Document:

f8k071807ex10xix_redmile.htm

    
       

      Exhibit
        10.19

       

      
        AB,
          BC, NS, ON and SK

      

       

      FORM
        OF SUBSCRIPTION AGREEMENT FOR UNITS

       

      TO:                 Red
        Mile Entertainment, Inc.  (the “Corporation”)

       

      AND
        TO:                      J.F.
        Mackie & Company Ltd. (the “Agent”)

       

      The
        undersigned (hereinafter referred to as the "Subscriber")
        hereby irrevocably subscribes for and agrees to purchase the number of units
        in
        the capital of the Corporation ("Units") set forth below for
        the aggregate subscription price set forth below (the "Aggregate
        Subscription Price"), representing a subscription price of USD$2.50 per
        Unit, upon and subject to the terms and conditions set forth in "Terms and
        Conditions of Subscription for Units of Red Mile Entertainment Inc." attached
        hereto (together with this face page and Schedules, if applicable, the
        "Subscription Agreement").  Each Unit consists of one
        common share of the Corporation ("Common Share") and 0.2 of one
        special warrant.  Each whole special warrant
        ("SpecialWarrant") entitles the holder thereof
        to acquire, for no additional consideration, one additional Common Share,
        subject to adjustments, in the event that a Liquidity Transaction (as defined
        herein) is not unconditionally closed prior to the date which is eight months
        following the Closing Date. In addition to this face page, the
        Subscriber must also complete the Schedules attached hereto, if
        applicable.

       

    

    
      
        	
                Subscriber's
                  Particulars:

                 

                
                  

                  (Name of Subscriber - please print)

                 

                By:
                  

                  (Authorized Signature)

                 

                
                  

                  (Official Capacity or Title if Subscriber is a Corporation - please
                  print)

                 

                
                  

                  (Name of Signatory - please print name of individual whose signature
                  appears above if different than name of Subscriber)

                 

                
                  

                

                (Subscriber’s
                  Address - including postal code)

                 

                 
                  

                

                 
                  

                

                 

                
                  

                

                 

                
                  

                  (Telephone
                  Number)                                                   (Email
                  Address)

                 

              	
                 

                Number
                  of
                  Units:                                                            

              
	 
	
                 

                Aggregate
                  Subscription Amount
                  (USD$):                                                                

              
	 
	
                If
                  the Subscriber is signing as agent for a principal and is not deemed
                  to be
                  purchasing as principal under NI 45-106 (as defined herein), by
                  virtue of being either: (i) a trust company or trust corporation
                  acting on behalf of a fully managed account managed by the trust
                  company
                  or trust corporation; or (ii) a person acting on behalf of a fully
                  managed account managed by it, and in each such case satisfying
                  the
                  criteria set forth in NI 45-106, complete the following and ensure
                  the applicable Schedule is completed in respect of such principal
                  (a
                  “Disclosed Beneficial Purchaser”):

                 

                 

                
                  

                  (Name of Disclosed Beneficial Purchaser)

                 

                
                  

                  (Disclosed Beneficial Purchaser’s Address)

                 

                
                  

                  (Disclosed Beneficial Principal’s Telephone Number)

                 

              
	
                Register
                  the Common Shares and Special Warrants as follows:

                (Complete
                  if different from Subscriber's particulars)

                 

                
                  

                  (Name)

                 

                
                  

                  (Account reference, if applicable)

                 

                
                  

                  (Address, including postal code)

                 

                 

              	
                Deliver
                  the Common Shares and Special Warrants as follows:

                (Complete
                  if different from registration instructions)

                 

                
                  

                  (Name)

                 

                
                  

                  (Account reference, if applicable)

                 

                
                  

                  (Contact Name)

                 

                
                  

                  (Address, including postal code)

                 

                
                  

                  (Telephone Number)

                 

              
	 

      

    

     

    
      ACCEPTANCE:
        The Corporation hereby accepts the above subscription on the terms and
        conditions contained in this Subscription Agreement and the Corporation
        represents, warrants and covenants to the Subscriber that the representations,
        warranties and covenants made by the Corporation to the Agent in the Agency
        Agreement (as defined herein) are true and correct as of the Closing Date
        (as
        defined herein) (save and except as waived by the Agent) and that the Subscriber
        is entitled to rely thereon as though the Subscriber were a party
        thereto.

       

      

       

      
        	
                RED
                  MILE ENTERTAINMENT, INC.

              	
                                 _________________,
                  2007

              

      

       

      
        	
                Per:

              	 	 
	 	
                Authorized
                  Signing Officer

              	 

      

       

      
        	
                 

              	
                This
                  is the first page of an agreement comprised of 13 pages (excluding
                  schedules).

              

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    -2-

     

    
      TERMS
        AND CONDITIONS OF SUBSCRIPTION FOR

      UNITS
        OF RED MILE ENTERTAINMENT, INC.

       

      Interpretation

       

      
        	
                1.  

              	
                In
                  this Subscription Agreement, including the schedules and exhibits
                  attached
                  hereto:

              

      

       

      “Agency
        Agreement” means an agency agreement to be entered into on or before
        the Closing Date between the Corporation and the Agent;

       

      “Aggregate
        Subscription Amount” means the amount equal to USD$2.50 multiplied by
        the number of Units subscribed and paid for pursuant to this Subscription
        Agreement;

       

      “business
        day” means any day, other than a Saturday or a Sunday, that the
        branches of the Royal Bank of Canada are open for the normal conduct of business
        in Calgary, Alberta;

       

      "Canadian
        Selling Jurisdictions" means any of Alberta, British Columbia, Nova
        Scotia, Ontario or Saskatchewan;

       

      “Closing”
        means the completion of the issue and sale by the Corporation and the purchase
        by the Subscribers of the Units pursuant to Subscription Agreements completed
        by
        Subscribers;

       

      “Closing
        Date” shall have the meaning ascribed thereto in Section 9
        hereof;

       

      “Closing
        Time” shall have the meaning ascribed there to in Section 9
        hereof;

       

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

       

      "Liquidity
        Transaction" means any of:

       

      
        	
                (i)  

              	
                the
                  Common Shares being listed on the TSX Venture Exchange, the Toronto
                  Stock
                  Exchange, or any other exchange (a "Recognized Exchange")
                  acceptable to the Agent and the Corporation becoming a "reporting
                  issuer"
                  (as defined in applicable securities legislation) in at least one
                  of the
                  Canadian Selling Jurisdictions;

              

      

       

      
        	
                (ii)  

              	
                all
                  of the issued and outstanding Common Shares having been sold, transferred
                  or exchanged pursuant to an amalgamation, plan of arrangement or
                  other
                  business combination, for cash or securities ("Free Trading
                  Securities") that are listed on a Recognized Exchange and that
                  are not subject to any restricted period or hold period under applicable
                  securities laws in Canada (other than in respect of resales by
                  control
                  persons);

              

      

       

      
        	
                (iii)  

              	
                the
                  sale by the Corporation of all or substantially all of its assets
                  for cash
                  or Free Trading Securities and the subsequent distribution of all
                  of such
                  consideration to all of the Corporation's shareholders (including
                  all
                  Subscribers pursuant to the Offering), on a pro-rata
                  basis;

              

      

       

      
        	
                (iv)  

              	
                the
                  acceptance of a takeover bid or an issuer bid, made to all holders
                  of
                  Common Shares for proceeds consisting of cash or Free Trading Securities,
                  by holders of Common Shares: (A) who hold not less than 66 2/3%
                  of the
                  outstanding Common Shares; and (B) who hold not less than 66 2/3%
                  of the
                  outstanding Special Warrants; or

              

      

       

      
        	
                (v)  

              	
                any
                  combination of the events or circumstances described in subsections
                  (i),
                  (ii), (iii) or (iv) above, such that all of the Common Shares shall
                  be
                  subject to one or more of subsections (i), (ii), (iii) or (iv)
                  above.

              

      

       

      "Minimum
        Subscription Amount" has the meaning as defined in Subsection 3(a)
        below;

       

      “Offering”
        has the meaning as defined in Subsection 3(a) below;

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
-3-
       

       

      “Underlying
        Security” means one (1) Common Share and 0.2 of a Special Warrant
        comprising a Unit and one (1) Common Share to be issued upon the exercise
        of
        each whole Special Warrant, and “Underlying Securities” means any multiple of
        them;

       

      “United
        States” means the United States of America, its territories, any state
        of the United States and the District of Columbia; and

       

      Words
        importing the singular include the plural and vice versa and words importing
        gender include all genders.

       

      Terms
        of the Offering

       

      
        	
                2.  

              	
                The
                  Subscriber acknowledges (on its own behalf and, if applicable,
                  on behalf
                  of each Disclosed Beneficial Purchaser) that this subscription
                  is subject
                  to rejection or allotment by the Corporation in whole or in part
                  and is
                  effective only upon acceptance by the Corporation pursuant to the
                  terms
                  and conditions of this Subscription
                  Agreement.

              

      

       

      
        	
                3.  

              	
                The
                  Subscriber further acknowledges
                  that:

              

      

       

      
        	
                (a)  

              	
                the
                  Units subscribed for by it hereunder form part of a larger issuance
                  and
                  sale by the Corporation of a minimum of 2,000,000 Units (the
                  "Minimum Subscription Amount") and a maximum of 4,000,000
                  Units at an issue price of USD$2.50 per Unit (the
                  "Offering"); 

              

      

       

      
        	
                (b)  

              	
                in
                  the event that the Corporation achieves the Minimum Subscription
                  Amount,
                  any funds invested by the Subscriber will be available to the Corporation
                  and will be paid to the Corporation on the Closing Date and need
                  not be
                  refunded to the Subscriber except as otherwise expressly set out
                  in this
                  Subscription Agreement;

              

      

       

      
        	
                (c)  

              	
                in
                  the event that the Corporation fails to achieve the Minimum Subscription
                  Amount, any funds received by the Agent shall be promptly returned
                  to the
                  Subscriber without interest or
                  deduction;

              

      

       

      
        	
                (d)  

              	
                in
                  the event the Corporation rejects this Subscription Agreement in
                  whole or
                  in part, the subscription proceeds provided to the Agent, or that
                  portion
                  of such subscription proceeds not allocated to the purchase of
                  Units, will
                  be promptly returned to the Subscriber, without interest or deduction;
                  and

              

      

       

      
        	
                (e)  

              	
                the
                  Subscriber acknowledges and agrees that so long as the Corporation
                  has
                  achieved the Minimum Subscription Amount, the Corporation may close
                  the
                  Offering in one or more closings in its sole discretion, either
                  before or
                  after the Closing Date.

              

      

       

      
        	
                4.  

              	
                The
                  Subscriber acknowledges that it has been independently advised
                  and is
                  fully aware that the Units are being offered hereunder in reliance
                  upon
                  certain exemptions from the prospectus requirements in the Canadian
                  Selling Jurisdictions and the Underlying Securities will be subject
                  to
                  restrictions on resale until such time
                  as:

              

      

       

      
        	
                (a)  

              	
                the
                  applicable hold period has expired;

              

      

       

      
        	
                (b)  

              	
                a
                  further exemption may be relied upon by the Subscriber;
                  or

              

      

       

      
        	
                (c)  

              	
                an
                  appropriate discretionary order is obtained pursuant to applicable
                  securities legislation.

              

      

       

      Terms
        of the Special Warrants

       

      
        	
                5.  

              	
                Each
                  whole Special Warrant shall entitle the holder to acquire, for
                  no
                  additional consideration, one additional Common Share, subject
                  to normal
                  course adjustments, in the event that a Liquidity Transaction is
                  not
                  unconditionally closed prior to the date which is eight months
                  following
                  the Closing Date. The Corporation will use its commercially reasonable
                  efforts to undertake a Liquidity Transaction on or before the day
                  that is
                  three (3) months from the Closing Date and unconditionally close
                  prior to
                  the day that is eight (8) months following the Closing
                  Date.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -4-
         

      

      The
        Special Warrants are to be duly and validly created and issued pursuant to
        the
        terms of a special warrant indenture (the "Special Warrant
        Indenture"). The Special Warrant Indenture will contain, among other
        things, provisions for the appropriate adjustment in the class, kind and
        number
        of Special Warrants, upon the occurrence of certain events, including any
        subdivision, consolidation or reclassification of shares or payments of stock
        dividends or the amalgamation of the Corporation.  Any description of
        the Special Warrants set forth in this Subscription Agreement is a summary
        only
        and is subject to the detailed provisions to be set forth in the Special
        Warrant
        Indenture (including the certificate(s) representing the Special Warrants)
        which
        are to be in such form and contain such terms as will be approved by the
        Agents
        and its counsel and by the Corporation and its counsel.

       

      Representations,
        Warranties and Covenants by the Subscriber

       

      
        	
                6.  

              	
                The
                  Subscriber represents, warrants and covenants to the Corporation
                  and the
                  Agent (and acknowledges that the Corporation, the Agent and their
                  respective counsel are relying thereon)
                  that:

              

      

       

      
        	
                (a)  

              	
                the
                  Subscriber has been independently advised as to the restrictions
                  with
                  respect to trading in the Units and the Underlying Securities imposed
                  by
                  applicable securities legislation in the jurisdiction in which
                  it resides,
                  it confirms that no representation has been made to it by or on
                  behalf of
                  the Corporation or the Agent with respect thereto, it acknowledges
                  that it
                  is aware of the characteristics of the Units and the Underlying
                  Securities, the risks relating to an investment therein, that there
                  is no
                  market available to the Subscriber for the Units or the Underlying
                  Securities, that the Corporation is not a "reporting issuer" (or
                  the
                  equivalent thereof) in any Canadian jurisdiction, that the Underlying
                  Securities are subject to an indefinite "hold period" under applicable
                  securities legislation and that it will not be able to resell the
                  Underlying Securities until the expiration of the applicable "hold
                  period"
                  (which period will not commence until the Corporation has become
                  a
                  "reporting issuer" in a jurisdiction in Canada (which it has no
                  obligation
                  to become)) except in accordance with limited exemptions under
                  applicable
                  securities legislation and regulatory policy and in compliance
                  with the
                  other requirements of applicable laws and it agrees that any certificates
                  representing the Underlying Securities will bear a legend indicating
                  that
                  the resale of such securities is restricted.  The
                  Subscriber further acknowledges that it should consult its own
                  legal
                  counsel in its jurisdiction of residence for full particulars of
                  applicable resale restrictions and that it is the Subscriber's
                  responsibility to comply with such restrictions before selling
                  the
                  Underlying Securities; and

              

      

       

      
        	
                (b)  

              	
                the
                  Subscriber has not become aware of and it has not purchased the
                  Units as a
                  result of any advertisement in printed media of general and regular
                  paid
                  circulation (or other printed public media), radio, television,
                  or
                  telecommunications or other form of advertisement (including electronic
                  display) with respect to the Corporation, the distribution of the
                  Units or
                  the Offering; and

              

      

       

      
        	
                (c)  

              	
                unless
                  purchasing under subsection 6(d) below, the Subscriber is or is
                  deemed to
                  be, pursuant to National Instrument 45-106 – Prospectus and
                  Registration Exemptions ("NI 45-106") promulgated
                  under the securities legislation of the Canadian Selling
                  Jurisdictions, purchasing the Units as principal for its own
                  account, not for the benefit of any other person, for investment
                  only and
                  not with a view to the resale or distribution of all or any of
                  the Units
                  or the Underlying Securities, it is resident in, or otherwise subject
                  to
                  the applicable securities legislation of, the jurisdiction set
                  out as the
                  "Subscriber's Address" on the initial page hereof and it fully
                  complies
                  with one or more of the criteria set forth
                  below:

              

      

       

      
        	
                (i)  

              	
                the
                  Subscriber is resident in or otherwise subject to the applicable
                  securities legislation of Alberta, British Columbia, Nova Scotia,
                  Ontario or Saskatchewan, and it is an "accredited
                  investor" as such term is defined in NI 45-106, it was not
                  created or used solely to purchase or hold securities as an accredited
                  investor as described in paragraph (m) of the definition of accredited
                  investor in NI 45-106 (which is reproduced in Appendix "A" to Schedule
                  1),
                  and it has concurrently executed and delivered a Representation
                  Letter in
                  the form attached as Schedule 1 to this Subscription Agreement
                  and has
                  initialled or placed a check mark in Appendix "A" thereto indicating
                  that
                  the Subscriber satisfies one of the categories of "accredited investor"
                  set forth in such definition; or

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -5-

       

      
        	
                (ii)  

              	
                the
                  Subscriber is resident in or otherwise subject to the applicable
                  securities legislation of Alberta, British Columbia, Nova Scotia
                  or Saskatchewan and it is one of the following and has so
                  indicated by initialling the applicable
                  paragraph:

              

      

       

      
        
          	 	
                  A.  a
                    "director", "executive officer" or "control person" of the Corporation,
                    or
                    of an "affiliate" of the Corporation (within the meaning of these
                    expressions as used in NI 45-106); or

                   

                
	 	
                  B.  a
                    "spouse" (within the meaning of that expression as used in NI
                    45-106),
                    parent, grandparent, brother, sister or child of any person referred
                    to in
                    subparagraph A above; or

                   

                
	 	
                  C.  a
                    parent, grandparent, brother, sister or child of the spouse of
                    any person
                    referred to in subparagraph A above; or

                   

                
	 	
                  D.  a
                    "close personal friend" (within the meaning of that expression
                    as used in
                    NI 45-106) of any person referred to in subparagraph A above
                    and it has
                    concurrently executed and delivered a signed statement describing
                    any such
                    person and the nature of the relationship with such person in
                    the form
                    attached as Schedule 2 to this Subscription
                    Agreement.  For the purposes of this subparagraph D, "close
                    personal friend" means that you have known such individual well
                    enough and
                    for a sufficient period of time and in a sufficiently close relationship
                    (where such relationship is direct and extends beyond being a
                    relative or
                    a member of the same organization, association or religious group
                    or a
                    client, customer or former client or customer or being a close
                    personal
                    friend of a close personal friend of such individual) to be in
                    a position
                    to assess the capabilities and the trustworthiness of such individual;
                    or

                   

                
	 	
                  E.  a
                    "close business associate" (within the meaning of that expression
                    as used
                    in NI 45-106) of any person referred to in subparagraph A above
                    and it has
                    concurrently executed and delivered a signed statement describing
                    any of
                    such persons and the nature of the relationship with such person
                    in the
                    form attached as Schedule 2 to this Subscription
                    Agreement.  For the purposes of this subparagraph E "close
                    business associate" means that you have had sufficient prior
                    business
                    dealings with such individual (where such relationship is direct
                    and
                    extends beyond solely being a client, customer or former client
                    or
                    customer or being a close business associate of a close business
                    associate
                    of such individual) to be in a position to assess the capabilities
                    and
                    trustworthiness of such individual; or

                   

                
	 	
                  F.  a
                    "founder" (within the meaning of that expression as used in NI
                    45-106), of
                    the Corporation or a spouse, parent, grandparent, brother, sister,
                    child,
                    close personal friend or close business associate of a founder
                    of the
                    Corporation and, if it is a close personal friend or close business
                    associate of a founder of the Corporation, it has concurrently
                    executed
                    and delivered a signed statement describing any such person and
                    the nature
                    of the relationship with such person in the form attached as
                    Schedule 2 to this Subscription Agreement;
                    or

                   

                
	 	
                  G.  a
                    parent, grandparent, brother, sister or child of a spouse of
                    a founder of
                    the Corporation; or

                   

                
	 	
                  H.  a
                    "person" (within the meaning of that expression as used in NI
                    45-106) of
                    which a majority of the voting securities are beneficially owned
                    by, or a
                    majority of directors are, persons or companies described in
                    subparagraphs
                    A through G above and, if it is a close personal friend or close
                    business
                    associate of such person or company, it has concurrently executed
                    and
                    delivered a signed statement describing any such person and the
                    nature of
                    the relationship with such person in the form attached as Schedule
                    2 to this Subscription Agreement; or

                   

                

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -6-

       

      
        
          	 	
                  I.  a
                    trust or estate of which all of the beneficiaries or a majority
                    of the
                    trustees or executors are persons or companies described in subparagraphs
                    A through G above and, if it is a close personal friend or close
                    business
                    associate of such person or company, it has concurrently executed
                    and
                    delivered a signed statement describing any such person and the
                    nature of
                    the relationship with such person in the form attached as Schedule
                    2 to this Subscription Agreement;

                   

                

        

         

        provided
          that if the Subscriber is resident in, or otherwise subject to the applicable
          securities legislation of Saskatchewan, and is relying on the
          exemptions contained in: (i) 6(c)(ii)D or 6(c)(ii)E; (ii) 6(c)(ii)F based
          on its
          relationship as a close personal friend or close business associate of
          a founder
          of the Corporation; or (iii) 6(c)(ii)H or 6(c)(ii)I; and the trade is based
          in
          whole or in part on a close personal friendship or close business association,
          the Subscriber must execute and deliver a signed Risk Acknowledgement Form
          in
          the form attached to this Subscription Agreement as Schedule 3
          and provided that no commission or finder's fee may be paid to any director,
          officer, founder or control person of the Corporation or an affiliate of
          the
          Corporation in connection with the trade; or

         

      

      
        	
                (iii)  

              	
                the
                  Subscriber is resident in or otherwise subject to the applicable
                  securities legislation of Ontario and it is one of the
                  following and has so indicated by initialling the applicable
                  paragraph:

              

      

       

      
        	 	
                A.  a
                  founder of the Corporation; or

                 

              
	 	
                B.  an
                  affiliate of a founder of the Corporation; or

                 

              
	 	
                C.  a
                  spouse, parent, brother, sister, grandparent or child of an executive
                  officer, director or founder of the Corporation; or

                 

              
	 	
                D.  a
                  person that is a control person of the Corporation; or

                 

              

      

      
        	
                (iv)  

              	
                the
                  Subscriber is resident in or otherwise subject to applicable securities
                  legislation of Alberta, British Columbia, Nova Scotia, Ontario or
                  Saskatchewan and it is one of the following and has so indicated
                  by initialling the applicable
                  paragraph:

              

      

       

      
        	 	
                A.  an
                  employee, executive officer, director or "consultant" of the Corporation
                  or of a "related entity" of the Corporation (within the meaning
                  of these
                  expressions as used in NI 45-106); or

                 

              
	 	
                B.  a
                  trustee, custodian or administrator acting on behalf, or for the
                  benefit
                  of, an individual referred to in subparagraph A above;

                 

              

      

      provided
        that its participation in the trade is voluntary, meaning it is not induced
        to
        participate in the trade by expectation of employment or continued employment
        with, appointment or continued appointment with, or engagement to provide
        services or continued engagement to provide services to, as applicable, the
        Corporation or a related entity of the Corporation;

       

      
        	
                (d)  

              	
                if
                  the Subscriber is not purchasing as principal, it is duly authorized
                  to
                  enter into this Subscription Agreement and to execute and deliver
                  all
                  documentation in connection with the purchase on behalf of each
                  Disclosed
                  Beneficial Purchaser for whom it is acting, each of whom is purchasing
                  as
                  principal for its own account, not for the benefit of any other
                  person,
                  and not with a view to resale or distribution of all or any of
                  the Units
                  or the Underlying Securities, it acknowledges that the Corporation
                  may be
                  required by law to disclose to certain regulatory authorities the
                  identity
                  of each Disclosed Beneficial Purchaser of Units for whom it may
                  be acting
                  as agent, the Disclosed Beneficial Purchaser is resident in or
                  otherwise
                  subject to the securities laws of the jurisdiction set forth as
                  the
                  "Disclosed Beneficial Purchaser's Address" on the first page hereof,
                  it
                  and each Disclosed Beneficial Purchaser is resident in or otherwise
                  subject to the applicable securities legislation of Alberta,
                  British Columbia, Nova Scotia, Ontario or Saskatchewan, it, or in
                  the case of subsection 6(d)(ii), each Disclosed Beneficial Purchaser,
                  is
                  an "accredited investor" as such term is defined in NI 45-106,
                  it was not
                  created or used solely to purchase or hold securities as an accredited
                  investor as described in paragraph (m) of the definition of accredited
                  investor in NI 45-106 (which is reproduced in Appendix "A" to Schedule
                  1),
                  and it, or in the case of subsection 6(d)(ii), each Disclosed Beneficial
                  Purchaser, has concurrently executed and delivered a Representation
                  Letter
                  in the form attached as Schedule 1 to this Subscription
                  Agreement and has initialled or placed a check mark in Appendix
                  "A"
                  thereto indicating that the Subscriber satisfies one of the categories of
                  "accredited investor" set forth in such definition, and it
                  is:

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -7-

       

