automatic Exchange Rights or the taking of any other action to be
taken by Trustee at the request or on the application of Parent and/or
ExchangeCo, and except as otherwise specifically provided herein, such evidence
may consist of a report or opinion of any solicitor, attorney, auditor,
accountant, appraiser, valuer, engineer or other expert or any other Person
whose qualifications give authority to a statement made by him, provided that if
such report or opinion is furnished by a director, officer or employee of Parent
and/or ExchangeCo it shall be in the form of an Officer’s Certificate or a
statutory declaration. 

L-17 

                         Each
statutory declaration, Officer’s Certificate, opinion or report furnished to
Trustee as evidence of compliance with a condition provided for in this
Agreement shall include a statement by the Person giving the evidence: 

	 	(a) 	
      declaring that he has read and understands the provisions
      of this Agreement relating to the condition in question;

	 	 	 
	 	(b) 	
      describing the nature and scope of the examination or
      investigation upon which he based the statutory declaration, certificate,
      statement or opinion; and

	 	 	 
	 	(c) 	
      declaring that he has made such examination or
      investigation as he believes is necessary to enable him to make the
      statements or give the opinions contained or expressed
  therein.

6.9      Experts,
Advisers and Agents 

	 		
      Trustee may:

	 	 	 
	 	(a) 	
      in relation to these presents act and rely on the opinion
      or advice of or information obtained from any solicitor, attorney,
      auditor, accountant, appraiser, valuer, engineer or other expert, whether
      retained by Trustee or by Parent and/or ExchangeCo or otherwise, and may
      employ such assistants as may be necessary to the proper discharge of its
      powers and duties and determination of its rights hereunder and may pay
      proper and reasonable compensation for all such legal and other advice or
      assistance as aforesaid; and

	 	 	 
	 	(b) 	
      employ such agents and other assistants as it may
      reasonably require for the proper determination and discharge of its
      powers and duties hereunder, and may pay reasonable remuneration for all
      services performed for it (and shall be entitled to receive reasonable
      remuneration for all services performed by it) in the discharge of the
      trusts hereof and compensation for all disbursements, costs and expenses
      made or incurred by it in the discharge of its duties hereunder and in the
      management of the Trust.

6.10     Investment of
Moneys Held by the Trustee 

                         Unless
otherwise provided in this trust agreement, any moneys held by or on behalf of
Trustee which under the terms of this trust agreement may or ought to be
invested or which may be on deposit with Trustee or which may be in the hands of
Trustee may be invested and reinvested in the name or under the control of
Trustee in securities in which, under the laws of the Province of British
Columbia, trustees are authorized to invest trust moneys, provided that such
securities are stated to mature within two years after their purchase by
Trustee, and Trustee shall so invest such moneys on the written direction of
ExchangeCo. Pending the investment of any moneys as hereinbefore provided, such
moneys may be deposited in the name of Trustee in any chartered bank in Canada
or, with the consent of ExchangeCo, in the deposit department of Trustee or any
other loan or trust company authorized to accept deposits under the laws of
Canada or any province thereof at the rate of interest then current on similar
deposits. 

6.11     Trustee Not
Required to Give Security 

                         Trustee
shall not be required to give any bond or security in respect of the execution
of the trusts, rights, duties, powers and authorities of this Agreement or
otherwise in respect of the premises. 

6.12     Trustee Not Bound
to Act on Request 

                         Except
as in this Agreement otherwise specifically provided, Trustee shall not be bound
to act in accordance with any direction or request of Parent and/or ExchangeCo
or of the directors thereof until a duly authenticated copy of the instrument or
resolution containing such direction or request shall have been delivered to

L-18 

Trustee, and Trustee shall be empowered to act upon any such
copy purporting to be authenticated and believed by Trustee to be genuine. 

6.13     Authority to
Carry on Business 

                         Trustee
represents to Parent and ExchangeCo that at the date of execution and delivery
by it of this Agreement it is authorized to carry on the business of a trust
company in each of the Provinces of Canada but if, notwithstanding the
provisions of this Section 6.13, it ceases to be so authorized to carry on
business, the validity and enforceability of this Agreement and the Voting
Rights, the Exchange Right and the Automatic Exchange Rights shall not be
affected in any manner whatsoever by reason only of such event but Trustee
shall, within 90 days after ceasing to be authorized to carry on the business of
a trust company in any Province of Canada, either become so authorized or resign
in the manner and with the effect specified in Article 9. 

6.14     Conflicting
Claims 

                         If
conflicting claims or demands are made or asserted with respect to any interest
of any Beneficiary in any Exchangeable Shares, including any disagreement
between the heirs, representatives, successors or assigns succeeding to all or
any part of the interest of any Beneficiary in any Exchangeable Shares,
resulting in conflicting claims or demands being made in connection with such
interest, then Trustee shall be entitled, at its sole discretion, to refuse to
recognize or to comply with any such claims or demands. In so refusing, Trustee
may elect not to exercise any Voting Rights, Exchange Rights or Automatic
Exchange Rights subject to such conflicting claims or demands and, in so doing,
Trustee shall not be or become liable to any Person on account of such election
or its failure or refusal to comply with any such conflicting claims or demands.
Trustee shall be entitled to continue to refrain from acting and to refuse to
act until: 

	 	(a) 	
      the rights of all adverse claimants with respect to the
      Voting Rights, Exchange Right or Automatic Exchange Rights subject to such
      conflicting claims or demands have been adjudicated by a final judgment of
      a court of competent jurisdiction and all rights of appeal have expired;
      or

	 	 	 
	 	(b) 	
      all differences with respect to the Voting Rights,
      Exchange Right or Automatic Exchange Rights subject to such conflicting
      claims or demands have been conclusively settled by a valid written
      agreement binding on all such adverse claimants, and Trustee shall have
      been furnished with an executed copy of such agreement certified to be in
      full force and effect.

                         If
Trustee elects to recognize any claim or comply with any demand made by any such
adverse claimant, it may in its discretion require such claimant to furnish such
surety bond or other security satisfactory to Trustee as it shall deem
appropriate to fully indemnify it as between all conflicting claims or demands.

6.15     Acceptance of
Trust 

                         Trustee
hereby accepts the Trust created and provided for by and in this Agreement and
agrees to perform the same upon the terms and conditions herein set forth and to
hold all rights, privileges and benefits conferred hereby and by law in trust
for the various Persons who shall from time to time be Beneficiaries, subject to
all the terms and conditions herein set forth. 

6.16     Incumbency
Certificate 

                         Each
of Parent and ExchangeCo shall file with Trustee a certificate of incumbency
setting forth the names of the individuals authorized to give instructions,
directions or other instruments to Trustee (each an “Authorized Person”),
together with specimen signatures of such persons, and Trustee shall be entitled
to rely on the latest certificate of incumbency filed with it unless it receives
notice, in accordance with Section 13.3 of this Agreement, of a change in the
Authorized Persons with updated specimen signatures. 

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ARTICLE 7 
COMPENSATION 

7.1      Fees and
Expenses of Trustee 

                         Parent
and ExchangeCo jointly and severally agree to pay Trustee reasonable
compensation for all of the services rendered by it under this Agreement and
will reimburse Trustee for all reasonable expenses (including taxes other than
taxes based on the net income of Trustee) and disbursements (including
reasonable travel expenses incurred by Trustee in connection with its duties
hereunder and reasonable compensation and reasonable remuneration paid by
Trustee in connection with the retainer or employment of experts, advisors and
agents under Sections 5.14 and 6.9), including the cost and expense of any suit
or litigation of any character and any proceedings before any governmental
agency reasonably incurred by Trustee in connection with its duties under this
Agreement; provided that Parent and ExchangeCo shall have no obligation to
reimburse Trustee for any expenses or disbursements paid, incurred or suffered
by Trustee in any suit or litigation in which Trustee is determined to have
acted in bad faith or with negligence, recklessness or wilful misconduct.
Invoices for services rendered by Trustee hereunder shall be provided to Parent,
on behalf of Parent and ExchangeCo, at the address of the Parent set forth in
Section 13.3 of this Agreement. Any amount owing or unpaid after 30 days from
the invoice date will bear interest at a rate per annum, from the expiration of
such 30 day period, equal to the then current rate charged by Trustee and shall
be payable on demand. The obligation of Parent and ExchangeCo under this Section
7.1 shall survive the resignation or removal of Trustee. 

ARTICLE 8 
INDEMNIFICATION AND LIMITATION OF
LIABILITY 

8.1    
 Indemnification of Trustee 

                         Parent
and ExchangeCo jointly and severally agree to indemnify and hold harmless
Trustee and each of its directors, officers and agents appointed and acting in
accordance with this Agreement (collectively, the “Indemnified Parties”)
against all claims, losses, damages, reasonable costs, penalties, fines and
reasonable expenses (including reasonable expenses of Trustee’s legal counsel)
which, without fraud, negligence, recklessness, wilful misconduct or bad faith
on the part of such Indemnified Party, may be paid, incurred or suffered by the
Indemnified Party by reason or as a result of Trustee’s acceptance or
administration of the Trust, its compliance with its duties set forth in this
Agreement, or any written or oral instruction delivered to Trustee by Parent or
ExchangeCo pursuant hereto. 

                         In
no case shall Parent or ExchangeCo be liable under this indemnity for any claim
against any of the Indemnified Parties unless Parent and ExchangeCo shall be
notified by Trustee of the written assertion of a claim or of any action
commenced against the Indemnified Parties, promptly after any of the Indemnified
Parties shall have received any such written assertion of a claim or shall have
been served with a summons or other first legal process giving information as to
the nature and basis of the claim. Subject to (ii) below, Parent and ExchangeCo
shall be entitled to participate at their own expense in the defence and, if
Parent and ExchangeCo so elect at any time after receipt of such notice, either
of them may assume the defence of any suit brought to enforce any such claim.
Trustee shall have the right to employ separate counsel in any such suit and
participate, in the defence thereof but the fees and expenses of such counsel
shall be at the expense of Trustee unless: (i) the employment of such counsel
has been authorized by Parent or ExchangeCo; or (ii) the named parties to any
such suit include both Trustee and Parent or ExchangeCo and Trustee shall have
been advised by counsel acceptable to Parent or ExchangeCo that there may be one
or more legal defences available to Trustee that are different from or in
addition to those available to Parent or ExchangeCo and that, in the judgment of
such counsel, would present a conflict of interest were a joint representation
to be undertaken (in which case Parent and ExchangeCo shall not have the right
to assume the defence of such suit on behalf of Trustee but shall be liable to
pay the reasonable fees and expenses of counsel for Trustee). 

                         For
certainty, the indemnity provided for in this Section 8.1 shall survive the
termination of the Agreement. 

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8.2      Limitation
on Liability 

                         Trustee
shall not be held liable for any loss which may occur by reason of depreciation
of the value of any part of the Trust Estate or any loss incurred on any
investment of funds pursuant to this trust agreement, except to the extent that
such loss is attributable to the fraud, negligence, recklessness, wilful
misconduct or bad faith on the part of Trustee. 

ARTICLE 9 
CHANGE OF TRUSTEE 

9.1      Resignation

                         Trustee,
or any Trustee hereafter appointed, may at any time resign by giving written
notice of such resignation to Parent and ExchangeCo specifying the date on which
it desires to resign, provided that such notice shall not be given less than one
month before such desired resignation date unless Parent and ExchangeCo
otherwise agree and provided further that such resignation shall not take effect
until the date of the appointment of a successor Trustee and the acceptance of
such appointment by the successor Trustee. Upon receiving such notice of
resignation, Parent and ExchangeCo shall promptly appoint a successor Trustee by
written instrument in duplicate, one copy of which shall be delivered to the
resigning Trustee and one copy to the successor Trustee. Failing acceptance by a
successor Trustee of such appointment, a successor Trustee may be appointed by
an order of a court of competent jurisdiction upon application of one or more of
the parties hereto, at the expense of Parent and ExchangeCo. 

9.2      Removal

                         Trustee,
or any Trustee hereafter appointed, may (provided a successor Trustee is
appointed) be removed at any time on not less than 30 days’ prior notice by
written instrument executed by Parent and ExchangeCo, in duplicate, one copy of
which shall be delivered to Trustee so removed and one copy to the successor
Trustee. 

9.3      Successor
Trustee 

                         Any
successor Trustee appointed as provided under this Agreement shall execute,
acknowledge and deliver to Parent and ExchangeCo and to its predecessor Trustee
an instrument accepting such appointment. Thereupon the resignation or removal
of the predecessor Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, duties and obligations of its predecessor under this Agreement,
with the like effect as if originally named as Trustee in this Agreement.
However, on the written request of Parent and ExchangeCo or of the successor
Trustee, Trustee ceasing to act shall, upon payment of any amounts then due it
pursuant to the provisions of this Agreement, execute and deliver an instrument
transferring to such successor Trustee all the rights and powers of Trustee so
ceasing to act. Upon the request of any such successor Trustee, Parent,
ExchangeCo and such predecessor Trustee shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor
Trustee all such rights and powers. 

9.4      Notice of
Successor Trustee 

                         Upon
acceptance of appointment by a successor Trustee as provided herein, Parent and
ExchangeCo shall cause to be mailed notice of the succession of such Trustee
hereunder to each Beneficiary specified in a List. If Parent or ExchangeCo shall
fail to cause such notice to be mailed within 10 days after acceptance of
appointment by the successor Trustee, the successor Trustee shall cause such
notice to be mailed at the expense of Parent and ExchangeCo. 

L-21 

ARTICLE 10 
PARENT SUCCESSORS 

10.1     Certain
Requirements in Respect of Combination, etc. 

                         Parent
shall not consummate any transaction (whether by way of reconstruction,
reorganization, consolidation, merger, transfer, sale, lease or otherwise)
whereby all or substantially all of its undertaking, property and assets would
become the property of any other Person or, in the case of a merger, of the
continuing corporation resulting therefrom unless, but may do so if such other
Person or continuing corporation (herein called the “Parent Successor”),
by operation of law, becomes, without more, bound by the terms and provisions of
this Agreement or, if not so bound, executes, prior to or contemporaneously with
the consummation of such transaction, a trust agreement supplemental hereto to
evidence the assumption by the Parent Successor of liability for all moneys
payable and property deliverable hereunder and the covenant of such Parent
Successor to pay and deliver or cause to be delivered the same and its agreement
to observe and perform all the covenants and obligations of Parent under this
Agreement. 

10.2     Vesting of Powers
in Successor 

                         Whenever
the conditions of Section 10.1 have been duly observed and performed, Trustee
and, if required by Section 10.1, Parent Successor and ExchangeCo shall execute
and deliver the supplemental trust agreement provided for in Article 11 and
thereupon Parent Successor shall possess and from time to time may exercise each
and every right and power of Parent under this Agreement in the name of Parent
or otherwise and any act or proceeding by any provision of this Agreement
required to be done or performed by the Board of Directors of Parent or any
officers of Parent may be done and performed with like force and effect by the
directors or officers of such Parent Successor. 

10.3     Wholly-Owned
Subsidiaries 

                         Nothing
herein shall be construed as preventing the amalgamation or merger of any
wholly-owned direct or indirect subsidiary of Parent with or into Parent or the
winding-up, liquidation or dissolution of any wholly-owned subsidiary of Parent
provided that all of the assets of such subsidiary are transferred to Parent or
another wholly-owned direct or indirect subsidiary of Parent and any such
transactions are expressly permitted by this Article 10. 

ARTICLE 11 
AMENDMENTS AND SUPPLEMENTAL TRUST
AGREEMENTS 

11.1     Amendments,
Modifications, etc. 

                         This
Agreement may not be amended or modified except by an agreement in writing
executed by Parent, ExchangeCo and Trustee and approved by the Beneficiaries in
accordance with Section 10.2 of the Exchangeable Share Provisions. 

