Document:

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                                IMAX CORPORATION

                                  EXHIBIT 10.21

================================================================================
                            THIRD AMENDING AGREEMENT

This Amendment to Employment Agreement dated as of February 14, 2006 (the
"Amending Agreement") is made between:

IMAX CORPORATION, a corporation incorporated under the laws of Canada
(hereinafter referred to as the "Company"),

and

ROBERT D. LISTER (the "Executive")

WHEREAS, the Company wishes to enter into this Amending Agreement to amend and
extend the Employment Agreement dated as of May 17, 1999 between Imax Ltd, the
Company and Executive, as modified and amended by those Amending Agreements
dated as of April 4, 2001 and January 1, 2004, (together, the "Agreement"),
whereunder the Executive provides services to the Company, and the Executive
wishes to so continue such engagement, as hereinafter set forth;

AND WHEREAS, on January 1, 2001 Imax Ltd. assigned all of its rights and
obligations pursuant to the Agreement to the Company, and the Executive has
consented to such assignment;

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

1. Section 1.3 of the Agreement shall be deleted and replaced with the
following:

"Section 1.3 Term of Employment. The Employee's employment under this Agreement
commenced on the 17th day of May, 1999 (the "Commencement Date") and shall
terminate on the earlier of (i) January 1, 2008, or (ii) the termination of the
Employee's employment pursuant to this Agreement. The period commencing as of
the Commencement Date and ending on January 1, 2008 or such later date to which
the term of the Employee's employment under this Agreement shall have been
extended is hereinafter referred to as the "Employment Term."

2. Section 2.1 of the Agreement shall be deleted and replaced with the
following:

"Section 2.1 Base Salary. Effective January 1, 2006, the Executive's Base Salary
shall be US$ 365,700. Effective January 1, 2007, the Executive's Base Salary
shall be US$ 402,270."

                                     Page 4
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3. Section 6 of the Agreement shall be deleted and replaced with the following:

Subject to Section 7.1 and 7.2, the Executive shall be required to mitigate the
amount of any payment provided for in Section 4.1.1 (other than the Termination
Payment) by seeking other employment or remunerative activity reasonably
comparable to his duties hereunder, and, upon Executive's obtaining such other
employment or remunerative activity any payment to be made by the Company under
Section 4.1.1 (other than the Termination Payment) will be reduced by a total of
one-quarter (1/4) of the amount of such payment prior to the Executive's
obtaining new employment or remunerative activity. Notwithstanding anything
herein to the contrary, in the event that there is either (a) a change in
control of the Company i.e. any person, or group of persons acting in concert,
other than Bradley J. Wechsler and Richard L. Gelfond, acquiring greater than
fifty percent (50%) of the outstanding common shares of the Company, whether by
direct or indirect acquisition or as a result of a merger or reorganization; or
(b) a significant change in the Executive's reporting relationship (either, a
"Non-Mitigation Event"), then, if at any time subsequent to the occurrence of
such Non-Mitigation Event the Executive is terminated from the Company Without
Cause, (i) Executive shall have no obligation to mitigate the amounts provided
in Section 4.1.1, and (ii) the Severance Period (as defined in Section 4.1.1)
shall be a minimum of eighteen (18) months in duration. For clarity, a
termination of Executive's employment Without Cause shall include, but not be
limited to, the events cited in Section 2.3(b)(iii) and (iv), and a termination
by virtue of the expiry of the Agreement.

4. The parties confirm that the August 21, 2000 letter agreement with regard to
Executive's incentive payments and benefits remains in full force and effect and
Executive shall be entitled to US$ 107,500 thereunder from the Company upon a
termination Without Cause within two (2) years of the completion of a
Transaction (as defined therein).

5. Effective as soon as is practicable after the date hereof, the Executive
shall be granted non-qualified options (the "Options") to purchase 50,000 shares
of common stock of the Company (the "Common Shares"), at an exercise price per
Common Share equal to the Fair Market Value, as defined in the Company's Stock
Option Plan. The Options shall vest as to 10% on the first anniversary of the
grant date, 15% on the second anniversary of the grant date, 20% on the third
anniversary of the grant date, 25% on the fourth anniversary of the grant date
and 30% on the fifth anniversary of the grant date, and shall otherwise be
treated in accordance with the terms of Section 2.3 of the Agreement.

                                     Page 5
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Except as amended herein, all other terms of the Agreement shall remain in full
force, unamended.

IN WITNESS WHEREOF, the Company and the Executive have duly executed and
delivered this Amending Agreement on this 14(th) day of February, 2006.

                                           IMAX  CORPORATION

                                           By:       "Richard L. Gelfond"
                                               ---------------------------------
                                               Name:  Richard L. Gelfond
                                               Title: Co-Chief Executive Officer

                                           By:      "Bradley J. Wechsler"
                                               ---------------------------------
                                               Name:  Bradley J. Wechsler
                                               Title: Co-Chief Executive Officer

SIGNED, SEALED AND DELIVERED               EXECUTIVE:
in the presence of:

    "Stephen G. Abraham"                     "Robert D. Lister"
----------------------------               -------------------------------------
Witness  Stephen G. Abraham                Robert D. Lister

                                     Page 6EXHIBIT 10.7  

UNIT PURCHASE AGREEMENT 

FOR 

CHILCO RIVER HOLDINGS,
INC. 

Offering of up to
US$2,000,000 

1,333,334 Units 

Each Unit consists of one share of common stock 

and one non-transferable share purchase warrant  

Price per Share US$1.50 

Offering Commencement
Date of November 23, 2005 

     

ALL INFORMATION HEREIN
WILL BE TREATED CONFIDENTIALLY 

     

THE SECURITIES OFFERED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR UNDER ANY STATE SECURITIES LAW OR UNDER THE SECURITIES LAWS OF ANY OTHER
JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES OFFERED
HEREBY HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE
COMMISSION PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE. THESE ARE SPECULATIVE SECURITIES. 

All Residents in Alberta and
British Columbia must complete the Representation Letter (and Schedule One thereto)
attached as Appendix I. 

Subscriber Initials _____  

UNIT PURCHASE AGREEMENT 

CHILCO RIVER HOLDINGS,
INC. 

THIS UNIT PURCHASE AGREEMENT
(“Agreement”) is made effective as of the ______ day of December, 2005 (the
“Effective Date”) by and among: 

	  	
Chilco
River Holdings, Inc., a Nevada corporation, of 355 Lemon Ave., Suite C, Walnut, CA  91789
(the "Company"); 

	  	
The
Lead Investor designated on Schedule A attached hereto (the “Lead
Investor”); and  

	  	
Each
of the persons or entities named as Subscribers on Schedule A attached hereto
(each, a “Subscriber”).  

The Company, the Lead Investor and
the Subscribers are collectively referred to herein as the
“Parties.” The Lead Investor and the Subscribers are
referred to collectively herein as the “Investors” and
individually as an “Investor.” 

WHEREAS: 

	  	A.  	  	The
Company is offering units (the “Units”) at
               $1.50 per Unit, and each Unit consists of one share of the Company’s
common                stock with a par value of $0.001 (a “Common
               Share”) and one non-transferable share purchase
warrant (a “Warrant”). Each Warrant will entitle the
               Investor therein to subscribe for one additional Common Share at a price
of                $2.00 per share at any time up to 5:00 p.m. local time in California on
the                first anniversary of the date of issuance. The Units, the Common
Shares, and the                Warrants are referred to in this Agreement as the
               “Securities.” All dollar amounts set forth
in                this Agreement are in United States dollars;  

	  	B.  	  	The
Company is offering the Securities only to qualified investors who (i)
               satisfy the criteria for “accredited investors” as
defined under Rule 501(a) of the                Securities Act of 1933, as amended (the
“Securities                Act”), (ii) are not “U.S.
Persons” as such term is                defined by Rule 902 of Regulation S under
the Securities Act and (iii) are                outside the United States at the time of
execution and delivery of this                Agreement. The Company is offering the
Securities pursuant to (i) an exemption                from registration promulgated
under Rule 506 of Regulation D of the Securities                Act and/or (ii) an
exclusion from the registration requirements available under                Rule 903 of
Regulation S of the Securities Act; and  

	  	C.  	  	Each
Investor has agreed to purchase the number of Units set forth beside the
               Investor’s name on Schedule A attached hereto, subject to the
terms                and conditions set forth in this Agreement. Each of the Parties
acknowledges                that the Subscribers would not otherwise invest in the
Company, absent the                investment of the Lead Investor. As a condition to
facilitating such investment                by the Lead Investor, the Company has agreed
to certain covenants for the                benefit of the Lead Investor, individually,
and certain additional covenants for                the benefit of the Investors,
collectively;  

– 1 – 

NOW THEREFORE THIS AGREEMENT
WITNESSES that, in consideration of the mutual covenants and agreements herein
contained, the receipt of which is acknowledged, the Parties covenant and agree with each
other as follows: 

	1.  	   	SUBSCRIPTION  

	1.1  	  	Subscription.
  Subject to the terms and subject to the conditions of this Agreement, each of the
Investors, severally and not jointly, agrees to purchase the number of Units set forth
beside the Investor’s name on Schedule A attached hereto at US$1.50 per Unit
on or before December 16, 2005 or such other time as the Company and the Lead Investor
may agree upon (the “Closing Date”).  