      
        	
                 

              	
                A.a
                  trust company or trust corporation described in paragraph (p) of
                  the
                  definition of "accredited investor" as referred to in NI 45-106
                  (which is
                  reproduced in Appendix "A" to Schedule 1), excluding 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; or

              

      

       

      
        	
                 

              	
                B.a
                  person or company described in paragraph (q) of the definition
                  of
                  "accredited investor" as referred to in NI 45-106 (which is reproduced
                  in
                  Appendix "A" to Schedule 1); and

              

      

       

      
        	
                (e)  

              	
                if
                  the Subscriber or any Disclosed Beneficial Purchaser for whom it
                  is acting
                  is resident in or otherwise subject to applicable securities legislation
                  of any jurisdiction not referred to in subsection 6(c),
                  it complies with the provisions of subsection 6(c)(i) (as though
                  it were
                  resident in Alberta) and the requirements of all applicable securities
                  legislation in the jurisdiction of its residence and will provide
                  such
                  evidence of compliance with all such matters as the Corporation
                  or the
                  Agent or their respective counsel may request;
                  and

              

      

       

      
        	
                (f)  

              	
                the
                  Subscriber acknowledges that:

              

      

       

      
        	
                (i)  

              	
                no
                  securities commission or similar regulatory authority has reviewed
                  or
                  passed on the merits of the Units or the Underlying Securities;
                  and

              

      

       

      
        	
                (ii)  

              	
                there
                  is no government or other insurance covering the Units or the Underlying
                  Securities; and

              

      

       

      
        	
                (iii)  

              	
                there
                  are risks associated with the purchase of the Units and Underlying
                  Securities, which securities represent a speculative investment
                  that
                  involves a risk of loss of the Subscriber's entire investment;
                  and

              

      

       

      
        	
                (iv)  

              	
                there
                  are restrictions on the Subscriber's ability to resell the Underlying
                  Securities and it is the responsibility of the Subscriber to find
                  out what
                  those restrictions are and to comply with them before selling the
                  Underlying Securities; and

              

      

       

      
        	
                (v)  

              	
                the
                  Corporation may complete additional financings in the future in
                  order to
                  develop the business of the Corporation and to fund its ongoing
                  operations.  There is no assurance that such financings will be
                  available and if available, on reasonable terms.  Any such
                  future financings may have a dilutive effect on existing shareholders,
                  including the Subscriber (if this subscription is accepted and
                  the
                  Underlying Securities are issued to the Subscriber).  If such
                  future financings are not available, the Corporation may be unable
                  to fund
                  its ongoing operations and the lack of capital resources may result
                  in the
                  failure of the Corporation; and

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
-8-
       

       

      
        	
                (vi)  

              	
                the
                  Corporation has advised the Subscriber that the Corporation is
                  relying on
                  exemptions from the requirements to provide the Subscriber with
                  a
                  prospectus and to sell securities through a person or company registered
                  to sell securities under the Securities Act (Alberta) and other
                  applicable securities laws and, as a consequence of acquiring the
                  Underlying Securities pursuant to such exemptions, certain protections,
                  rights and remedies provided by the Securities Act (Alberta) and
                  other applicable securities laws, including statutory rights of
                  rescission
                  or damages, will not be available to the Subscriber;
                  and

              

      

       

      
        	
                (vii)  

              	
                the
                  certificates evidencing the Underlying Securities that the Subscriber
                  will
                  receive will bear a legend indicating that such securities are
                  subject to
                  such restrictions on resale and neither the Corporation (nor any
                  transfer
                  agent of the Corporation) will register any transfers of such Underlying
                  Securities not made in compliance with such restrictions on resale;
                  and

              

      

       

      
        	
                (g)  

              	
                the
                  Subscriber is aware that the Units and the Underlying Securities
                  have not
                  been and will not be registered under the United States Securities
                  Act of
                  1933, as amended ("U.S. Securities Act") or the
                  securities laws of any state of the United States and that the
                  Underlying
                  Securities may not be offered or sold, directly or indirectly,
                  in the
                  United States without registration under the U.S. Securities Act
                  (or
                  compliance with requirements of an exemption from registration)
                  and the
                  applicable laws of all applicable states;
                  and

              

      

       

      
        	
                (h)  

              	
                the
                  Subscriber acknowledges and agrees that, until such time as the
                  Underlying
                  Securities have been registered for resale under the U.S. Securities
                  Act
                  and sold in accordance with an effective registration statement,
                  certificates and other instruments representing the Underlying
                  Securities
                  shall bear a restrictive legend in substantially the following
                  form (and a
                  stop-transfer order may be placed against transfer of any such
                  securities):

              

      

       

      "THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
        SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR STATE SECURITIES
        LAWS.  THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR
        THE BENEFIT OF RED MILE ENTERTAINMENT, INC. THAT SUCH SECURITIES MAY BE OFFERED,
        SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO RED MILE ENTERTAINMENT, INC., (B)
        OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER
        THE
        SECURITIES ACT, (C) INSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 144A
        UNDER
        THE SECURITIES ACT, OR (D) INSIDE THE UNITED STATES, PURSUANT TO AN EXEMPTION
        FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
        LAWS
        AFTER PROVIDING A LEGAL OPINION REASONABLY SATISFACTORY TO RED MILE
        ENTERTAINMENT, INC."

       

      
        	
                (i)  

              	
                the
                  individual making the order to purchase the Units and executing
                  and
                  delivering this Subscription Agreement on behalf of the Subscriber
                  was not
                  in the United States when the order was placed and this Subscription
                  Agreement was executed and delivered;
                  and

              

      

       

      
        	
                (j)  

              	
                the
                  Subscriber is not a U.S. Person (as defined in Regulation S under
                  the U.S.
                  Securities Act, which definition includes, but is not limited to,
                  an
                  individual resident in the United States, an estate or trust of
                  which any
                  executor or administrator or trustee, respectively, is a U.S. Person
                  and
                  any partnership or corporation organized or incorporated under
                  the laws of
                  the United States) and is not purchasing the Units on behalf of,
                  or for
                  the account or benefit of, a person in the United States or a U.S.
                  Person;
                  and

              

      

       

      
        	
                (k)  

              	
                the
                  Subscriber undertakes and agrees that it will not offer or sell
                  the Units
                  or the Underlying Securities in the United States unless such securities
                  are registered under the U.S. Securities Act and the securities
                  laws of
                  all applicable states of the United States or an exemption from
                  such
                  registration requirements is available, and further that it will
                  not
                  resell the Units or the Underlying Securities, except in accordance
                  with
                  applicable securities legislation, regulations, rules, policies
                  and orders
                  and stock exchange rules; and

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
-9-
       

       

      
        	
                (l)  

              	
                if
                  the Subscriber is a corporation, partnership, unincorporated association
                  or other entity, it has been duly incorporated or created, it is
                  valid and
                  subsisting under the laws of its jurisdiction of incorporation
                  or
                  creation, it has the legal capacity to enter into and be bound
                  by this
                  Subscription Agreement, the person executing this Subscription
                  Agreement
                  on behalf of the Subscriber has the necessary power and authority
                  to do so
                  and all necessary approvals in respect of its entering into this
                  Subscription Agreement have been obtained;
                  and

              

      

       

      
        	
                (m)  

              	
                if
                  the Subscriber is an individual, it is of the full age of majority
                  and is
                  legally competent to execute this Subscription Agreement and take
                  all
                  action pursuant hereto; and

              

      

       

      
        	
                (n)  

              	
                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; and

              

      

       

      
        	
                (o)  

              	
                in
                  the case of a subscription by it for the Units acting as agent
                  for a
                  Disclosed Beneficial Principal, the Subscriber is duly authorized
                  to enter
                  into, execute and deliver this Subscription Agreement and all other
                  necessary documentation in connection with such subscription on
                  behalf of
                  such principal and this Subscription Agreement has been duly authorized,
                  executed and delivered by or on behalf of, and constitutes a legal,
                  valid
                  and binding agreement of, such Disclosed Beneficial Principal;
                  and

              

      

       

      
        	
                (p)  

              	
                the
                  Subscriber has such knowledge in financial and business affairs
                  as to be
                  capable of evaluating the merits and risks of its investment and
                  it, or,
                  where it is not purchasing as principal, each Disclosed Beneficial
                  Purchaser, is able to bear the economic risk of loss of its investment;
                  and

              

      

       

      
        	
                (q)  

              	
                the
                  Subscriber has neither received nor been provided with, nor has
                  it
                  requested, nor does it have any need to receive, any offering memorandum,
                  prospectus, sales or advertising literature, or any other document
                  (other
                  than financial statements, interim financial statements or any
                  other
                  document, the content of which is prescribed by statute or regulation)
                  describing the business and affairs of the Corporation which has
                  been
                  prepared for delivery to and review by prospective purchasers in
                  order to
                  assist it in making an investment decision in respect of the Units
                  and
                  that the decision to enter into this Subscription Agreement and
                  to
                  purchase the Units has not been based upon any verbal or written
                  representation as to fact or otherwise made by or on behalf of
                  the
                  Corporation or the Agent, except as expressly set out herein or
                  in the
                  Agency Agreement; and

              

      

       

      
        	
                (r)  

              	
                the
                  Subscriber has not relied upon any verbal or written representation
                  as to
                  fact or otherwise made by or on behalf of the Corporation or the
                  Agent
                  except as set forth herein or in the Agency Agreement and agrees
                  that the
                  Agent assumes no responsibility or liability of any nature whatsoever
                  for
                  the accuracy, adequacy or completeness of such representations
                  by the
                  Corporation and acknowledges that the Corporation's counsel and
                  the
                  Agent's counsel are acting as counsel to the Corporation and the
                  Agent,
                  respectively, and not as counsel to the Subscriber;
                  and

              

      

       

      
        	
                (s)  

              	
                the
                  Subscriber understands that the Units are being offered for sale
                  only on a
                  "private placement" basis and that the sale and delivery of the
                  Units is
                  conditional upon such sale being exempt from the requirements as
                  to the
                  filing of a prospectus or delivery of an offering memorandum in
                  prescribed
                  form or upon the issuance of such orders, consents or approvals
                  as may be
                  required to permit such sale without the requirement of filing
                  a
                  prospectus or delivering an offering memorandum in prescribed form
                  and, as
                  a consequence: (i) it is restricted from using most of the civil
                  remedies
                  available under applicable securities legislation; (ii) it may
                  not receive
                  information that would otherwise be required to be provided to
                  it under
                  applicable securities legislation; and (iii) the Corporation is
                  relieved
                  from certain obligations that would otherwise apply under applicable
                  securities legislation; and

              

      

       

      
        	
                (t)  

              	
                the
                  Subscriber is aware that there is no market and may never be a
                  market for
                  the Underlying Securities, and acknowledges and confirms that no
                  verbal or
                  written representation has been made to it with respect to the
                  future
                  value or price of the Underlying Securities, that any person will
                  resell
                  or repurchase the Underlying Securities, that any person will refund
                  the
                  purchase price of the Units or the Underlying Securities or that
                  the
                  Underlying Securities will be listed on any stock exchange or that
                  application has been or will be made for such listing;
                  and

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -10-

       

      
        	
                (u)  

              	
                if
                  required by applicable securities legislation, regulations, rules,
                  policies or orders or by any securities commission, stock exchange
                  or
                  other regulatory authority, the Subscriber will execute, deliver,
                  file and
                  otherwise assist the Corporation in filing, such reports, undertakings
                  and
                  other documents with respect to the issue of the Units or the Underlying
                  Securities (and in any event, in the case of an "accredited investor"
                  resident in or otherwise subject to the applicable securities legislation
                  of Alberta, British Columbia, Nova Scotia, Ontario or Saskatchewan
                  a Representation Letter in the form attached as Schedule
                  1); and

              

      

       

      
        	
                (v)  

              	
                the
                  Subscriber will not resell the Underlying Securities except in
                  accordance
                  with this Subscription Agreement and the provisions of any applicable
                  securities legislation and stock exchange rules at the time of
                  such
                  resale; and

              

      

       

      
        	
                (w)  

              	
                the
                  Subscriber acknowledges that any representation or warranty in
                  respect of
                  the Corporation made by the Corporation or the Agent or any person
                  acting
                  on their behalf outside of the Agency Agreement is given or made
                  without
                  liability or responsibility and the Subscriber hereby releases
                  the Agent
                  and the Corporation and their respective directors, officers, employees,
                  agents advisors and shareholders from any claims that may arise
                  in respect
                  of such statements; and

              

      

       

      
        	
                (x)  

              	
                except
                  as disclosed in writing to the Corporation, the Subscriber is not
                  acting
                  jointly or in concert with any other person or company for the
                  purposes of
                  acquiring securities of the Corporation;
                  and

              

      

       

      
        	
                (y)  

              	
                the
                  acquisition of the Underlying Securities hereunder by the Subscriber
                  will
                  not result in the Subscriber becoming a "control person" of the
                  Corporation, as defined under applicable securities laws;
                  and

              

      

       

      
        	
                (z)  

              	
                the
                  entering into of this Subscription Agreement and all related agreements
                  and the transactions contemplated hereby will not result in a violation
                  of
                  any of the terms or provisions of any law applicable to the Subscriber,
                  or
                  if the Subscriber is not a natural person, any of the Subscriber's
                  constating documents, or any agreement to which the Subscriber
                  is a party
                  or by which it is bound; and

              

      

       

      
        	
                (aa)  

              	
                the
                  Subscriber acknowledges that it has been advised to obtain independent
                  legal, income tax and investment advice with respect to its subscription
                  for the Units, and it has had the opportunity to acquire an understanding
                  of the meanings of all terms contained herein relevant to the Subscriber
                  and the Offering for purposes of giving representations, warranties
                  and
                  covenants under this Subscription
                  Agreement.

              

      

       

      Additional
        Acknowledgements of the Subscriber

       

      
        	
                7.  

              	
                The
                  Subscriber acknowledges that: (a) the Agent assumes no responsibility
                  or
                  liability of any nature whatsoever for the accuracy or adequacy
                  of the
                  publicly available information of the Corporation or as to whether
                  all
                  information concerning the Corporation required to be disclosed
                  by the
                  Corporation has been generally disclosed; and (b) the Agent has
                  not
                  engaged in any independent investigation or verification with respect
                  to
                  any of the information referred to in (a)
                  above.

              

      

       

      Closing

       

      
        	
                8.  

              	
                The
                  Subscriber acknowledges and accepts that the conditions precedent
                  to the
                  closing of this Offering are for its benefit and that the Agent
                  may waive,
                  in whole or in part, the completion or satisfaction of any of such
                  conditions precedent on behalf of the Subscriber pursuant to section
                  13
                  hereof.  The Subscriber agrees to deliver to the Agent, not
                  later than 5:00 p.m. (Calgary time) on the day that is two business
                  days
                  before the Closing Date: (a) this duly completed and executed
                  Subscription Agreement; (b) all other documents contemplated herein,
                  as
                  contemplated by subsection 6(u) hereof, including, if the Subscriber
                  is an
                  "accredited investor", a fully executed and completed Representation
                  Letter in the form of Schedule 1 in the case of a
                  Alberta, British Columbia, Nova Scotia, Ontario or Saskatchewan
                  subscriber; (c) if the Subscriber is purchasing under
                  Section 6(c)(ii) D., E., F., H. or I. and it is a close personal
                  friend or
                  close business associate, a fully executed and completed Questionnaire
                  in
                  the form of Schedule 2, and if also resident in
                  Saskatchewan, a fully executed and completed Risk
                  Acknowledgement Form in the form of Schedule 3; and (d) a
                  certified cheque, money order, bank draft or wire transfer (as
                  required)
                  payable to "J.F. Mackie & Company Ltd." for the
                  Aggregate Subscription Price or payment of the same amount in such
                  other
                  manner as is acceptable to the
                  Agent.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
-11-
       

       

      
        	
                9.  

              	
                The
                  sale of the Units pursuant to this Subscription Agreement will
                  be
                  completed at the offices of Bennett Jones LLP, the Corporation's
                  counsel,
                  in Calgary, Alberta at 9:00 a.m. (Calgary time) or such other time as
                  the Corporation and the Agent may agree (the "Closing
                  Time") on July 13, 2007, or such other date or dates as the
                  Corporation and the Agent may agree (the "Closing Date"),
                  it being acknowledged and agreed by the Subscriber that the Corporation
                  may have more than one closing in respect of the Offering.  At
                  the Closing Time, subject to the terms and conditions of the Agency
                  Agreement, the Agent shall deliver to the Corporation: (i) all
                  completed
                  subscription agreements, including this Subscription Agreement;
                  (ii) a
                  duly completed and executed Representation Letter or questionnaire
                  in
                  respect of each subscription (if applicable); and (iii) all other
                  documents as the Corporation or its counsel may reasonably
                  request.

              

      

       

      
        	
                10.  

              	
                The
                  Corporation and the Agent shall be entitled to rely on delivery
                  of a
                  facsimile or electronic copy of executed subscriptions, and acceptance
                  by
                  the Corporation of such facsimile or electronic subscriptions shall
                  be
                  legally effective to create a valid and binding agreement between
                  the
                  Subscriber and the Corporation in accordance with the terms
                  hereof.  In addition, this Subscription Agreement may be
                  executed in counterparts, each of which shall be deemed to be an
                  original
                  and all of which shall constitute one and the same
                  document.

              

      

       

      General

       

      
        	
                11.  

              	
                Throughout
                  this Subscription Agreement, if the Subscriber is contracting on
                  behalf of
                  another person or persons, all representations, warranties, covenants,
                  acknowledgements, confirmations and statements made by the Subscriber
                  hereunder, including the Schedules, shall be true with respect
                  to such
                  person or persons on whose behalf the Subscriber is contracting
                  as if such
                  representations, warranties, covenants, acknowledgments, confirmations
                  or
                  statements were made directly by such person or
                  persons.

              

      

       

      
        	
                12.  

              	
                The
                  Subscriber agrees that the representations, warranties and covenants
                  of
                  the Subscriber herein will be true and correct both as of the execution
                  of
                  this Subscription Agreement and as of the Closing Time and will
                  survive
                  the completion of the issuance of the Units and any subsequent
                  disposition
                  by the Subscriber of the Underlying Securities.  The
                  representations, warranties and covenants of the Subscriber herein
                  are
                  made with the intent that they be relied upon by the Corporation,
                  the
                  Agent and their respective legal counsel in determining the eligibility
                  of
                  a purchaser of Units and the Subscriber agrees to indemnify and
                  save
                  harmless the Corporation and the Agent and their respective affiliates,
                  shareholders, directors, officers, employees, counsel and agents
                  against
                  all losses, claims, costs, expenses and damages or liabilities
                  which any
                  of them may suffer or incur which are caused or arise from a breach
                  thereof and reliance thereon.  The Subscriber undertakes to
                  immediately notify the Corporation at Red Mile Entertainment, Inc.,
                  4000
                  Bridgeway, Suite 101, Sausalito, California 95965, Attention: Chester
                  Aldridge (Fax Number (415) 339-4250) and the Agent at J.F. Mackie
&
                  Company Ltd., 1550, 335 8th
                  Avenue S.W.,
                  Calgary Alberta, Attention: Phil Hodge, Managing Director (Fax
                  Number:
                  (403) 218-6376), of any change in any statement or other information
                  relating to the Subscriber set forth herein which takes place prior
                  to the
                  Closing Time.

              

      

       

      
        	
                13.  

              	
                The
                  Subscriber acknowledges that the Agent has been appointed by the
                  Corporation to act as the exclusive Agent of the Corporation to
                  offer the
                  Units offered under the Offering on a private placement basis and,
                  in
                  connection therewith, the Corporation and the Agent have entered
                  into or
                  will, prior to the Closing Time, enter into the Agency Agreement
                  pursuant
                  to which the Agent, in connection with the issue and sale of the
                  Units,
                  will receive a fee from the Corporation.  The Subscriber hereby
                  irrevocably authorizes the Agent:  (a) to act as its
                  representative at the closing in respect of this subscription and
                  to
                  execute in its name and on its behalf all closing receipts and
                  documents
                  required; (b) to complete or correct any errors or omissions in
                  any form
                  or document provided by the Subscriber in respect of this subscription;
                  (c) to receive on its behalf certificates and/or agreements representing
                  the Units purchased under this Subscription Agreement; (d) to approve
                  any
                  opinions, certificates or other documents addressed to the Subscriber;
                  (e)
                  to waive, in whole or in part, any representations, warranties,
                  covenants
                  or conditions for the benefit of the Subscriber contained in the
                  Agency
                  Agreement; and (f) to exercise any rights of termination contained
                  in the
                  Agency Agreement.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -12-

       

      
        	
                14.  

              	
                The
                  Subscriber acknowledges and agrees that all costs incurred by the
                  Subscriber (including any fees and disbursements of any special
                  counsel
                  retained by the Subscriber) relating to the sale of the Units to
                  the
                  Subscriber hereunder shall be borne by the
                  Subscriber.

              

      

       

      
        	
                15.  

              	
                Nothing
                  herein shall constitute or be construed to constitute a partnership
                  of any
                  kind whatsoever between the Subscriber and the
                  Corporation.

              

      

       

      
        	
                16.  

              	
                The
                  invalidity, illegality or unenforceability of any provision of
                  this
                  Subscription Agreement shall not affect the validity, legality
                  or
                  enforceability of any other provision
                  hereof.

              

      

       

      
        	
                17.  

              	
                The
                  contract arising out of this Subscription Agreement and all documents
                  relating thereto, which by common accord has been or will be drafted
                  in
                  English, shall be governed by and construed in accordance with
                  the laws of
                  the Province of Alberta and the federal laws of Canada applicable
                  therein
                  excluding reference to conflicts of laws principles.  The
                  parties irrevocably attorn to the exclusive jurisdiction of the
                  courts of
                  the Province of Alberta.  Time shall be of the essence
                  hereof.

              

      

       

      
        	
                18.  

              	
                The
                  Subscriber acknowledges its consent and requests that this Subscription
                  Agreement and all documents evidencing or relating in any way to
                  the
                  purchase of the Units be drawn up in the English language
                  only.  Le souscripteur reconnaît par les présentes avoir
                  consenti et demandé que cette convention de souscription et tous les
                  documents faisant foi ou se rapportant de quelque manière à
                  l'achat des titres soient rédigés en anglais
                  seulement.

              

      

       

      
        	
                19.  

              	
                This
                  Subscription Agreement represents the entire agreement of the parties
                  hereto relating to the subject matter hereof and there are no
                  representations, covenants or other agreements relating to the
                  subject
                  matter hereof except as stated or referred to
                  herein.

              

      

       

      
        	
                20.  

              	
                The
                  funds representing the Aggregate Subscription Price which will
                  be advanced
                  by the Subscriber to the Corporation hereunder will not represent
                  proceeds
                  of crime for the purposes of the Proceeds of Crime (Money Laundering)
                  and Terrorist Financing Act (Canada) 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 Proceeds of Crime (Money Laundering) and
                  Terrorist Financing Act (Canada).  To the best of the
                  Subscriber's knowledge, none of the subscription funds to be provided
                  by
                  the Subscriber (a) have been or will be derived from or related
                  to any
                  activity that is deemed criminal under the laws of Canada, the
                  United
                  States, or any other jurisdiction, or (b) are being tendered on
                  behalf of
                  a person or entity who has not been identified to the
                  Subscriber.  The Subscriber will promptly notify the Corporation
                  if the Subscriber discovers that any of such representations ceases
                  to be
                  true, and will provide the Corporation with appropriate information
                  in
                  connection therewith.

              

      

       

      
        	
                21.  

              	
                The
                  covenants, representations and warranties contained herein shall
                  survive
                  the closing of the transactions contemplated hereby and shall be
                  binding
                  upon and enure to the benefit of the parties hereto and their respective
                  heirs, executors, administrators, successors and permitted
                  assigns.

              

      

       

      
        	
                22.  

              	
                The
                  headings used in this Subscription Agreement have been inserted
                  for
                  convenience of reference only and shall not affect the meaning
                  or
                  interpretation of this Subscription Agreement or any provision
                  hereof.

              

      

       

      
        	
                23.  

              	
                Except
                  as otherwise provided herein, this Subscription Agreement may only
                  be
                  amended by the parties hereto in
                  writing.

              

      

       

      
        	
                24.  

              	
                Neither
                  party may assign all or part of its interest in or to this Subscription
                  Agreement without the consent of the other party in
                  writing.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -13-

       

       

      
        	
                25.  

              	
                In
                  this Subscription Agreement (including the Schedules hereto), references
                  to "$" are to United States dollars unless explicitly stated
                  otherwise.