11.2     Ministerial
Amendments 

                         Notwithstanding
the provisions of Section 11.1, the parties to this Agreement may in writing, at
any time and from time to time, without the approval of the Beneficiaries, amend
or modify this Agreement for the purposes of: 

	 	(a) 	
      adding to the covenants of any or all parties hereto for
      the protection of the Beneficiaries hereunder provided that the Board of
      Directors of each of ExchangeCo and Parent shall be of the good faith
      opinion that such additions will not be prejudicial to the rights or
      interests of the Beneficiaries;

L-22 

	 	(b) 	
      making such amendments or modifications not inconsistent
      with this Agreement as may be necessary or desirable with respect to
      matters or questions which, in the good faith opinion of the Board of
      Directors of each of Parent and ExchangeCo and in the opinion of Trustee
      (which may, for this purpose, rely on the opinion of counsel), having in
      mind the best interests of the Beneficiaries, it may be expedient to make,
      provided that such Boards of Directors and Trustee shall be of the opinion
      that such amendments and modifications will not be prejudicial to the
      interests of the Beneficiaries; or

	 	 	 
	 	(c) 	
      making such changes or corrections which, on the advice
      of counsel to Parent, ExchangeCo and Trustee, are required for the purpose
      of curing or correcting any ambiguity or defect or inconsistent provision
      or clerical omission or mistake or manifest error, provided that in the
      opinion of Trustee (which may, for this purpose, rely on the opinion of
      counsel) and the Board of Directors of each of Parent and ExchangeCo such
      changes or corrections will not be prejudicial to the rights and interests
      of the Beneficiaries.

11.3     Meeting to
Consider Amendments 

                         ExchangeCo,
at the request of Parent, shall call a meeting or meetings of the Beneficiaries
for the purpose of considering any proposed amendment or modification requiring
approval pursuant hereto. Any such meeting or meetings shall be called and held
in accordance with the by-laws of ExchangeCo, the Exchangeable Share Provisions
and all applicable laws. 

11.4     Changes in
Capital of Parent and ExchangeCo 

                         At
all times after the occurrence of any event contemplated pursuant to Section 2.7
or 2.8 of the Exchangeable Share Support Agreement or otherwise, as a result of
which either Parent Common Shares or the Exchangeable Shares or both are in any
way changed, this Agreement shall forthwith be amended and modified as necessary
in order that it shall apply with full force and effect, mutatis mutandis, to
all new securities into which Parent Common Shares or the Exchangeable Shares or
both are so changed and the parties hereto shall execute and deliver a
supplemental trust agreement giving effect to and evidencing such necessary
amendments and modifications. 

11.5     Execution of
Supplemental Trust Agreements 

                         No
amendment to or modification or waiver of any of the provisions of this
Agreement otherwise permitted hereunder shall be effective unless made in
writing and signed by all of the parties hereto. From time to time ExchangeCo
(when authorized by a resolution of its Board of Directors), Parent (when
authorized by a resolution of its Board of Directors) and Trustee may, subject
to the provisions of these presents, and they shall, when so directed by these
presents, execute and deliver by their proper officers, trust agreements or
other instruments supplemental hereto, which thereafter shall form part hereof,
for any one or more of the following purposes: 

	 	(a) 	
      evidencing the succession of Parent Successors and the
      covenants of and obligations assumed by each such Parent Successor in
      accordance with the provisions of Article 10 and any successor Trustee in
      accordance with the provisions of Article 9 and Section 12.3;

	 	 	 
	 	(b) 	
      making any additions to, deletions from or alterations of
      the provisions of this Agreement or the Voting Rights, the Exchange Right
      or the Automatic Exchange Rights which, in the opinion of Trustee (which
      may, for this purpose, rely on the opinion of counsel), will not be
      prejudicial to the interests of the Beneficiaries or are, in the opinion
      of counsel to Trustee, necessary or advisable in order to incorporate,
      reflect or comply with any legislation the provisions of which apply to
      Parent, ExchangeCo, Trustee or this Agreement; and

	 	 	 
	 	(c) 	
      for any other purposes not inconsistent with the
      provisions of this Agreement, including without limitation, to make or
      evidence any amendment or modification to this Agreement
  as

L-23 

 contemplated hereby, provided that, in the opinion of Trustee
(which may, for this purpose, rely on the opinion of counsel), the rights of
Trustee and Beneficiaries will not be prejudiced thereby. 

ARTICLE 12 
TERMINATION AND ASSIGNMENT 

12.1     Term 

                         The
Trust created by this Agreement shall continue until the earliest to occur of
the following events: 

	 	(a) 	
      no outstanding Exchangeable Shares are held by a
      Beneficiary (other than Parent and its Affiliates);

	 	 	 
	 	(b) 	
      each of Parent and ExchangeCo elects in writing to
      terminate the Trust and such termination is approved by the Beneficiaries
      in accordance with Section 10.2 of the Exchangeable Share Provisions;
      and

	 	 	 
	 	(c) 	
      21 years from the date of this
  Agreement.

12.2     Survival of
Agreement 

                         This
Agreement shall survive any termination of the Trust and shall continue until
there are no Exchangeable Shares outstanding held by a Beneficiary; provided,
however, that the provisions of Article 7 and Article 8 shall survive any such
termination of this Agreement. 

12.3     Assignment by
Trustee 

                         This
Agreement may not be assigned by Trustee without the prior written consent of
Parent and ExchangeCo, not to be unreasonably withheld; provided, however, that
this Agreement may be assigned by Trustee to an Affiliate (the
“Assignee”) if (a) the Assignee executes, acknowledges and delivers to
Parent and ExchangeCo a trust agreement of other instrument(s) supplemental
hereto as provided in Article 11 to evidence the appointment of it as successor
Trustee and the acceptance by it of such appointment and the assumption by it of
all the duties and obligations of the predecessor Trustee hereunder without
further amendment hereto, and (b) Parent and ExchangeCo are provided with a
certificate of a senior officer of the Assignee in form satisfactory to them,
acting reasonably, certifying that the Assignee is authorized to carry on the
business of a trust company in each of the Provinces of Canada and is free of
any material conflict of interest in its role as fiduciary under this Agreement
and in its role in any other capacity. 

ARTICLE 13 
GENERAL 

13.1     Severability

                         If
any provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity, legality or enforceability of the remainder of this Agreement
shall not in any way be affected or impaired thereby and the Agreement shall be
carried out as nearly as possible in accordance with its original terms and
conditions. 

13.2     Enurement

                         This
Agreement shall be binding upon and enure to the benefit of the parties hereto
and their respective successors and permitted assigns and to the benefit of the
Beneficiaries. 

L-24 

13.3     Notices to
Parties 

                         All
notices and other communications required or permitted to be delivered to a
party under this Agreement shall be in writing and shall be deemed to have been
properly delivered, given or received upon receipt when delivered by hand or two
business days after being sent by registered mail or by courier or by express
delivery service or by facsimile, provided that in each case the notice or
communication is sent to the address or a facsimile telephone number set forth
beneath the name of such party below: 

	 	(a) 		if to ExchangeCo or Parent to:
  
	 	 	  	 
	 	 	  	Keewatin Windpower Corp. 
	 	 	  	Suite 617 
	 	 	 	666 Burrard Street
    
	 	 	  	Vancouver, BC V6C 3P6 
	 	 	 	Attention:
      President 
	 	 	  	Fax: (604) 601-2070 
	 	 	  	 
	 	(b) 		with copy (but not as notice) to:
    
	 	 	  	 
	 	 	 	Clark Wilson LLP
  
	 	 	  	800 – 885 W. Georgia Street

	 	 	  	Vancouver, BC V6C 3H1 
	 	 	  	Attention: Bernard Pinsky 
	 	 	  	Fax: (604) 687-6314 
	 	 	  	
	 	(c) 		if to Trustee to: 
	 	 	  	 
	 	 	  	Valiant Trust Company 
	 	 	  	600 – 750 Cambie Street 
	 	 	  	Vancouver, BC V6B 0A2 
	 	 	  	Attention: Manager, Client
      Services 
	 	 	  	Fax: (604) 681-3067

Any notice or other communication given personally shall be
deemed to have been given and received upon delivery thereof and if given by fax
shall be deemed to have been given and received on the date of receipt thereof
unless such day is not a Business Day in which case it shall be deemed to have
been given and received upon the immediately following Business Day. 

13.4     Notice to
Beneficiaries 

                         Any
and all notices to be given and any documents to be sent to any Beneficiaries
may be given or sent to the address of such Beneficiary shown on the register of
holders of Exchangeable Shares in any manner permitted by the by-laws of
ExchangeCo from time to time in force in respect of notices to shareholders and
shall be deemed to be received (if given or sent in such manner) at the time
specified in such by-laws, the provisions of which by-laws shall apply mutatis
mutandis to notices or documents as aforesaid sent to such Beneficiaries. 

13.5     Risk of Payments
by Post 

                         Whenever
payments are to be made or documents are to be sent to any Beneficiary by
Trustee or Beneficiary to Trustee, the making of such payment or sending of such
document sent through the post shall be at risk of the Parent and ExchangeCo, in
the case of payments made or documents sent by Trustee, and at the risk of the
Beneficiary, in the case of payments made or documents sent by the Beneficiary.

L-25 

13.6     Counterparts

                         This
Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same
instrument. 

13.7     Fax execution

                         This
Agreement may be executed by delivery of executed signature pages by fax and
such fax execution will be effective for all purposes. 

13.8     Jurisdiction

                         This
Agreement shall be construed and enforced in accordance with the laws of the
Province of British Columbia and the laws of Canada applicable therein. 

13.9     Attornment

                         Parent
agrees that any action or proceeding arising out of or relating to this
Agreement may be instituted in the courts of British Columbia, waives any
objection which it may have now or hereafter to the venue of any such action or
proceeding, irrevocably submits to the jurisdiction of the said courts in any
such action or proceeding, and hereby appoints ExchangeCo at its registered
office in the Province of British Columbia as Parent’s attorney for service of
process. 

                         IN
WITNESS WHEREOF the parties hereto have caused this Agreement to be duly
executed as of the date first above written. 

KEEWATIN WINDPOWER INC. 

Per:    
____________________________________
Name: Chris Craddock

Title:   President 

 

KEEWATIN WINDPOWER CORP. 

Per:    
____________________________________
Name: Chris Craddock

Title:   President 

 

VALIANT TRUST COMPANY 

Per:    
____________________________________
Name: Janet M. Brown

Title:   Managing Director, Client Services 

Per:    
____________________________________
Name: Ramie Lousa 
Title:  
Manager, Client Services 

SCHEDULE M 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Form of Exchangeable Share Support Agreement

 

EXCHANGEABLE SHARE SUPPORT AGREEMENT 

THIS AGREEMENT dated for reference May 11, 2009. 

AMONG: 

  
    
      KEEWATIN WINDPOWER CORP., a corporation incorporated
        under the laws of the State of Nevada

      (“Parent”) 

    

  

AND 

  
    
      KEEWATIN WINDPOWER INC., a corporation incorporated
        under the laws of Saskatchewan 

      (“ExchangeCo”) 

    

  

WHEREAS: 

A.        Pursuant to a
share exchange agreement (the “Share Exchange Agreement”) dated for
reference May 11, 2009 by and among Parent, ExchangeCo, Sky Harvest Windpower
Corp. (the “Company”) and all of the shareholders of the Company,
ExchangeCo has agreed to issue exchangeable shares (the “Exchangeable
Shares”) to certain holders of common shares of the Company pursuant to the
terms of the Share Exchange Agreement; and 

B.        Pursuant to the
Share Exchange Agreement, Parent and ExchangeCo have agreed to execute an
exchangeable share support agreement substantially in the form of this
Agreement. 

THEREFORE in consideration of the respective covenants and
agreements provided in this Agreement and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged),
the parties hereto covenant and agree as follows: 

ARTICLE 1 
DEFINITIONS AND INTERPRETATION 

1.1      Defined
Terms 

                         Each
term denoted herein by initial capital letters and not otherwise defined herein
shall have the meaning ascribed thereto in the rights, privileges, restrictions
and conditions (collectively, the “Share Provisions”) attaching to the
Exchangeable Shares attached as Schedule O to the Share Exchange Agreement,
unless the context requires otherwise. 

1.2    
 Interpretation Not Affected by Headings 

                         The
division of this Agreement into Articles, Sections and other portions and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation of this 

M-2 

Agreement. Unless otherwise indicated, all references to an
“Article” or “Section” followed by a number and/or a letter refer to the
specified Article or Section of this Agreement. The terms “this Agreement”,
“hereof”, “herein” and “hereunder” and similar expressions refer to this
Agreement and not to any particular Article, Section or other portion hereof and
include any agreement or instrument supplementary or ancillary hereto. 

1.3      Number,
Gender 

                         Words
importing the singular number only shall include the plural and vice versa.
Words importing any gender shall include all genders. 

1.4      Date for any
Action 

                         If
any date on which any action is required to be taken under this Agreement is not
a Business Day, such action shall be required to be taken on the next succeeding
Business Day. For the purposes of this agreement, a “Business Day” means any day
on which commercial banks are generally open for business in Vancouver, British
Columbia, other than a Saturday, a Sunday or a day observed as a holiday in
Vancouver, British Columbia under the laws of the Province of British Columbia
or the federal laws of Canada. 

ARTICLE 2 
COVENANTS OF PARENT AND EXCHANGECO

2.1      Covenants
Regarding Exchangeable Shares 

                         So
long as any Exchangeable Shares not owned by Parent or its Affiliates are
outstanding, Parent will: 

	 	(a) 	
      not declare or pay any dividends on the Parent Common
      Stock unless (i) ExchangeCo shall (w) simultaneously declare or pay, as
      the case may be, an equivalent dividend (as provided for in the Share
      Provisions and as determined by the Board of Directors of ExchangeCo as
      contemplated by Section 2.7(d) hereof) on the Exchangeable Shares (an
      “Equivalent Dividend”) and (x) have sufficient money or other
      assets or authorized but unissued securities available to enable the due
      declaration and the due and punctual payment, in accordance with
      applicable law, of any Equivalent Dividend, or (ii) ExchangeCo shall (y)
      subdivide the Exchangeable Shares in lieu of a stock dividend thereon (as
      provided for in the Share Provisions) (an “Equivalent Stock
      Subdivision”), and (z) have sufficient authorized but unissued
      securities available to enable the Equivalent Stock Subdivision;

	 	 	 
	 	(b) 	
      advise ExchangeCo sufficiently in advance of the
      declaration by Parent of any dividend on Parent Common Stock and take all
      such other actions as are reasonably necessary, in cooperation with
      ExchangeCo, to ensure that the respective declaration date, record date
      and payment date for a dividend on the Exchangeable Shares shall be the
      same as the declaration date, record date and payment date for the
      corresponding dividend on the Parent Common Stock;

	 	 	 
	 	(c) 	
      ensure that the record date for any dividend declared on
      Parent Common Stock is not less than 10 Business Days after the
      declaration date of such dividend;

	 	 	 
	 	(d) 	
      take all such actions and do all such things as are
      reasonably necessary or desirable to enable and permit ExchangeCo, in
      accordance with applicable law, to pay and otherwise perform its
      obligations with respect to the satisfaction of the Liquidation Amount,
      the Retraction Price or the Redemption Price in respect of each issued and
      outstanding Exchangeable Share upon the liquidation, dissolution or
      winding-up of ExchangeCo, the delivery of a Retraction Request by a holder
      of Exchangeable Shares or a redemption of Exchangeable Shares by
      ExchangeCo, as the case may be, including without limitation all such
      actions and all such things as are necessary or desirable to enable and
      permit ExchangeCo to cause to be delivered Parent Common Stock to
    the

M-3 

	 		
      holders of Exchangeable Shares in accordance with the
      provisions of Article 5, 6 or 7, as the case may be, of the Share
      Provisions; and

	 	 	 
	 	(e) 	
      take all such actions and do all such things as are
      reasonably necessary or desirable to enable and permit ExchangeCo, in
      accordance with applicable law, to perform its obligations arising upon
      the exercise by ExchangeCo of the Liquidation Call Right, the Retraction
      Call Right or the Redemption Call Right, including without limitation all
      such actions and all such things as are necessary or desirable to enable
      and permit ExchangeCo to cause to be delivered Parent Common Stock to the
      holders of Exchangeable Shares in accordance with the provisions of the
      Liquidation Call Right, the Retraction Call Right or the Redemption Call
      Right, as the case may be.