	1.2  	  	Security
Offered.   Each Unit shall consist of one Common Share and one non-transferable
Warrant. Each Warrant will entitle the Investor therein to subscribe for one additional
Common Share at a price of $2.00 per share at any time up to 5:00 p.m. local time in
California on the first anniversary of the date of issuance. The Warrants will be
evidenced by a Warrant Certificate, in the form attached as Schedule B, to be
issued to each Investor on the Closing Date.  

	1.3  	  	Purchase
Price.   The “Purchase Price” of each Unit shall be US$1.50 per Unit. On the
Closing Date, each Investor, severally and not jointly, shall pay to the Company the
Purchase Price of Units subscribed, by check payable to “Chilco River Holdings, Inc.”,
by wire transfer to Chilco River Holdings, Inc. (pursuant to the wire transfer
instructions provided in advance of such Closing Date) or by other means agreed to in
writing by the Parties, which shall be applied to payment for the Units subscribed for
herein. The Investors shall use their best efforts to pay the Purchase Price by wire
transfer.  

	1.4  	  	Delivery
of Certificates.   Promptly upon receipt of the Purchase Price at the Closing, the
Company shall cause to be delivered to each Investor certificates representing the number
of Common Shares and Warrants underlying the Units purchased, registered in the name of
the Investor, no later than three (3) business days following the Closing Date. Each
Investor agrees to execute and deliver such documents as may be reasonably requested by
the Company in connection with the certificate delivery.  

	1.5  	  	Use
of Proceeds.   As an inducement to invest in the Company, the Company represents,
warrants and covenants to each Investor that the proceeds will be used for the following
purposes:  

	  	(a)  	  	One
million dollars ($1,000,000) shall be used for the renovation of the casino
               floor at the Bruce Hotel & Casino at Jirón Francisco Bolognesi
#                171-191 in the Miraflores District, Province and Department of Lima; and  

	  	(b)  	  	One
million dollars ($1,000,000) shall be used to engage one or more
               professional media consultants to provide strategic corporate, marketing
and                publication services to the Company related to the Company and its
business (the                “Marketing Consultant”).  

	1.6  	  	By
signing this Agreement, each Investor acknowledges that the Company is relying on the
accuracy and completeness of the representations contained in this Agreement in complying
with its obligations under applicable securities laws.  

	1.7  	  	All
Residents in Alberta and British Columbia must complete the Representation Letter (and
Schedule One thereto) attached as Appendix I. 

 – 2 – 

	2.  	   	CLOSING,
CLOSING CONDITIONS AND DELIVERIES  

	2.1  	  	The
Closing of each of the transactions contemplated by Section 1.1 shall take place on the
Closing Date at the offices of Dorsey & Whitney, LLP, Republic Plaza Building,
Suite 4700, 370 Seventeenth Street, Denver, Colorado 80202, or at such other place or
different date as may be mutually acceptable to the Lead Investor and the Company.  

	2.2  	  	The
Closing of the transactions contemplated by Section 1.1 is subject to the fulfillment of
the following conditions (the “Initial Closing Conditions”)
which are for the benefit of each Investor:  

	  	(a)  	  	all
relevant documentation and approvals as may be required, by applicable
               securities statutes, regulations, policy statements and
interpretation                notes, by applicable securities regulatory authorities and
by applicable rules                and guidelines of any stock exchange on which the
Common Shares are listed,                shall have been obtained and, where
applicable, executed by or on behalf of                each Investor;  

	  	(b)  	  	the
Company’s board of directors shall have authorized and approved the
               execution and delivery of this Agreement, the issuance and delivery of the
               Units, the allotment and issuance of the Common Shares, the allotment and
               issuance of the Warrants, and the allotment and issuance of the Common
Shares                acquirable upon exercise of the Warrants (the “Warrant
               Shares”);  

	  	(c)  	  	the
representations and warranties of the Company set forth in this Agreement
               shall be true and correct as of the Closing Date, and the Company shall
have                delivered a certificate of a senior officer of the Company (acting
without                personal liability) to that effect to the Investors;  

	  	(d)  	  	no
action or proceeding at law or in equity shall be pending or threatened by
               any person, including any government, governmental authority, regulatory
body or                agency to enjoin, restrict or prohibit the purchase and issuance
of the                Securities or the transactions contemplated hereby;  

	  	(e)  	  	the
Lead Investor, for its sole benefit, shall have completed its business,
               financial, legal and technical due diligence inquiries;  

	  	(f)  	  	the
Company shall have entered into an agreement for marketing and business
               development services with the Marketing Consultant; and  

	  	(g)  	  	the
Company shall have agreed to hire or engage a strategic management and
               corporate development professional or consultant to assist the Company in
               developing a comprehensive corporate and financial strategy to assist with
the                development of its business and management team.  

	3.  	   	INVESTOR
REPRESENTATIONS, WARRANTIES, AND COVENANTS  

	3.1  	  	Each
Investor, severally and not jointly, makes the following representations and warranties
to the Company: 

	  	(a)  	  	The
Investor is purchasing the Units, consisting of the Common Shares and the
               Warrants, for its own account or for the account of one or more persons,
for                investment purposes  

– 3 – 

	  	
only
and not with a view to resale or distribution and, in particular, it has no intention to
distribute either directly or indirectly any of the Common Shares issued in connection
with the purchase of the Units, or upon exercise of the Warrants; provided, however, that
the Investor may sell or otherwise dispose of any of the Common Shares pursuant to
registration thereof under the Securities Act and any applicable state securities laws or
under an exemption from such registration requirements.  

	  	(b)  	  	The
Investor recognizes that investment in the Securities involves substantial
               risks and has taken full cognizance of and understands all of the risks
related                to the purchase of the Securities, including without limitation
those set forth                under the caption “Risk Factors” in the Company’s
reports on Form                10-KSB, 10-QSB and 8-K (collectively, the “SEC
Reports”), filed with the United States
Securities and                Exchange Commission (the “SEC”)
pursuant to the                Securities Exchange Act of 1934, as amended (the “Exchange
               Act”).  

	  	(c)  	  	In
making its decision to invest in the Units, the Investor has carefully
               reviewed and is familiar with the Company’s SEC Reports, and the
Investor                has relied on the information contained therein and the documents
and materials                delivered therewith, and on the Investor’s own
independent investigations                and/or those of the Investor’s own
professional tax and other advisors. The                Investor and the Investor’s
advisors (including the Investor’s                representative, if any) have been
given the opportunity to obtain information                and to examine all documents
relating to the Company, and to ask questions of                and to receive answers
from the officers of the Company concerning the Company,                the officers and
directors, and the terms and conditions of this investment, and                to obtain
any additional information, to the extent the Company possesses that
               information or could acquire it without unreasonable effort or expense, to
               verify the accuracy of any information previously furnished. All questions
have                been answered to the full satisfaction of the Investor, and all
information and                documents, records and books pertaining to this investment
that the Investor has                requested have been made available to the Investor.  

