Document:

CounterPath Corporation - Exhibit 10.23 - Filed by newsfilecorp.com

REGISTRATION RIGHTS AGREEMENT 

          This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of June 14,
2011, is by and between COUNTERPATH CORPORATION, a Nevada corporation (the
“Corporation”), and (i) each subscriber in the Corporation’s Offering of
Units (each as defined herein) (such subscribers being referred to herein
individually as a “Subscriber” and collectively as the
“Subscribers”); and (ii) each of the Agents (as defined herein) for the
Offering. 

         A.      The
Corporation has agreed, on the terms and subject to the conditions set forth in
the Subscription Agreement between the Corporation and each Subscriber (the
“Subscription Agreement”) to issue and sell Units to each Subscriber.
Each Unit (a “Unit”) is comprised of one Common Share (each a
“Share”) and one-half (1⁄2) of one non-transferable common share purchase
warrant (each whole warrant, a “Subscriber Warrant”). Each whole
Subscriber Warrant entitles the holder to purchase one Common Share (a
“Subscriber Warrant Share”) at a price of CDN$2.25 per Subscriber Warrant
Share for a period of two years following the Closing Date of the Offering. 

          B.      The
Corporation has also agreed, on the terms and subject to the conditions set
forth in the Agency Agreement between the Corporation and each of the Agents
dated of even date herewith (the “Agency Agreement”) to issue as
compensation to the Agents non-transferable warrants (the “Agents’
Warrants”) entitling the Agents to purchase that number of Common Shares
(“Agents’ Warrant Shares”) equal to 7% of the number of Units sold by the
Agents in the Offering, at an exercise price of CDN$1.75 per Agents’ Warrant
Share for a period of eighteen (18) months following the Closing Date of the
Offering.

          C.      In
order to induce each Subscriber to enter into the Subscription Agreement and
each of the Agents to enter into the Agency Agreement, the Corporation has
agreed to provide the Subscribers and the Agents with certain registration
rights under the Securities Act of 1933, as amended, and under applicable state
securities laws. 

          In
consideration of each Subscriber entering into the Subscription Agreement and of
each of the Agents entering into the Agency Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 

1.      DEFINITIONS. 

          For
purposes of this Agreement, the following terms shall have the meanings
specified: 

          “1933
Act” means the United States Securities Act of 1933, as amended. 

          “1934
Act” means the United States Securities Exchange Act of 1934, as
amended. 

          “Agency
Agreement” has the meaning set forth on the first page of this Agreement.

          “Agents”
means National Bank Financial Inc. and Canaccord Genuity Corp. 

          “Agents’
Warrants” has the meaning set forth on the first page of this Agreement.

          “Agents’
Warrant Shares” has the meaning set forth on the first page of this
Agreement. 

          “Agreement”
has the meaning set forth on the first page of this Agreement. 

          “Business
Day” means, for purposes of Section 2 of this Agreement, any day except
Saturday, Sunday or any federal holiday or other day on which the Commission is
not open for business, and for all other purposes means any day except Saturday,
Sunday or a statutory holiday in Vancouver, British Columbia or Toronto,
Ontario. 

          “Closing”
means the closing of the purchase and sale of the Units as contemplated by the
Subscription Agreement and the Agency Agreement. 

          “Closing
Date” is the date on which the Closing is completed. 

          “Commission”
means the United States Securities and Exchange Commission. 

          “Common
  Share” means a common share in the capital of the Corporation. 

          “Corporation” has the meaning set forth on the first page of this
  Agreement. 

          
“Effective Date” means the date on which a Registration Statement is
declared effective by the Commission. 

          “Holder”
means any person owning or having the right to acquire, through exercise of the
Warrants or otherwise, Registrable Securities, including initially each
Subscriber and each Agent and thereafter any permitted assignee thereof. 

          “Initial
Registration Statement” has the meaning set forth in Section 2(a). 

          “Offering”
means the offering pursuant to the Agency Agreement and the Subscription
Agreement of up to 5,714,285 Units for gross aggregate proceeds of up to
CDN$10,000,000. 

          “Registrable
Securities” means the Shares, the Subscriber Warrant Shares, the Agents’
Warrant Shares and any shares of capital stock issued or issuable from time to
time (with any adjustments) in replacement of, in exchange for, as a
distribution on, or otherwise in respect of such Shares, Subscriber Warrant
Shares or Agents’ Warrant Shares; provided, however, that any such shares shall
cease to be Registrable Securities at such time as they may be sold by the
Holder without registration under Rule 144 without limitation as to volume. 

          “Registration
Deadline” means the date which is four months after the Closing Date.

          “Registration
Period” has the meaning set forth in Section 2(b). 

          “Registration
Statement” means a registration statement or statements prepared in
compliance with the 1933 Act and pursuant to Rule 415. 

          “Rule
144” means Rule 144 under the 1933 Act or any successor rule providing a
similar exemption from 1933 Act registration requirements. 

          “Rule
415” means Rule 415 under the 1933 Act or any successor rule providing for
the offering of securities on a continuous or delayed basis. 

          “Rule
416” means Rule 416 under the 1933 Act or any successor rule providing for
the registration of securities to be issued as a result of stock splits, stock
dividends and anti-dilution provisions. 

2 

          “Second
Registration Statement” has the meaning set forth in Section 2(a). 

          “Share”
has the meaning set forth on the first page of this Agreement. 

          “Subscriber”
and “Subscribers” have the meanings set forth on the first page of this
Agreement. 

          “Subscriber
Warrant” has the meaning set forth on the first page of this Agreement.

          “Subscriber
Warrant Share” has the meaning set forth on the first page of this
Agreement. 

          “Subscription
Agreement” has the meaning set forth on the first page of this
Agreement. 

          “Unit”
has the meaning set forth on the first page of this Agreement. 

2.      REGISTRATION. 

          (a)      Registration
Statement. Following the Closing of the Offering, the Corporation shall file
with the Commission a Registration Statement on Form S-1 covering the resale of
the Registrable Securities. Such Registration Statement shall state, to the
extent permitted by Rule 416 under the 1933 Act, that it also covers such
indeterminate number of additional Common Shares as may become issuable upon
exercise of the Subscriber Warrants and the Agents’ Warrants in order to (i)
prevent dilution resulting from stock splits, stock dividends or similar events
and (ii) effect required anti-dilution adjustments pursuant to the terms of the
Subscriber Warrants or the Agents’ Warrants and their governing documents.
Notwithstanding any other provision in this Section 2, if the Corporation
receives a comment from the staff of the Commission that effectively results in
the Corporation having to reduce the number of Registrable Securities included
in such Registration Statement (hereafter referred to as the “Initial
Registration Statement”), then the Corporation, after having first used
commercially reasonable efforts to persuade the staff of the Commission to
withdraw such comment, may in its sole discretion reduce for each Holder on a
pro rata basis the number of Registrable Securities to be included in the
Initial Registration Statement. The Corporation agrees it will provide the
Agents and their counsel with the opportunity to review any such comment
received from the staff of the Commission and the Corporation’s proposed
responses thereto and will allow the Agents and their counsel to provide input
regarding the proposed responses before submitting them to the staff of the
Commission. The Corporation further covenants and agrees that it will use
commercially reasonable efforts to register the resale of all Registrable
Securities not included in the Initial Registration Statement pursuant to this
Section 2(a) by filing a second Registration Statement (the “Second
Registration Statement”) six months after the Effective Date of the Initial
Registration Statement, or as soon thereafter as is reasonably practicable, and
will use commercially reasonable efforts to make the Second Registration
Statement effective as soon as reasonably practicable after the date it is
filed. 

          (b)     
Effectiveness. The Corporation shall use commercially reasonable efforts
to cause the Initial Registration Statement to be made effective by the
Registration Deadline and in any event as soon as reasonably practicable after
the Closing Date. The Corporation shall respond promptly to any and all comments
made by the staff of the Commission on the Initial Registration Statement and,
if applicable, the Second Registration Statement, and shall submit to the
Commission, within five (5) Business Days after the Corporation learns that no
review of such Registration Statement will be made by the staff of the
Commission or that the staff of the Commission has no further comments on such
Registration Statement, as the case may be, a request for acceleration of the
effectiveness of the Registration Statement to a time and date not later than
two (2) Business Days after the submission of such request. The Corporation will
maintain the effectiveness of the Initial Registration
Statement and, if applicable, the Second Registration Statement until the
earlier to occur of (i) the date on which all of the Registrable Securities
eligible for resale thereunder have been publicly sold pursuant to such
Registration Statements or Rule 144 and (ii) the date on which all of the
Registrable Securities remaining to be sold under such Registration Statements
(in the reasonable opinion of counsel to the Corporation) may be immediately
sold to the public pursuant to Rule 144 under the 1933 Act (the period beginning
on the Closing Date and ending on the earlier to occur of (i) or (ii) above
being referred to herein as the “Registration Period”). 

3 

          (c)     
Registration of Other Securities. During the period beginning on the
Closing Date and ending on the Effective Date, the Corporation shall refrain
from filing any registration statement (other than (i) a Registration Statement
filed hereunder, or (ii) a registration statement that qualifies to be filed on
Form S-8 or any successor form or other form promulgated for similar
purposes.

3.      PIGGYBACK REGISTRATION. 

          If
at any time prior to the expiration of the Registration Period, the Corporation
proposes to file a registration statement under the 1933 Act, other than a
registration statement on Form S-8 or Form S-4 or any successor form or other
form promulgated for similar purposes, and a Registration Statement covering the
sale of all of the Registrable Securities held by any Holder is not then
effective and available for sales thereof by such Holder, the Corporation shall
(a) give prior written notice to each such Holder of its intention to do so and
(b) include all such Registrable Securities in the registration statement filed
in connection with the Proposed Registration. 

4.      OBLIGATIONS OF THE
CORPORATION. 

          In
addition to performing its obligations hereunder, including without limitation
those pursuant to Section 2 above, the Corporation shall, with respect to each
Registration Statement described in Section 2(a): 

          (a)      prepare
and file with the Commission such amendments and supplements to the Registration
Statement and the prospectus used in connection with the Registration Statement
as may be necessary to comply with the provisions of the 1933 Act or to maintain
the effectiveness of the Registration Statement during the Registration Period,
or as may be reasonably requested by a Holder in order to incorporate
information concerning such Holder or such Holder's intended method of
distribution; 

          (b)      furnish
to each Holder such number of copies of the prospectus included in the
Registration Statement, including a preliminary prospectus, in conformity with
the requirements of the 1933 Act, and such other documents as such Holder may
reasonably request in order to facilitate the disposition of such Holder's
Registrable Securities; 

          (c)      use
commercially reasonable efforts to register or qualify the Registrable
Securities under the securities or “blue sky” laws of such jurisdictions within
the United States as shall be reasonably requested from time to time by a
Holder, and do any and all other acts or things which may be necessary or
advisable to enable such Holder to consummate the public sale or other
disposition of the Registrable Securities in such jurisdictions; provided that
the Corporation shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to service of
process in any such jurisdiction or to subject itself to taxation in any such
jurisdiction; 

          (d)     
in the event of an underwritten public offering of the Registrable Securities,
enter into (together with all Holders proposing to distribute Registrable
Securities through such underwriting) and perform its obligations under an underwriting agreement, in
usual and customary form reasonably acceptable to the Corporation, with the
managing underwriter of such offering; 

4 

          (e)     
notify each Holder immediately after becoming aware of the occurrence of any
event (but shall not, without the prior written consent of such Holder, disclose
to such Holder any facts or circumstances constituting material non-public
information) as a result of which the prospectus included in the Registration
Statement, as then in effect, is no longer compliant with the 1933 Act, and as
promptly as practicable prepare and file with the Commission and furnish to each
Holder a reasonable number of copies of a new, amended or supplemented
prospectus that complies with the 1933 Act, and in the meantime keep each Holder
informed of the status of the Corporation’s efforts to make the prospectus
compliant with the 1933 Act; 

          (f)     
use all commercially reasonable efforts to prevent the issuance of any stop
order or other order suspending the effectiveness of the Registration Statement
and, if such an order is issued, to obtain the withdrawal thereof at the
earliest possible time and to notify each Holder of the issuance of such order
and the resolution thereof; 

          (g)      furnish
to each Holder, on the date that the Registration Statement, or any successor
registration statement, becomes effective, a letter, dated such date, addressed
to such Holder, confirming such effectiveness and, to the knowledge of the
Corporation, the absence of any stop order; 

          (h)      provide
to each Holder and its representatives the reasonable opportunity to conduct a
reasonable inquiry of the Corporation's financial and other records during
normal business hours and make available its officers, directors and employees
for questions regarding information which such Holder may reasonably request in
order to fulfill any due diligence obligation on its part, subject, however, to
the execution and delivery to the Corporation by such Holder of a customary
non-disclosure agreement and provided that the Corporation shall not disclose
any material non-public information to such Holder absent such Holder's written
request therefor; 

          (i)      permit
counsel for each Holder, at such Holder's expense, to review the Registration
Statement and all amendments thereto, and any comments made by the staff of the
Commission concerning such Holder and the Corporation's responses thereto,
within a reasonable period of time prior to the filing thereof with the
Commission (or, in the case of comments made by the staff of the Commission,
within a reasonable period of time following the receipt thereof by the
Corporation); 

          (j)      hold
in confidence and not make any disclosure of information concerning a Holder
provided to the Corporation if at the time such information is provided the
Corporation is notified of the confidential nature of such information unless
(i) disclosure of such information is necessary to comply with federal or state
securities laws, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement that
includes such Holder’s Registrable Securities, (iii) the release of such
information is ordered pursuant to a subpoena or other order from a court or
governmental body of competent jurisdiction, (iv) such information has been made
generally available to the public other than by disclosure in violation of this
or any other agreement, or (v) such Holder consents to the form and content of
any such disclosure. The Corporation shall, upon learning that disclosure of any
information concerning an Holder is sought in or by a court or governmental body
of competent jurisdiction or through other means, give prompt notice to such
Holder prior to making such disclosure, and cooperate with the Holder, at the
Holder’s expense, in taking appropriate action to prevent disclosure of, or to
obtain a protective order for, such information; and 

          (k)      comply
with all applicable laws related to the Registration Statement and offering and
sale of Registrable Securities and all applicable rules and regulations of
governmental authorities in connection therewith, including, without limitation, the 1933
Act and the 1934 Act and the rules and regulations promulgated thereunder. 

5 

5.      OBLIGATIONS OF EACH HOLDER.

          In
connection with the registration of Registrable Securities pursuant to a
Registration Statement, each Holder shall: 

          (a)     
timely furnish to the Corporation in writing such information regarding itself
and the intended method of disposition of such Registrable Securities, including
the identity of and compensation to be paid to any proposed broker-dealer to be
employed in connection therewith, as the Corporation shall reasonably request in
order to effect the registration thereof; 

          (b)      execute
and deliver to the Corporation such written representations and undertakings as
the Corporation and its counsel may reasonably require in order to ensure full
compliance with relevant provisions of the 1933 Act and the 1934 Act; 

          (c)     
upon receipt of any notice from the Corporation of the happening of any event of
the kind described in Sections 4(e) or 4(f), immediately discontinue any sale or
other disposition of such Registrable Securities pursuant to such Registration
Statement until the filing of an amendment or supplement as described in Section
4(e) or withdrawal of the stop order referred to in Section 4(f), and use
commercially reasonable efforts to maintain the confidentiality of such notice
and its contents; 

          (d)     
in the event of an underwritten offering of such Registrable Securities in which
such Holder participates, enter into a customary and reasonable underwriting
agreement and execute such other documents as the Corporation and/or the
managing underwriter for such offering may reasonably request; 

          (e)     
to the extent required by applicable law, deliver a prospectus to the purchaser
of such Registrable Securities; 

          (f)      notify
the Corporation when it has sold all of the Registrable Securities held by it;
and 

          (g)      notify
the Corporation in the event that any information supplied by such Holder to the
Corporation in writing for inclusion in such Registration Statement or related
prospectus is untrue or omits to state a material fact required to be stated
therein or necessary to make such information not misleading in light of the
circumstances then existing; immediately discontinue any sale or other
disposition of such Registrable Securities pursuant to such Registration
Statement until the filing of an amendment or supplement to such prospectus as
may be necessary so that such prospectus does not contain an untrue statement of
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing; and use commercially reasonable efforts to assist
the Corporation as may be appropriate to make such amendment or supplement
effective for such purpose. 

6.      INDEMNIFICATION. 

          In
the event that any Registrable Securities are included in a Registration
Statement under this Agreement, including any registration statement described
in Section 3: 

6 

          (a)      To
the extent permitted by law, the Corporation shall indemnify and hold harmless
each Holder, the officers, directors, employees, agents and representatives of
such Holder, and each person, if any, who controls such Holder within the
meaning of the 1933 Act or the 1934 Act (collectively, the “Holder Indemnified Parties”), including in such Holder
Indemnified Parties' capacity as a broker dealer, against any losses, claims,
damages, liabilities or reasonable out-of-pocket expenses (whether joint or
several) (collectively, including legal or other expenses reasonably incurred in
connection with investigating or defending same, “Losses”), insofar as any such
Losses arise out of or are based upon (i) any untrue statement or alleged untrue
statement of a material fact contained in such Registration Statement, including
any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading, (iii) any misrepresentation or breach of any
representation or warranty made by the Corporation, or (iv) any violation or
alleged violation by the Corporation of the 1933 Act, the 1934 Act or any
applicable state securities laws in connection with the Registration Statement.
Subject to the provisions of Section 6(c) below, the Corporation will reimburse
such Holder, and each of the Holder Indemnified Parties, for any legal or other
out-of-pocket expenses as reasonably incurred by any such entity or person in
connection with investigating or defending any Loss; provided, however, that the
foregoing indemnity shall not apply to amounts paid in settlement of any Loss if
such settlement is effected without the consent of the Corporation (which
consent shall not be unreasonably withheld), nor shall the Corporation be
obligated to indemnify any person for any Loss to the extent that such Loss (i)
is based upon and is in conformity with written information furnished by such
person expressly for use in such Registration Statement, (ii) is based on a
failure of such person to deliver or cause to be delivered the final prospectus
contained in the Registration Statement and made available by the Corporation,
if such delivery is required by applicable law, or (iii) relates to the sale of
shares by such Holder after the Corporation has notified such Holder that an
event described in Section 4(e) has occurred and has not yet provided the Holder
with a new, amended or supplemented prospectus for delivery. The Corporation
shall not enter into any settlement of a Loss that does not provide for the
unconditional release of such Holder from all liabilities and obligations
relating to such Loss. 