2.2       Segregation
of Funds 

                         Parent
will cause ExchangeCo to deposit a sufficient amount of funds in a separate
account of ExchangeCo and segregate a sufficient amount of such other assets and
property as is necessary to enable ExchangeCo to pay dividends when due and to
pay or otherwise satisfy its respective obligations under Article 5, 6 or 7 of
the Share Provisions, as applicable. 

2.3       Reservation
of Parent Common Stock 

                         Parent
hereby represents, warrants and covenants in favour of ExchangeCo that Parent
has reserved for issuance and will, at all times while any Exchangeable Shares
(other than Exchangeable Shares held by Parent or its Affiliates) are
outstanding, keep available, free from pre-emptive and other rights, out of its
authorized and unissued capital stock such number of Parent Common Stock (or
other shares or securities into which Parent Common Stock may be reclassified or
changed as contemplated by Section 2.7 hereof) (a) as is equal to the sum of (i)
the number of Exchangeable Shares issued and outstanding from time to time and
(ii) the number of Exchangeable Shares issuable upon the exercise of all rights
to acquire Exchangeable Shares outstanding from time to time and (b) as are now
and may hereafter be required to enable and permit Parent to meet its
obligations under the Voting and Exchange Trust Agreement and under any other
security or commitment pursuant to which Parent may now or hereafter be required
to issue Parent Common Stock, to enable and permit ExchangeCo to meet its
obligations under each of the Liquidation Call Right, the Retraction Call Right
and the Redemption Call Right and its respective obligations hereunder and under
the Share Provisions. 

2.4      
Notification of Certain Events 

                         In
order to assist Parent to comply with its obligations hereunder and to permit
ExchangeCo to exercise the Liquidation Call Right, the Retraction Call Right and
the Redemption Call Right, ExchangeCo will notify Parent of each of the
following events at the time set forth below: 

	 	(a) 	
      in the event of any determination by the Board of
      Directors of ExchangeCo to institute voluntary liquidation, dissolution or
      winding-up proceedings with respect to ExchangeCo or to effect any other
      distribution of the assets of ExchangeCo among its shareholders for the
      purpose of winding up its affairs, at least 60 days prior to the proposed
      effective date of such liquidation, dissolution, winding-up or other
      distribution;

	 	 	 
	 	(b) 	
      promptly, upon the earlier of receipt by ExchangeCo of
      notice of and ExchangeCo otherwise becoming aware of any threatened or
      instituted claim, suit, petition or other proceedings with respect to the
      involuntary liquidation, dissolution or winding-up of ExchangeCo or to
      effect any other distribution of the assets of ExchangeCo among its
      shareholders for the purpose of winding up its affairs;

	 	 	 
	 	(c) 	
      immediately, upon receipt by ExchangeCo of a Retraction
      Request;

	 	 	 
	 	(d) 	
      on the same date on which notice of redemption is given
      to holders of Exchangeable Shares, upon the determination of a Redemption
      Date in accordance with the Share Provisions;
and

M-4 

	 	(e) 	
      as soon as practicable upon the issuance by ExchangeCo of
      any Exchangeable Shares or rights to acquire Exchangeable Shares (other
      than the issuance of Exchangeable Shares and rights to acquire
      Exchangeable Shares in exchange for outstanding Common Shares of the
      Company pursuant to the Share Exchange Agreement).

2.5       Delivery
of Parent Common Stock to ExchangeCo 

                         In
furtherance of its obligations under Sections 2.1(d) and (e) hereof, upon notice
from ExchangeCo of any event that requires ExchangeCo to cause to be delivered
Parent Common Stock to any holder of Exchangeable Shares, Parent shall forthwith
issue and deliver or cause to be delivered to ExchangeCo the requisite number of
Parent Common Stock to be received by, and issued to or to the order of, the
former holder of the surrendered Exchangeable Shares, as ExchangeCo shall
direct. All such Parent Common Stock shall be duly authorized and validly issued
as fully paid and non-assessable and shall be free and clear of any lien, claim
or encumbrance. In consideration of the issuance and delivery of each such
Parent Common Share, ExchangeCo shall issue to Parent, or as Parent shall
direct, common shares of ExchangeCo having equivalent value. 

2.6      
Qualification of Parent Common Stock 

                         Parent
will in good faith expeditiously take all such reasonable actions and do all
such reasonable things as are necessary or desirable to cause any Parent Common
Stock (or other shares or securities into which Parent Common Stock may be
reclassified or changed as contemplated by Section 2.7 hereof) to be issued and
delivered hereunder, to be listed, quoted or posted for trading on all stock
exchanges and quotation systems on which outstanding Parent Common Stock (or
such other shares or securities) have been listed by Parent and remain listed
and quoted or posted for trading. 

2.7      
Economic Equivalence 

	 	(a) 	
      Parent will not without prior approval of ExchangeCo and
      the prior approval of the holders of the Exchangeable Shares given in
      accordance with Section 10.2 of the Share Provisions:

	 	 	 	 
	 		(i) 	
      issue or distribute Parent Common Stock (or securities
      exchangeable for or convertible into or carrying rights to acquire Parent
      Common Stock) to the holders of all or substantially all of the then
      outstanding Parent Common Stock by way of stock dividend or other
      distribution, other than an issue of Parent Common Stock (or securities
      exchangeable for or convertible into or carrying rights to acquire Parent
      Common Stock) to holders of Parent Common Stock who exercise an option to
      receive dividends in Parent Common Stock (or securities exchangeable for
      or convertible into or carrying rights to acquire Parent Common Stock) in
      lieu of receiving cash dividends; or

	 	 	 	 
	 		(ii) 	
      issue or distribute rights, options or warrants to the
      holders of all or substantially all of the then outstanding Parent Common
      Stock entitling them to subscribe for or to purchase Parent Common Stock
      (or securities exchangeable for or convertible into or carrying rights to
      acquire Parent Common Stock); or

	 	 	 	 
	 		(iii) 	
      issue or distribute to the holders of all or
      substantially all of the then outstanding Parent Common Stock (A) shares
      or securities of Parent of any class other than Parent Common Stock (other
      than shares convertible into or exchangeable for or carrying rights to
      acquire Parent Common Stock), (B) rights, options or warrants other than
      those referred to in Section 2.7(a)(ii) above, (C) evidences of
      indebtedness of Parent or (D) assets of Parent, unless the economic
      equivalent (as determined by the Board of Directors of ExchangeCo as
      contemplated by Section 2.7(d) hereof) on a per share basis of such
      rights, options, securities, shares, evidences of indebtedness or other
      assets is issued or distributed simultaneously to holders of the
      Exchangeable Shares; provided that, for greater certainty, the above
      restrictions shall not apply to any securities issued or distributed
    by

M-5 

Parent in order to give effect to and
to consummate the transactions contemplated by, and in accordance with, the
Share Exchange Agreement. 

	 	(b) 	
      Parent will not without the prior approval of ExchangeCo
      and the prior approval of the holders of the Exchangeable Shares given in
      accordance with Section 10.2 of the Share Provisions:

	 	 	 	 
	 		(i) 	
      subdivide, redivide or change the then outstanding Parent
      Common Stock into a greater number of Parent Common Stock; or

	 	 	 	 
	 		(ii) 	
      reduce, combine, consolidate or change the then
      outstanding Parent Common Stock into a lesser number of Parent Common
      Stock; or

	 	 	 	 
	 		(iii) 	
      reclassify or otherwise change Parent Common Stock or
      effect an amalgamation, merger, reorganization or other transaction
      affecting Parent Common Stock,

	 	 	 	 
	 			
      unless the same or an economically equivalent change (as
      determined by the Board of Directors of ExchangeCo as contemplated by
      Section 2.7(d) hereof) shall simultaneously be made to, or in the rights
      of the holders of, the Exchangeable Shares.

	 	 	 	 
	 	(c) 	
      Parent will ensure that the record date for any event
      referred to in Section 2.7(a) or 2.7(b) above, or (if no record date is
      applicable for such event) the effective date for any such event, is not
      less than five Business Days after the date on which such event is
      declared or announced by Parent (with contemporaneous notification thereof
      by Parent to ExchangeCo).

	 	 	 	 
	 	(d) 	
      The Board of Directors of ExchangeCo shall determine, in
      good faith and in its sole discretion, economic equivalence for the
      purposes of any event referred to in Section 2.7(a) or 2.7(b) hereof and
      each such determination shall be conclusive and binding on Parent. In
      making each such determination, the following factors shall, without
      excluding other factors determined by the Board of Directors of ExchangeCo
      to be relevant, be considered by the Board of Directors of
    ExchangeCo:

	 	 	 	 
	 		(i) 	
      in the case of any stock dividend or other distribution
      payable in Parent Common Stock, the number of such shares issued in
      proportion to the number of Parent Common Stock previously
    outstanding;

	 	 	 	 
	 		(ii) 	
      in the case of the issuance or distribution of any
      rights, options or warrants to subscribe for or purchase Parent Common
      Stock (or securities exercisable or exchangeable for or convertible into
      or carrying rights to acquire Parent Common Stock), the relationship
      between the exercise price of each such right, option or warrant and the
      current market value (as determined by the Board of Directors of
      ExchangeCo in the manner above contemplated) of a Parent Common
    Share;

	 	 	 	 
	 		(iii) 	
      in the case of the issuance or distribution of any other
      form of property (including without limitation any shares or securities of
      Parent of any class other than Parent Common Stock, any rights, options or
      warrants other than those referred to in Section 2.7(d)(ii) above, any
      evidences of indebtedness of Parent or any assets of Parent), the
      relationship between the fair market value (as determined by the Board of
      Directors of ExchangeCo in the manner above contemplated) of such property
      to be issued or distributed with respect to each outstanding Parent Common
      Share and the current market value (as determined by the Board of
      Directors of ExchangeCo in the manner above contemplated) of a Parent
      Common Share;

	 	 	 	 
	 		(iv) 	
      in the case of any subdivision, redivision or change of
      the then outstanding Parent Common Stock into a greater number of Parent
      Common Stock or the reduction, combination, consolidation or change of the
      then outstanding Parent Common Stock into

M-6 

	 		
      a lesser number of Parent Common Stock or any
      amalgamation, merger, reorganization or other transaction affecting Parent
      Common Stock, the effect thereof upon the then outstanding Parent Common
      Stock; and

	 	 	 
	 	(v) 	
      in all such cases, the general taxation consequences of
      the relevant event to holders of Exchangeable Shares to the extent that
      such consequences may differ from the taxation consequences to holders of
      Parent Common Stock as a result of differences between taxation laws of
      Canada and the United States (except for any differing consequences
      arising as a result of differing marginal taxation rates and without
      regard to the individual circumstances of holders of Exchangeable
      Shares).

	 		
      For purposes of the foregoing determinations, the current
      market value of any security listed and traded or quoted on a securities
      exchange shall be the weighted average of the daily trading prices of such
      security during a period of not less than 20 consecutive trading days
      ending not more than three trading days before the date of determination
      on the principal securities exchange on which such securities are listed
      and traded or quoted; provided, however, that if in the opinion of the
      Board of Directors of ExchangeCo the public distribution or trading
      activity of such securities during such period does not create a market
      which reflects the fair market value of such securities, then the current
      market value thereof shall be determined by the Board of Directors of
      ExchangeCo, in good faith and in its sole discretion, and provided further
      that any such determination by the Board of Directors of ExchangeCo shall
      be conclusive and binding on Parent.

	 	 	 
	 	(e) 	
      ExchangeCo agrees that, to the extent required, upon due
      notice from Parent, ExchangeCo will use its best efforts to take or cause
      to be taken such steps as may be necessary for the purposes of ensuring
      that appropriate dividends are paid or other distributions are made by
      ExchangeCo, or subdivisions, redivisions or changes are made to the
      Exchangeable Shares, in order to implement the required economic
      equivalent with respect to the Parent Common Stock and Exchangeable Shares
      as provided for in this Section 2.7.

2.8       Tender
Offers 

                         In
the event that a tender offer, share exchange offer, issuer bid, take-over bid
or similar transaction for the purpose of acquiring the Parent Common Stock (an
“Offer”) is proposed by Parent or is proposed to Parent or its
shareholders and is recommended by the Board of Directors of Parent, or is
otherwise effected or to be effected with the consent or approval of the Board
of Directors of Parent, and the Exchangeable Shares are not redeemed by
ExchangeCo pursuant to the Redemption Call Right, Parent will use its reasonable
efforts expeditiously and in good faith to take all such actions and do all such
things as are necessary or desirable to enable and permit holders of
Exchangeable Shares to participate in such Offer to the same extent and on an
economically equivalent basis as the holders of Parent Common Stock, without
discrimination. Without limiting the generality of the foregoing, Parent will
use its reasonable efforts expeditiously and in good faith to ensure that
holders of Exchangeable Shares may participate in all such Offers without being
required to retract Exchangeable Shares as against ExchangeCo (or, if so
required, to ensure that any such retraction, shall be effective only upon, and
shall be conditional upon, the closing of the Offer and only to the extent
necessary to tender or deposit to the Offer). Nothing herein shall affect the
rights of ExchangeCo to redeem Exchangeable Shares, as applicable, in the event
of a Parent Control Transaction. 

2.9      
Ownership of Outstanding Shares 

                         Without
the prior approval of ExchangeCo and the prior approval of the holders of the
Exchangeable Shares given in accordance with Section 10.2 of the Share
Provisions, Parent covenants and agrees in favour of ExchangeCo that, as long as
any outstanding Exchangeable Shares are owned by any person or entity other than
Parent or any of its Affiliates, Parent will be and remain the direct or
indirect beneficial owner of all issued and outstanding voting shares in the
capital of ExchangeCo. 

M-7 

2.10       Parent
and Affiliates Not to Vote Exchangeable Shares 

                         Parent
covenants and agrees that it will appoint and cause to be appointed proxyholders
with respect to all Exchangeable Shares held by it and its Affiliates for the
sole purpose of attending each meeting of holders of Exchangeable Shares in
order to be counted as part of the quorum for each such meeting. Parent further
covenants and agrees that it will not, and will cause its Affiliates not to,
exercise any voting rights which may be exercisable by holders of Exchangeable
Shares from time to time pursuant to the Share Provisions or pursuant to the
provisions of the Canada Business Corporations Act (or any successor or other
corporate statute by which ExchangeCo may in the future be governed) with
respect to any Exchangeable Shares held by it or by its Affiliates in respect of
any matter considered at any meeting of holders of Exchangeable Shares. 

2.11       Rule
10b-18 Purchases 

                            For
certainty, nothing contained in this Agreement, including without limitation the
obligations of Parent contained in Section 2.8 hereof, shall limit the ability
of Parent or ExchangeCo to make a “Rule 10b-18 Purchase” of Parent Common Stock
pursuant to Rule 10b-18 of the U.S. Securities Exchange Act of 1934, as amended,
or any successor provisions thereof. 

ARTICLE 3 
PARENT SUCCESSORS 

3.1       Certain
Requirements in Respect of Combination, etc. 

                         Parent
shall not consummate any transaction (whether by way of reconstruction,
reorganization, consolidation, merger, transfer, sale, lease or otherwise)
whereby all or substantially all of its undertaking, property and assets would
become the property of any other person or, in the case of a merger, of the
continuing corporation resulting therefrom unless, but may do so if: 

	 	(a) 	
      such other person or continuing corporation (the
      “Parent Successor”) by operation of law, becomes, without more,
      bound by the terms and provisions of this Agreement or, if not so bound,
      executes, prior to or contemporaneously with the consummation of such
      transaction, an agreement supplemental hereto and such other instruments
      (if any) as are reasonably necessary or advisable to evidence the
      assumption by the Parent Successor of liability for all moneys payable and
      property deliverable hereunder and the covenant of such Parent Successor
      to pay and deliver or cause to be delivered the same and its agreement to
      observe and perform all the covenants and obligations of Parent under this
      Agreement; and

	 	 	 
	 	(b) 	
      such transaction shall be upon such terms and conditions
      as substantially to preserve and not to impair in any material respect any
      of the rights, duties, powers and authorities of the other parties
      hereunder.