	  	(d)  	  	The
Investor believes that it, either alone or with the assistance of its
               advisor(s) (including the Investor’s representative, if any), has
such                knowledge and experience in financial and business matters that the
Investor is                capable of reading and interpreting disclosure materials, such
as the SEC                Reports and the Company’s financial statements, and of
evaluating the                merits and risks of the prospective investment in the
Securities. The Investor                has obtained sufficient information to evaluate
the merits and risks of an                investment in the Company and has the net worth
to undertake those risks.  

	  	(e)  	  	The
Investor has obtained, to the extent the Investor deems necessary, the
               Investor’s own personal, professional advice with respect to the
risks                inherent in the investment in the Company and the suitability of the
investment                in the Securities in light of the Investor’s financial
condition and                investment needs.  

	  	(f)  	  	The
Investor believes that investment in the Securities is suitable for the
               Investor based on the Investor’s investment objectives and financial
needs,                and the Investor has adequate means for providing for the Investor’s
               current financial needs and personal contingencies and has no need for
liquidity                of investment with respect to the Securities.  

	  	(g)  	  	The
Investor is able to (i) hold the Common Shares and, if the Warrants are
               exercised, the Common Shares underlying the Warrants, for an indefinite
period                of time, (ii) bear the economic risk of the Investor’s
investment, and                (iii) withstand a complete loss of the investment.  

– 4 – 

	  	(h)  	  	The
Investor has not purchased the Securities as a result of any form of general
               solicitation or general advertising, including advertisements, articles,
               notices, or other communications published in any newspaper, magazine, or
               similar media, or broadcast over radio or television, or any seminar or
meeting                whose attendees have been invited by general solicitation or
general                advertising.  

	  	(i)  	  	The
Investor, and if applicable, each person for whose account it is purchasing
               the Units:  

	  	  	i.  	  	acknowledges
that the Units, consisting of the Common Shares and the Warrants,                have not
been registered under the Securities Act, and the Investor undertakes                and
agrees that it will not offer or sell the Common Shares unless the Common
               Shares are registered under the Securities Act and the securities laws of
all                applicable states of the United States, or such Common Shares are sold
pursuant                to an available exemption from such registration requirements;  

	  	  	ii.  	  	if
the Investor is a “U.S. Purchaser”, it represents that it is an
               “accredited investor” as such term is
defined                under Rule 501(a) of Regulation D of the Securities Act, by
satisfying one or                more of the criteria set forth therein. A “U.S.
               Purchaser” in this Agreement means any “U.S.
               person”, as defined in Regulation S under the
Securities Act                (which definition includes but is not limited to (A) any
individual resident in                the United States, (B) any partnership or
corporation organized or incorporated                under the laws of the United States,
(C) any partnership or corporation formed                by a U.S. person under the laws
of any foreign jurisdiction principally for the                purpose of investing in
securities not registered under the Securities Act,                unless it is organized
or incorporated, and owned, by “accredited                investors” as defined
in Rule 501(a) of Regulation D under the Securities                Act resident in the
United States, or (D) any estate or trust of which any                executor,
administrator or trustee is a U.S. person); any person who is in the
               United States; any person who is purchasing the Units on behalf or for the
               benefit of a U.S. Person or person in the United States;  

	  	  	iii.  	  	unless
it is a U.S. Purchaser, the Investor represents that (i) it is not a U.S.
               Person; is not purchasing the Units for the benefit or on behalf of any
U.S.                Person or person in the United States; (ii) it was not offered any of
the Units                in the United States, (iii) it did not receive any materials
relating to the                offer of the Units in the United States, and (iv) it did
not execute this                Agreement or any other materials relating to the purchase
of the Units in the                United States;  

	  	  	iv.  	  	each
Investor who is resident in the Province of Alberta or British Columbia has
               completed the Representation Letter (and Schedule One thereto) attached as
Appendix I and represents that (i) it is an “accredited
               investor”, as such term is defined in National Instrument 45-106
—               Prospectus and Registration Exemptions of the Canadian Securities
Administrators                adopted under the securities legislation of the Canadian
Jurisdictions                (“NI  45-106”), it is not a trust company
or trust corporation                registered under the laws of Prince Edward Island
that is not registered under                the Trust and Loan Companies Act (Canada) or
under comparable legislation in                another jurisdiction of Canada, it was not
created or used solely to purchase or                hold securities as an accredited
investor as described in paragraph (m) of the                definition of “accredited
investor” in NI 45-106, and it has                concurrently executed and
delivered a Representation Letter in the form attached                as Appendix I to
this Agreement and has initialed or placed a check mark in                Schedule One
thereto  

– 5 – 

	  	
indicating
that the Subscriber satisfies one of the categories of “accredited investor” set
forth in such definition or (ii) if the Investor is not purchasing as principal, it is
deemed to be purchasing as principal pursuant to NI 45-106 by virtue of being either (A)
a trust company or trust corporation acting on behalf of a fully managed account managed
by the trust company or trust corporation, or (B) a person acting on behalf of a fully
managed account managed by it, and in each case satisfying the criteria set forth in NI
45-106, and it is duly authorized to enter into this Agreement and to execute and deliver
all documentation in connection with the purchase on behalf of each beneficial purchaser,
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 the resale or distribution of all or any of the
Securities, it acknowledges that the Company is required by law to disclose to certain
regulatory authorities the identity of each beneficial purchaser of the Securities for
whom it may be acting, and it and each beneficial purchaser is resident in the
jurisdiction set out as the “Subscriber’s Address, including Postal Code”;  

	  	(j)  	  	The
Investor understands that the Common Shares issuable upon purchase of the
               Units and the Common Shares issuable on the exercise of the Warrants are
               “restricted securities,” as such term is
defined                under Rule 144 of the Securities Act, and may not be offered,
sold, transferred,                pledged, or hypothecated to any person in the absence
of registration under the                Securities Act or an opinion of counsel
satisfactory to the Company that                registration is not required. Even if an
exemption is available, the                assignability and transfer of the Securities
are subject to limitations imposed                by this Agreement.  

	  	(k)  	  	The
Investor further understands that a legend in substantially the following
               form will be placed on all documents evidencing the Common Shares and the
Common                Shares issuable upon exercise of the Warrants and that similar
notations may be                made on the Company records as a means of preventing the
disposition of the                Common Shares other than in accordance with this
Agreement and applicable law:  

	  	
THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE
SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE
COMPANY, (B) IF THE SECURITIES HAVE BEEN REGISTERED IN COMPLIANCE WITH THE REGISTRATION
REQUIREMENTS UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE
SECURITIES ACT IN ACCORDANCE WITH RULE 144 THEREUNDER, IF APPLICABLE, AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND REGULATIONS
GOVERNING THE OFFER AND SALE OF SECURITIES, AND THE HOLDER HAS, PRIOR TO SUCH SALE,
FURNISHED TO THE COMPANY AN OPINION OF COUNSEL, OF RECOGNIZED STANDING, OR OTHER EVIDENCE
OF EXEMPTION, REASONABLY SATISFACTORY TO THE COMPANY. HEDGING TRANSACTIONS INVOLVING THE
SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH U.S.
SECURITIES LAWS.  

– 6 – 

	  	(l)  	  	The
Investor understands, acknowledges and is aware that the Units are being
               offered for sale only on a “private placement” basis and that
the sale                and delivery of the Securities is conditional upon such sale
being exempt from                the requirements under applicable securities laws as to
the filing of a                prospectus or upon the issuance of such orders, consents
or approvals as may be                required to permit such sale without the filing of
a prospectus and, as a                consequence (i) it is restricted from using most of
the civil remedies available                under securities legislation; (ii) it may not
receive information that would                otherwise be required to be provided to it
under securities legislation; and                (iii) the Company is relieved from
certain obligations that would otherwise                apply under securities
legislation;  

	  	(m)  	  	If
required by applicable securities laws, regulations, rules, policies or
               orders or by any securities commission, stock exchange or other regulatory
               authority, the Investor will execute, deliver, file and otherwise assist
the                Company in filing, such reports, undertakings and other documents with
respect                to the issue of the Securities;  

	  	(n)  	  	The
Investor has not become aware of any advertisement in printed media of
               general and regular paid circulation (or other printed public media),
radio,                television or other forms of advertisement with respect to the
distribution of                the Securities;  

	  	(o)  	  	If
a partnership, trust, corporation, or other entity: (i) the Investor has the
               power and authority to sign and comply with the terms of this Agreement
and the                person signing this Agreement on its behalf has the necessary
power to do so;                (ii) the Investor’s principal place of business and
principal office are                located within the jurisdiction set forth in its
address below.  