          (b)      To
the extent permitted by law, each Holder who is named in such Registration
Statement as a selling stockholder, acting severally and not jointly, shall
indemnify and hold harmless the Corporation, the officers, directors, employees,
agents and representatives of the Corporation, and each person, if any, who
controls the Corporation within the meaning of the 1933 Act or the 1934 Act,
against any Losses to the extent (and only to the extent) that any such Losses
(i) are based upon and arise from the written information furnished by such
Holder to the Corporation expressly for use in such Registration Statement, (ii)
are based on a failure of such Holder to deliver or cause to be delivered the
final prospectus contained in the Registration Statement and made available by
the Corporation, if such delivery is required by applicable law, or (iii) relate
to the sale of shares by such Holder after the Corporation has notified such
Holder that an event described in Section 4(e) has occurred and has not yet
provided the Holder with a new, amended or supplemented prospectus for delivery.
Subject to the provisions of Section 6(c) below, such Holder will reimburse any
legal or other expenses as reasonably incurred by the Corporation and any such
officer, director, employee, agent, representative, or controlling person, in
connection with investigating or defending any such Loss; provided, however,
that the foregoing indemnity shall not apply to amounts paid in settlement of
any such Loss if such settlement is effected without the consent of such Holder
(which consent shall not be unreasonably withheld); and provided, further, that,
in no event shall any indemnity under this Section 6(b) exceed the net proceeds
actually received from the sale of the Registrable Securities sold by such
Holder under such Registration Statement. 

          (c)      Promptly
after receipt by an indemnified party under this Section 6 of notice of the
commencement of any action (including any governmental action), such indemnified
party will, if a claim in respect thereof is to be made against any indemnifying
party under this Section 6, deliver to the indemnifying party a written notice
of the commencement thereof and the indemnifying party shall have the right to
participate in and to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the reasonably incurred fees and
expenses of one such counsel for all indemnified parties to be paid by the
indemnifying party, if representation of such indemnified party by the counsel
retained by the indemnifying party would be inappropriate under applicable
standards of professional conduct due to actual or potential conflicting
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, to the extent prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under
this Section 6 with respect to such action, but the omission so to deliver
written notice to the indemnifying party will not relieve it of any liability
that it may have to any indemnified party otherwise than under this Section 6 or
with respect to any other action unless the indemnifying party is materially
prejudiced as a result of not receiving such notice. 

7 

          (d)      In
the event that the indemnity provided in paragraph (a) or (b) of this Section 6
is unavailable or insufficient to hold harmless an indemnified party for any
reason, the Corporation and each Holder agree, severally and not jointly, to
contribute to the aggregate Losses to which the Corporation or such Holder may
be subject in such proportion as is appropriate to reflect the relative fault of
the Corporation and such Holder in connection with the statements or omissions
which resulted in such Losses; provided, however, that in no case shall such
Holder be responsible for any amount in excess of the net proceeds actually
received from the sale of the Registrable Securities sold by it under the
Registration Statement. Relative fault shall be determined by reference to
whether any alleged untrue statement or omission relates to information provided
by the Corporation or by such Holder. The Corporation and each Holder agree that
it would not be just and equitable if contribution were determined by pro rata
allocation or any other method of allocation which does not take account of the
equitable considerations referred to above. Notwithstanding the provisions of
this paragraph (d), no person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f)(1) of the 1933 Act) shall be entitled to contribution
from any person who is not guilty of such fraudulent misrepresentation. For
purposes of this Section 6, each person who controls a Holder within the meaning
of either the 1933 Act or the 1934 Act and each officer, director, employee,
agent or representative of such Holder shall have the same rights to
contribution as such Holder, and each person who controls the Corporation within
the meaning of either the 1933 Act or the 1934 Act and each officer, director,
employee, agent or representative of the Corporation shall have the same rights
to contribution as the Corporation, subject in each case to the applicable terms
and conditions of this paragraph (d). 

          (e)      The
obligations of the Corporation and each Holder under this Section 6 shall
survive the completion of any offering or sale of Registrable Securities
pursuant to a Registration Statement under this Agreement, or otherwise. 

7.      REPORTS. 

          With a
view to making available to each Holder the benefits of Rule 144 and any other
similar rule or regulation of the Commission that may at any time permit such
Holder to sell securities of the Corporation to the public without registration,
the Corporation agrees (until all of the Registrable Securities have been sold
under a Registration Statement or sold pursuant to Rule 144) to: 

          (a)      make
and keep public information available, as those terms are understood and defined
in Rule 144; 

          (b)     
file with the Commission in a timely manner all reports and other documents
required of the Corporation under Section 13(a) of the 1934 Act; and 

8 

          (c)      furnish
to such Holder, so long as such Holder owns any Registrable Securities, promptly
upon written request (i) a written statement by the Corporation, if true, that
it has complied with the reporting requirements of Rule 144, the 1933 Act and
the 1934 Act, (ii) to the extent not publicly available through the Commission's
EDGAR database, a copy of the most recent annual or quarterly report of the
Corporation and such other reports and documents so filed by the Corporation,
and (iii) such other information as may be reasonably requested by such Holder
in connection with such Holder's compliance with any rule or regulation of the
Commission which permits the selling of any such securities without
registration. 

8.      MISCELLANEOUS. 

          (a)     
Expenses of Registration. All expenses, other than underwriting discounts
and commissions and fees and expenses of counsel and other advisers to each
Holder, incurred in connection with the registrations, filings or qualifications
described herein, including (without limitation) all registration, filing and
qualification fees, printers' and accounting fees, the fees and disbursements of
counsel for the Corporation, shall be borne by the Corporation. 

          (b)     
Amendment; Waiver. Except as expressly provided herein, neither this
Agreement nor any term hereof may be amended or waived except pursuant to a
written instrument executed by the Corporation and the Holders of at least 80%
of the Registrable Securities (whether or not then outstanding). Any amendment
or waiver effected in accordance with this paragraph shall be binding upon each
Holder, each future Holder and the Corporation. The failure of any party to
exercise any right or remedy under this Agreement or otherwise, or the delay by
any party in exercising such right or remedy, shall not operate as a waiver
thereof. Notwithstanding the foregoing provisions, any amendment or waiver that
affects any particular Holder in a manner different that the other Holders shall
require such particular Holder’s prior written consent in respect thereof.

          (c)     
Notices. Any notice, demand or request required or permitted to be given
by the Corporation or a Holder pursuant to the terms of this Agreement shall be
in writing and shall be deemed delivered (i) when delivered personally or by
verifiable email or facsimile transmission, unless such delivery is made on a
day that is not a Business Day, in which case such delivery will be deemed to be
made on the next succeeding Business Day, and (ii) on the next Business Day
after timely delivery to a reputable overnight courier, addressed as follows:

If to the Corporation: 

CounterPath Corporation 
Suite 300,
One Bentall Centre 
505 Burrard Street, Box 95 
Vancouver, BC V7X 1M3

Canada 
Attn: Chief Executive Officer and Chief Financial Officer

Tel: (604) 320-3344 
Fax: (604) 320-3399 
Email:
corporate@counterpath.com

with a copy to: 

Clark Wilson LLP 
800 – 885 West
Georgia Street 

  Vancouver, BC V6C 3H1 

9 

Canada 
Attn: Virgil Z. Hlus

Tel: (604) 891-7707 
Fax: (604) 687-6314 

  Email: vzh@cwilson.com 

and if to a Holder, to such address as shall be designated by
such Holder in its Subscription Agreement or as otherwise designated by such
Holder in writing to the Corporation. 

          (d)      Assignment.
Upon the private transfer by a Holder of any Registrable Securities, the rights
of such Holder hereunder with respect to such securities so transferred shall be
assigned automatically to the transferee thereof, and such transferee shall
thereupon be deemed to be a “Holder” for purposes of this Agreement if: (i) such
transfer is made in accordance with the applicable requirements of the
Subscription Agreement; (ii) the transferee agrees in writing with the
Corporation to be bound by all of the provisions of this Agreement, and (iii)
the Corporation is furnished with written notice of the name and address of such
transferee; provided, however, that the registration rights granted under this
Agreement shall not be assigned to any person or entity that receives any
Registrable Securities in a public transaction pursuant to an effective
registration statement under the 1933 Act or pursuant to Rule 144. 

          (e)      Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an
original, and all of which together shall be deemed one and the same instrument.
This Agreement, once executed by a party, may be delivered to any other party
hereto by email or facsimile transmission. 

          (f)      Governing
Law. The contract arising out of this Agreement shall be governed by and
construed in accordance with the laws of the State of Nevada.

          (g)      Language.
It is the express wish of the Subscriber that the Subscription Agreement and any
related documentation be drawn up in English only. Il est de la volonté expresse
du souscripteur que la convention de souscription ainsi que tout document
connexe soient rédigés en langue anglaise uniquement. 

          (h)      Holder
of Record. A person is deemed to be a Holder whenever such person owns or is
deemed to own of record Registrable Securities. If the Corporation receives
conflicting instructions, notices or elections from two or more persons with
respect to the same Registrable Securities, the Corporation shall act upon the
basis of instructions, notice or election received from the record owner of such
Registrable Securities. 

          (i)     
Entire Agreement. This Agreement, together with the Subscription
Agreement for the Subscribers and together with the Agency Agreement for the
Agents, constitutes the entire agreement between the parties with respect to the
subject matter of this Agreement. 

          (j)     
Headings. The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof. 

          (k)      Third
Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not
for the benefit of, nor may any provision hereof be enforced by, any other
person. 

[Signature Pages to Follow] 

10 

          IN
WITNESS WHEREOF, the undersigned have executed this Registration Rights
Agreement as of the date first-above written. 

	 	         “Corporation”    
	 	 
	 	         COUNTERPATH
      CORPORATION 
	 	 
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	       
       Title:   ______________________________________
	 	  
	 	 
	 	         “Subscriber”    
	 	 
	 	     
      ____________________________________________
	 	 
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	       
       Title:  
  ______________________________________

11 

          IN
WITNESS WHEREOF, the undersigned have executed this Registration Rights
Agreement as of the date first-above written. 

	 	         “Corporation”
    
	 	 
	 	         COUNTERPATH
      CORPORATION 
	 	  
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	         Title: 
       ______________________________________
	 	  
	 	 
	 	         “Agent”

	 	 
	 	         NATIONAL BANK
      FINANCIAL INC. 
	 	  
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	       
       Title:   ______________________________________
	 	  
	 	 
	 	         “Agent”

	 	 
	 	         CANACCORD
      GENUITY CORP. 
	 	  
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	       
       Title:  
  ______________________________________

12CounterPath Corporation - Exhibit 10.24 - Filed by newsfilecorp.com

 

 

COUNTERPATH CORPORATION 

FORM OF SUBSCRIPTION AGREEMENT 

UNITS 

 

 

INSTRUCTIONS TO PURCHASER 

ALL SUBSCRIBERS: 

1.           Complete
and sign pages 2, 3 and 4 of the Subscription Agreement and page 12 of the draft
Registration Rights Agreement attached as Schedule “E” to the Subscription
Agreement.. 

2.           If
you are purchasing less than CDN$150,000, complete and sign the Accredited
Investor Status Certificate which is attached as Schedule “A” to the
Subscription Agreement. 

3.          
If you are not an individual (that is, the Subscriber is a corporation, trust,
portfolio manager or other entity that is purchasing more than 5% of the
outstanding Common Shares of the Corporation, is currently an Insider, will
become an Insider upon completion of the Offering or is a member of the Pro
Group), then complete and sign the “Corporate Placee Registration Form” (Form
4C) which is attached as Schedule “C” to the Subscription Agreement. If you have
previously submitted this form to the TSX Venture Exchange and there have been
no changes to its content then please check the box to that effect on page 4.

U.S. SUBSCRIBERS ONLY: 

Complete items 1, 2 and 3 above, as applicable. Also complete
and sign the U.S. Accredited Investor Status Certificate which is attached as
Schedule “B” to the Subscription Agreement. 

THE SECURITIES SUBSCRIBED FOR HEREIN WILL BE SUBJECT TO A
HOLD PERIOD UNDER THE APPLICABLE SECURITIES LAWS OF THE SELLING JURISDICTIONS IN
CANADA OF FOUR MONTHS AND ONE DAY FROM THE CLOSING DATE (AS DEFINED IN THIS
SUBSCRIPTION AGREEMENT) AND THE CERTIFICATES EVIDENCING THE SECURITIES WILL BEAR
A LEGEND TO THAT EFFECT, AS APPLICABLE. CONSEQUENTLY, THE SECURITIES MAY ONLY BE
RESOLD DURING SUCH PERIOD IN ACCORDANCE WITH APPROPRIATE STATUTORY EXEMPTIONS
FROM THE PROSPECTUS REQUIREMENTS OF THE APPLICABLE SECURITIES LAWS OF THE
SELLING JURISDICTIONS IN CANADA OR IF APPROPRIATE CONSENTS OR DISCRETIONARY
ORDERS HAVE BEEN OBTAINED. THE SUBSCRIBER IS ADVISED TO CONSULT ITS OWN LEGAL
ADVISORS IN THIS REGARD. 

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE UNITED
STATES 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 “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. IN ADDITION, HEDGING
TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE
WITH THE 1933 ACT. 

SUBSCRIPTION FOR UNITS 

	TO: 	
      COUNTERPATH CORPORATION (the “Corporation”)
      

	  	
      

	AND TO: 	
      NATIONAL BANK FINANCIAL INC. and CANACCORD GENUITY
      CORP. (the “Agents”) 

	  	
      

	AND TO: 	
      NBF SECURITIES (USA) CORP. and CANACCORD
      GENUITY INC. (the “U.S. Affiliates”) 

            
             The
undersigned (the “Subscriber”) hereby irrevocably subscribes for and
agrees to purchase the number of units (the “Units”) of the Corporation
set forth below at a price of CDN$1.75 per Unit on the terms and conditions set
out herein and in the applicable schedules attached hereto. Each Unit shall
consist of one (1) common share in the capital of the Corporation (each a
“Share”) and one-half (1⁄2) of one non-transferable common share purchase
warrant (each whole warrant, a “Warrant”). Each whole Warrant shall
entitle the holder to purchase one common share in the capital of the
Corporation (a “Warrant Share”) at a price of CDN$2.25 per Warrant Share
for a period of two years following the Closing Date (as defined below). 

                      
   The Units are immediately severable into their constituent
Shares and Warrants upon issuance. The Units, Shares, Warrants and Warrant
Shares are herein collectively referred to as the “Securities.” The Units
are part of an offering (the “Offering”) of up to 5,714,285 Units for
gross aggregate proceeds of up to CDN$10,000,000. 

- 2 - 

	Subscriber Information 	 	Units to be Purchased 
	 	 	 
	(Name of Subscriber) 	 	Number of
    Units:                                 x CDN$1.75 
	 	 	 
	Account Reference (if applicable): ____________________	 	 
	 	 	Aggregate Subscription Price:
      _______________________
	X 	 	                                                         
      (the “Subscription Price” 
	(Signature of Subscriber – if the Subscriber is an Individual)    	 	 
	 	 	 
	X 	 	 
	(Signature of Authorized Signatory – if the Subscriber is not
      an Individual) 	 	Please complete if purchasing as agent
      or trustee for a principal (beneficial purchaser) (a “Disclosed
      Principal”) and not purchasing as trustee or agent for accounts
      fully managed by it. 
	 	 
	 	 
	(Name and Title of Authorized Signatory – if the Subscriber is
      not an 	 	 
	Individual) 	 	 
	 	 	(Name of Disclosed Principal) 
	(Subscriber’s Address, including city and Postal Code) 	 	 
	 	 	(Address of Disclosed Principal) 
	 	 	 
	 	 	
	(Telephone
      Number)                                                   
      (Email Address) 	 	(Account Reference, if
applicable)  
	 	 	 
	 	 	 
	Register the Shares, Warrants and Warrant Shares as set
      forth below: 	 	Deliver the Shares, Warrants and Warrant
      Shares as set forth below: 
	 	 	 
	 	 	 
	(Name to Appear on Share and Warrant Certificate) 	 	(Attention - Name) 
	 	 	 
	 	 	 
	(Account Reference, if applicable) 	 	(Account Reference, if applicable) 
	 	 	 
	 	 	(Address, including Postal Code) 
	(Address, including Postal Code) 	 	 
	 	 	(Telephone Number) 

*   *   *   * 

- 3 - 

Note: The Subscriber must either be:

	(a) 	
      purchasing the securities offered hereunder as principal
      or

	 	 	 
	(b) 	
      deemed to be purchasing such securities as principal, by
      virtue of being:

	 	 	 
		(i) 	
      a trust company or trust corporation described in
      paragraph (16) of the definition of “accredited investor” in Schedule “A”
      (other than a trust company or trust corporation registered under the laws
      of Prince Edward Island that is not registered or authorized under the
      Trust and Loan Companies Act (Canada) or under comparable legislation in
      another jurisdiction of Canada) (and, if a U.S. Person, a trust as
      described in Schedule “B”); or

	 	 	 
		(ii) 	
      a person described in paragraph (17) of the definition of
      “accredited investor” in Schedule “A”.

