Document:

ZANN CORP.
                            PLACEMENT AGENT AGREEMENT

                                                   Dated as of: December 8, 2005

Monitor Capital, Inc.
9171 Towne Centre Drive, Suite 465
San Diego, CA 92122

     RE:   Placement Agent Agreement (the "Agreement")
                                           ---------

Ladies  and  Gentlemen:

     The  undersigned,  Zann Corp., a Nevada corporation (the "Company"), hereby
                                                               -------
agrees with Monitor Capital, Inc. (the "Placement Agent") as follows:
                                        ---------------

     1.     Offering.  The  Company hereby engages the Placement Agent to act as
            --------
its exclusive placement agent in connection with the Standby Equity Distribution
Agreement  dated  the  date  hereof  between  the  Company  and  Cornell Capital
Partners,  LP  (the  "Investor")  (the "Standby Equity Distribution Agreement"),
                      --------          -------------------------------------
pursuant to which the Company shall issue and sell to the Investor, from time to
time,  and  the  Investor shall purchase from the Company (the "Offering") up to
                                                                --------
Five  Million  Dollars  ($5,000,000)  (the "Commitment Amount") of the Company's
                                            -----------------
common  stock,  par  value  $0.001  per share (the "Common Stock"), at price per
                                                    ------------
share equal to the Purchase Price, as that term is defined in the Standby Equity
Distribution Agreement.  The Placement Agent services shall consist of reviewing
the  terms of the Standby Equity Distribution Agreement and advising the Company
with  respect  to  those  terms.

     All  capitalized  terms  used herein and not otherwise defined herein shall
have  the  same  meaning  ascribed to them as in the Standby Equity Distribution
Agreement.  The  Investor  will  be  granted  certain  registration  rights with
respect  to  the Common Stock as more fully set forth in the Registration Rights
Agreement  between  the  Company  and  the  Investor  dated the date hereof (the
"Registration Rights Agreement").  The documents to be executed and delivered in
 -----------------------------
connection  with  the  Offering,  including,  but  not limited, to the Company's
latest  Quarterly  Report  on  Form  10-QSB  as  filed  with  the  United States
Securities  and  Exchange  Commission,  this  Agreement,  the  Standby  Equity
Distribution  Agreement,  and  the Registration Rights Agreement are referred to
sometimes  hereinafter  collectively as the "Offering Materials."  The Company's
                                             ------------------
Common  Stock  purchased  by  the Investor under the Standby Equity Distribution
Agreement  is  sometimes  referred  to  hereinafter  as  the  "Securities."  The
                                                               ----------
Placement  Agent  shall  not  be  obligated  to  sell  any  Securities.

     2.   Compensation.
          ------------

          A.     Upon  the  execution of this Agreement, the Company shall issue
to  the  Placement Agent or its designee shares of the Company's Common Stock in
an  amount  equal  to  Ten Thousand Dollars ($10,000) divided by the closing bid
price  of  the Common Stock, as quoted by Bloomberg, LP, on the date hereof (the
"Placement  Agent's  Shares").  The  Placement
 --------------------------

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<PAGE>
Agent  shall be entitled to "piggy-back" registration rights with respect to the
Placement  Agent's  Shares,  which  shall  be triggered upon registration of any
shares  of  Common  Stock  by  the  Company  pursuant to the Registration Rights
Agreement  dated  the  date  hereof.

     3.   Representations,  Warranties  and  Covenants of the Placement Agent.
          --------------------------------------------------------------------

          A.     The  Placement  Agent  represents,  warrants  and  covenants as
follows:

                    (i)     The Placement Agent has the necessary power to enter
into this Agreement and to consummate the transactions contemplated hereby.

                    (ii)     The  execution  and delivery by the Placement Agent
of  this  Agreement and the consummation of the transactions contemplated herein
will  not  result  in  any violation of, or be in conflict with, or constitute a
default  under,  any  agreement  or instrument to which the Placement Agent is a
party  or  by  which  the  Placement  Agent  or its properties are bound, or any
judgment,  decree,  order  or,  to the Placement Agent's knowledge, any statute,
rule  or  regulation  applicable  to  the  Placement Agent.  This Agreement when
executed  and delivered by the Placement Agent, will constitute the legal, valid
and  binding  obligations of the Placement Agent, enforceable in accordance with
their  respective terms, except to the extent that (a) the enforceability hereof
or  thereof may be limited by bankruptcy, insolvency, reorganization, moratorium
or  similar  laws  from  time  to  time  in  effect  and affecting the rights of
creditors  generally,  (b)  the  enforceability  hereof or thereof is subject to
general  principles  of  equity, or (c) the indemnification provisions hereof or
thereof  may  be  held  to  be  in  violation  of  public  policy.

                    (iii)     Upon  receipt and execution of this Agreement, the
Placement Agent will promptly forward copies of this Agreement to the Company or
its  counsel  and  the  Investor  or  its  counsel.

                    (iv)     The Placement Agent will not intentionally take any
action  that  it  reasonably  believes  would  cause the Offering to violate the
provisions  of  the  Securities  Act  of  1933, as amended (the "1933 Act"), the
                                                                 --------
Securities  Exchange  Act  of  1934  (the  "1934 Act"), the respective rules and
                                            --------
regulations  promulgated  thereunder (the "Rules and Regulations") or applicable
                                           ---------------------
"Blue  Sky"  laws  of  any  state  or  jurisdiction.

                    (v)     The  Placement  Agent  is  a  member of the National
Association  of  Securities  Dealers, Inc., and is a broker-dealer registered as
such under the 1934 Act and under the securities laws of the states in which the
Securities  will  be  offered or sold by the Placement Agent unless an exemption
for  such state registration is available to the Placement Agent.  The Placement
Agent is in material compliance with the rules and regulations applicable to the
Placement  Agent generally and applicable to the Placement Agent's participation
in  the  Offering.

          B.     Trading  Activities  and  Restrictions.  The  Placement  Agent
covenants that neither the Placement Agent, nor any entity managed or controlled
by  the  Placement Agent, nor any of their respective affiliates, will, or cause
or  assist  any  Person  to  enter  into or execute any "short sale" (including,
without  limitation,  as  such  term  is  defined  in  Rule  200  of  Regulation

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SHO  promulgated  by  the  SEC  under  the  Securities  Exchange Act of 1934, as
amended)  with  respect  to  any  securities  of  the  Company  or  any  similar
transaction  with  similar  effect.

     4.   Representations  and  Warranties  of  the  Company.
          --------------------------------------------------

          A.     The Company represents and warrants, except as set forth in the
Schedule  of  Exceptions  delivered  in  connection  with  the  Standby  Equity
Distribution  Agreement,  as  follows:

                    (i)     The  Company  has  the requisite corporate power and
authority  to  enter into and perform each of the Transaction Documents to which
it  is  a  party,  in  accordance with the terms thereof, (ii) the execution and
delivery  of  each such Transaction Document by the Company and the consummation
by it of the transactions contemplated therein, have been duly authorized by the
Company's Board of Directors and no further consent or authorization is required
by  the  Company,  its  Board  of Directors or its stockholders, (iii) each such
Transaction  Document  has been duly executed and delivered by the Company, (iv)
assuming  the execution and delivery thereof and acceptance by the Investor each
such  Transaction  Document  and  any  related agreements constitute a valid and
binding  obligation of the Company enforceable against the Company in accordance
with  its  terms,  except  as  such  enforceability may be limited by applicable
bankruptcy,  securities  insolvency,  or  similar laws relating to, or affecting
generally,  the enforcement of creditors' rights and remedies or indemnification
or  by  other  equitable  principles  of  general  application.

                    (ii)     The  Company  has  a  duly  authorized,  issued and
outstanding  capitalization  as  set  forth  herein  and  in  the Standby Equity
Distribution Agreement.  All of such outstanding shares have been validly issued
and are fully paid and nonassessable.  Except as contemplated in the Transaction
Documents or disclosed in the SEC Documents, as of the date hereof, no shares of
Common Stock are subject to preemptive rights or any other similar rights or any
liens  or  encumbrances  suffered  or  permitted  by  the  Company.  Except  as
contemplated  in the Transaction Documents or as disclosed in the SEC Documents,
as  of  the  date hereof, (i) there are no outstanding options, warrants, scrip,
rights  to  subscribe  to,  calls  or  commitments  of  any character whatsoever
relating  to,  or  securities  or rights convertible into, any shares of capital
stock  of  the  Company  or  any of its subsidiaries, or contracts, commitments,
understandings  or  arrangements by which the Company or any of its subsidiaries
is  or  may  become  bound  to  issue  additional shares of capital stock of the
Company  or  any  of  its  subsidiaries  or  options, warrants, scrip, rights to
subscribe  to,  calls or commitments of any character whatsoever relating to, or
securities  or  rights  convertible  into,  any  shares  of capital stock of the
Company  or  any  of  its  subsidiaries,  (ii)  there  are  no  outstanding debt
securities  (iii) there are no outstanding registration statements other than on
Form  S-8  and  (iv)  there  are  no  agreements or arrangements under which the
Company  or  any of its subsidiaries is obligated to register the sale of any of
their  securities  under  the  Securities  Act.

