Document:

TASEKO MINES LIMITED

SONIC ENVIRONMENTAL SOLUTIONS INC.

(the "Company")

2003 SHARE OPTION PLAN

Dated for Reference June 25, 2003

ARTICLE 1

PURPOSE AND INTERPRETATION

Purpose

1.1 The purpose of this Plan will be to advance the interests of the Company by encouraging equity participation in the Company through the acquisition of Common Shares of the Company.  It is the intention of the Company that this Plan will at all times be in compliance with the rules and policies of the TSX Venture Exchange (or "TSX Venture") and any inconsistencies between this Plan and the TSX Venture Policies whether due to inadvertence or changes in TSX Venture Policies shall be resolved in favour of the latter.

Definitions

1.2 In this Plan

Affiliate means a company that is a parent or subsidiary of the Company, or that is controlled by the same entity as the Company;

Associate has the meaning assigned by the Securities Act;

Board means the board of directors of the Company or any committee thereof duly empowered or authorized to grant options under this Plan;

Change of Control includes situations where after giving effect to the contemplated transaction and as a result of such transaction:
(i) any one Person holds a sufficient number of voting shares of the Company or resulting company to affect materially the control of the Company or resulting company, or,

(ii) any combination of Persons, acting in concert by virtue of an agreement, arrangement, commitment or understanding, hold in total a sufficient number of voting shares of the Company or its successor to affect materially the control of the Company or its successor, 

where such Person or combination of Persons did not previously hold a sufficient number of voting shares to affect materially control of the Company or its successor.  In the absence of evidence to the contrary, any Person or combination of Persons acting in concert by virtue of an agreement, arrangement, commitment or understanding, holding more than 20% of the voting shares of the Company or its successor is deemed to materially affect the control of the Company or its successor;

Common Shares means common shares without par value in the capital of the Company providing such class is listed on the TSX Venture;

Company means the Corporation named at the top hereof and includes, unless the context otherwise requires, all of its subsidiaries or affiliates and successors according to law;

Consultant means a Person or Consultant Company, other than an Employee, Officer or Director that: 
(i) provides on an ongoing bona fide basis, consulting, technical, managerial or like services to the Company or an Affiliate of the Company, other than services provided in relation to a Distribution;

(ii) provides the services under a written contract between the Company or an Affiliate and the Person or the Consultant Company;

(iii) in the reasonable opinion of the Company, spends or will spend a significant amount of time and attention on the business and affairs of the Company or an Affiliate of the Company; and

(iv) has a relationship with the Company or an Affiliate that enables the Person or Consultant Company to be knowledgeable about the business and affairs of the Company;

Directors means the directors of the Company as may be elected from time to time;

Discounted Market Price has the meaning assigned by Policy 1.1 of the TSX Venture Policies;

Disinterested Shareholder Approval means approval by a majority of the votes cast by all the Company's shareholders at a duly constituted shareholders' meeting, excluding votes attached to shares beneficially owned by Service Providers or their Associates;

Distribution has the meaning assigned by the Securities Act, and generally refers to a distribution of securities by the Company from treasury;

Effective Date for an Option means the date of grant thereof by the Board;

Employee means: 
(a)a Person who is considered an employee under the Income Tax Act (i.e. for whom income tax, employment insurance and CPP deductions must be made at source);

(b)a Person who works full-time for the Company or its subsidiary providing services normally provided by an employee and who is subject to the same control and direction by the Company over the details and methods of work as an employee of the Company, but for whom income tax deductions are not made at source; or

(c)a Person who works for the Company or its subsidiary on a continuing and regular basis for a minimum amount of time per week providing services normally provided by an employee and who is subject to the same control and direction by the Company over the details and methods of work as an employee of the Company, but for whom income tax deductions need not be made at source;

Exercise Price means the amount payable per Common Share on the exercise of an Option, as determined in accordance with the terms hereof; 

Expiry Date means the day on which an Option lapses as specified in the Option Commitment therefor or in accordance with the terms of this Plan;

Insider means 
(i) an insider as defined in the TSX Venture Policies or as defined in securities legislation applicable to the Company;

(ii) an Associate of any person who is an Insider by virtue of Section (i) above;

Investor Relations Activities has the meaning assigned by Policy 1.1 of the TSX Venture Policies, and means generally any activities or communications that can reasonably be seen to be intended to or be primarily intended to promote the merits or awareness of or the purchase or sale of securities of the Company;

Listed Shares means the number of issued and outstanding shares of the Company that have been accepted for listing on the TSX Venture but excluding dilutive securities not yet converted into Listed Shares;

Management Company Employee means a Person employed by another Person or a corporation providing management services to the Company which are required for the ongoing successful operation of the business enterprise of the Company, but excluding a corporation or Person engaged primarily in Investor Relations Activities;

Officer means a duly appointed senior officer of the Company;

Option means the right to purchase Common Shares granted hereunder to a Service Provider;

Option Commitment means the notice of grant of an Option delivered by the Company hereunder to a Service Provider and substantially in the form of Schedule A hereto;

Optioned Shares means Common Shares that may be issued in the future to a Service Provider upon the exercise of an Option;

Optionee means the recipient of an Option hereunder;

Outstanding Shares means at the relevant time, the number of outstanding Common Shares of the Company from time to time;

Participant means a Service Provider that becomes an Optionee;

Person means a company or an individual;

Plan means this Share Option Plan, the terms of which are set out herein or as may be amended;

Plan Shares means the total number of Common Shares which may be reserved for issuance as Option Shares under the Plan as provided in Section 2.2;

Regulatory Approval means the approval of the TSX Venture and any other securities regulatory authority that may have lawful jurisdiction over the Plan and any Options issued hereunder;

Securities Act means the Securities Act, R.S.B.C. 1996, c. 418, as amended from time to time;

Service Provider means a Person who is a bona fide Director, Officer, Employee, Management Company Employee or Consultant, and also includes a company, of which 100% of the share capital is beneficially owned by one or more Persons who are Service Providers;

Share Compensation Arrangement means any Option under this Plan but also includes any other stock option, stock option plan, employee stock purchase plan or any other compensation or incentive mechanism involving the issuance or potential issuance of Common Shares to a Service Provider;

Shareholders Approval means approval by a majority of the votes cast by eligible shareholders at a duly constituted shareholders' meeting;

TSX Venture means the TSX Venture Exchange and any successor thereto; and

TSX Venture Policies means the rules and policies of the TSX Venture as amended from time to time.

ARTICLE 2

SHARE OPTION PLAN

Establishment of Share Option Plan

2.1 There is hereby established a Share Option Plan to recognize contributions made by Service Providers and to create an incentive for their continuing assistance to the Company and its Affiliates.  Unless otherwise agreed by the holders thereof, any share options granted by the Company before the date of this Plan, are not included hereunder or affected hereby.

Maximum Plan Shares

2.2 The maximum aggregate number of Plan Shares that may be reserved for issuance under the Plan is 2,150,000 Common Shares unless this Plan is amended pursuant to the requirements of the TSX Venture Policies.

Eligibility

2.3 Options to purchase Common Shares may be granted hereunder to Service Providers from time to time by the Board. Service Providers that are corporate entities will be required to undertake in writing not to effect or permit any transfer of ownership or option of any of its shares, nor issue more of its shares (so as to indirectly transfer the benefits of an Option), as long as such Option remains outstanding, unless the written permission of the TSX Venture and the Company is obtained.

Options Granted Under the Plan

2.4 All Options granted under the Plan will be evidenced by an Option Commitment in the form attached as Schedule A, showing the number of Optioned Shares, the term of the Option, a reference to vesting terms, if any, and the Exercise Price.

2.5 Subject to specific variations approved by the Board, all terms and conditions set out herein will be deemed to be incorporated into and form part of an Option Commitment made hereunder.