3.2       Vesting
of Powers in Successor 

                         Whenever
the conditions of Section 3.1 have been duly observed and performed, the
parties, if required by Section 3.1, shall execute and deliver a supplemental
agreement hereto and thereupon Parent Successor shall possess and from time to
time may exercise each and every right and power of Parent under this Agreement
in the name of Parent or otherwise and any act or proceeding by any provision of
this Agreement required to be done or performed by the Board of Directors of
Parent or any officers of Parent may be done and performed with like force and
effect by the directors or officers of such Parent Successor. 

3.3       Wholly-Owned
Subsidiaries 

                         Nothing
herein shall be construed as preventing the amalgamation or merger of any
wholly-owned direct or indirect subsidiary of Parent with or into Parent or the
winding-up, liquidation or dissolution of any wholly-owned subsidiary of Parent
provided that all of the assets of such subsidiary are transferred to Parent or
another 

M-8 

wholly-owned direct or indirect subsidiary of Parent and any
such transactions are expressly permitted by this Article 3. 

ARTICLE 4 
GENERAL 

4.1       Term

                         This
Agreement shall come into force and be effective as of the date hereof and shall
terminate and be of no further force and effect at such time as no Exchangeable
Shares (or securities or rights convertible into or exchangeable for or carrying
rights to acquire Exchangeable Shares) are held by any person or entity other
than Parent and any of its Affiliates. 

4.2       Changes
In Capital of Parent and ExchangeCo 

                         At
all times after the occurrence of any event contemplated pursuant to Sections
2.7 and 2.8 hereof or otherwise, as a result of which either Parent Common Stock
or the Exchangeable Shares or both are in any way changed, this Agreement shall
forthwith be amended and modified as necessary in order that it shall apply with
full force and effect, mutatis mutandis, to all new securities into which Parent
Common Stock or the Exchangeable Shares or both are so changed and the parties
hereto shall execute and deliver an agreement in writing giving effect to and
evidencing such necessary amendments and modifications. 

4.3       Severability

                         If
any provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity, legality or enforceability of the remainder of this Agreement
shall not in any way be affected or impaired thereby and this Agreement shall be
carried out as nearly as possible in accordance with its original terms and
conditions. 

4.4       Amendments,
Modifications 

                         This
Agreement may not be amended or modified except by an agreement in writing
executed by ExchangeCo and Parent and approved by the holders of the
Exchangeable Shares in accordance with Section 10.2 of the Share Provisions.

4.5      
Ministerial Amendments 

                         Notwithstanding
the provisions of Section 4.4, the parties to this Agreement may in writing at
any time and from time to time, without the approval of the holders of the
Exchangeable Shares, amend or modify this Agreement for the purposes of: 

	 	(a) 	
      adding to the covenants of any or all parties provided
      that the Board of Directors of each of ExchangeCo and Parent shall be of
      the good faith opinion that such additions will not be prejudicial to the
      rights or interests of the holders of the Exchangeable Shares;

	 	 	 
	 	(b) 	
      making such amendments or modifications not inconsistent
      with this Agreement as may be necessary or desirable with respect to
      matters or questions which, in the good faith opinion of the Board of
      Directors of each of ExchangeCo and Parent, it may be expedient to make,
      provided that each such Board of Directors shall be of the good faith
      opinion that such amendments or modifications will not be prejudicial to
      the rights or interests of the holders of the Exchangeable Shares;
    or

	 	 	 
	 	(c) 	
      making such changes or corrections which, on the advice
      of counsel to ExchangeCo and Parent, are required for the purpose of
      curing or correcting any ambiguity or defect or inconsistent provision or
      clerical omission or mistake or manifest error, provided that the Boards
      of Directors of each of ExchangeCo and Parent shall be of the good faith
      opinion that such changes or

M-9 

 corrections will not be prejudicial to the rights or interests
of the holders of the Exchangeable Shares. 

4.6       Meeting
to Consider Amendments 

                         ExchangeCo,
at the request of Parent, shall call a meeting or meetings of the holders of the
Exchangeable Shares for the purpose of considering any proposed amendment or
modification requiring approval pursuant to Section 4.4 hereof. Any such meeting
or meetings shall be called and held in accordance with the bylaws of
ExchangeCo, the Share Provisions and all applicable laws. 

4.7       Amendments
Only in Writing 

                         No
amendment to or modification or waiver of any of the provisions of this
Agreement otherwise permitted hereunder shall be effective unless made in
writing and signed by all of the parties hereto. 

4.8       Enurement

                         This
Agreement shall be binding upon and enure to the benefit of the parties hereto
and their respective successors and assigns. 

4.9      
Notices to Parties 

                         All
notices and other communications required or permitted to be delivered to a
party under this Agreement shall be in writing and shall be deemed to have been
properly delivered, given or received (a) upon receipt when delivered by hand or
(b) two business days after being sent by registered mail or by courier or
express delivery service or by facsimile, provided that in each case the notice
or communication is sent to the address or facsimile telephone number set forth
beneath the name of such party below: 

	 	(a) 	If to Exchangeco: 
	 	 	Suite #617 – 666 Burrard Street, 
	 	  	Vancouver, British Columbia, V6C 3P6 
	 	 	 
	 	  	Attention:             William
      Iny 
	 	  	Facsimile:              
      (604) 601-2070 
	 	 	 
	 	(b) 	If to Parent: 
	 	 	 
	 	 	Suite #617 – 666 Burrard Street, 
	 	  	Vancouver, British Columbia, V6C 3P6 
	 	 	 
	 	  	Attention:             Chris
      Craddock 
	 	  	Facsimile:              
      (604) 601-2070 

With a copy (which will not constitute
notice) to: 

Clark Wilson LLP 
Barristers &
Solicitors 
Suite 800 – 885 West Georgia Street 
Vancouver, British
Columbia, Canada 
V6C 3H1 

Attention:             Bernard
Pinsky

Telephone:           (604)
643-3153

Facsimile:             
(604) 687-6314 

M-10 

4.10      
Counterparts 

                         This
Agreement may be executed in counterparts, each of which shall be deemed an
original, and all of which taken together shall constitute one and the same
instrument. 

4.11       Jurisdiction

                         This
Agreement shall be construed and enforced in accordance with the laws of the
Province of British Columbia and the laws of Canada applicable therein. 

4.12       Fax
Delivery 

                         This
Agreement may be executed by delivery of executed signature pages by fax and
such fax execution will be effective for all purposes. 

4.13      
Attornment 

                         Parent
agrees that any action or proceeding arising out of or relating to this
Agreement may be instituted in the courts of British Columbia, waives any
objection which it may have now or hereafter to the venue of any such action or
proceeding, irrevocably submits to the jurisdiction of the said courts in any
such action or proceeding and hereby appoints ExchangeCo at its registered
office in the Province of British Columbia as attorney for service of process.

                         IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written. 

KEEWATIN WINDPOWER CORP. 

 

Per:        
____________________________________________
Name:    Chris
Craddock 
Title:      President 

 

KEEWATIN WINDPOWER INC. 

 

Per:        
____________________________________________
Name:    Chris
Craddock 
Title:      President 

SCHEDULE N 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Valuation  

 

FAIRNESS OPINION 

  Report to Board Version 

April 30, 2009 

Board of Directors

Keewatin Windpower Corporation 

  Suite 617-666 Burrard Street 

  Vancouver, B.C. 

  V6C 3P6 

Attn: Board of Directors 

Dear Sirs; 

Stirling Mercantile Corporation (“SMC”) understands that
  Keewatin Windpower Corporation (“Keewatin” or the “Company”) has offered to
  acquire all of the shares of Sky Harvest Windpower Corporation (“Sky Harvest”)
  by issuing 1.5 shares of Keewatin for every share of Sky Harvest (the
  “Acquisition”). 

SMC understands that Keewatin’s Board of Directors has retained
  SMC to provide its opinion as to the fairness of the Acquisition from a
  financial point of view, to Keewatin shareholders (the “Fairness Opinion”). SMC
  has not been retained to provide any advice to Keewatin’s Board of Directors
  regarding any other potential alternatives that might be available to Keewatin
  or to advise Keewatin’s Board of Directors or Keewatin whether to seek, evaluate
  or pursue any alternatives other than the Acquisition. 

Engagement 

Keewatin’s Board of Directors initially contacted SMC regarding
  a potential advisory assignment in May, 2008 and was formally engaged by the
  Board of Directors through an Engagement Agreement dated May 23, 2008. The terms
  of the Engagement Agreement provide that SMC is to be paid a fixed amount for
  the Fairness Opinion which is not contingent on the conclusion of the
  Acquisition. In addition Keewatin has agreed to pay certain of SMC’s legal and
  other out-of-pocket costs and has also agreed to indemnify SMC under certain
  circumstances.

Relationship of SMC with Keewatin 

Neither SMC nor any of its affiliates or officers is an
  insider, associate or affiliate, as those terms are defined in United States
  Securities Law, of Keewatin or Sky Harvest

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      B.C. V6C 3A6 
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SMC has not been engaged to provide any financial advisory
  services nor has it participated in any financing involving Keewatin or Sky
  Harvest and there are no understandings, agreements or commitments between SMC
  and Keewatin or Sky Harvest with respect to any future business dealings. SMC’s
  compensation under the Engagement Agreement does not depend in whole or in part
  on the conclusions reached in the Fairness Opinion or the successful outcome of
  the Acquisition. SMC may, in the future, in the ordinary course of business,
  perform financial advisory or investment banking services for Keewatin. 

Credentials of Stirling Mercantile
  Corporation 

SMC has been successfully providing corporate finance services
  such as capital raising, acquisition and divestiture mandates and financial
  advisory services since 1998. Its principals have a total of over sixty years
  experience in the public markets, private equity and venture capital markets,
  acquisition and purchase and sale mandates and banking services and have
  concluded transactions with a total value in the hundreds of millions of
  dollars. Specific officers of SMC have had both banking and investment banking
  experience in the independent power production industry during their careers. 

The Fairness Opinion expressed herein represents the opinions
  of SMC and the form and content herein have been approved for release by the
  officers of SMC. 

Scope of the Review 

In connection with our Fairness Opinion we have reviewed and
  relied upon or carried out, among other things, the following; 

	Interviews with the officers of Keewatin and Sky Harvest.
  
	The share closing prices, trading ranges and volumes for Keewatin.
  
	The unaudited financial statements of Keewatin and Sky Harvest for the
    years ending May 31, 2007 and May 31, 2008.
  
	The unaudited interim financial statements for the 6 months ending
    November 30, 2008.
  
	Discounted Cash Flow analysis of both Keewatin and Sky Harvest.
  
	Public information relating to the business, operations and financial
    performance of Keewatin.
  
	Public information relating to the share prices, trading multiples,
    discount rates and other transactions relating to comparable companies in the
    wind energy industry which were considered by us to be relevant.
  
	Public information relating to the wind energy industry generally which we
    considered to be relevant.
  
	Representations contained in certificates addressed to us, dated as of the
    date hereof, from senior officers of Keewatin and Sky Harvest as to the
    completeness and accuracy of the information upon which the Fairness Opinion
    is based.
  
	Such other corporate, industry and financial market information,
    investigations and analysis as SMC considered necessary or appropriate under
    the circumstances. 

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To the best of its knowledge, SMC has not been denied access by
  Keewatin or Sky Harvest to information requested of them by SMC. 

Prior Valuations 

Both Keewatin and Sky Harvest have not had any formal
  valuations as that term is defined in OSC 61-501 or similar US regulations. 

Assumptions and Limitations 

With the Board of Directors’ approval and as provided for in
  the Engagement Agreement, SMC has relied on the completeness, accuracy and fair
  presentation of all of the financial and other information, data, advice,
  opinions or representations obtained by it from public sources, senior
  management of Keewatin and Sky Harvest and their respective consultants, and
  advisors (collectively, the “Information”). The Fairness Opinion is conditional
  on such completeness, accuracy and fair presentation of such Information.
  Subject to the exercise of professional judgment and except as expressly
  described herein, we have not attempted to verify independently the
  completeness, accuracy or fair presentation of any of the Information. 

Senior Officers of Keewatin have represented to SMC, in a
  certificate delivered as of the date hereof, among other things, that; 

	 	i) 	the Information relating to Keewatin (the “Keewatin
      Information”) provided orally by, or in the presence of an officer or
      employee of Keewatin or in writing by Keewatin or any of its subsidiaries
      or their respective agents to SMC for the purpose of preparing the
      Fairness Opinion was, at the date the Keewatin Information was provided to
      SMC, and is complete, true and correct in all material respects, and did
      not and does not contain any untrue statement of a material fact in
      respect of Keewatin, its subsidiaries or the Acquisition or necessary to
      make the Keewatin Information or any statement contained therein not
      misleading in light of the circumstances under which the Keewatin
      Information was provided or any statement was made, and,

	 	 	 
	 	ii) 	since the dates on which Keewatin Information was
      provided to SMC, except as disclosed in writing to SMC, there has been no
      material change, financial or otherwise in the financial condition,
      assets, liabilities (contingent or otherwise), business, operations or
      prospects of Keewatin or any of its subsidiaries and no material change
      has occurred in Keewatin or any part thereof which would have or which
      would reasonably be expected to have a material effect on the Fairness
      Opinion.

The Fairness Opinion is rendered on the basis of securities
  markets, economic, financial and general business conditions prevailing as at
  the date hereof and the condition and prospects, financial and otherwise, of
  Keewatin and Sky Harvest as they have been represented to SMC in discussions
  with management of Keewatin as the case may be. In its analyses and in preparing
  the Fairness Opinion, SMC made numerous assumptions with respect to industry
  performance, general business and economic conditions and other matters which
  are beyond the control of SMC or any other party involved in the Acquisition. 

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The Fairness Opinion has been provided for the use of the Board
  of Directors and may not be used by any other person or relied upon by any other
  person other than the Board of Directors without the express prior written
  consent of SMC. The Fairness Opinion is given as of the date hereof and SMC
  disclaims any undertaking or obligation to advise any person of any change in
  any fact or matter affecting the Fairness Opinion which may come or be brought
  to SMC’s attention after the date hereof. Without limiting the foregoing, in the
  event that there is any material change to any fact or matter affecting the
  Fairness Opinion after the date hereof, SMC reserves the right to change, modify
  or withdraw the Fairness Opinion. 

SMC believes that its analyses must be considered as a whole
  and that selecting portions of the analyses or the factors considered by it,
  without considering all factors and analyses together, could create a misleading
  view of the process underlying the Fairness Opinion. The preparation of a
  fairness opinion is a complex process and is not necessarily susceptible to
  partial analysis or summary description. Any attempt to do so could lead to
  undue emphasis on any particular factor or analysis. The Fairness Opinion is not
  to be construed as a recommendation to any Keewatin shareholder as to whether to
  vote in favour of the Acquisition. 

Background of the
  Acquisition

Keewatin is a public (OTC Bulletin Board. Symbol, KWPW.OB)
  company with plans to develop a wind power generating facility on land located
  in South Western Saskatchewan. To date Keewatin has conducted wind resource
  evaluation studies on property in the area and has entered into a Letter of
  Intent with Saskatchewan Food and Agriculture with respect to leasing land in
  order to erect a wind power generating operation. On March 26, 2007, Keewatin
  entered into a Letter of Intent to acquire all of the shares of Sky Harvest by
  issuing 1.5 shares of Keewatin for every share of Sky Harvest. Sky Harvest is a
  Canadian private corporation also engaged in the development of wind power
  resources, and has directors and shareholders in common with Keewatin. Therefore
  the proposed share exchange may be considered a related party transaction. While
  not required by regulation, Keewatin has decided to seek a fairness opinion
  regarding the proposed transaction from an independent valuator 

Valuation Methodology 

In determining whether the Acquisition is fair from a financial
  point of view to the Keewatin shareholders, SMC believes that one requirement
  must be satisfied, vis; 

Is the difference in the appraised
  equity values of Keewatin and Sky Harvest as reflected by the proposed share
  exchange ratio of 1.5:1, reasonable and supportable by independent analysis? 