              

      

       

      
        PRIVACY
          NOTICE

         

        

      

      
        This
          Subscription Agreement and the Schedules hereto require the Subscriber
          to
          provide certain personal information to the Corporation.  Such
          information is being collected by the Corporation for the purposes of completing
          the sale of the Units to the Subscriber, which includes, without limitation,
          determining the eligibility of the Subscriber to purchase the Units under
          applicable securities laws, preparing and registering certificates representing
          the Underlying Securities to be issued hereunder and completing filings
          required
          under applicable securities legislation, regulations, rules, policies or
          orders
          or by any other securities regulatory authority.

         

        In
          addition, such personal information may be used or disclosed by the Corporation
          for the purpose of administering the Corporation's relationship with the
          Subscriber.  For example, such personal information may be used by the
          Corporation to communicate with the Subscriber (such as by providing annual
          or
          quarterly reports), to prepare tax filings and forms or to comply with
          the
          Corporation's obligations under taxation, securities and other laws (such
          as
          maintaining a list of holders of shares).

         

        In
          connection with the foregoing, the personal information of the Subscriber
          may be
          disclosed by the Corporation to: (i) securities regulatory or taxation
          authorities, (ii) the Corporation's registrar and transfer agent, if any,
          and (iii) any of the other persons involved in the Offering, including
          legal counsel, and may be included in record books prepared in respect
          of the
          Offering.

         

        

      

      
        By
          executing this Subscription Agreement, the Subscriber hereby consents to
          the
          collection, use and disclosure of such personal information.  The
          Subscriber also consents to the filing of copies or originals of any of
          the
          documents provided to the Corporation by or on behalf of the Subscriber
          with any
          securities regulatory authority in relation to the transactions contemplated
          by
          this Subscription.

        

        If
          it is a resident of or otherwise subject to applicable securities laws
          of
          Ontario, the Subscriber acknowledges that it has been notified by the
          Corporation (a) of the delivery to the Ontario Securities Commission (the
          "OSC")
          of the full name, residential address and telephone number of the Subscriber,
          the number and type of securities purchased, the total purchase price in
          United
          States funds, the exemption relied upon and the date of distribution, and
          hereby
          authorizes the delivery of this information to the OSC; (b) that this
          information is being collected indirectly by the OSC under the authority
          granted
          to it in securities legislation; (c) that this information is being collected
          for the purposes of the administration and enforcement of the securities
          legislation of Ontario; and (d) that the Administrative Assistant to the
          Director of Corporate Finance can be contacted at Suite 1903, Box 55, 20
          Queen
          Street West, Toronto, Ontario M5H 3S8 or at (416) 593-8086 regarding any
          questions about the OSC's indirect collection of this
          information.

        

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -14-

       

      SCHEDULE
        1

       

      REPRESENTATION
        LETTER

       

      (FOR
        ALBERTA, BRITISH COLUMBIA, NOVA SCOTIA,

       

      ONTARIO
        AND SASKATCHEWAN ACCREDITED INVESTORS)

       

      TO:                        
        RED MILE ENTERTAINMENT, INC. (the
"Corporation")

      
        	
                 

              	
                AND
                  TO:J.F. MACKIE & COMPANY LTD. (the
                  "Agent")

              

      

       

      In
        connection with the purchase of Units of the Corporation (as that term is
        defined in the Subscription Agreement) by the undersigned subscriber or,
        if
        applicable, the principal on whose behalf the undersigned is purchasing as
        agent
        (the "Subscriber" for the purposes of this Schedule 1), the
        Subscriber hereby represents, warrants, covenants and certifies to the
        Corporation and the Agent that:

       

      
        	
                1.  

              	
                The
                  Subscriber is resident in or is subject to the laws of Alberta,
                  British
                  Columbia, Nova Scotia,

              

      

       

      
        
          	
                   

                	
                  
                    Ontario
                      or Saskatchewan or, if resident in or subject to a jurisdiction
                      not
                      referred to above, it has complied with the requirements of
                      all applicable
                      securities legislation in the jurisdiction of its residence
                      and the
                      provisions of this Schedule 1 as if it were a resident of
                      Alberta;

                  

                

        

         

      

      
        	
                2.  

              	
                The
                  Subscriber is purchasing the Units as principal for its own account
                  or is
                  deemed to be so purchasing pursuant to NI 45-106, as defined
                  below);

              

      

       

      
        	
                3.  

              	
                The
                  Subscriber is an "accredited investor" within the meaning of National
                  Instrument 45-106 entitled "Prospectus and Registration Exemptions"
                  ("NI 45-106") by virtue of satisfying the indicated
                  criterion as set out in Appendix "A" to this Representation
                  Letter;

              

      

       

      
        	
                4.  

              	
                The
                  Subscriber has not been created or used solely to purchase or hold
                  securities as an "accredited investor" as described in paragraph
                  (m) of
                  the definition of "accredited investor" in NI 45-106, which is
                  reproduced
                  in Appendix "A" to this Representation Letter;
                  and

              

      

       

      
        	
                5.  

              	
                Upon
                  execution of this Schedule 1 by the Subscriber, this Schedule 1
                  shall be
                  incorporated into and form a part of the Subscription
                  Agreement.

              

      

       

      Dated:  _________________________,
        2007.

       

      _______________________________________________                                                                           

      Print
        name of Subscriber

      

      By:      _______________________________________________        

      Signature

      

      __________________________________________                                                            

      Print
        name of Signatory (if different from Subscriber)

      

      __________________________________________                                                                

      Title

       

      
        IMPORTANT:  PLEASE
          INITIAL THE CATEGORY OR CATEGORIES

        IN
          APPENDIX "A" ON THE NEXT PAGE THAT DESCRIBE
          YOU

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      -15-

       

      

      

      APPENDIX
        "A"

      

      TO
        SCHEDULE 1

       

      PLEASE
        MARK YOUR INITIALS OR PLACE A CHECKMARK BESIDE THE CATEGORY OF
"ACCREDITED INVESTOR" TO WHICH YOU
        BELONG.

       

      Accredited
        Investor - (defined in National Instrument 45-106) means:

       

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

                   

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

                   

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

                   

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

                   

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

                   

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

                   

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

                   

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

                   

                
	 	
                  (i)  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;

                   

                
	 	
                  (j)  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
                    $1,000,000;

                   

                
	 	
                  (k)  an
                    individual whose net income before taxes exceeded $200,000 in
                    each of the
                    2 most recent calendar years or whose net income before taxes
                    combined
                    with that of a spouse exceeded $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;

                   

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

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

                   

                

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      A-2

       

       

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

                   

                
	 	
                  (n)  an
                    investment fund that distributes or has distributed its securities
                    only to
                    (i) a person that is or was an accredited investor at the time
                    of the
                    distribution, (ii) a person that acquires or acquired securities
                    in the
                    circumstances referred to in sections 2.10 of NI 45-106 [Minimum
                    amount
                    investment], and 2.19 of NI 45-106 [Additional investment in
                    investment
                    funds], or (iii) a person described in paragraph (i) or (ii)
                    that acquires
                    or acquired securities under section 2.18 of NI 45-106 [Investment
                    fund
                    reinvestment];

                   

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

                   

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

                   

                
	 	
                  (q)  a
                    person acting on behalf of a fully managed account managed by
                    that person,
                    if that person (i) is registered or authorized to carry on business
                    as an
                    adviser or the equivalent under the securities legislation of
                    a
                    jurisdiction of Canada or a foreign jurisdiction, and (ii) in
                    Ontario, is
                    purchasing a security that is not a security of an investment
                    fund;

                   

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

                   

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

                   

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

                   

                
	 	
                  (Note:
                    if you are purchasing as an individual accredited investor paragraphs
                    (j),
                    (k) or (l) above must be initialled rather than paragraph
                    (t).)

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

                   

                
	 	
                  (v)  a
                    person that is recognized or designated by the securities regulatory
                    authority or, except in Ontario and Québec, the regulator as (i) an
                    accredited investor, or (ii) an exempt purchaser in Alberta or
                    British
                    Columbia.

                   

                

        

      

       

      NOTE:   The
        investor must initial or place a checkmark beside the applicable portion
        of the
        above definition.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      A-3

       

       

      For
        the purposes hereof:

       

      
        	
                (a)  

              	
                "affiliate"
                  - 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)  

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

              

      

       

      
        	
                (c)  

              	
                "beneficial
                  ownership" of securities by a person
                  occurs

              

      

       

      
        	
                (i)  

              	
                for
                  the purposes of British Columbia, Saskatchewan, Manitoba and Ontario
                  securities law, when such securities are beneficially owned
                  by

              

      

       

      
        	
                (A)  

              	
                an
                  issuer controlled by that person;
                  or

              

      

       

      
        	
                (B)  

              	
                an
                  affiliate of that person or an affiliate of an issuer controlled
                  by that
                  person;

              

      

       

      
        	
                (ii)  

              	
                for
                  the purposes of Alberta securities law, when such securities are
                  beneficially owned by

              

      

       

      
        	
                (A)  

              	
                a
                  company controlled by that person or an affiliate of that
                  company;

              

      

       

      
        	
                (B)  

              	
                an
                  affiliate of that person; or

              

      

       

      
        	
                (C)  

              	
                through
                  a trustee, legal representative, agent or other intermediary of
                  that
                  person;

              

      

       

      
        	
                (d)  

              	
                "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;

              

      

       

      
        	
                (e)  

              	
                "consultant"
                  means, for an issuer, a person, other than an employee, executive
                  officer,
                  or director of the issuer or of a related entity of the issuer,
                  that

              

      

       

      
        	
                (i)  

              	
                is
                  engaged to provide services to the issuer or a related entity of
                  the
                  issuer, other than services provided in relation to a
                  distribution,

              

      

       

      
        	
                (ii)  

              	
                provides
                  the services under a written contract with the issuer or a related
                  entity
                  of the issuer, and

              

      

       

      
        	
                (iii)  

              	
                spends
                  or will spend a significant amount of time and attention on the
                  affairs
                  and business of the issuer or a related entity of the
                  issuer

              

      

       

      and
        includes, for an individual consultant, a corporation of which the individual
        consultant is an employee or shareholder, and a partnership of which the
        individual consultant is an employee or partner;

       

      
        	
                (f)  

              	
                a
                  person (first person) is considered to "control" another
                  person (second person) if

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
A-4
       

       

      
        	
                (i)  

              	
                the
                  first person, directly or indirectly, beneficially owns or 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.

              

      

       

      
        	
                (g)  

              	
                "control
                  person" has the same meaning as in securities legislation except
                  in Manitoba and Ontario, where control person means any person
                  that holds
                  or is one of a combination of person that
                  holds

              

      

       

      
        	
                (i)  

              	
                a
                  sufficient number of any of the securities of an issuer so as to
                  affect
                  materially the control of the issuer,
                  or

              

      

       

      
        	
                (ii)  

              	
                more
                  than 20% of the outstanding voting securities of an issuer except
                  where
                  there is evidence showing that the holding of those securities
                  does not
                  affect materially the control of the
                  issuer;

              

      

       

      
        	
                (h)  

              	
                "director"
                  means

              

      

       

      
        	
                (i)  

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

              

      

       

      
        	
                (ii)  

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

              

      

       

      
        	
                (i)  

              	
                "eligibility
                  adviser" means

              

      

       

      
        	
                (i)  

              	
                a
                  person that is registered as an investment dealer or in an equivalent
                  category of registration under the securities legislation of the
                  jurisdiction of a purchaser and authorized to give advice with
                  respect to
                  the type of security being distributed,
                  and

              

      

       

      
        	
                (ii)  

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

              

      

       

      
        	
                (A)  

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

              

      

       

      
        	
                (B)  

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

              

      

       

      
        	
                (j)  

              	
                "executive
                  officer" means, for an issuer, an individual who
                  is

              

      

       

      
        	
                (i)  

              	
                a
                  chair, vice-chair or president,

              

      

       

      
        	
                (ii)  

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

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
A-5
       

       

      
        	
                (iii)  

              	
                an
                  officer of the issuer or any of its subsidiaries and who performs
                  a
                  policy-making function in respect of the issuer,
                  or

              

      

       

      
        	
                (iv)  

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

              

      

       

      
        	
                (k)  

              	
                "financial
                  assets" means

              

      

       

      
        	
                (i)  

              	
                cash,

              

      

       

      
        	
                (ii)  

              	
                securities,
                  or

              

      

       

      
        	
                (iii)  

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

              

      

       

      
        	
                (l)  

              	
                "foreign
                  jurisdiction" means a country other than Canada or a politician
                  subdivision of a country other than
                  Canada;

              

      

       

      
        	
                (m)  

              	
                "founder",
                  means, in respect of an issuer, a person
                  who,

              

      

       

      
        	
                (i)  

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

              

      

       

      
        	
                (ii)  

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

              

      

       

      
        	
                (n)  

              	
                "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;

              

      

       

      
        	
                (o)  

              	
                "individual"
                  means a natural person, but does not
                  include

              

      

       

      
        	
                (i)  

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

              

      

       

      
        	
                (ii)  

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

              

      

       

      
        	
                (p)  

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

              

      

       

      
        	
                (q)  

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

              

      

       

      
        	
                (r)  

              	
                "local
                  jurisdiction" means the jurisdiction in which the applicable
                  securities regulatory authority is
                  situate;

              

      

       

      
        	
                (s)  

              	
                "mutual
                  fund" means:

              

      

       

      
        	
                (i)  

              	
                for
                  the purposes of Alberta, Saskatchewan, Manitoba and Ontario securities
                  law, an issuer of securities 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 part
                  of the net assets, including a separate fund or trust account,
                  of the
                  issuer of the securities;

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
A-6
       

       

      
        	
                (ii)  

              	
                and,
                  for the purposes of British Columbia securities law, also
                  includes

              

      

       

      
        	
                (A)  

              	
                an
                  issuer described in an order that the British Columbia Securities
                  Commission may make pursuant to section 3.2 of the Securities Act
                  (British Columbia); and

              

      

       

      
        	
                (B)  

              	
                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
        British Columbia Securities Commission may make under section 3.1 of the
        Securities Act (British Columbia);

       

      
        	
                (t)  

              	
                "non-redeemable
                  investment fund" means an
                  issuer,

              

      

       

      
        	
                (i)  

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

              

      

       

      
        	
                (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;

              

      

       

      
        	
                (u)  

              	
                "permitted
                  assign" means, for a person that is an employee, executive
                  officer, director or consultant of an issuer or of a related entity
                  of the
                  issuer,

              

      

       

      
        	
                (i)  

              	
                a
                  trustee, custodian, or administrator acting on behalf of, or for
                  the
                  benefit of the person,

              

      

       

      
        	
                (ii)  

              	
                a
                  holding entity of the person,

              

      

       

      
        	
                (iii)  

              	
                an
                  RRSP or a RRIF of the person,

              

      

       

      
        	
                (iv)  

              	
                a
                  spouse of the person,

              

      

       

      
        	
                (v)  

              	
                a
                  trustee, custodian, or administrator acting on behalf of, or for
                  the
                  benefit of the spouse of the
                  person,

              

      

       

      
        	
                (vi)  

              	
                a
                  holding entity of the spouse of the person,
                  or

              

      

       

      
        	
                (vii)  

              	
                an
                  RRSP or a RRIF of the spouse of the
                  person;

              

      

       

      
        	
                (v)  

              	
                "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

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      A-7

       

       

      
        	
                (iv)  

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

              

      

       

      
        	
                (w)  

              	
                "regulator"
                  means:

              

      

       

      
        	
                (i)  

              	
                the
                  Executive Director, as defined under section 1 of the Securities
                  Act (Alberta);

              

      

       

      
        	
                (ii)  

              	
                the
                  Executive Director, as defined under section 1 of the Securities
                  Act (British Columbia); and

              

      

       

      
        	
                (iii)  

              	
                such
                  other person as is referred to in Appendix D of National Instrument
                  14-101
                  – Definitions;

              

      

       

      
        	
                (x)  

              	
                "related
                  entity" means, for an issuer, a person that controls or is
                  controlled by the issuer or that is controlled by the same person
                  that
                  controls the issuer;

              

      

       

      
        	
                (y)  

              	
                "related
                  liabilities" means

              

      

       

      
        	
                (i)  

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

              

      

       

      
        	
                (ii)  

              	
                liabilities
                  that are secured by financial
                  assets;

              

      

       

      
        	
                (z)  

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

              

      

       

      
        	
                (aa)  

              	
                "securities
                  legislation" means:

              

      

       

      
        	
                (i)  

              	
                for
                  Alberta, the Securities Act (Alberta) and the regulations and
                  rules under such Act and the blanket rulings and orders issued
                  by the
                  Alberta Securities Commission; and

              

      

       

      
        	
                (ii)  

              	
                for
                  other Canadian jurisdictions, such other statutes and instruments
                  as are
                  listed in Appendix B of National Instrument 14-101 – Mutual Funds –
                  Definitions and
                  Interpretation;

              

      

       

      
        	
                (bb)  

              	
                "securities
                  regulatory authority"
                  means:

              

      

       

      
        	
                (i)  

              	
                the
                  Alberta Securities Commission;

              

      

       

      
        	
                (ii)  

              	
                in
                  respect of any local jurisdiction other than Alberta, means the
                  securities
                  commission or similar regulatory authority listed in Appendix C
                  of
                  National Instrument 14-101 –
Definitions;

              

      

       

      
        	
                (cc)  

              	
                "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);

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       
A-8
       

       

      
        	
                (dd)  

              	
                "subsidiary"
                  means an issuer that is controlled directly or indirectly by another
                  issuer and includes a subsidiary of that
                  subsidiary;

              

      

       

      
        	
                (ee)  

              	
                "voting
                  security" means any security
                  which:

              

      

       

      
        	
                (i)  

              	
                is
                  not a debt security; and

              

      

       

      
        	
                (ii)  

              	
                carries
                  a voting right either under all circumstances or under some contingency
                  that has occurred and is
                  continuing.

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        2

       

      Close
        Personal Friend and/or Close Business Associate
        Questionnaire

       

      To
        be
        completed by Subscribers to whom section 6(c)(ii) D, E, F, H or I of the
        Subscription Agreement applies.

       

      
        	
                Name
                  of director, senior officer, control person or founder:

              
	 
	
                Length
                  of Relationship:

              
	 
	
                Prior
                  Business Dealings:

              
	 
	
                Details
                  of Relationship:

              
	 

      

      

      The
        undersigned understands that the Corporation and the Agent are relying on
        this
        information in determining to sell securities to the undersigned in a manner
        exempt from the prospectus and registration requirements of the applicable
        securities laws.

       

      The
        undersigned has executed this Questionnaire as of the ____ day of,
        2007.

       

      

       

      
        	
                If
                  a Corporation, Trust, Partnership or other Entity:

              	 	
                If
                  an Individual:

              
	 	 	 
	
                Name
                  of Entity

              	 	
                Signature

              
	 	 	 
	
                Type
                  of Entity

              	 	
                Name
                  of Individual

              
	 	 	 
	
                Signature
                  of Person Signing

              	 	 
	 	 	 
	
                Title
                  of Person Signing

              	 	 

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      SCHEDULE
        3

       

      RISK
        ACKNOWLEDGMENT FORM

       

      FORM
        45-106F5

       

      SASKATCHEWAN
        CLOSE PERSONAL FRIENDS AND CLOSE BUSINESS ASSOCIATES

       

      WARNING

       

      I
        acknowledge that this is a risky investment:

      
         

        
          	
                   

                	
                  ·

                	
                  I
                    am investing entirely at my own
                    risk.

                

        

        
          
             

            
              	
                       

                    	
                      ·

                    	
                      No
                        securities regulatory authority has evaluated or endorsed
                        the merits of
                        these securities.

                    

            

             

          

        

      

      
        
          	
                   

                	
                  ·

                	
                  I
                    will not be able to sell these securities except in very limited
                    circumstances. I may never be able to sell these
                    securities.

                

        

         

          
            
              	
                       

                    	
                      ·

                    	
                      I
                        will not be able to sell these securities for 4
                        months.

                    

            

             

          

        

        
          
            
              	
                       

                    	
                      ·

                    	
                      I
                        could lose all the money I invest.

                    

            

             

          

        

        
          
            
              
                	
                         

                      	
                        ·

                      	
                        
                          I
                            do not have a 2-day right to cancel my purchase of these
                            securities or the
                            statutory rights of action for misrepresentation I would
                            have if I were
                            purchasing the securities under a
                            prospectus.

                        

                      

              

               

            

          

        

      

      I
        am
        investing $____________ in total; this includes any amount obliged to pay
        in
        future.

       

      I
        am a
        close personal friend or close business associate of __________________________
        [state name], who is a ___________________________ [state
        title-founder, director, executive officer or control person] of Red Mile
        Entertainment, Inc. or _______________________________ [state name of
        "affiliate" of Red Mile Entertainment, Inc.]

       

      

      I
        acknowledge that I am purchasing based on my close relationship with
        __________________________________ [state name of founder, director, executive
        officer or control person] whom I know well enough and for a sufficient period
        of time to be able to assess her/his capabilities and
        trustworthiness.

       

      I
        acknowledge that this is a risky investment and that I could lose all the
        money
        I invest.

       

      

       

      
        	
                 

                
                  

                  Date

                 

              	
                 

                
                  

                  Signature of Purchaser

                 

                 

                 

                
                  

                  Print name of Purchaser

                 

              
	 	 

      

      Sign
        2 copies of this document.  Keep one copy for your
        records.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      
-2-
       

       

       

      You
        are buying Exempt Market Securities

       

      They
        are
        called exempt market securities because two parts of securities law do
        not apply to them. If an issuer wants to sell exempt market securities
        to you:

       

      
        	
                ·  

              	
                the
                  issuer does not have to give you a prospectus (a document that
                  describes
                  the investment in detail and gives you some legal protections),
                  and

              

      

       

      
        	
                ·  

              	
                the
                  securities do not have to be sold by an investment dealer registered
                  with
                  a securities regulatory authority.

              

      

       

      There
        are
        restrictions on your ability to resell exempt market
        securities.  Exempt market securities are more risky than other
        securities.

       

      You
        may not receive any written information about the issuer or its
        business

       

      If
        you
        have any questions about the issuer or its business, ask for written
        clarification before you purchase the securities. You should consult your
        own
        professional advisers before investing in the securities.

       

      The
        issuer of your securities is a non-reporting issuer

       

      A
        non-reporting issuer does not have to publish financial information or
        notify the public of changes in its business. You may not receive ongoing
        information about this issuer. You can only sell the securities of a
        non-reporting issuer in very limited circumstances. You may never be able
        to
        sell these securities.

       

      The
        securities you are buying are not listed

       

      The
        securities you are buying are not listed on any stock exchange, and they
        may
        never be listed.  There may be no market for these securities. You may
        never be able to sell these securities.

       

      For
        more
        information on the exempt market, refer to the Saskatchewan Financial Services
        Commission’s website at http://www.sfsc.gov.sk.ca.f8k071807ex10xx_redmile.htm

    Exhibit
      10.20

     

    AGENCY
      AGREEMENT

     

    June
      22,
      2007

     

    Red
      Mile Entertainment, Inc.

    4000
      Bridgeway, Suite 101

    Sausalito,
      California 95965

     

    Attention:                      Chester
      P. Aldridge

     

    Dear
      Sirs:

     

    Re:           Issue
      and Sale of Units

     

    J.F.
      Mackie & Company Ltd. (the “Agent”) understands that Red
      Mile Entertainment Inc. (the “Corporation”) proposes to sell
      and issue up to 4,000,000 units (the "Units") of the
      Corporation at a price of US$2.50 per Unit, each Unit being comprised of one
      common share (“Common Share”) of the Corporation and 0.2 of one
      warrant ("Warrant") of the Corporation (the
“Offering”).  Each whole Warrant shall entitle the
      holder thereof to acquire, for no additional consideration, one Common Share
      in
      the event that a Liquidity Transaction (as defined herein) is not
      unconditionally completed by the Corporation prior to the date that is eight
      months following the Closing Date.

     

    Subject
      to the terms and conditions hereof, the Agent agrees to act as, and the
      Corporation appoints the Agent as, the sole and exclusive agent of the
      Corporation to offer for sale on the Closing Date on a private placement basis
      the Units in the Provinces of Alberta, British Columbia, Saskatchewan, Ontario
      and Nova Scotia (the "Selling Jurisdictions") and to use its
      commercially reasonable best efforts to secure subscriptions therefor, provided
      that the Agent shall be under no obligation to purchase any of such Units as
      principal.  The Agent shall be entitled in connection with the
      offering and sale of the Units to retain as sub-agents other registered
      securities dealers and may receive (for delivery to the Corporation at the
      Closing Time) subscriptions for Units from other registered securities
      dealers.  The fee payable to such sub-agents shall be for the account
      of the Agent.