Limitations on Issue

2.6 Subject to Section 2.9 the following restrictions on issuances of Options are applicable under the Plan, no Service Provider can be granted an Option if that Option would result in the total number of Options, together with all other Share Compensation Arrangements granted to such Service Provider in the previous 12 months, exceeding 5% of the outstanding Listed Shares (unless the Company is classified as a Tier 1 issuer) by:
(a) the TSX Venture and has obtained Disinterested Shareholder Approval under Section 2.9 (a)(iii) to do so);

(b) no Options can be granted under the Plan if the Company is designated "Inactive" (as defined in TSX Venture Policies) by the TSX Venture;

(c) the aggregate number of Options granted to Service Providers conducting Investor Relations Activities in any 12-month period must not exceed 2% of the Listed Shares, calculated at the time of grant, without the prior consent of TSX Venture; and

(d) the aggregate number of options granted to any one Consultant in any 12-month period must not exceed 2% of the Listed Shares, calculated at the time of grant, without the prior consent of TSX Venture.

Options Not Exercised

2.7 In the event an Option granted under the Plan expires unexercised or is terminated by reason of dismissal of the Optionee for cause or is otherwise lawfully cancelled prior to exercise of the Option, the Optioned Shares that were issuable thereunder will be returned to the Plan and will be eligible for re-issue.

Powers of the Board

2.8 The Board will be responsible for the general administration of the Plan and the proper execution of its provisions, the interpretation of the Plan and the determination of all questions arising hereunder.  Without limiting the generality of the foregoing, the Board has the power to
(a) allot Common Shares for issuance in connection with the exercise of Options;

(b) grant Options hereunder;

(c) subject to Regulatory Approval, amend, suspend, terminate or discontinue the Plan, or revoke or alter any action taken in connection therewith, except that no general amendment or suspension of the Plan will, without the written consent of all Optionees, alter or impair any Option previously granted under the Plan unless as a result of a change in TSX Venture Policies or the Company's tier classification thereunder;

(d) delegate all or such portion of its powers hereunder as it may determine to one or more committees of the Board, either indefinitely or for such period of time as it may specify, and thereafter each such committee may exercise the powers and discharge the duties of the Board in respect of the Plan so delegated to the same extent as the Board is hereby authorized so to do; and

(e) may in its sole discretion amend this Plan (except for previously granted and outstanding Options) to reduce the benefits that may be granted to Service Providers (before a particular Option is granted) subject to the other terms hereof.

Terms or Amendments Requiring Disinterested Shareholder Approval

2.9 The Company will be required to obtain prior Disinterested Shareholder Approval prior to any of the following actions becoming effective:
(a) the Plan, together with all of the Company's previously established and outstanding stock option plans or grants, could result at any time in:
(i) the aggregate number of shares reserved for issuance under stock options granted to Insiders exceeding 10% of the Listed Shares; 

(ii) the number of Optioned Shares issued to Insiders within a one-year period exceeding 10% of the Listed Shares; or, 

(iii) in the case of a Tier l Issuer only, the issuance to any one Optionee, within a 12-month period, of a number of shares exceeding 5% of Listed Shares; or

(b) any reduction in the Exercise Price of an Option previously granted to an Insider.

ARTICLE 3

TERMS AND CONDITIONS OF OPTIONS

Option Exercise Price

3.1 The Exercise Price of an Option will be set by the Board at the time such Option is allocated under the Plan, and cannot be less than the Discounted Market Price.

Term of Option

3.2 An Option can be exercisable for a maximum of 10 years from the Effective Date for a Tier 1 Company, or five years from the Effective Date for a Tier 2 Company.

Option Amendment

3.3 Subject to Section 2.9(b), the Exercise Price of an Option may be amended only if at least six (6) months have elapsed since the later of the date of commencement of the term of the Option, the date the Company's shares commenced trading on the TSX Venture, or the date of the last amendment of the Exercise Price.

3.4 An Option must be outstanding for at least one year before the Company may extend its term, subject to the limits contained in Section 3.2.

Vesting of Option Rights

3.5 Any proposed amendment to the terms of an Option must be approved by the TSX Venture prior to the exercise of such Option.

Vesting of Options

3.6 Subject to Section 3.7, vesting of Options is otherwise at the discretion of the Board, and will generally be subject to:
(a) the Service Provider remaining employed by or continuing to provide services to the Company or any of its subsidiaries and Affiliates as well as, at the discretion of the Board, achieving certain milestones which may be defined by the Board from time to time or receiving a satisfactory performance review by the Company or its subsidiary or affiliate during the vesting period; or

(b) remaining as a Director of the Company or any of its subsidiaries or Affiliates during the vesting period.

3.7 If the Company is a Tier 2 Issuer and the Plan Shares exceed 10% of the Listed Shares, any Options granted under the Plan will vest in accordance with the vesting schedule attached as Schedule B and may be exercised only after vesting.

Vesting of Options Granted for Investor Relations Activities

3.8 Subject to Section 3.7, Options granted to Consultants conducting Investor Relations Activities will vest:
(a) over a period of not less than 12 months as to 25% on the date that is three months from the date of grant, and a further 25% on each successive date that is three months from the date of the previous vesting; or

(b) such longer vesting period as the Board may determine.

Variation of Vesting Periods

3.9 At the time an Option is granted which carries vesting provisions, the Board may vary such vesting provisions provided in Section 3.7 and Section 3.8, subject to Regulatory Approval.

Optionee Ceasing to be Director, Employee or Service Provider

3.10 No Option may be exercised after the Service Provider has left the employ/office or has been advised his services are no longer required or his service contract has expired, except as follows:
(a) in the case of the death of an Optionee, any vested Option held by him at the date of death will become exercisable by the Optionee's lawful personal representatives, heirs or executors until the earlier of one year after the date of death of such Optionee and the date of expiration of the term otherwise applicable to such Option;

(b) in the case of a Tier 1 Company, Options granted to any Service Provider must expire within 90 days after the date the Optionee ceases to be employed with or provide services to the Company, but only to the extent that such Optionee was vested in the Option at the date the Optionee ceased to be so employed or to provide services to the Company; 

(c) in the case of a Tier 2 Company, Options granted to a Service Provider conducting Investor Relations Activities must expire within 30 days of the date the Optionee ceases to conduct such activities, but only to the extent that such Optionee was vested in the Option at the date the Optionee ceased to conduct such activities, 

(d) in the case of a Tier 2 Company, Options granted to an Optionee other than one conducting Investor Relations Activities must expire within 90 days after the Optionee ceases to be employed with or provide services to the Company, but only to the extent that such Optionee was vested in the Option at the date the Optionee ceased to be so employed or to provide services to the Company; and

(e) in the case of an Optionee being dismissed from employment or service for cause, such Optionee's Options, whether or not vested at the date of dismissal will immediately terminate without right to exercise same.

Non Assignable

3.11 Subject to Section 310(a), all Options will be exercisable only by the Optionee to whom they are granted and will not be assignable or transferable.

Adjustment of the Number of Optioned Shares

3.12 The number of Common Shares subject to an Option will be subject to adjustment in the events and in the manner following:
(a) in the event of a subdivision of Common Shares as constituted on the date hereof, at any time while an Option is in effect, into a greater number of Common Shares, the Company will thereafter deliver at the time of purchase of Optioned Shares hereunder, in addition to the number of Optioned Shares in respect of which the right to purchase is then being exercised, such additional number of Common Shares as result from the subdivision without an Optionee making any additional payment or giving any other consideration therefor;

(b) in the event of a consolidation of the Common Shares as constituted on the date hereof, at any time while an Option is in effect, into a lesser number of Common Shares, the Company will thereafter deliver and an Optionee will accept, at the time of purchase of Optioned Shares hereunder, in lieu of the number of Optioned Shares in respect of which the right to purchase is then being exercised, the lesser number of Common Shares as result from the consolidation;

(c) in the event of any change of the Common Shares as constituted on the date hereof, at any time while an Option is in effect, the Company will thereafter deliver at the time of purchase of Optioned Shares hereunder the number of shares of the appropriate class resulting from the said change as an Optionee would have been entitled to receive in respect of the number of Common Shares so purchased had the right to purchase been exercised before such change;