	  	(p)  	  	The
Investor understands and agrees that there may be material tax consequences
               to the Investor of an acquisition or disposition of the Securities. The
Company                gives no opinion and makes no representation with respect to the
tax                consequences to the Investor under United States, state, local or
foreign tax                law of the Investor’s acquisition or disposition of the
Securities.  

	  	(q)  	  	The
Investor confirms that neither the officers of the Company nor any of its
               affiliates or agents have made any representations or warranties or
statements,                except as explicitly set forth in this Agreement, concerning
the Investor’s                investment in the Units, including but not limited to
any representations or                warranties concerning tax consequences that may
arise in connection with the                Investor’s investment in the Securities
or the anticipated financial                results of the operations of the Company.  

	  	(r)  	  	The
Investor acknowledges that in making its decision to invest in the
               Securities, it is not relying on any other Investor or upon any person,
firm or                company. Each Investor agrees that no other Investor (including
the Lead                Investor) nor the partners, employees, officers or controlling
persons of any                other Investor shall be liable for any actions taken by
such Investor, or                omitted to be taken by such Investor, in connection with
such investment.  

	  	(s)  	  	No
brokers or finders.   No person, firm or corporation has or will have,
               as a result of any act or omission of any Investor, any right, interest or
valid                claim against the Company or any Investor for any commission, fee
for other                compensation as a finder or broker in connection with the
transactions                contemplated by this Agreement. Each Investor will indemnify
and hold the                Company harmless against any and all liability with respect
to  

– 7 – 

	  	
any
such commission, fee or other compensation which may be payable or determined to be
payable in connection with the transactions contemplated by this Agreement. 

	3.2  	  	Each
Investor agrees as follows:  

	  	(a)  	  	If
the Investor decides to offer, sell or otherwise transfer any of the Common
               Shares or Warrants, it will not offer, sell or otherwise transfer any of
such                securities directly or indirectly, unless:  

	  	  	i.  	  	the
sale is to the Company or in a transaction that is registered under the
               Securities Act and in accordance with any applicable state securities or
               “Blue Sky” laws;  

	  	  	ii.  	  	the
sale is made outside the United States in a transaction meeting the
               requirements of Rule 904 of Regulation S under the Securities Act and in
               compliance with applicable local laws and regulations;  

	  	  	iii.  	  	the
sale is made in compliance with the exemption from the registration
               requirements under the Securities Act and in accordance with Rule 144
               thereunder, if applicable, and in accordance with any applicable state
               securities or “Blue Sky” laws; or  

	  	  	iv.  	  	the
securities are sold in a transaction that does not require registration
               under the Securities Act or any applicable U.S. state laws and regulations
               governing the offer and sale of securities;  

	  	
and
with respect to subparagraphs (iii) and (iv) hereof, it has prior to such sale furnished
to the Company an opinion of counsel reasonably satisfactory to the Company.  

	  	(b)  	  	The
Investor agrees not to engage in hedging transactions prior to the
               expiration of the one-year distribution compliance period set forth in
Rule                903(b)(3) of Regulation S under the Securities Act with regard to (A)
the Units,                or (B) any other securities that it acquires from the Company
in reliance upon                the exclusion from registration provided by Regulation S
under the Securities                Act, and understands that the certificates
representing the Common Shares and                the Warrants will be impressed with a
legend to such effect.  

	3.3  	  	Each
Investor acknowledges and agrees as follows: 

	  	(a)  	  	if
a resident of Alberta or British Columbia, it acknowledges that the
               Securities are subject to Canadian statutory hold periods and resale
               restrictions;  

	  	(b)  	  	it
is solely responsible (and the Company is not in any way responsible) for
               compliance with applicable hold periods and resale restrictions, including
               without limitation the filing of any documentation and, if applicable, the
               payment of any fees with any applicable securities regulatory authority,
and                that we, and (if applicable) others on whose behalf we are contracting
               hereunder, are aware that we, and (if applicable) such others, may not be
able                to resell the Securities except in accordance with limited exceptions
under                applicable securities legislation and regulatory policy and we and,
if                applicable, others on whose behalf we are contracting hereunder, will
not sell,                resell or otherwise transfer the Shares except in compliance
with applicable                laws;  

– 8 – 

	  	(c)  	  	it
has not received or been provided with, nor has it requested, nor does it
               have any need to receive, any offering memorandum, any prospectus, sales
or                advertising literature, or any other document describing or purporting
to                describe the business and affairs of the Company 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
Securities;  

	  	(d)  	  	the
Warrants are non-transferrable, except as otherwise required by law;
               provided however, the holder of Warrants may transfer such Warrants to a
family                trust, family member or corporation controlled by the shareholder,
or if a                corporation, its shareholders.  

	  	(e)  	  	it
acknowledges that any person who exercises a Warrant will be required to
               provide to the Company either:  

	  	  	(i)  	  	a
representation that the Warrant is being exercised by the original purchaser           of
the Units and the representations and warranties made in connection with such
          purchase remain true and correct as of the date of the exercise; or  

	  	  	(ii)  	  	a
written opinion of counsel or other evidence satisfactory to the Company to           the
effect that the Warrants and the Warrant Shares have been registered under           the
Securities Act and applicable state securities laws or are exempt from
          registration thereunder.  

	  	(f)  	  	if
a resident of Alberta or British Columbia, it acknowledges that this
               Agreement requires the Investor to provide certain personal information to
the                Company. Such information is being collected by the Company for the
purposes of                completing the offering, which includes, without limitation,
determining the                Investor’s eligibility to purchase the Units under
applicable securities                laws, preparing and registering certificates
representing Securities to be                issued to the Investors and completing
filings required by any stock exchange or                securities regulatory authority.
The Investor’s personal information may be                disclosed by the Company
to: (i) stock exchanges or securities regulatory                authorities, (ii) the
Company’s registrar and transfer agent, (iii) Canada                Revenue Agency;
and (iv) any of the other parties involved in the offering,                including
legal counsel, and may be included in record books in connection with                the
offering. By executing this Agreement, the Investor is deemed to be
               consenting to the foregoing collection, use and disclosure of the
               Investor’s personal information.  

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

– 9 – 

	4.  	   	COMPANY
REPRESENTATIONS, WARRANTIES, AND COVENANTS  

	  	4.1  	  	In
order to induce each Investor to enter into this Agreement and to purchase the number of
Units set forth after its name on Schedule A, the Company hereby represents
and warrants to each Investor, except as disclosed in the attached Company Disclosure
Schedule, that:  

	  	(a)  	  	Organization,
Standing, Etc.   The Company is a corporation duly organized,                validly
existing and in good standing under the laws of the state of Nevada, and
               has the requisite corporate power and authority to own its properties and
to                carry on its business in all material respects as it is now being
conducted. The                Company has the requisite corporate power and authority to
issue the Securities                and to otherwise perform its obligations under this
Agreement.  

	  	(b)  	  	Governing
Instruments.   The Company has filed in its SEC Reports true,                accurate
and correct copies of the articles of incorporation and bylaws of the
               Company and such articles of incorporation and bylaws are the duly and
legally                adopted articles of incorporation and bylaws of the Company in
effect as of the                date of this Agreement.  

	  	(c)  	  	Subsidiaries,
etc.   Except as otherwise described in its SEC Reports, the                Company
does not have any direct or indirect ownership interest in any
               corporation, partnership, joint venture, association or other business
               enterprise. If any entity is described in the Company’s SEC Reports
and the                Company owns a controlling interest in such entity, each of the
representations                and warranties set forth in this article 4.1 are
being hereby restated with                respect to such entity (modified as appropriate
to the nature of such entity).  