     

    In
      consideration for its services hereunder the Agent shall be entitled to the
      commission and expenses provided for in sections 8 and 9, which shall be payable
      or issued, as the case may be, at the Closing Time. For greater certainty,
      except as provided for in sections 8 and 9, the services provided by the Agent
      in connection herewith will not be subject to Goods and Services Tax provided
      for in the Excise Tax Act (Canada) and taxable supplies will be
      incidental to the exempt financial services provided.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      following are the terms and conditions of this Agreement:

     

    
      	
              1.  

            	
              Definitions:

            

    

     

    In
      this
      Agreement:

     

    
      	
              (a)  

            	
              “Agent”
                means J. F. Mackie & Company
                Ltd.;

            

    

     

    
      	
              (b)  

            	
              "Agent's
                Warrants" means warrants to be issued by the Corporation to the
                Agent and its nominees on the Closing Date substantially in the form
                attached as Schedule 1(b), each Agent's Warrant entitling the holder
                thereof to acquire one Common Share at a price of $3.00 for a period
                of 24
                months from the Closing Date;

            

    

     

    
      	
              (c)  

            	
              “Agent's
                counsel” means Heenan Blaikie LLP, or such other legal counsel as
                the Agent, with the consent of the Corporation, acting reasonably,
                may
                appoint;

            

    

     

    
      	
              (d)  

            	
              “Agreement”
                means this agency agreement dated effective June 22, 2007 between
                the
                Agent and the Corporation;

            

    

     

    
      	
              (e)  

            	
              “Applicable
                Securities Laws” includes, collectively, all securities laws,
                rules, regulations, notices, policies and similar instruments applicable
                to the Corporation and to the distribution of securities in accordance
                with this Agreement;

            

    

     

    
      	
              (f)  

            	
              “associates”
                has the meaning ascribed thereto in the Securities Act
                (Alberta);

            

    

     

    
      	
              (g)  

            	
              “business
                day” means a day which is not Saturday, Sunday or a legal holiday
                in the City of Calgary;

            

    

     

    
      	
              (h)  

            	
              “Closing
                Date” means July 18, 2007 or such other date or dates as the
                Agent and the Corporation may agree in
                writing;

            

    

     

    
      	
              (i)  

            	
              “Closing
                Time” means 9:00 a.m. (Calgary time), or such other time on the
                Closing Date as the Agent and the Corporation may agree in
                writing;

            

    

     

    
      	
              (j)  

            	
              “Common
                Shares” means common shares in the capital of the
                Corporation;

            

    

     

    
      	
              (k)  

            	
              "Convertible
                Debentures" means the convertible debentures issued by the
                Corporation pursuant to an indenture dated October 19, 2006 between
                the
                Corporation and Olympia Trust
                Company;

            

    

     

    
      	
              (l)  

            	
              "Convertible
                Promissory Notes" means convertible promissory notes of the
                Corporation dated June 25, 2007 and June 26, 2007, in the form attached
                as
                Schedule 1(l) hereto, having a combined principal amount of US$2,400,000
                and convertible into Units at a ratio of one Unit for each US$2.50
                of
                principal amount converted and also entitling the holder thereof
                to one
                half of one Convertible Promissory Note Warrant for every Common
                Share
                received upon conversion;

            

    

     

    
      	
              (m)  

            	
              "Convertible
                Promissory Note Warrants" means the warrants issuable upon
                conversion of the Convertible Promissory Notes, each whole warrant
                entitling the holder thereof to purchase one Common Share at an exercise
                price of US$2.75 for a period of two years from the date of
                issue;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (n)  

            	
              “Copyrights”
                shall mean all copyrights, and all right, title and interest in all
                copyrights, copyright registrations and applications for copyright
                registration, certificates of copyright and copyrightable subject
                matter
                throughout the world, all right, title and interest in related
                applications and registrations throughout the world, and all moral
                rights;

            

    

     

    
      	
              (o)  

            	
              “Corporation”
                means Red Mile Entertainment, Inc., a body corporate incorporated
                pursuant
                to the laws of Delaware;

            

    

     

    
      	
              (p)  

            	
              “Corporation
                Intellectual Property Rights” shall mean all Intellectual
                Property Rights and Corporation Technology used or proposed to be
                used in,
                or necessary to, the business of the Corporation as currently conducted
                or
                as currently reasonably contemplated by the Corporation, whether
                owned or
                controlled, licenced, or otherwise held by or for the benefit of
                the
                Corporation;

            

    

     

    
      	
              (q)  

            	
              “Corporation
                Technology” shall mean all Technology used or proposed to be used
                in, or necessary to, the business of the Corporation as currently
                conducted or as currently contemplated by the Corporation, whether
                owned
                or controlled, licenced or otherwise held by or for the benefit of
                the
                Corporation.

            

    

     

    
      	
              (r)  

            	
              “Corporation's
                counsel” means Bennett Jones LLP with respect to matters governed
                by the laws of Canada and Lehman and Eilen LLP with respect to matters
                governed by the laws of the United States, or such other legal counsel
                as
                the Corporation may appoint;

            

    

     

    
      	
              (s)  

            	
              “Documents”
                means all documents and other information filed by or on behalf of
                the Corporation in compliance with or intended compliance with Applicable
                Securities Laws or mailed to the securityholders of the
                Corporation;

            

    

     

    
      	
              (t)  

            	
              "Due
                Diligence Responses" means the written responses of the
                Corporation, as given by the directors and officers of the Corporation
                at
                the Due Diligence Sessions, excluding the portion of such responses
                which
                are forward-looking or relate to projections or
                forecasts;

            

    

     

    
      	
              (u)  

            	
              “Due
                Diligence Sessions” has the meaning set forth in subsection 2(c);

            

    

     

    
      	
              (v)  

            	
              “Financial
                Statements” means the audited financial statements of the
                Corporation for the years ended March 31, 2006 and
                2007;

            

    

     

    
      	
              (w)  

            	
              “Indemnified
                Persons” means each of: (i) the Agent; (ii) agents of
                the Agent; (iii) affiliates of the Agent; and (iv) the
                directors, officers, shareholders, partners and employees of the
                Agent,
                agents of the Agent and affiliates of the
                Agent;

            

    

     

    
      	
              (x)  

            	
              “Intellectual
                Property Rights” means (i) any trademarks, trade mark
                registrations, trade mark applications, trade dress and logos, trade
                names, domain names,  business names, corporate names, website
                names and world wide web addresses, business names, brand names,
                service
                marks, computer software, computer programs, Copyrights, including
                any
                performing, author or moral rights, designs, integrated circuit
                topographies, inventions, Patents, franchises, formulae, processes,
                know-how, technology and related goodwill, (ii) any applications,
                registrations, issued Patents, continuations in part, divisional
                applications or analogous rights or licence rights therefor, (iii)
                proprietary and non-public business information, including inventions
                (whether patentable or not), invention disclosures, improvements,
                discoveries, trade secrets, know-how, methods, processes, schematics
                and
                any documentation relating thereto, and (iv) other intellectual or
                industrial property;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (y)  

            	
              "Liquidity
                Transaction" means any of:

            

    

     

    
      	
              (i)  

            	
              the
                Common Shares being listed on the TSX Venture Exchange, the Toronto
                Stock
                Exchange, or any other exchange (a "Recognized Exchange") acceptable
                to
                the Agent and the Corporation becoming a "reporting issuer" (as defined
                in
                applicable securities legislation) in at least one of the Canadian
                Selling
                Jurisdictions;

            

    

     

    
      	
              (ii)  

            	
              all
                of the issued and outstanding Common Shares having been sold, transferred
                or exchanged pursuant to an amalgamation, plan of arrangement or
                other
                business combination, for cash or securities ("Free Trading Securities")
                that are listed on a Recognized Exchange and that are not subject
                to any
                restricted period or hold period under applicable securities laws
                in
                Canada (other than in respect of resales by control
                persons);

            

    

     

    
      	
              (iii)  

            	
              the
                sale by the Corporation of all or substantially all of its assets
                for cash
                or Free Trading Securities and the subsequent distribution of all
                of such
                consideration to all of the Corporation's shareholders (including
                the
                Investors), on a pro-rata basis;

            

    

     

    
      	
              (iv)  

            	
              the
                acceptance of a takeover bid or an issuer bid, made to all holders
                of
                Common Shares for proceeds consisting of cash or Free Trading Securities,
                by holders of Common Shares: (A) who hold not less than 662/3% of
                the
                outstanding Common Shares; and (B) who hold not less than 662/3%
                of the
                outstanding Warrants; or

            

    

     

    
      	
              (v)  

            	
              any
                combination of the events or circumstances described in Subsections
                (i),
                (ii), (iii) or (iv) above;

            

    

     

    
      	
              (z)  

            	
              “Offering”
                means the offering of a minimum of 1,800,000 and a maximum of 4,000,000
                Units;

            

    

     

    
      	
              (aa)  

            	
              “Patents”
                shall mean all patent rights and all right, title and interest in
                and to
                all letters patent or equivalent rights and applications including
                any
                reissue, extension, division, continuation, or continuation in part
                applications throughout the world and any patents issuing with respect
                to
                such applications;

            

    

     

    
      	
              (bb)  

            	
              “Person”
                means a natural person, partnership, limited liability partnership,
                corporation, joint stock company, trust, unincorporated association,
                joint
                venture or other entity;

            

    

     

    
      	
              (cc)  

            	
               “Securities
                Commissions” means the securities commissions or similar
                regulatory authorities in the Selling Jurisdictions and the United
                States
                Securities and Exchange Commission and regulatory authorities in
                the
                individual states of the United
                States;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              (dd)  

            	
              “Subscriber”
                means any person who subscribes for Units and whose Subscription
                Agreement
                is accepted by the Corporation, and “Subscribers” means,
                collectively, all such persons;

            

    

     

    
      	
              (ee)  

            	
              “Subscription
                Agreement” means a subscription agreement to be entered into
                between the Corporation and Subscribers including any amendments
                or
                addendums thereto;

            

    

     

    
      	
              (ff)  

            	
              “Subscription
                Proceeds” means the aggregate gross proceeds received in respect
                of the sale of Units pursuant to the
                Offering;

            

    

     

    
      	
              (gg)  

            	
              “Subsidiary”
                means a subsidiary of the Corporation within the meaning of subsection
                2(4) of the Business Corporations Act (Alberta) and
                “Subsidiaries” means all of
                them;

            

    

     

    
      	
              (hh)  

            	
              “Technology”
                shall mean any algorithms, computer software (in source code and
                object
                code form), documentation, data and data bases, inventions and discoveries
                (whether or not patented or patentable), ideas, concepts, techniques,
                know-how, processes, methods, applications, know-how, content, technical
                information, engineering, production and other designs, drawings,
                schematics, specifications, formulas and all other technology or
                information existing anywhere in the
                world;

            

    

     

    
      	
              (ii)  

            	
              “Third
                Party Intellectual Property Rights” shall mean the Intellectual
                Property Rights and Technology of Persons other than the Corporation
                that
                are used in or necessary to the business of the Corporation as presently
                conducted or as contemplated to be
                conducted;

            

    

     

    
      	
              (jj)  

            	
              "Underlying
                Securities" means the Common Shares and Warrants underlying the
                Units;

            

    

     

    
      	
              (kk)  

            	
              "Units"
                means units of the Corporation, each comprised of one Common Share
                and 0.2
                of a Warrant;

            

    

     

    
      	
              (ll)  

            	
              "Warrant"
                means a warrant entitling the holder thereof to acquire one Common
                Share
                of the Corporation for no additional consideration in the event that
                a
                Liquidity Transaction is not unconditionally completed by the Corporation
                on or prior to the date that is eight months following the Closing
                Date;
                and

            

    

     

    
      	
              (mm)  

            	
              "Warrant
                Indenture" means the indenture dated July 18, 2007 between the
                Corporation and Olympia Trust Company pursuant to which the Warrants
                will
                be issued.

            

    

     

    In
      this
      agreement, “misrepresentation”, “material
      change” and “material fact” shall have the meanings
      ascribed thereto under the Applicable Securities Laws of the Province of
      Alberta; “distribution” means “distribution”
or “distribution to the public”, as the case may be,
      as defined
      under the Applicable Securities Laws of the Province of Alberta; and
“distribute” has a corresponding meaning.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    In
      this
      agreement, “to the best of the knowledge, information and belief
      of” or “to the best of its knowledge, information and
      belief” means, unless otherwise expressly stated, a statement of the
      declarant's knowledge of the facts or circumstances to which such phrase
      related, after having made due and applicable inquiries and investigations
      in
      connection with such facts and circumstances; and “to the best of the
      knowledge, information and belief of the Corporation” or “to
      the best of the Corporation's knowledge, information and belief” means,
      unless otherwise expressly stated, a statement as to the best knowledge of
      each
      of the directors and senior officers of the Corporation about the facts or
      circumstances to which such phrase related, after having made due and applicable
      inquiries and investigations in connection with such facts and
      circumstances.

     

    
      	
              2.  

            	
              Corporation's
                Covenants as to Creation and
                Qualification

            

    

     

    The
      Corporation covenants and agrees:

     

    
      	
              (a)  

            	
              that
                the Units and Underlying Securities will be duly and validly created,
                authorized and issued pursuant to the terms of the Subscription
                Agreements;

            

    

     

    
      	
              (b)  

            	
              that
                the Corporation will: (i) promptly perform all the obligations to be
                performed by it hereunder and under the Subscription Agreements;
                and
                (ii) as soon as reasonably possible, and in any event by the Closing
                Date, execute or procure the execution of all documents and to use
                its
                best efforts to take or cause to be taken all steps as may be necessary
                or
                desirable to fulfill, to the satisfaction of Agent's counsel and
                Corporation's counsel, all legal requirements to enable the Units
                to be
                offered for sale and sold on a private placement basis in the Selling
                Jurisdictions through the Agent by way of the exemptions under Applicable
                Securities Laws of the Selling Jurisdictions as contemplated
                hereby;

            

    

     

    
      	
              (c)  

            	
              that,
                prior to the Closing Time, the Corporation shall allow the Agent
                the
                opportunity to conduct required due diligence, including, without
                limiting
                the generality of the foregoing, due diligence in relation to the
                operations and affairs of the Corporation and provide and cause to
                be
                provided to the Agent and the Agent's counsel reasonable access to
                the
                properties, senior management personnel, and corporate, financial,
                property and other records of the Corporation for the purposes of
                conducting such due diligence reviews.  Without limiting the
                scope of the due diligence inquiries the Agent may conduct, the
                Corporation shall make available its directors and senior management
                to
                answer any questions which the Agent may have and to participate
                in one or
                more due diligence sessions to be held prior to Closing (collectively,
                the
                “Due Diligence Sessions”);
                and

            

    

     

    
      	
              (d)  

            	
              that,
                for the purposes of the Convertible Promissory Notes, all references
                therein to "capital stock of the Company issued in the next financing"
                shall refer to Units.

            

    

     

    
      	
              3.  

            	
              Corporation's
                Covenants as to Changes

            

    

     

    The
      Corporation covenants and agrees that:

     

    
      	
              (a)  

            	
              during
                the period commencing with the date hereof and ending on the Closing
                Date,
                the Corporation will promptly inform the Agent of the full particulars
                of
                (i) any material adverse change, (actual, anticipated or threatened)
                in the assets, liabilities (absolute, accrued, contingent or otherwise),
                business, operations, capital or condition (financial or otherwise)
                of the
                Corporation; and (ii) the occurrence of a material fact or event
                which, in any such case is, or may be, of such a nature to render
                any
                previous disclosure to the Agent untrue, false or misleading in any
                material respect; provided that if there is any reasonable doubt
                as to
                whether a material change, occurrence or event of the nature referred
                to
                in this subsection has occurred, the Corporation shall promptly inform
                the
                Agent of the full particulars of the occurrence giving rise to the
                uncertainty and shall consult with the Agent as to whether the occurrence
                is of such nature;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)  

            	
              during
                the period commencing with the date hereof and ending thirty days
                after
                the Closing Date, the Corporation will promptly inform the Agent
                of the
                full particulars of:  (i) any material request or inquiry
                of any Securities Commission for any information relating to the
                Offering,
                the distribution of the Common Shares, or the Corporation (or any
                of its
                directors or officers); (ii) the issuance by any Securities
                Commission or other securities commissions or similar regulatory
                authority
                or by any other competent authority of any order to cease or suspend
                trading or issuance of any securities of the Corporation or of the
                institution or threat of institution of any proceedings for that
                purpose
                and (iii) the receipt by the Corporation of any communication from
                any
                Securities Commission or any other securities commission, securities
                regulatory authority, stock exchange or other regulatory authority
                relating to the Offering; and

            

    

     

    
      	
              (c)  

            	
              during
                the period commencing on the date hereof and ending thirty days following
                the Closing Date, the Corporation will promptly provide to the Agent,
                for
                review by the Agent and the Agent's counsel, prior to filing, delivery
                or
                issuance:  (i) any proposed document to be delivered to the
                shareholders of the Corporation; and (ii) any press release relating
                to the Corporation or the Offering.

            

    

     

    
      	
              4.  

            	
              Corporation's
                Other Covenants

            

    

     

    The
      Corporation covenants and agrees:

     

    
      	
              (a)  

            	
              to
                use commercially reasonable efforts to complete a Liquidity Transaction
                on
                or prior to the date that is eight months following the Closing
                Date;

            

    

     

    
      	
              (b)  

            	
              to
                use commercially reasonable efforts to cause and allow the conversion
                of
                the Convertible Debentures into Common Shares at a conversion price
                of one
                Common Share for every $2.50 of principal and accrued interest on
                or prior
                to the date that is sixty days following the Closing
                Date;

            

    

     

    
      	
              (c)  

            	
              that,
                from the date hereof and ending on the date that is 90 days following
                the
                Closing Date, it will not offer, or announce the offering of, or
                make or
                announce any agreement to issue, sell, or exchange Common Shares,
                debt
                instruments, preferred shares or securities convertible or exchangeable
                into Common Shares without the prior consent of the Agent, not to
                be
                unreasonably withheld, provided that notwithstanding the foregoing,
                the
                Corporation may: (i) issue Common Shares on exercise of existing
                options
                and warrants outstanding on the date hereof and on conversion of
                outstanding Convertible Debentures, Convertible Promissory Notes
                and
                Convertible Promissory Note Warrants and may grant stock options
                and issue
                Common Shares on the exercise thereof in accordance with the Corporation’s
                existing option incentive programs, without such consent; and (ii)
                issue
                Common Shares in connection with a merger or acquisition without
                such
                consent. Nothwithstanding the foregoing, the Agent hereby grants
                its
                consent to the issue and sale of Units on the same terms and conditions
                as
                the Units issued pursuant to the Offering, up to a maximum of 800,000
                Units, for a period ending on the date that is sixty (60) days following
                the Closing Date pursuant to subscriptions secured by Jennings Capital
                Inc., as sub-agent to the Offering;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              (d)  

            	
              that,
                in the event that the Corporation proposes to retain, in Canada,
                an agent,
                underwriter or financial advisor in respect of a merger, acquisition,
                disposition, take-over, reorganization, arrangement or other corporate
                transaction or the public offering or private placement of any securities
                of the Corporation on an agency or underwritten basis at any time
                prior to
                the date that is twelve months following the Closing Date (the
                "ROFR Expiry Date"), the Agent shall have the right to
                participate as lead agent, lead underwriter or financial advisor,
                as the
                case may be, in respect of such transaction or financing on the proposed
                terms.  If the Corporation proposes to effect any such
                transaction on or before the ROFR Expiry Date, it shall provide the
                Agent
                with written notice thereof setting forth the proposed terms thereof
                and
                the proposed terms of engagement of the Agent, including the proposed
                compensation of the Agent, and the Agent shall have three business
                days
                following the receipt of such notice during which to notify the
                Corporation of its election to accept the position of lead agent,
                lead
                underwriter, or financial advisor, as the case may be, on the terms
                presented.  If the Agent elects to exercise such right in
                connection with the transaction proposed to be undertaken, the Corporation
                will retain the Agent as lead agent, lead underwriter, or financial
                advisor, as the case may be.  If  the Agent elects not
                to exercise such right or the Corporation and the Agent are unable
                to
                agree to the terms of a proposed engagement within such three business
                day
                period, the Corporation may proceed to engage another lead agent,
                lead
                underwriter, or financial advisor, as the case may be, for purposes
                of
                such proposed transaction, provided that in the case where the Corporation
                and the Agent are unable to agree on the terms of the proposed engagement,
                the terms are no more favourable than those offered to the
                Agent.

            

    

     

    
      	
              5.  

            	
              Agent's
                Covenants

            

    

     

    The
      Agent
      covenants and agrees with the Corporation that it will:

     

    
      	
              (a)  

            	
              conduct
                activities in connection with the proposed offer and sale of the
                Units in
                compliance with all Applicable Securities Laws in the Selling
                Jurisdictions;

            

    

     

    
      	
              (b)  

            	
              not
                solicit subscriptions for Units, trade in Units or Underlying Securities
                or otherwise do any act in furtherance of a trade of Units or Underlying
                Securities outside of the Selling Jurisdictions, except in compliance
                with
                the applicable laws thereof in accordance with the terms and conditions
                of
                this Agreement and upon obtaining the prior written consent of the
                Corporation, not to be unreasonably
                withheld;

            

    

     

    
      	
              (c)  

            	
              obtain
                from each Subscriber an executed Subscription Agreement and all applicable
                undertakings, questionnaires and other forms required under Applicable
                Securities Laws and supplied to the Agent by the Corporation for
                completion in connection with the distribution of the Units;
                and

            

    

     

    
      	
              (d)  

            	
              not
                advertise the proposed offering or sale of the Common Shares in printed
                media of general and regular paid circulation, radio or
                television.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              6.  