(d) in the event of a capital reorganization, reclassification or change of outstanding equity shares (other than a change in the par value thereof) of the Company, a consolidation, merger or amalgamation of the Company with or into any other company or a sale of the property of the Company as or substantially as an entirety at any time while an Option is in effect, an Optionee will thereafter have the right to purchase and receive, in lieu of the Optioned Shares immediately theretofore purchasable and receivable upon the exercise of the Option, the kind and amount of shares and other securities and property receivable upon such capital reorganization, reclassification, change, consolidation, merger, amalgamation or sale which the holder of a number of Common Shares equal to the number of Optioned Shares immediately theretofore purchasable and receivable upon the exercise of the Option would have received as a result thereof.  The subdivision or consolidation of Common Shares at any time outstanding (whether with or without par value) will not be deemed to be a capital reorganization or a reclassification of the capital of the Company for the purposes of this Section 3.12(d);

(e) an adjustment will take effect at the time of the event giving rise to the adjustment, and the adjustments provided for in this Section are cumulative;

(f) the Company will not be required to issue fractional shares in satisfaction of its obligations hereunder.  Any fractional interest in a Common Share that would, except for the provisions of this Section 3.12(f), be deliverable upon the exercise of an Option will be cancelled and not be deliverable by the Company; and

(g) if any questions arise at any time with respect to the Exercise Price or number of Optioned Shares deliverable upon exercise of an Option in any of the events set out in this Section 3.12, such questions will be conclusively determined by the Company's auditors, or, if they decline to so act, any other firm of Chartered Accountants, in Vancouver, British Columbia (or in the city of the Company's principal executive office) that the Company may designate and who will have access to all appropriate records and such determination will be binding upon the Company and all Optionees.

ARTICLE 4

COMMITMENT AND EXERCISE PROCEDURES

Option Commitment

4.1 Upon grant of an Option hereunder, an authorized officer of the Company will deliver to the Optionee an Option Commitment detailing the terms of such Options and upon such delivery the Optionee will be subject to the Plan and have the right to purchase the Optioned Shares at the Exercise Price set out therein subject to the terms and conditions hereof.

Manner of Exercise

4.2 An Optionee who wishes to exercise his Option may do so by delivering
(a) a written notice to the Company specifying the number of Optioned Shares being acquired pursuant to the Option; and

(b) cash or a certified cheque payable to the Company for the aggregate Option Exercise Price for the Optioned Shares being acquired.

Delivery of Certificate and Hold Period

4.3 As soon as practicable after receipt of the notice of exercise described in Section 4.2 and payment in full for the Optioned Shares being acquired, the Company will direct its transfer agent to issue a certificate to the Optionee for the appropriate number of Optioned Shares. Such certificate issued will bear a legend stipulating any resale restrictions required under applicable securities laws.  Further, if the Company is a Tier 2 Issuer, or the Exercise Price is set below the then current market price of the Common Shares on the TSX Venture, the certificate will also bear a legend stipulating that the Optioned Shares are subject to a four-month TSX Venture hold period commencing the date of the Option Commitment.

ARTICLE 5

GENERAL

Employment and Services

5.1 Nothing contained in the Plan will confer upon or imply in favour of any Optionee any right with respect to office, employment or provision of services with the Company, or interfere in any way with the right of the Company to lawfully terminate the Optionee's  office, employment or service at any time pursuant to the arrangements pertaining to same.  Participation in the Plan by an Optionee will be voluntary.

No Representation or Warranty

5.2 The Company makes no representation or warranty as to the future market value of Common Shares issued in accordance with the provisions of the Plan or to the effect of the Income Tax Act (Canada) or any other taxing statute governing the Options or the Common shares issuable thereunder or the tax consequences to a Service Provider.  Compliance with applicable securities laws as to the disclosure and resale obligations of each Participant is the responsibility of such Participant and not the Company.

Interpretation

5.3 The Plan will be governed and construed in accordance with the laws of the Province of British Columbia.

Amendment of the Plan

5.4 The Board reserves the right, in its absolute discretion, to at any time amend, modify or terminate the Plan with respect to all Common Shares in respect of Options which have not yet been granted hereunder.  Any amendment to any provision of the Plan will be subject to any necessary Regulatory Approvals unless the effect of such amendment is intended to reduce (but not to increase) the benefits of this Plan to Service Providers.

SCHEDULE A

SHARE INCENTIVE PLAN

OPTION COMMITMENT

Notice is hereby given that, effective this ________ day of ________________, __________ (the "Effective Date") SONIC ENVIRONMENTAL SOLUTIONS INC. (the "Company") has granted to ___________________________________________ (the "Service Provider") , an Option to acquire ______________ Common Shares ("Optioned Shares") up to 5:00 p.m. Vancouver Time on the __________ day of ____________________, __________ (the "Expiry Date") at a Option Exercise Price of Cdn$____________ per share.

At the date of grant of the Option, the Company is classified as a Tier ____ company under TSX Venture Policies.

Optioned Shares will vest and may be exercised as follows:

____________In accordance with the vesting provisions set out in Schedule B of the Plan

or

____________As follows: [INSERT VESTING TERMS]

The grant of the Option evidenced hereby is made subject to the terms and conditions of the Company's Share Plan, the terms and conditions of which are hereby incorporated herein.

To exercise your Option, deliver a written notice specifying the number of Optioned Shares you wish to acquire, together with cash or a certified cheque payable to the Company for the aggregate Exercise Price, to the Company.  A certificate for the Optioned Shares so acquired will be issued by the transfer agent as soon as practicable thereafter and will bear a minimum four month non-transferability legend from the date of this Option Commitment. A Tier 1 Company may grant stock options without a hold period, provided the exercise price of the options is set at or above the market price of the Company's shares rather than below.

The Company and the Service Provider represent that the Service Provider under the terms and conditions of the Plan is a bona fide [EMPLOYEE/ CONSULTANT/MANAGEMENT COMPANY EMPLOYEE] __________________________________ of the Company, entitled to receive Options under TSX Venture Exchange Policies.

SONIC ENVIRONMENTAL SOLUTIONS INC.

                                                  

Secretary

SCHEDULE B

SHARE OPTION PLAN 

[POLICY ONLY REQUIRES THAT OPTIONS VEST OVER 18 MONTHS]

VESTING SCHEDULE 

Options granted pursuant to the Plan to Directors, Officers and all Employees and Consultants employed or retained by the Company for a period of more than six months at the time the Option is granted will vest as follows:
(a) 1/3 of the total number of Options granted will vest six months after the date of grant;

(b) a further 1/3 of the total number of Options granted will vest one year after the date of grant; and 

(c) the remaining 1/3 of the total number of Options granted will vest eighteen months after the date of grant.

Options granted pursuant to the Plan to an Employee or Consultant who has been employed by the Company for a period of less than six months at the time the Option is granted will vest as follows:
(a) 1/3 of the total number of Options granted will vest one year after the date of grant;

(b) a further 1/3 of the total number of Options granted will vest eighteen months after the date of grant; and 

(c) the remaining 1/3 of the total number of Options granted will vest two years after the date of grant.

Options granted to Consultants retained by the Company pursuant to a short term contract or for a specific project with a finite term, will be subject to such vesting provisions determined by the Board of Directors of the Company at the time the Option Commitment is made, subject to Regulatory Approval.

Options granted to Service Providers involved in Investor Relations Activities shall vest in accordance with Section 3.8 of the Plan.Sonic Environmental Solutions Inc

Sonic Environmental Solutions Inc.

(the "Purchaser")

1774 West 2nd Avenue

Vancouver, British Columbia V6J 1H6

_______________________

Reference Date:  August 1, 2003

	
To:
	
Proline Industries Inc. the sole shareholder of

Contech PCB Containment Technology Inc. 