	  	(d)  	  	Qualification.  
The Company is duly qualified, licensed or domesticated as                a foreign
corporation in good standing in each jurisdiction wherein the nature                of
its activities or the properties owned or leased by it makes such
               qualification, licensing or domestication necessary and in which failure
to so                qualify or be licensed or domesticated would have a material adverse
impact upon                its business.  

	  	(e)  	  	Financial
Statements.   The Company’s most recent financial statements
               contained in the Company’s SEC Reports (i) are in accordance
with the                books and records of the Company, (ii) present fairly the
financial                condition of the Company at the balance sheets dates and the
results of its                operations for the periods therein specified, and (iii) have,
in all                material respects, been prepared in accordance with generally
accepted                accounting principles applied on a basis consistent with prior
accounting                periods. Without limiting the generality of the foregoing, the
balance sheets or                notes thereto disclose all of the debts, liabilities and
obligations of any                nature (whether absolute, accrued or contingent and
whether due or to become                due) as of the date of the Company’s most
recent financial statements                contained in the Company’s SEC Reports,
which, individually or in the                aggregate, are material and which in
accordance with generally accepted                accounting principles would be required
to be disclosed in such balance sheets,                and includes appropriate reserves
for all taxes and other liabilities accrued as                of such dates but not yet
payable.  

	  	(f)  	  	Tax
Returns and Audits.   All required federal, state and local tax returns
               or appropriate extension requests of the Company have been filed, and all
               federal, state and local taxes required to be paid with respect to such
returns                have been paid or provision for the payment thereof has been made.
The Company                is not delinquent in the payment of any such tax or in the
payment of any                assessment or governmental charge. The Company has not
received notice of any  

– 10 – 

	  	
tax
deficiency proposed or assessed against it, and it has not executed any waiver of any
statute of limitations on the assessment or collection of any tax. None of the Company’s
tax returns have been audited by governmental authorities in a manner to bring such
audits to the Company’s attention. The Company does not have any tax liabilities
except those incurred in the ordinary course of business since January 1, 2005.  

	  	(g)  	  	Changes,
Dividends, Etc.   Except for the transactions contemplated by this
               Agreement, since the date of the Company’s most recent financial
statements                contained in the Company’s SEC Reports , the Company has
not:                (i) incurred any debts, obligations or liabilities, absolute,
accrued or                contingent and whether due or to become due, except current
liabilities incurred                in the ordinary course of business which will not
materially and adversely                affect the business, properties or prospects of
the Company; (ii) paid any                obligation or liability other than, or
discharged or satisfied any liens or                encumbrances other than those
securing, current liabilities, in each case in the                ordinary course of
business; (iii) declared or made any payment to or                distribution to
its shareholders as such, or purchased or redeemed any of its                shares of
capital stock, or obligated itself to do so; (iv) mortgaged,                pledged
or subjected to lien, charge, security interest or other encumbrance any
               of its assets, tangible or intangible, except in the ordinary course of
               business; (v) sold, transferred or leased any of its assets except in
the                ordinary course of business; (vi) suffered any physical damage,
destruction                or loss (whether or not covered by insurance) materially and
adversely affecting                the properties, business or prospects of the Company;
(vii) entered into                any transaction other than in the ordinary course
of business;                (viii) encountered any labor difficulties or labor union
organizing                activities; (ix) issued or sold any shares of capital
stock or other                securities or granted any options, warrants, or other
purchase rights with                respect thereto other than pursuant to this
Agreement; (x) made any                acquisition or disposition of any material
assets or become involved in any                other material transaction, other than
for fair value in the ordinary course of                business; (xi) increased the
compensation payable, or to become payable, to                any of its directors or
employees, or made any bonus payment or similar                arrangement with any of
its directors or employees or increased the scope or                nature of any fringe
benefits provided for its directors or employees; or                (xii) agreed to
do any of the foregoing other than pursuant hereto. There                has been no
material adverse change in the financial condition, operations,                results of
operations or business of the Company since the date of the                Company’s
most recent financial statements contained in the Company’s                SEC
Reports or most recent draft delivered to the Lead Investor.  

	  	(h)  	  	Title
to Properties and Encumbrances.   The Company has good and marketable
               title to all of its properties and assets, including without limitation
the                properties and assets reflected on the Company’s most recent
financial                statements contained in the Company’s SEC Reports and the
properties and                assets used in the conduct of its business, except for
property disposed of in                the ordinary course of business since the date of
the Company’s most recent                financial statements contained in the
Company’s SEC Reports, which                properties and assets are not subject to
any mortgage, pledge, lease, lien,                charge, security interest, encumbrance
or restriction, except (a) those                which are shown and described on the
Company Disclosure Schedule or the notes to                the financial statements
attached to the Company’s latest SEC Reports,                (b) liens for
taxes and assessments or governmental charges or levies not                at the time
due or in respect of which the validity thereof shall currently be
               contested in good faith by appropriate proceedings, or (c) those
which do                not materially affect the value of or interfere with the use made
of such                properties and assets.  

– 11 – 

	  	(i)  	  	Conditions
of Properties.   The plant, offices and equipment of the Company                have
been kept in good condition and repair in the ordinary course of business.  

	  	(j)  	  	Litigation;
Governmental Proceedings.   There are no legal actions, suits,
               arbitrations or other legal, administrative or governmental proceedings
or, to                the knowledge of the Company, threatened against the Company, or
its properties                or business, and the Company is not aware of any pending
investigations or facts                which are likely to result in or form the basis
for any such action, suit or                other proceeding. The Company is not in
default with respect to any judgment,                order or decree of any court or any
governmental agency or instrumentality. The                Company has not been
threatened with any action or proceeding under any business                or zoning
ordinance, law or regulation.  

	  	(k)  	  	Compliance
With Applicable Laws and Other Instruments.   To the best of the                Company’s
knowledge, the business and operations of the Company have been                and are
being conducted in all material respects in accordance with all                applicable
laws, rules and regulations of all governmental authorities. Neither                the
execution nor the delivery of, nor the performance of or compliance with,
               this Agreement nor the consummation of the transactions contemplated
hereby                will, with or without the giving of notice or passage of time: (i)
result in any                breach of, or constitute a default under, or result in the
imposition of any                lien or encumbrance upon any asset or property of the
Company pursuant to, any                agreement or other instrument to which the
Company is a party or by which it or                any of its properties, assets or
rights is bound or affected, or (ii) violate                the articles of incorporation
or bylaws of the Company. The Company is not in                violation of its articles
of incorporation or bylaws nor in material violation                of, or in material
default under, any lien, indenture, mortgage, lease,                agreement,
instrument, commitment or arrangement in any material respect. The                Company
is not subject to any restriction which would prohibit it from entering
               into or performing its obligations under this Agreement.  

	  	(l)  	  	Units,
Warrants and Common Shares.   The Units and the underlying Common
               Shares, when issued and paid for pursuant to the terms of this Agreement
or upon                the exercise of the Warrants, will be duly authorized, validly
issued and                outstanding, fully paid, nonassessable shares and shall be free
and clear of all                pledges, liens, encumbrances and restrictions created by
the Company. The                Warrants, when issued pursuant to the terms of this
Agreement will be binding                obligations of the Company in accordance with
their terms. The Common Shares                have been reserved for issuance and when
issued upon exercise of the Warrants                will be duly authorized, validly
issued and outstanding, fully paid,                nonassessable and free and clear of
all pledges, liens, encumbrances and                restrictions.  

	  	(m)  	  	Securities
Laws.   Based in part upon the representations of the Investors                in
Section 3, no consent, authorization, approval, permit or order of or
               filing with any governmental or regulatory authority is required under
current                laws and regulations in connection with the execution and delivery
of this                Agreement or the offer, issuance, sale or delivery of the
Securities, other than                the qualification thereof, if required, under
applicable state securities laws,                which qualification has been or will be
effected as a condition of these sales                except applicable notices of
exemption, such as a Form D. The Company has not,                directly or through an
agent, offered the Securities or any similar securities                for sale to, or
solicited any offers to acquire such securities from, persons                other than
the Investors and other accredited investors, except prior to the                date of
this Agreement, which offers have or will be terminated prior to the
               Closing Date. To the best of the Company’s knowledge, under the
               circumstances contemplated by this Agreement and assuming the accuracy of  

– 12 – 

	  	
the
representations of the Investors in Section 3, the offer, issuance, sale and
delivery of the Securities will not, under current laws and regulations, require
compliance with the prospectus delivery or registration requirements of the federal
Securities Act.  