            	
              Representations
                and Warranties of the
                Corporation

            

    

     

    The
      Corporation represents and warrants to the Agent, and acknowledges that the
      Agent is relying upon such representations and warranties, that:

     

    
      	
              (a)  

            	
              the
                Corporation and each of its Subsidiaries has been duly incorporated
                and is
                valid and subsisting under the laws of its jurisdiction of incorporation
                and has all requisite corporate authority and power to carry on its
                business, as now conducted and as presently proposed to be conducted
                by
                it, and to own, lease and operate its assets and
                properties;

            

    

     

    
      	
              (b)  

            	
              the
                Corporation and each of its Subsidiaries is qualified to carry on
                business
                and is validly existing under the laws of each jurisdiction in which
                it
                carries on a material portion of its
                business;

            

    

     

    
      	
              (c)  

            	
              other
                than 2WG Media, Inc., Roveractive Ltd. and Red Mile
                Entertainment, Pty, the Corporation has no
                Subsidiaries and the Corporation is not affiliated with nor is it
                a
                holding corporation of any other body
                corporate;

            

    

     

    
      	
              (d)  

            	
              the
                Corporation owns all of the outstanding securities of 2WG Media,
                Inc.,
                Roveractive Ltd. and Red Mile Entertainment, Pty, and Red Mile
                Entertainment, Pty does not carry on any active
                business;

            

    

     

    
      	
              (e)  

            	
              the
                Corporation and each of its Subsidiaries has conducted and is conducting
                its business in compliance in all material respects with all applicable
                laws, rules and regulations and, in particular, all applicable licensing
                and environmental legislation, regulations or by-laws or other lawful
                requirements of any governmental or regulatory bodies applicable
                to it in
                each jurisdiction in which it carries on business, and the Corporation
                and
                each of its Subsidiaries holds all material licences, registrations
                and
                qualifications in all jurisdictions in which it carries on its business
                which are necessary or desirable to carry on the business as now
                conducted
                and as presently proposed to be conducted, and all such licenses,
                registrations or qualifications are valid and existing and in good
                standing and none of such licenses, registrations or qualifications
                contains any burdensome term, provision, condition or limitation
                which has
                or is likely to have any material adverse effect on the business
                of the
                Corporation and its Subsidiaries (taken as a whole) as now conducted
                or as
                proposed to be conducted;

            

    

     

    
      	
              (f)  

            	
              the
                Corporation has full corporate power and authority to enter into
                this
                Agreement , the Indenture and the Subscription Agreements and to
                perform
                its obligations set out herein and therein (including, without limitation,
                to cause the issuance of the Units, the Underlying Securities, the
                Agent's
                Warrants and the Common Shares issuable on exercise of the Warrants
                and
                Agent's Warrants), and this Agreement has been, and the Subscription
                Agreements and the Warrant Indenture will on the Closing Date be,
                duly
                authorized, executed and delivered by the Corporation and this Agreement
                is, and the Subscription Agreements and the Warrant Indenture will
                on the
                Closing Date be, legal, valid and binding obligations of the Corporation,
                enforceable against the Corporation in accordance with their respective
                terms subject to applicable bankruptcy, insolvency, moratorium,
                reorganization and other laws and equitable principles affecting
                creditors' rights generally, the statutory and equitable powers of
                the
                courts in Canada and the United States to stay proceedings before
                them and
                the execution of judgments and the fact that specific performance
                and
                injunctive relief are equitable remedies which may be ordered by
                a court
                in its discretion and, accordingly, may not be available as a remedy
                in an
                action to enforce a covenant and subject to the fact that the rights
                to
                indemnity, contribution and waiver set forth herein may be limited
                by
                applicable laws or the public policy underlying such
                laws;;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (g)  

            	
              the
                Common Shares and Warrants comprising the Units have been reserved
                and
                allotted for issuance and when issued on the Closing Date the Common
                Shares issued pursuant to the Offering will be validly issued, fully
                paid
                and non-assessable Common Shares;

            

    

     

    
      	
              (h)  

            	
              the
                Common Shares issuable on exercise of the Warrants and Agent's Warrants
                have been reserved for issuance and, upon exercise of the Warrants
                or
                Agent's Warrants, as the case may be, will be validly issued, fully
                paid
                and non-assessable Common Shares;

            

    

     

    
      	
              (i)  

            	
              the
                definitive forms of certificates representing the Common Shares are
                in due
                and proper form under the laws governing the
                Corporation;

            

    

     

    
      	
              (j)  

            	
              the
                authorized capital of the Corporation consists solely of 100,000,000
                Common Shares and 20,000,000 Preferred Shares of which, as at the
                Closing
                Date (prior to the issuance of Common Shares on the Closing Date),
                9,661,810 Common Shares and nil Preferred Shares shall be issued
                and
                outstanding, which shares shall be validly issued, fully paid and
                non-assessable;

            

    

     

    
      	
              (k)  

            	
              neither
                the Corporation nor its Subsidiaries is a party to or bound by any
                agreement of guarantee, indemnification (other than an indemnification
                of
                directors and officers in accordance with the by-laws of the Corporation
                or its Subsidiaries and applicable laws, indemnities in favour of
                the
                Agent pursuant to this Agreement, indemnities in favour of purchasers
                of
                securities or assets in purchase and sale agreements and indemnities
                and
                guarantees in favour of the bankers of the Corporation, including
                the
                Agent) or any other like commitment of the obligations, liabilities
                (contingent or otherwise) of indebtedness of any other
                person;

            

    

     

    
      	
              (l)  

            	
              other
                than this Agreement and the agreements set forth in Schedule 6(l) hereto, there are no material contracts
                or
                agreements which have or which might have or create any material
                obligation to the Corporation or from which they derive or could
                derive
                any material benefit or which are required by the Corporation to
                carry on
                its business as now conducted by it or as is now proposed to be carried
                on
                by it.  For the purposes of this representation and warranty,
                contracts shall be deemed to give rise to a material obligation where
                such
                contract provides for expenditures by the Corporation for an aggregate
                of
                more than $100,000 during any 12 month
                period;

            

    

     

    
      	
              (m)  

            	
              other
                than promissory notes owing to one of the Corporation's directors
                having
                an aggregate principal amount of $100,000, the Corporation has no
                loans or
                other indebtedness outstanding which have been made to or from any
                of its
                shareholders, officers, directors or employees or any other person
                not
                dealing at arm's length with the
                Corporation;

            

    

     

    
      	
              (n)  

            	
              except
                for transactions contemplated herein and except as otherwise disclosed
                in
                the Documents, the Corporation has not entered into any transaction
                which
                is or may reasonably be expected to be material to the Corporation
                and
                which is not in the ordinary course of
                business;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (o)  

            	
              the
                Corporation is not in default or breach of, and the execution and
                delivery
                of, and the performance of and compliance with the terms of, this
                Agreement and the Subscription Agreements by the Corporation or any
                of the
                transactions contemplated hereby or thereby, does not and will not
                result
                in any breach of, or constitute a default under, and does not and
                will not
                create a state of facts which, after notice or lapse of time or both,
                would result in a breach of or constitute a default under, any term
                or
                provision of the articles, by-laws or resolutions of shareholders
                or
                directors of the Corporation, or any indenture, mortgage, note, contract,
                agreement (written or oral), instrument, lease or other document
                to which
                the Corporation is a party or by which it is bound, or any judgment,
                decree, order, statute, rule or regulation applicable to the Corporation,
                which default or breach might reasonably be expected to materially
                adversely affect the business, operations, capital or condition (financial
                or otherwise) of the Corporation, or its
                assets;

            

    

     

    
      	
              (p)  

            	
              the
                Corporation has provided to the Agent true and correct copies of
                the
                constating documents of the Corporation and minutes of all meetings
                and
                all the resolutions of the directors, shareholders and committees
                of the
                Corporation;

            

    

     

    
      	
              (q)  

            	
              there
                has not been any material adverse change in the consolidated capital,
                assets, or liabilities (absolute, accrued, contingent or otherwise)
                of the
                Corporation from the position set forth in the Financial
                Statements;

            

    

     

    
      	
              (r)  

            	
              the
                books of account and other records of the Corporation, whether of
                a
                financial or accounting nature or otherwise, have been maintained
                in all
                material respects in accordance with prudent business
                practices;

            

    

     

    
      	
              (s)  

            	
              there
                has not been any material adverse change in the business, operations,
                capital or condition (financial or otherwise) or results of the operations
                of the Corporation since the date of the Financial Statements that
                has not
                been disclosed in the Documents and since that date there have been
                no
                material facts, transactions, events or occurrences which, to the
                knowledge of the Corporation could materially adversely affect the
                consolidated capital, assets, liabilities (absolute, accrued, contingent
                or otherwise), business, operations or condition (financial or otherwise)
                or results of the operations of the
                Corporation;

            

    

     

    
      	
              (t)  

            	
              the
                Financial Statements fairly present, in all material respects and
                in
                accordance with generally accepted accounting principles in the United
                States consistently applied, the financial position and condition
                of the
                Corporation as at the dates thereof and reflect all liabilities (absolute,
                accrued, contingent or otherwise) of the Corporation as at the dates
                thereof;

            

    

     

    
      	
              (u)  

            	
              to
                the knowledge of the Corporation, after due inquiry, there have not
                occurred any material spills, emissions or pollution on any property
                of
                the Corporation or for which the Corporation may be responsible,
                nor is
                the Corporation the subject of any outstanding stop orders, control
                orders, clean-up orders or reclamation orders under applicable
                environmental laws and regulations;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (v)  

            	
              to
                the best of the knowledge of the Corporation, no other party is in
                default
                in the observance or performance of any term or obligation to be
                performed
                by it under any contract to which the Corporation is a party or by
                which
                they are bound which is material to the business of the Corporation,
                no
                event has occurred which with notice or lapse of time or both would
                directly or indirectly constitute such a default, in any such case
                which
                default or event would reasonably be expected to have a material
                adverse
                effect on the assets or properties, business, results of operations,
                prospects or condition (financial or otherwise) of the
                Corporation;

            

    

     

    
      	
              (w)  

            	
              there
                are no judgments against the Corporation which are unsatisfied, nor
                are
                there any consent decrees or injunctions to which the Corporation
                is
                subject;

            

    

     

    
      	
              (x)  

            	
              the
                information and statements set forth in the Documents as at the date
                hereof, as they relate to the Corporation, are true, correct, and
                complete
                and did not contain any misrepresentation as of the respective dates
                of
                such information or statements, and no material change (as defined
                in
                Applicable Securities Laws of the Selling Jurisdictions) has occurred
                in
                relation to such information and statements since the respective
                dates of
                such information and statements;

            

    

     

    
      	
              (y)  

            	
              other
                than the securities issued or to be issued pursuant to the Offering,
                no
                person, firm, corporation or other entity holds any securities convertible
                or exchangeable into shares of the Corporation or now has any agreement,
                warrant, option, right or privilege (whether contractual or pre-emptive)
                being or capable of becoming an agreement, warrant, option or right
                for
                the purchase or other acquisition of any unissued shares, securities
                (including convertible securities) or warrants of the Corporation
                except
                for outstanding warrants, options, Convertible Debentures, Convertible
                Promissory Notes and Convertible Promissory Note Warrants to purchase
                an
                aggregate of not more than 6,353,305 Common
                Shares;

            

    

     

    
      	
              (z)  

            	
              the
                Corporation has duly and on a timely basis filed all tax returns
                required
                to be filed by it, has paid all taxes due and payable by it and has
                paid
                all assessments and re-assessments and all other taxes, governmental
                charges, penalties, interest and other fines due and payable by it
                and
                which are claimed by any governmental authority to be due and owing
                and
                adequate provision has been made for taxes payable for any completed
                fiscal period for which tax returns are not yet required and there
                are no
                agreements, waivers, or other arrangements providing for an extension
                of
                time with respect to the filing of any tax return or payment of any
                tax,
                governmental charge or deficiency by the Corporation and, to the
                best of
                the Corporation's knowledge, information and belief, after due inquiry,
                there are no actions, suits, proceedings, investigations or claims
                threatened or pending against the Corporation in respect of taxes,
                governmental charges or assessments or any matters under discussion
                with
                any governmental authority relating to taxes, governmental charges
                or
                assessments asserted by any such
                authority;

            

    

     

    
      	
              (aa)  

            	
              except
                as disclosed in the Financial Statements (i) the Corporation has no
                outstanding liabilities in excess of $10,000 other than those set
                forth in
                Schedule 6(aa), and (ii) there are no
                actions, suits, proceedings or inquiries in existence or, to the
                Corporation's knowledge, after due inquiry, pending or threatened
                against
                or affecting the Corporation at law or in equity or before or by
                any
                federal, provincial, state, municipal or other governmental department,
                commission, board, bureau, agency or instrumentality which in any
                way
                materially adversely affects, or could reasonably be expected in
                any way
                to materially adversely affect, the business, operations, capital
                or
                condition (financial or otherwise) of the Corporation, or any of
                its
                assets or which affects or may affect the distribution of the Units
                or
                Underlying Securities and the Corporation is not aware of any existing
                ground on which such action, suit, proceeding or inquiry might be
                commenced with any reasonable likelihood of
                success;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (bb)  

            	
              other
                than the Agent, there is no person, firm or corporation acting or
                purporting to act for the Corporation entitled to any brokerage or
                finder's fee or other fee or commission in connection with the Offering,
                this Agreement or any of the transactions contemplated
                hereby;

            

    

     

    
      	
              (cc)  

            	
              no
                Securities Commission or any other securities commission or similar
                regulatory authority has issued any order which is currently outstanding
                ceasing, halting, suspending or preventing other trading in any securities
                of the Corporation, no such proceeding is, to the knowledge of the
                Corporation, pending, contemplated or threatened, the Corporation
                is not
                in default of any requirement of Applicable Securities Laws and the
                Corporation is entitled to avail itself of the applicable prospectus
                exemptions available under the Applicable Securities Laws in respect
                of
                the trades in its securities to Subscribers as contemplated by this
                Agreement;

            

    

     

    
      	
              (dd)  

            	
              the
                Corporation is not a “reporting issuer” or the equivalent in any
                jurisdiction in Canada;

            

    

     

    
      	
              (ee)  

            	
              the
                Common Shares are listed and posted for trading on the Over-the-Counter
                Bulletin Board;

            

    

     

    
      	
              (ff)  

            	
              to
                the knowledge of the Corporation, other than as previously disclosed
                to
                the Agent in writing, no insider of the Corporation has any present
                intention to sell any securities of the
                Corporation;

            

    

     

    
      	
              (gg)  

            	
              except
                as have been provided to the Agent as at the date hereof, the Corporation
                is not a party to any contracts of employment which may not be terminated
                on one month's notice or which provide for payments occurring on
                a change
                of control of the Corporation;

            

    

     

    
      	
              (hh)  

            	
              other
                than leases of the Corporation with respect to its office premises,
                the
                Corporation does not own or lease nor has it agreed to acquire or
                lease,
                any interest in real property;

            

    

     

    
      	
              (ii)  

            	
              to
                the knowledge of the Corporation, no officer, director or securityholder
                of the Corporation is subject to any limitations or restrictions
                on their
                activities or investments, including any non-competition provisions,
                that
                would in any way restrict or limit their involvement with the Corporation
                or the business and affairs of the
                Corporation;

            

    

     

    
      	
              (jj)  

            	
              all
                filings by the Corporation pursuant to which the Corporation has
                received
                or is entitled to receive government incentives, have been made in
                accordance, in all material respects, with all applicable legislation
                and
                contain no misrepresentations of material fact or omit to state any
                material fact which could cause any amount previously paid to the
                Corporation or previously accrued on the accounts thereof to be recovered
                or disallowed;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (kk)  

            	
              to
                its knowledge, neither the Corporation nor any of its shareholders
                is a
                party to any unanimous shareholders agreement, pooling agreement,
                voting
                trust or other similar type of arrangements in respect of outstanding
                securities of the Corporation;

            

    

     

    
      	
              (ll)  

            	
              the
                representations and warranties made by the Corporation in the Subscription
                Agreements are, or will at the Closing Date be, true and correct
                as of the
                date at which they are made;

            

    

     

    
      	
              (mm)  

            	
              the
                Corporation either exclusively owns or has the valid right to use
                all
                Corporation Intellectual Property Rights, Corporation Technology
                and all
                Third Party Intellectual Property Rights (and, to the knowledge of
                the
                Corporation, no third party, including any past or present employee
                or
                contractor of the Corporation, owns or has any ownership interest
                in any
                Corporation Intellectual Property Rights or Corporation Technology
                that
                are not Third Party Intellectual Property Rights of the
                Corporation);

            

    

     

    
      	
              (nn)  

            	
              to
                the knowledge of the Corporation, neither the Corporation Intellectual
                Property Rights nor the conduct of the business of the Corporation
                as
                presently conducted or reasonably currently contemplated to be conducted
                uses or discloses in an unauthorized manner, infringes, or constitutes
                a
                misappropriation of any Intellectual Property Right or Technology
                of any
                Person;

            

    

     

    
      	
              (oo)  

            	
              to
                the knowledge of the Corporation, none of the Corporation Intellectual
                Property Rights or Corporation Technology are the subject of any
                interference, re-examination, cancellation, or opposition proceeding,
                or
                any currently pending or to the knowledge of the Corporation threatened,
                suit, action, or proceeding arising out of an alleged right of any
                Person
                with respect to any Intellectual Property Right or
                Technology;

            

    

     

    
      	
              (pp)  

            	
              the
                Corporation Intellectual Property Rights are in full force and effect
                and
                have not been used or enforced or failed to be used or enforced in
                a
                manner that would result in the abandonment, cancellation or
                unenforceability of any of the Corporation Intellectual Property
                Rights.
                All registrations and filings necessary to preserve the rights of
                the
                Corporation in and to the Corporation Intellectual Property Rights
                have
                been made;

            

    

     

    
      	
              (qq)  

            	
              the
                Corporation has not received any oral, written, or other communication
                that the Corporation is using or disclosing in an unauthorized manner,
                infringing, or misappropriating the alleged right of any Person with
                respect to any Intellectual Property Right, other than as set forth
                in
                Schedule 6(qq);

            

    

     

    
      	
              (rr)  

            	
              to
                the knowledge of the Corporation, there is
                no:

            

    

     

    
      	
              (i)  

            	
              claim
                of adverse ownership or invalidity or other opposition to or conflict
                with
                any of the Corporation Intellectual Property Rights or Corporation
                Technology nor of any pending or threatened suit, proceeding, claim,
                demand, action or investigation of any nature or kind against the
                Corporation relating to the Corporation Intellectual Property Rights
                or
                Corporation Technology; or

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (ii)  

            	
              claim
                that any products manufactured, produced, used or sold by the Corporation
                or any process, method, packaging, advertising, or material that
                the
                Corporation employs in the manufacture, marketing, or sale of any
                such
                product, or the use of any of the Corporation Intellectual Property
                Rights
                or Corporation Technology breaches, violates, infringes or interferes
                with
                any rights of any Person or requires payment for the use of any
                Intellectual Property Right, know-how or Technology of another
                Person;

            

    

     

    
      	
              (ss)  

            	
              other
                than as set forth in Schedule 6(ss), none of
                the Corporation Intellectual Property Rights or Corporation Technology
                are
                subject to any proceeding that restricts in any manner the use, transfer
                or licensing thereof by the Corporation or that may affect the validity,
                use or enforceability of the Corporation Intellectual Property Rights
                or
                Corporation Technology; provided that nothing herein applies to the
                prosecution (except for any interference or opposition proceeding)
                of any
                Corporation Intellectual Property Rights in the U.S. Patent and Trademark
                Office or any other government office;
                and

            

    

     

    
      	
              (tt)  

            	
              the
                Corporation has maintained and continues to maintain a system to
                safeguard
                and maintain the secrecy and confidentiality of and its proprietary
                rights
                in all of the material Corporation Intellectual Property Rights and
                Corporation Technology not otherwise protected by patents, patent
                applications, or copyright or trademark law.  Without limitation
                on the generality of the foregoing, (i) any disclosures to third
                parties of trade secrets that are material to the operation of the
                Corporation business have been pursuant to executed written
                confidentiality agreements, (ii) the Corporation has obtained
                confidentiality and inventions assignment agreements, in one or more
                forms, that have protections and conditions, from all of the past
                and
                present employees and independent contractors of the Corporation
                involved
                in the creation or development of the Corporation Intellectual Property
                Rights and Corporation Technology that are material to the operation
                of
                the business of the Corporation, (iii) to the knowledge of the
                Corporation, there has been no breach or violation of any secrecy
                or
                confidentiality commitments of any person in respect of any material
                confidential information of the Corporation, and (iv) the measures
                taken by the Corporation to protect the proprietary and non-public
                aspects
                of the Corporation’s processes and methodology are reasonably designed to
                adequately prevent third parties from using any such aspects of such
                products, without the approval of the Corporation.  No Person
                who has performed services related to the Corporation business has
                any
                right, title or interest in any Corporation Intellectual Property
                Rights
                or Corporation Technology.

            

    

     

    
      	
              (uu)  

            	
              the
                Subscription Proceeds will be used to fund marketing efforts and
                final
                development expenditures for Jackass, the GameTM, game development for
                Heroes over EuropeTM, initial game development for Sin CityTM and for
                general corporate purposes, including ongoing working capital requirements
                as determined by management and the Corporation’s board of
                directors.

            

    

     

    
      	
              7.  

            	
              Conditions

            

    

     

    The
      obligations of the Agent hereunder shall be conditional upon the Agent
      receiving, and the Agent shall have the right on the Closing Date on behalf
      of
      Subscribers to withdraw all Subscription Agreements delivered and not previously
      withdrawn, unless the Agent receives, on or prior to the Closing
      Date:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (a)  

            	
              legal
                opinions of the Corporation's counsel addressed to the Agent, the
                Agent's
                counsel and the Subscribers in form and substance reasonably satisfactory
                to the Agent, with respect to such matters as the Agent may reasonably
                request relating to the offering, issuance and sale of the Units,
                including, without limitation, that as at the Closing
                Date:

            

    

     

    
      	
              (i)  

            	
              the
                Corporation and each of its Subsidiaries is valid and subsisting
                under the
                laws of its jurisdiction of incorporation and has all requisite corporate
                power and authority to carry on its business as now conducted by
                it and to
                own its assets and is qualified to carry on business under the laws
                of
                each jurisdiction in which it carries on a material portion of its
                business;

            

    

     

    
      	
              (ii)  

            	
              the
                Corporation has full corporate power and authority to enter into
                this
                Agreement and the Subscription Agreements and to perform its obligations
                set out herein and therein, and this Agreement has been and the
                Subscription Agreements will, on the Closing Date, be duly authorized,
                executed and delivered by the Corporation and constitute legal, valid
                and
                binding obligations of the Corporation enforceable against the Corporation
                in accordance with their respective terms, subject to applicable
                bankruptcy, insolvency, moratorium, reorganization and other laws
                and
                equitable principles affecting creditors' rights generally, the statutory
                and equitable powers of the courts in Canada or the United States
                to stay
                proceedings before them and the execution of judgments and the fact
                that
                specific performance and injunctive relief are equitable remedies
                which
                may be ordered by a court in its discretion and, accordingly, may
                not be
                available as a remedy in an action to enforce a covenant and subject
                to
                the fact that the rights to indemnity, contribution and waiver set
                forth
                herein may be limited by applicable laws or the public policy underlying
                such laws;

            

    

     

    
      	
              (iii)  

            	
              the
                execution and delivery of this Agreement and the Subscription Agreements
                and the fulfillment of the terms hereof or thereof by the Corporation
                and
                the performance of and compliance with the terms of this Agreement
                and the
                Subscription Agreements by the Corporation do not and will not result
                in a
                breach of, or constitute a default under, and do not and will not
                create a
                state of facts which, after notice or lapse of time or both, will
                result
                in a breach of or constitute a default
                under:

            

    

     

    
      	
              A.  

            	
              any
                applicable federal laws of the United States applicable to the
                Corporation;

            

    

     

    
      	
              B.  

            	
              any
                term or provision of the articles, by-laws or resolutions of the
                directors
                or shareholders of the Corporation;

            

    

     

    
      	
              C.  

            	
              of
                which the Corporation's counsel is aware, any of the terms or provisions
                of any mortgage, note, indenture, contract, agreement (written or
                oral),
                instrument, lease or other document to which the Corporation is a
                party or
                by which it is bound on the Closing Date;
                or

            

    

     

    
      	
              D.  

            	
              of
                which Corporation’s counsel is aware, any judgment, decree or order
                applicable to the Corporation, which
                default or breach might reasonably be expected to materially adversely
                affect the business, operations, capital or condition (financial
                or
                otherwise) of the Corporation or its properties or
                assets.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (iv)  

            	
              the
                form and terms of the certificates representing the Common
                Shares  have been approved and adopted by the board of directors
                of the Corporation and confirm with applicable law and the constating
                documents of the Corporation;

            

    

     

    
      	
              (v)  

            	
              the
                Common Shares and Warrants comprising the Units have been reserved
                and
                allotted for issuance and, when issued in accordance with the terms
                of the
                Subscription Agreements, the Common Shares issued pursuant to the
                Offering
                will be validly issued, fully paid and non-assessable Common Shares
                of the
                Corporation;

            

    

     

    
      	
              (vi)  

            	
              the
                Common Shares to be issued upon exercise of the Warrants and Agent's
                Warrants have been reserved and allotted for issuance and, when issued
                upon exercise of the Warrants or Agent's Warrants, as the case may
                be,
                will be validly issued as fully paid and non-assessable Common Shares
                of
                the Corporation;

            

    

     

    
      	
              (vii)  

            	
              all
                Applicable Securities Laws of the Selling Jurisdictions and the United
                States of America in connection with the creation, offering, issuance
                and
                sale of the Units, Underlying Securities and Agent's Warrants have
                been
                complied with by the Corporation assuming distribution by the Agent
                in
                compliance with the relevant provisions of such Applicable Securities
                Laws;

            

    

     

    and
      additionally relating to:

     

    
      	
              (i)  

            	
              the
                distribution of the Common Shares issuable on exercise of the Warrants
                and
                the Agent's Warrants; and

            

    

     

    
      	
              (ii)  

            	
              the
                first trade in Canada of the Common Shares and Warrants and the Common
                Shares issuable on exercise of the Warrants and Agent's
                Warrants;

            

    

     

    and
      as to
      all other legal matters, in any way connected with the Offering and issuance,
      sale and delivery of the Units as the Agent may reasonably request.

     

    It
      is
      understood that the Corporation's counsel may rely on the opinions of local
      counsel acceptable to it as to matters governed by the laws of jurisdictions
      other than the jurisdiction of residence of such counsel and on certificates
      of
      officers of the Corporation and public officials as to relevant matters of
      fact.