(herein the "Vendor")

	
And:
	
Matt Wilson ("Matt")

Diane Wilson ("Diane")

(together the "Guarantors")

Dear Sirs and Madame:

Agreement to purchase 100 outstanding Class A Voting shares of Contech PCB Containment Technology Inc. (the "Company") from the Vendor by Sonic Environmental Solutions Inc. (the "Purchaser")

This letter will confirm our agreement (herein the "Agreement") for the acquisition by the Purchaser from the Vendor of the 100 issued and outstanding Class A Voting shares (the "Purchased Shares") of the Company and from Matt and Diane, the outstanding loan account due to Matt and Diane each as to one half.  The Guarantors have agreed to personally guarantee the representations and covenants of the Vendor herein.  The Vendor, Matt, Diane, the Purchaser and the Company are herein each a "Party" or the "Parties" together.

The Company is a body corporate subsisting under and registered pursuant to the laws of British Columbia and its only business is the application of a non-proprietary process to reduce the volume of PCB contaminated ballasts and the recycling and safe disposal of related waste products (the "Company's Business").

The following are schedules which are attached to and form a part of this Agreement:
(a) Schedule A - Financial Statements of the Company of April 30th, 2003 and 2002;

(b) Schedule B - List of Company's assets and liabilities as of July 31, 2003 (to be updated to and including the Closing Date (as defined)) comprising generally:
(i)Accounts receivable list;

(ii)Prepaid expenses;

(iii)Permits and Insurance;

(iv)Capital Assets and

(v)Liabilities List;

(c) Schedule C - Form of Escrow Agreement;

In connection with the foregoing, therefore, all parties hereby acknowledge and agree that:

ARTICLE 1

PURCHASE AND SALE OF THE ALL OF THE PURCHASED SHARE

Purchase and Sale

1.1 On the Closing Date (as defined in Article 5) and subject to the terms and conditions hereof, the following shall occur:
(a) the Vendor shall sell and transfer 100% of all right, title and interest in and to the Purchased Shares to the Purchaser and the Purchaser agrees to purchase all of the Purchased Shares from the Vendor; and

(b) Matt and Diane shall sell and assign to the Purchaser his interest in the director's loan account ("Loan") of $105,738 which is due him from the Company and the Purchaser shall purchase the Loan and the Purchased Shares all for the consideration to be paid by the Purchaser described in Section 1.2.

Purchase Consideration

1.2 The total purchase price (the "Purchase Consideration") for all of the Purchased Sharesand the Loan shall be $195,000 comprising:
(a) 100,000 common shares of the Purchaser having an agreed value of $1.25 per share (the "Sonic Shares");

(b) the $70,000 to be paid by the Purchaser for the Loan to Matt and Diane shall be paid to each of them as to one-half as to $25,000 on the Closing Date and $3,000 on the first day of each calendar month thereafter for 15 months until the balance of $45,000 has been paid.

Escrow of Sonic Shares

1.3 The Vendor agrees that the Sonic Shares shall subject to the terms of a voluntary escrow agreement, in the form attached as Schedule C, and will be released to the Vendor over a 24 month period from the Closing Date, as to 25,000 Sonic Shares every six months commencing on the date that is six months from the Closing Date.

Guarantee

1.4 The Guarantors, for valuable consideration hereby acknowledged, do hereby unconditionally guarantee, jointly and severally, the representations, warranties and covenants of the Vendor herein and as well agree to the non-competition undertakings provided for in Section 5.5  hereof.

ARTICLE 2

WARRANTIES, REPRESENTATIONS AND COVENANTS

BY THE COMPANY, THE GUARANTORS AND THE VENDOR

Warranties, Representations and Covenants by the Company, Guarantors and the Vendor

2.1 In order to induce the Purchaser to enter into this Agreement and consummate the purchase and sale of the Purchased Sharesand the Loan, each of the Company, the Guarantors and the Vendor jointly and severally hereby warrant to, represent to and covenant with the Purchaser that now (except where otherwise provided) and as at the Closing Date, that:
(a) the Company is duly incorporated under the laws of British Columbia, is validly existing and is in good standing with respect to all statutory filings required by the applicable corporate laws;

(b) the Company has the requisite power, authority and capacity to own and use all of its business assets and to carry on the Company's Business as presently conducted by it;

(c) at the Closing Date, the Company will own and possess and have good and marketable title its assets described in Schedule B free and clear of all actual or threatened liens, charges, options, encumbrances, voting agreements, voting trusts, demands, limitations and restrictions of any nature whatsoever;

(d) the Company holds all licenses and permits described on Schedule B which are all such licenses and permits required for the conduct in the ordinary course of the operations of the Company's Business, including licenses and permits required to transport and process PCB contaminated material, and for any other business operation traditionally carried on by the Company and neither the execution and delivery of this Agreement nor the completion of the transactions contemplated hereby will give any person the right to terminate or cancel any permit, license, right or other valuable interest held by the Company;

(e) the authorized capital of the Company consists of TWO HUNDRED AND FORTY THOUSAND (240,000) SHARES divided into TEN THOUSAND (10,000) Class "A" Voting shares without par value, TEN THOUSAND (10,000) Class "B" Voting shares with a par value of $0.01 each, TEN THOUSAND (10,000) Class "C" Non-Voting shares with a par value of $0.01 each, TEN THOUSAND (10,000) Class "D" Non-Voting shares with a par value of $0.01 each, ONE HUNDRED THOUSAND (100,000) Class "E" Non-Voting Preference shares with a par value of $0.01 each, and ONE HUNDRED THOUSAND (100,000) Class "F" Non-Voting Preference shares with a par value of $0.01 each, with the special rights and privileges and restrictions as set out in the Articles of the Company of which 100 Class A Voting shares will be issued and outstanding as fully paid and non-assessable (100 fully diluted) as of the Closing Date;

(f) the Vendor has good and marketable title to and is the sole legal and beneficial owner of the Purchased Shares free and clear of liens, bank security interests or other encumbrances of any kind or nature;

(g) the Purchased Shares are validly issued and outstanding and fully paid and non-assessable in the capital of the Company, and the Purchased Shares owned by the Vendor free and clear of all actual or threatened liens, charges, options, encumbrances, voting agreements, voting trusts, demands, limitations and restrictions of any nature whatsoever;

(h) other than securities laws of general application (respecting which the transactions contemplated hereby are understood by the parties to be exempt from same), there are no restrictions of any nature whatsoever affecting the right of the Vendor to transfer the Purchased Shares to the Purchaser;

(i) the Vendor has the power and capacity to own and dispose of the Purchased Shares and is not bankrupt or under any legal restriction  The Purchased Shares do not constitute substantially all of the undertaking of the Vendor of if it does, the Vendor has obtained the approval of its shareholders to complete the transaction contemplated hereby;

(j) this Agreement constitutes a legal, valid and binding obligation of each of the Guarantors, Vendor, and the Company and is enforceable against each of the Company, Guarantors and the Vendor in accordance with its respective terms, except as enforcement may be limited by laws of general application affecting the rights of creditors;

(k) the Company has not and has not committed itself to provide any person, firm or corporation with any agreement, option or right, consensual or arising by law, present or future, contingent or absolute, or capable of becoming an agreement, option or right:
(i) to require it to issue any further or other shares in its share capital, or any other security convertible or exchangeable into shares in its share capital, or to convert or exchange any securities into or for shares in its share capital;

(ii) for the issue and allotment of any of the authorized but unissued shares in its share capital;

(iii) to require it to purchase, redeem or otherwise acquire any of the issued and outstanding shares in its share capital; or

(iv) to purchase or otherwise acquire any shares in its share capital;

(l) no other person, firm or corporation has any agreement, option or right capable of becoming an agreement for the purchase of the Purchased Share;

(m) save and except as may be set forth on the Schedules hereto, there are no material liabilities, contingent or otherwise, existing on the date hereof in respect of which the Company may be liable on or after the completion of the transactions contemplated by this Agreement other than liabilities incurred in the ordinary course of the Company's Business, none of which are individually or in aggregate materially adverse to the business, operations, affairs or financial conditions of the Company;