                    (iii)     The  Common  Stock to be issued in accordance with
this  Agreement  and  the  Standby  Equity Distribution Agreement have been duly
authorized  and, when issued and paid for in accordance with this Agreement, the
Standby  Equity  Distribution  Agreement  and  the  certificates/instruments
representing  such  Common  Stock  will  be  validly  issued,  fully-paid  and
non-assessable.

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                    (iv)     Except  as  set  forth  in  the  SEC Documents, the
Company  has  good  and  marketable  title to its properties and material assets
owned by it, free and clear of any pledge, lien, security interest, encumbrance,
claim  or equitable interest other than such as are not material to the business
of  the  Company.  Any  real  property  and  facilities  held under lease by the
Company  and  its  subsidiaries  are  held  by  them under valid, subsisting and
enforceable leases with such exceptions as are not material and do not interfere
with  the use made and proposed to be made of such property and buildings by the
Company  and  its  subsidiaries.

                    (v)     Except  as  set forth in the SEC Documents, there is
no  action,  suit,  proceeding, inquiry or investigation before or by any court,
public  board,  government  agency, self-regulatory organization or body pending
against  or  affecting  the  Company,  the  Common Stock or any of the Company's
subsidiaries,  wherein  an  unfavorable decision, ruling or finding would have a
Material  Adverse  Effect.

                    (vi)     The  Company  is duly incorporated or organized and
validly  existing  in  the jurisdiction of its incorporation or organization and
has  all  requisite  corporate  power  to own its properties and to carry on its
business  as  now  being conducted.  Each of the Company and its subsidiaries is
duly  qualified  as a foreign corporation to do business and is in good standing
in  every jurisdiction in which the nature of the business conducted by it makes
such  qualification  necessary,  except  to the extent that the failure to be so
qualified or be in good standing would not have a Material Adverse Effect on the
Company  and  its  subsidiaries  taken  as  a  whole.

                    (vii)     Except  as set forth in the SEC Documents, neither
the  Company nor any of its subsidiaries is subject to any charter, corporate or
other  legal  restriction,  or  any  judgment, decree, order, rule or regulation
which in the judgment of the Company's officers has or is expected in the future
to  have  a  Material  Adverse  Effect  on the business, properties, operations,
financial  condition,  results  of operations or prospects of the Company or its
subsidiaries.  Except as set forth in the SEC Documents, neither the Company nor
any  of its subsidiaries is in breach of any contract or agreement which breach,
in the judgment of the Company's officers, has or is expected to have a Material
Adverse  Effect  on  the  business, properties, operations, financial condition,
results of operations or prospects of the Company or its subsidiaries.

                    (viii)     Since  January 1, 2003, the Company has filed all
reports  required  to  be  filed by it with the SEC under the Exchange Act.  The
Company  has  made  available  to  the Placement Agent and the investors and its
representatives  through  the  SEC's  website  at  http://www.sec.gov,  true and
complete  copies  of  the  SEC  Documents.  As of their respective dates, to the
Company's Knowledge the Financial Statements complied as to form in all material
respects  with  applicable  accounting  requirements and the published rules and
regulations  of  the  SEC with respect thereto.  To the Company's Knowledge such
financial  statements  have  been prepared in accordance with generally accepted
accounting principles, consistently applied, during the periods involved (except
(i)  as  may  be  otherwise  indicated in such financial statements or the notes
thereto, or (ii) in the case of unaudited interim statements, to the extent they
may  exclude  footnotes  or  may be condensed or summary statements) and, fairly
present in all material respects the financial position of the Company as of the
dates  thereof  and the results of its operations and cash flows for the periods
then  ended  (subject,  in  the  case  of

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unaudited  statements,  to  normal  year-end  audit  adjustments).  No  other
information provided by or on behalf of the Company to the Investor which is not
included  in the SEC Documents contains any untrue statement of a material fact.

                    (ix)     There are no claims for services in the nature of a
finder's  or origination fee with respect to the sale of the Common Stock or any
other  arrangements,  agreements or understandings that may affect the Placement
Agent's  compensation,  as  determined by the National Association of Securities
Dealers,  Inc.

                    (x)     The  Company  and  its  subsidiaries  own or possess
adequate rights or licenses to use all material trademarks, trade names, service
marks,  service  mark  registrations,  service  names,  patents,  patent rights,
copyrights,  inventions, licenses, approvals, governmental authorizations, trade
secrets  and  rights  necessary  to  conduct  their respective businesses as now
conducted.   Except  as set forth in the Schedule of Exceptions, the Company and
its subsidiaries do not have any Knowledge of any infringement by the Company or
its  subsidiaries  of  trademark,  trade  name  rights,  patents, patent rights,
copyrights,  inventions,  licenses,  service  names, service marks, service mark
registrations,  trade  secret  or  other  similar  rights of others, and, to the
Knowledge  of the Company, there is no claim, action or proceeding being made or
brought  against,  or  to the Company's Knowledge, being threatened against, the
Company  or  its  subsidiaries  regarding trademark, trade name, patents, patent
rights,  invention,  copyright,  license,  service names, service marks, service
mark  registrations, trade secret or other infringement; and the Company and its
subsidiaries  are unaware of any facts or circumstances which might give rise to
any  of  the  foregoing.

                    (xi)     Subject  to  the performance by the Placement Agent
of  its  obligations hereunder and subject to the representations and warranties
of  the  investors  in  the  Offering, the offer and sale of the Securities will
comply, in all material respects with the requirements of Rule 506 of Regulation
D  promulgated  by  the  SEC  pursuant  to the 1933 Act and any other applicable
federal  and  state  laws, rules, regulations and executive orders.  Neither the
Offering  Materials  nor  any  amendment or supplement thereto nor any documents
prepared  by  the  Company  in  connection  with the Offering contain any untrue
statement  of  a material fact or omit to state any material fact required to be
stated  therein  or  necessary  to  make the statements therein, in light of the
circumstances  under  which  they  were  made,  not  misleading.

                    (xii)     Except  as  disclosed  in  the  SEC Documents, the
Company  and  each  of  its subsidiaries has made or filed all federal and state
income  and  all  other  tax  returns,  reports and declarations required by any
jurisdiction  to which it is subject and (unless and only to the extent that the
Company  and  each  of  its  subsidiaries  has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) has paid
all  taxes  and  other governmental assessments and charges that are material in
amount, shown or determined to be due on such returns, reports and declarations,
except  those  being  contested  in  good  faith  and has set aside on its books
provision  reasonably  adequate  for  the  payment  of  all  taxes  for  periods
subsequent  to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing
authority  of any jurisdiction, and the officers of the Company know of no basis
for  any  such  claim.

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                    (xiii)     Except  as set forth in the SEC Documents none of
the officers, directors, or employees of the Company is presently a party to any
transaction with the Company (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for
the  furnishing  of  services to or by, providing for rental of real or personal
property  to  or  from,  or otherwise requiring payments to or from any officer,
director  or such employee or, to the Knowledge of the Company, any corporation,
partnership,  trust  or other entity in which any officer, director, or any such
employee  has  a  substantial  interest  or  is an officer, director, trustee or
partner.

     5.   Certain  Covenants  and  Agreements  of  the  Company.
          -----------------------------------------------------

     The  Company covenants and agrees at its expense and without any expense to
the  Placement  Agent,  as  follows:

          A.     To advise the Placement Agent of any material adverse change in
the  Company's  financial condition, prospects or business or of any development
materially affecting the Company, or rendering untrue or misleading any material
statement in the Offering Materials at the time such statement was made, as soon
as the Company is either informed or becomes aware thereof.

          B.     To  use its commercially reasonable efforts to cause the Common
Stock  issuable  in connection with the Standby Equity Distribution Agreement to
be qualified or registered for sale on terms consistent with those stated in the
Registration  Rights  Agreement  and  under  the  securities  laws  of  such
jurisdictions  as  the  Placement  Agent  shall  reasonably  request.

          C.     Upon  written  request,  to provide and continue to provide the
Placement  Agent copies of all quarterly financial statements and audited annual
financial  statements  prepared  by  or  on behalf of the Company, other reports
prepared  by or on behalf of the Company for public disclosure and all documents
delivered  to  the  Company's  stockholders.

          D.     To  comply  with  the  terms  of  the  Offering  Materials.

          E.     Upon the effectiveness of a registration statement covering the
Securities,  the  Company  shall  include  the  Placement  Agent  as  a  selling
shareholder  on  any  opinion  provided  to  the  Transfer  Agent.

          F.     At  or  prior  to  the  Closing,  the  Company  shall have been
furnished  such  documents and certificates as it may reasonably require for the
purpose  of  enabling  the  Placement  Agent  to review or pass upon the matters
referred  to  in  this  Agreement  and  the  Offering  Materials, or in order to
evidence  the  accuracy,  completeness  or  satisfaction  of  any  of  the
representations,  warranties  or  conditions  herein  contained.