     

    
      	
              (b)  

            	
              a
                certificate of the Corporation dated the Closing Date, addressed
                to the
                Agent and signed on the Corporation's behalf by its President or
                such
                other officer or director of the Corporation satisfactory to the
                Agent,
                acting reasonably, certifying that:

            

    

     

    
      	
              (i)  

            	
              the
                Corporation has complied with and satisfied in all material respects
                all
                covenants and conditions of this Agreement on its part to be complied
                with
                or satisfied at or prior to the Closing Time except to the extent
                same
                have been waived by the Agent;

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              (ii)  

            	
              the
                representations and warranties of the Corporation set forth in this
                Agreement and, where applicable, in the Subscription Agreements are
                true
                and correct in all material respects at the Closing Time, as if made
                at
                such time;

            

    

     

    
      	
              (iii)  

            	
              no
                event of a nature referred to in subsection 12(b)(i), (iii), (vi) or (ix) has occurred since
                the date of this Agreement or to the knowledge of such officer is
                pending,
                contemplated or threatened;

            

    

     

    
      	
              (iv)  

            	
              the
                Corporation has made and/or obtained, at or prior to the Closing
                Time, all
                necessary filings, approvals, consents and acceptances under Applicable
                Securities Laws, and under any applicable agreement or document to
                which
                the Corporation is a party or by which it is bound in respect of
                the
                execution and delivery of this Agreement and the offering and sale
                of the
                Units and the consummation of the transactions contemplated hereby;
                and

            

    

     

    
      	
              (v)  

            	
              no
                order suspending the sale or ceasing the trading of Common Shares
                has been
                issued and no proceedings for that purpose have been instituted or
                are
                pending or to the knowledge of such officer are threatened under
                Applicable Securities Laws;

            

    

     

    
      	
              (c)  

            	
              definitive
                certificates for the Common Shares and Warrants comprising the Units
                subscribed for pursuant to the Offering, registered in such name
                or names
                as the Agent shall notify the Corporation in writing not less than
                48 hours prior to the Closing Time, provided such certificates
                registered in such names may, subject to receipt by the Corporation,
                be
                delivered in advance of the Closing Date to the Agent or such other
                parties in such locations as the Agent may direct and the Agent and
                the
                Corporation may agree upon;

            

    

     

    
      	
              (d)  

            	
              definitive
                certificates for the Common Shares, Warrants and Convertible Promissory
                Note Warrants issuable on conversion of the Convertible Promissory
                Notes
                held by persons with accounts established with the Agent, registered
                in
                such name or names as the Agent shall notify the Corporation in writing
                not less than 48 hours prior to the Closing
                Time;

            

    

     

    
      	
              (e)  

            	
              definitive
                certificates for the Agent's Warrants issuable hereunder registered
                in
                such name or names as the Agent shall notify the Corporation in writing
                not less than 48 hours prior to the Closing
                Time;

            

    

     

    
      	
              (f)  

            	
              executed
                copies of the Subscription Agreements in form and substance reasonably
                satisfactory to the Agent and the Agent's
                counsel;

            

    

     

    
      	
              (g)  

            	
              payment
                of all commissions payable by the Corporation to the Agent pursuant
                to
                section 8 and all expenses payable by the Corporation pursuant to
                section 9; and

            

    

     

    
      	
              (h)  

            	
              such
                other matters as may be reasonably requested by the
                Agent.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      foregoing conditions are for the sole benefit of the Agent and may be waived
      in
      whole or in  part by the Agent at any time and without limitation, and
      the Agent shall have the right, if any of the foregoing conditions are not
      met,
      on behalf of potential Subscribers, to withdraw all Subscription Agreements
      delivered and not previously accepted by the Corporation or withdrawn or
      rescinded by such persons.  If any of the foregoing conditions are not
      met on or before the Closing Date, the Agent may terminate its obligations
      under
      this Agreement without prejudice to any other remedies it may have.

     

    
      	
              8.  

            	
              Agent’s
                Commission

            

    

     

    In
      consideration for the services performed by the Agent hereunder, the Corporation
      agrees to, at the Closing Time:

     

    
      	
              (a)  

            	
              pay
                to the Agent a commission equal to 6.0% of the gross proceeds raised
                from
                the sale of the Units plus 6% of the principal amount of the Convertible
                Promissory Notes held by persons with accounts established with the
                Agent;
                and

            

    

     

    
      	
              (b)  

            	
              issue
                to the Agent and/or its nominees an aggregate number of Agent's Warrants
                equal to 8% of the aggregate of (i) the number of Units issued pursuant
                to
                the Offering and (ii) the number of Common Shares issuable pursuant
                to the
                Convertible Promissory Notes held by persons with accounts established
                with the Agent, which Agent's Warrants shall be substantially in
                the form
                set forth in Schedule 1(b) hereto.

            

    

     

    
      	
              9.  

            	
              Expenses

            

    

     

    Whether
      or not the transactions contemplated herein shall be completed, the Corporation
      agrees to pay all reasonable costs and expenses of or incidental to the
      Offering, including, without limitation, all reasonable costs and expenses
      related to the preparation, filing and reproduction of documents and the
      out-of-pocket expenses of the Agent including the reasonable fees, disbursements
      and expenses incurred by the Agent's counsel (to a maximum of US$40,000)
      relating to the transactions contemplated herein.

     

    
      	
              10.  

            	
              Closing

            

    

     

    The
      issue
      and sale of the Units shall be completed at the Closing Time at the offices
      of
      the Corporation's counsel or at such other place as the Corporation and the
      Agent may agree. Subject to the conditions set forth in section 7, the Agent, on the Closing Date, shall deliver
      to the
      Corporation:

     

    
      	
              (a)  

            	
              all
                executed Subscription Agreements;

            

    

     

    
      	
              (b)  

            	
              via
                wire transfer, United States funds in an amount equal to the aggregate
                gross subscription price of all subscriptions delivered to and accepted
                by
                the Corporation (other than in respect of the Agent Units) less the
                fees
                and expenses set forth in sections 8 and 9 hereof;
                and

            

    

     

    
      	
              (c)  

            	
              all
                Convertible Promissory Notes held by persons with accounts established
                with the Agent tendered to the Corporation for cancellation, 
                against
                  delivery by the Corporation to the Agent of the certificates, opinions
                  and
                  documents set forth in section 7
                  hereof.

              

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Corporation may not reject any properly completed Subscription Agreement, unless
      (i) the issuance of Units would breach Applicable Securities Laws or (ii) the
      aggregate of the number of Units subscribed for pursuant to all Subscription
      Agreements tendered by the Agent exceeds the maximum number of Units to be
      issued pursuant to the Offering.

     

    
      	
              11.  

            	
              Waiver

            

    

     

    The
      Agent
      may waive in whole or in part any breach of, default under or non-compliance
      with any representation, warranty, covenant, term or condition hereof, or extend
      the time for compliance therewith, without prejudice to any of its rights in
      respect of any other representation, warranty, covenant, term or condition
      hereof or any other breach of, default under or non-compliance with any other
      representation, warranty, covenant, term or condition hereof, provided that
      any
      such waiver or extension shall be binding on the Agent only if the same is
      in
      writing.

     

    
      	
              12.  

            	
              Termination
                Events

            

    

     

    
      	
              (a)  

            	
              All
                representations, warranties, covenants, terms and conditions of this
                Agreement shall be construed as conditions, and any material breach
                or
                failure to comply with any such representation, warranty, covenant,
                term
                or condition shall entitle the Agent or the Corporation, as applicable,
                to
                terminate its obligation to distribute the Units by written notice
                to that
                effect given to the Corporation or the Agent, as applicable, prior
                to the
                Closing Date.

            

    

     

    
      	
              (b)  

            	
              In
                addition to any other remedies which may be available to the Agent,
                the
                Agent shall be entitled, at its option, to terminate and cancel its
                obligations under this Agreement if, prior to the Closing Time on
                the
                Closing Date:

            

    

     

    
      	
              (i)  

            	
              any
                inquiry, investigation (whether formal or informal) or other proceeding
                is
                announced or commenced by any Securities Commission or similar regulatory
                authority, or any order is issued in relation to the Corporation,
                any of
                its Subsidiaries, or any of its directors or officers or any of the
                Corporation's securities or any order is issued under or pursuant
                to any
                statute of Canada or the United States or of any of the provinces
                of
                Canada or states of the United States, or any other applicable law
                or
                regulatory authority (unless based on the activities or alleged activities
                of the Agent or its sub-agents); or

            

    

     

    
      	
              (ii)  

            	
              there
                is any change of law, regulation or policy or the interpretation
                or
                administration thereof, which, in the reasonable opinion of the Agent,
                prevents or materially restricts trading in or the distribution of
                the
                Common Shares or has or would be expected to have a material adverse
                effect on the market price or value of or the investment quality
                or
                marketability of the Common Shares;
                or

            

    

     

    
      	
              (iii)  

            	
              there
                shall occur an event, fact or circumstance, (actual, contemplated
                or
                threatened), which constitutes a material change or any change in
                a
                material fact or a development that could result in a material change
                or
                change in a material fact in respect of the business, operations,
                capital,
                condition (financial or otherwise), properties, assets, liabilities,
                obligations or affairs of the Corporation which, in the reasonable
                opinion
                of the Agent, could reasonably be expected to prevent or materially
                restrict trading in or the distribution of the Common Shares or has
                or
                would reasonably be expected to have a material adverse effect on
                the
                market price or value of or the investment quality or marketability
                of the
                Common Shares; or

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              (iv)  

            	
              the
                state of the financial markets or the market for video games or any
                aspects thereof including federal, provincial or state tax laws applying
                thereto become such that in the opinion of the Agent (A) the Common
                Shares cannot be profitably marketed; or (B) the advantages or risk
                of investing in the Common Shares has been materially adversely altered;
                or

            

    

     

    
      	
              (v)  

            	
              there
                should develop, occur or come into effect or existence any event,
                action,
                state, condition or major financial occurrence of national or
                international consequence, acts of hostility or escalation thereof
                or any
                other calamity or crisis or any change or development involving a
                prospective change in national or international political, financial
                or
                economic conditions, or any law or regulation (including federal,
                provincial or state taxation laws) is enacted or changed which, in
                the
                sole opinion of the Agent, acting reasonably, materially adversely
                affects, or involves, or could reasonably be expected to materially
                adversely affect or involve, the business, operations, affairs, assets,
                liabilities (contingent or otherwise), capital or control of the
                Corporation or the market price or value of the Common Shares;
                or

            

    

     

    
      	
              (vi)  

            	
              the
                Corporation shall be in breach of, default under or non-compliance
                with
                any material representation, warranty, term or condition of this
                Agreement
                or the Subscription Agreements; or

            

    

     

    
      	
              (vii)  

            	
              the
                Agent discovers any facts or matters with respect to the Corporation
                or
                the insiders of the Corporation pursuant to the Agent's due diligence
                review or otherwise that are not satisfactory to the Agent, acting
                reasonably; or

            

    

     

    
      	
              (viii)  

            	
              the
                Agent shall determine that the responses provided by the Corporation
                at
                the Due Diligence Sessions contained information which would have,
                in the
                sole opinion of the Agent, acting reasonably, a material adverse
                effect on
                the market price or value of the Common Shares;
                or

            

    

     

    
      	
              (ix)  

            	
              any
                order to cease or suspend trading in any securities of the Corporation,
                or
                prohibiting or restricting the distribution of the Common Shares
                is made,
                or proceedings are announced or commenced for the making of, any
                such
                order, by any Securities Commission, any other securities commissions
                or
                similar regulatory authority, and has not been rescinded, revoked
                or
                withdrawn within two business days;

            

    

     

    in
      any of
      which cases the Agent shall be entitled, at its option, to terminate and cancel
      its obligations to the Corporation under this Agreement and the obligations
      of
      any purchaser under any Subscription Agreement by written notice to that effect
      given to the Corporation prior to the Closing.  In the event of any
      such termination, the Corporation's liabilities to the Agent shall be at an
      end
      except for any liability of the Corporation provided for in this Agreement
      which
      by its terms survives termination.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              (c)  

            	
              The
                Agent may exercise any or all of the rights provided for in section
                7 or
                subsections 12(a) or 12(b) notwithstanding any material change, change,
                event or state of facts and notwithstanding any act or thing taken
                or done
                by the Agent or any inaction by the Agent, whether before or after
                the
                occurrence of any material change, including, without limitation,
                any act
                of the Agent related to the Offering or continued offering of the
                Units
                for sale other than any unlawful act relating solely to the Agent
                and the
                Agent shall only be considered to have waived or be estopped from
                expressing or relying upon any of their rights under or pursuant
                to
                section 7 or subsections 12(a) or 12(b) if such waiver or estoppel
                is in
                writing and specifically waives or estops such exercise or
                reliance.

            

    

     

    
      	
              (d)  

            	
              Any
                termination pursuant to the terms of this Agreement shall be effected
                by
                notice in writing delivered by the Agent to the Corporation; provided
                that
                no termination shall discharge or otherwise affect any obligation
                of the
                Corporation under section  9, provided that the termination does
                not result from a breach by the Agent of its representations, warranties
                and covenants hereunder, and sections 14 through 22.  The rights
                of the Agent to terminate its obligations hereunder are in addition
                to,
                and without prejudice to, any other remedies it may
                have.

            

    

     

    
      	
              13.  

            	
              Survival

            

    

     

    All
      representations, warranties, terms and conditions herein or contained in
      certificates or documents submitted pursuant to or in connection with the
      transactions contemplated herein shall not merge on the completion of the
      transactions contemplated hereby or the termination of this Agreement, but
      shall
      survive and continue in full force and effect for the benefit of the Agent
      and
      the Subscribers for a period of two years from the Closing Date regardless
      of
      any investigation by or on behalf of the Agent with respect
      thereto.

     

    
      	
              14.  

            	
              Indemnity

            

    

     

    
      	
              (a)  

            	
              The
                Corporation shall indemnify and save each of the Indemnified Persons
                harmless from and against any and all losses (other than loss of
                profits
                or commissions), claims, damages, liabilities, demands, expenses
                (including reasonable fees and disbursements of counsel) or costs
                (collectively “Claims”) which any of the Indemnified Persons may suffer or
                incur, whether under the provisions of any statute or otherwise,
                in any
                way caused by, or arising directly or indirectly from or in consequence
                of:

            

    

     

    
      	
              (i)  

            	
              any
                information or statement contained in the Subscription Agreements
                or the
                Documents which is untrue or misleading or which omits to provide
                any
                information or state any fact the omission of which makes the statement
                untrue or misleading in light of the circumstances in which it was
                made;
                or

            

    

     

    
      	
              (ii)  

            	
              any
                misrepresentation or alleged misrepresentation contained in the
                Subscription Agreements or the Documents;
                or

            

    

     

    
      	
              (iii)  

            	
              any
                order, inquiry or investigation of the type referred to in
                subsection 12(b)(i); or

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              (iv)  

            	
              any
                prohibition or restriction in trading in the securities of the Corporation
                or any prohibition or restriction affecting the distribution of the
                Units
                or the Underlying Securities imposed by any competent authority if
                such
                prohibition or restriction is based on any misrepresentation or alleged
                misrepresentation of a kind referred to in subsection 14(a)(ii);
                or

            

    

     

    
      	
              (v)  

            	
              any
                breach of, default under or non-compliance by the Corporation with
                any
                representation, warranty, term or condition of this Agreement or
                any
                requirement of Applicable Securities
                Laws.

            

    

     

    
      	
              (b)  

            	
              The
                rights of indemnity contained in this section 14 shall not apply
                to any
                Claim to the extent that a court of competent jurisdiction in a final
                judgment from which no appeal can be made or regulatory authority
                in a
                final ruling from which no appeal can be made shall determine that
                such
                Claim resulted from the gross negligence, fraud or wilful misconduct
                of
                the person claiming indemnity.

            

    

     

    
      	
              (c)  

            	
              The
                Corporation hereby waives its rights to recover contribution from
                the
                Agent and any Indemnified Persons with respect to any liability of
                the
                Corporation by reason of or arising out of any misrepresentation
                contained
                in any of the documents referred to in subsection 14(a) provided,
                however,
                that such waiver shall not apply to misrepresentations relating to
                the
                Agent contained in any of the documents referred to in subsection
                14(a)
                and furnished to the Corporation by the Agent expressly for inclusion
                in
                such document or to any Claim to the extent that a court of competent
                jurisdiction in a final judgment from which no appeal can be made
                or
                regulatory authority in a final ruling from which no appeal can be
                made
                shall determine that such Claim resulted from the gross negligence,
                fraud
                or willful misconduct of the person claiming
                indemnity.

            

    

     

    
      	
              (d)  

            	
              The
                Corporation agrees that in case any legal proceedings or investigation
                shall be brought against or initiated against the Corporation by
                any
                governmental commission, regulatory authority, exchange, court or
                other
                authority and an Indemnified Person or other representative of the
                Agent
                shall be required to testify or respond to procedures designed to
                discover
                information regarding, in connection with or relating to the performance
                of professional services rendered to the Corporation by the Agent,
                the
                Corporation shall be responsible to pay the Agent the reasonable
                costs
                (including an amount to reimburse the Indemnified Person for the
                time
                spent by its personnel in connection therewith on a per diem basis
                and out
                of pocket expenses) in connection
                therewith.

            

    

     

    
      	
              (e)  

            	
              Promptly
                after receipt of notice of the commencement or threatened commencement
                of
                any legal proceeding of the type described or referred to above against
                an
                Indemnified Person, such Indemnified Person shall notify the Corporation
                in writing of the commencement thereof and, throughout the course
                thereof,
                shall provide copies of all relevant documentation to the Corporation,
                will keep the Corporation advised of the progress thereof and will
                discuss
                with the Corporation all significant actions proposed.  The
                omission so to notify the Corporation shall not relieve the Corporation
                of
                any liability which the Corporation may have to the Indemnified Person
                provided that any such delay in or failure to give notice as herein
                required does not materially prejudice the defence of the legal
                proceedings or investigation and does not result in any material
                increase
                in the liability which the Corporation would otherwise have under
                this
                indemnity had the Indemnified Person not so delayed in or failed
                to give
                the notice herein required.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              (f)  

            	
              The
                Corporation shall have the right to assume the carriage of the defence
                of
                any such legal proceeding or investigation on behalf of the Indemnified
                Person unless:

            

    

     

    
      	
              (i)  

            	
              the
                Indemnified Person has been advised in writing by its counsel that
                by so
                doing there is a substantial risk of a conflict of interest between
                the
                position of the Indemnified Person and the Corporation's position
                as to
                the conduct of the defence thereof;
                or

            

    

     

    
      	
              (ii)  

            	
              the
                Corporation has failed to undertake a defence of such legal proceeding
                or
                investigation or appoint counsel reasonably acceptable to the Indemnified
                Person within seven days from the date that notice of the action
                has been
                first received by the Corporation.

            

    

     

    The
      reasonable fees and expenses of counsel for the Indemnified Person in either
      of
      the circumstances described in subsection 14(f)(i) or subsection 14(f)(ii)
      above
      shall be for the account of and shall be paid by the Corporation; it being
      understood, however, that the Corporation shall not, in connection with any
      one
      such action or separate but substantially similar or related actions in the
      same
      jurisdiction arising out of the same general allegations or circumstances,
      be
      liable for the reasonable fees and expenses of more than one separate law firm
      (in addition to any local counsel) for all such Indemnified
      Persons.  Neither the Corporation nor the Indemnified Person may
      effect settlement of the action without the other's prior written
      consent.

     

    
      	
              (g)  

            	
              It
                is the intention of the Corporation to constitute the Agent as trustee
                for
                the Indemnified Persons for the purposes of this section 14 and the
                Agent
                agrees to accept such trust and to hold and enforce such covenants
                on
                behalf of such persons.

            

    

     

    
      	
              (h)  

            	
              No
                admission of liability and no settlement of any proceeding shall
                be made
                without the consent of the Indemnified Persons affected, such consent
                not
                to be unreasonably withheld.

            

    

     

    
      	
              15.  

            	
              Right
                of Contribution

            

    

     

    In
      order
      to provide for just and equitable contribution in circumstances in which the
      indemnification provided for in this Agreement is due in accordance with its
      terms but is (in whole or in part), for any reason, held by a court to be
      unavailable from the Corporation on grounds of policy or otherwise, each of
      the
      Corporation and the party or parties seeking indemnification shall contribute
      to
      the aggregate liabilities, claims, demands, losses (other than losses of profit
      in connection with the distribution of the Units or Underlying Securities),
      costs, damages and expenses (or claims, actions, suits or proceedings in respect
      thereof) to which they may be subject or which they may suffer or
      incur:

     

    
      	
              (a)  

            	
              in
                such proportion as is appropriate to reflect the relative benefit
                received
                by the Corporation on the one hand and by the Agent on the other
                hand from
                the offering of the Units; or

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)  

            	
              if
                the allocation provided by subsection 15(a) above is not permitted
                by
                applicable law, in such proportion as is appropriate to reflect not
                only
                the relative benefits referred to in subsection 15(a) above but also
                to
                reflect the relative fault of the party or parties seeking indemnity,
                on
                the one hand, and the parties from whom indemnity is sought, on the
                other
                hand, in connection with the statement, omission, misrepresentation
                or
                alleged misrepresentation, order, inquiry, investigation or other
                matter
                or thing which resulted in such Claims, as well as any other relevant
                equitable considerations.

            

    

     

    The
      relative benefits received by the Corporation, on the one hand, and the Agent,
      on the other hand, shall be deemed to be in the same proportion that the total
      proceeds of the Offering received by the Corporation (net of fees but before
      deducting expenses) bear to the commission and fees received by the
      Agent.

     

    The
      amount paid or payable by an Indemnified Person as a result of Claims referred
      to above shall, without limitation, include any legal or other expenses
      reasonably incurred by the Indemnified Person in connection with investigating
      or defending such Claims, whether or not resulting in any action, suit,
      proceeding or claim.

     

    The
      Corporation agrees that it would not be just and equitable if contributions
      pursuant to this Agreement were determined by pro rata allocation or by any
      other method of allocation which does not take into account the equitable
      considerations referred to in the immediately preceding sections.  The
      rights to contribution provided in this section 15 shall be in addition to,
      and
      without prejudice to, any other right to contribution which the Agent may
      have.

     

    Any
      liability of the Agent under this section 15 shall be limited to the commissions
      payable to the Agent pursuant to section 8 hereof.

     

    
      	
              16.  

            	
              Notices

            

    

     

    Any
      notice or other communication to be given hereunder shall, in the case of notice
      to be given to the Corporation, be addressed to:

     

    Red
      Mile
      Entertainment, Inc.

    4000
      Bridgeway, Suite 101

    Sausalito,
      California 95965

     

    Attention:                      Mr.
      Ben Zadik, Chief Financial Officer

    Facsimile
      No.:                (415)
      339-4249

     

    with
      copies to:

     

    Bennett
      Jones LLP

    4500
      Bankers Hall East

    855-2nd
      Street
      S.W.

    Calgary,
      Alberta T2P 4K7

     

    Attention:                      Bruce
      Hibbard

    Facsimile
      No.:                (403)265-7219

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    and
      in
      the case of notice to be given to the Agent, addressed to:

     

    J.
      F.
      Mackie & Company Ltd.

    Suite
      1550, 335-8th Avenue S.W.

    Calgary,
      Alberta T2P 1C9

     

    Attention:                      Phil
      Hodge

    Facsimile
      No.:                (403)
      218-6377

     

    with
      a
      copy to:

     

    Heenan
      Blaikie LLP

    Barristers
      and Solicitors

    1200,
      425-1st Street
      S.W.

    Calgary,
      Alberta  T2P 3L8

     

    Attention:                      Tim  Sweeney

    Facsimile
      No.:                (403)
      234-7987

     

    or
      to
      such other address as the party may designate by notice given to the others.
      Each communication shall be personally delivered to the addressee or sent by
      facsimile transmission to the addressee, and:

     

    
      	
              (a)  

            	
              a
                communication which is personally delivered shall, if delivered before
                4:30 p.m. (local time) on a business day, be deemed to be given and
                received on that day and, in any other case be deemed to be given
                and
                received on the first business day following the day on which it
                is
                delivered; and

            

    

     

    
      	
              (b)  

            	
              a
                communication which is sent by facsimile transmission shall, if sent
                on a
                business day before 4:30 p.m. (local time), be deemed to be given
                and
                received on that day and, in any other case be deemed to be given
                and
                received on the first business day following the day on which it
                is
                sent.

            

    

     

    
      	
              17.  

            	
              Trust

            

    

     

    The
      Corporation hereby constitutes the Agent as trustee for the Subscribers in
      respect of the benefit to the representations, warranties and covenants of
      the
      Corporation set forth in this Agreement and the Subscription
      Agreements.

     

    
      	
              18.  

            	
              Severance

            

    

     

    If
      one or
      more of the provisions contained herein shall, for any reason, be held to be
      invalid, illegal or unenforceable in any respect, such invalidity, illegality
      or
      unenforceability shall not affect any other provision of this Agreement, but
      this Agreement shall be construed as if such invalid, illegal or unenforceable
      provision or provisions had never been contained herein.