Present Ownership of Securities 

The Subscriber either [check appropriate box]:

	[  ]	
      beneficially owns NO common shares of the
      Corporation (“Common Shares”) or securities convertible into
      Common Shares; or 

	 	
       

	[  ]	
      beneficially owns Common Shares which includes Common
      Shares and/or convertible securities entitling the Subscriber to acquire
      an additional Common Shares. 

Insider Status 

The Subscriber either [check appropriate box]:

	[  ]	is an “Insider” of the
      Corporation as defined in the Policies of the TSX Venture Exchange (the
      “Exchange”); or 
	 	 
	[  ]	is not an Insider of the
      Corporation. 

“Insider” means: 

	 	(a) 	
      a director or senior officer of the
Corporation;

	 	 	 
	 	(b) 	
      a director or senior officer of a company that is an
      Insider or subsidiary of the Corporation; and

	 	 	 
	 	(c) 	
      a person that beneficially owns or controls, directly or
      indirectly, Common Shares carrying more than 10% of the voting rights
      attached to all outstanding Common Shares.

Member of “Pro Group” 

The Subscriber either [check appropriate box]:

	[  ]	is a member of the “Pro Group” as
      defined in the Policies of the Exchange and below; or 
	 	 
	[  ]	is not a Member of the Pro Group.
    

The definition of “Pro Group” is as follows: 

	 	(a) 	
      Subject to subparagraphs (b), (c) and (d), “Pro Group”
      will include, either individually or as a
group:

- 4 - 

	 	(i) 	
      the member (i.e. a member of the Exchange under the
      applicable Exchange requirements) (the “Member”);

	 	 	 
	 	(ii) 	
      employees of the Member;

	 	 	 
	 	(iii) 	
      partners, officers and directors of the Member;

	 	 	 
	 	(iv) 	
      Affiliates (as defined in applicable Exchange policies)
      of the Member; and

	 	 	 
	 	(v) 	
      Associates (as defined in applicable Exchange policies)
      of any parties referred to in subparagraphs (i) through
  (iv).

	 	(b) 	
      The Exchange may, in its discretion, include a person or
      party in the Pro Group for the purposes of a particular calculation where
      the Exchange determines that the person is not acting at arm’s length to
      the Member.

	 	 	 
	 	(c) 	
      The Exchange may, in its discretion, exclude a person
      from the Pro Group for the purposes of a particular calculation where the
      Exchange determines that the person is acting at arm’s length to the
      Member.

	 	 	 
	 	(d) 	
      The Exchange may deem a person who would otherwise be
      included in the Pro Group pursuant to subparagraph (a) to be excluded from
      the Pro Group where the Exchange determines
that:

	 	(i) 	
      the person is an affiliate or associate of the Member
      acting at arm’s length of the Member;

	 	 	 
	 	(ii) 	
      the associate or affiliate has a separate corporate and
      reporting structure;

	 	 	 
	 	(iii) 	
      there are sufficient controls on information flowing
      between the Member and the associate or affiliate; and

	 	 	 
	 	(iv) 	
      the member maintains a list of such excluded
    persons.

Corporate Placee Form 

The Subscriber, if a corporation, trust, portfolio manager or
  other entity that is purchasing more than 5% of the outstanding Common Shares
  of the Corporation, is currently an Insider, will become an Insider upon completion
  of the Offering or is a member of the Pro Group, either [check appropriate
  box]:

	[  ]	has a current Corporate Placee
      Registration Form on file with the Exchange; or 
	 	 
	[  ]	has completed and returned with
      this Subscription Agreement a duly executed Corporate Placee Registration
      Form (Schedule “C” to this Subscription Agreement). 

THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK 

- 5 - 

This subscription is accepted by the Corporation this
_______day of __________________, 2011. 

COUNTERPATH CORPORATION 

Per:
______________________________________
          
Authorized Signatory 

THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK 

- 6 - 

1.        Defined Terms.

In addition to the terms defined throughout this Subscription
Agreement, the following capitalized terms used in this Subscription Agreement
have the following meanings: 

“1933 Act” means the United States Securities Act of
1933, as amended; 

“1934 Act” means the United States Securities Exchange
Act of 1934, as amended; 

“Accredited Investor Status Certificate” means the
accredited investor status certificate in the form attached hereto as Schedule
“A”; 

“Agency Agreement” means the agency agreement to be
entered into between the Corporation and the Agents; 

“Agents” has the meaning ascribed thereto on
  page 1 of this Subscription Agreement;

“Agents’ Warrants” has the meaning ascribed thereto in
Section 13 of this Subscription Agreement; 

“Agents’ Warrant Shares” has the meaning ascribed
thereto in Section 13 of this Subscription Agreement; 

“beneficial purchaser” means a person for whom the
Subscriber is acting in purchasing the Units who will be the beneficial owner of
the Securities within the meaning attributed to it by Rule 13d-3 adopted by the
SEC under the 1934 Act; 

“beneficial ownership” has the meaning attributed to it
by Rule 13d-3 adopted by the SEC under the 1934 Act; 

“BC Act” means the Securities Act (British
  Columbia);

“Business Day” means any day except Saturday, Sunday or
a statutory holiday in Vancouver, British Columbia or Toronto, Ontario; 

“Closing” means the closing on the Closing Date of the
transaction of purchase and sale of the Units as contemplated by this
Subscription Agreement and the Agency Agreement; 

“Closing Date” means June 14, 2011, or such later date
as may be agreed to by the Agents and the Corporation; 

“Closing Time” means 8:00 a.m. (Vancouver time) or such
other time as the Agents and the Corporation may agree; 

“Commissions” has the meaning ascribed thereto
  in Section 20 of this Subscription Agreement;

“Common Share” has the meaning ascribed thereto on page
3 of this Subscription Agreement; 

“Corporation” has the meaning ascribed thereto on page 1
of this Subscription Agreement; 

“EDGAR” means the SEC’s electronic data
  gathering and retrieval system;

“Exchange” has the meaning ascribed thereto on page 3 of
this Subscription Agreement; 

“International Jurisdiction” has the meaning ascribed
thereto in Section 7(f)(i) of this Subscription Agreement; 

“NI 45-106” means National Instrument 45-106 –
Prospectus and Registration Exemptions; 

“Offering” has the meaning ascribed thereto
  on page 1 of this Subscription Agreement;

- 7 - 

“OTCBB” means the OTC Bulletin Board;

“PCMLTFA” has the meaning ascribed thereto in Section 5
of this Subscription Agreement; 

“Public Record” means the registration statements,
prospectuses, annual reports, quarterly reports, proxy statements, current
reports, press releases and any other documents or reports filed by the
Corporation on SEDAR or with the SEC on EDGAR during the 18 months preceding the
date hereof; 

“Registration Rights Agreement” means the registration
rights agreement that the Corporation will enter into at the Closing with all
subscribers in the Offering, including the Subscriber, substantially in the form
attached as Schedule “E” to this Subscription Agreement, pursuant to which the
Corporation will agree to file, make effective and maintain the effectiveness of
the Registration Statement on the terms and conditions set forth in such
agreement; 

“Registration Statement” means a registration statement
on Form S-1, or a successor form under the 1933 Act to register for resale the
Shares and the Warrant Shares; 

“Regulation D” means Regulation D adopted by the SEC
under the 1933 Act; 

“Regulation S” means Regulation S adopted by the SEC
under the 1933 Act;

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

“Securities” has the meaning ascribed thereto on page 1
of this Subscription Agreement; 

“Securities Laws” means the securities laws,
regulations, rules, rulings and orders and the blanket rulings and policies and
written interpretations of, and multilateral or national instruments adopted by,
the Securities Regulators and the policies and rules of any applicable stock
exchange or quotation or stock reporting system, including the Exchange and the
OTCBB; 

“Securities Regulators” means the securities commissions
or other securities regulatory authorities of all of the Selling Jurisdictions
or the relevant Selling Jurisdiction as the context so requires; 

“SEDAR” means the System for Electronic Document
Analysis and Retrieval operated by CDS, Inc.; 

“Selling Jurisdictions” means all of the Provinces of
Canada, the United States, the state of the United States in which the
Subscriber is resident, if applicable, and any other jurisdictions which are
agreed to by the Corporation and the Agents; and 

“Selling Jurisdiction” means, in the case of any
Subscriber, the jurisdiction(s) in which such Subscriber is resident; 

“Shares” has the meaning ascribed thereto on page 1 of
this Subscription Agreement; 

“Subscriber” has the meaning ascribed thereto on page 1
of this Subscription Agreement;

 “Subscription Agreement” means this
  subscription agreement and the schedules attached hereto; 

“Subscription Price” has the meaning ascribed thereto on
page 1 of this Subscription Agreement; 

”Units” has the meaning ascribed thereto on page 1 of
this Subscription Agreement; 

“United States” means the United States, as that term is
defined in Rule 902 of Regulation S; 

“U.S. Accredited Investor” means an “accredited
investor” as defined in Rule 501 of Regulation D; 

“U.S. Accredited Investor Status Certificate” means the
accredited investor status certificate in the form attached hereto as Schedule
“B”; 

- 8 - 

“U.S. Affiliates” has the meaning ascribed thereto on
page 1 of this Subscription Agreement; 

“U.S. Person” means a U.S. person as that term is
defined in Rule 902 of Regulation S; 

“U.S. Subscriber” means (a) any person purchasing the
Units in the United States, (b) any U.S. Person, (c) any person purchasing the
Units on behalf of any person in the United States or any U.S. Person, (d) any
person that receives or received an offer for the Units while in the United
States, or (e) any person that is in the United States at the time the buy order
was made or this Subscription Agreement was executed;

“Warrant” has the meaning ascribed thereto on page 1 of
this Subscription Agreement; and 

“Warrant Share” has the meaning ascribed thereto on page
1 of this Subscription Agreement. 

2.        Delivery and
Payment. The Subscriber agrees to deliver by no later than 1:00 p.m.
(Vancouver time) on June 7, 2011, to National Bank Financial, Attn: Nathalie
Coriat (nathalie.coriat@nbf.ca), as applicable, the following: 

	 	(a) 	
      a completed and duly executed copy of this Subscription
      Agreement and the Registration Rights Agreement;

	 	 	 
	 	(b) 	
      if the Subscriber is purchasing less than CDN$150,000, a
      completed and duly executed copy of the Accredited Investor Status
      Certificate which is attached hereto as Schedule “A”;

	 	 	 
	 	(c) 	
      if the Subscriber is a U.S. Subscriber, a completed and
      duly executed copy of the U.S. Accredited Investor Status Certificate
      which is attached hereto as Schedule “B”;

	 	 	 
	 	(d) 	
      if applicable, a completed and duly executed copy of the
      Corporate Placee Registration Form (Form 4C) which is attached hereto as
      Schedule “C”;

	 	 	 
	 	(e) 	
      all other documents as may be required by the Securities
      Laws or reasonably requested by the Agents, the U.S. Affiliates or the
      Corporation; and

	 	 	 
	 	(f) 	
      unless other arrangements acceptable to the Agents are
      made, a certified cheque, bank draft or other form of payment in
      immediately available funds payable to either of the Agents or such other
      person as the Agents shall direct the Subscriber, representing the
      Subscription Price payable by the Subscriber for the Units set out on the
      second page of this Subscription Agreement.

3.       
Closing. The Closing will be held at the offices of the
Corporation’s legal counsel, Clark Wilson LLP, at 885 West Georgia Street, Suite
800, Vancouver, British Columbia at the Closing Time on the Closing Date, all in
accordance with this Subscription Agreement and the Agency Agreement. If, on or
prior to the Closing Time, the terms and conditions contained in this
Subscription Agreement and the Agency Agreement have been complied with to the
satisfaction of the Agents, or waived by the Agents, the Agents shall deliver to
the Corporation all completed Subscription Agreements and payment of the
aggregate Subscription Price for all of the Units sold pursuant to the Agency
Agreement against delivery by the Corporation, of certificates representing the
Shares and Warrants comprising the Units and such other documentation as may be
required pursuant to the Subscription Agreement and the Agency Agreement. For
greater certainty, delivery of the certificates representing the Shares and
Warrants shall be made by the Corporation to the Agents in the city of
Vancouver, British Columbia at the Closing Time. If, prior to the Closing Time,
the terms and conditions contained in this Subscription Agreement (other than
delivery by the Corporation to the Subscriber of certificates representing the
Shares and Warrants comprising the Units) and the Agency Agreement have not been
complied with to the satisfaction of the Agents, or waived by them, the Agents,
the Corporation and the Subscriber will have no further obligations under this
Subscription Agreement. 

            The
Subscriber acknowledges that the certificates representing Shares and Warrants
will be available for delivery upon Closing provided that the Subscriber has
satisfied the requirements of Section 2 hereof and the Corporation has accepted
this Subscription Agreement. 

- 9 - 

            The
Subscriber acknowledges and agrees that Clark Wilson LLP has acted as counsel
only to the Corporation and Cassels Brock & Blackwell LLP and
SecuritiesLawUSA, PC have acted as counsel only to the Agents and the U.S.
Affiliates and none are protecting the rights and interests of the Subscriber.
The Subscriber acknowledges and agrees that the Corporation, Clark Wilson LLP,
Cassels Brock & Blackwell LLP, SecuritiesLawUSA, PC, the Agents and the U.S.
Affiliates have given the Subscriber the opportunity to seek, and have
recommended that the Subscriber obtain, independent legal advice with respect to
the subject matter of this Subscription Agreement and, further, the Subscriber
hereby represents and warrants to the Corporation, Clark Wilson LLP, Cassels
Brock & Blackwell LLP, SecuritiesLawUSA, PC, the Agents and the U.S.
Affiliates that the Subscriber has sought independent legal advice or it hereby
waives such advice. 

4.        Certain
Subscriber Acknowledgements. The Subscriber acknowledges and agrees (on
its own behalf and, if applicable, on behalf of each beneficial purchaser for
whom the Subscriber is contracting hereunder) with the Corporation, the Agents
and the U.S. Affiliates (which acknowledgements and agreements shall survive the
Closing) that: 

	 	(a) 	
      no securities commission, agency, governmental authority,
      regulatory body, stock exchange or other entity has made any finding or
      determination as to the merit of an investment in, nor have any such
      agencies or governmental authorities, regulatory bodies, stock exchanges
      or other entities made any recommendation or endorsement with respect to,
      the Securities;

	 	 	 
	 	(b) 	
      the offer, sale and delivery of the Units is conditional
      upon such being exempt from the prospectus requirements and any
      requirement to deliver an offering memorandum in connection with the
      distribution of the Units under the Securities Laws or upon the issuance
      of such orders, consents or approvals as may be required to permit such
      sale without a prospectus;

	 	 	 
	 	(c) 	
      the Securities are subject to resale restrictions under
      the Securities Laws and are otherwise subject to all of the terms,
      conditions and provisions of the Agency Agreement and the Subscriber (and,
      if applicable, others for whom it is contracting hereunder) will comply
      with all relevant Securities Laws concerning any resale of the Securities
      and will consult with its legal advisors with respect to complying with
      all restrictions applying to such resale;

	 	 	 
	 	(d) 	
      the financial statements of the Corporation have been
      prepared in accordance with generally accepted accounting principles of
      the United States, which differ in some respects from generally accepted
      accounting principles of Canada, and thus may not be comparable to
      financial statements of Canadian companies;

	 	 	 
	 	(e) 	
      no prospectus or offering memorandum within the meaning
      of the Securities Laws has been delivered to or summarized for or seen by
      the Subscriber (and, if applicable, others for whom it is contracting
      hereunder) in connection with the Offering and the Subscriber (and, if
      applicable, others for whom it is contracting hereunder) is not aware of
      any prospectus or offering memorandum having been prepared by the
      Corporation;

	 	 	 
	 	(f) 	
      in purchasing the Units, the Subscriber (and, if
      applicable, others for whom it is contracting hereunder) has relied solely
      upon the Public Record relating to the Corporation and this Subscription
      Agreement, and not upon any verbal or written representation as to any
      fact or otherwise made by or on behalf of the Corporation, the Agents, the
      U.S. Affiliates or any employee, agent or affiliate thereof or any other
      person associated therewith. The Agents, the U.S. Affiliates and their
      respective directors, officers, employees, agents and representatives, and
      the Corporation’s counsel, assume no responsibility or liability of any
      nature whatsoever for the accuracy or adequacy of the Public Record upon
      which the Subscriber’s investment decision has been made or as to whether
      all information concerning the Corporation required to be disclosed by the
      Corporation has been disclosed. The Subscriber, on its own behalf and on
      behalf of others for whom the Subscriber is contracting hereunder, has
      acknowledged that the decision to purchase the Units was made on the basis
      of the Public Record and this Subscription Agreement and the Agents’
      counsel and the Corporation’s counsel are entitled to the benefit of this
      section;

- 10 - 

	 	(g) 	
      the Units are being offered for sale on a “private
      placement” basis;

	 	 	 	 
	 	(h) 	
      none of the Securities have been registered under the
      1933 Act or the securities laws of any state, and the Securities may not
      be offered or sold, directly or indirectly, in the United States or to, or
      for the account or benefit of, a U.S. Person or a person in the United
      States unless registered under the 1933 Act and the securities laws of all
      applicable states or unless an exemption from such registration
      requirements is available;

	 	 	 	 
	 	(i) 	
      hedging transactions involving the Securities may not be
      conducted unless such transactions are in compliance with the provisions
      of the 1933 Act and in each case only in accordance with applicable
      Securities Laws;

	 	 	 	 
	 	(j) 	
      in accepting this Subscription Agreement, the
      Corporation, the Agents and the U.S. Affiliates are relying upon the
      representations and warranties and acknowledgements of the Subscriber set
      out herein including, without limitation, in connection with determining
      the eligibility of the Subscriber or, if applicable, the eligibility of
      others on whose behalf the Subscriber is contracting hereunder to purchase
      Units under the Securities Laws. The Subscriber hereby agrees to notify
      the Corporation, the Agents and the U.S. Affiliates immediately of any
      change in any representation, warranty, covenant or other information
      relating to the Subscriber or the beneficial purchaser contained in this
      Subscription Agreement which takes place prior to Closing;