(n) no dividend, bonus or other distribution to the Vendor by the Company will be declared, paid or authorized up to and including the Closing Date, and the Company has not and has not committed itself to confer upon, or pay to or to the benefit of, any entity, any unusual or extraordinary benefit having monetary value, nor any bonus or any salary;

(o) there is no basis for and there are no actions, suits, judgments, investigations or proceedings outstanding or pending or, to the best of the knowledge, information and belief of each of the Company and the Vendor, after making due inquiry, threatened against or affecting the Company at law or in equity or before or by any federal, state, municipal or other governmental department, commission, board, bureau or agency;

(p) the Company is not in breach of any laws, ordinances, statutes, regulations, by-laws, orders or decrees to which it is subject or which apply to it;

(q) the Company has not experienced, nor are either of the Company or the Vendor aware of, any actual or pending occurrence or event including any actual or pending changes in any law or policy in connection with an environmental business which has had, or might reasonably be expected to have, a materially adverse affect on the Company's Business;

(r) the Company is not, nor until or at the Closing Date will it be, in breach of any provision or condition of, nor has it done or omitted anything that, with or without the giving of notice or lapse or both, would constitute a breach of any provision or condition of, or give rise to any right to terminate or cancel or accelerate the maturity of any payment under, any deed of trust, contract, certificate, consent, permit, license or other instrument to which it is a party, by which it is bound or from which it derives benefit, any judgment, decree, order, rule or regulation of any court or governmental authority to which it is subject, or any statute or regulation applicable to it, to an extent that, in the aggregate, has a material adverse affect on it;

(s) the Company has not committed to making and until the Closing Date will not make or commit itself to:
(i) guarantee, or agree to guarantee, any indebtedness or other obligation of any person or corporation; or

(ii) waive or surrender any right of material value;

(t) until the Closing Date the Company will:
(i) maintain its assets including all permits and licenses in a manner consistent with good business practices and in compliance with applicable law; and

(ii) not enter into any material transaction or assume or incur any material liability outside the normal course of its business;

(u) the Vendor acknowledges that the Sonic Shares will be issued under certain exemptions from the registration and prospectus filing requirements otherwise applicable under the Securities Act (British Columbia) and as a consequence the Vendor will not receive a prospectus or registration statement in regards to the Sonic Shares;

(v) the Vendor acknowledges and agrees that the Sonic Shares have not been and will not be qualified or registered under the securities laws of the Province of British Columbia and other Provinces of Canada nor under any federal or state laws of the United States and, as such, the Vendor will be subject to restrictions in selling or transferring such Shares under applicable law and by terms of this Agreement; and

(w) the making of this Agreement, the completion of the transactions contemplated hereby and the performance of and compliance with the terms hereof does not and will not:
(i) conflict with or result in a breach of or violate any of the terms, conditions or provisions of the incorporation documents of the Company or the Vendor;

(ii) conflict with or result in a breach of or violate any of the terms, conditions or provisions of any law, judgment, order, injunction, decree, regulation or ruling of any court or governmental authority, domestic or foreign, to which either the Company, the Guarantors or the Vendor is subject, or constitute or result in a default under any agreement, contract or commitment to which any of the Company, the Guarantors or the Vendor is a party;

(iii) give to any party the right of termination, cancellation or acceleration in or with respect to any permit, license, agreement, contract or commitment to which the Company is a party;

(iv) give to any government or governmental authority, or any municipality or any subdivision thereof, including any governmental department, commission, bureau, board or administration agency, any right of termination, cancellation or suspension of, or constitute a breach of or result in a default under, any permit, license, control or authority issued to the Company which is necessary or desirable in connection with the conduct and operations of the Company's Business and the ownership or leasing of its business assets; or

(v) constitute a default by the Company, or any event which, with the giving of notice or lapse of time or both, might constitute an event of default, under any agreement, contract, indenture or other instrument relating to any indebtedness of the Company which would give any party to that agreement, contract, indenture or other instrument the right to accelerate the maturity for the payment of any amount payable under that agreement, contract, indenture or other instrument;

(x) the Company has filed any necessary tax returns for previous years and has not received any notice of objection or reassessment; and

(y) the Company and Matt and Diane represent that the Company is duly indebted to Matt and Diane in the amount of $105,738 and Matt and Diane represent they have not pledged or encumbered the Loan in any way.

ARTICLE 3

WARRANTIES, REPRESENTATIONS AND COVENANTS BY THE PURCHASER

Warranties, Representations and Covenants by the Purchaser

3.1 In order to induce each of the Company and the Vendor to enter into this Agreement, the Purchaser hereby represents to and covenants with each of the Company and the Vendor that now and as of the Closing Date:
(a) the Purchaser is a corporation duly continued into the jurisdiction of British Columbia, is validly existing and is in good standing with respect to all statutory filings required by the Company Act (British Columbia);

(b) the Purchaser has the requisite power, authority and capacity to own and use all of its business assets and to carry on its business as presently conducted by it;

(c) the Purchaser's publicly filed corporate and business information constitutes full, true and plain disclosure of its business affairs and prospects

(d) the authorized capital of the Purchaser consists of 100,000,000 common shares without par value, of which 10,844,378 are issued on the date of this Agreement;

(e) all of the issued and outstanding shares of the Purchaser are listed and posted for trading on the TSX Venture Exchange ("TSXV"), and the Purchaser is not in material default of any of the terms and conditions of its listing agreement with the TSXV or of any of the rules and policies of the TSXV;

(f) the Purchaser will allot and issue the Sonic Shares to the Vendor on the Closing Date as fully paid and non-assessable in the capital of the Purchaser subject to the general resale restrictions under the Securities Act (British Columbia) and the provisions of the Escrow Agreement.

ARTICLE 4

CONDITIONS PRECEDENT TO CLOSING

Purchaser's Conditions Precedent prior to the Closing Date

4.1 The obligations of the Purchaser under this Agreement to Close are further subject to the following conditions for the exclusive benefit of the Purchaser to be fulfilled in all material aspects in the reasonable opinion of the Purchaser or in the Purchaser's discretion to be waived by the Purchaser prior to or at the Closing:
(a) the Company, the Guarantors and the Vendor shall have complied with all warranties, representations, covenants and agreements herein agreed to be performed or caused to be performed by any of them on or before the Closing Date;

(b) the Purchaser shall have obtained TSX Venture Exchange acceptance of the transactions contemplated hereby;

(c) there shall have occurred no material loss or destruction of or damage to the Company, any of its assets, any of the Company's Business or the Purchased Shares in the reasonable opinion of the Purchaser;

(d) no action or proceeding at law or in equity shall be pending or threatened by any person, company, firm, governmental authority, regulatory body or agency to enjoin or prohibit:
(i) the purchase or transfer of any of the Purchased Shares contemplated by this Agreement or the right of the Vendor to dispose of any of the Purchased Share; 

(ii) the transfer of the Loan; or

(iii) the right of the Company to conduct its operations and carry on, in the normal course, its business and operations as it has carried on in the past;

(e) the Company and the Vendor will cause the Company until Closing, during normal business hours, and limited to the verification only of the Vendor's and the Company's representations herein:
(i) make available for inspection by the counsel, auditors and representatives of the Purchaser, at such location as is appropriate, the Company's books, records, contracts, documents, correspondence and other written materials, and afford such persons every reasonable opportunity to make copies thereof and take extracts therefrom at the sole cost of the Purchaser, provided such persons do not unduly interfere in the operations of the Company;

(ii) authorize and permit such persons at the risk and the sole cost of the Purchaser, and only if such persons do not unduly interfere in the operations of the Company, to attend at all of its places of business, inspect its assets and financial records; and

(iii) require the Company's management personnel to respond to all reasonable inquiries concerning the Company's Business, its assets or the conduct of its business relating to its liabilities and obligations;

(f) the delivery by the Company and Vendor to the Purchaser of an opinion of the counsel for the Company, in a form satisfactory to the Purchaser's counsel (respecting subparagraphs (i) to (v) below), dated as at the date of Closing together with the certificate of one officer of the Company (regarding the facts set out in subparagraphs (vi) and (vii)), to the effect that:
(i) the Company is a corporation duly incorporated under the laws of its jurisdiction of incorporation, is validly existing and is in good standing with respect to all statutory filings required by the applicable corporate laws;