     6.   Indemnification  and  Limitation  of  Liability.
          -----------------------------------------------

          A.     In  consideration  of  the  Placement  Agent's  execution  and
delivery  of  this  Agreement,  the Company shall defend, protect, indemnify and
hold harmless the Placement Agent, and all of its officers, directors, partners,
employees  and  agents  (including,  without  limitation,  those  retained  in
connection  with  the  transactions  contemplated  by  this  Agreement)

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(collectively,  the  "Placement Agent Indemnitees") from and against any and all
                      ---------------------------
actions,  causes  of  action,  suits,  claims,  losses,  costs, penalties, fees,
liabilities  and  damages, and expenses in connection therewith (irrespective of
whether  any  such Placement Agent Indemnitee is a party to the action for which
indemnification  hereunder  is sought), and including reasonable attorneys' fees
and  disbursements  (the  "Indemnified  Liabilities"), incurred by the Placement
                           ------------------------
Agent  Indemnitees or any of them as a result of, or arising out of, or relating
to  (a)  any material misrepresentation or breach of any material representation
or  warranty made by the Company in this Agreement or the Transaction Documents,
(b)  any material breach of any covenant, agreement or obligation of the Company
contained  in the this Agreement and Transaction Documents other than any breach
resulting  from  any  action  or  inaction  on  the  part of any Placement Agent
Indemnitee,  or  (c)  any cause of action, suit or claim brought or made against
such  Placement Agent Indemnitee not arising out of any action or inaction of an
Placement  Agent Indemnitee, and arising out of or resulting from the execution,
delivery,  performance  or enforcement of this Agreement by any of the Placement
Agent  Indemnitees;  provided,  that  (i)  to  the  extent  that  the  foregoing
undertaking  by  the  Company  may  be unenforceable for any reason, the Company
shall  make  the maximum contribution to the payment and satisfaction of each of
the Indemnified Liabilities, which is permissible under applicable law, and (ii)
the  Company's  liability  for  any and all such indemnification or contribution
obligations  shall  not  exceed the compensation received by the Placement Agent
pursuant  to  Section  2  hereof.

          B.     In  consideration  of  the  Company's execution and delivery of
this  Agreement  and  the Transaction Documents to which the Company is a party,
the  Placement  Agent  shall  defend,  protect,  indemnify and hold harmless the
Company  and  all of its officers, directors, shareholders, employees and agents
(including,  without  limitation,  those  retained  in  connection  with  the
transactions  contemplated  by  this  Agreement)  (collectively,  the  "Company
                                                                        -------
Indemnitees")  from  and against any and all Indemnified Liabilities incurred by
-----------
the  Company  Indemnitees  or  any of them as a result of, or arising out of, or
relating  to  (a)  any  misrepresentation  or  breach  of  any representation or
warranty  made  by  the Placement Agent in this Agreement, (b) any breach of any
covenant,  agreement  or  obligation  of  the  Placement Agent contained in this
Agreement,  or  (c)  any  cause of action, suit or claim brought or made against
such  Company Indemnitee based on omissions or misrepresentations made or caused
by  any  Placement  Agent  Indemnitee  or due to a breach by any Placement Agent
Indemnitee  and  arising  out  of  or  resulting  from  the execution, delivery,
performance  or enforcement of the Transaction Documents to which the Company is
a  party  (including  without  limitation  any  false  or misleading information
provided  to  the  Company  in  writing  by  any  Placement  Agent  Indemnitee
specifically  for  inclusion in the Offering Materials).  To the extent that the
foregoing  undertaking  by  the  Placement  Agent  may  be unenforceable for any
reason,  the  Placement Agent shall make the maximum contribution to the payment
and  satisfaction  of  each of the Indemnified Liabilities, which is permissible
under  applicable  law.

          C.     The  obligations of the parties to indemnify under this Section
6  shall  survive  termination.

          D.     Notwithstanding  anything to the contrary contained herein, the
aggregate  liability  of  the  Placement  Agent  and  each  officer,  director,
shareholder,  employee  or representative of the Placement Agent and each person
controlling,  controlled  by  or  under  common control with the Placement Agent
within  the  meaning  of  Section  15  of  the  1933  Act  or

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<PAGE>
Section  20  of  the  1934 Act or the Rules and Regulations shall not exceed the
compensation received by the Placement Agent pursuant to Section 2 hereof.  This
limitation  of  liability shall apply regardless of the cause of action, whether
contract,  tort (including, without limitation, negligence) or breach of statute
or  any  other  legal  or  equitable  obligation.

     7.   Payment  of  Expenses.
          ---------------------

     The  Company  hereby  agrees to bear all of the expenses in connection with
the Offering, including, but not limited to the following: filing fees, printing
and duplicating costs, advertisements, postage and mailing expenses with respect
to  the  transmission  of Offering Materials, registrar and transfer agent fees,
escrow  agent  fees and expenses, fees of the Company's counsel and accountants,
issue  and  transfer  taxes,  if  any.

     8.     Termination.
            -----------

     This  Agreement  shall  terminate  upon  the  expiration  of the Commitment
Period.

     9.     Miscellaneous.
            -------------

          A.     This  Agreement  may be executed in any number of counterparts,
each  of  which shall be deemed to be an original, but all which shall be deemed
to  be  one  and  the  same  instrument.

          B.     Any notice required or permitted to be given hereunder shall be
given  in  writing  and  shall  be deemed effective when deposited in the United
States  mail, postage prepaid, or when received if personally delivered or faxed
(upon  confirmation  of  receipt  received  by  the sending party), addressed as
follows  to  such other address of which written notice is given to the others):

If to Placement Agent, to:         Monitor Capital, Inc.
                                   9171 Towne Centre Drive, Suite 465
                                   San Diego, CA 92122
                                   Attention:   Hsiao-Wen Kao
                                   Telephone:   (858) 546-8007
                                   Facsimile:   (858) 546-8756

If to the Company, to:             Zann Corp.
                                   1549 N. Leroy Street, Suite D-200
                                   Fenton, MI 48430
                                   Attention:   Robert Simpson
                                   Telephone:   (810) 714-2978
                                   Facsimile:   (810) 714-3524

                                        8
<PAGE>
With a copy to:                    Wilson Sonsini Goodrich & Rosati
                                   12235 El Camino Real, Suite 200
                                   San Diego, CA 92130
                                   Martin Waters, Esq.
                                   Telephone:   858-350-2300
                                   Facsimile:   858-350-2399

          C.     This  Agreement  shall  be  governed  by  and  construed in all
respects  under  the  laws  of the State of New Jersey, without reference to its
conflict  of  laws  rules  or  principles.  Any  suit,  action,  proceeding  or
litigation  arising  out  of  or relating to this Agreement shall be brought and
prosecuted  in such federal or state court or courts located within the State of
New  Jersey  as  provided  by  law.  The  parties  hereby  irrevocably  and
unconditionally consent to the jurisdiction of each such court or courts located
within  the  State  of  New  Jersey  and  to service of process by registered or
certified  mail,  return  receipt  requested, or by any other manner provided by
applicable  law,  and  hereby irrevocably and unconditionally waive any right to
claim  that  any  suit,  action,  proceeding or litigation so commenced has been
commenced  in  an  inconvenient  forum.

          D.     This  Agreement  and  the  other  agreements  referenced herein
contain  the  entire  understanding  between  the  parties hereto and may not be
modified  or  amended  except by a writing duly signed by the party against whom
enforcement  of  the  modification  or  amendment  is  sought.

          E.     If  any provision of this Agreement shall be held to be invalid
or unenforceable, such invalidity or unenforceability shall not affect any other
provision  of  this  Agreement.

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<PAGE>
     IN  WITNESS  WHEREOF, the parties hereto have executed this Placement Agent
Agreement  as  of  the  date  first  written  above.

                                        ZANN CORP.

                                        By:
                                           -------------------------------------
                                        Name:   Robert Simpson
                                        Title:  President

                                        MONITOR CAPITAL, INC.

                                        By:
                                           -------------------------------------
                                        Name:   Hsiao-Wen Kao
                                        Title:  President

                                       10SUBSCRIPTION AGREEMENT

      THIS  SUBSCRIPTION  AGREEMENT (this  "Agreement"),  dated as of _________,
2005, by and among Canwest Petroleum  Corporation,  a Colorado  corporation (the
"Company"),  and the subscribers identified on the signature page hereto (each a
"Subscriber" and collectively "Subscribers").

      WHEREAS, the Company and the Subscribers are executing and delivering this
Agreement in reliance upon an exemption from securities registration afforded by
the  provisions of Section 4(2),  Section 4(6) and/or  Regulation D ("Regulation
D") as promulgated by the United States Securities and Exchange  Commission (the
"Commission") under the Securities Act of 1933, as amended (the "1933 Act").