In order to analyze the question, SMC considered the following; 

1) The state of each companies resource
  evaluation and preliminary feasibility studies. 

2) Discounted Cash Flow Analysis based
  on assumptions of future revenues, costs, capital expenditures and debt
  repayments for Keewatin and Sky Harvest.

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      B.C. V6C 3A6 
	www.stirlingmercantile.com 

SMC is of the opinion that a value based on historical trading
  prices of Keewatin is misleading since the shares have had insignificant trading
  volumes in the past three years.

With specific regard to the DCF valuation readers are cautioned
  that, since both Keewatin and Sky Harvest are pre-feasibility projects, much of
  the information necessary to make a reliable individual DCF valuation possible
  is not yet available. On the other hand, because the two projects are close to
  each other geographically and enjoy very similar wind characteristics,
  sufficient information is available so that, in combination with reasonable
  assumptions regarding current and future power prices, operating costs, capital
  costs and debt structures a relative valuation analysis is
  possible. In effect, the major difference between the two projects is the
  difference in valuation resulting from the additional time to completion of the
  Keewatin project due to more advanced wind and power generating studies for Sky
  Harvest. 

Description of Keewatin 

Keewatin Windpower Corp. is a development stage wind energy
  electrical generation company. It was incorporated in February, 2005 and in
  August 2005 the Company entered into an agreement with certain land owners
  owning 640 acres located in south-western Saskatchewan situated near the town of
  Beechy for the purposes of gathering wind and other meteorological data. The
  company continues to gather this data and will have a wind power generation
  analysis and preliminary engineering study done following the completion of the
  data gathering process to determine the viability of this potential
  resource.

Keewatin’s assets consist of; 

1) Cash and cash equivalents of $1,044,294 as at November 30,
  2008 

  2) A $100,000 note receivable from Sky Harvest Windpower Corp. 

  3)
  Property and equipment, net of $ 11,722 as at November 30, 2008 

Keewatin’s liabilities consist of accounts and management fees
  payable and accrued liabilities totaling $5,948 at November 30, 2008.

Description of Sky Harvest 

Sky Harvest Windpower Corp. ("Sky Harvest") is a private
  Canadian company incorporated under the federal laws of Canada which holds the
  rights to construct a wind power facility on approximately 8,500 acres of land
  located in south-western Saskatchewan. Sky Harvest has completed a wind resource
  assessment on the property that demonstrates that the potential wind resource
  greatly exceeds the minimum capacity factor necessary to justify the planning
  and construction of a 150 megawatt wind power project. The assessment was
  completed by Phoenix Engineering Inc. of Calgary, Alberta. Current directors of
  Keewatin own 53% of Sky Harvest’s issued and outstanding shares. 

Sky Harvest’s assets consist of; 

P. 5 of 7 

	 
	450 – 400 Burrard Street, Vancouver,
      B.C. V6C 3A6 
	www.stirlingmercantile.com 

	1) 	Cash and cash equivalents of $61,463 as at November 30,
      2008

	2) 	Amount receivable of $100 as at November 30,
      2008

	3) 	Prepaid expenses of $25,963 as at November 30,
      2008

	4) 	Property and equipment, net of $65,972 as at November 30,
      2008

Sky Harvest’s liabilities consist of accounts payable, accrued
  liabilities and due to related party totaling $16,040 at November 30, 2008 plus
  a loan payable to Keewatin of $124,510 maturing September 22, 2009. 

SMC notes the cash resources of Keewatin as compared to Sky
  Harvest, however Sky Harvest has also commissioned, paid for and received a
  detailed viability and preliminary engineering report which Keewatin has yet to
  do. Secondly and as considered in greater detail in the section below, Keewatin
  is approximately 2 years behind Sky Harvest and, to compare the two as if at the
  same stage of development would require us to assume that Keewatin had i)
  completed the meteorological studies, ii) commissioned and paid for a similarly
  detailed wind resource and project viability study, and incurred approximately 2
  years of operating costs (at approximately $320,000 per year) thus considerably
  depleting the Keewatin cash resources in the process. We do not therefore think
  that Keewatin’s superior cash position is of significant note in the analysis of
  their relative value. 

Relative Discounted Cash Flow Analysis: 

SMC prepared a discounted cash flow for both Sky Harvest and
  for Keewatin. As noted above SMC used the same assumptions for each project,
  specifically the power generated, the inflation rate, operating costs, and
  capital structure (the amount of debt vs the amount of equity required).
  However, because the Sky Harvest project is about 2 years more advanced than the
  Keewatin project, the additional pre-construction expenses (for 2 years) and
  higher capital costs offset by higher price per megawatt hour received are
  factors to be considered in the analysis. 

SMC then applied a range of discount rates to both projects
  cash flows and determined the ratios of the project values of the two. The
  discount rates used were weighted average costs of capital for projects of this
  nature as determined by SMC. 

The ratios derived are as follows; 

  	Ratio of Project Values 	 	 	 
	discount rate 	8.75% 	8.50% 	8.25% 
	Sky Harvest 	 	 	 
	vs. Keewatin 	1.714 	1.495 	1.386 

Thus for clarity, using a weighted average cost of capital for
  both Sky Harvest and Keewatin of 8.5%, the net present value of Sky Harvest is
  1.495 times that of Keewatin. SMC believes that a weighted average cost of
  capital of 8.5% is most applicable given the customary 85% debt level (supported
  by a calculated Debt Service Test of 1.25 times) and current project debt rates
  of 7% and equity rates of 17.5% for projects of this nature. 

P. 6 of 7 

	 
	450 – 400 Burrard Street, Vancouver,
      B.C. V6C 3A6 
	www.stirlingmercantile.com 

Fairness Opinion 

SMC understands that Keewatin has offered to acquire all of the
  shares of Sky Harvest by issuing 1.5 shares of Keewatin for every share of Sky
  Harvest. This price is very close to the project NPV ratio of 1.495 times as
  indicated above. In addition, Sky Harvest’s completed and favorable wind
  resource and project engineering study places it in a significantly advanced
  position to propose a development to power purchasers and financial sources
  compared to Keewatin. This advantage allows Sky Harvest more strategic options
  than Keewatin at the present time. 

Considering the above, therefore, SMC is of the opinion that
  the Acquisition is fair, to the Minority Shareholders of Keewatin, from a
  financial point of view. 

Yours truly, 

 

Stirling Mercantile Corporation
P. 7 of 7 

	 
	450 – 400 Burrard Street, Vancouver,
      B.C. V6C 3A6 
	www.stirlingmercantile.com 

SCHEDULE O 

TO THE SHARE EXCHANGE AGREEMENT DATED FOR REFERENCE MAY 11,
2009 AMONG KWC, 
EXCHANGECO, SKY HARVEST AND THE SELLING SHAREHOLDERS

Exchangeable Share Provisions 

PROVISIONS ATTACHING TO THE 
CLASS D EXCHANGEABLE SHARES
OF 
KEEWATIN WINDPOWER INC. 

           The
Class D Exchangeable Shares of Keewatin Windpower Inc. (the
“Corporation”) shall have the following rights, privileges, restrictions and
conditions: 

ARTICLE 1 
INTERPRETATION 

1.1      For the purposes of these
share provisions: 

	 	(a) 	
      “Affiliate” of any Person means any other Person
      directly or indirectly controlling, controlled by, or under common control
      with, that Person. For the purposes of this definition, “control”
      (including, with correlative meanings, the terms “controlled by” and
      “under common control with”), as applied to any Person, means the
      possession by another Person, directly or indirectly, of the power to
      direct or cause the direction of the management and policies of that first
      mentioned Person, whether through the ownership of voting securities, by
      contract or otherwise.

	 	 	 
	 	(b) 	
      “Board of Directors” means the board of directors
      of the Corporation.

	 	 	 
	 	(c) 	
      “Business Day” means any day on which commercial
      banks are generally open for business in Vancouver, British Columbia,
      other than a Saturday, a Sunday or a day observed as a holiday in
      Vancouver, British Columbia under the laws of the Province of British
      Columbia or the federal laws of Canada.

	 	 	 
	 	(d) 	
      “Canadian Dollar Equivalent” means, in respect of
      an amount expressed in a currency other than Canadian dollars (the
      “Foreign Currency Amount”) at any date, the product obtained by
      multiplying: (a) the Foreign Currency Amount, by (b) the noon spot
      exchange rate on such date for such foreign currency expressed in Canadian
      dollars as reported by the Bank of Canada or, in the event such spot
      exchange rate is not available, such spot exchange rate on such date for
      such foreign currency expressed in Canadian dollars as may be deemed by
      the Board of Directors to be appropriate for such purpose.

	 	 	 
	 	(e) 	
      “Common Share” means a share in the class of
      common shares in the capital of the Corporation.

	 	 	 
	 	(f) 	
      “Corporation” means Keewatin Windpower Inc., a
      corporation governed by the SBCA and being a wholly-owned subsidiary of
      Parent.

	 	 	 
	 	(g) 	
      “Current Market Price” means, in respect of a
      Parent Common Stock on any date, the Canadian Dollar Equivalent of the
      average of the closing prices of Parent Common Stock during a period of 20
      consecutive trading days ending not more than three trading days before
      such date on the Over-the-Counter Bulleting Board (“OTC”), or, if the
      Parent Common Stock are not then quoted on OTC, on such other stock
      exchange or automated quotation system on which the Parent Common Stock
      are listed or quoted, as the case may be, as may be selected by the Board
      of Directors for such purpose; provided, however, that if in the opinion
      of the Board of Directors the public distribution or trading activity of
      Parent Common Stock during such period does not
create

O-2 

	 		
      a market which reflects the fair market value of a Parent
      Common Stock, then the Current Market Price of a Parent Common Stock shall
      be determined by the Board of Directors, in good faith and in its sole
      discretion, and provided further that any such selection, opinion or
      determination by the Board of Directors shall be conclusive and
      binding.

	 	 	 
	 	(h) 	
      “Dividend Amount” has the meaning ascribed to that
      term in Section 6.3 of these share provisions.

	 	 	 
	 	(i) 	
      “Entity” means any corporation (including any
      non-profit corporation), general partnership, limited partnership, limited
      liability partnership, joint venture, estate, trust, company (including
      any company limited by shares, limited liability company or joint stock
      company), firm, society or other enterprise, association, organization or
      entity.

	 	 	 
	 	(j) 	
      “Exchangeable Share” means a share in the class of
      non-voting exchangeable shares in the capital of the Corporation having
      the rights, privileges, restrictions and conditions set forth
    herein.

	 	 	 
	 	(k) 	
      “Exchangeable Share Support Agreement” means the
      Exchangeable Share Support Agreement among Parent and the Corporation, to
      be entered into in connection with the Share Exchange Agreement.

	 	 	 
	 	(l) 	
      “Exchangeable Share Voting Event” means any matter
      in respect of which holders of Exchangeable Shares are entitled to vote as
      shareholders of the Corporation, other than an Exempt Exchangeable Share
      Voting Event, and, for greater certainty, excluding any matter in respect
      of which holders of Exchangeable Shares are entitled to vote (or instruct
      the Trustee to vote) in their capacity as Beneficiaries under (and as that
      term is defined in) the Voting and Exchange Trust Agreement.

	 	 	 
	 	(m) 	
      “Exempt Exchangeable Share Voting Event” means any
      matter in respect of which holders of Exchangeable Shares are entitled to
      vote as shareholders of the Corporation in order to approve or disapprove,
      as applicable, any change to, or in the rights of the holders of, the
      Exchangeable Shares, where the approval or disapproval, as applicable, of
      such change would be required to maintain the equivalence of the
      Exchangeable Shares and the Parent Common Stock.

	 	 	 
	 	(n) 	
      “Governmental Body” means any: (a) nation, state,
      commonwealth, province, territory, county, municipality, district or other
      jurisdiction of any nature; (b) federal, state, provincial, local,
      municipal, foreign or other government; or (c) governmental or
      quasi-governmental authority of any nature (including any governmental
      division, department, agency, commission, instrumentality, official,
      ministry, fund, foundation, centre, organization, unit, body or Entity and
      any court or other tribunal).

	 	 	 
	 	(o) 	
      “Liquidation Amount” has the meaning ascribed to
      that term in Section 5.1 of these share provisions.

	 	 	 
	 	(p) 	
      “Liquidation Call Right” has the meaning ascribed
      to that term in the Share Exchange Agreement.

	 	 	 
	 	(q) 	
      “Liquidation Date” has the meaning ascribed to
      that term in Section 5.1 of these share provisions.

	 	 	 
	 	(r) 	
      “Parent” means Keewatin Windpower Corp., a
      corporation existing under the laws of the State of Nevada, and includes
      any successor thereto.

	 	 	 
	 	(s) 	
      “Parent Call Notice” has the meaning ascribed to
      that term in Section 6.3 of these share
provisions.

O-3 

	 	(t) 	
      “Parent Common Stock” means a share of common
      stock, par value U.S. $0.001 per share, in the capital of Parent, and any
      other security into which such share may be changed.

	 	 	 	 
	 	(u) 	
      “Parent Control Transaction” means (i) any merger,
      amalgamation, reorganization or other similar event involving Parent, (ii)
      any tender offer for Parent, (iii) any material sale of assets or shares
      or rights or interests therein or thereto by Parent, or (iv) any similar
      transactions involving Parent, or (v) any proposal to do any of the
      foregoing.

	 	 	 	 
	 	(v) 	
      “Parent Dividend Declaration Date” means the date
      on which the board of directors of Parent declares any dividend on the
      Parent Common Stock.

	 	 	 	 
	 	(w) 	
      “Person” means any individual, Entity or
      Governmental Body.

	 	 	 	 
	 	(x) 	
      “Purchase Price” has the meaning ascribed to that
      term in Section 6.3 of these share provisions.

	 	 	 	 
	 	(y) 	
      “Redemption Call Purchase Price” has the meaning
      ascribed to that term in the Share Exchange Agreement.

	 	 	 	 
	 	(z) 	
      “Redemption Call Right” has the meaning ascribed
      to that term in the Share Exchange Agreement.