	  	(n)  	  	Patents
and Other Intangible Rights.   To the best of the Company’s
               knowledge, the Company (a) owns or has the exclusive right to use,
free and                clear of all material liens, claims and restrictions, all
patents, trademarks,                service marks, trade names, copyrights, licenses and
rights with respect to the                foregoing, used in the conduct of its business
as now conducted without                infringing upon or otherwise acting adversely to
the right or claimed right of                any person under or with respect to any of
the foregoing, (b) is not                obligated or under any liability whatsoever
to make any payments of a material                nature by way of royalties, fees or
otherwise to any owner of, licensor of, or                other claimant to, any patent,
trademark, trade name, copyright or other                intangible asset, with respect
to the use thereof or in connection with the                conduct of its business or
otherwise, (c) owns or has the unrestricted                right to use all trade
secrets, including know-how, customer lists, inventions,                designs,
processes, computer programs and technical data necessary to develop
               operation and sale of all products and services sold or proposed to be
sold by                it, free and clear of any rights, liens, or claims of others, and
(d) is                not using any confidential information or trade secrets of
others.  

	  	(o)  	  	Capital
Stock.   The authorized capital stock of the Company consists of
               100,000,000 common shares, $0.001 par value, of which 19,450,000 shares
are                issued and outstanding as of the Effective Date. All of the
outstanding shares                of the Company were duly authorized and validly issued
and are fully paid and                nonassessable. There are no outstanding
subscriptions, options, warrants, calls,                contracts, demands, commitments,
convertible securities or other agreements or                arrangements of any
character or nature whatever, other than this Agreement,                under which the
Company is obligated to issue any securities of any kind                representing an
ownership interest in the Company. Neither the offer nor the                issuance or
sale of the Units, the Common Shares or the Warrants constitutes an                event,
under any anti-dilution provisions of any securities issued or issuable                by
the Company or any agreements with respect to the issuance of securities by
               the Company, which will either increase the number of shares issuable
pursuant                to such provisions or decrease the consideration per share to be
received by the                Company pursuant to such provisions. No holder of any
security of the Company is                entitled to any pre-emptive or similar rights
to purchase any securities of the                Company from the Company; provided,
however, that nothing in this                section 4.1(o) shall affect, alter or
diminish any right granted to the                Investors in this Agreement.  

	  	(p)  	  	All
securities issued by the Company have been issued in full compliance with an
               exemption or exemptions from the registration and prospectus delivery
               requirements of the Securities Act and from the registration and
qualification                requirements of all applicable state securities laws.  

	  	(q)  	  	Outstanding
Debt.   The Company does not have any material indebtedness                incurred as
the result of a direct borrowing of money, including, but not                limited to,
indebtedness with respect to trade accounts, except as set forth in                the
Company’s most recent financial statements contained in the                Company’s
SEC Reports or the notes thereto. The Company is not in default                in the
payment of the principal of or interest or premium on any such
               indebtedness, and no event has occurred or is continuing under the
provisions of                any instrument, document or agreement evidencing or relating
to any such                indebtedness  

– 13 – 

	  	
which
with the lapse of time or the giving of notice, or both, would constitute an event of
default thereunder.  

	  	(r)  	  	Assets
and Contracts.   The Company has filed all material agreements                required
to be filed or submitted with its SEC Reports under the rules and
               regulations of the SEC. The Company has in all material respects
substantially                performed all obligations required to be performed by it to
date and is not in                default in any material respect under any of the
contracts, agreements, leases,                documents, commitments or other
arrangements to which it is a party or by which                it is otherwise bound. All
instruments material to the Company’s business                or otherwise described
in this section are in effect and enforceable according                to their
respective terms, and there is not under any of such instruments any
               existing material default or event of default or event which, with notice
or                lapse of time or both, would constitute an event of default thereunder.
All                parties having material contractual arrangements with the Company are
in                substantial compliance therewith and none are in material default in
any respect                thereunder.  

	  	(s)  	  	Corporate
Acts and Proceedings.   This Agreement has been duly authorized                by all
necessary corporate action on behalf of the Company, has been duly
               executed and delivered by authorized officers of the Company, and is a
valid and                binding agreement on the part of the Company that is enforceable
against the                Company in accordance with its terms, except as the
enforceability thereof may                be limited by bankruptcy, insolvency,
moratorium, reorganization or other                similar laws affecting the enforcement
of creditors’ rights generally and                to judicial limitations on the
enforcement of the remedy of specific performance                and other equitable
remedies. All corporate action necessary to the                authorization, creation,
reservation, issuance and delivery of the Units, Common                Shares, the
Warrants and the Common Shares acquirable upon exercise of the                Warrants
has been taken by the Company, or will be taken by the Company on or                prior
to the Closing Date.  

	  	(t)  	  	Accounts
Receivable.   To the extent that they exceed the reserves for                doubtful
accounts set forth in the most recent financial statements contained in
               the Company’s SEC Reports, the accounts receivable which are
reflected in                such financial statements and all accounts receivable of the
Company which have                arisen since the latest date of the balance sheet
contained in such financial                statements (except such accounts receivable as
have been collected) are valid                and enforceable claims, and the goods and
services sold and delivered which gave                rise to such accounts were sold and
delivered in conformity with the applicable                purchase orders, agreements
and specifications. To the best of the                Company’s knowledge, such
accounts receivable are subject to no valid                defense or offsets except
routine customer complaints or warranty demands of an                immaterial nature.
The reserve for doubtful accounts that is included in the                most recent
financial statements contained in the Company’s SEC Reports is
               adequate.  

	  	(u)  	  	Inventories.  
The inventories of the Company which are reflected in the                most recent
financial statements contained in the Company’s SEC Reports and                all
inventory items which have been acquired since the latest date of the
               balance sheet contained in such financial statements consist of raw
materials,                supplies, work-in-process and finished goods of such quality
and quantities as                are currently usable or salable in the ordinary course
of its business.  

	  	(v)  	  	Insurance
Coverage.   There are in full force policies of insurance issued                by
insurers of recognized responsibility insuring the Company and its properties
               and business against such losses and risks, and in such amounts, as in the
               Company’s best judgment, after  

– 14 – 

	  	
advice
from its insurance broker, are acceptable for the nature and extent of such business and
its resources.  

	  	(w)  	  	No
Brokers or Finders.   No person, firm or corporation has or will have,
               as a result of any act or omission of the Company, any right, interest or
valid                claim against the Company or any Investor for any commission, fee or
other                compensation as a finder or broker in connection with the
transactions                contemplated by this Agreement. The Company will indemnify
and hold each of the                Investors harmless against any and all liability with
respect to any such                commission, fee or other compensation which may be
payable or determined to be                payable in connection with the transactions
contemplated by this Agreement.  

	  	(x)  	  	Licenses.  
The Company possesses from the appropriate agency, commission,                board and
government body and authority, whether state, local or federal, all
               licenses, permits, authorizations, approvals, franchises and rights which
are                (a) necessary for it to engage in the business currently
conducted by it,                and (b) if not possessed by the Company would have
an adverse impact on the                Company’s business. The Company has no
knowledge that would lead it to                believe that it will not be able to obtain
all licenses, permits,                authorizations, approvals, franchises and rights
that may be required for any                business the Company proposes to conduct.  

	  	(y)  	  	Disclosure.  
The Company has not knowingly withheld from the Investors any                material
facts known to the Company and relating to the assets, business,
               operations, financial condition or prospects of the Company. No
representation                or warranty in this Agreement or in any certificate,
schedule, statement or                other document furnished or to be furnished to any
Investor pursuant hereto or                in connection with the transactions
contemplated hereby contains or will contain                any untrue statement of a
material fact or omits or will omit to state any                material fact required to
be stated herein or therein or necessary to make the                statements herein or
therein not misleading.  

	  	(z)  	  	Registration
Rights.   Other than as contemplated under this Agreement, the                Company
has not agreed to register any of its authorized or outstanding                securities
under the Securities Act.  