	 	 	 	 
	 	(k) 	
      no documents in connection with the sale of the
      Securities hereunder have been reviewed by any Securities
    Regulators;

	 	 	 	 
	 	(l) 	
      there is no government or other insurance covering the
      Securities;

	 	 	 	 
	 	(m) 	
      there are risks associated with the purchase of the
      Securities;

	 	 	 	 
	 	(n) 	
      the Subscriber will indemnify and hold harmless the
      Corporation, the Agents and the U.S. Affiliates and, where applicable, its
      directors, officers, employees, agents, advisors and shareholders, from
      and against any and all loss, liability, claim, damage and expense
      whatsoever (including, but not limited to, any and all fees, costs and
      expenses whatsoever reasonably incurred in investigating, preparing or
      defending against any claim, lawsuit, administrative proceeding or
      investigation whether commenced or threatened) arising out of or based
      upon any representation or warranty of the Subscriber contained in this
      Subscription Agreement or in any document furnished by the Subscriber to
      the Corporation in connection herewith being untrue in any material
      respect or any breach or failure by the Subscriber to comply with any
      covenant or agreement made by the Subscriber to the Corporation in
      connection therewith;

	 	 	 	 
	 	(o) 	
      the Subscriber has been advised to consult the
      Subscriber’s own legal, tax and other advisors with respect to the merits
      and risks of an investment in the Securities and with respect to
      applicable resale restrictions, and it is solely responsible (and the
      Corporation is not in any way responsible) for compliance with:

	 	 	 	 
	 		(i) 	
      any applicable laws of the jurisdiction in which the
      Subscriber is resident in connection with the distribution of the
      Securities hereunder; and

	 	 	 	 
	 		(ii) 	
      applicable resale restrictions;

	 	 	 	 
	 	(p) 	
      the statutory and regulatory basis for the exemption
      claimed for the offer and sale of the Securities, although in technical
      compliance with Regulation S, would not be available if the Offering is
      part of a plan or scheme to evade the registration provisions of the 1933
      Act;

- 11 - 

	 	(q) 	
      the Securities are subject to the terms, conditions and
      provisions of this Subscription Agreement (including the schedules
      hereto), the constating documents of the Corporation and the Agency
      Agreement;

	 	 	 	 
	 	(r) 	
      the Warrants are non-transferable, and the certificates
      evidencing the Shares and Warrants will bear a legend, and the Warrant
      Shares may bear a legend, regarding restrictions on transfer as required
      pursuant to applicable Securities Laws as set out in Section 8 of this
      Subscription Agreement;

	 	 	 	 
	 	(s) 	
      the Subscriber consents to the Corporation making a
      notation on its records or giving instructions to any transfer agent of
      the Securities in order to implement the restrictions on transfer set
      forth and described herein and the Corporation will refuse to register any
      transfer of the Securities not made in accordance with Regulation S,
      pursuant to an effective registration statement under the 1933 Act or
      pursuant to an exemption from the registration requirements of the 1933
      Act and any applicable state or other law;

	 	 	 	 
	 	(t) 	
      the Agents will each receive a commission (including
      Agents’ Warrants) with respect to this Offering as set out in Section 13
      of this Subscription Agreement;

	 	 	 	 
	 	(u) 	
      the Corporation has advised the Subscriber, through the
      Agents or the U.S. Affiliates, that the Corporation is relying on an
      exemption from the requirements to provide the Subscriber with a
      prospectus under the Securities Laws or other applicable securities
      legislation and, as a consequence of acquiring Units pursuant to this
      exemption: (i) certain protections, rights and remedies provided by the
      Securities Laws or other applicable securities legislation including
      statutory rights of rescission or damages, will not be available to the
      Subscriber, (ii) the common law may not provide the Subscriber with an
      adequate remedy in the event that it suffers investment losses in
      connection with securities acquired in the Offering, (iii) the Subscriber
      may not receive information that would otherwise be required to be given
      under the Securities Laws, and (iv) the Corporation is relieved from
      certain obligations that would otherwise apply under the Securities
      Laws;

	 	 	 	 
	 	(v) 	
      no person has made to the Subscriber any written or oral
      representations:

	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase the
      Subscriber’s Securities;

	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of the
      Subscriber’s Securities; or

	 	 	 	 
	 		(iii) 	
      as to the future price or value of any of the
      Subscriber’s Securities; and

	 	 	 	 
	 	(w) 	
      the Subscriber acknowledges that the Corporation, at the
      Closing, will enter into the Registration Rights Agreement with the
      Subscriber and the other subscribers in the Offering; that the Corporation
      will undertake in the Registration Rights Agreement to use best
      commercially reasonable efforts to file and make effective the
      Registration Statement within four months after the Closing Date and
      thereafter to keep the Registration Statement effective in accordance with
      the terms and conditions of the Registration Rights Agreement; and that,
      when the Registration Statement is effective and available for use, the
      Subscriber will be permitted to resell without further restriction under
      the 1933 Act the Shares and Warrant Shares acquired by the Subscriber in
      the Offering.

5.        Conditions
of Closing. It is a condition of Closing that (i) all documents required
to be completed and signed in accordance with Section 2 hereof be received prior
to the Closing Date, (ii) the Corporation will have obtained all necessary
approvals and consents, including regulatory approvals, (iii) the issue and sale
of the Units be exempt from the requirement to file a prospectus and any
requirement to deliver an offering memorandum under applicable Securities Laws
relating to the sale of the Units, or the Corporation will have received such
orders, consents or approvals as may be required to permit such sale without the
requirement to file a prospectus or deliver an offering memorandum; and (iv) the Corporation will have
obtained conditional approval of the Exchange for the listing of the Shares, the
Warrant Shares and the Agents’ Warrant Shares. 

- 12 - 

The Subscriber acknowledges and agrees that the Agents and/or
the Corporation may be required to provide the Securities Regulators or other
authorities pursuant to the Proceeds of Crime (Money Laundering) and
Terrorist Financing Act (Canada) (the “PCMLTFA”) with a list setting
forth the identities of the beneficial purchasers of the Units. Notwithstanding
that the Subscriber may be purchasing Units as agent on behalf of an undisclosed
principal, the Subscriber agrees to provide, on request, particulars as to the
identity of such undisclosed principal as may be required by the Agents, the
U.S. Affiliates and/or the Corporation in order to comply with the foregoing.

6.        Acceptance
of Offer to Purchase. The acceptance by the Corporation of the
Subscriber’s irrevocable offer to purchase the Units shall constitute an
agreement by the Corporation with the Subscriber that the Subscriber shall have,
in respect of such Units, the benefits of the representations, warranties and
covenants made by the Corporation, and the conditions of Closing not waived by
the Agents, contained in the Agency Agreement. Such representations, warranties
and covenants shall form an integral part of this Subscription Agreement and
shall survive the Closing and shall continue in full force and effect for the
benefit of the Subscriber for a period of thirty (30) months after the Closing
in accordance with the Agency Agreement. 

7.       
Representations, Warranties, Acknowledgements and Covenants.
The Subscriber hereby represents and warrants to, and covenants with (on its
own behalf and, if applicable, on behalf of those for whom the Subscriber is
contracting hereunder) the Corporation, the Agents and the U.S. Affiliates (and
acknowledges that the Corporation and the Agents are relying on them), which
representations, warranties and covenants shall survive the Closing, that as at
the execution date of this Subscription Agreement and the Closing Date: 

	 	(a) 	
      the Subscriber and any beneficial purchaser for whom it
      is acting is resident in, or if not an individual, has its head office in,
      the jurisdiction set out on the execution page of this Subscription
      Agreement, such address was not created and is not used solely for the
      purpose of acquiring the Securities and the Subscriber was solicited to
      purchase in such jurisdiction;

	 	 	 
	 	(b) 	
      the Subscriber complies with one of the
  following:

	 	(i) 	
      the Subscriber is an “accredited investor” within the
      meaning of NI 45-106 and:

	 	A. 	
      is either purchasing the Securities (I) as principal and
      not for the benefit of any other person, or is deemed under NI 45-106 to
      be purchasing the Securities as principal, or (II) as agent for a
      beneficial purchaser disclosed in this Subscription Agreement, and is an
      agent or trustee with proper authority to execute all documents required
      in connection with the purchase of the Securities on behalf of such
      disclosed beneficial purchaser and such disclosed beneficial purchaser for
      whom the Subscriber is contracting hereunder is purchasing as principal
      and not for the benefit of any other person, or is deemed under NI 45- 106
      to be purchasing the Securities as principal, and such disclosed
      beneficial purchaser is an “accredited investor” within the meaning of NI
      45-106;

	 	 	 
	 	B. 	
      if the Subscriber is, or the beneficial purchaser for
      whom the Subscriber is contracting hereunder is, as the case may be, a
      person, other than an individual or investment fund, that has net assets
      of at least CDN$5,000,000, the Subscriber was not, or the beneficial
      purchaser for whom the Subscriber is contracting hereunder was not, as the
      case may be, created or used solely to purchase or hold securities as an
      accredited investor; and

	 	 	 
	 	C. 	
      the Subscriber has concurrently executed and delivered a
      certificate in the form attached as Schedule “A” hereto;
  or

- 13 - 

	 	(ii) 	
      the Subscriber is purchasing as principal and has
      purchased that number of Units having an acquisition cost to the
      Subscriber of not less than CDN$150,000 to be paid in cash on the Closing
      Date;

	 	(c) 	
      the Subscriber is not a person created, or used solely,
      to purchase or hold the Units in order to comply with an exemption from
      the prospectus requirements of Securities Laws and if the Subscriber is
      not an individual, it pre-existed the Offering and has a bona fide purpose
      other than investment in the Units;

	 	 	 	 
	 	(d) 	
      the Subscriber will only offer, sell or otherwise
      transfer the Securities pursuant to an effective registration statement
      under the 1933 Act or pursuant to an exemption from the registration
      requirements imposed by the 1933 Act and in compliance with applicable
      state Securities Laws (and, in each case where there is no effective
      registration statement, only if an opinion of counsel of recognized
      standing reasonably satisfactory to the Corporation has been provided to
      the Corporation to that effect, if applicable);

	 	 	 	 
	 	(e) 	
      the Subscriber acknowledges and agrees that the
      Securities will be “restricted securities” within the meaning of Rule
      144(a)(3) under the 1933 Act and will remain “restricted securities”
      notwithstanding any resale within or outside the United States unless the
      sale is completed pursuant to an effective registration statement under
      the 1933 Act or is made in compliance with the exemption from registration
      provided by Rule 144 promulgated under the 1933 Act;

	 	 	 	 
	 	(f) 	
      the Subscriber has no contract, undertaking, agreement or
      arrangement with any person to sell, transfer or pledge to such person, or
      anyone else, the Securities or any part thereof, or any interest therein,
      and has no present plans to enter into any such contract, undertaking,
      agreement or arrangement;

	 	 	 	 
	 	(g) 	
      if the Subscriber is not a U.S. Subscriber and unless the
      Subscriber has made the representations set forth below in Section 7(e)
      hereof and has completed Schedule “B” attached hereto:

	 	 	 	 
	 		(i) 	
      the Subscriber is not a person in the United States or a
      U.S. Person and is not acquiring the Securities for the account or benefit
      of any person in the United States or any U.S. Person;

	 	 	 	 
	 		(ii) 	
      the Subscriber did not receive an offer to buy or sell
      the Securities in the United States;

	 	 	 	 
	 		(iii) 	
      at the time the buy order for the Securities was
      originated, the Subscriber was outside the United States and this
      Subscription Agreement was not executed or delivered in the United States;
      and

	 	 	 	 
	 		(iv) 	
      the Subscriber has not acquired the Securities as a
      result of, and will not itself engage in, any “directed selling efforts”
      (as defined in Regulation S under the 1933 Act) in the United States in
      respect of any of the Securities, which would include any activities
      undertaken for the purpose of, or that could reasonably be expected to
      have the effect of, conditioning the market in the United States for the
      resale of any of the Securities; provided, however, that the Subscriber
      may sell or otherwise dispose of any of the Shares or the Warrant Shares
      pursuant to registration of any of the Shares or the Warrant Shares
      pursuant to the 1933 Act and any applicable securities laws or under an
      exemption from such registration requirements and as otherwise provided
      herein;

	 	 	 	 
	 		(v) 	
      the Subscriber understands and agrees that offers and
      sales of any of the Securities prior to the expiration of the period
      specified in Regulation S (such period hereinafter referred to as the
      “Distribution Compliance Period”), which Distribution Compliance Period
      is, as at the date of this Subscription Agreement, six months as the class
      of Common Shares is registered under the 1934 Act, shall only be made in
      compliance with the safe harbor provisions set forth in Regulation S,
      pursuant to the registration provisions of the 1933 Act or pursuant to an
      exemption therefrom, and that all offers and sales after the Distribution
      Compliance Period shall be made only in compliance with the registration
      provisions of the 1933 Act or an exemption therefrom and in each case only
      in accordance with applicable Securities Laws and in the case of an offer
      or sale pursuant to an exemption from the registration provisions of the
      1933 Act, the Corporation may require, as a condition of granting its
      consent, a legal opinion of a firm reasonably acceptable to the
      Corporation confirming that the sale is not subject to the registration
  requirements of the 1933 Act;

- 14 - 

	 	(vi) 	
      the Subscriber understands and agrees not to engage in
      any hedging transactions involving any of the Securities unless such
      transactions are in compliance with the provisions of the 1933 Act and in
      each case only in accordance with applicable Securities Laws;

	 	 	 
	 	(vii) 	
      except as otherwise permitted by Regulation S, the
      Subscriber agrees that it will not, during the Distribution Compliance
      Period, act as a distributor (as such term is defined in Regulation S),
      either directly or through any affiliate, or sell, transfer, hypothecate
      or otherwise convey the Securities other than to or for the account or
      benefit of a non-U.S. Person;

	 	(h) 	
      if the Subscriber is a U.S. Subscriber, then:

	 	 	 	 
	 		(i) 	
      the Subscriber understands and acknowledges that the
      Securities have not been registered under the 1933 Act or any state
      securities laws and that the sale of the Units contemplated hereby is
      being made to a limited number of U.S. Accredited Investors in
      transactions not requiring registration under the 1933 Act; accordingly
      the Securities are “restricted securities” within the meaning of Rule
      144(a)(3) under the 1933 Act;

	 	 	 	 
	 		(ii) 	
      the Subscriber acknowledges that the Corporation has not
      registered the offer and sale to the Subscriber of the Securities under
      the 1933 Act and until the Registration Statement (which will register
      resales by the Subscriber of the Shares and Warrant Shares) becomes
      effective, the Subscriber acknowledges that there may be substantial
      restrictions on the transferability of, and that it may not be possible to
      liquidate its investment readily in, the Shares or the Warrant
    Shares;

	 	 	 	 
	 		(iii) 	
      the Subscriber is a U.S. Accredited Investor and
      acknowledges that it is acquiring the Units as an investment for its own
      account or for the account of a U.S. Accredited Investor as to which it
      exercises sole investment discretion and not with a view to any resale,
      distribution or other disposition of the Units in violation of the federal
      or state securities laws of the United States and the Subscriber has
      concurrently executed and delivered a certificate in the form attached as
      Schedule “B” hereto. The Subscriber acknowledges that it will be required
      to confirm its status as a U.S. Accredited Investor and make similar
      representations to those contained in this Section 7(e) at the time of
      exercise of any Warrants;

	 	 	 	 
	 		(iv) 	
      the Subscriber understands and agrees that there may be
      material tax consequences to it of an acquisition, holding or disposition
      of the Securities. The Corporation and the Agents give no opinion and make
      no representation with respect to the tax consequences under United
      States, state, local or foreign tax law of the acquisition, holding or
      disposition of such securities, and the Subscriber acknowledges that it is
      solely responsible for determining the tax consequences of its
      investment;

	 	 	 	 
	 		(v) 	
      the Subscriber understands that none of the Shares or the
      Warrant Shares may be sold or transferred in the United States or to a
      U.S. Person prior to the Registration
Statement becoming effective unless an exemption is available from
      the registration requirements of the 1933 Act and any other applicable
  Securities Laws;

- 15 - 

	 	(vi) 	
      the Subscriber understands that if it decides to offer,
      sell, pledge or otherwise transfer the Shares or the Warrant Shares, such
      securities may be offered, sold or otherwise transferred only: (A) to the
      Corporation; (B) pursuant to an effective registration statement under the
      1933 Act, (C) in accordance with Rule 144 under the 1933 Act, if
      available, and in compliance with applicable state Securities Laws, (D) in
      accordance with the provisions of Regulation S, if available, or (E) in a
      transaction that does not otherwise require registration under the 1933
      Act or any other applicable Securities Laws and in the case of an offer or
      sale pursuant to an exemption from the registration requirements of the
      1933 Act, the Corporation may require, as a condition of granting its
      consent, a legal opinion of a firm reasonably acceptable to the
      Corporation confirming that the sale is not subject to the registration
      requirements of the 1933 Act; and

	 	 	 
	 	(vii) 	
      the purchase of the Units has not been made through or as
      a result of any general solicitation or general advertising (as such terms
      are defined in Rule 502(c) of Regulation D), any press release, or any
      seminar or meeting whose attendees have been invited by general
      solicitation or general advertising and the distribution of the Units has
      not been accompanied by any advertisement, including, without limitation,
      in printed public media, radio, television or telecommunications,
      including electronic display or as part of a general
  solicitation;

	 	(i) 	
      if the Subscriber is resident outside of Canada and the
      United States, the Subscriber:

	 	(i) 	
      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 Subscriber is resident (the
      “International Jurisdiction”) which would apply to the acquisition
      of the Subscriber’s Units;