	 	 	 	 
	 	(aa) 	
      “Redemption Date” means the date, if any,
      established by the Board of Directors for the redemption by the
      Corporation of all but not less than all of the outstanding Exchangeable
      Shares pursuant to Article 7 of these share provisions, which date shall
      be no earlier than December 31, 2013 unless:

	 	 	 	 
	 		(i) 	
      there are fewer than 10% of the Exchangeable Shares
      originally issued outstanding (other than Exchangeable Shares held by
      Parent and its Affiliates, and as such number of shares may be adjusted as
      deemed appropriate by the Board of Directors to give effect to any
      subdivision or consolidation of or stock dividend on the Exchangeable
      Shares, any issue or distribution of rights to acquire Exchangeable Shares
      or securities exercisable or exchangeable for or convertible into
      Exchangeable Shares, any issue or distribution of other securities or
      rights or evidences of indebtedness or assets, or any other capital
      reorganization or other transaction affecting the Exchangeable Shares), in
      which case the Board of Directors may accelerate such redemption date to
      such date prior to December 31, 2013 as they may determine, upon at least
      60 days’ prior written notice to the registered holders of the
      Exchangeable Shares;

	 	 	 	 
	 		(ii) 	
      a Parent Control Transaction occurs, in which case,
      provided that the Board of Directors determines, in good faith and in its
      sole discretion, that it is not reasonably practicable to substantially
      replicate or modify the terms and conditions of the Exchangeable Shares in
      connection with such Parent Control Transaction or that the redemption of
      all but not less than all of the outstanding Exchangeable Shares is
      necessary to enable the completion of such Parent Control Transaction in
      accordance with its terms, the Board of Directors may accelerate such
      redemption date to such date prior to December 31, 2013 as it may
      determine, upon such number of days’ prior written notice to the
      registered holders of the Exchangeable Shares and to Parent as the Board
      of Directors may determine to be reasonably practicable in such
      circumstances;

	 	 	 	 
	 		(iii) 	
      an Exchangeable Share Voting Event is proposed, in which
      case, provided that the Board of Directors has determined, in good faith
      and in its sole discretion, that it is not reasonably practicable to
      accomplish the business purpose intended by the Exchangeable Share Voting
      Event, which business purpose must be bona fide and not for the primary
      purpose of causing the occurrence of a Redemption Date, in any other
      commercially reasonable manner that does not result in an Exchangeable
      Share Voting Event, the

O-4 

	 		
      Redemption Date shall be the Business Day prior to the
      record date for any meeting or vote of the holders of the Exchangeable
      Shares to consider the Exchangeable Share Voting Event and the Board of
      Directors shall give such number of days’ prior written notice of such
      redemption to the registered holders of the Exchangeable Shares as the
      Board of Directors may determine to be reasonably practicable in such
      circumstances; or

	 	 	 
	 	(iv) 	
      an Exempt Exchangeable Share Voting Event is proposed and
      the holders of the Exchangeable Shares fail to take the necessary action
      at a meeting or other vote of holders of Exchangeable Shares, to approve
      or disapprove, as applicable, the Exempt Exchangeable Share Voting Event,
      in which case the Redemption Date shall be the Business Day following the
      day on which the holders of the Exchangeable Shares failed to take such
      action and the Board of Directors shall give such number of days’ prior
      written notice of such redemption to the registered holders of the
      Exchangeable Shares as the Board of Directors may determine to be
      reasonably practicable in such circumstances,

	 		
      provided, however, that the accidental failure or
      omission to give any notice of redemption under clauses (i), (ii), (iii)
      or (iv) above to less than 10% of such holders of Exchangeable Shares
      shall not affect the validity of any such redemption.

	 	 	 
	 	(bb) 	
      “Redemption Price” has the meaning ascribed to
      that term in Section 7.1 of these share provisions.

	 	 	 
	 	(cc) 	
      “Retracted Shares” has the meaning ascribed to
      that term in Section 6.1(a) of these share provisions.

	 	 	 
	 	(dd) 	
      “Retraction Call Right” has the meaning ascribed
      to that term in Section 6.1(c) of these share provisions.

	 	 	 
	 	(ee) 	
      “Retraction Date” has the meaning ascribed to that
      term in Section 6.1(b) of these share provisions.

	 	 	 
	 	(ff) 	
      “Retraction Price” has the meaning ascribed to
      that term in Section 6.1 of these share provisions.

	 	 	 
	 	(gg) 	
      “Retraction Request” has the meaning ascribed to
      that term in Section 6.1 of these share provisions.

	 	 	 
	 	(hh) 	
      “SBCA” means the Business Corporations Act
      (Saskatchewan) R.S.S. 1978.

	 	 	 
	 	(ii) 	
      “Share Exchange Agreement” means the share
      exchange agreement dated May 11, 2009 among Parent, the Corporation, Sky
      Harvest Windpower Corp. and all of the shareholders of Sky Harvest
      Windpower Corp.

	 	 	 
	 	(jj) 	
      “Trustee” means Valiant Trust Company or
      such other trust company or other Entity chosen as trustee under the
      Voting and Exchange Trust Agreement, and any successor trustee appointed
      under the Voting and Exchange Trust Agreement.

	 	 	 
	 	(kk) 	
      “Voting and Exchange Trust Agreement” means the
      Voting and Exchange Trust Agreement among Parent, the Corporation and the
      Trustee, to be entered into in connection with the Share Exchange
      Agreement.

ARTICLE 2 
RANKING OF EXCHANGEABLE SHARES 

2.1      Subject to Section 4.1
hereof, the Exchangeable Shares shall be entitled to a preference over the
Common Shares and any other shares ranking junior to the Exchangeable Shares
with respect to the payment of dividends 

O-5 

and the distribution of assets in the event of the liquidation,
dissolution or winding-up of the Corporation, whether voluntary or involuntary,
or any other distribution of the assets of the Corporation, among its
shareholders for the purpose of winding up its affairs. 

ARTICLE 3 
DIVIDENDS 

3.1      Subject to Section 3.2
hereof, a holder of an Exchangeable Share shall be entitled to receive and the
Board of Directors shall, subject to applicable law, on each Parent Dividend
Declaration Date, declare a dividend on each Exchangeable Share: 

	 	(a) 	
      in the case of a cash dividend declared on the Parent
      Common Stock, in an amount in cash for each Exchangeable Share in U.S.
      dollars, or the Canadian Dollar Equivalent thereof on the Parent Dividend
      Declaration Date, in each case, equal to the cash dividend declared on
      each Parent Common Stock;

	 	 	 
	 	(b) 	
      in the case of a stock dividend declared on the Parent
      Common Stock to be paid in Parent Common Stock, in such number of
      Exchangeable Shares for each Exchangeable Share as is equal to the number
      of Parent Common Stock to be paid on each Parent Common Stock;
or

	 	 	 
	 	(c) 	
      in the case of a dividend declared on the Parent Common
      Stock in property other than cash or Parent Common Stock, in such type and
      amount of property for each Exchangeable Share as is the same as or
      economically equivalent to (to be determined by the Board of Directors as
      contemplated by Section 3.6 hereof) the type and amount of property
      declared as a dividend on each Parent Common
Stock.

Such dividends shall be paid out of money, assets or property
of the Corporation properly applicable to the payment of dividends, or out of
authorized but unissued shares of the Corporation, as applicable. 

3.2      In the case of a stock
dividend declared on the Parent Common Stock to be paid in Parent Common Stock,
in lieu of declaring the stock dividend contemplated by Section 3.1(b) on the
Exchangeable Shares, the Board of Directors may, in its discretion and subject
to applicable law, subdivide, redivide or change (the “subdivision”) each issued
and unissued Exchangeable Share on the basis that each Exchangeable Share before
the subdivision becomes a number of Exchangeable Shares as is equal to the sum
of (i) a Parent Common Stock and (ii) the number of Parent Common Stock to be
paid as a stock dividend on each Parent Common Stock. In such instance, and
notwithstanding any other provision hereof, such subdivision shall become
effective on the effective date specified in Section 3.4 hereof without any
further act or formality on the part of the Board of Directors or of the holders
of Exchangeable Shares. For greater certainty, no approval of the holders of
Exchangeable Shares to an amendment to the articles of the Corporation shall be
required to give effect to such subdivision. 

3.3      Cheques of the Corporation
payable at par at any branch of the bankers of the Corporation shall be issued
in respect of any cash dividends contemplated by Section 3.1(a) hereof and the
sending of such a cheque to each holder of an Exchangeable Share shall satisfy
the cash dividend represented thereby unless the cheque is not paid on
presentation. Subject to applicable law, certificates registered in the name of
the registered holder of Exchangeable Shares shall be issued or transferred in
respect of any stock dividends contemplated by Section 3.1(b) hereof or the
subdivision of Exchangeable Shares contemplated by Section 3.2 hereof and the
sending of such a certificate to each holder of an Exchangeable Share shall
satisfy the stock dividend represented thereby. Such other type and amount of
property in respect of any dividends contemplated by Section 3.1(c) hereof shall
be issued, distributed or transferred by the Corporation in such manner as it
shall determine and the issuance, distribution or transfer thereof by the
Corporation to each holder of an Exchangeable Share shall satisfy the dividend
represented thereby. No holder of an Exchangeable Share shall be entitled to
recover by action or other legal process against the Corporation any dividend
that is represented by a cheque that has not been duly presented to the
Corporation’s bankers for payment or that otherwise remains unclaimed for a
period of six years from the date on which such dividend was payable. 

O-6 

3.4      The record date for the
determination of the holders of Exchangeable Shares entitled to receive payment
of, and the payment date for, any dividend declared on the Exchangeable Shares
under Section 3.1 hereof shall be the same dates as the record date and payment
date, respectively, for the corresponding dividend declared on the Parent Common
Stock. The record date for the determination of the holder of Exchangeable
Shares entitled to receive Exchangeable Shares in connection with any
subdivision of Exchangeable Shares under Section 3.2 hereof and the effective
date of such subdivision shall be the same dates as the record date and payment
date, respectively, for the corresponding stock dividend declared on Parent
Common Stock. 

3.5      If on any payment date for
any dividends declared on the Exchangeable Shares under Section 3.1 hereof the
dividends are not paid in full on all of the Exchangeable Shares then
outstanding, any such dividends that remain unpaid shall be paid on a subsequent
date or dates determined by the Board of Directors on which the Corporation
shall have sufficient moneys, assets or property properly applicable to the
payment of such dividends. 

3.6      The Board of Directors shall
determine, in good faith and in its sole discretion, economic equivalence for
the purposes of Sections 3.1 and 3.2 hereof, and each such determination shall
be conclusive and binding on the Corporation and its shareholders. In making
each such determination, the following factors shall, without excluding other
factors determined by the Board of Directors to be relevant, be considered by
the Board of Directors: 

	 	(a) 	
      in the case of any stock dividend or other distribution
      payable in Parent Common Stock, the number of such shares issued in
      proportion to the number of Parent Common Stock previously
    outstanding;

	 	 	 
	 	(b) 	
      in the case of the issuance or distribution of any
      rights, options or warrants to subscribe for or purchase Parent Common
      Stock (or securities exercisable or exchangeable for or convertible into
      or carrying rights to acquire Parent Common Stock), the relationship
      between the exercise price of each such right, option or warrant and the
      current market value (as determined by the Board of Directors in the
      manner above contemplated) of a Parent Common Stock;

	 	 	 
	 	(c) 	
      in the case of the issuance or distribution of any other
      form of property (including without limitation any shares or securities of
      Parent of any class other than Parent Common Stock, any rights, options or
      warrants other than those referred to in Section 3.6(b) above, any
      evidences of indebtedness of Parent or any assets of Parent), the
      relationship between the fair market value (as determined by the Board of
      Directors in the manner above contemplated) of such property to be issued
      or distributed with respect to each outstanding Parent Common Stock and
      the current market value (as determined by the Board of Directors in the
      manner above contemplated) of a Parent Common Stock; and

	 	 	 
	 	(d) 	
      in all such cases, the general taxation consequences of
      the relevant event to holders of Exchangeable Shares to the extent that
      such consequences may differ from the taxation consequences to holders of
      Parent Common Stock as a result of differences between taxation laws of
      Canada and the United States (except for any differing consequences
      arising as a result of differing marginal taxation rates and without
      regard to the individual circumstances of holders of Exchangeable
      Shares).

For purposes of the foregoing determinations, the current
market value of any security listed and traded or quoted on a securities
exchange shall be the weighted average of the daily trading prices of such
security during a period of not less than 20 consecutive trading days ending not
more than three trading days before the date of determination on the principal
securities exchange on which such securities are listed and traded or quoted;
provided, however, that if in the opinion of the Board of Directors the public
distribution or trading activity of such securities during such period does not
create a market which reflects the fair market value of such securities, then
the current market value thereof shall be determined by the Board of Directors,
in good faith and in its sole discretion, and provided further that any such
determination by the Board of Directors shall be conclusive and binding on the
Corporation and its shareholders. 

O-7 

ARTICLE 4 
CERTAIN RESTRICTIONS 

4.1      So long as any of the
Exchangeable Shares are outstanding, the Corporation shall not at any time
without, but may at any time with, the approval of the holders of the
Exchangeable Shares given as specified in Section 9.2 of these share provisions:

	 	(a) 	
      pay any dividends on the Common Shares or any other
      shares ranking junior to the Exchangeable Shares, other than stock
      dividends payable in Common Shares or any such other shares ranking junior
      to the Exchangeable Shares, as the case may be;

	 	 	 
	 	(b) 	
      redeem or purchase or make any capital distribution in
      respect of Common Shares or any other shares ranking junior to the
      Exchangeable Shares;

	 	 	 
	 	(c) 	
      redeem or purchase any other shares of the Corporation
      ranking equally with the Exchangeable Shares with respect to the payment
      of dividends or on any liquidation distribution; or

	 	 	 
	 	(d) 	
      issue any Exchangeable Shares or any other shares of the
      Corporation ranking equally with, or superior to, the Exchangeable Shares
      other than by way of stock dividends to the holders of such Exchangeable
      Shares.

The restrictions in Sections 4.1(a), 4.1(b), 4.1(c) and 4.1(d)
above shall not apply if all dividends on the outstanding Exchangeable Shares
corresponding to dividends declared and paid to date on the Parent Common Stock
shall have been declared and paid on the Exchangeable Shares. 

ARTICLE 5 
DISTRIBUTION ON LIQUIDATION 

5.1      In the event of the
liquidation, dissolution or winding-up of the Corporation or any other
distribution of the assets of the Corporation among its shareholders for the
purpose of winding up its affairs, subject to the exercise by Parent of the
Liquidation Call Right, a holder of Exchangeable Shares shall be entitled,
subject to applicable law, to receive from the assets of the Corporation in
respect of each Exchangeable Share held by such holder on the effective date
(the “Liquidation Date”) of such liquidation, dissolution or winding-up,
before any distribution of any part of the assets of the Corporation among the
holders of the Common Shares or any other shares ranking junior to the
Exchangeable Shares, an amount per share equal to the Current Market Price of a
Parent Common Stock on the last Business Day prior to the Liquidation Date (the
“Liquidation Amount”), which shall be satisfied in full by the
Corporation causing to be delivered to such holder one share of Parent Common
Stock, together with all declared and unpaid dividends on each such Exchangeable
Share held by such holder on any dividend record date which occurred prior to
the Liquidation Date. 

5.2      On or promptly after the
Liquidation Date, and subject to the exercise by Parent of the Liquidation Call
Right, the Corporation shall cause to be delivered to the holders of the
Exchangeable Shares the Liquidation Amount for each such Exchangeable Share upon
presentation and surrender of the certificates representing such Exchangeable
Shares, together with such other documents and instruments as are required to
effect a transfer of Exchangeable Shares under the SBCA and the
by-laws of the Corporation and such additional documents and instruments as the
Parent or the Corporation may reasonably require, at the registered office of
the Corporation by notice to the holders of the Exchangeable Shares. Payment of
the total Liquidation Amount for such Exchangeable Shares shall be made by
delivery to each holder, at the address of the holder recorded in the securities
register of the Corporation for the Exchangeable Shares or by holding for
pick-up by the holder at the registered office of the Corporation by notice to
the holders of Exchangeable Shares, on behalf of the Corporation of certificates
representing Parent Common Stock (which shares shall be duly issued as fully
paid and non-assessable and shall be free and clear of any lien, claim or
encumbrance) and a cheque of the Corporation payable at par at any branch of the
bankers of the Corporation in respect of the remaining portion, if any, of the
total Liquidation Amount (in each case less any amounts withheld on account of
tax required to be deducted and withheld therefrom). On and after the
Liquidation Date, the holders of the Exchangeable Shares shall cease to be
holders of such Exchangeable Shares 

O-8 

and shall not be entitled to exercise any of the rights of
holders in respect thereof, other than the right to receive their proportionate
part of the total Liquidation Amount, unless payment of the total Liquidation
Amount for such Exchangeable Shares shall not be made upon presentation and
surrender of share certificates in accordance with the foregoing provisions, in
which case the rights of the holders shall remain unaffected until the total
Liquidation Amount has been paid in the manner hereinbefore provided. The
Corporation shall have the right at any time after the Liquidation Date to
deposit or cause to be deposited the total Liquidation Amount in respect of the
Exchangeable Shares represented by certificates that have not at the Liquidation
Date been surrendered by the holders thereof in a custodial account with any
chartered bank or trust company in Canada. Upon such deposit being made, the
rights of the holders of Exchangeable Shares after such deposit shall be limited
to receiving their proportionate part of the total Liquidation Amount (in each
case less any amounts withheld on account of tax required to be deducted and
withheld therefrom) for such Exchangeable Shares so deposited, against
presentation and surrender of the said certificates held by them, respectively,
in accordance with the foregoing provisions. Upon such payment or deposit of the
total Liquidation Amount, the holders of the Exchangeable Shares shall
thereafter be considered and deemed for all purposes to be holders of the Parent
Common Stock delivered to them or the custodian on their behalf. 