(ii) the Company has the requisite corporate power, authority and capacity to own and use all of its assets and to carry on its business as presently conducted by it;

(iii) the Vendor has taken all necessary proceedings to sell and transfer all the Purchased Shares under this Agreement;

(iv) the number of authorized and issued shares in the share capital of the Company are as warranted by the Company and the Vendor, and the Purchased Shares has been duly authorized, validly issued and outstanding as fully paid and non-assessable;

(v) all necessary steps and corporate proceedings have been taken by the Company and the Vendor to permit the Purchased Shares to be duly and validly transferred to and registered in the name of the Purchaser as at the Closing Date;

(vi) that the Company's representations and the Schedules in this Agreement (as updated) are true and correct on the Closing Date and that based on actual knowledge and belief, the officers know of no claims, judgments, actions, suits, litigation, proceedings or investigations, actual, pending or threatened, against either the Company or the Vendor which might materially affect either the Company, its assets or the Company's Business or which could result in any material liability to either of the Company, its assets or the Company's Business; and 

(vii) as to all other legal matters of a like nature pertaining to the Vendor, the Company, its assets, the Company's Business and to the transactions contemplated hereby as the Purchaser or the Purchaser's counsel may require on reasonable notice.

Company's and Vendor's Conditions Precedent

4.2 The obligations of the Vendor under this Agreement to Close are further subject to the following conditions for the exclusive benefit of the Vendor to be fulfilled in all material aspects in the reasonable opinion of the Vendor or in the Vendor's discretion, to be waived by the Vendor prior to or at the Closing:
(a) the Purchaser shall have complied with all warranties, representations, covenants and agreements herein agreed to be performed or caused to be performed by the Purchaser on or before the Closing Date;

(b) there has occurred no material loss or destruction of or damage to the Purchaser's business or material assets;

(c) no action or proceeding at law or in equity shall be pending or threatened by any person, company, firm, governmental authority, regulatory body or agency to enjoin or prohibit:
(i) the issuance of the Sonic Shares; or

(ii) the right of the Purchaser to conduct its operations and carry on, in the normal course, its business and operations as it has carried on in the past;

(d) an officer of the Purchaser has provided a certificate substantially similar to that referred to in 4.1(f)(vi) above.

Parties' Mutual Condition Precedent

4.3 The Closing shall also be conditional upon and subject to the condition, which may not be waived by the parties, that the TSXV will have approved in principle the transaction contemplated by this Agreement and the issuance by the Purchaser to the Vendor of the Sonic Shares by the Closing Date, which acceptance or approvals the Purchaser hereby agrees to diligently seek after execution hereof and which if not obtained within 120 days of the date of execution shall hereby permit the Vendor hereto to terminate this agreement on 7 days written notice (unless final TSXV acceptance is obtained with such 7 day period).

Responsibility for  Costs

4.4 The Purchaser shall be responsible to bear the reasonable costs related to the transactions contemplated hereby whether or not the transactions consummate from and after August 1, 2003.

ARTICLE 5

CLOSING AND POST-CLOSING MATTERS

Closing and Closing Date

5.1 The closing (the "Closing") of the within purchase and delivery of the Purchased Shares and the Loan, shall occur on the day which is 3 calendar days following the satisfaction of all of the conditions precedent which are set out in Article 4 hereinabove (the "Closing Date"), or on such earlier or later Closing Date as may be agreed to in advance and in writing by each of the Parties hereto.  The Closing will occur at the offices of counsel for the Purchaser, Lang Michener, Barristers & Solicitors, at 2:00 p.m. (Vancouver time) on the Closing Date.  The parties will target September 15, 2003 as the Closing Date.

Latest Closing Date

5.2 If the Closing Date has not occurred within 120 days of the date hereof the obligation to close may be terminated  on 7 days notice by any party unless all the Parties hereto agree in writing to grant an extension of the Closing Date.

Documents to be delivered by the Company, Matt, Diane and the Vendor prior to the Closing Date

5.3 Not less than one business day prior to the Closing Date, and in addition to the documentation which is required by the agreements and conditions precedent which are set forth hereinabove, the Company and the Vendor shall also execute and deliver or cause to be delivered all such other documents, resolutions and instruments as may be necessary, in the opinion of counsel for the Purchaser, acting reasonably, to transfer all of the Purchased Shares to the Purchaser free and clear of all liens, charges and encumbrances, and in particular including, but not being limited to:
(a) the share certificate representing the Purchased Shares registered in the name of the Vendor, duly endorsed for transfer to the Purchaser with irrevocable stock powers instructing and authorizing the Purchaser's counsel or its assigns to transfer the Purchased Shares to the Purchaser;

(b) an assignment of the Loan in a form provided by the Purchaser prior to the Closing Date;

(c) copies of or possession of as the Purchaser may reasonably require of all corporate records, material agreements, asset lists, intangible property and rights for the Company's Business and books of account of the Company and including, without limiting the generality of the foregoing, a copy of all minute books, share register books, share certificate books and annual reports and business records of the Company;

(d) a certificate of one officer of the Company, dated as of the Closing Date pursuant to 4.1(f)(vii) attached to and confirming the accuracy of an updated Schedule B;

(e) the Escrow Agreement duly executed by the Vendor; and

(f) an opinion of counsel to the Company, dated as at the Closing Date, and addressed to the Purchaser and its counsel, in form referred to in Section 4.1(f).

Documents to be delivered by the Purchaser prior to the Closing Date

5.4 Not less than one business day prior to the Closing Date, and in addition to the documentation which is required by the agreements and conditions precedent which are set forth hereinabove, the Purchaser shall also execute and deliver or cause to be delivered all such documents, resolutions and instruments as are necessary, in the opinion of counsel for the Company and the Vendor, acting reasonably, to effectively issue to the Vendor the Purchased Consideration free and clear of all liens, charges and encumbrances, and in particular including, but not being limited to:
(a) a certified copy of the resolutions of the directors of the Purchaser providing for the allotment and issuance by the Purchaser to the Vendor the Sonic Shares, all of which shall be subject to the Escrow Agreement;

(b) the acceptance in writing of the TSXV to the completion of the transactions contemplated herein;

(c) a certificate of an officer of the Purchaser, dated as of the Closing Date, acceptable in form to the counsel for the Company and the Vendor, acting reasonably, certifying that the warranties, representations, covenants and agreements of the Purchaser contained in the Agreement are true and correct and will be true and correct as of the Closing Date as if made by the Purchaser on the Closing Date and confirming the accuracy and currency of the Purchaser's publicly filed information; and

(d) an opinion of counsel to the Purchaser, dated as at the Closing Date, and addressed to the Company, the Vendor and their respective counsel, in form and substance satisfactory to the Company's and the Vendor's respective counsel, corresponding generally to the matters requested of Vendor's counsel set forth in Section 4.1(f);

Post Closing Non-Competition Covenants of Vendor and Guarantors

5.5 The Vendor and the Guarantors hereby agree that from the Closing Date and for a two-year period thereafter neither the Vendor nor either of the Guarantors will own all or any portion of, operate or be employed by or a consultant to any business which is involved in PCB remediation in the province of British Columbia except with the consent of the Purchaser which shall be in its sole discretion.

Environmental Liabilities

5.6 The Company carries adequate insurance in connection with any potential environmental liabilities connected with its past operations and the Company shall indemnify and save harmless the Purchaser from any and all claims relating to liability for environmental spills, hazards, toxic residues and like matters relating to the Company's operations up to the Closing Date.  The Vendor, the Guarantors and the Company represent and warrant that except as disclosed herein or the Schedules hereto that:
(a) they are aware of no basis for any allegation of liability of the Company under any environmental statute or in common law; and

(b) neither the Company nor the Guarantors have received any written notice of claim, demand, suit or the like in connection with any environmental matter respecting the Company or its past operations.