      WHEREAS,  the  parties  desire  that,  upon the terms and  subject  to the
conditions   contained  herein,   the  Company  shall  issue  and  sell  to  the
Subscribers,  as provided herein, and the Subscribers,  in the aggregate,  shall
purchase up to Five  Million  Two Hundred  Thousand  Dollars  ($5,200,000)  (the
"Purchase Price") of principal amount of 8% secured convertible promissory notes
of the Company  ("Note" or "Notes"),  in the form attached  hereto as Exhibit A.
The  offer,  purchase  and  sale of the  Notes  pursuant  to the  terms  of this
Agreement are referred to as the "Offering."  The Notes will be guaranteed,  and
the guarantee on the Notes will be secured by certain property,  as described in
the form of  Security  Agreement  attached  hereto as  Exhibit  B. The Notes are
convertible  into shares of the  Company's  common  stock,  $.001 par value (the
"Common  Stock") at a per share  conversion  price set forth in the Note.  Share
purchase  warrants (the  "Warrants") in the form attached hereto as Exhibit C to
purchase  shares  of  Common  Stock  (the  "Warrant  Shares")  will be issued in
connection with the Notes, as described below. The Notes, shares of Common Stock
issuable  upon  conversion  of the Notes (the  "Shares"),  the  Warrants and the
Warrant Shares are collectively referred to herein as the "Securities"; and

      WHEREAS,  the  aggregate  proceeds  of the sale of the Notes  contemplated
hereby shall be held in escrow  pursuant to the terms of an Escrow  Agreement to
be executed by the parties  substantially in the form attached hereto as Exhibit
D (the  "Escrow  Agreement")  by and among the  Company,  Township  (as  defined
below),  Subscribers  and  Burns,  Figa  &  Will,  P.C.  (the  "Escrow  Agent").
Subscribers must sign the Escrow Agreement and wire funds to:

      Colorado Business Bank
      Routing Number (ABA Number) 102003206

      Account Name: Burns, Figa & Will, P.C. COLTAF Trust Account
      Account Number: 3163601 (Please note- no Swift Code necessary)

      NOW,  THEREFORE,  in  consideration  of the  mutual  covenants  and  other
agreements  contained in this Agreement,  the Company and the Subscribers hereby
agree as follows:

            1. Closing. The consummation of the transactions contemplated herein
shall take place at the offices of Burns,  Figa & Will,  P.C.,  6400 S. Fiddlers
Green  Circle,  Suite 1030,  Englewood,  CO 80111 upon the  satisfaction  of all
conditions to Closing set forth in this Agreement  ("Closing Date").  Subject to
the satisfaction or waiver of the terms and conditions of this Agreement, on the
Closing Date, each Subscriber  shall purchase and the Company shall sell to each
Subscriber a Note in the  principal  amount  designated  on the  signature  page
hereto for the consideration set forth on the signature page hereto.

            2. Use of Proceeds.  The proceeds of this  Offering  will be used by
the Company to attempt to purchase through its wholly owned subsidiary, Township
Petroleum Corporation ("Township"),  certain oil sands rights (the "Rights"), as
itemized and as described on Exhibit E.

                                       1
(Subscription Agreement)
<PAGE>

            3. Description of Refund Amount under Notes/Bonus Shares/Issuance of
Warrants.

                  (a) If  Township  is not  successful  on  any of its  bids  to
acquire Rights,  then any funds which are not used for the acquisition of Rights
or for the payment of fees in connection  with the bidding  process (the "Refund
Amount"),  will be returned to the Escrow  Agent as  described in Exhibit D. The
Escrow  Agent,  pursuant  to the Escrow  Agreement,  will pay the Refund  Amount
proportionately to the Subscribers. Such Refund Amount will be deducted from the
Principal  Sum owing  under the Notes and no  interest  shall be  payable on the
Refund Amount which is deducted from the Principal Sum pursuant to the Notes. In
lieu of interest on the Refund  Amount which is deducted  from the Principal Sum
the Company will issue to a Subscriber,  within 10 days of Subscriber's  receipt
of the Refund Amount,  10% of the Refund Amount  allocable to Notes held by each
such Subscriber,  payable in shares of the Company's common stock at a price per
share of $0.40 (the "Bonus Shares").

                  (b) Within 10 days of the sale of the Rights to Township,  the
Company will issue and deliver the Warrants to the Subscribers. One Warrant will
be issued for each $0.40 of "Adjusted  Purchase Price" outstanding on the Notes.
"Adjusted  Purchase  Price"  means all  remaining  principal  on the Notes after
allocation of all Refund Amounts.  Each Warrant shall be exercisable to purchase
one  Warrant  Share at an  exercise  price of $0.55,  subject  to  reduction  as
described in the  Warrant.  The Warrants  shall be  exercisable  until two years
after the issue date.

                  (c)  Subscribers  should  be aware  that,  until  the  Company
increases its authorized capital,  the Company is not able to reserve sufficient
shares for the  conversion  of the Notes and the exercise of the  Warrants.  The
Company has called for a shareholders  meeting to be held September 19, 2005, at
which shareholders will vote on a proposal to increase its authorized capital to
250,000,000  shares of Common Stock. The preliminary proxy statement  describing
the proposal was filed with the Securities and Exchange  Commission on August 3,
2005. Although management and affiliates of the Company have indicated that they
will be voting in favor of the proposals in the preliminary  proxy statement and
the Company believes the proposal will be approved by shareholders,  it does not
have proxies in hand to ensure such approval. The Company has been informed that
brokerage houses hold  discretionary  voting rights as to a substantial block of
shares  held by them.  The  Company  also has been  advised  that an increase in
authorized  capital is  generally an ordinary  resolution  by the New York Stock
Exchange  (the  governing  authority for the  brokerage  houses),  and it is the
policy of the  brokerage  houses to use  discretionary  voting rights to vote in
favor  of  the  resolutions  proposed  by  management,   unless  the  beneficial
shareholder directs them otherwise.

            4.  Subscriber's  Representations  and  Warranties.  Each Subscriber
hereby  represents  and  warrants to and agrees with the Company only as to such
Subscriber that:

                  (a)  Organization  and  Standing  of the  Subscribers.  If the
Subscriber is an entity, such Subscriber is a corporation,  partnership or other
entity duly  incorporated  or organized,  validly  existing and in good standing
under the laws of the jurisdiction of its incorporation or organization.

                  (b) Authorization and Power. Each Subscriber has the requisite
power and authority to enter into and perform this Agreement and to purchase the
Notes and  Warrants  being sold to it  hereunder.  The  execution,  delivery and
performance of this Agreement by such  Subscriber and the  consummation by it of
the  transactions  contemplated  hereby and thereby have been duly authorized by
all  necessary  corporate  or  partnership  action,  and no  further  consent or
authorization  of such  Subscriber  or its  Board  of  Directors,  stockholders,
partners, members, as the case may be, is required. This Agreement has been duly
authorized,  executed and  delivered by  Subscriber  and  constitutes,  or shall
constitute  when executed and delivered,  a valid and binding  obligation of the
Subscriber  enforceable  against the  Subscriber  in  accordance  with the terms
thereof.

                                       2
(Subscription Agreement)
<PAGE>

                  (c) No Conflicts.  The execution,  delivery and performance of
this  Agreement  and  the   consummation  by  Subscriber  of  the   transactions
contemplated  hereby  or  relating  hereto  do not and will not (i)  result in a
violation   of  such   Subscriber's   charter   documents  or  bylaws  or  other
organizational  documents or (ii) conflict  with, or constitute a default (or an
event which with notice or lapse of time or both would become a default)  under,
or  give to  others  any  rights  of  termination,  amendment,  acceleration  or
cancellation  of any  agreement,  indenture or instrument or obligation to which
such  Subscriber is a party or by which its  properties or assets are bound,  or
result in a violation of any law, rule, or regulation, or any order, judgment or
decree of any court or governmental  agency applicable to such Subscriber or its
properties  (except for such  conflicts,  defaults and  violations as would not,
individually  or in the  aggregate,  have a  material  adverse  effect  on  such
Subscriber).   Such   Subscriber   is  not   required  to  obtain  any  consent,
authorization or order of, or make any filing or registration with, any court or
governmental  agency in order for it to  execute,  deliver or perform any of its
obligations  under  this  Agreement  or to  purchase  the Notes or  acquire  the
Warrants in accordance with the terms hereof,  provided that for purposes of the
representation  made in this sentence,  such  Subscriber is assuming and relying
upon the accuracy of the relevant  representations and agreements of the Company
herein.

                  (d) Information on Company.  The Subscriber has been furnished
with or has had access at the EDGAR  Website of the  Commission to the Company's
Form  10-KSB for the year  ended  April 30,  2005 as filed with the  Commission,
together with all subsequently  filed Forms 10-QSB,  8-K, and other filings made
with the  Commission  available at the EDGAR  website  (hereinafter  referred to
collectively  as the  "Reports").  The  Subscriber has had an opportunity to ask
questions and receive answers from  representatives of the Company. In addition,
the Subscriber  has received in writing from the Company such other  information
concerning  its  operations,  financial  condition  and  other  matters  as  the
Subscriber has requested in writing (such other information is collectively, the
"Other Written  Information"),  and considered all factors the Subscriber  deems
material in deciding on the advisability of investing in the Securities.