5.3      After the Corporation has
satisfied its obligations to pay the holders of the Exchangeable Shares the
Liquidation Amount per Exchangeable Share pursuant to Section 5.1 of these share
provisions, such holders shall not be entitled to share in any further
distribution of the assets of the Corporation. 

ARTICLE 6 
RETRACTION OF EXCHANGEABLE SHARES BY
HOLDER 

6.1      A holder of Exchangeable
Shares shall be entitled at any time, subject to the exercise by Parent of the
Retraction Call Right and otherwise upon compliance with the provisions of this
Article 6, to require the Corporation to redeem any or all of the Exchangeable
Shares registered in the name of such holder for an amount per share equal to
the Current Market Price of a Parent Common Stock on the last Business Day prior
to the Retraction Date (the “Retraction Price”), which shall be satisfied
in full by the Corporation causing to be delivered to such holder one share of
Parent Common Stock for each Exchangeable Share presented and surrendered by the
holder, together with, on the payment date therefor, the full amount of all
declared and unpaid dividends on any such Exchangeable Share held by such holder
on any dividend record date which occurred prior to the Retraction Date. To
effect such redemption, the holder shall present and surrender at the registered
office of the Corporation by notice to the holders of Exchangeable Shares the
certificate or certificates representing the Exchangeable Shares which the
holder desires to have the Corporation redeem, together with such other
documents and instruments as are required to effect a transfer of Exchangeable
Shares under the SBCA and the by-laws of the Corporation and such additional
documents and instruments as the Parent or the Corporation may reasonably
require, and together with a duly executed statement (the “Retraction
Request”) in the form of Schedule A hereto or in such other form as may be
acceptable to the Corporation: 

	 	(a) 	
      specifying that the holder desires to have all or any
      number specified therein of the Exchangeable Shares represented by such
      certificate or certificates (the “Retracted Shares”) redeemed by the
      Corporation;

	 	 	 
	 	(b) 	
      stating the Business Day on which the holder desires to
      have the Corporation redeem the Retracted Shares (the “Retraction
      Date”), provided that the Retraction Date shall be not less than 10
      Business Days nor more than 15 Business Days after the date on which the
      Retraction Request is received by the Corporation and further provided
      that, in the event that no such Business Day is specified by the holder in
      the Retraction Request, the Retraction Date shall be deemed to be the 15th
      Business Day after the date on which the Retraction Request is received by
      the Corporation; and

	 	 	 
	 	(c) 	
      acknowledging the overriding right (the “Retraction
      Call Right”) of Parent to purchase all but not less than all the
      Retracted Shares directly from the holder and that the Retraction Request
      shall be deemed to be a revocable offer by the holder to sell the
      Retracted Shares to Parent in accordance with the Retraction Call Right on
      the terms and conditions set out in Section 6.3
below.

O-9 

6.2      Subject to the exercise by
Parent of the Retraction Call Right, upon receipt by the Corporation in the
manner specified in Section 6.1 hereof of a certificate or certificates
representing the number of Exchangeable Shares which the holder desires to have
the Corporation redeem, together with a Retraction Request and such other
documents and instruments as are required to effect a transfer of Exchangeable
Shares under the SBCA and the bylaws of the Corporation and such additional
documents and instruments as the Parent or the Corporation may reasonably
require, and provided that the Retraction Request is not revoked by the holder
in the manner specified in Section 6.7, the Corporation shall redeem the
Retracted Shares effective at the close of business on the Retraction Date and
shall cause to be delivered to such holder the total Retraction Price with
respect to such shares, provided that all declared and unpaid dividends for
which the record date has occurred prior to the Retraction Date shall be paid on
the payment date for such dividends. If only a part of the Exchangeable Shares
represented by any certificate is redeemed (or purchased by Parent pursuant to
the Retraction Call Right), a new certificate for the balance of such
Exchangeable Shares shall be issued to the holder at the expense of the
Corporation. 

6.3      Upon receipt by the
Corporation of a Retraction Request, the Corporation shall immediately notify
Parent thereof. In order to exercise the Retraction Call Right, Parent must
notify the Corporation of its determination to do so (the “Parent Call
Notice”) within five Business Days of notification to Parent by the
Corporation of the receipt by the Corporation of the Retraction Request. If
Parent does not so notify the Corporation within such five Business Day period,
the Corporation will notify the holder as soon as possible thereafter that
Parent will not exercise the Retraction Call Right. If Parent delivers the
Parent Call Notice within such five Business Day period, and provided that the
Retraction Request is not revoked by the holder in the manner specified in
Section 6.7, the Retraction Request shall thereupon be considered only to be an
offer by the holder to sell the Retracted Shares to Parent in accordance with
the Retraction Call Right. In such event, the Corporation shall not redeem the
Retracted Shares and Parent shall purchase from such holder and such holder
shall sell to Parent on the Retraction Date the Retracted Shares for a purchase
price (the “Purchase Price”) per share equal to the Retraction Price per
share which shall be satisfied in full by Parent causing to be delivered to such
holder one share of Parent Common Stock for each Exchangeable Share presented
and surrendered by the holder, plus, on the designated payment date therefor, to
the extent not paid by the Corporation on the designated payment date therefor,
an additional amount equivalent to the full amount of all declared and unpaid
dividends on those Retracted Shares held by such holder on any dividend record
date which occurred prior to the Retraction Date (the “Dividend Amount”).
For the purposes of completing a purchase pursuant to the Retraction Call Right,
Parent shall deposit with the Corporation, on or before the Retraction Date,
certificates representing shares of Parent Common Stock and a cheque or cheques
of Parent payable at par at any branch of the bankers of Parent representing the
aggregate Dividend Amount, less any amounts withheld on account of tax required
to be deducted and withheld therefrom. Provided that Parent has complied with
the immediately preceding sentence, the closing of the purchase and sale of the
Retracted Shares pursuant to the Retraction Call Right shall be deemed to have
occurred as at the close of business on the Retraction Date and, for greater
certainty, no redemption by the Corporation of such Retracted Shares shall take
place on the Retraction Date. In the event that Parent does not deliver a Parent
Call Notice within such five Business Day period, and provided that the
Retraction Request is not revoked by the holder in the manner specified in
Section 6.7, the Corporation shall redeem the Retracted Shares on the Retraction
Date and in the manner otherwise contemplated in this Article 6. 

6.4      The Corporation or Parent, as
the case may be, shall deliver to the relevant holder, at the address of the
holder recorded in the securities register of the Corporation for the
Exchangeable Shares or at the address specified in the holder’s Retraction
Request or by holding for pick-up by the holder at the registered office of the
Corporation by notice to the holders of Exchangeable Shares, certificates
representing the Parent Common Stock (which shares shall be duly issued as fully
paid and non-assessable and shall be free and clear of any lien, claim or
encumbrance) registered in the name of the holder or in such other name as the
holder may request, and, if applicable and on or before the payment date
therefor, a cheque payable at par at any branch of the bankers of the
Corporation or Parent, as applicable, representing the aggregate Dividend Amount
in payment of the total Retraction Price or the total Purchase Price, as the
case may be, in each case, less any amounts withheld on account of tax required
to be deducted and withheld therefrom, and such delivery of such certificates
and cheques on behalf of the Corporation or by Parent, as the case may be, shall
be deemed to be payment of and shall satisfy and discharge all liability for the
total Retraction Price or total Purchase Price, as the case may be, to the
extent that the same is represented by such share certificates and cheques (plus
any tax deducted and withheld therefrom and remitted to the proper tax
authority). 

O-10 

6.5      On and after the close of
business on the Retraction Date, the holder of the Retracted Shares shall cease
to be a holder of such Retracted Shares and shall not be entitled to exercise
any of the rights of a holder in respect thereof, other than the right to
receive his proportionate part of the total Retraction Price or total Purchase
Price, as the case may be, unless upon presentation and surrender of
certificates in accordance with the foregoing provisions, payment of the total
Retraction Price or the total Purchase Price, as the case may be, shall not be
made as provided in Section 6.4, in which case the rights of such holder shall
remain unaffected until the total Retraction Price or the total Purchase Price,
as the case may be, has been paid in the manner hereinbefore provided. On and
after the close of business on the Retraction Date, provided that presentation
and surrender of certificates and payment of the total Retraction Price or the
total Purchase Price, as the case may be, has been made in accordance with the
foregoing provisions, the holder of the Retracted Shares so redeemed by the
Corporation or purchased by Parent shall thereafter be considered and deemed for
all purposes to be a holder of the Parent Common Stock delivered to it. 

6.6     Notwithstanding any other provision
of this Article 6, the Corporation shall not be obligated to redeem Retracted
Shares specified by a holder in a Retraction Request to the extent that such
redemption of Retracted Shares would be contrary to solvency requirements or
other provisions of applicable law. If the Corporation believes that on any
Retraction Date it would not be permitted by any of such provisions to redeem
the Retracted Shares tendered for redemption on such date, and provided that
Parent shall not have exercised the Retraction Call Right with respect to the
Retracted Shares, the Corporation shall only be obligated to redeem Retracted
Shares specified by a holder in a Retraction Request to the extent of the
maximum number that may be so redeemed (rounded down to a whole number of
shares) as would not be contrary to such provisions and shall notify the holder
at least two Business Days prior to the Retraction Date as to the number of
Retracted Shares which will not be redeemed by the Corporation. In any case in
which the redemption by the Corporation of Retracted Shares would be contrary to
solvency requirements or other provisions of applicable law, the Corporation
shall redeem the maximum number of Exchangeable Shares which the Board of
Directors determine the Corporation is, on the Retraction Date, permitted to
redeem, which shall be selected as nearly as may be pro rata (disregarding
fractions) in proportion to the total number of Exchangeable Shares tendered for
retraction by each holder thereof and the Corporation shall issue to each holder
of Retracted Shares a new certificate, at the expense of the Corporation,
representing the Retracted Shares not redeemed by the Corporation pursuant to
Section 6.2 hereof. Provided that the Retraction Request is not revoked by the
holder in the manner specified in Section 6.7, the holder of any such Retracted
Shares not redeemed by the Corporation pursuant to Section 6.2 of these share
provisions as a result of solvency requirements or other provisions of
applicable law shall be deemed by giving the Retraction Request to have
instructed the Trustee to require to purchase such Retracted Shares from such
holder on the Retraction Date or as soon as practicable thereafter on payment by
to such holder of the Purchase Price for each such Retracted Share, all as more
specifically provided in Section 5.7 of the Voting and Exchange Trust Agreement.

6.7      A holder of Retracted Shares may,
by notice in writing given by the holder to the Corporation before the close of
business on the Business Day immediately preceding the Retraction Date, withdraw
its Retraction Request, in which event such Retraction Request shall be null and
void and, for greater certainty, the revocable offer constituted by the
Retraction Request to sell the Retracted Shares to Parent shall be deemed to
have been revoked. 

ARTICLE 7 
REDEMPTION OF EXCHANGEABLE SHARES BY THE
CORPORATION 

7.1      Subject to applicable law, and
provided Parent has not exercised the Redemption Call Right, the Corporation
shall on the Redemption Date redeem all but not less than all of the then
outstanding Exchangeable Shares for an amount per share equal to the Current
Market Price of a Common Share on the last Business Day prior to the Redemption
Date (the “Redemption Price”), which shall be satisfied in full by the
Corporation causing to be delivered to each holder of Exchangeable Shares one
share of Parent Common Stock for each Exchangeable Share held by such holder,
together with the full amount of all declared and unpaid dividends on each such
Exchangeable Share held by such holder on any dividend record date which
occurred prior to the Redemption Date. 

7.2      In any case of a redemption
of Exchangeable Shares under this Article 7, the Corporation shall, at least 60
days before the Redemption Date (other than a Redemption Date established in
connection with a Parent Control Transaction, an Exchangeable Share Voting Event
or an Exempt Exchangeable Share Voting Event), send or cause to be sent to each
holder of Exchangeable Shares a notice in writing of the redemption by the
Corporation or the purchase by Parent under the Redemption Call Right, as the
case may be, of the Exchangeable Shares held by such 

O-11 

holder; provided that if the notice period of 60 days would
expire after the date that would, but for such 60-day period, be established as
the Redemption Date, then the Redemption Date will be deferred until the notice
period of 60 days has passed. In the case of a Redemption Date established in
connection with a Parent Control Transaction, an Exchangeable Share Voting Event
and an Exempt Exchangeable Share Voting Event, the written notice of redemption
by the Corporation or the purchase by Parent under the Redemption Call Right
will be sent on or before the Redemption Date, on as many days prior written
notice as may be determined by the Board of Directors of the Corporation to be
reasonably practicable in the circumstances. In any such case, such notice shall
set out the Redemption Price or the Redemption Call Purchase Price, as the case
may be, the Redemption Date and, if applicable, particulars of the Redemption
Call Right. 

7.3      On or after the Redemption
Date and subject to the exercise by Parent of the Redemption Call Right, the
Corporation shall cause to be delivered to the holders of the Exchangeable
Shares to be redeemed the Redemption Price for each such Exchangeable Share,
together with the full amount of all declared and unpaid dividends on each such
Exchangeable Share held by such holder on any dividend record date which
occurred prior to the Redemption Date, upon presentation and surrender at the
registered office of the Corporation or Parent or the Corporation as may be
specified by the Corporation in such notice of the certificates representing
such Exchangeable Shares, together with such other documents and instruments as
may be required to effect a transfer of Exchangeable Shares under the SBCA
and the by-laws of the Corporation and such additional documents and
instruments as the Parent or the Corporation may reasonably require. Payment of
the total Redemption Price for such Exchangeable Shares, together with payment
of such dividends, shall be made by delivery to each holder, at the address of
the holder recorded in the securities register of the Corporation or by holding
for pick-up by the holder at the registered office of the Corporation in such
notice, on behalf of the Corporation of certificates representing shares of
Parent Common Stock (which shares shall be duly issued as fully paid and
non-assessable and shall be free and clear of any lien, claim or encumbrance)
and, if applicable, a cheque of the Corporation payable at par at any branch of
the bankers of the Corporation in payment of any such dividends, in each case,
less any amounts withheld on account of tax required to be deducted and withheld
therefrom. On and after the Redemption Date, the holders of the Exchangeable
Shares called for redemption shall cease to be holders of such Exchangeable
Shares and shall not be entitled to exercise any of the rights of holders in
respect thereof, other than the right to receive their proportionate part of the
total Redemption Price and any such dividends, unless payment of the total
Redemption Price and any such dividends for such Exchangeable Shares shall not
be made upon presentation and surrender of certificates in accordance with the
foregoing provisions, in which case the rights of the holders shall remain
unaffected until the total Redemption Price and any such dividends have been
paid in the manner hereinbefore provided. The Corporation shall have the right
at any time after the sending of notice of its intention to redeem the
Exchangeable Shares as aforesaid to deposit or cause to be deposited the total
Redemption Price for, and the full amount of such dividends on (except as
provided in the preceding sentence), the Exchangeable Shares so called for
redemption, or of such of the said Exchangeable Shares represented by
certificates that have not at the date of such deposit been surrendered by the
holders thereof in connection with such redemption, in a custodial account with
any chartered bank or trust company in Canada named in such notice, less any
amounts withheld on account of tax required to be deducted and withheld
therefrom. Upon the later of such deposit being made and the Redemption Date,
the Exchangeable Shares in respect whereof such deposit shall have been made
shall be redeemed and the rights of the holders thereof after such deposit or
Redemption Date, as the case may be, shall be limited to receiving their
proportionate part of the total Redemption Price and such dividends for such
Exchangeable Shares so deposited, against presentation and surrender of the said
certificates held by them, respectively, in accordance with the foregoing
provisions. Upon such payment or deposit of the total Redemption Price and the
full amount of such dividends, the holders of the Exchangeable Shares shall
thereafter be considered and deemed for all purposes to be holders of the Parent
Common Stock delivered to them or the custodian on their behalf. 