	 	 	 
	 	(ii) 	
      the Subscriber is purchasing the Units pursuant to
      exemptions from prospectus or equivalent requirements under applicable
      Securities Laws or, if such is not applicable, the Subscriber is permitted
      to purchase the Units under the applicable Securities Laws of the
      Securities Regulators in the International Jurisdiction without the need
      to rely on any exemptions;

	 	 	 
	 	(iii) 	
      the applicable Securities Laws of the authorities in the
      International Jurisdiction do not require the Corporation 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 Subscriber’s Units;
      and

	 	 	 
	 	(iv) 	
      the purchase of the Subscriber’s Units by the Subscriber
      does not trigger:

	 	A. 	
      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

	 	 	 
	 	B. 	
      any continuous disclosure reporting obligation of the
      Corporation in the International Jurisdiction; and

the Subscriber will, if requested by
the Corporation or the Agents, deliver to the Corporation and the Agents a
certificate or opinion of local counsel from the International Jurisdiction
which will confirm the matters referred to in subparagraphs (iii), (iv) and (v)
above to the satisfaction of the Corporation, acting reasonably; 

- 16 - 

	 	(j) 	
      neither the Subscriber nor any party on whose behalf it
      is acting has been created or is being used primarily to permit the
      purchase of the Units without a prospectus in reliance on an exemption
      from the prospectus requirements of applicable securities
    legislation;

	 	 	 
	 	(k) 	
      if the Subscriber is an individual, the Subscriber has
      attained the age of majority and is legally competent to execute this
      Subscription Agreement and to take all actions required pursuant hereto
      and if the Subscriber is not an individual, this Subscription Agreement
      has been duly and validly authorized, executed and delivered by the
      undersigned and if the Subscriber is a corporation, it has been duly
      incorporated and validly exists under the laws of its jurisdiction of
      incorporation or continuance and that this Subscription Agreement has been
      duly and validly authorized by all necessary corporate action;

	 	 	 
	 	(l) 	
      this Subscription Agreement has been duly and validly
      authorized, executed and delivered by and constitutes a legal, valid,
      binding and enforceable obligation of the Subscriber;

	 	 	 
	 	(m) 	
      the entering into of this Subscription Agreement and the
      transactions contemplated hereby will not result in the violation of any
      of the terms and provisions of any law applicable to, or the constating
      documents of, the Subscriber or of any agreement, written or oral, to
      which the Subscriber may be a party or by which it is or may be bound or
      the termination of any such agreement;

	 	 	 
	 	(n) 	
      the Subscriber is capable of assessing and evaluating the
      risks and merits of this investment as a result of the Subscriber’s
      financial, investment or business experience or as a result of advice
      received from a registered person other than the Corporation or an
      affiliate thereof, and the Subscriber or, where it is not purchasing as
      principal, each beneficial purchaser is able to bear the economic loss of
      its investment;

	 	 	 
	 	(o) 	
      the delivery of this Subscription Agreement, the
      acceptance of it by the Corporation and the issuance of the Securities to
      the Subscriber complies with all applicable laws of the Subscriber’s
      jurisdiction of residence or domicile and all other applicable laws and
      will not cause the Corporation to become subject to or comply with any
      disclosure, prospectus or reporting requirements under any such applicable
      laws;

	 	 	 
	 	(p) 	
      the Subscriber is not a “control person” of the
      Corporation as defined in the applicable Securities Laws, will not become
      a “control person” by virtue of this purchase of any of the Securities,
      and does not intend to act in concert with any other person to form a
      control group of the Corporation;

	 	 	 
	 	(q) 	
      neither the Subscriber nor any party on whose behalf it
      is acting is an investment club;

	 	 	 
	 	(r) 	
      the Subscriber (or, if applicable, others for whom it is
      contracting hereunder) has been advised to consult its own legal and tax
      advisors with respect to applicable resale restrictions and tax
      considerations, and it (or, if applicable, others for whom it is
      contracting hereunder) is solely responsible for compliance with
      applicable resale restrictions and applicable tax legislation;

	 	 	 
	 	(s) 	
      the Subscriber has no knowledge of a “material fact” or
      “material change” (as those terms are defined in the applicable Securities
      Laws) in the affairs of the Corporation that has not been generally
      disclosed to the public, save knowledge of this particular
    transaction;

	 	 	 
	 	(t) 	
      the Subscriber will execute and deliver within the
      approved time periods, all documentation as may be required by applicable
      Securities Laws and any other applicable law to permit the purchase of the
      Units on terms herein set forth;

	 	 	 
	 	(u) 	
      if required by applicable Securities Laws or any other
      applicable law, the Subscriber will execute, deliver, file and otherwise
      assist the Corporation and the Agents in filing such reports, undertakings
      and other documents with respect to the issuance of the Units as may be
      required;

- 17 - 

	 	(v) 	
      other than the Agents, the U.S. Affiliates and the
      soliciting dealer group members, if any, there is no person acting or
      purporting to act in connection with the transactions contemplated herein
      who is entitled to any brokerage or finder’s fee and if any person
      establishes a claim that any fee or other compensation is payable in
      connection with this subscription for the Units, the Subscriber covenants
      to indemnify and hold harmless the Corporation, the Agents and the U.S.
      Affiliates with respect thereto and with respect to all costs reasonably
      incurred in the defence thereof;

	 	 	 	 
	 	(w) 	
      the Subscriber (and, if applicable, others for whom it is
      contracting hereunder) is not:

	 	 	 	 
	 		(i) 	
      a licensed broker or dealer in the United
  States,

	 	 	 	 
	 		(ii) 	
      an affiliate of a licensed broker or dealer in the United
      States,

	 	 	 	 
	 		(iii) 	
      acting as an underwriter (as that term is defined in
      Section 2(11) of the 1933 Act) in respect of the Shares, the Warrants or
      the Warrant Shares, or

	 	 	 	 
	 		(iv) 	
      an affiliate of any person that is acting as an
      underwriter (as that term is defined in Section 2(11) of the 1933 Act) in
      respect of the Shares, the Warrants or the Warrant Shares;
  and

	 	(x) 	
      the funds representing the Subscription Price which will
      be advanced by the Subscriber to the Corporation hereunder will not
      represent proceeds of crime for the purposes of PCMLTFA and the Subscriber
      acknowledges that the Corporation may in the future be required by law to
      disclose the Subscriber’s name and other information relating to this
      Subscription Agreement and the Subscriber’s subscription hereunder, on a
      confidential basis, pursuant to the PCMLTFA. To the best of the
      Subscriber’s knowledge (a) none of the subscription funds to be provided
      by the Subscriber (i) have been or will be derived from or related to any
      activity that is deemed criminal under the law of Canada, the United
      States, or any other jurisdiction, or (ii) are being tendered on behalf of
      a person or entity who has not been identified to the Subscriber, and (b)
      the Subscriber shall promptly notify the Corporation if the Subscriber
      discovers that any of such representations ceases to be true, and to
      provide the Corporation with appropriate information in connection
      therewith.

8.       
Legends. 

	 	(a) 	
      Shares:

	 	(i) 	
      the Subscriber acknowledges that, in addition to the
      other legends that may be required by Securities Laws, the certificates
      representing the Shares will bear the following legend mandated by
      Canadian Securities Laws:

	 	 	 
	 		
      CANADIAN LEGEND:

  
    
      
        
          “UNLESS PERMITTED UNDER SECURITIES LEGISLATION,
            THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [INSERT
            THE DATE THAT IS FOUR MONTHS AND ONE DAY AFTER THE CLOSING DATE].”;
          

          and, if applicable, the following Exchange legend:
          

          TSX VENTURE EXCHANGE LEGEND: 

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

        

      

    

  

- 18 - 

  
    
      
        
          provided that subsequent to the expiry of such period,
            the certificate representing such securities may be exchanged for
            a certificate not bearing these legends. 

          The certificates representing the Shares will also
            bear the following legend mandated by the U.S. Securities Laws: 

          U.S. LEGEND: 

          “THESE SECURITIES HAVE NOT BEEN REGISTERED
            WITH THE UNITED STATES 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
            “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. IN ADDITION,
            HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED
            UNLESS IN COMPLIANCE WITH THE 1933 ACT.” 

        

      

    

  

	 	(b) 	
      Warrants:

	 	 	 	 
	 		(i) 	
      the Subscriber acknowledges that, in addition to the
      other legends that may be required by Securities Laws, the certificates
      representing the Warrants will bear the following
legend:

  
    
      
        
          “THESE WARRANTS ARE NOT TRANSFERABLE.”
            

          In addition, the certificates representing the Warrants
            will bear the following legend mandated by the U.S. securities laws:
          

          “THESE WARRANTS AND THE SECURITIES ISSUABLE
            UPON EXERCISE OF THESE WARRANTS HAVE NOT BEEN REGISTERED UNDER THE
            SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), AND,
            ACCORDINGLY, THE SECURITIES ISSUABLE UPON EXERCISE OF THESE WARRANTS
            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 SECURITIES LAWS.
            IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT
            BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. THESE WARRANTS
            MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR PERSON IN
            THE UNITED STATES UNLESS THE SECURITIES ISSUABLE
            UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE 1933
            ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR
            AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED
            STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION
            S UNDER THE 1933 ACT.” 

        

      

    

  

- 19 -

	 	(c) 	
      Warrant Shares:

	 	 	 	 
	 		(i) 	
      the Subscriber acknowledges that, in addition to the
      other legends that may be required by Securities Laws, the certificates
      representing any Warrant Shares issued upon exercise of Warrants on or
      before the date that is four months and one day after the Closing Date
      will bear the following legend mandated by Canadian Securities
  Laws:

  
    
      
        
          CANADIAN LEGEND: 

          “UNLESS PERMITTED UNDER SECURITIES LEGISLATION,
            THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [INSERT
            THE DATE THAT IS FOUR MONTHS AND ONE DAY AFTER THE CLOSING DATE].”
          

          and, if applicable, the following Exchange legend:
          

          TSX VENTURE EXCHANGE LEGEND: 

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

          provided that subsequent to the expiry of such period,
            the certificate representing such securities may be exchanged for
            a certificate not bearing these legends.

          In addition, unless the Registration Statement relating
            to the Warrant Shares has been declared effective and the Subscriber
            executes and delivers to the Corporation such written undertakings
            as the Corporation and its counsel may reasonably require in order
            to ensure full compliance with relevant provisions of the 1933 Act,
            the certificates representing any Warrant Shares issued upon exercise
            of the Warrants will bear the following legend mandated by the U.S.
            securities laws: 

          U.S. LEGEND: 

          “THESE SECURITIES HAVE NOT BEEN REGISTERED
            WITH THE UNITED STATES 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
            “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. IN ADDITION, HEDGING TRANSACTIONS
            INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE
            WITH THE 1933 ACT.” 

        

      

    

  

- 20 - 

9.        Representations,
  Warranties and Covenants of the Corporation. The Corporation hereby
  represents, warrants, covenants and agrees with the Subscriber as follows:

	 	(a) 	
      the Subscriber shall have the benefit of the
      representations and warranties made by the Corporation in the Agency
      Agreement (save and except as waived by the Agents) as if such
      representations and warranties were made by the Corporation in this
      Subscription Agreement;

	 	 	 
	 	(b) 	
      the Corporation will promptly comply with all filing and
      other requirements under all applicable Securities Laws in connection with
      the Offering;

	 	 	 
	 	(c) 	
      on the Closing Date, the Corporation will have taken all
      necessary steps to duly and validly create and issue the Shares and the
      Warrants (and the Warrant Shares issuable upon exercise
thereof);

	 	 	 
	 	(d) 	
      the net proceeds of the Offering will be used to expand
      the Corporation’s sales and marketing efforts, for working capital and
      general corporate purposes; and

	 	 	 
	 	(e) 	
      the Corporation will comply with all of the covenants and
      obligations under the Registration Rights
Agreement.

10.    
 Acknowledgements. The Subscriber acknowledges and agrees
that the foregoing representations and warranties are made by it with the
intention that they may be relied upon by the Corporation, its legal counsel,
the Agents, the U.S. Affiliates and their respective legal counsel in
determining its eligibility or (if applicable) the eligibility of others on
whose behalf it is contracting hereunder to purchase the Units under applicable
Securities Laws. The Subscriber further agrees that by accepting delivery of the
Shares and the Warrants on the Closing Date or by having the Agents accept
delivery of the Shares and the Warrants on its behalf, it shall be representing
and warranting that the foregoing representations and warranties are true and
correct as at the Closing Time with the same force and effect as if they had
been made by the Subscriber at the Closing Time and that they shall survive the
purchase by the Subscriber of the Units and still continue in full force and
effect notwithstanding any subsequent disposition by the Subscriber of the
Securities. The Corporation, the Agents and their respective legal counsels
shall be entitled to rely on the representations and warranties of the
undersigned contained in this Subscription Agreement, and the Subscriber shall
indemnify and hold harmless the Corporation, its legal counsel and the Agents
and their respective legal counsel for any loss, costs or damages any of them
may suffer as a result of any misrepresentations or any breach or failure to
comply with any covenant or agreement herein of the undersigned. 

11.      Indemnity.
  The Corporation shall indemnify, defend and hold the Subscriber (which term
  shall, for the purposes of this section, include the Subscriber or its shareholders,
  managers, partners, directors, officers, members, employees, direct or indirect
  investors, agents and affiliates and assignees and the stockholders, partners,
  directors, members, managers, officers, employees direct or indirect investors
  and agents of such affiliates and assignees) harmless against any and all liabilities,
  loss, cost or damage, together with all reasonable costs and expenses related
  thereto (including reasonable legal and accounting fees and expenses), arising
  from, relating to, or connected with an untrue, inaccurate or breached statement,
  representation, warranty or covenant of the Corporation contained herein or
  in the Agency Agreement, as the case may be. The Corporation undertakes to the
  Subscriber to notify the Agents immediately of any change in any representation,
  warranty or other material information relating to the Corporation set forth
  in this Subscription Agreement which takes place prior to the Closing Time.

12.      Appointment of
Agents. The Subscriber, on its own behalf (or, if applicable, on behalf
of others for whom the Subscriber is contracting hereunder), hereby: 

- 21 - 

	 	(a) 	
      irrevocably authorizes the Agents, in their sole
      discretion, to act as the Subscriber’s representative at the Closing, to
      receive certificates representing the Subscriber’s Shares and Warrants and
      to execute in its name and on its behalf all closing receipts and
      documents required, including the Registration Rights Agreement;

	 	 	 
	 	(b) 	
      irrevocably authorizes the Agents to negotiate and settle
      the form of any agreements to be entered into in connection with this
      transaction, including the Registration Rights Agreement, and to correct
      errors and omissions of an administrative nature in order to give effect
      to this Subscription Agreement and to extend the time for compliance with,
      any of the representations, warranties, covenants or closing conditions
      under this Subscription Agreement, the Agency Agreement or the
      Registration Rights Agreement in such manner and on such terms and
      conditions as the Agents may determine, acting reasonably, without in any
      way adversely affecting the Subscriber’s obligations or the obligations of
      such other subscribers hereunder or to exercise any rights of termination
      contained in the Agency Agreement;

	 	 	 
	 	(c) 	
      acknowledges and agrees that the Agents and the
      Corporation may vary, amend, alter or waive, in whole or in part, one or
      more of the conditions or covenants set forth in this Subscription
      Agreement, the Agency Agreement or the Registration Rights Agreement in
      such manner and on such terms and conditions as they may determine, acting
      reasonably, upon the Subscriber’s prior written consent, such consent not
      to be unreasonably withheld, except the Agents and the Corporation may
      extend the Closing Date or increase the maximum amount of the Offering
      without additional consent from the Subscriber; and

	 	 	 
	 	(d) 	
      irrevocably authorizes the Agents to swear, accept,
      execute, file and record any documents (including receipts) necessary to
      accept delivery of the certificates representing the Shares and the
      Warrants on the Closing and to terminate this subscription on behalf of
      the Subscriber pursuant to the terms of the Agency
  Agreement.

13.      Compensation of
Agents. 

	 	(a) 	
      The Subscriber understands that, in connection with the
      issue and sale of Units pursuant to the Offering, the Agents will receive
      from the Corporation on Closing:

	 	 	 	 
	 		(i) 	
      a commission equal to 7% of the gross proceeds from the
      sale of the Units, payable in cash; and

	 	 	 	 
	 		(ii) 	
      non-transferable Agents’ Warrants (the “Agents’
      Warrants”) entitling the Agents to purchase that number of Common
      Shares (“Agents’ Warrant Shares”) equal to 7% of the number of
      Units sold by the Agents, at an exercise price of CDN$1.75 per Agents’
      Warrant Share for a period of eighteen (18) months following the Closing
      Date.

	 	 	 	 
	 	(b) 	
      No other fee or commission is payable by the Corporation
      in connection with the completion of the Offering. However, the
      Corporation will pay certain fees and expenses of the Agents in connection
      with the Offering as set out in the Agency
Agreement.

14.      Nature of
Subscription. This subscription is irrevocable except that the
Subscriber reserves the right to withdraw this subscription and to terminate its
obligations hereunder at any time before the Closing Date if the Agents
terminate their obligations with respect to this Offering under the Agency
Agreement, and the Subscriber hereby appoints the Agents as its agents for the
purpose of notifying the Corporation of the withdrawal or termination of this
subscription. 

15.     Delivery of
Securities. The Subscriber hereby authorizes and directs the Corporation
and the Agents to deliver certificates representing the Shares and the Warrants
to be issued to such Subscriber pursuant to this Subscription Agreement either
(a) to the residential or business address indicated in this subscription or (b)
directly to the Subscriber’s account, if any, maintained with the Agents. 

- 22 - 

16.      Return of
Subscription Funds. The Subscriber hereby authorizes and directs the
Corporation and the Agents to return any funds for unaccepted subscriptions to
the same account from which the funds were drawn, without interest or penalty,
including any customer account maintained with the Agents. 