                  (e) Information on Subscriber.  The Subscriber is, and will be
at the time of the  conversion  of the Notes and  exercise of the  Warrants,  an
"accredited  investor",  as such term is defined in Regulation D promulgated  by
the Commission  under the 1933 Act, is  experienced in investments  and business
matters,  has  made  investments  of a  speculative  nature  and  has  purchased
securities of United States  publicly-owned  companies in private  placements in
the past and, with its  representatives,  has such  knowledge and  experience in
financial, tax and other business matters as to enable the Subscriber to utilize
the  information  made available by the Company to evaluate the merits and risks
of and to make an informed  investment  decision  with  respect to the  proposed
purchase,  which  represents a speculative  investment.  The  Subscriber has the
authority and is duly and legally  qualified to purchase and own the Securities.
The  Subscriber  is able to bear the risk of such  investment  for an indefinite
period and to afford a complete loss thereof.  The  information set forth on the
signature page hereto  regarding the  Subscriber is accurate.  The Subscriber is
not  required  to be  registered  as a  broker-dealer  under  Section  15 of the
Securities  Exchange Act of 1934, as amended (the "1934 Act") and the Subscriber
is not a broker-dealer.

                  (f) Purchase of Notes and Warrants.  On the Closing Date,  the
Subscriber will purchase the Notes and Warrants as principal for its own account
for  investment  only and not with a view  toward,  or for resale in  connection
with, the public sale or any distribution thereof.

                                       3
(Subscription Agreement)
<PAGE>

                  (g) Compliance with Securities Act. The Subscriber understands
and agrees that the Securities  have not been  registered  under the 1933 Act or
any  applicable  state  securities  laws,  by  reason  of  their  issuance  in a
transaction that does not require registration under the 1933 Act (based in part
on the accuracy of the  representations  and warranties of Subscriber  contained
herein),  and that such Securities must be held indefinitely unless a subsequent
disposition is registered  under the 1933 Act or any applicable state securities
laws or is exempt from such registration.

                  (h) Shares  Legend.  The Shares and the Warrant  Shares  shall
bear the following or similar legend:

            "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
            UNDER THE SECURITIES  ACT OF 1933, AS AMENDED.  THESE SHARES MAY NOT
            BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
            AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT OR ANY
            APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL  REASONABLY
            SATISFACTORY TO CANWEST PETROLEUM CORPORATION THAT SUCH REGISTRATION
            IS NOT REQUIRED."

                  (i) Warrants Legend. The Warrants shall bear the following

or similar legend:

            "THIS WARRANT AND THE COMMON  SHARES  ISSUABLE UPON EXERCISE OF THIS
            WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933,
            AS  AMENDED.  THIS  WARRANT  AND THE  COMMON  SHARES  ISSUABLE  UPON
            EXERCISE OF THIS WARRANT MAY NOT BE SOLD,  OFFERED FOR SALE, PLEDGED
            OR  HYPOTHECATED  IN  THE  ABSENCE  OF  AN  EFFECTIVE   REGISTRATION
            STATEMENT AS TO THIS WARRANT UNDER SAID ACT OR ANY APPLICABLE  STATE
            SECURITIES LAW OR AN OPINION OF COUNSEL  REASONABLY  SATISFACTORY TO
            CANWEST   PETROLEUM   CORPORATION  THAT  SUCH  REGISTRATION  IS  NOT
            REQUIRED."

                  (j) Note Legend. The Note shall bear the following legend:

            "THIS NOTE AND THE COMMON SHARES  ISSUABLE  UPON  CONVERSION OF THIS
            NOTE HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
            AMENDED. THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF
            THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
            IN THE ABSENCE OF AN  EFFECTIVE  REGISTRATION  STATEMENT  AS TO THIS
            NOTE UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
            TO  CANWEST  PETROLEUM  CORPORATION  THAT SUCH  REGISTRATION  IS NOT
            REQUIRED."

                                       4
(Subscription Agreement)
<PAGE>

                  (k)  Communication  of Offer. The offer to sell the Securities
was directly  communicated to the Subscriber by the Company.  At no time was the
Subscriber  presented  with or solicited  by any leaflet,  newspaper or magazine
article,  radio  or  television  advertisement,  or any  other  form of  general
advertising  or solicited or invited to attend a promotional  meeting  otherwise
than in connection and concurrently with such communicated offer.

                  (l)  Authority;   Enforceability.  This  Agreement  and  other
agreements delivered together with this Agreement or in connection herewith have
been duly authorized, executed and delivered by the Subscriber and are valid and
binding  agreements  enforceable  in  accordance  with their  terms,  subject to
bankruptcy,  insolvency,  fraudulent  transfer,  reorganization,  moratorium and
similar laws of general applicability relating to or affecting creditors' rights
generally and to general principles of equity; and Subscriber has full corporate
power and  authority  necessary  to enter  into this  Agreement  and such  other
agreements  and to  perform  its  obligations  hereunder  and  under  all  other
agreements entered into by the Subscriber relating hereto.

                  (m) Restricted  Securities.  Subscriber  understands  that the
Securities have not been registered  under the 1933 Act and such Subscriber will
not sell, offer to sell, assign,  pledge,  hypothecate or otherwise transfer any
of the Securities unless pursuant to an effective  registration  statement under
the  1933  Act,  or  unless  an  exemption  from   registration   is  available.
Notwithstanding  anything to the  contrary  contained  in this  Agreement,  such
Subscriber may transfer (without restriction and without the need for an opinion
of counsel) the Securities to its  Affiliates  (as defined below)  provided that
each such  Affiliate is an  "accredited  investor"  under  Regulation D and such
Affiliate agrees to be bound by the terms and conditions of this Agreement.  For
the purposes of this Agreement, an "Affiliate" of any person or entity means any
other person or entity  directly or  indirectly  controlling,  controlled  by or
under direct or indirect  common  control with such person or entity.  Affiliate
includes  each  subsidiary  of the  Company.  For  purposes of this  definition,
"control"  means the power to direct the  management and policies of such person
or firm,  directly  or  indirectly,  whether  through  the  ownership  of voting
securities, by contract or otherwise.

                  (n) No Governmental  Review. Each Subscriber  understands that
no United  States  federal or state  agency or any other  governmental  or state
agency has passed on or made recommendations or endorsement of the Securities or
the  suitability of the  investment in the Securities nor have such  authorities
passed upon or endorsed the merits of the offering of the Securities.

                  (o) Correctness of Representations. Each Subscriber represents
as to such Subscriber that the foregoing representations and warranties are true
and correct as of the date hereof and,  unless a Subscriber  otherwise  notifies
the  Company  prior to the  Closing  Date  shall be true and  correct  as of the
Closing Date.

                  (p) Survival.  The foregoing  representations  and  warranties
shall survive the Closing Date for a period of three years.

            5. Company  Representations  and Warranties.  The Company represents
and warrants to and agrees with each Subscriber that:

                  (a)  Due   Incorporation.   The   Company   and  each  of  its
Subsidiaries  is a corporation or other entity duly  incorporated  or organized,
validly  existing and in good standing under the laws of the jurisdiction of its
incorporation or organization  and has the requisite  corporate power to own its
properties and to carry on its business as presently conducted.  The Company and
each of its  Subsidiaries  is duly  qualified  as a  foreign  corporation  to do
business and is in good  standing in each  jurisdiction  where the nature of the
business conducted or property owned by it makes such  qualification  necessary,
other than those jurisdictions in which the failure to so qualify would not have
a Material Adverse Effect.  For purposes of this Agreement,  a "Material Adverse
Effect" shall mean a material adverse effect on the financial condition, results
of operations,  properties or business of the Company and its Subsidiaries taken
as a whole. For purposes of this Agreement,  "Subsidiary" means, with respect to
any entity at any date, any corporation, limited or general partnership, limited
liability company, trust, estate,  association,  joint venture or other business
entity of which more than 50% of (i) the  outstanding  capital  stock having (in
the absence of  contingencies)  ordinary voting power to elect a majority of the
board of directors or other managing body of such entity,  (ii) in the case of a
partnership or limited liability company, the interest in the capital or profits
of such  partnership  or  limited  liability  company  or (iii) in the case of a
trust,  estate,  association,  joint  venture or other  entity,  the  beneficial
interest in such trust, estate,  association or other entity business is, at the
time of determination, owned or controlled directly or indirectly through one or
more intermediaries,  by such entity. All the Company's  Subsidiaries are listed
in the Reports.

                                       5
(Subscription Agreement)
<PAGE>

                  (b) Outstanding  Stock.  All issued and outstanding  shares of
capital stock of the Company has been duly authorized and validly issued and are
fully paid and nonassessable.

                  (c) Authority;  Enforceability.  This Agreement, the Note, the
Warrants and the Escrow Agreement,  and any other agreements  delivered together
with  this  Agreement  or  in  connection  herewith  (collectively  "Transaction
Documents") have been duly authorized, executed and delivered by the Company and
are valid and binding  agreements  enforceable  in accordance  with their terms,
subject  to  bankruptcy,   insolvency,   fraudulent  transfer,   reorganization,
moratorium  and similar laws of general  applicability  relating to or affecting
creditors' rights generally and to general principles of equity. The Company has
full  corporate  power and  authority  necessary  to enter into and  deliver the
Transaction Documents and to perform its obligations thereunder.