Tax Elections

5.7 Each of the Vendor and the Purchaser will jointly elect under Section 85 of the Income Tax Act Canada to treat the exchange of shares contemplated hereby as a tax deferred transaction at the Vendor's cost and the parties shall each timely file the required form T2057 to this end.

ARTICLE 6

DUE DILIGENCE AND NON-DISCLOSURE

Due Diligence

6.1 Each of the Parties shall have the right until Closing to conduct any further compliance due diligence examination of the other Party as it deems appropriate.  Such due diligence shall be completed prior to Closing and shall be conducted only with a view to confirming the accuracy of the representations made by the other party hereunder.

Confidentiality

6.2 Each Party may in a reasonable manner carry out such investigations and due diligence as to the other Party, at all times subject to the confidentiality provisions hereinbelow, as each Party deems necessary.  In that regard the Parties agree that each shall have full and complete access to the other Party's books, records, financial statements and other documents, articles of incorporation, by-laws, minutes of Board of Directors' meetings and its committees, investment agreements, material contracts and as well such other documents and materials as the Vendor, the Company or the Purchaser, or their respective counsel, may deem reasonable and necessary to conduct an adequate due diligence investigation of each Party, its respective operations and financial condition prior to the Closing Date with a view to verifying the accuracy of representations made hereunder.

Non-disclosure

6.3 Subject to the provisions hereinbelow, the Parties, for themselves, their officers, directors, shareholders, consultants, employees and agents agree that they each will not disseminate or disclose, or knowingly allow, permit or cause others to disseminate or disclose to third parties who are not subject to express or implied covenants of confidentiality, without the other Party's express written consent, either: (i) the fact or existence of this Agreement or discussions and/or negotiations between them involving, inter alia, possible business transactions; (ii) the possible substance or content of those discussions; (iii) the possible terms and conditions of any proposed transaction; (iv) any statements or representations (whether verbal or written) made by either Party in the course of or in connection with those discussions; or (v) any written material generated by or on behalf of any Party and such contacts, other than such disclosure as may be required under applicable securities legislation or regulations, pursuant to any order of a court or on a "need to know" basis to each of the Parties respective professional advisors.

Public Announcements

6.4 Notwithstanding the provisions of this Article, the Parties agree to make such public announcements of this Agreement promptly after its execution in accordance with the requirements of applicable securities legislation and regulations.

ARTICLE 7

ASSIGNMENT

Assignment

7.1 Save and except as provided herein, no Party may sell, assign, pledge or mortgage or otherwise encumber all or any part of its interest herein without the prior written consent of all the other Parties; provided that any Party may at anytime at its sole discretion and without the prior approval of the other Party assign and transfer any benefit or right herein to any wholly owned subsidiary, subject at all times to the requirement that any such subsidiary remain wholly owned by the Party hereto failing which any such interest must be immediately transferred back to such Party hereto; and provided further that any transfer of all or any part of a Party's interest herein to its wholly owned subsidiary shall be accompanied by the written agreement of any such subsidiary to assume the obligations of such Party hereunder and to be bound by the express terms and conditions hereof.

ARTICLE 8

FORCE MAJEURE

Events

8.1 If any Party hereto is at any time prevented or delayed in complying with any provisions of this Agreement by reason of acts of God, or any other reason or reasons beyond the control of that Party (causes due to insufficient finances excluded), then the time limited for the performance by that Party of its respective obligations hereunder shall be extended by a period of time equal in length to the period of each such prevention or delay.

Notice

8.2 A Party shall, within seven calendar days, give notice to the other Party of each event of force majeure under Section 8.1 hereinabove, and upon cessation of such event shall furnish the other Party with notice of that event together with particulars of the number of days by which the obligations of that Party hereunder have been extended by virtue of such event of force majeure and all preceding events of force majeure.

ARTICLE 9

ARBITRATION

Matters for Arbitration

9.1 The Parties agree that all questions or matters in dispute with respect to this Agreement shall, in so far as lawfully possible, be submitted to arbitration pursuant to the terms hereof.

Notice

9.2 It shall be a condition precedent to the right of any Party to submit any matter to arbitration pursuant to the provisions hereof that any Party intending to refer any matter to arbitration shall have given not less than two calendar days' prior written notice of its intention to do so to the other Party together with particulars of the matter in dispute.  On the expiration of such two calendar days the Party who gave such notice may proceed to refer the dispute to arbitration as provided in Section 9.3 hereinbelow.

Appointments

9.3 The Party desiring arbitration shall appoint one arbitrator, and shall notify the other Party of such appointment, and the other Party shall, within two calendar days after receiving such notice, appoint an arbitrator, and the two arbitrators so named, before proceeding to act, shall, within five calendar days of the appointment of the last appointed arbitrator, unanimously agree on the appointment of a third arbitrator, to act with them and be chairman of the arbitration herein provided for.  If the other Party shall fail to appoint an arbitrator within two calendar days after receiving notice of the appointment of the first arbitrator, and if the two arbitrators appointed by the Parties shall be unable to agree on the appointment of the chairman, the chairman shall be appointed under the provisions of the Commercial Arbitration Act (British Columbia) (the "Arbitration Act").  Except as specifically otherwise provided in this section, the arbitration herein provided for shall be conducted in accordance with the Arbitration Act.  The chairman, or in the case where only one arbitrator is appointed, the single arbitrator, shall fix a time and place in Vancouver, British Columbia, for the purpose of hearing the evidence and representations of the Parties, and he shall preside over the arbitration and determine all questions of procedure not provided for under such Arbitration Act or this section.  After hearing any evidence and representations that the Parties may submit, the single arbitrator, or the arbitrators, as the case may be, shall make an award and reduce the same to writing, and deliver one copy thereof to each of the Parties.  The expense of the arbitration shall be paid as specified in the award.

Award

9.4 The Parties agree that the award of a majority of the arbitrators, or in the case of a single arbitrator, of such arbitrator, shall be final and binding upon each of them and such award may include the costs of the arbitrator and of the parties in respect of the Arbitration.

ARTICLE 10

TERMINATION

Default

10.1 The Parties hereto agree that if any Party hereto is in material default with respect to any of its representations or covenants in this Agreement (herein called the "Defaulting Party"), the non-defaulting Party (herein called the "Non-Defaulting Party") shall give notice to the Defaulting Party designating such default and confirming whether, in the Non-Defaulting Party's view, the default is capable of remedy.  Within 14 calendar days after its receipt of such notice, the Defaulting Party shall either:
(a) cure such default, if the Non-Defaulting Party has permitted, or commence proceedings to cure such default and prosecute the same to completion without undue delay; or

(b) give the Non-Defaulting Party notice that it either denies that such default has occurred or rejects that the default is incurable and that therefore that it is submitting the question to arbitration as herein provided.

Arbitration

10.2 If arbitration is sought, a Party shall not be deemed in default until the matter shall have been determined finally by appropriate arbitration under the provisions of Article 9 hereinabove.

Curing the Default

10.3 If:
(a) the default is not so cured or the Defaulting Party does not commence or diligently proceed to cure the default; or

(b) arbitration is not so sought; or

(c) the Defaulting Party is found in arbitration proceedings to be in default the nature of which is curable, and fails to cure it within five calendar days after the rendering of the arbitration award,

the Non-Defaulting Party may, by written notice given to the Defaulting Party at any time while the default continues, terminate the interest of the Defaulting Party in and to this Agreement.

Termination

10.4 In addition to the foregoing it is hereby acknowledged and agreed by the Parties hereto that the obligation to close under this Agreement will be terminated without liability to the terminating Party in the event that:
(a) if another Party has not either satisfied or waived each of their respective conditions precedent prior to Closing in accordance with the provisions of Article 4;

(b) if another Party has failed to deliver or caused to be delivered any of their respective documents required to be delivered by Articles 4 and 5 prior to Closing in accordance with the provisions of Articles 4 and 5 and the other party does not waive receipt of such document;

(c) the condition specified in Section 4.3 have not been satisfied by the dates indicated through no fault of the terminating Party;

(d) the Closing has not occurred on or before the 120 day Closing Deadline unless it is due to a default of a party or a breach of a party's representation or covenant hereunder; or

(e) by agreement, in writing, of each of the Company, the Vendor and the Purchaser;

and in such event this Agreement will be terminated and be of no further force and effect other than the obligations under Article 6 and Section 4.4.