17.      Acceptance of
Subscription. This subscription may be accepted in whole or in part by
the Corporation at its sole discretion and the right is reserved to the
Corporation at its sole discretion and with the approval of the Agents to allot
to any Subscriber less than the amount of Units subscribed for. Confirmation of
acceptance or rejection of this subscription will be forwarded to the Subscriber
promptly after the acceptance or rejection of the subscription by the
Corporation. If this subscription is rejected in whole, the funds delivered by
the Subscriber to the Agents representing the purchase price for the Units
subscribed for herein will be promptly returned to the same account from which
the funds were drawn, without interest or penalty, including any customer
account maintained with the Agents. If this subscription is accepted only in
part, the funds representing the portion of the purchase price representing that
portion of the subscription for the Units which is not accepted will promptly be
similarly returned. 

18.      Costs. All
costs and expenses incurred by the Subscriber (including any fees and
disbursements of any special counsel obtained by the Subscriber) relating to the
sale of the Units to the Subscriber shall be borne by the Subscriber. 

19.      Execution of
Subscription Agreement. The Corporation, the Agents and the U.S.
Affiliates shall be entitled to rely on delivery by facsimile machine or e-mail
of an executed copy of this Subscription Agreement, and acceptance by the
Corporation of such facsimile or e-mail copy shall be equally effective to
create a valid and binding agreement between the Subscriber and the Corporation
in accordance with the terms hereof. If less than a complete copy of this
Subscription Agreement is delivered to the Corporation at Closing, the
Corporation and its counsel are entitled to assume that the Subscriber accepts
and agrees to all of the terms and conditions of the pages not delivered at
Closing unaltered. This Subscription Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original and all of which
together shall constitute one and the same Subscription Agreement. 

20.      Collection of
Personal Information. The Subscriber acknowledges and consents to the
fact that the Corporation and/or the Agents are collecting the Subscriber’s
personal information for the purpose of fulfilling this Subscription Agreement
and completing the Offering. The Subscriber's personal information (and, if
applicable, the personal information of those on whose behalf the Subscriber is
contracting hereunder) may be disclosed by the Corporation and the Agents to (a)
stock exchanges or securities regulatory authorities, (b) the Corporation's
registrar and transfer agent, (c) Canadian tax authorities, (d) authorities
pursuant to the Proceeds of Crime (Money Laundering) and Terrorist Financing
Act (Canada) and (e) any of the other parties involved in the Offering,
including legal counsel, and may be included in record books and the
Registration Statement filed in connection with the Offering. By executing this
Subscription Agreement, the Subscriber is deemed to be consenting to the
foregoing collection, use and disclosure of the Subscriber's personal
information (and, if applicable, the personal information of those on whose
behalf the Subscriber is contracting hereunder) for the foregoing purposes and
for the purposes described in Schedule “D” to this Subscription Agreement and to
the retention of such personal information for as long as permitted or required
by law or business practice. Notwithstanding that the Subscriber may be
purchasing Units as agent on behalf of an undisclosed principal, the Subscriber
agrees to provide, on request, particulars as to the nature and identity of such
undisclosed principal, and any interest that such undisclosed principal has in
the Corporation, all as may be required by the Agents and/or the Corporation in
order to comply with the foregoing. 

Furthermore, the Subscriber is hereby notified that: 

	 	(a) 	
      the Corporation may deliver to any securities commission
      having jurisdiction over the Corporation, the Subscriber or this
      subscription, including the British Columbia Securities Commission, the
      Alberta Securities Commission and the Ontario Securities Commission and/or
      the SEC (collectively, the “Commissions”) certain personal
      information pertaining to the Subscriber, including such Subscriber’s full
      name, residential address and telephone number, the number of shares or
      other securities of the Corporation owned by the Subscriber, the number of
      Units purchased by the Subscriber and the total purchase price paid for
      such Units, the prospectus exemption relied on by the Corporation and the
      date of distribution of the Units,

- 23 - 

	 	(b) 	
      such information is being collected indirectly by the
      Commissions under the authority granted to them in securities
      legislation,

	 	 	 
	 	(c) 	
      such information is being collected for the purposes of
      the administration and enforcement of the securities laws, and

	 	 	 
	 	(d) 	
      the Subscriber may contact the following public official
      in Ontario with respect to questions about the Ontario Securities
      Commission’s indirect collection of such information at the following
      address and telephone number:

Administrative Assistant to the
Director of Corporate Finance 
Ontario Securities Commission 
Suite 1903,
Box 55 
20 Queen Street West 
Toronto, ON M5H 3S8 

  Telephone: (416) 593-8086 

21.      Anti-Money Laundering
Legislation. In order to comply with legislation aimed at the prevention
of money laundering, the Corporation may require additional information
concerning investors from time to time and the Subscriber agrees to provide all
such information. The Subscriber acknowledges that if, as a result of any
information or other matter which comes to the Corporation's attention, any
director, officer or employee of the Corporation or any investment advisor, or
their respective professional advisors, knows or suspects that an investor is
engaged in money laundering, such person is required to report such information
or other matter to the Financial Transactions and Reports Analysis Centre of
Canada and such report shall not be treated as a breach of any restriction upon
the disclosure of information imposed by Canadian law or otherwise. 

22.      Governing Law.
The contract arising out of this Subscription Agreement shall be governed by and
construed in accordance with the laws of the Province of British Columbia and
the laws of Canada applicable therein. 

23.      Survival of
Representations and Warranties. The covenants, representations and
warranties contained herein shall survive the Closing and continue in full force
and effect for a period of two years following the Closing. 

24.      Assignment.
The terms and provisions of this Subscription Agreement shall be binding upon
and enure to the benefit of the Subscriber, the Corporation and the Agents and
their respective heirs, executors, administrators, successors and assigns;
provided however, that: (a) this Subscription Agreement may not be assigned by
the Subscriber without the consent of the Corporation and the Agents, in their
discretion, other than the assignment by a Subscriber who is acting as nominee
or agent to the beneficial owner; and (b) this Subscription Agreement may not be
assigned by the Agents on behalf of the Subscriber without the consent of the
Subscriber, acting reasonably. The benefits and the obligations of this
Subscription Agreement, insofar as they apply to the Subscriber, shall pass with
any assignment or transfer of the Securities. 

25.      Entire Agreement
and Headings. Except as otherwise stated herein, this Subscription
Agreement (including the schedules hereto) constitutes the entire agreement
between the Subscriber and the Corporation relating to the subject matter hereof
and there are no representations, warranties, covenants, understandings or other
agreements relating to the subject matter hereof except as stated or referred to
herein. This Subscription Agreement may be amended or modified in any respect by
written instrument only. The headings contained herein are for convenience only
and shall not affect the meanings or interpretation hereof. 

26.      Effective
Date. The Subscription Agreement is intended to and shall take effect on
the later of the date it has been accepted by the Corporation and the effective
date of the Agency Agreement. 

27.      Time of
Essence. Time shall be of the essence of this Subscription Agreement.

- 24 - 

28.     Language.
It is the express wish of the Subscriber that the Subscription Agreement and
any related documentation be drawn up in English only. Il est de la volonté
expresse du souscripteur que la convention de souscription ainsi que tout
document connexe soient rédigés en langue anglaise uniquement. 

29.      Currency. All
references herein to monetary amounts are to lawful money of Canada, unless
otherwise specified. 

SCHEDULE “A” 

ACCREDITED INVESTOR STATUS CERTIFICATE 

Capitalized terms not specifically defined in this certificate
have the meaning ascribed to them in the Subscription Agreement to which this
certificate is attached. 

The undersigned Subscriber hereby represents, warrants and
certifies to the Corporation, as an integral part of the attached Subscription
Agreement, that he, she or it is and at Closing will be, correctly and in all
respects described by the category or categories set forth directly next to
which the Subscriber has marked below: 

	[  ]	(1) 	
      a Canadian financial institution, or a Schedule III
      bank.

	 	 	 
	[  ]	(2) 	
      the Business Development Bank of Canada incorporated
      under the Business Development Bank of Canada Act
  (Canada).

	 	 	 
	[  ]	(3) 	
      a subsidiary of any person referred to in paragraphs (1)
      or (2), if the person owns all of the voting securities of the subsidiary,
      except the voting securities required by law to be owned by directors of
      that subsidiary.

	 	 	 
	[  ]	(4) 	
      a person registered under the securities legislation of a
      jurisdiction of Canada as an adviser or dealer, other than a person
      registered solely as a limited market dealer under one or both of the
      Securities Act (Ontario) or the Securities Act (Newfoundland
      and Labrador).

	 	 	 
	[  ]	(5) 	
      an individual registered or formerly registered under the
      securities legislation of a jurisdiction of Canada as a representative of
      a person referred to in paragraph (4).

	 	 	 
	[  ]	(6) 	
      the Government of Canada or a jurisdiction of Canada, or
      any crown corporation, agency or wholly owned entity of the Government of
      Canada or a jurisdiction of Canada.

	 	 	 
	[  ]	(7) 	
      a municipality, public board or commission in Canada and
      a metropolitan community, school board, the Comité de gestion de la taxe
      scolaire de l’île de Montréal or an intermunicipal management board in
      Québec.

	 	 	 
	[  ]	(8) 	
      any national, federal, state, provincial, territorial or
      municipal government of or in any foreign jurisdiction, or any agency of
      that government.

	 	 	 
	[  ]	(9) 	
      a pension fund that is regulated by either the Office of
      the Superintendent of Financial Institutions (Canada) or a pension
      commission or similar regulatory authority of a jurisdiction of
    Canada.

	 	 	 
	[  ]	(10) 	
      an individual who, either alone or with a spouse,
      beneficially owns, directly or indirectly, financial assets having an
      aggregate realizable value that before taxes, but net of any related
      liabilities, exceeds CDN$1,000,000.

	 	 	 
	[  ]	(11) 	
      an individual whose net income before taxes exceeded
      CDN$200,000 in each of the 2 most recent calendar years or whose net
      income before taxes combined with that of a spouse exceeded CDN$300,000 in
      each of the 2 most recent calendar years and who, in either case,
      reasonably expects to exceed that net income level in the current calendar
      year.

	 	 	 
	[  ]	(12) 	
      an individual who, either alone or with a spouse, has net
      assets of at least CDN$5,000,000.

	 	 	 
	[  ]	(13) 	
      a person, other than an individual or investment fund,
      that has net assets of at least CDN$5,000,000 as shown on its most
      recently prepared financial statements.

	 	 	 
	[  ]	(14) 	
      an investment fund that distributes or has distributed
      its securities only to

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

- A2 - 

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

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

	[  ]	(15) 	
      an investment fund that distributes or has distributed
      securities under a prospectus in a jurisdiction of Canada for which the
      regulator or, in Québec, the securities regulatory authority, has issued a
      receipt.

	 	 	 
	[  ]	(16) 	
      a trust company or trust corporation registered or
      authorized to carry on business under the Trust and Loan Companies Act
      (Canada) or under comparable legislation in a jurisdiction of Canada
      or a foreign jurisdiction, acting on behalf of a fully managed account
      managed by the trust company or trust corporation, as the case may
    be.

	 	 	 
	[  ]	(17) 	
      a person acting on behalf of a fully managed account
      managed by that person, if that person

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

	 	 	 
	 	(b) 	
      in Ontario, is purchasing a security that is not a
      security of an investment fund.

	[  ]	(18) 	
      a registered charity under the Income Tax Act
      (Canada) that, in regard to the trade, has obtained advice from an
      eligibility adviser or an adviser registered under the securities
      legislation of the jurisdiction of the registered charity to give advice
      on the securities being traded.

	 	 	 
	[  ]	(19) 	
      an entity organized in a foreign jurisdiction that is
      analogous to any of the entities referred to in paragraphs (1) to (4) or
      paragraph (9) in form and function.

	 	 	 
	[  ]	(20) 	
      a person in respect of which all of the owners of
      interests, direct, indirect or beneficial, except the voting securities
      required by law to be owned by directors, are persons that are accredited
      investors.

	 	 	 
	[  ]	(21) 	
      an investment fund that is advised by a person registered
      as an adviser or a person that is exempt from registration as an
      adviser.

	 	 	 
	[  ]	(22) 	
      a person that is recognized or designated by the
      securities regulatory authority or, except in Ontario and Québec, the
      regulator as

	 	(a) 	
      an accredited investor, or

	 	 	 
	 	(b) 	
      an exempt subscriber in Alberta or British Columbia after
      NI 45-106 comes into force.

Note: A summary of the meanings of some of the terms used in
this Accredited Investor Status Certificate follows the signature block below.

Dated _____________________________, 20____. 

	 	X
  
	 	Signature of individual (if Subscriber is an
      individual) 
	 	 
	 	X
  
	 	Authorized signatory (if Subscriber is not an
      individual) 
	 	 
	 	 
	 	Name of Subscriber (please print) 
	 	 
	 	 
	 	Name of authorized signatory (please print)
  

- A3 - 

For the purposes of this Accredited Investor Status
Certificate, the following definitions are included for convenience:

	 	(a) 	
      “affiliate” means that an issuer is an affiliate of
      another issuer if:

	 	 	 	 
	 		(i) 	
      one of them is the subsidiary of the other, or

	 	 	 	 
	 		(ii) 	
      each of them is controlled by the same person.

	 	 	 	 
	 	(b) 	
      “Canadian financial institution” means

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

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

	 	 	 	 
	 	(c) 	
      “company” means any corporation, incorporated
      association, incorporated syndicate or other incorporated
    organization;

	 	 	 	 
	 	(d) 	
      “control” means as follows: a person (first person) is
      considered to control another person (second person) if:

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

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

	 	 	 	 
	 		(iii) 	
      the second person is a limited partnership and the
      general partner of the limited partnership is the first person;

	 	 	 	 
	 	(e) 	
      “entity” means a company, syndicate, partnership, trust
      or unincorporated organization;

	 	 	 	 
	 	(f) 	
      “financial assets” means cash, securities, or any
      contract of insurance or deposit or evidence thereof that is not a
      security for the purposes of the securities legislation;

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

	 	 	 	 
	 	(h) 	
      “mutual fund” means:

	 	(i) 	
      for the purposes of British Columbia law,

	 	 	 	 
	 		(A) 	
      an issuer of a security that entitles the holder to
      receive on demand, or within a specified period after demand, an amount
      computed by reference to the value of a proportionate interest in the
      whole or in a part of the net assets, including a separate fund or trust
      account, of the issuer of the security,

- A4 - 

	 	(B) 	
      an issuer described in an order that the commission may
      make under section 3.2 of the Securities Act (BC), and

	 	 	 
	 	(C) 	
      an issuer that is in a class of prescribed
  issuers,

	 		
      but does not include an issuer, or a class of issuers,
      described in an order that the commission may make under section 3.1 of
      the Securities Act (BC);

	 	 	 
	 	(ii) 	
      for the purposes of Alberta
law,

	 	(A) 	
      an issuer whose primary purpose is to invest money
      provided by its security holders and whose securities entitle the holder
      to receive on demand, or within a specified period after demand, an amount
      computed by reference to the value of a proportionate interest in the
      whole or in part of the net assets, including a separate fund or trust
      account, of the issuer, or

	 	 	 
	 	(B) 	
      an issuer that is designated as a mutual fund under
      section 10 of the Alberta Securities Act (Alberta) or in accordance with
      the regulations,

	 		
      but does not include an issuer, or class of issuers, that
      is designated under section 10 of the Alberta Securities Act (Alberta) not
      to be a mutual fund;

	 	 	 
	 	(iii) 	
      for the purposes of Ontario law, an issuer whose primary
      purpose is to invest money provided by its security holders and whose
      securities entitle the holder to receive on demand, or within a specified
      period after demand, an amount computed by reference to the value as a
      proportionate interest in the whole or in part of the net assets,
      including a separate fund or trust account, of the issuer;

	 	 	 
	 	(iv) 	
      for the purposes of Quebec law, a company issuing shares
      which must, on request of the holder, redeem them at their net asset
      value;

	 	(i) 	
      “non-redeemable investment fund” means an
  issuer:

	 	(i) 	
      whose primary purpose is to invest money provided by its
      security holders;

	 	 	 
	 	(ii) 	
      that does not invest,

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

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

	 	(iii) 	
      that is not a mutual fund;

	 	(j) 	
      “person” includes

	 	 	 	 
	 		(i) 	
      an individual,

	 	 	 	 
	 		(ii) 	
      a corporation,

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

- A5 - 

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

	 	(k) 	
      “portfolio adviser” means:

	 	 	 	 
	 		(i) 	
      a portfolio manager; or

	 	 	 	 
	 		(ii) 	
      a broker or investment dealer exempted from registration
      as an adviser under section 148 of the regulation made under the
      Securities Act (Ontario) if that broker or investment dealer is not exempt
      from the by-laws or regulations of the Toronto Stock Exchange or the
      Investment Dealers’ Association of Canada referred to in that
    section;

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

	 	 	 	 
	 	(m) 	
      “spouse” means an individual who:

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

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

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

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

SCHEDULE “B” 

U.S. ACCREDITED INVESTOR STATUS CERTIFICATE

Capitalized terms not specifically defined in this certificate
have the meaning ascribed to them in the Subscription Agreement to which this
certificate is attached. In this certificate, dollar amounts are stated in U.S.
dollars. 