                  (d) Additional Issuances.  There are no outstanding agreements
or preemptive or similar rights  affecting the Company's  common stock or equity
and no  outstanding  rights,  warrants  or options to  acquire,  or  instruments
convertible  into or  exchangeable  for, or  agreements or  understandings  with
respect to the sale or issuance  of any shares of common  stock or equity of the
Company or other  equity  interest  in any of the  Subsidiaries  of the  Company
except as described on Schedule 5(d).

                  (e) Consents. No consent, approval,  authorization or order of
any court,  governmental  agency or body or arbitrator having  jurisdiction over
the Company, or any of its Affiliates, the OTC Bulletin Board ("Bulletin Board")
nor the Company's  shareholders  is required for the execution by the Company of
the  Transaction  Documents and compliance and performance by the Company of its
obligations under the Transaction Documents,  including, without limitation, the
issuance and sale of the Securities.

                  (f) No Violation or Conflict. Assuming the representations and
warranties  of the  Subscribers  in Section 4 are true and correct,  neither the
issuance  and  sale of the  Securities  nor  the  performance  of the  Company's
obligations  under this Agreement and all other  agreements  entered into by the
Company relating thereto by the Company will:

                        (i) violate,  conflict  with,  result in a breach of, or
constitute  a default  (or an event which with the giving of notice or the lapse
of time or both would be reasonably  likely to  constitute a default)  under (A)
the articles or certificate of incorporation,  charter or bylaws of the Company,
(B) to the Company's knowledge, any decree, judgment,  order, law, treaty, rule,
regulation or determination applicable to the Company of any court, governmental
agency or body, or arbitrator  having  jurisdiction over the Company or over the
properties or assets of the Company or any of its  Affiliates,  (C) the terms of
any  bond,  debenture,  note  or any  other  evidence  of  indebtedness,  or any
agreement, stock option or other similar plan, indenture,  lease, mortgage, deed
of trust or other  instrument to which the Company or any of its Affiliates is a
party,  by which the Company or any of its Affiliates is bound,  or to which any
of the properties of the Company or any of its Affiliates is subject, or (D) the
terms of any  "lock-up"  or similar  provision  of any  underwriting  or similar
agreement to which the Company,  or any of its  Affiliates is a party except the
violation,  conflict,  breach,  or  default  of which  would not have a Material
Adverse Effect; or

                                       6
(Subscription Agreement)
<PAGE>

                        (ii) result in the creation or  imposition  of any lien,
charge or encumbrance upon the Securities or any of the assets of the Company or
any of its Affiliates except as described herein; or

                        (iii)  result  in the  activation  of any  anti-dilution
rights or a reset or repricing of any debt or security  instrument  of any other
creditor or equity holder of the Company,  nor result in the acceleration of the
due date of any obligation of the Company.

                  (g) The Securities. The Securities upon issuance:

                        (i) are,  or will be,  free  and  clear of any  security
interests,  liens,  claims or other  encumbrances,  subject to restrictions upon
transfer under the 1933 Act and any applicable state securities laws;

                        (ii) have been, or will be, duly and validly  authorized
and on the date of issuance of the Shares and upon exercise of the Warrants, the
Shares  and  Warrant  Shares  will be duly and  validly  issued,  fully paid and
nonassessable  (after the  Company's  increase  in  authorized  capital  becomes
effective) or if registered  pursuant to the 1933 Act, and resold pursuant to an
effective  registration  statement  and  prospectus  delivery  requirements  are
satisfied, will be free trading and unrestricted);

                        (iii) will not have been issued or sold in  violation of
any  preemptive or other similar  rights of the holders of any securities of the
Company;

                        (iv) will not subject  the  holders  thereof to personal
liability by reason of being such holders; and

                        (v)  assuming  the  representations  warranties  of  the
Subscribers  as set forth in  Section 4 hereof  are true and  correct,  will not
result in a violation of Section 5 under the 1933 Act.

                  (h) Litigation.  There is no pending or, to the best knowledge
of the Company,  threatened action, suit, proceeding or investigation before any
court,  governmental  agency or body, or arbitrator having jurisdiction over the
Company, or any of its Affiliates that would affect the execution by the Company
or the  performance  by the  Company of its  obligations  under the  Transaction
Documents.  Except as disclosed in the Reports or in the schedules hereto, there
is no pending or, to the best knowledge of the Company,  basis for or threatened
action, suit, proceeding or investigation before any court,  governmental agency
or body,  or  arbitrator  having  jurisdiction  over the Company,  or any of its
Affiliates  which  litigation  if  adversely  determined  would  have a Material
Adverse Effect.

                  (i) Reporting Company. The Company is a publicly-held  company
subject to reporting  obligations pursuant to Section 13 of the 1934 Act and has
a class of common shares  registered  pursuant to Section 12(g) of the 1934 Act.
Pursuant to the  provisions  of the 1934 Act,  the Company has filed all reports
and other materials  required to be filed thereunder with the Commission  during
the preceding twelve months.

                                       7
(Subscription Agreement)
<PAGE>

                  (j) No Market  Manipulation.  The Company  and its  Affiliates
have not taken, and will not take,  directly or indirectly,  any action designed
to, or that might reasonably be expected to, cause or result in stabilization or
manipulation  of the price of the Common Stock to facilitate  the sale or resale
of the  Securities or affect the price at which the  Securities may be issued or
resold.

                  (k) Information  Concerning  Company.  The Reports contain all
material  information  relating to the Company and its  operations and financial
condition  as of their  respective  dates  which  information  is required to be
disclosed therein.  Since the date of the financial  statements  included in the
Reports,  and except as  modified  in the Other  Written  Information  or in the
Schedules  hereto,  there has been no  Material  Adverse  Event  relating to the
Company's business, financial condition or affairs not disclosed in the Reports.
The Reports do not contain any untrue  statement  of a material  fact or omit to
state a material  fact  required to be stated  therein or  necessary to make the
statements therein not misleading in light of the circumstances when made.

                  (l)  Stop  Transfer.  The  Company  will  not  issue  any stop
transfer  order or other order  impeding the sale,  resale or delivery of any of
the  Securities,  except as may be required by any  applicable  federal or state
securities laws and unless  contemporaneous  notice of such instruction is given
to the Subscriber.

                  (m) Defaults.  The Company is not in violation of its articles
of  incorporation  or bylaws.  The  Company  is (i) not in  default  under or in
violation of any other  material  agreement or instrument to which it is a party
or by which it or any of its properties are bound or affected,  which default or
violation would have a Material Adverse Effect, (ii) not in default with respect
to any order of any  court,  arbitrator  or  governmental  body or subject to or
party to any order of any court or  governmental  authority  arising  out of any
action, suit or proceeding under any statute or other law respecting  antitrust,
monopoly, restraint of trade, unfair competition or similar matters, or (iii) to
the Company's  knowledge not in violation of any statute,  rule or regulation of
any governmental authority which violation would have a Material Adverse Effect.

                  (n) No General  Solicitation.  Neither the Company, nor any of
its Affiliates,  nor to its knowledge, any person acting on its or their behalf,
has engaged in any form of general  solicitation or general  advertising (within
the meaning of Regulation D under the 1933 Act) in connection  with the offer or
sale of the Securities.

                  (o) Listing. The Common Stock is quoted on the Bulletin Board.
The Company has not received any oral or written notice that the Common Stock is
not eligible nor will become  ineligible for quotation on the Bulletin Board nor
that the Common Stock does not meet all  requirements  for the  continuation  of
such quotation and the Company  satisfies all the requirements for the continued
quotation of the Common Stock on the Bulletin Board.

                  (p) No Undisclosed Liabilities. The Company has no liabilities
or obligations which are material,  individually or in the aggregate,  which are
not  disclosed in the Reports and Other  Written  Information,  other than those
incurred in the ordinary course of the Company's businesses since April 30, 2005
and which,  individually  or in the aggregate,  would  reasonably be expected to
have a Material Adverse Effect.

                                       8
(Subscription Agreement)
<PAGE>

                  (q)  Capitalization.  The authorized and  outstanding  capital
stock of the Company as of the date of this  Agreement and the Closing Date (not
including the Securities) are set forth on Schedule 5(d). Except as set forth on
Schedule  5(d),  there are no  options,  warrants,  or rights to  subscribe  to,
securities, rights or obligations convertible into or exchangeable for or giving
any right to subscribe  for any shares of capital  stock of the Company.  All of
the outstanding shares of Common Stock of the Company have been duly and validly
authorized and issued and are fully paid and nonassessable.