ARTICLE 8 
VOTING RIGHTS 

8.1      Except as required by
applicable law and by Article 9 hereof, the holders of the Exchangeable Shares
shall not be entitled as such to receive notice of or to attend any meeting of
the shareholders of the Corporation or to vote at any such meeting. 

O-12 

ARTICLE 9 
AMENDMENT AND APPROVAL 

9.1       The rights, privileges,
restrictions and conditions attaching to the Exchangeable Shares may be added
to, changed or removed but only with the approval of the holders of the
Exchangeable Shares given as hereinafter specified. 

9.2       Any approval given by
the holders of the Exchangeable Shares to add to, change or remove any right,
privilege, restriction or condition attaching to the Exchangeable Shares or any
other matter requiring the approval or consent of the holders of the
Exchangeable Shares shall be deemed to have been sufficiently given if it shall
have been given in accordance with applicable law subject to a minimum
requirement that such approval be evidenced by resolution passed by not less
than two-thirds of the votes cast on such resolution at a meeting of holders of
Exchangeable Shares duly called and held at which the holders of at least 25% of
the outstanding Exchangeable Shares at that time are present or represented by
proxy; provided that if at any such meeting the holders of at least 25% of the
outstanding Exchangeable Shares at that time are not present or represented by
proxy within one-half hour after the time appointed for such meeting, then the
meeting shall be adjourned to such date not less than five days thereafter and
to such time and place as may be designated by the Chairman of such meeting. At
such adjourned meeting the holders of Exchangeable Shares present or represented
by proxy thereat may transact the business for which the meeting was originally
called and a resolution passed thereat by the affirmative vote of not less than
two-thirds of the votes cast on such resolution at such meeting shall constitute
the approval or consent of the holders of the Exchangeable Shares. 

ARTICLE 10 
RECIPROCAL CHANGES, ETC. 
IN RESPECT
OF PARENT COMMON STOCK 

10.1     Each holder of an Exchangeable
Share acknowledges that the Exchangeable Share Support Agreement provides, in
part, that Parent will not without the prior approval of the Corporation and the
prior approval of the holders of the Exchangeable Shares given in accordance
with Section 9.2 of these share provisions: 

	 	(a) 	
      issue or distribute Parent Common Stock (or securities
      exchangeable for or convertible into or carrying rights to acquire Parent
      Common Stock) to the holders of all or substantially all of the then
      outstanding Parent Common Stock by way of stock dividend or other
      distribution, other than an issue of Parent Common Stock (or securities
      exchangeable for or convertible into or carrying rights to acquire Parent
      Common Stock) to holders of Parent Common Stock who exercise an option to
      receive dividends in Parent Common Stock (or securities exchangeable for
      or convertible into or carrying rights to acquire Parent Common Stock) in
      lieu of receiving cash dividends;

	 	 	 	 
	 	(b) 	
      issue or distribute rights, options or warrants to the
      holders of all or substantially all of the then outstanding Parent Common
      Stock entitling them to subscribe for or to purchase Parent Common Stock
      (or securities exchangeable for or convertible into or carrying rights to
      acquire Parent Common Stock); or

	 	 	 	 
	 	(c) 	
      issue or distribute to the holders of all or
      substantially all of the then outstanding Parent Common Stock:

	 	 	 	 
	 		(i) 	
      shares or securities of Parent of any class other than
      Parent Common Stock (other than shares convertible into or exchangeable
      for or carrying rights to acquire Parent Common Stock);

	 	 	 	 
	 		(ii) 	
      rights, options, warrants or securities other than those
      referred to in Section 10.1(b) above;

	 	 	 	 
	 		(iii) 	
      evidences of indebtedness of Parent; or

	 	 	 	 
	 		(iv) 	
      any property or assets of
Parent,

O-13 

unless the economic equivalent (as determined by the Board of
Directors as contemplated by Section 3.6 hereof) on a per share basis of such
rights, options, securities, shares, evidences of indebtedness or other assets
is issued or distributed simultaneously to holders of the Exchangeable Shares.

10.2     Each holder of an Exchangeable
Share acknowledges that the Exchangeable Share Support Agreement further
provides, in part, that Parent will not without the prior approval of the
Corporation and the prior approval of the holders of the Exchangeable Shares
given in accordance with Section 9.2 of these share provisions: 

	 	(a) 	
      subdivide, redivide or change the then outstanding Parent
      Common Stock into a greater number of Parent Common Stock;

	 	 	 
	 	(b) 	
      reduce, combine, consolidate or change the then
      outstanding Parent Common Stock into a lesser number of Parent Common
      Stock; or

	 	 	 
	 	(c) 	
      reclassify or otherwise change the Parent Common Stock or
      effect an amalgamation, merger, reorganization or other transaction
      affecting the Parent Common Stock,

unless the same or an economically equivalent change (as
determined by the Board of Directors as contemplated by Section 3.6 hereof)
shall simultaneously be made to, or in, the rights of the holders of the
Exchangeable Shares. The Exchangeable Share Support Agreement further provides,
in part, that the aforesaid provisions of the Exchangeable Share Support
Agreement shall not be changed without the approval of the holders of the
Exchangeable Shares given in accordance with Section 9.2 of these share
provisions. 

ARTICLE 11 
ACTIONS BY THE CORPORATION UNDER
SUPPORT AGREEMENT 

11.1     The Corporation will take all such
actions and do all such things as shall be necessary or advisable to perform and
comply with and to ensure performance and compliance by Parent and the
Corporation with all provisions of the Exchangeable Share Support Agreement
applicable to Parent and the Corporation, respectively, in accordance with the
terms thereof including, without limitation, taking all such actions and doing
all such things as shall be necessary or advisable to enforce to the fullest
extent possible for the direct benefit of the Corporation all rights and
benefits in favour of the Corporation under or pursuant to such agreement. 

11.2     The Corporation shall not propose,
agree to or otherwise give effect to any amendment to, or waiver or forgiveness
of its rights or obligations under, the Exchangeable Share Support Agreement
without the approval of the holders of the Exchangeable Shares given in
accordance with Section 9.2 of these share provisions other than such
amendments, waivers and/or forgiveness as may be necessary or advisable for the
purposes of: 

	 	(a) 	
      adding to the covenants of the other parties to such
      agreement for the protection of the Corporation or the holders of the
      Exchangeable Shares thereunder;

	 	 	 
	 	(b) 	
      making such provisions or modifications not inconsistent
      with such agreement as may be necessary or desirable with respect to
      matters or questions arising thereunder which, in the good faith opinion
      of the Board of Directors, it may be expedient to make, provided that the
      Board of Directors shall be of the good faith opinion, after consultation
      with counsel, that such provisions and modifications will not be
      prejudicial to the interests of the holders of the Exchangeable Shares;
      or

	 	 	 
	 	(c) 	
      making such changes in or corrections to such agreement
      which, on the advice of counsel to the Corporation, are required for the
      purpose of curing or correcting any ambiguity or defect or inconsistent
      provision or clerical omission or mistake or manifest error contained
      therein, provided that the Board of Directors shall be of the good faith
      opinion, after consultation with counsel, that such changes or corrections
      will not be prejudicial to the interests of the holders of the
      Exchangeable Shares.

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ARTICLE 12 
LEGEND; CALL RIGHTS 

12.1     The certificates evidencing the
Exchangeable Shares shall contain or have affixed thereto a legend in form and
on terms approved by the Board of Directors, with respect to the Exchangeable
Share Support Agreement, the provisions of the Share Exchange Agreement relating
to the Liquidation Call Right and the Redemption Call Right, and the Voting and
Exchange Trust Agreement (including the provisions with respect to the voting
rights, exchange right and automatic exchange thereunder). 

12.2     Each holder of an Exchangeable
Share, whether of record or beneficial, by virtue of becoming and being such a
holder shall be deemed to acknowledge each of the Liquidation Call Right, the
Retraction Call Right and the Redemption Call Right, in each case, in favour of
Parent, and the overriding nature thereof in connection with the liquidation,
dissolution or winding-up of the Corporation or the retraction or redemption of
Exchangeable Shares, as the case may be, and to be bound thereby in favour of
Parent as therein provided. 

ARTICLE 13 
NOTICES; GENERAL 

13.1     Any notice, request or other
communication to be given to the Corporation by a holder of Exchangeable Shares
shall be in writing and shall be valid and effective if given by mail (postage
prepaid) or by telecopy or by delivery to the registered office of the
Corporation and addressed to the attention of the President. Any such notice,
request or other communication, if given by mail, telecopy or delivery, shall
only be deemed to have been given and received upon actual receipt thereof by
the Corporation. 

13.2     Any presentation and surrender by
a holder of Exchangeable Shares to the Corporation of certificates representing
Exchangeable Shares in connection with the liquidation, dissolution or
winding-up of the Corporation or the retraction or redemption of Exchangeable
Shares shall be made by registered mail (postage prepaid) or by delivery to the
registered office of the Corporation or to such office as may be specified by
the Corporation, in each case, addressed to the attention of such person as the
Corporation may determine. Any such presentation and surrender of certificates
shall only be deemed to have been made and to be effective upon actual receipt
thereof by or on behalf of the Corporation, as the case may be. Any such
presentation and surrender of certificates made by registered mail shall be at
the sole risk of the holder mailing the same. 

13.3     Any notice, request or other
communication to be given to a holder of Exchangeable Shares by or on behalf of
the Corporation shall be in writing and shall be valid and effective if given by
mail (postage prepaid) or by delivery to the address of the holder recorded in
the securities register of the Corporation or, in the event of the address of
any such holder not being so recorded, then at the last known address of such
holder. Any such notice, request or other communication, if given by mail, shall
be deemed to have been given and received on the third Business Day following
the date of mailing and, if given by delivery, shall be deemed to have been
given and received on the date of delivery. Accidental failure or omission to
give any notice, request or other communication to one or more holders of
Exchangeable Shares shall not invalidate or otherwise alter or affect any action
or proceeding to be taken by the Corporation pursuant thereto. 

13.4     If the Corporation determines that
mail service is or is threatened to be interrupted at the time when the
Corporation is required or elects to give any notice to the holders of
Exchangeable Shares hereunder, the Corporation shall, notwithstanding the
provisions hereof, give such notice by means of publication in The Globe and
Mail, national edition, or any other English language daily newspaper or
newspapers of general circulation in Canada once in each of two successive
weeks, and notice so published shall be deemed to have been given on the latest
date on which the first publication has taken place. 

            If,
by reason of any actual or threatened interruption of mail service due to
strike, lock-out or otherwise, any notice to be given to the Corporation would
be unlikely to reach its destination in a timely manner, such notice shall be
valid and effective only if delivered personally to the Corporation in
accordance with Section 13.1 or 13.2, as the case may be. 

O-15 

SCHEDULE A 
TO THE 
PROVISIONS ATTACHING TO THE

CLASS D EXCHANGEABLE SHARES OF 
KEEWATIN WINDPOWER INC. 

NOTICE OF RETRACTION 

To Keewatin Windpower Inc. (the “Corporation”)
and Keewatin Windpower Corp. (“Parent”). 

                        This
notice is given pursuant to Article 6 of the provisions (the “Share Provisions”)
attaching to the Exchangeable Shares of the Corporation represented by the
attached certificate and all capitalized words and expressions used in this
notice that are defined in the Share Provisions have the meanings ascribed to
such words and expressions in such Share Provisions. 

                        The
undersigned hereby notifies the Corporation that, subject to the Retraction Call
Right referred to below, the undersigned desires to have the Corporation redeem
in accordance with Article 6 of the Share Provisions: 

[
]        all share(s) represented by the
attached share certificate; or 

[
]         __________ share(s) only. 

            The
undersigned hereby notifies the Corporation that the Retraction Date shall be
________

	
      NOTE: 
	
      The Retraction Date must be a Business Day and must not
      be less than 10 Business Days nor more than 15 Business Days after the
      date upon which this notice is received by the Corporation. If no such
      Business Day is specified above, the Retraction Date shall be deemed to be
      the 15th Business Day after the date on which this notice is received by
      the Corporation. 

                        The
undersigned acknowledges the overriding Retraction Call Right of Parent to
purchase all but not less than all the Retracted Shares from the undersigned and
that this notice is and shall be deemed to be a revocable offer by the
undersigned to sell the Retracted Shares to Parent in accordance with the
Retraction Call Right on the Retraction Date for the Purchase Price and on the
other terms and conditions set out in Section 6.3 of the Share Provisions. This
notice of retraction, and this offer to sell the Retracted Shares to Parent, may
be revoked and withdrawn by the undersigned only by notice in writing given to
the Corporation at any time before the close of business on the Business Day
immediately preceding the Retraction Date. 

                        The
undersigned acknowledges that if, as a result of solvency provisions of
applicable law, the Corporation is unable to redeem all Retracted Shares, and
provided that Parent shall not have exercised the Retraction Call Right with
respect to the Retracted Shares, the undersigned will be deemed to have
exercised the Exchange Right (as defined in the Voting and Exchange Trust
Agreement) so as to require Parent to purchase the unredeemed Retracted Shares.

                        The
undersigned hereby represents and warrants to Parent and the Corporation that
the undersigned: 

      
    (select one) 

[ ]        is a resident
of Canada for purposes of the Income Tax Act (Canada). 

[ ]        is a
non-resident of Canada for purposes of the Income Tax Act (Canada). 

The undersigned acknowledges that if the undersigned has not
represented above that the undersigned is a resident of Canada, withholding on
account of Canadian tax may be made from amounts payable to the undersigned on
the redemption or purchase of the Retracted Shares. 

O-16 

                        The
undersigned hereby represents and warrants to the Corporation and Parent that
the undersigned: (i) has good title to, and owns, the share(s) represented by
this certificate to be acquired by Parent or the Corporation, as the case may
be, free and clear of all liens, claims and encumbrances, and (ii) will
complete, sign and return to the Corporation or Parent, prior to the redemption
of any of the Exchangeable Shares, on request by the Corporation or Parent, any
documents, questionnaires, notices, certificates and undertakings in order to
comply with applicable securities laws. 

	 	 	 	 	 
	(Date) 	 	(Signature of Shareholder) 	 	(Guarantee of Signature)

	 	[ ] 	
      Please check box if the securities and any cheque(s)
      resulting from the retraction or purchase of the Retracted Shares are to
      be held for pick-up by the shareholder from the Transfer Agent, failing
      which the securities and any cheque(s) will be mailed to the last address
      of the shareholder as it appears on the
register.

	
      NOTE: 
	
      This panel must be completed and the attached share
      certificate, together with such additional documents as the Corporation
      and Parent may require, must be deposited with the Corporation or Parent.
      The securities and any cheque(s) resulting from the retraction or purchase
      of the Retracted Shares will be issued and registered in, and made payable
      to, respectively, the name of the shareholder as it appears on the
      register of the Corporation and the securities and any cheque(s) resulting
      from such retraction or purchase will be delivered to such shareholder as
      indicated above, unless the form appearing immediately below is duly
      completed. 

Date: ___________________________________

Name of Person in Whose Name Securities or Cheque(s) 

  Are to be Registered, Issued or Delivered (please print):   ______________________________________________________________

Street Address or P.O. Box: ____________________________________________________________________________________

Signature of Shareholder: _____________________________________________________________________________________

City, Province and Postal Code: ________________________________________________________________________________

Signature Guaranteed by: _____________________________________________________________________________________

	
      NOTE: 
	
      If this notice of retraction is for less than all of the
      shares represented by the attached certificate, a certificate representing
      the remaining share(s) of the Corporation represented by the attached
      share certificate will be issued and registered in the name of the
      shareholder as it appears on the register of the Corporation, unless the
      Share Transfer Power on the share certificate is duly completed in respect
      of such share(s).

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