ARTICLE 11

NOTICE

Notice

11.1 Each notice, demand or other communication required or permitted to be given under this Agreement shall be in writing and shall be sent by courier to the Party entitled to receive the same, or delivered to such Party, at the address for such Party specified below.  The date of receipt of such notice, demand or other communication shall be the date of delivery thereof if delivered, or, if given by facsimile transmission after 4:00 p.m. in the place of receipt, the next day.
If to the Purchaser:
1774 West 2nd Avenue

Vancouver, B.C.

V6J 1H6

If to the Vendor or Guarantors:
c/o Goluboff & Mazzei

201 - 585 16th Street

West Vancouver, B.C.

V7V 3P3

Change of Address

11.2 Either Party may at any time and from time to time notify the other Party in writing of a change of address and the new address to which notice shall be given to it thereafter until further change.

ARTICLE 12

GENERAL PROVISIONS

Entire Agreement

12.1 This Agreement constitutes the entire agreement to date between the Parties hereto and supersedes every previous agreement, communication, expectation, negotiation, representation or understanding, whether oral or written, express or implied, statutory or otherwise, between the Parties with respect to the subject matter of this Agreement.

Enurement

12.2 This Agreement will enure to the benefit of and will be binding upon the Parties, their respective heirs, executors, administrators and assigns.

Applicable Law

12.3 The situs of this Agreement is British Columbia, and for all purposes this Agreement will be governed exclusively by and construed and enforced in accordance with the laws prevailing in the Province of British Columbia.

Further Assurances

12.4 The Parties hereto hereby covenant and agree to forthwith, upon request and without payment of further consideration, execute and deliver, or cause to be executed and delivered, such further and other deeds, documents, assurances and instructions as may be reasonably required by another Party hereto or its counsel in order to carry out the terms of this Agreement taken as a whole.

Severability and Construction

12.5 Each Article, section, paragraph, term and provision of this Agreement, and any portion thereof, shall be considered severable, and if, for any reason, any portion of this Agreement is determined to be invalid, contrary to or in conflict with any applicable present or future law, rule or regulation in a final unappealable ruling issued by any court, agency or tribunal with valid jurisdiction in a proceeding to any of the Parties hereto is a party, that ruling shall not impair the operation of, or have any other effect upon, such other portions of this Agreement as may remain otherwise intelligible (all of which other terms shall remain binding on the Parties and continue to be given full force and agreement as of the date upon which the ruling becomes final).

Captions

12.6 The captions, section numbers and Article numbers appearing in this Agreement are inserted for convenience of reference only and shall in no way define, limit, construe or describe the scope or intent of this Agreement nor in any way affect this Agreement.

Currency

12.7 Unless otherwise stipulated, all references to money amounts hereunder shall be in lawful money of Canada.

Counterparts

12.8 This Agreement may be signed by the Parties hereto in as many counterparts as may be necessary, and via facsimile if necessary, each of which so signed being deemed to be an original and such counterparts together constituting one and the same instrument and, notwithstanding the date of execution, being deemed to bear the effective execution date as set forth on the front page of this Agreement.

No Partnership or Agency

12.9 The Parties have not created a partnership and nothing contained in this Agreement shall in any manner whatsoever constitute any Party the partner, agent or legal representative of any other Party, nor create any fiduciary relationship between them for any purpose whatsoever.  No Party shall have any authority to act for, or to assume any obligations or responsibility on behalf of, any other party except as may be, from time to time, agreed upon in writing between the Parties or as otherwise expressly provided.

Consents and Waivers

12.10 No consent or waiver expressed or implied by either Party in respect of any breach or default by the other in the performance by such other of its obligations hereunder shall:
(a) be valid unless it is in writing and stated to be a consent or waiver pursuant to this section;

(b) be relied upon as a consent to or waiver of any other breach or default of the same or any other obligation;

(c) constitute a general waiver under this Agreement; or

(d) eliminate or modify the need for a specific consent or waiver pursuant to this section in any other or subsequent instance.

Please acknowledge your acceptance of the general terms of this Agreement by kindly executing the same in the space provided hereinbelow.

Yours very truly,

Sonic Environmental Solutions Inc.

	
Per:
	
 /s/ Adam Sumel                                                 

Authorized Signatory

The within offer and terms of Agreement are hereby accepted by the following authorized representative of the Company, by the Guarantors and the Vendor effective on this ______ day of August, 2003:

The Company

Contech PCB Containment Technologies Inc.

	
Per:
	
 /s/ Matt Wilson                                                 

Authorized Signatory

The Vendor

Proline Industries Inc.

	
 /s/ Matt Wilson                                                 

Matt Wilson, Director

	
 /s/ Diane Wilson                                                

Diane Wilson, Director

Guarantors

	
 /s/ Matt Wilson                                                 

Matt Wilson, Personally

	
 /s/ Diane Wilson                                                

Diane Wilson, Personally

 

SCHEDULE B

CONTECH PCB CONTAINMENT TECHNOLOGY INC.

List of Company's Assets and Liabilities

July 31, 2003

	
List of Assets
	
Value

	
Accounts receivable
	
$ 52,023

	
Income taxes receivable
	
5,726

	
Prepaid expenses
	
7,920

	 	
65,669

	
Equipment
	
24,511

	 	
$ 90,180

	
List of Liabilities
	
Value

	
Bank indebtedness
	
$     8,600

	
Accounts payable
	
37,248

	 	
45,848

	
Due to director
	
105,738

	 	
$ 151,586

 

(i)Accounts Receivable

	
Actes Environmental
	
$      312.98

	
Aerosmith Environmental
	
33,024.48

	
AM-PM
	
2,175.10

	
Contech Ontario
	
48.15

	
Demco Disposal Service Ltd
	
428.00

	
Environmental Fiel Services of BC Inc
	
6,692.85

	
Fleck Contracting
	
140.00

	
Impact Demolition Ltd.
	
2,023.26

	
Osram Sylvania
	
256.80

	
Pacific Environmental Consultants
	
856.00

	
Paragon Business Systems
	
1,120.29

	
Quantam Environmental
	
1,963.81

	
Richmond Steel Recycling Ltd.
	
374.50

	
Vancouver School Board
	
2,533.23

	 	
      73.22

	
Total
	
$52,022.67

(ii)Prepaid expenses

	
Insurance
	
$7,920

(iii)Permits and Insurance
(a)Licence to Transport Special Waste (LT0889) including asbestos, contaminated soil, lab packs, PCB, petroleum products and solvents (renewal application in progress)

(b)1995 Minister of Environment "no objection" to volume reduction method of waste PCB ballast

(c)Zurich Insurance - Environmental Services Package.
- General
- $5,000,000 each incident, $5,000,000 aggregate limit, $25,000 deductible

- $5,000,000 each incident, $5,000,000 aggregate limit, $25,000 deductible

- Contractor's Pollution (covering separation; PCB ballasts transport)
- $1,000,000 per occurrence

(iv)Capital Assets

	
Computers
	
$1,682.89

	
Lift truck
	
1,385.72

	
Office equipment
	
9,420.25

	
Trailer
	
10,067.81

	
Truck
	
1,954.21

	
Total
	
$24,510.88

(v)Liabilities

	
Bank indebtedness
	
$8,599.69

	
Accounts payable
	 
	
Contech Ontario
	
27,867.77

	
Walsh & King
	
5,897.70

	
Linda Alex
	
168.00

	
GST
	
728.79

	
Receiver General
	
2,585.70

	
Shareholder loan
	
105,737.72

	
Total
	
$151,585.37

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