                  (r) Dilution.  The Company's  executive officers and directors
understand the nature of the Securities being sold hereby and recognize that the
issuance of the Securities  will have a potential  dilutive effect on the equity
holdings of other holders of the Company's equity or rights to receive equity of
the Company.  The board of directors of the Company has  concluded,  in its good
faith  business  judgment  that the  issuance of the  Securities  is in the best
interests  of the  Company.  The  Company  specifically  acknowledges  that  its
obligation  to issue the Shares upon  conversion  of the Notes,  and the Warrant
Shares upon exercise of the Warrants is binding upon the Company and enforceable
regardless of the dilution such issuance may have on the ownership  interests of
other  shareholders of the Company or parties  entitled to receive equity of the
Company.

                  (s)  Correctness of  Representations.  The Company  represents
that the foregoing representations and warranties are true and correct as of the
date hereof in all material respects, and, unless the Company otherwise notifies
the  Subscribers  prior to the  Closing  Date,  shall be true and correct in all
material respects as of the Closing Date.

                  (t) Survival.  The foregoing  representations  and  warranties
shall survive the Closing Date for a period of three years.

            6.  Regulation D Offering.  The offer and issuance of the Securities
to the Subscribers is being made pursuant to the exemption from the registration
provisions  of the 1933 Act afforded by Section 4(2) or Section 4(6) of the 1933
Act and/or Rule 506 of Regulation D promulgated thereunder.

            7.1. Conversion of Note.

                  (a) Upon the conversion of a Note or part thereof, the Company
shall, at its own cost and expense, take all necessary action to assure that the
Company's  transfer  agent  shall  issue  stock  certificates  in  the  name  of
Subscriber  (or its nominee) or such other  persons as  designated by Subscriber
and in such denominations to be specified at conversion  representing the number
of shares of Common Stock issuable upon such conversion.

                  (b)  Subscriber  will give notice of its  decision to exercise
its right to convert the Note, interest, any sum due to the Subscriber under the
Transaction Documents,  or part thereof by telecopying an executed and completed
Notice of  Conversion  (a form of which is  annexed as Exhibit A to the Note) to
the Company via  confirmed  telecopier  transmission  or  otherwise  pursuant to
Section  13(a)  of this  Agreement.  The  Subscriber  will  not be  required  to
surrender the Note until the Note has been fully  converted or  satisfied.  Each
date on which a Notice of  Conversion is telecopied to the Company in accordance
with the provisions  hereof shall be deemed a Conversion  Date. The Company will
itself or cause the Company's  transfer  agent to transmit the Company's  Common
Stock certificates  representing the Shares issuable upon conversion of the Note
to the Subscriber via express courier for receipt by such Subscriber  within ten
business  days after  receipt by the Company of the Notice of  Conversion  (such
tenth day being the "Delivery  Date").  A Note  representing  the balance of the
Note not so  converted  will be  provided by the  Company to the  Subscriber  if
requested by Subscriber,  provided the Subscriber  delivers the original Note to
the Company.  In the event that a Subscriber  elects not to surrender a Note for
reissuance upon partial payment or conversion, the Subscriber hereby indemnifies
the Company  against any and all loss or damage  attributable  to a  third-party
claim in an amount in excess of the actual amount then due under the Note.

                                       9
(Subscription Agreement)
<PAGE>

                  (c) Nothing  contained  herein or in any document  referred to
herein or  delivered  in  connection  herewith  shall be deemed to  establish or
require  the  payment of a rate of  interest  or other  charges in excess of the
maximum  permitted by applicable  law. In the event that the rate of interest or
dividends  required  to be paid or other  charges  hereunder  exceed the maximum
permitted by such law, any payments in excess of such maximum  shall be credited
against  amounts owed by the Company to the  Subscriber and thus refunded to the
Company.

            7.2.  Maximum  Conversion.  The Subscriber  shall not be entitled to
convert on a  Conversion  Date that amount of the Note in  connection  with that
number of shares of Common  Stock which would be in excess of the sum of (i) the
number of shares of common stock  beneficially  owned by the  Subscriber and its
Affiliates on a Conversion  Date,  and (ii) the number of shares of Common Stock
issuable upon the conversion of the Note with respect to which the determination
of this  provision  is being made on a  Conversion  Date,  which would result in
beneficial  ownership by the Subscriber and its Affiliates of more than 4.99% of
the outstanding  shares of common stock of the Company on such Conversion  Date.
For  the  purposes  of the  provision  to the  immediately  preceding  sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities  Exchange Act of 1934, as amended,  and Regulation 13d-3  thereunder.
Subject to the  foregoing,  the  Subscriber  shall not be  limited to  aggregate
conversions of only 4.99% and aggregate conversions by the Subscriber may exceed
4.99%.  The  Subscriber may waive the  conversion  limitation  described in this
Section 7.2, in whole or in part, or increase the permitted beneficial ownership
amount upon and effective after 61 days prior written notice to the Company. The
Subscriber may allocate  which of the equity of the Company deemed  beneficially
owned by the Subscriber  shall be included in the 4.99% amount  described  above
and which shall be allocated to the excess above 4.99%.

            7.3.  No  Conversion  Until  Increase  in  Authorized  Capital.  The
Subscriber  understands and acknowledges  that none of the principal or interest
under the Notes may be converted  until the Company has increased its authorized
capital.

            8.  Finder's Fee. The Company on the one hand,  and each  Subscriber
(for himself  only) on the other hand,  agree to indemnify the other against and
hold the other  harmless from any and all  liabilities  to any persons  claiming
brokerage  commissions or finder's fees on account of services purported to have
been  rendered  on  behalf of the  indemnifying  party in  connection  with this
Agreement  or the  transactions  contemplated  hereby  and  arising  out of such
party's actions. The Company represents that there are no other parties entitled
to  receive  fees,  commissions,  or similar  payments  in  connection  with the
Offering except as described on Schedule 8(a) hereto.

            9. Registration Rights.

            9.1  Mandatory  Registration.  If  Township  acquires  any Rights to
Posted  Lands (as  described on Exhibit E), then the Company  shall  prepare and
file with the Securities and Exchange  Commission (the  "Commission"),  no later
than 60 days  after the date the first  Rights are  acquired  by  Township  (the
"Filing Date"),  a registration  statement  covering the resale of the following
securities  under the Securities  Act (the  "Registration  Statement"):  (i) the
number of  shares  of Common  Stock  into  which  the Notes  could be  converted
(whether as  conversion of the principal sum under the Notes or any Bonus Shares
issuable thereunder and as defined  thereunder);  plus (ii) the number of shares
issuable as interest on the Notes for one year from issuance of the Notes;  plus
(iii) the number of shares of Common Stock  underlying  the Warrants;  plus (iv)
any Initial Penalty Shares and Periodic  Penalty Shares (both as defined below).
The  shares  described  in (i) thru  (iv) are  collectively  referred  to as the
Registrable  Securities.  In the  event  that  the  Company  does  not  file the
Registration  Statement  by  the  Filing  Date,  the  Company  shall  pay to the
Subscriber a penalty of 2% of the principal sum and accrued  interest,  for each
30 day period  thereafter (or pro rata based upon the date that the Registration
Statement is filed) in the same manner as the Periodic  Penalty Shares are paid,
as described below. Such penalty will be paid in shares of the Common Stock (the
"Initial Penalty  Shares"),  with the price per share determined by reference to
the date such Initial Penalty Shares are accrued. Notwithstanding the foregoing,
the amounts  payable by the  Company  pursuant  to this  provision  shall not be
payable  to the  extent  any  delay  in the  effectiveness  of the  Registration
Statement  occurs because of an act of, or a failure to act, or a failure to act
timely by the Subscriber or its counsel.

                                       10
(Subscription Agreement)
<PAGE>

            9.2 Piggyback  Rights for Bonus  Shares.  In the event no Rights are
acquired by Township,  and therefore section 9.1 mandatory registration does not
apply, then the Bonus Shares shall have piggyback  registration  rights pursuant
to which Can West will  register  the Bonus  Shares for resale,  as follows:  If
CanWest files a resale  registration  statement on Form SB-2 at any time 60 days
after the issuance of the Bonus  Shares,  then CanWest  shall  include the Bonus
Shares in such registration statement, subject to customary underwriter cutbacks
and  receipt by CanWest of  appropriate  information  and  representations  from
holders of the Bonus Shares. This piggyback registration right shall expire once
holders of the Bonus Shares are  eligible to sell the Bonus  Shares  pursuant to
Rule 144 under the Securities Act of 1933.

            9.3 Payments by the Company. If the Registration  Statement covering
the  Registrable  Securities  required  to be filed by the  Company  pursuant to
Section 9.1 hereof is not  effective  within 120 days after the Filing Date (the
"Initial  Date"),  then the Company will make periodic  penalty  payments to the
Investor  as  described  below.  The  amount  to be paid by the  Company  to the
Investor shall be determined as of each Computation Date (as defined below), and
such amount shall be equal to2% of the principal sum and the accrued interest on
the Notes (the "Outstanding  Balance") for the period from the first Computation
Date to the second Computation Date, and 2% of the Outstanding  Balance for each
Computation  Date  thereafter,  pro  rata  to the  date  that  the  Registration
Statement is declared effective by the Commission.  Such penalty will be paid in
shares of Common Stock (the "Periodic Penalty Shares"), with the price per share
determined  by reference to each date the Periodic  Penalty  Shares are accrued.
Notwithstanding  the foregoing,  the amounts payable by the Company  pursuant to
this provision shall not be payable to the extent any delay in the effectiveness
of the Registration  Statement occurs because of an act of, or a failure to act,
or a failure to act timely by the Investor or its counsel.