	  	(aa)  	  	Retirement
Plans.   The Company does not have any retirement plan in which                any
employees of the Company participates that is subject to any provisions of
               the Employee Retirement Income Security Act of 1974 and of the regulations
               adopted pursuant thereto (“ERISA”).  

	  	(bb)  	  	Environmental
and Safety Laws.   The Company has not received any notice                that it is in
violation of any applicable statute, law or regulation relating to                the
environment or occupational health and safety, and to the best of the
               Company’s knowledge no material expenditures are or will be required
in                order to comply with any such existing statute, law or regulation.  

	  	(cc)  	  	Employees.  
To the best of the Company’s knowledge, no officer of the                Company or
employee of the Company (whose annual compensation is in excess of
               $20,000) has any plans to terminate his or her employment with the
Company.                Except for the accrual of salaries disclosed in the Company’s
Disclosure                Statement, the Company has complied in all material respects
with all laws                relating to the employment of labor, including provisions
relating to wages,                hours, equal opportunity, collective bargaining and
payment  

– 15 – 

	  	
of
Social Security and other taxes, and the Company has not
encountered any material labor difficulties.  The Company does not have any worker’s
compensation liabilities.

	  	(dd)  	  	Absence
of Restrictive Agreements.   To the best of the Company’s
               knowledge, no employee of the Company is subject to any secrecy or
               non-competition agreement or any agreement or restriction of any kind that
would                impede in any way the ability of such employee to carry out fully
all activities                of such employee in furtherance of the business of the
Company. To the best of                the Company’s knowledge, no employer or
former employer of any employee of                the Company has any claim of any kind
whatsoever in respect of any of such                rights.  

	5.  	   	REGISTRATION
RIGHTS  

	  	
The
Company will use commercially reasonable efforts to prepare and file with the SEC sixty
(60) days after the Closing Date, a registration statement (on Form S-3, SB-1, SB-2, S-1,
or other appropriate registration statement form reasonably acceptable to the Company)
under the Securities Act (the “Registration Statement”),
in respect of each Investor, so as to permit a public offering and resale of the Common
Shares and the Warrant Shares (collectively, the “Registrable Securities”)
in the United States under the Securities Act by such Investor as a selling stockholder
and not as an underwriter.  

	  	
In
the event that (i) the Registration Statement to be filed by the Company pursuant to this
Section 5 is not filed with the SEC within sixty (60) days from the Closing Date, then
the Company, on the sixty-first (61st) day following the Closing Date, will
issue to each Subscriber a number of Common Shares two percent (2%) of the aggregate
number of the Common Shares issued to the Subscriber and on each thirty day period
thereafter, a number of Common Shares equal to two percent (2%) of the aggregate number
of the Common Shares issued to the Subscriber under this Agreement until such
Registration Statement has been filed. Such payment of the liquidated damages shall be
made to the Investors in cash, within five (5) calendar days of demand, provided,
however, that the payment of such liquidated damages shall not relieve the Company from
its obligations to register the Registrable Securities pursuant to this Agreement.  

	  	
Each
Investor will cooperate with the Company in all respects in connection with the
Registration Statement, including timely supplying all information reasonably requested
by the Company (which shall include all information regarding the Investor and proposed
manner of sale of the Registrable Securities required to be disclosed in any Registration
Statement) and executing and returning all documents reasonably requested in connection
with the registration and sale of the Registrable Securities and entering into and
performing its obligations under any underwriting agreement, if the offering is an
underwritten offering, in usual and customary form, with the managing underwriter or
underwriters of such underwritten offering. Any delay or delays caused by an Investor, or
by any other purchaser of securities of the Company having registration rights similar to
those contained herein, by failure to cooperate as required hereunder shall not
constitute a breach or default of the Company under this Agreement.  

	6.  	   	GENERAL  

	6.1  	  	From
time to time during the period commencing as of the Closing Date and until one hundred
twenty (120) days following the effective date of the Registration Statement contemplated
in Section 5 of this Agreement (the “Restricted Period”), the Company shall not
enter into any agreement to sell Common Shares or any equity based securities without the
prior written consent  

– 16 – 

	  	
of
the Lead Investor, which consent shall not be unreasonably withheld. Notwithstanding the
foregoing, the Company may offer and sell Common Shares equity based securities during
the Restricted Period as follows:  

	  	  	(a)  	  	up
to 1,000,000 Common Shares in compensatory arrangements or issuable upon
               exercise of compensatory stock options granted to employees, officers
and/or                directors, which have been approved by the Company’s board of
directors;  

	  	  	(b)  	  	up
to 1,000,000 Common Shares to consultants and professional as compensation
               for services approved by the Company’s board of directors;  

	  	  	(c)  	  	up
to 3,000,000 Common Shares in connection with the acquisition of property,
               assets or technology related to the Company’s business, which have
been                approved by the Company’s board of directors; and  

	  	  	(d)  	  	up
to 2,000,000 Common Shares in one or more financing transactions at a price
               in excess of $1.50 per share.  

	6.2  	  	Should
the Company desire to sell any newly issued securities during the twelve months following
the Closing Date, the Company shall provide written notice to the Lead Investor in the
following manner (the “Offer Notice”).  The Offer
Notice must specify all of the terms and conditions of the proposed sale, but may omit
the identity of the proposed purchaser(s) (collectively, the “Proposed
Purchaser”). The Investors shall have the option, but not the
obligation, within five (5) business days after receipt of the Offer Notice to purchase
any or all of the securities specified in the Offer Notice (“Offered Securities”)
at the price and on all the terms stated in the Offer Notice, including, without
limitation, the closing date and manner of delivery of funds. If any Investor exercises
such option, Lead Investor shall deliver written notice to the Company within such five
(5) business day period. If any Investor exercises such option but fails to close in
accordance with the terms set forth in the Offer Notice, then such Investor shall have no
further rights under this Section 6.2. If an Investor does not elect to purchase the
Offered Securities within said five (5) business day period, then the Company shall be
under no obligation to sell any of the Offered Securities to that Investor. If no
Investor elects to purchase Offered Securities within said five (5) business day period,
then the Company shall be under no obligation to sell any of the Offered Stock to any of
the Investors, but may instead sell any portion, or all, of the Offered Securities to the
Proposed Purchaser at the price and on the terms and conditions specified in Offer
Notice, within ninety (90) days of delivery of the Offer Notice. The Company may
not, however, without giving a new notice of its intention to so do pursuant to this
Section 6.2, sell any or all of the Offered Securities beyond said ninety (90) day period
or at any other price or on any terms and conditions other than those specified in the
Offer Notice.  

	6.3  	  	For
the purposes of this Agreement, time is of the essence. 

	6.4  	  	The
parties will sign and deliver all further documents and instruments and do all things
that may, either before or after the signing of this Agreement, be reasonably required to
carry out the full intent and meaning of this Agreement.  

	6.5  	  	This
Agreement may not be assigned by either party hereto. 

	6.6  	  	All
notices, requests, consents and other communications required or permitted hereunder
shall be in writing and shall be delivered, or mailed first-class postage prepaid,
registered or certified mail, if to any Investor or any holder of Warrants addressed to
such holder at its address as shown  

– 17 – 

	  	
on
the books of the Company, or at such other address as such holder mayspecify by written
notice to the Company, or if to the Company at the address set forth above, Attention:
President; or at such other address as the Company may specify by written notice to the
Investors; and such notices and other communications shall for all purposes of this
Agreement be treated as being effective or having been given if delivered personally, or,
if sent by mail, when received.  

	6.7  	  	All
representations and warranties contained herein shall survive the execution and delivery
of this Agreement, any investigation at any time made by the Investors or on their
behalf, and the sale and purchase of the Units and payment therefor. All statements
contained in any certificate, instrument or other writing delivered by or on behalf of
the Company pursuant to this Agreement or in connection with or in contemplation of the
transactions herein contemplated shall constitute representations and warranties by the
Company hereunder.  

	6.8  	  	This
Agreement and the agreements contemplated herein contains the entire understanding of the
parties with respect to the transactions contemplated in this Agreement and the terms of
this Agreement expressly replace and supersede any prior oral or written communication,
understanding or agreement among the parties and this Agreement may be amended only by
agreement in writing executed by the parties.  