The Subscriber hereby represents, warrants and certifies to the
Corporation, as an integral part of the attached Subscription Agreement, that
he, she or it is and at Closing will be correctly and in all respects described
by the category or categories set forth directly next to which the Subscriber
has marked below: 

	[  ]	(1) 	
      a natural person whose individual net worth, or joint net
      worth with that person’s spouse, at the date of this certificate exceeds
      $1,000,000, excluding the value of the primary residence of such person(s)
      and the related amount of indebtedness secured by the primary residence up
      to its fair market value;

	 	 	 
	[  ]	(2) 	
      a natural person who had an individual income in excess
      of $200,000 in each of the two most recent years or joint income with that
      person’s spouse in excess of $300,000 in each of those years and has a
      reasonable expectation of reaching the same income level in the current
      year;

	 	 	 
	[  ]	(3) 	
      an organization described in Section 501(c)(3) of the
      Internal Revenue Code (United States), a corporation, a
      Massachusetts or similar business trust or partnership, not formed for the
      specific purpose of acquiring the Securities, with total assets in excess
      of $5,000,000;

	 	 	 
	[  ]	(4) 	
      a “bank” as defined in Section 3(a)(2) of the 1933 Act or
      a savings and loan association or other institution as defined in Section
      3(a)(5)(A) of the 1933 Act acting in its individual or fiduciary capacity;
      a broker or dealer registered pursuant to Section 15 of the Securities
      Exchange Act of 1934 (United States); an insurance company as defined
      in Section 2(a)(13) of the 1933 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;

	 	 	 
	[  ]	(5) 	
      a private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940 (United
      States);

	 	 	 
	[  ]	(6) 	
      a director or executive officer of the
  Corporation,

	 	 	 
	[  ]	(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 1933 Act; or

- B2 - 

	[  ]	(8) 	
      an entity in which all of the equity owners satisfy the
      requirements of one or more of the foregoing
categories.

Dated _____________________________, 20____. 

	 	X
  
	 	Signature of individual (if Subscriber is an
      individual) 
	 	 
	 	X
  
	 	Authorized signatory (if Subscriber is not an
      individual) 
	 	  
	 	 
	 	Name of Subscriber (please print) 
	 	 
	 	  
	 	Name of authorized signatory (please print)
  

SCHEDULE “C” 

FORM 4C 

CORPORATE PLACEE REGISTRATION FORM 

This Form will remain on file with the Exchange and must be
completed if required under section 4(b) of Part II of Form 4B. The corporation,
trust, portfolio manager or other entity (the “Placee”) need only file it on one
time basis, and it will be referenced for all subsequent Private Placements in
which it participates. If any of the information provided in this Form changes,
the Placee must notify the Exchange prior to participating in further placements
with Exchange listed Issuers. If as a result of the Private Placement, the
Placee becomes an Insider of the Issuer, Insiders of the Placee are reminded
that they must file a Personal Information Form (2A) or, if applicable,
Declarations, with the Exchange. 

	1. 	
      Placee Information:

	 	 	 
		(a) 	
      Name:_____________________________________________________________________

	 	 	 
		(b) 	
      Complete
    Address:__________________________________________________________

	 	 	 
		(c) 	
      Jurisdiction of Incorporation or
    Creation:__________________________________________

	 	 	 
	2. 	
      (a) 
	Is the Placee purchasing securities as a portfolio
      manager: (Yes/No)?_____________________
	 	 	 
		(b) 	
      the Placee carrying on business as a portfolio manager
      outside of Canada: (Yes/No)? _________

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

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

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

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

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

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

- C2 - 

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

	Name * 	City 	Province or State 	Country 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

* If the Control Person is not an
individual, provide the name of the individual that makes the investment
decisions on behalf of the Control Person. 

	5. 	
      Acknowledgement - Personal Information and Securities
      Laws

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

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

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

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

	 	(b) 	
      The undersigned acknowledges that it is bound by the
      provisions of applicable Securities Law, including provisions concerning
      the filing of insider reports and reports of
  acquisitions.

Dated and certified (if applicable), acknowledged and agreed,
at ___________________________________on ___________________________________

	 	 
	 	(Name of Purchaser - please print) 
	 	 
	 	 
	 	(Authorized Signature) 
	 	 
	 	 
	 	(Official Capacity - please print) 
	 	 
	 	 
	 	
      (Please print name of individual whose signature appears
      above) 

THIS IS NOT A PUBLIC DOCUMENT 

SCHEDULE “D” 

ACKNOWLEDGEMENT – PERSONAL INFORMATION

	1. 	
      TSX Venture Exchange Inc. and its affiliates, authorized
      agents, subsidiaries and divisions, including the TSX Venture Exchange
      (collectively referred to as the “Exchange”) collect Personal Information
      in certain Forms that are submitted by the individual and/or by an Issuer
      or Applicant and use it for the following purposes:

	 	 	 
		(a) 	
      to conduct background checks;

	 	 	 
		(b) 	
      to verify the Personal Information that has been provided
      about each individual;

	 	 	 
		(c) 	
      to consider the suitability of the individual to act as
      an officer, director, insider, promoter, investor relations provider or,
      as applicable, an employee or consultant, of the Issuer or
    Applicant;

	 	 	 
		(d) 	
      to consider the eligibility of the Issuer or Applicant to
      list on the Exchange;

	 	 	 
		(e) 	
      to provide disclosure to market participants as to the
      security holdings of directors, officers, other insiders and promoters of
      the Issuer, or its associates or affiliates;

	 	 	 
		(f) 	
      to conduct enforcement proceedings; and

	 	 	 
		(g) 	
      to perform other investigations as required by and to
      ensure compliance with all applicable rules, policies, rulings and
      regulations of the Exchange, securities legislation and other legal and
      regulatory requirements governing the conduct and protection of the public
      markets in Canada.

As part of this process, the Exchange
also collects additional Personal Information from other sources, including but
not limited to, securities regulatory authorities in Canada or elsewhere,
investigative, law enforcement or self-regulatory organizations, regulations
service providers and each of their subsidiaries, affiliates, regulators and
authorized agents, to ensure that the purposes set out above can be
accomplished. 

The Personal Information the Exchange
collects may also be disclosed: 

	 	(a) 	
      to the agencies and organizations in the preceding
      paragraph, or as otherwise permitted or required by law, and they may use
      it in their own investigations for the purposes described above;
  and

	 	 	 
	 	(b) 	
      on the Exchange’s website or through printed materials
      published by or pursuant to the directions of the
  Exchange.

		
      The Exchange may from time to time use third parties to
      process information and/or provide other administrative services. In this
      regard, the Exchange may share the information with such third party
      service providers.

	 	 
	2. 	
      The Commissions may indirectly collect the Personal
      Information under the authority granted to them by securities legislation.
      The Personal Information is being collected for the purposes of the
      administration and enforcement of the securities legislation of the
      jurisdiction of each such Commission.

For questions about the collection of Personal Information by
the British Columbia Securities Commission, please contact the Administrative
Assistant to the Director of Corporate Finance, 12th Floor, 701 West Georgia
Street, Box 10142, Vancouver, BC V7Y 1L2, phone: (604) 899-6854. 

SCHEDULE “E” 

REGISTRATION RIGHTS AGREEMENT 

          This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of June 14,
2011, is by and between COUNTERPATH CORPORATION, a Nevada corporation (the
“Corporation”), and (i) each subscriber in the Corporation’s Offering of
Units (each as defined herein) (such subscribers being referred to herein
individually as a “Subscriber” and collectively as the
“Subscribers”); and (ii) each of the Agents (as defined herein) for the
Offering. 

          A.      The
Corporation has agreed, on the terms and subject to the conditions set forth in
the Subscription Agreement between the Corporation and each Subscriber (the
“Subscription Agreement”) to issue and sell Units to each Subscriber.
Each Unit (a “Unit”) is comprised of one Common Share (each a
“Share”) and one-half (1⁄2) of one non-transferable common share purchase
warrant (each whole warrant, a “Subscriber Warrant”). Each whole
Subscriber Warrant entitles the holder to purchase one Common Share (a
“Subscriber Warrant Share”) at a price of CDN$2.25 per Subscriber Warrant
Share for a period of two years following the Closing Date of the Offering. 

          B.      The
Corporation has also agreed, on the terms and subject to the conditions set
forth in the Agency Agreement between the Corporation and each of the Agents
dated of even date herewith (the “Agency Agreement”) to issue as
compensation to the Agents non-transferable warrants (the “Agents’
Warrants”) entitling the Agents to purchase that number of Common Shares
(“Agents’ Warrant Shares”) equal to 7% of the number of Units sold by the
Agents in the Offering, at an exercise price of CDN$1.75 per Agents’ Warrant
Share for a period of eighteen (18) months following the Closing Date of the
Offering.

          C.     
In order to induce each Subscriber to enter into the Subscription Agreement and
each of the Agents to enter into the Agency Agreement, the Corporation has
agreed to provide the Subscribers and the Agents with certain registration
rights under the Securities Act of 1933, as amended, and under applicable state
securities laws. 

          In
consideration of each Subscriber entering into the Subscription Agreement and of
each of the Agents entering into the Agency Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 

1.      DEFINITIONS. 

          For
purposes of this Agreement, the following terms shall have the meanings
specified: 

          “1933
Act” means the United States Securities Act of 1933, as amended. 

          “1934
Act” means the United States Securities Exchange Act of 1934, as
amended. “Agency Agreement” has the meaning set forth on the first page
of this Agreement. 

          “Agents”
means National Bank Financial Inc. and Canaccord Genuity Corp. 

          “Agents’
Warrants” has the meaning set forth on the first page of this Agreement.

          “Agents’
Warrant Shares” has the meaning set forth on the first page of this
Agreement. 

- E2 - 

          “Agreement”
has the meaning set forth on the first page of this Agreement. 

          “Business
Day” means, for purposes of Section 2 of this Agreement, any day except
Saturday, Sunday or any federal holiday or other day on which the Commission is
not open for business, and for all other purposes means any day except Saturday,
Sunday or a statutory holiday in Vancouver, British Columbia or Toronto,
Ontario. 

          “Closing”
means the closing of the purchase and sale of the Units as contemplated by the
Subscription Agreement and the Agency Agreement. 

          “Closing
Date” is the date on which the Closing is completed.

            “Commission” means the United States Securities and Exchange Commission. 

          “Common Share” means a common share in the capital of the Corporation. 

          “Corporation” has the meaning set forth on the first page of this
  Agreement. 

          
“Effective Date” means the date on which a Registration Statement is
declared effective by the Commission. 

          “Holder”
means any person owning or having the right to acquire, through exercise of the
Warrants or otherwise, Registrable Securities, including initially each
Subscriber and each Agent and thereafter any permitted assignee thereof. 

          “Initial
Registration Statement” has the meaning set forth in Section 2(a). 

          “Offering”
means the offering pursuant to the Agency Agreement and the Subscription
Agreement of up to 5,714,285 Units for gross aggregate proceeds of up to
CDN$10,000,000. 

          “Registrable
Securities” means the Shares, the Subscriber Warrant Shares, the Agents’
Warrant Shares and any shares of capital stock issued or issuable from time to
time (with any adjustments) in replacement of, in exchange for, as a
distribution on, or otherwise in respect of such Shares, Subscriber Warrant
Shares or Agents’ Warrant Shares; provided, however, that any such shares shall
cease to be Registrable Securities at such time as they may be sold by the
Holder without registration under Rule 144 without limitation as to volume. 

          “Registration
Deadline” means the date which is four months after the Closing Date.

          “Registration
Period” has the meaning set forth in Section 2(b). 

          “Registration
Statement” means a registration statement or statements prepared in
compliance with the 1933 Act and pursuant to Rule 415. 

          “Rule
144” means Rule 144 under the 1933 Act or any successor rule providing a
similar exemption from 1933 Act registration requirements. 

          “Rule
415” means Rule 415 under the 1933 Act or any successor rule providing for
the offering of securities on a continuous or delayed basis. 

- E3 - 

          “Rule
416” means Rule 416 under the 1933 Act or any successor rule providing for
the registration of securities to be issued as a result of stock splits, stock
dividends and anti-dilution provisions. 

          “Second
Registration Statement” has the meaning set forth in Section 2(a). 

          “Share”
has the meaning set forth on the first page of this Agreement. 

          “Subscriber”
and “Subscribers” have the meanings set forth on the first page of this
Agreement. 

          “Subscriber
Warrant” has the meaning set forth on the first page of this Agreement.

          “Subscriber
  Warrant Share” has the meaning set forth on the first page of this
  Agreement. 

          “Subscription
Agreement” has the meaning set forth on the first page of this
Agreement. 

          “Unit”
has the meaning set forth on the first page of this Agreement. 

     2.      REGISTRATION.

         (a)      Registration
Statement. Following the Closing of the Offering, the Corporation shall file
with the Commission a Registration Statement on Form S-1 covering the resale of
the Registrable Securities. Such Registration Statement shall state, to the
extent permitted by Rule 416 under the 1933 Act, that it also covers such
indeterminate number of additional Common Shares as may become issuable upon
exercise of the Subscriber Warrants and the Agents’ Warrants in order to (i)
prevent dilution resulting from stock splits, stock dividends or similar events
and (ii) effect required anti-dilution adjustments pursuant to the terms of the
Subscriber Warrants or the Agents’ Warrants and their governing documents.
Notwithstanding any other provision in this Section 2, if the Corporation
receives a comment from the staff of the Commission that effectively results in
the Corporation having to reduce the number of Registrable Securities included
in such Registration Statement (hereafter referred to as the “Initial
Registration Statement”), then the Corporation, after having first used
commercially reasonable efforts to persuade the staff of the Commission to
withdraw such comment, may in its sole discretion reduce for each Holder on a
pro rata basis the number of Registrable Securities to be included in the
Initial Registration Statement. The Corporation agrees it will provide the
Agents and their counsel with the opportunity to review any such comment
received from the staff of the Commission and the Corporation’s proposed
responses thereto and will allow the Agents and their counsel to provide input
regarding the proposed responses before submitting them to the staff of the
Commission. The Corporation further covenants and agrees that it will use
commercially reasonable efforts to register the resale of all Registrable
Securities not included in the Initial Registration Statement pursuant to this
Section 2(a) by filing a second Registration Statement (the “Second
Registration Statement”) six months after the Effective Date of the Initial
Registration Statement, or as soon thereafter as is reasonably practicable, and
will use commercially reasonable efforts to make the Second Registration
Statement effective as soon as reasonably practicable after the date it is
filed. 

          (b)     
Effectiveness. The Corporation shall use commercially reasonable efforts
to cause the Initial Registration Statement to be made effective by the
Registration Deadline and in any event as soon as reasonably practicable after
the Closing Date. The Corporation shall respond promptly to any and all comments
made by the staff of the Commission on the Initial Registration Statement and,
if applicable, the Second Registration Statement, and shall submit to the
Commission, within five (5) Business Days after the Corporation learns that no
review of such Registration Statement will be made by the staff of the Commission or that the staff of the Commission has no further
comments on such Registration Statement, as the case may be, a request for
acceleration of the effectiveness of the Registration Statement to a time and
date not later than two (2) Business Days after the submission of such request.
The Corporation will maintain the effectiveness of the Initial Registration
Statement and, if applicable, the Second Registration Statement until the
earlier to occur of (i) the date on which all of the Registrable Securities
eligible for resale thereunder have been publicly sold pursuant to such
Registration Statements or Rule 144 and (ii) the date on which all of the
Registrable Securities remaining to be sold under such Registration Statements
(in the reasonable opinion of counsel to the Corporation) may be immediately
sold to the public pursuant to Rule 144 under the 1933 Act (the period beginning
on the Closing Date and ending on the earlier to occur of (i) or (ii) above
being referred to herein as the “Registration Period”). 

- E4 - 

          (c)      Registration
of Other Securities. During the period beginning on the Closing Date and
ending on the Effective Date, the Corporation shall refrain from filing any
registration statement (other than (i) a Registration Statement filed hereunder,
or (ii) a registration statement that qualifies to be filed on Form S-8 or any
successor form or other form promulgated for similar purposes.

3.      PIGGYBACK REGISTRATION. 

          If
at any time prior to the expiration of the Registration Period, the Corporation
proposes to file a registration statement under the 1933 Act, other than a
registration statement on Form S-8 or Form S-4 or any successor form or other
form promulgated for similar purposes, and a Registration Statement covering the
sale of all of the Registrable Securities held by any Holder is not then
effective and available for sales thereof by such Holder, the Corporation shall
(a) give prior written notice to each such Holder of its intention to do so and
(b) include all such Registrable Securities in the registration statement filed
in connection with the Proposed Registration. 