     

    
      	
              19.  

            	
              Governing
                Law

            

    

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      Province of Alberta and the laws of Canada applicable therein, with the
      exception of those principles relating to conflict of laws.  Each of
      the parties hereto irrevocably attorns to the jurisdiction of the courts of
      the
      Province of Alberta.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              20.  

            	
              Currency

            

    

     

    Unless
      otherwise indicated, all references to dollar amounts contained herein shall
      refer to lawful money of the United States of America.

     

    
      	
              21.  

            	
              Time
                of the Essence

            

    

     

    Time
      shall be of the essence of this Agreement.

     

    
      	
              22.  

            	
              Counterpart
                Execution

            

    

     

    This
      Agreement may be executed in one or more counterparts each of which so executed
      shall constitute an original and all of which together shall constitute one
      and
      the same agreement. The parties hereto shall be entitled to rely on delivery
      of
      a facsimile or other electronic copy of this executed agreement and such
      facsimile or other electronic copy shall be legally effective to create a valid
      and binding agreement.

     

    
      	
              23.  

            	
              Entire
                Agreement

            

    

     

    It
      is
      understood that the terms and conditions of this Agreement supersede any
      previous verbal or written agreement between the Agent and the Corporation
      with
      respect to the issuance of Units by the Corporation.

     

    [Remainder
      of page intentionally left blank]

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    If
      the
      foregoing is in accordance with your understanding and is agreed to by you,
      please confirm your acceptance by signing the enclosed copies of this letter
      at
      the place indicated and by returning the same to the Agent's
      counsel.

     

    

     

    
      	
              RED
                MILE ENTERTAINMENT, INC.

            
	 	 
	
              Per:

            	/s/ 
              Ben Zadik
	 	
              Ben
                Zadik

            
	 	 
	 
	
              J.
                F. MACKIE & COMPANY LTD.

            
	 	 
	
              Per:

            	/s/ 
              Phil Hodge
	 	
              Phil
                Hodge

            
	 	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      1(b) – Form of Agent's Warrant

     

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR (4) MONTHS AND A DAY AFTER
      THE
      LATER OF JULY 18, 2007 AND THE DATE THE CORPORATION BECAME A REPORTING ISSUER
      IN
      ANY PROVINCE OR TERRITORY OF CANADA.

     

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR STATE SECURITIES
      LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT
      OF RED MILE ENTERTAINMENT, INC. THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR
      OTHERWISE TRANSFERRED ONLY (A) TO RED MILE ENTERTAINMENT, INC., (B) OUTSIDE
      THE
      UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES
      ACT, (C) INSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 144A UNDER THE
      SECURITIES ACT, OR (D) INSIDE THE UNITED STATES, PURSUANT TO AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS
      AFTER
      PROVIDING A LEGAL OPINION REASONABLY SATISFACTORY TO RED MILE ENTERTAINMENT,
      INC.

     

    THIS
      WARRANT AND THE SECURITIES TO BE ISSUED UPON THE EXERCISE THEREOF HAVE NOT
      BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 AS AMENDED (THE “1933
      SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND THE WARRANTS MAY NOT BE
      EXERCISED IN THE UNITED STATES OR BY OR FOR THE ACCOUNT OR BENEFIT OF A PERSON
      IN THE UNITED STATES OR A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE
      1933
      SECURITIES ACT) WITHOUT REGISTRATION OF SUCH SECURITIES UNDER ALL APPLICABLE
      UNITED STATES FEDERAL AND STATE SECURITIES LAWS OR COMPLIANCE WITH AN APPLICABLE
      EXEMPTION THEREFROM AND THE CORPORATION SHALL HAVE RECEIVED AN OPINION OF
      COUNSEL TO SUCH EFFECT SATISFACTORY TO IT.

     

    THIS
      AGREEMENT made as of the 18th day of
      July,
      2007

     

    BETWEEN:

     

    RED
      MILE ENTERTAINMENT, INC., a corporation incorporated under the laws of
      the State of Delaware and having an office in the City of Sausalito, California
      (the “Corporation”)

     

    -
      and -

     

    l,
      (the “Warrantholder”)

     

    WHEREAS
      the Corporation has agreed pursuant to an Agency Agreement made
      effective the 22nd day of
      June, 2007
      between the Corporation and the Agent (the “Agency Agreement”)
      to grant the Agent and its nominees, warrants to purchase that number of Common
      Shares equal to the aggregate of 8% of the Common Shares sold by the Agent
      pursuant to the Offering and 8% of the Common Shares issuable pursuant to
      Convertible Promissory Notes issued by the Corporation to persons with accounts
      established with the Agent.

     

    NOW
      THEREFORE in consideration of the premises, mutual covenants and
      agreements herein contained, this agreement witnesses and it is understood
      and
      agreed by and between the parties hereto as follows:

     

    1.           Interpretation

     

    All
      capitalized terms herein and not defined herein shall have the meaning given
      to
      such terms in the Agency Agreement.

     

    2.           Grant
      of Agent's Warrants

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Subject
      to the provisions hereinafter contained, the Corporation hereby grants to the
      Warrantholder an aggregate of l share purchase
      warrants
      (the “Agent’s Warrants”), each Agent's Warrant entitling the Warrantholder to
      purchase ● Common Shares (the “Optioned Securities”).

     

    3.           Exercise
      of Agent's Warrants

     

    The
      Agent
      may exercise the Agent’s Warrants at any time on or before 4:30 p.m. Calgary
      time (the “Expiry Time”) on or before July 18, 2009 at an exercise price of US
      $3.00, subject to adjustment as set forth herein.

     

    4.           Manner
      of Exercise

     

    The
      Warrantholder may exercise the Agent's Warrants represented by this certificate
      in whole or in part, at any time and from time to time, on or prior to the
      Expiry Time, by notice in writing given by the Warrantholder to the Corporation
      at its address for notice set out in the Agency Agreement, specifying the number
      of Agent's Warrants to be exercised and accompanied by payment in cash or
      certified cheque for the purchase price of all of the Common Shares issuable
      by
      the Corporation, calculated in accordance with Articles 3 and 9
      hereof.

     

    5.           Certificates

     

    Upon
      exercise of the Agent's Warrants, the Corporation shall cause the transfer
      agent
      and registrar of the Corporation to deliver to the Warrantholder, or as the
      Warrantholder may otherwise in writing direct in the notice of exercise of
      the
      Agent's Warrants, within seven (7) days following the receipt by the Corporation
      of payment in accordance with Article 4 hereof, certificates representing in
      the
      aggregate the number of Common Shares for which payment has been received by
      the
      Corporation.

     

    6.           No
      Rights of Shareholder Until Exercise

     

    The
      Warrantholder shall have no rights whatsoever as a shareholder (including any
      rights to receive dividends or other distributions to shareholders or to vote
      at
      a general meeting of shareholders of the Corporation, except as provided in
      Article 10 hereof) other than in respect to Common Shares in respect of which
      the Warrantholder shall have exercised its right to purchase hereunder and
      which
      the Warrantholder shall have actually taken up and paid for.

     

    7.           Non-Transferable

     

    The
      rights conferred upon the Warrantholder hereunder shall be non-transferable
      and
      non-tradable.

     

    8.           No
      Fractional Common Shares

     

    No
      fractional Optioned Securities will be issued on exercise of the Agent's
      Warrants.

     

    9.           Adjustments
      in Event of Change in Common Shares

     

    Definitions. For
      the purposes of this section 9, unless there is something in the subject matter
      or context inconsistent therewith, the words and terms defined below will have
      the respective meanings specified therefor in this subsection:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    (a)           "Adjustment
      Period" means the period commencing on July 18, 2007 and ending at the
      Time of Expiry;

     

    (b)           "Current
      Market Price" of the Common Shares at any date means the price per
      share equal to the weighted average price at which the Shares have traded on
      the
      Over-the-Counter Bulletin Board, on such other stock exchange as may be selected
      by the directors of the Corporation for such purpose, during the period of
      any
      twenty consecutive trading days ending not more than three trading days before
      such date; provided that the weighted average price will be determined by
      dividing the aggregate sale price of all Common Shares sold on the said exchange
      or market, as the case may be, during the said twenty consecutive trading days
      by the total number of Common Shares so sold; and provided further that if
      the
      Common Shares are not then listed on any stock exchange or traded in the
      over-the-counter market, then the Current Market Price will be determined by
      such firm of independent chartered accountants as may be selected by the
      directors of the Corporation;

     

    (c)           "director"
      means a director of the Corporation for the time being and, unless otherwise
      specified herein, a reference to action "by the directors" means action by
      the
      directors of the Corporation as a board or, whenever empowered, action by the
      executive committee of such board; and

     

    (d)           "trading
      day" with respect to a stock exchange or over-the-counter market means
      a day on which such stock exchange or market is open for business.

     

    Adjustments.  The
      number of Common Shares which the holder shall be entitled to receive pursuant
      to the Warrants represented by this certificate (the "Share Rate") and the
      exercise price for such Common Shares (the "Exercise Price") shall be subject
      to
      adjustment from time to time in the events and in the manner provided as
      follows.

     

    (1)           If
      at any time during the Adjustment Period the Corporation:

     

    
      	
              (a)  

            	
              fixes
                a record date for the issue of, or issues, Common Shares to the holders
                of
                all or substantially all of the outstanding Shares by way of a stock
                dividend;

            

    

     

    
      	
              (b)  

            	
              fixes
                a record date for the distribution to, or makes a distribution to,
                the
                holders of all or substantially all of the Common Shares payable
                in Common
                Shares or securities exchangeable for or convertible into
                Shares;

            

    

     

    
      	
              (c)  

            	
              subdivides
                the outstanding Common Shares into a greater number of Common Shares;
                or

            

    

     

    
      	
              (d)  

            	
              consolidates
                the outstanding Common Shares into a lesser number of Common
                Shares;

            

    

     

    (any
      of
      such events in subclauses (i), (ii), (iii) and (iv) above being herein called
      a
      "Common Share Reorganization"),

     

    
      	
              (i)  

            	
              the
                Share Rate shall be adjusted on the earlier of the record date on
                which
                holders of Common Shares are determined for the purposes of the Common
                Share Reorganization and the effective date of the Common Share
                Reorganization to the amount determined by multiplying the Share
                Rate in
                effect immediately prior to such record date or effective date, as
                the
                case may be, by a fraction:

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              A.  

            	
              the
                denominator of which will be the number of Common Shares outstanding
                on
                such record date or effective date before giving effect to such Common
                Share Reorganization; and

            

    

     

    
      	
              B.  

            	
              the
                numerator of which will be the number of Common Shares which will
                be
                outstanding immediately after giving effect to such Common Share
                Reorganization (including in the case of a distribution of securities
                exchangeable for or convertible into Common Shares the number of
                Common
                Shares that would be outstanding had such securities all been exchanged
                for or converted into Common Shares on such date);
                and

            

    

     

    
      	
              (ii)  

            	
              the
                Exercise Price shall be concurrently adjusted by multiplying the
                Exercise
                Price in effect immediately prior to such record date or effective
                date,
                as the case may be, by a fraction which shall be the reciprocal of
                the
                fraction used in the adjustment of the Share Rate in the paragraph
                above;

            

    

     

    To
      the
      extent that any adjustment in the Share Rate or Exercise Price occurs pursuant
      to this clause as a result of the fixing by the Corporation of a record date
      for
      the distribution of securities exchangeable for or convertible into Common
      Shares, such Share Rate and Exercise Price will be readjusted immediately after
      the expiry of any relevant exchange or conversion right to the Share Rate and
      Exercise Price which would then be in effect based upon the number of Common
      Shares actually issued and remaining issuable after such expiry and will be
      further readjusted in such manner upon the expiry of any further such
      right.

     

    
      	
              (2)

            	
              If
                at any time during the Adjustment Period the Corporation fixes a
                record
                date for the issue or distribution to the holders of all or substantially
                all of the outstanding Common Shares of rights, options or warrants
                pursuant to which such holders are entitled, during a period expiring
                not
                more than 45 days after the record date for such issue (such period
                being
                the "Rights Period"), to subscribe for or purchase Common Shares
                or
                securities exchangeable for or convertible into Common Shares at
                a price
                per share (or in the case of securities exchangeable for or convertible
                into Shares at an exchange or conversion price per share at the date
                of
                issue of such securities) of less than 85% of the Current Market
                Price of
                the Common Shares on such record date (any of such events being herein
                called a "Rights Offering"),

            

    

     

    
      	
              (a)  

            	
              the
                Share Rate will be adjusted effective immediately after the record
                date
                for the Rights Offering to the amount determined by multiplying the
                Share
                Rate in effect on such record date by a
                fraction:

            

    

     

    
      	
              (i)  

            	
              the
                denominator of which will be the aggregate
                of

            

    

     

    
      	
              A.  

            	
              the
                number of Common Shares outstanding on the record date for the Rights
                Offering; and

            

    

     

    
      	
              B.  

            	
              the
                quotient determined by dividing

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              a)  

            	
              either
                (a) the product of the number of Common Shares offered during the
                Rights
                Period pursuant to the Rights Offering and the price at which such
                Common
                Shares are offered, or, (b) the product of the exchange or conversion
                price of the securities so offered and the number of Common Shares
                for or
                into which the securities offered pursuant to the Rights Offering
                may be
                exchanged or converted, as the case may be,
                by

            

    

     

    
      	
              b)  

            	
              the
                Current Market Price of the Common Shares as of the record date for
                the
                Rights Offering; and

            

    

     

    
      	
              (ii)  

            	
              the
                numerator of which will be the aggregate of the number of Common
                Shares
                outstanding on such record date and the number of Common Shares offered
                pursuant to the Rights Offering (including in the case of the issue
                or
                distribution of securities exchangeable for or convertible into Common
                Shares the number of Common Shares for or into which such securities
                may
                be exchanged or converted); and

            

    

     

    
      	
              (b)  

            	
              the
                Exercise Price shall be concurrently adjusted by multiplying the
                Exercise
                Price in effect immediately prior to such record date or effective
                date,
                as the case may be, by a fraction which shall be the reciprocal of
                the
                fraction used in the adjustment of the Share Rate in the paragraph
                above;

            

    

     

    If
      by the
      terms of the rights, options, or warrants referred to in this clause, there
      is
      more than one purchase, conversion or exchange price per Common Share, the
      aggregate price of the total number of additional Common Shares offered for
      subscription or purchase, or the aggregate conversion or exchange price of
      the
      convertible or exchangeable securities so offered, will be calculated for
      purposes of the adjustment on the basis of the weighted average purchase,
      conversion or exchange price per Common Share, as the case may
      be.  Any Common Shares owned by or held for the account of the
      Corporation will be deemed not to be outstanding for the purpose of any such
      calculation.  To the extent that any adjustment in the Share Rate and
      Exercise Price occurs pursuant to this clause as a result of the fixing by
      the
      Corporation of a record date for the issue or distribution of rights, options
      or
      warrants referred to in this clause, the Share Rate and Exercise Price will
      be
      readjusted immediately after the expiry of any relevant exchange, conversion
      or
      exercise right to the Share Rate which would then be in effect based upon the
      number of Common Shares actually issued and remaining issuable after such expiry
      and will be further readjusted in such manner upon the expiry of any further
      such right.

     

    
      	
              (3)

            	
              If
                at any time during the Adjustment Period the Corporation fixes a
                record
                date for the issue or distribution to the holders of all or substantially
                all of the Common Shares of:

            

    

     

    
      	
              (a)  

            	
              shares
                of the Corporation of any class other than Common
                Shares;

            

    

     

    
      	
              (b)  

            	
              rights,
                options or warrants to acquire Common Shares or securities exchangeable
                for or convertible into Common Shares (other than rights, options
                or
                warrants pursuant to which holders of Common Shares are entitled,
                during a
                period expiring not more than 45 days after the record date for such
                issue, to subscribe for or purchase Common Shares at a price per
                share (or
                in the case of securities exchangeable for or convertible into Common
                Shares at an exchange or conversion price per share at the date of
                issue
                of such securities) of at least 85% of the Current Market Price of
                the
                Common Shares on such record date);

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (c)  

            	
              evidences
                of indebtedness of the Corporation;
                or

            

    

     

    
      	
              (d)  

            	
              any
                property or assets of the
                Corporation;

            

    

     

    and
      if
      such issue or distribution does not constitute a Common Share Reorganization
      or
      a Rights Offering (any of such non-excluded events being herein called a
      "Special Distribution"):

     

    
      	
              (i)  

            	
              the
                Share Rate will be adjusted effective immediately after the record
                date
                for the Special Distribution to the amount determined by multiplying
                the
                Share Rate in effect on the record date for the Special Distribution
                by a
                fraction:

            

    

     

    
      	
              A.  

            	
              the
                numerator of which will be the aggregate
                of

            

    

     

    
      	
              a)  

            	
              the
                product of the number of Common Shares outstanding on such record
                date and
                the Current Market Price of the Common Shares on such record date,
                and

            

    

     

    
      	
              b)  

            	
              the
                aggregate fair value, as determined by the directors of the Corporation,
                to the holders of the Common Shares of the shares, rights, options,
                warrants, evidences of indebtedness or property or assets to be issued
                or
                distributed in the Special Distribution,
                and

            

    

     

    
      	
              B.  

            	
              the
                denominator of which will be the product obtained by multiplying
                the
                number of Common Shares outstanding on such record date by the Current
                Market Price of the Common Shares on such record date;
                and

            

    

     

    
      	
              (ii)  

            	
              the
                Exercise Price shall be concurrently adjusted by multiplying the
                Exercise
                Price in effect immediately prior to such record date or effective
                date,
                as the case may be, by a fraction which shall be the reciprocal of
                the
                fraction used in the adjustment of the Share Rate in the paragraph
                above;

            

    

     

    Any
      Common Shares owned by or held for the account of the Corporation will be deemed
      not to be outstanding for the purpose of such calculation.  To the
      extent that any adjustment in the Share Rate occurs pursuant to this clause
      as a
      result of the fixing by the Corporation of a record date for the issue or
      distribution of rights, options or warrants to acquire Shares or securities
      exchangeable for or convertible into Shares referred to in this clause, the
      Share Rate will be readjusted immediately after the expiry of any relevant
      exercise, exchange or conversion right to the amount which would then be in
      effect if the fair market value had been determined on the basis of the number
      of Shares issued and remaining issuable immediately after such expiry, and
      will
      be further readjusted in such manner upon the expiry of any further such
      right.

     

    (4)           If
      at any time during the Adjustment Period there occurs:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (a)  

            	
              a
                reclassification or redesignation of the Common Shares, any change
                of the
                Common Shares into other shares or securities or any other capital
                reorganization involving the Common Shares other than a Common Share
                Reorganization;

            

    

     

    
      	
              (i)  

            	
              a
                consolidation, amalgamation, arrangement or merger of the Corporation
                with
                or into any other body corporate which results in a reclassification
                or
                redesignation of the Common Shares or a change or exchange of the
                Common
                Shares into other shares or securities;
                or

            

    

     

    
      	
              (ii)  

            	
              the
                transfer of the undertaking or assets of the Corporation as an entirety
                or
                substantially as an entirety to another corporation or
                entity;

            

    

     

    (any
      of
      such events being herein called a "Capital Reorganization"), after the effective
      date of the Capital Reorganization the Warrantholder will be entitled to
      receive, and shall accept, upon exercise of the Agent's Warrants, in lieu of
      the
      number of Common Shares which the Warrantholder shall be entitled to receive
      pursuant to the Agent's Warrants, the kind and aggregate number of shares and
      other securities or property resulting from the Capital Reorganization which
      the
      Warrantholder would have been entitled to receive as a result of the Capital
      Reorganization if, on the effective date thereof, the Warrantholder had been
      the
      registered holder of the number of Common Shares which the Warrantholder would
      have been entitled to receive pursuant to the Agent's Warrants represented
      by
      this certificate if exercised immediately prior to such Capital Reorganization.
      If necessary, as a result of any Capital Reorganization, appropriate adjustments
      will be made in the application of the provisions of this certificate with
      respect to the rights and interest thereafter of the Holder to the end that
      the
      provisions of this certificate will thereafter correspondingly be made
      applicable as nearly as may reasonably be possible in relation to any shares
      or
      other securities or property thereafter deliverable upon the exercise of the
      Agent's Warrants.

     

    Rules.  The
      following rules and procedures will be applicable to adjustments made pursuant
      to this Article 9.

     

    
      	
              (a)  

            	
              Subject
                to the following provisions hereof, any adjustment made pursuant
                to
                Article 9 above will be made successively whenever an event referred
                to
                therein occurs.

            

    

     

    
      	
              (b)  

            	
              No
                adjustment will be made in the Share Rate unless it would result
                in a
                change of at least three percent in the prevailing Share Rate; provided,
                however, that any adjustments which except for the provisions of
                this
                Article 9 would otherwise have been required to be made will be carried
                forward and taken into account in any subsequent
                adjustment.

            

    

     

    
      	
              (c)  

            	
              If
                at any time during the Adjustment Period the Corporation will take
                any
                action affecting the Common Shares, other than an action or an event
                described above, which in the opinion of the directors would have
                a
                material adverse effect upon the rights of the Warrantholder under
                this
                certificate, the Exercise Price and/or the number of Common Shares
                purchasable hereunder will be adjusted in such manner and at such
                time as
                the directors may determine to be equitable in the
                circumstances.  Failure of the taking of action by the directors
                so as to provide for an adjustment prior to the effective date of
                any
                action by the Corporation affecting the Common Shares will be deemed
                to be
                conclusive evidence that the directors have determined that it is
                equitable to make no adjustment in the
                circumstances.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (d)  

            	
              No
                adjustment in the number or kind of securities purchasable on the
                exercise
                of the Agent's Warrant's will be made in respect of any event described
                herein if the Warrantolder is entitled to participate in such event
                on the
                same terms mutatis mutandis as if the Warrantholder had exercised
                the
                Agent's Warrants prior to or on the record date or effective date,
                as the
                case may be, of such event.

            

    

     

    
      	
              (e)  

            	
              If
                the Corporation sets a record date to determine holders of Common
                Shares
                for the purpose of entitling such holders to receive any dividend
                or
                distribution or any subscription or purchase rights and will thereafter
                and before the distribution to such holders of any such dividend,
                distribution or subscription or purchase rights legally abandon its
                plan
                to pay or deliver such dividend, distribution or subscription or
                purchase
                rights, no adjustment in the Share Rate will be required by reason
                of the
                setting of such record date.

            

    

     

    
      	
              (f)  

            	
              If
                a dispute arises at any time with respect to any adjustment of the
                Exercise Price, Share Rate or the number of Common Shares purchasable
                hereunder, such dispute will be conclusively determined by the auditors
                of
                the Corporation or if they are unable or unwilling to act by such
                other
                firm of independent chartered accountants as may be selected by the
                directors of the Corporation.

            

    

     

    Taking
      of Actions.  As a condition precedent to the taking of
      any action which would require an adjustment hereunder, the Corporation will
      take any action which may, in the opinion of the Corporation's legal counsel,
      be
      necessary in order that the Corporation may validly and legally issue as fully
      paid and non-assessable shares all of the Common Shares which the Warrantholder
      is entitled to receive.

     

    Notice.  At
      least ten days prior to any record date or effective date, as the case may
      be,
      for any event which requires or might require an adjustment in any of the rights
      of the Warrantholder hereunder, including the Exercise Price and the number
      of
      Common Shares which are purchasable hereunder, the Corporation will deliver
      to
      the Warrantholder, at the Warrantholder's registered address, a certificate
      of
      the Corporation specifying the particulars of such event and, if determinable,
      the required adjustment and the calculation of such adjustment.  In
      case any adjustment for which a notice has been given is not then determinable,
      the Corporation will promptly after such adjustment is determinable deliver
      to
      the Warrantholder, at the Warrantholders registered address, a certificate
      providing the calculation of such adjustment.  The Corporation hereby
      covenants and agrees that the register of transfers and share transfer books
      for
      the Common Shares will be open, and that the Corporation will not take any
      action which might deprive the Warrantholder of the opportunity of exercising
      the rights of subscription contained herein, during such period.

     

    10.           Intentionally
      Deleted

     

    11.           Reservation
      of Securities

     

    The
      Corporation shall at all times, during the term of this Agreement, reserve
      and
      keep available a sufficient number of unissued Common Shares to satisfy the
      requirements hereof.