	6.9  	  	Each
Party acknowledges that it has been advised by the other to seek independent legal and
financial (including tax) advice with respect to this Agreement and that it has not
relied on the other party for any advice, whether legal or otherwise, with respect to
this Agreement.  

	6.10  	  	This
Agreement shall be interpreted neutrally and no construction against the drafter shall be
permitted. 

	6.11  	  	It
is the intention of the parties hereto that this Agreement and the performance hereunder
shall be interpreted and construed in accordance with and pursuant to the laws of the
State of California.  

	6.12  	  	This
Agreement may be signed by the parties in as many counterparts as may be deemed
necessary, each of which so signed will be deemed to be an original, and all counterparts
together will constitute one and the same instrument. A copy of this Agreement
transmitted by facsimile will be treated and relied on for all purposes by any person as
an originally signed copy.  

	6.13  	  	In
the event any legal action is instituted by any party to this Agreement for the purpose
of enforcing or interpreting any provision of this Agreement or any other agreement
arising under or relating to this Agreement, the prevailing party in such action shall be
entitled to recover its reasonable attorneys’ and expert witness fees and costs.  

– 18 – 

TO BE COMPLETED BY THE
INVESTOR 

1.    Subscriber’s Details. 

Name of Subscriber (please print)
_______________________________________________ 

By (authorized
signature)____________________________________________________ 

(Official Capacity or Title please
print)_____________________________________________ 

__________________________________________________________________

(Please print name of individual whose signature appears above if different than name of
the subscriber printed above) 

________________________________________________________________________________________

(Subscriber’s Address including Postal code) 

________________________________________________________________________________________

(Phone Number)
          (Fax Number)          
          (email address)

Register Common Shares and Warrants
as set forth below:  

___________________________________________________________________________

(Name)               
                
(Account Reference if applicable) 

____________________________________________________________________________

(Address, including postal code) 

Number of Units:    _______________  

Aggregate Subscription Price
(@US$1.50 per Unit):     US$____________________________  

If the Subscriber is signing as
agent for a principal and is not deemed to be purchasing as principal pursuant to NI
45-106 (as defined in Appendix I) 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 case satisfying the criteria set forth in NI 45-106, complete the
following and ensure that Appendix I (and Schedule One thereto) is completed in respect
of such principal:  

_________________________________________________________

(Name of Principal) 

_________________________________________________________

(Principal's Address) 

______________________________________________________________________________________________________

________________________________________________________________________________________

(Principal’s Phone Number)
          (’Fax Number)          
          (’email address)

Deliver the Common Shares as set
forth below:  

___________________________________________________________________________

(Name)               
                
(Account Reference if applicable) 

__________________________________________________

(Contact Name) 

_____________________________________________________

(Address, including postal code) 

– 19 – 

ACCEPTANCE 

Signed and Accepted this ____ day of
December, 2005. 

CHILCO RIVER HOLDINGS,
INC. 

Per: 

_____________________________

Authorized Signatory 

– 20 – 

Company Disclosure
Schedule 

– 21 – 

Appendix I 

– 22 – 

APPENDIX I 

REPRESENTATION LETTER 

(FOR ACCREDITED
INVESTORS) 

TO:         Chilco River
Holdings, Inc. (the “Company”) 

In connection with the purchase of
units (the “Units” or “Securities”) of the Company 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 Appendix I), the Subscriber hereby represents, warrants, covenants and certifies to
the Company that: 

     	1. 	
          The Subscriber is resident in Alberta or British Columbia, or is otherwise
          subject to applicable securities laws of the Province of Alberta or British
          Columbia; 

          

     	2. 	
          The Subscriber is purchasing the Securities as principal for its own account or
          complies with the provisions of paragraph 3.2 of the Unit Purchase Agreement
          effective as of December, 2005 by and among the Company and the Investors, as
          defined therein (the “Subscription Agreement”); 

          

     	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 Schedule One to this Representation Letter; 

          

     	4. 	
          The Subscriber 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; and 

          

     	5. 	
          Upon execution of this Appendix I by the Subscriber, this Appendix I shall be
          incorporated into and form a part of the Subscription Agreement. 

          

Dated:
_________________________, 2005 

________________________________

Print name of Subscriber 

By:    __________________________________________________  

Signature:   
 __________________________________________________ 

_____________________________________________________________

Print name of Signatory (if different from Subscriber) 

_____________________________________________________________

Title 

IMPORTANT: PLEASE
INITIAL THE APPLICABLE PROVISION IN

SCHEDULE ONE ON THE NEXT PAGES 

– 23 – 

SCHEDULE ONE 

TO APPENDIX I 

NOTE:   THE INVESTOR MUST
INITIAL BESIDE THE APPLICABLE PORTION OF THE DEFINITION BELOW. 

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

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

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

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

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

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

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

	_____	                (g)  	  	a
municipality,  public board or commission in Canada and a metropolitan community,  school
                         board, the Comite de gestion de la taxe scolaire de l'ile de
Montreal or an  intermunicipal                          management board in Quebec; or 

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

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

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

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

– 24 – 

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

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

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

	_____	                (n)  	  	an
investment fund that distributes or has distributed its securities only to 

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

	  	  	•	  	a
person that acquires or acquired securities in the circumstances  referred to in sections
                                  2.10 and 2.19 of National Instrument 45-106, or 

	  	  	•  	  	a
person  described in paragraph  (i) or (ii) that  acquires or acquired  securities  under
                                  section 2.18 of National Instrument 45-106; or 

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

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

	_____	                (q)  	  	a
person acting on behalf of a fully managed account by that person, if that person 

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

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

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

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

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

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

– 25 – 

	_____	                (v)  	  	a
person that is  recognized  or  designated  by the  securities  regulatory  authority or,
                         except in Ontario and Quebec, the regulator as 

	  	  	                (i)  	  	an
accredited investor, or 

	  	  	                (ii)  	  	an
exempt purchaser in Alberta or British Columbia after National  Instrument  45-106 comes
                                  into force. 

For the purposes hereof: 

	(a) 	  	“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;  

	(b)  	  	“control
person” has the same meaning as in securities                     legislation
except in Manitoba, Newfoundland and Labrador, Northwest                     Territories,
Nova Scotia, Nunavut, Ontario, Prince Edward Island and                     Quebéc
where control person means any person that holds or is one of a
                    combination of persons 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;  

	(c) 	  	“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;  

	(d) 	  	“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 and 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  

– 26 – 

	  	  	(A)  	  	have
a professional, business or personal relationship with the issuer, or any
               of its directors, executive officer, 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;  

	(e) 	  	“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,  

	  	(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;  

	(f) 	  	“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;  

	(g) 	  	“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;  

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

	(i)  	  	“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;  

	(j)  	  	“investment
fund” means a mutual fund or a non redeemable                     investment
fund;  

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

	(l)  	  	“local
jurisdiction” means the jurisdiction in which the                     Canadian
securities regulatory authority is situate;  

	(m)  	  	“non-redeemable
investment fund” means an issuer,  

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

– 27 – 

	  	(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;  

	(n) 	  	“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  

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

	(o)  	  	“regulator” means,
for the local jurisdiction, the Executive                     Director as defined under
securities legislation of the local jurisdiction;  

	(p) 	  	“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;  

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

	(r) 	  	“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) above, or is
               an adult interdependent partner within the meaning of the Adult
               Interdependent Relationships Act (Alberta); and  

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

All monetary references are in
Canadian Dollars. 

– 28 – 

Schedule A 

	
Investor Name 

and Address

_________________________________

_________________________________

_________________________________

_________________________________
 
	
Number

of Units

_________________________________

_________________________________

_________________________________

_________________________________
 
	
Amount of

Investment

_________________________________

_________________________________

_________________________________

_________________________________
 

– 29 – 

Schedule B 

Form of Warrant
Certificate 

– 30 – 

Wire Transfer
Instructions 

Wells Fargo Bank

9635 Las Tunas Drive

Temple City, CA 91780 

Routing No. 121000248

Account No.: 3367111089 

Account Ref.: Name: Chilco River Holdings, Inc. 

– 31 –

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