4.      OBLIGATIONS OF THE
CORPORATION. 

          In      addition
to performing its obligations hereunder, including without limitation those
pursuant to Section 2 above, the Corporation shall, with respect to each
Registration Statement described in Section 2(a): 

          (a)     
prepare and file with the Commission such amendments and supplements to the
Registration Statement and the prospectus used in connection with the
Registration Statement as may be necessary to comply with the provisions of the
1933 Act or to maintain the effectiveness of the Registration Statement during
the Registration Period, or as may be reasonably requested by a Holder in order
to incorporate information concerning such Holder or such Holder's intended
method of distribution; 

          (b)      furnish
to each Holder such number of copies of the prospectus included in the
Registration Statement, including a preliminary prospectus, in conformity with
the requirements of the 1933 Act, and such other documents as such Holder may
reasonably request in order to facilitate the disposition of such Holder's
Registrable Securities; 

          (c)     
use commercially reasonable efforts to register or qualify the Registrable
Securities under the securities or “blue sky” laws of such jurisdictions within
the United States as shall be reasonably requested from time to time by a
Holder, and do any and all other acts or things which may be necessary or
advisable to enable such Holder to consummate the public sale or other
disposition of the Registrable Securities in such jurisdictions; provided that
the Corporation shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to service of
process in any such jurisdiction or to subject itself to taxation in any such
jurisdiction; 

- E5 - 

          (d)      in
the event of an underwritten public offering of the Registrable Securities,
enter into (together with all Holders proposing to distribute Registrable
Securities through such underwriting) and perform its obligations under an
underwriting agreement, in usual and customary form reasonably acceptable to the
Corporation, with the managing underwriter of such offering; 

          (e)     
notify each Holder immediately after becoming aware of the occurrence of any
event (but shall not, without the prior written consent of such Holder, disclose
to such Holder any facts or circumstances constituting material non-public
information) as a result of which the prospectus included in the Registration
Statement, as then in effect, is no longer compliant with the 1933 Act, and as
promptly as practicable prepare and file with the Commission and furnish to each
Holder a reasonable number of copies of a new, amended or supplemented
prospectus that complies with the 1933 Act, and in the meantime keep each Holder
informed of the status of the Corporation’s efforts to make the prospectus
compliant with the 1933 Act; 

          (f)      use
all commercially reasonable efforts to prevent the issuance of any stop order or
other order suspending the effectiveness of the Registration Statement and, if
such an order is issued, to obtain the withdrawal thereof at the earliest
possible time and to notify each Holder of the issuance of such order and the
resolution thereof; 

          (g)      furnish
to each Holder, on the date that the Registration Statement, or any successor
registration statement, becomes effective, a letter, dated such date, addressed
to such Holder, confirming such effectiveness and, to the knowledge of the
Corporation, the absence of any stop order; 

          (h)      provide
to each Holder and its representatives the reasonable opportunity to conduct a
reasonable inquiry of the Corporation's financial and other records during
normal business hours and make available its officers, directors and employees
for questions regarding information which such Holder may reasonably request in
order to fulfill any due diligence obligation on its part, subject, however, to
the execution and delivery to the Corporation by such Holder of a customary
non-disclosure agreement and provided that the Corporation shall not disclose
any material non-public information to such Holder absent such Holder's written
request therefor; 

          (i)      permit
counsel for each Holder, at such Holder's expense, to review the Registration
Statement and all amendments thereto, and any comments made by the staff of the
Commission concerning such Holder and the Corporation's responses thereto,
within a reasonable period of time prior to the filing thereof with the
Commission (or, in the case of comments made by the staff of the Commission,
within a reasonable period of time following the receipt thereof by the
Corporation); 

          (j)     
hold in confidence and not make any disclosure of information concerning a
Holder provided to the Corporation if at the time such information is provided
the Corporation is notified of the confidential nature of such information
unless (i) disclosure of such information is necessary to comply with federal or
state securities laws, (ii) the disclosure of such information is necessary to
avoid or correct a misstatement or omission in any Registration Statement that
includes such Holder’s Registrable Securities, (iii) the release of such
information is ordered pursuant to a subpoena or other order from a court or
governmental body of competent jurisdiction, (iv) such information has been made
generally available to the public other than by disclosure in violation of this
or any other agreement, or (v) such Holder consents to the form and content of
any such disclosure. The Corporation shall, upon learning that disclosure of any
information concerning an Holder is sought in or by a court or governmental body
of competent jurisdiction or through other means, give prompt notice to such
Holder prior to making such disclosure, and cooperate with the Holder, at the
Holder’s expense, in taking appropriate action to prevent disclosure of, or to
obtain a protective order for, such information; and 

- E6 - 

          (k)      comply
with all applicable laws related to the Registration Statement and offering and
sale of Registrable Securities and all applicable rules and regulations of
governmental authorities in connection therewith, including, without limitation,
the 1933 Act and the 1934 Act and the rules and regulations promulgated
thereunder. 

5.      OBLIGATIONS OF EACH
HOLDER. 

          In
connection with the registration of Registrable Securities pursuant to a
Registration Statement, each Holder shall: 

          (a)     
timely furnish to the Corporation in writing such information regarding itself
and the intended method of disposition of such Registrable Securities, including
the identity of and compensation to be paid to any proposed broker-dealer to be
employed in connection therewith, as the Corporation shall reasonably request in
order to effect the registration thereof; 

          (b)      execute
and deliver to the Corporation such written representations and undertakings as
the Corporation and its counsel may reasonably require in order to ensure full
compliance with relevant provisions of the 1933 Act and the 1934 Act; 

          (c)     
upon receipt of any notice from the Corporation of the happening of any event of
the kind described in Sections 4(e) or 4(f), immediately discontinue any sale or
other disposition of such Registrable Securities pursuant to such Registration
Statement until the filing of an amendment or supplement as described in Section
4(e) or withdrawal of the stop order referred to in Section 4(f), and use
commercially reasonable efforts to maintain the confidentiality of such notice
and its contents; 

          (d)      in
the event of an underwritten offering of such Registrable Securities in which
such Holder participates, enter into a customary and reasonable underwriting
agreement and execute such other documents as the Corporation and/or the
managing underwriter for such offering may reasonably request; 

          (e)      to
the extent required by applicable law, deliver a prospectus to the purchaser of
such Registrable Securities; 

          (f)      notify
the Corporation when it has sold all of the Registrable Securities held by it;
and 

          (g)     
notify the Corporation in the event that any information supplied by such Holder
to the Corporation in writing for inclusion in such Registration Statement or
related prospectus is untrue or omits to state a material fact required to be
stated therein or necessary to make such information not misleading in light of
the circumstances then existing; immediately discontinue any sale or other
disposition of such Registrable Securities pursuant to such Registration
Statement until the filing of an amendment or supplement to such prospectus as
may be necessary so that such prospectus does not contain an untrue statement of
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing; and use commercially reasonable efforts to assist
the Corporation as may be appropriate to make such amendment or supplement
effective for such purpose. 

6.      INDEMNIFICATION. 

          In
the event that any Registrable Securities are included in a Registration
Statement under this Agreement, including any registration statement described
in Section 3: 

- E7 - 

          (a)      To
the extent permitted by law, the Corporation shall indemnify and hold harmless
each Holder, the officers, directors, employees, agents and representatives of
such Holder, and each person, if any, who controls such Holder within the
meaning of the 1933 Act or the 1934 Act (collectively, the “Holder Indemnified
Parties”), including in such Holder Indemnified Parties' capacity as a broker
dealer, against any losses, claims, damages, liabilities or reasonable
out-of-pocket expenses (whether joint or several) (collectively, including legal
or other expenses reasonably incurred in connection with investigating or
defending same, “Losses”), insofar as any such Losses arise out of or are based
upon (i) any untrue statement or alleged untrue statement of a material fact
contained in such Registration Statement, including any preliminary prospectus
or final prospectus contained therein or any amendments or supplements thereto,
(ii) the omission or alleged omission to state therein a material fact required
to be stated therein, or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, (iii) any
misrepresentation or breach of any representation or warranty made by the
Corporation, or (iv) any violation or alleged violation by the Corporation of
the 1933 Act, the 1934 Act or any applicable state securities laws in connection
with the Registration Statement. Subject to the provisions of Section 6(c)
below, the Corporation will reimburse such Holder, and each of the Holder
Indemnified Parties, for any legal or other out-of-pocket expenses as reasonably
incurred by any such entity or person in connection with investigating or
defending any Loss; provided, however, that the foregoing indemnity shall not
apply to amounts paid in settlement of any Loss if such settlement is effected
without the consent of the Corporation (which consent shall not be unreasonably
withheld), nor shall the Corporation be obligated to indemnify any person for
any Loss to the extent that such Loss (i) is based upon and is in conformity
with written information furnished by such person expressly for use in such
Registration Statement, (ii) is based on a failure of such person to deliver or
cause to be delivered the final prospectus contained in the Registration
Statement and made available by the Corporation, if such delivery is required by
applicable law, or (iii) relates to the sale of shares by such Holder after the
Corporation has notified such Holder that an event described in Section 4(e) has
occurred and has not yet provided the Holder with a new, amended or supplemented
prospectus for delivery. The Corporation shall not enter into any settlement of
a Loss that does not provide for the unconditional release of such Holder from
all liabilities and obligations relating to such Loss. 

         (b)     
To the extent permitted by law, each Holder who is named in such Registration
Statement as a selling stockholder, acting severally and not jointly, shall
indemnify and hold harmless the Corporation, the officers, directors, employees,
agents and representatives of the Corporation, and each person, if any, who
controls the Corporation within the meaning of the 1933 Act or the 1934 Act,
against any Losses to the extent (and only to the extent) that any such Losses
(i) are based upon and arise from the written information furnished by such
Holder to the Corporation expressly for use in such Registration Statement, (ii)
are based on a failure of such Holder to deliver or cause to be delivered the
final prospectus contained in the Registration Statement and made available by
the Corporation, if such delivery is required by applicable law, or (iii) relate
to the sale of shares by such Holder after the Corporation has notified such
Holder that an event described in Section 4(e) has occurred and has not yet
provided the Holder with a new, amended or supplemented prospectus for delivery.
Subject to the provisions of Section 6(c) below, such Holder will reimburse any
legal or other expenses as reasonably incurred by the Corporation and any such
officer, director, employee, agent, representative, or controlling person, in
connection with investigating or defending any such Loss; provided, however,
that the foregoing indemnity shall not apply to amounts paid in settlement of
any such Loss if such settlement is effected without the consent of such Holder
(which consent shall not be unreasonably withheld); and provided, further, that,
in no event shall any indemnity under this Section 6(b) exceed the net proceeds
actually received from the sale of the Registrable Securities sold by such
Holder under such Registration Statement. 

- E8 - 

         (c)     
Promptly after receipt by an indemnified party under this Section 6 of notice of
the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any indemnifying party
under this Section 6, deliver to the indemnifying party a written notice of the
commencement thereof and the indemnifying party shall have the right to
participate in and to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the reasonably incurred fees and
expenses of one such counsel for all indemnified parties to be paid by the
indemnifying party, if representation of such indemnified party by the counsel
retained by the indemnifying party would be inappropriate under applicable
standards of professional conduct due to actual or potential conflicting
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, to the extent prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under
this Section 6 with respect to such action, but the omission so to deliver
written notice to the indemnifying party will not relieve it of any liability
that it may have to any indemnified party otherwise than under this Section 6 or
with respect to any other action unless the indemnifying party is materially
prejudiced as a result of not receiving such notice. 

          (d)      In
the event that the indemnity provided in paragraph (a) or (b) of this Section 6
is unavailable or insufficient to hold harmless an indemnified party for any
reason, the Corporation and each Holder agree, severally and not jointly, to
contribute to the aggregate Losses to which the Corporation or such Holder may
be subject in such proportion as is appropriate to reflect the relative fault of
the Corporation and such Holder in connection with the statements or omissions
which resulted in such Losses; provided, however, that in no case shall such
Holder be responsible for any amount in excess of the net proceeds actually
received from the sale of the Registrable Securities sold by it under the
Registration Statement. Relative fault shall be determined by reference to
whether any alleged untrue statement or omission relates to information provided
by the Corporation or by such Holder. The Corporation and each Holder agree that
it would not be just and equitable if contribution were determined by pro rata
allocation or any other method of allocation which does not take account of the
equitable considerations referred to above. Notwithstanding the provisions of
this paragraph (d), no person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f)(1) of the 1933 Act) shall be entitled to contribution
from any person who is not guilty of such fraudulent misrepresentation. For
purposes of this Section 6, each person who controls a Holder within the meaning
of either the 1933 Act or the 1934 Act and each officer, director, employee,
agent or representative of such Holder shall have the same rights to
contribution as such Holder, and each person who controls the Corporation within
the meaning of either the 1933 Act or the 1934 Act and each officer, director,
employee, agent or representative of the Corporation shall have the same rights
to contribution as the Corporation, subject in each case to the applicable terms
and conditions of this paragraph (d). 

          (e)     
The obligations of the Corporation and each Holder under this Section 6 shall
survive the completion of any offering or sale of Registrable Securities
pursuant to a Registration Statement under this Agreement, or otherwise. 

7.      REPORTS. 

          With a
view to making available to each Holder the benefits of Rule 144 and any other
similar rule or regulation of the Commission that may at any time permit such
Holder to sell securities of the Corporation to the public without registration,
the Corporation agrees (until all of the Registrable Securities have been sold
under a Registration Statement or sold pursuant to Rule 144) to: 

          (a)      make
and keep public information available, as those terms are understood and defined
in Rule 144; 

- E9 - 

          (b)      file
with the Commission in a timely manner all reports and other documents required
of the Corporation under Section 13(a) of the 1934 Act; and 

          (c)      furnish
to such Holder, so long as such Holder owns any Registrable Securities, promptly
upon written request (i) a written statement by the Corporation, if true, that
it has complied with the reporting requirements of Rule 144, the 1933 Act and
the 1934 Act, (ii) to the extent not publicly available through the Commission's
EDGAR database, a copy of the most recent annual or quarterly report of the
Corporation and such other reports and documents so filed by the Corporation,
and (iii) such other information as may be reasonably requested by such Holder
in connection with such Holder's compliance with any rule or regulation of the
Commission which permits the selling of any such securities without
registration. 

8.      MISCELLANEOUS. 

          (a)     
Expenses of Registration. All expenses, other than underwriting discounts
and commissions and fees and expenses of counsel and other advisers to each
Holder, incurred in connection with the registrations, filings or qualifications
described herein, including (without limitation) all registration, filing and
qualification fees, printers' and accounting fees, the fees and disbursements of
counsel for the Corporation, shall be borne by the Corporation. 

          (b)      Amendment;
Waiver. Except as expressly provided herein, neither this Agreement nor any
term hereof may be amended or waived except pursuant to a written instrument
executed by the Corporation and the Holders of at least 80% of the Registrable
Securities (whether or not then outstanding). Any amendment or waiver effected
in accordance with this paragraph shall be binding upon each Holder, each future
Holder and the Corporation. The failure of any party to exercise any right or
remedy under this Agreement or otherwise, or the delay by any party in
exercising such right or remedy, shall not operate as a waiver thereof.
Notwithstanding the foregoing provisions, any amendment or waiver that affects
any particular Holder in a manner different that the other Holders shall require
such particular Holder’s prior written consent in respect thereof.

         (c)     
Notices. Any notice, demand or request required or permitted to be given
by the Corporation or a Holder pursuant to the terms of this Agreement shall be
in writing and shall be deemed delivered (i) when delivered personally or by
verifiable email or facsimile transmission, unless such delivery is made on a
day that is not a Business Day, in which case such delivery will be deemed to be
made on the next succeeding Business Day, and (ii) on the next Business Day
after timely delivery to a reputable overnight courier, addressed as follows:

If to the Corporation: 

CounterPath Corporation 
Suite 300,
One Bentall Centre 
505 Burrard Street, Box 95 
Vancouver, BC V7X 1M3

Canada 
Attn: Chief Executive Officer and Chief Financial Officer

Tel: (604) 320-3344 
Fax: (604) 320-3399 

  Email: corporate@counterpath.com 

- E10 - 

with a copy to: 

Clark Wilson LLP 
800 – 885 West
Georgia Street 
Vancouver, BC V6C 3H1 
Canada 
Attn: Virgil Z. Hlus

Tel: (604) 891-7707 
Fax: (604) 687-6314 

  Email: vzh@cwilson.com 

and if to a Holder, to such address as shall be designated by
such Holder in its Subscription Agreement or as otherwise designated by such
Holder in writing to the Corporation. 

          (d)     
Assignment. Upon the private transfer by a Holder of any Registrable
Securities, the rights of such Holder hereunder with respect to such securities
so transferred shall be assigned automatically to the transferee thereof, and
such transferee shall thereupon be deemed to be a “Holder” for purposes of this
Agreement if: (i) such transfer is made in accordance with the applicable
requirements of the Subscription Agreement; (ii) the transferee agrees in
writing with the Corporation to be bound by all of the provisions of this
Agreement, and (iii) the Corporation is furnished with written notice of the
name and address of such transferee; provided, however, that the registration
rights granted under this Agreement shall not be assigned to any person or
entity that receives any Registrable Securities in a public transaction pursuant
to an effective registration statement under the 1933 Act or pursuant to Rule
144. 

          (e)      Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an
original, and all of which together shall be deemed one and the same instrument.
This Agreement, once executed by a party, may be delivered to any other party
hereto by email or facsimile transmission. 

          (f)      Governing
Law. The contract arising out of this Agreement shall be governed by and
construed in accordance with the laws of the Province of British Columbia and
the laws of Canada applicable therein.

          (g)      Language.
It is the express wish of the Subscriber that the Subscription Agreement and any
related documentation be drawn up in English only. Il est de la volonté expresse
du souscripteur que la convention de souscription ainsi que tout document
connexe soient rédigés en langue anglaise uniquement. 

          (h)      Holder
of Record. A person is deemed to be a Holder whenever such person owns or is
deemed to own of record Registrable Securities. If the Corporation receives
conflicting instructions, notices or elections from two or more persons with
respect to the same Registrable Securities, the Corporation shall act upon the
basis of instructions, notice or election received from the record owner of such
Registrable Securities. 

          (i)      Entire
Agreement. This Agreement, together with the Subscription Agreement for the
Subscribers and together with the Agency Agreement for the Agents, constitutes
the entire agreement between the parties with respect to the subject matter of
this Agreement. 

          (j)      Headings.
The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof. 

- E11 - 

          (k)     
Third Party Beneficiaries. This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other
person. 

[Signature Pages to Follow] 

- E12 - 

          IN
WITNESS WHEREOF, the undersigned have executed this Registration Rights
Agreement as of the date first-above written. 

	 	         “Corporation”
    
	 	 
	 	         COUNTERPATH
      CORPORATION 
	 	  
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	       
       Title:   ______________________________________
	 	  
	 	 
	 	         “Subscriber”
    
	 	 
	 	      
      ____________________________________________
	 	 
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	       
       Title:  
  ______________________________________

- E13 - 

          IN
WITNESS WHEREOF, the undersigned have executed this Registration Rights
Agreement as of the date first-above written. 

	 	         “Corporation”
    
	 	 
	 	         COUNTERPATH
      CORPORATION 
	 	 
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	       
       Title:   ______________________________________
	 	 
	 	         “Agent”

	 	 
	 	         NATIONAL BANK
      FINANCIAL INC. 
	 	 
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	       
       Title:   ______________________________________
	 	 
	 	         “Agent”

	 	 
	 	         CANACCORD
      GENUITY CORP. 
	 	 
	 	By:
    ____________________________________________
	 	 
	 	         Name:
      ______________________________________
	 	       
       Title:  
  ______________________________________

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