     

    12.           Entire
      Agreement

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    This
      Agreement supersedes all other agreements, documents, writings and verbal
      understandings among the parties relating to the subject matter hereof and
      represents the entire agreement between the parties relating to the subject
      matter hereof.  This Agreement may be executed by facsimile in any
      number of counterparts all of which when taken together shall be deemed to
      be
      one and the same document and notwithstanding the actual date of execution
      of
      each counterpart, this Agreement shall be deemed to be dated as of the date
      first above written.

     

    13           Enurement

     

    Except
      as
      otherwise set forth herein, this Agreement shall be binding upon and enure
      to
      the benefit of the successors and assigns of the Agent and of the Corporation,
      respectively.

     

    14.           Time

     

    Time
      shall be of the essence of this Agreement.

     

    

     

    IN
      WITNESS WHEREOF the Corporation has caused this warrant certificate to
      be executed by its duly authorized officer.

     

    RED
      MILE ENTERTAINMENT, INC.

     

    

     

    Per:  _______________________________

     

    Ben
      Zadik

     

    Chief
      Financial Officer

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    Schedule
      1(l) – Form of Convertible Promissory Note

     

    THIS
      NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER
      THE SECURITIES LAWS OF APPLICABLE STATES. THESE SECURITIES ARE SUBJECT TO
      RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD
      EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS
      PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

     

    CONVERTIBLE
      PROMISSORY NOTE

     

    OF

     

    RED
      MILE ENTERTAINMENT, INC.

     

      Sausalito,
      CA

    $•
      US                                                                                       Made
      as of June __, 2007

     

    

     

    For
      value
      received, RED MILE ENTERTAINMENT, INC., a Delaware corporation, on behalf of
      itself and its successors and assigns (collectively, the
“Company”), with principal offices at 4000 Bridgeway,
      Suite 101, Sausalito, CA 94965, hereby promises to pay to __________________.
      or
      its registered assigns (“Holder”),  $• US
      (the “Principal Amount”) on the Maturity Date, together
      with simple interest on the unpaid principal and interest at a rate equal to
      ten
      percent (10%) per annum, computed on the basis of the actual number of days
      elapsed and a year of 365 days (the “Rate”) from the
      date of this Note until the Maturity Date.  All accrued interest
      hereunder shall be payable in cash by the Company to the Holder on the Maturity
      Date.

     

    Unless
      earlier accelerated or converted pursuant to the terms hereof, the unpaid
      Principal Amount, shall be due and payable immediately on the Maturity
      Date.  Unless earlier accelerated or converted pursuant to the terms
      hereof, any unpaid interest as of the Maturity Date, as applicable, shall become
      immediately due and payable.  Any amounts owed hereunder shall be sent
      by wire transfer in accordance with instructions included in such notice or
      by
      check sent by mail to the address of the registered holder of this Note in
      lawful money of the United States.

     

    Unless
      agreed to by both parties, Company will issue no more than USD $2,400,000 in
      principal amount.

     

    The
      following is a statement of the rights of Holder and the conditions to which
      this Note is subject, and to which Holder hereof, by the acceptance of this
      Note, agrees:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              1.  

            	
              Definitions.  Unless
                otherwise defined herein, the following definitions shall apply for
                all
                purposes of this Note:

            

    

     

    1.1  “Maturity
      Date” means the earlier to occur of a Sale Event or the one year
      anniversary of the date hereof.

     

    1.2  “Next
      Financing” means the contemplated equity financing in which J.F.
      Mackie & Company Ltd. (“J.F. Mackie”) will act as placement agent for the
      Company in an approximately $10 million equity private placement (or such lesser
      amount as J.F. Mackie and the Company may agree to in writing).

     

    1.3  “Next
      Financing Stock” means the capital stock of the Company issued in
      the Next Financing.

     

    1.4  “Note”
      means this Convertible Promissory Note.

     

    1.5  “Person”
      means an individual, a corporation, an association, a joint venture, a
      partnership, a limited liability company, an estate, a trust, an unincorporated
      organization and any other entity or organization, governmental or
      otherwise.

     

    1.6  “Sale
      Event” means a bona fide, negotiated transaction or integrated
      series of transactions pursuant to which either (i) the Company merges or
      consolidates with any other non-affiliated entity or sells, exchanges or
      otherwise disposes of all or substantially all of its assets to a non-affiliated
      third party or (ii) in which in excess of 50% of the Company’s voting power is
      transferred in a private placement to one Person.

     

    
      	
              2.  

            	
              Conversion.  Concurrent
                with the consummation of a Next Financing prior to the Maturity Date,
                the
                outstanding Principal Amount hereunder shall be automatically converted,
                without any action by the Holder, into the Next Financing Stock at
                price
                equal to the lowest price per share of the Next Financing Stock in
                such
                Next Financing.  Anything in this Note to the contrary
                notwithstanding, in the event of such a conversion this Note shall
                not
                bear any interest and no interest shall be due with respect thereto
                following such conversion. Immediately upon conversion of the Note,
                the
                holder shall also be offered one half of one warrant (“Warrant”), for
                every share received from the conversion of the Note. The Warrant
                shall be
                exercisable at $2.75 per share for a period 2 years from the Closing
                Date
                of such Next
                Financing. 

            

    

     

    
      	
              3.  

            	
              Termination
                of Rights.  All rights with
                respect to the Note shall terminate on Conversion or on the Maturity
                Date,
                whether or not this Note has been surrendered.  Notwithstanding
                the foregoing, Holder agrees to surrender this Note to the Company
                for
                cancellation as soon as is possible following conversion or maturity
                of
                this Note.  The Holder shall not be entitled to receive the Next
                Financing Stock and half Warrants to be issued upon conversion of
                this
                Note until the original of this Note (or an executed affidavit of
                loss,
                damage or mutilation and agreement to indemnify the Company therefrom,
                in
                form reasonably requested by the Company) is surrendered (or delivered
                in
                the case of such affidavit and agreement) to the Company and the
                agreements referenced in this Section 3 have been executed and delivered
                to the Company.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              4.  

            	
              Defaults
                and Remedies.

            

    

     

    4.1           Events
      of Default

     

    .  Upon
      written notice to the Company by the Holder of its desire to deem any of the
      following events an Event of Default, the following events shall be deemed
      “Events of Default” hereunder:

     

    (a)  the
      Company fails to pay any amounts due under the Note when due;

     

    (b)  the
      Company is or becomes insolvent or is involved in any financial difficulty
      as
      evidenced by:

     

    (i)  an
      assignment, composition or similar device for the benefit of creditors,
      or

     

    (ii)  general
      failure to pay debts when due that results in a material action against the
      Company taken by a third party other than the Holder, or

     

    (iii)  an
      attachment or receivership of assets not dissolved within thirty (30) days,
      or

     

    (iv)  the
      appointment of a custodian, trustee or receiver for a substantial portion of
      the
      Company’s property, or

     

    (v)  the
      filing by the Company or any guarantor of a petition under any chapter of the
      United States Bankruptcy Code or the institution of any other proceeding under
      any law relating to bankruptcy, bankruptcy reorganization, insolvency or relief
      of the Company, or

     

    (vi)  the
      filing against the Company or any guarantor of an involuntary petition under
      any
      chapter of the United States Bankruptcy Code or the institution of any other
      proceeding under any law relating to bankruptcy, bankruptcy reorganization,
      insolvency or relief of the Company where such petition or proceeding is not
      dismissed within thirty (30) days from the date on which it is filed or
      instituted; or

     

    (c)  the
      Company materially breaches, which breach remains uncured for at least five
      (5)
      business days after receipt of notice from the Holder relating thereto, any
      of
      the provisions of this Note.

     

    4.2       Rights
      and Remedies on Default

     

    .  Upon
      the occurrence of an Event of Default, the Holder shall have, by way of example
      and not of limitation of the rights and remedies granted to the Holder in law,
      equity or otherwise, the following rights:

     

    (a)  the
      Holder may declare this Note to be immediately due and payable without
      presentment, demand, protest or notice of any kind, all of which are hereby
      expressly waived.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              4.3  

            	
                  Waiver

            

    

     

    .  No
      course of dealing or delay in accelerating this Note or in taking or failing
      to
      take any other action with respect to any Event of Default shall affect the
      Holder’s right to take such action at a later time.  No waiver as to
      any one Event of Default shall affect the Holder’s rights upon any other Event
      of Default.

     

    
      	
              4.4  

            	
                  Remedies
                Cumulative

            

    

     

    .  The
      Holder may exercise any or all of their rights and remedies upon an Event of
      Default concurrently with or independently of and without regard to the
      provisions of any other document which secures any obligation of the
      Company.

     

    
      	
              5.  

            	
              Prepayment.  This
                Note may be prepaid at any time in whole or in part without premium
                or
                penalty.  While the Note is outstanding and prior to conversion
                thereof, the Company shall not pay any dividends or distributions
                and
                shall not repurchase any shares of
                stock.

            

    

     

    
      	
              6.  

            	
              No
                Rights or Liabilities as
                Stockholder.  This Note does not
                by itself entitle the Holder to any voting rights or other rights
                as a
                stockholder of the Company.  No provisions of this Note, and no
                enumeration herein of the rights or privileges of the Holder, shall
                cause
                the Holder to be a stockholder of the Company for any
                purpose.

            

    

     

    
      	
              7.  

            	
              No
                Impairment.  The Company will not
                willfully avoid or seek to avoid the observance or performance of
                any of
                the terms of this Note, but will at all times in good faith assist
                in the
                carrying out of all such terms and in the taking of all such action
                as may
                be necessary or appropriate in order to protect the rights of the
                Holder
                under this Note against wrongful impairment.  Without limiting
                the generality of the foregoing, the Company will take all such action
                as
                may be necessary or appropriate in order that the Company may duly
                and
                validly issue the Next Financing Stock upon a conversion of this
                Note.

            

    

     

    
      	
              8.  

            	
              Waivers. The
                Company and all endorsers of this Note hereby waive notice, presentment,
                protest, notice of dishonor and all other demands in connection with
                the
                delivery, acceptance, performance and enforcement of this
                Note.

            

    

     

    
      	
              9.  

            	
              Attorneys’
                Fees.  In the event any party is
                required to engage the services of any attorneys for the purpose
                of
                enforcing this Note, or any provision thereof, the prevailing party
                shall
                be entitled to recover its reasonable expenses and costs in enforcing
                this
                Note, including reasonable attorneys’
fees.

            

    

     

    
      	
              10.  

            	
              Transfer.  This
                Note and any rights hereunder may not be assigned, conveyed or
                transferred, in whole or in part, by the Company, on the one hand,
                or the
                Holder, on the other hand, without the prior written consent of the
                Holder
                or the Company,
                respectively. 

            

    

     

    
      	
              11.  

            	
              Governing
                Law.  This Note shall be governed
                by and construed under the internal laws of the State of California,
                without reference to principles of conflict of laws or choice of
                laws. 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              12.  

            	
              Headings.  The
                headings and captions used in this Note are used only for convenience
                and
                are not to be considered in construing or interpreting this
                Note. 

            

    

     

    
      	
              13.  

            	
              Notices.  Unless
                otherwise provided, any notice required or permitted under this Note
                shall
                be given in writing and shall be deemed effectively given (a) at
                the time
                of personal delivery, if delivery is in person; (b) one (1) business
                day
                after deposit with an express overnight courier for United States
                deliveries, or two (2) business days after such deposit for deliveries
                outside of the United States, with proof of delivery from the courier
                requested; or (c) three (3) business days after deposit in the United
                States mail by certified mail (return receipt requested) for United
                States
                deliveries when addressed to the party to be notified at the address
                indicated for such party on the signature pages hereto or, in the
                case of
                the Company, to the address on the first page of this Note, or at
                such
                other address as any party or the Company may designate by giving
                ten (10)
                days’ advance written notice to all other
                parties.

            

    

     

    
      	
              14.  

            	
              Amendments
                and Waivers.  This Note may only
                be amended in writing and if the amendment is signed by both the
                Company
                and the Holder.

            

    

     

    
      	
              15.  

            	
              Severability.
                 If one or more provisions of this Note
                are
                held to be unenforceable under applicable law, such provision(s)
                shall be
                excluded from this Note and the balance of the Note shall be interpreted
                as if such provision(s) were so excluded and shall be enforceable
                in
                accordance with its terms.

            

    

     

                  IN
      WITNESS WHEREOF, the Company has caused this Note to be signed in its
      name as of the date first above written.

    

    

    THE  COMPANY:

    

    RED
      MILE
      ENTERTAINMENT, INC.

    

    

    

    By:     ________________________________

               Name:  __________________________

               Title:  ____________________________

    

    

    

    

    AGREED
      AND ACKNOWLEDGED:

    

    THE
      HOLDER:

    

    By:          ________________________________

    Name:  __________________________

    Title:  ____________________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Schedule
      6(l) – Material Contracts

     

    
      	
              1.  

            	
              Agreement
                with MTVN for a license to the intellectual property known as Jackass
                for
                video games on various hardware
                platforms.

            

    

     

    
      	
              2.  

            	
              Agreement
                with Fleshwound Films for a license to the intellectual property
                known as
                Crusty Demons of dirt for video games on various hardware
                platforms.

            

    

     

    
      	
              3.  

            	
              Limited
                use license from Disney interactive for a license to the intellectual
                property known as Disney’s Aladdin for use on a P.C. based video game
                (Disney’s Aladdin Chess
                Adventures).

            

    

     

    
      	
              4.  

            	
              License
                from IR Gurus for a license to the intellectual property known as
                "Heroes
                Of The Pacific" on the Sony PS2, Microsoft Xbox and
                PC’s.

            

    

     

    
      	
              5.  

            	
              License
                from Prodigy Design Ltd. for a license to the intellectual property
                known
                as "GripShift" on the Sony PSP.

            

    

     

    
      	
              6.  

            	
              Development
                Agreement with Prodigy Design Ltd. For the development of the video
                game
                known as "Jackass" on the Sony PS2 and
                PSP.

            

    

     

    
      	
              7.  

            	
              Development
                and Licensing Agreement with IR Gurus for the development of a game
                known
                as "Heroes Of The Pacific" on the Sony
                PSP.

            

    

     

    
      	
              8.  

            	
              Development
                and Licensing Agreement with IR Gurus for the development of a game
                known
                as "Heroes Over Europe" on the Sony PS3 and Microsoft Xbox
                360.

            

    

     

    
      	
              9.  

            	
              Development
                and Licensing Agreement with IR Gurus for the development of a game
                known
                as "Equestriad" on the Sony PS2 and
                P.C’s.

            

    

     

    
      	
              10.  

            	
              Development
                agreement with Climax Action Limited for development of a video game
                known
                as "Crusty Demons" for the Sony PS2 and Microsoft
                Xbox.

            

    

     

    
      	
              11.  

            	
              Licensing
                Agreement with Sony Online Entertainment for the worldwide publishing
                rights to GripShift on the Sony
                PSP.

            

    

     

    
      	
              12.  

            	
              Co-publishing
                Agreement with Codemasters for the European publishing rights to
                Heroes Of
                The Pacific on the Sony PS2, Microsoft Xbox and
                PC’s.

            

    

     

    
      	
              13.  

            	
              Publishing
                Agreement with Ubisoft for the North American publishing rights to
                Heroes
                Of The Pacific on the Sony PS2, Microsoft Xbox and
                PC’s.

            

    

     

    
      	
              14.  

            	
              Publishing
                Agreement with Strategy First Corp. for the worldwide publishing
                rights to
                Disney’s Aladdin Chess Adventures.

            

    

     

    
      	
              15.  

            	
              Co-publishing
                Agreement with Evolved Games for the North American publishing rights
                to
                the Crusty Demons video game.

            

    

     

    
      	
              16.  

            	
              Co-publishing
                Agreement with Koch Media GmbH for the European publishing rights
                to the
                Crusty Demons video game.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              17.  

            	
              Letter
                of Intent with the other owners of IR Gurus for the option to purchase
                their ownership position in IR
                Gurus.

            

    

     

    
      	
              18.  

            	
              License
                Agreement with Marshmallowville Media, L.L.C. for a license to the
                intellectual properties known as Marshmallow Shooter or Johnny Blaster’s
                M-Force for video games on various hardware
                platforms.

            

    

     

    
      	
              19.  

            	
              License
                Agreement with Frank Miller Inc., Ground Zero Productions, Inc. and
                Union
                Entertainment, LLC for a license to the intellectual property known
                as
                "Sin City" or Frank Miller’s Sin City for video games on various hardware
                platforms.

            

    

     

    
      	
              20.  

            	
              Distribution
                Agreement with Navarre Corporation for distribution of products in
                North
                America.

            

    

     

    
      	
              21.  

            	
              Marketing
                Support Agreement with MTVN whereby MTVN will provide marketing support
                services in exchange for a royalty on each game sold in North
                America.

            

    

     

    
      	
              22.  

            	
              Development
                Agreement with MTVN for Jackass on the Nintendo DS
                Platform.

            

    

     

    
      	
              23.  

            	
              Investment
                Banking Services Agreement with Merriman Curhan Ford and Company
                for
                services in the United States.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      6(aa) – Material Liabilities

     

    Liabilities
      greater than $10,000 as of July 18, 2007

    

    
      	
              1.  

            	
              Commitments
                to pay IR Gurus for two months at approximately $50,000/month for
                Sin City
                preproduction services.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    Schedule
      6(qq) – Summary of Communications regarding Intellectual Property
      claims

     

    
      	
              1.  

            	
              On
                September 9, 2005, Vivendi Universal Games, Inc. (VUG) notified the
                Company that they believed the trademark "Heroes of the Pacific"
                infringed
                on a trademark of theirs "Aces of the
                Pacific".

            

    

     

    After
      thorough review of our intellectual property counsel, they informed us the
      VUG
      game was published in 1992 and appeared to be last used in 1997 or 1998 by
      VUG
      was long out of commercial use. Our council responded that their mark appeared
      to be abandoned.  There were two subsequent letters from VUG (the last
      in December 2005) where they disagreed with our assessment and tried to start
      a
      dialog toward our ceasing to use the mark or settlement (that is, pay them
      some
      sort of royalty).  We last responded on December 13, 2005 telling them
      that we found their claim baseless and were not interested in negotiating with
      them. They never responded to this last letter and we believe they have dropped
      the issue. We believe that there is no significant liability to VUG regarding
      this issue.

    

    
      	
              2.  

            	
              In
                February 2006, we were contacted by phone and later by email by Equity
                management, Inc. on behalf of Lockheed Martin Corporation.  In
                the 1940’s Lockheed manufactured an aircraft known as the P-38J
                Lightning.  They still have a trademark for model planes. Our
                counsel did not think this mark was strong or would carryover to
                video
                games.  We told Equity verbally that we did not believe the
                claim was valid and have not heard from them since. We believe that
                there
                is no significant liability to Lockheed Martin regarding this
                issue.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Schedule
      6(ss) – Restrictions on Intellectual Property Rights

     

    The
      software code for the following games (either completed or under development)
      is
      subject to a license which is fully transferable to purchasers of the
      business.  It is also transferable to others, but only with prior
      approval of developer, such approval not to be unreasonably
      withheld.

     

    
      	
              ·  

            	
              Development
                agreement with Climax Action Limited for development of a video game
                known
                as "Crusty Demons" for the Sony PS2 and Microsoft
                Xbox.

            

    

    
      	
              ·  

            	
              Development
                Agreement with Prodigy Design Ltd. For the development of the video
                game
                known as "Jackass" on the Sony PS2 and
                PSP.

            

    

    
      	
              ·  

            	
              There
                are restrictions on transfer of the code for "Jackass" in relation
                to the
                DS sku version, whereby the Corporation may only transfer the portion
                of
                the code for which it has paid the developer and not the unpaid work
                in
                progress.

            

    

    

    The
      software code and license for the intellectual property included within the
      game
      for the following games (either completed or under development) is subject
      to a
      license which is fully transferable to purchasers of the business.  It
      is also transferable to others, but only with prior approval of developer,
      such
      approval not to be unreasonably withheld.

     

    
      	
              ·  

            	
              Development
                and Licensing Agreement with IR Gurus for the development of a game
                known
                as "Heroes Of The Pacific" on the Sony PS2, Microsoft Xbox and
                PC’s.

            

    

    
      	
              ·  

            	
              Development
                and Licensing Agreement with IR Gurus for the development of a game
                known
                as "Heroes Of The Pacific" on the Sony
                PSP.

            

    

    
      	
              ·  

            	
              Development
                and Licensing Agreement with IR Gurus for the development of a game
                known
                as "Heroes Over Europe" on the Sony PS3 and Microsoft Xbox
                360.

            

    

    
      	
              ·  

            	
              Development
                and Licensing Agreement with Prodigy Design Ltd. for the development
                of a
                game known as "GripShift" on the Sony
                PSP.

            

    

    
      	
              ·  

            	
              Development
                and Licensing Agreement with IR Gurus for the development of a game
                known
                as "Equestrian Challenge" on the Sony PS2 and
                P.C’s.

            

    

    

    The
      Publishing and Development Agreement with Buena Vista Games is only transferable
      to a controlled or controlling entity. The Company may request a transfer to
      a
      different entity, but approval is at Disney’s sole discretion and they may
      charge a transfer fee of up to $25,000.

     

    The
      license for Crusty Demons is only transferable as part of the direct or indirect
      merger, consolidation, corporate restructuring or sale or transfer of all or
      substantially all of our assets or a controlling interest of 51% or more of
      the
      voting securities of the company.

     

    The
      MTVN
      Merchandising and License Agreement is transferable as part of the direct or
      indirect merger, consolidation, corporate restructuring or sale or transfer
      of
      all or substantially all of our assets or a controlling interest of 51% or
      more
      of the voting securities of the company, so long as this entity is not a
      "Restricted Entity".  A Restricted Entity means a competitor to MTVN
      or an entity that’s capitalization and funding sources are less than those of
      Red Mile or the combined resources, post-merger will be less than Red Mile’s at
      the time of merger.  Other assignments, however, including a pledge,
      require MTVN’s consent.

     

    The
      Sin
      City License Agreement is transferable upon a change of control, but only upon
      approval from Frank Miller Inc.

     

    Licensing
      agreement with Marshmallowville Media, L.L.C. for a license to the intellectual
      properties known as Marshmallow Shooter or Johnny Blaster’s M-Force has no
      limitations.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      following agreements are exclusive licenses, which allows our licensee to sell
      a
      game in a specific territory and which therefore precludes the Company from
      directly selling or licensing that game in that territory.

     

    
      	
              ·  

            	
              Licensing
                Agreement with Sony Online Entertainment for the worldwide publishing
                rights to GripShift on the Sony
                PSP.

            

    

    
      	
              ·  

            	
              Co-publishing
                Agreement with Codemasters for the European publishing rights to
                Heroes Of
                The Pacific on the Sony PS2, Microsoft Xbox and
                PC’s.

            

    

    
      	
              ·  

            	
              Publishing
                Agreement with Ubisoft for the North American publishing rights to
                Heroes
                Of The Pacific on the Sony PS2, Microsoft Xbox and
                PC’s.

            

    

    
      	
              ·  

            	
              Publishing
                Agreement with Strategy First Corp. for the worldwide publishing
                rights to
                Disney’s Aladdin Chess Adventures.

            

    

    
      	
              ·  

            	
              Co-publishing
                Agreement with Evolved Games for the North American publishing rights
                to
                the Crusty Demons video game.

            

    

    
      	
              ·  

            	
              Co-publishing
                Agreement with Koch Media GmbH for the European publishing rights
                to
                Crusty Demons.

            

    

    

    The
      following agreements are exclusive licenses, which allows our licensee to sell
      a
      game in a specific territory and which therefore precludes the Company from
      directly selling or licensing that game in that territory.

     

    
      	
              ·  

            	
              Licensing
                Agreement with Sony Online Entertainment for the worldwide publishing
                rights to GripShift on the Sony
                PSP.

            

    

    
      	
              ·  

            	
              Co-publishing
                Agreement with Codemasters for the European publishing rights to
                Heroes Of
                The Pacific on the Sony PS2, Microsoft Xbox and
                PC’s.

            

    

    
      	
              ·  

            	
              Publishing
                Agreement with Ubisoft for the North American publishing rights to
                Heroes
                Of The Pacific on the Sony PS2, Microsoft Xbox and
                PC’s.

            

    

    
      	
              ·  

            	
              Publishing
                Agreement with Strategy First Corp. for the worldwide publishing
                rights to
                Disney’s Aladdin Chess Adventures.

            

    

    
      	
              ·  

            	
              Co-publishing
                Agreement with Evolved Games for the North American publishing rights
                to
                the Crusty Demons video game.

            

    

    
      	
              ·  

            	
              Co-publishing
                Agreement with Koch Media GmbH for the European publishing rights
                to
                Crusty Demons.

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