            "Computation Date" means the date which is 120 days after the Filing
Date, if the Registration  Statement has not theretofore been declared effective
by the  Commission,  each date which is 30 days after the  previous  Computation
Date until such Registration Statement is so declared effective.

            9.3 Registration Procedures.  The Company shall use its best efforts
to:

                  (a)  Prepare  and file with the  Commission  the  Registration
Statement,  cause  the  Registration  Statement  to become  effective  under the
Securities Act as soon as  practicable  after the filing  thereof,  and keep the
Registration  Statement  effective  under the  Securities  Act until the date on
which all Subscribers can sell the Registrable  Securities  pursuant to Rule 144
of the Securities Act without restriction under Rule 144(e) thereof.

                                       11
(Subscription Agreement)
<PAGE>

                  (b)  Prepare  and file  with the  Commission  such  amendments
(including  post-effective  amendments)  and  supplements  to  the  Registration
Statement and the prospectus used in connection with the Registration  Statement
as may be  necessary  to keep the  Registration  Statement  effective  under the
Securities Act at all times until the date on which all Subscribers can sell the
Registrable  Securities  pursuant  to Rule  144 of the  Securities  Act  without
restriction under Rule 144(e) thereof,  and to comply with the provisions of the
Securities Act with respect to the disposition of all securities  covered by the
Registration Statement.

                  (c) Furnish promptly to the Subscribers such numbers of copies
of a prospectus,  including a preliminary  prospectus,  and all  amendments  and
supplements  thereto, in conformity with the requirements of the Securities Act,
and such other documents as the  Subscribers may reasonably  request in order to
facilitate the disposition of Registrable Securities.

                  (d)  Register  and  qualify  the  securities  covered  by  the
Registration  Statement  under  such other  securities  or Blue Sky laws of such
jurisdictions as shall be reasonably  requested by the Subscribers,  and prepare
and  file in  those  jurisdictions  such  amendments  (including  post-effective
amendments)  and  supplements and take such other actions as may be necessary to
maintain such  registration  and  qualification in effect at all times until the
date on which all Subscribers can sell the  Registrable  Securities  pursuant to
Rule 144 of the Securities Act without  restriction  under Rule 144(e)  thereof,
and to take all other actions  necessary or advisable to enable the  disposition
of such securities in such jurisdictions;  provided,  however,  that the Company
shall be required to file only in such states where such registration  would not
be unreasonably  expensive or burdensome;  and provided further that the Company
shall not be required in connection  therewith,  or as a condition  thereto,  to
qualify to do business or to file a general consent to service of process in any
such states or jurisdictions or to provide any undertaking or make any change in
its charter or by-laws which the Board of Directors determines to be contrary to
the best interest of the Company and its stockholders.

                  (e)  Notify  the  Subscribers,  at any time when a  prospectus
relating to  Registrable  Securities  covered by the  Registration  Statement is
required to be delivered under the Securities Act, of the happening of any event
as a result of which the prospectus included in the Registration  Statement,  as
then in effect,  includes  an untrue  statement  of a material  fact or omits to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein  not  misleading.   The  Company  shall  promptly  amend  or
supplement the  Registration  Statement to correct any such untrue  statement or
omission.

                  (f) Notify the  Subscribers  of the issuance by the Commission
or  any  state   securities   commission  of  any  stop  order   suspending  the
effectiveness of the Registration Statement or the initiation of any proceedings
for such purpose.  The Company will make every reasonable  effort to prevent the
issuance  of any stop  order and,  if any stop  order is  issued,  to obtain the
lifting thereof at the earliest possible time.

                  (g) Permit a single firm of counsel  designated by the holders
of  a  majority  in  interest  of  the  Registrable  Securities  to  review  the
Registration  Statement and all amendments and supplements  thereto a reasonable
period of time prior to their  filing,  and not file any  document  in a form to
which such counsel reasonably objects.

                  (h)  If  the  Common  Stock  is  then  listed  on  a  national
securities  exchange,  cause  the  Registrable  Securities  to be listed on such
exchange.  If the  Common  Stock is not then  listed  on a  national  securities
exchange,  facilitate the reporting of the Registrable  Securities on the Nasdaq
Over the Counter  Bulletin  Board,  the Nasdaq  SmallCap  Market,  or the Nasdaq
National Market, as applicable.

                  (i)  Provide a transfer  agent and  registrar,  which may be a
single entity, for the Registrable  Securities not later than the effective date
of the Registration Statement under the Securities Act.

                                       12
(Subscription Agreement)
<PAGE>

                  (j) Take all actions  reasonably  necessary to facilitate  the
timely  preparation  and delivery of  certificates  bearing,  as provided in the
Subscription  Agreement,  representing  the  Registrable  Securities  to be sold
pursuant to the Registration  Statement and to enable such certificates to be in
such  denominations  and  registered  in such  names as the  Subscribers  or any
underwriters may reasonably request.

                  (k) Take all other  reasonable  actions  necessary to expedite
and facilitate  disposition by the  Subscribers  of the  Registrable  Securities
pursuant to the Registration Statement.

            9.4. Indemnification and Contribution.

                  (a)  In  the  event  of  a  registration  of  any  Registrable
Securities  under the 1933 Act pursuant to Section 11, the Company  will, to the
extent permitted by law, indemnify and hold harmless the Seller, each officer of
the Seller,  each director of the Seller,  each  underwriter of such Registrable
Securities thereunder and each other person, if any, who controls such Seller or
underwriter  within the meaning of the 1933 Act,  against  any  losses,  claims,
damages  or  liabilities,  joint  or  several,  to  which  the  Seller,  or such
underwriter  or  controlling  person  may become  subject  under the 1933 Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect  thereof) arise out of or are based upon any untrue statement or alleged
untrue  statement of any material fact contained in any  registration  statement
under  which  such  Registrable  Securities  was  registered  under the 1933 Act
pursuant to Section 11, any preliminary prospectus or final prospectus contained
therein,  or any amendment or supplement  thereof,  or arise out of or are based
upon the omission or alleged  omission to state therein a material fact required
to be stated therein or necessary to make the statements  therein not misleading
in light of the  circumstances  when made, and will subject to the provisions of
Section  11.4  reimburse  the  Seller,  each  such  underwriter  and  each  such
controlling person for any legal or other expenses  reasonably  incurred by them
in connection  with  investigating  or defending any such loss,  claim,  damage,
liability or action; provided,  however, that the Company shall not be liable to
the Seller to the extent that any such damages arise out of or are based upon an
untrue  statement  or omission  made in any  preliminary  prospectus  if (i) the
Seller failed to send or deliver a copy of the final prospectus delivered by the
Company to the Seller with or prior to the delivery of written  confirmation  of
the sale by the Seller to the person asserting the claim from which such damages
arise,  (ii) the final  prospectus would have corrected such untrue statement or
alleged untrue statement or such omission or alleged  omission,  or (iii) to the
extent that any such loss, claim,  damage or liability arises out of or is based
upon an untrue  statement  or alleged  untrue  statement  or omission or alleged
omission so made in conformity with information furnished by any such Seller, or
any such controlling person.

                  (b) In the event of a registration  of any of the  Registrable
Securities  under the 1933 Act pursuant to Section 11, each Seller severally but
not jointly  will, to the extent  permitted by law,  indemnify and hold harmless
the  Company,  and each person,  if any,  who  controls  the Company  within the
meaning of the 1933 Act, each officer of the Company who signs the  registration
statement,  each director of the Company,  each  underwriter and each person who
controls any underwriter within the meaning of the 1933 Act, against all losses,
claims,  damages or liabilities,  joint or several, to which the Company or such
officer,  director,  underwriter or controlling  person may become subject under
the  1933  Act  or  otherwise,  insofar  as  such  losses,  claims,  damages  or
liabilities  (or actions in respect  thereof) arise out of or are based upon any
untrue  statement or alleged untrue  statement of any material fact contained in
the  registration   statement  under  which  such  Registrable  Securities  were
registered under the 1933 Act pursuant to Section 11, any preliminary prospectus
or final prospectus  contained therein,  or any amendment or supplement thereof,
or arise out of or are based  upon the  omission  or alleged  omission  to state
therein a material fact  required to be stated  therein or necessary to make the
statements therein not misleading,  and will reimburse the Company and each such
officer,  director,  underwriter and  controlling  person for any legal or other
expenses  reasonably  incurred  by  them in  connection  with  investigating  or
defending any such loss, claim, damage, liability or action, provided,  however,
that the  Seller  will be liable  hereunder  in any such case if and only to the
extent that any such loss, claim,  damage or liability arises out of or is based
upon an untrue  statement  or alleged  untrue  statement  or omission or alleged
omission made in reliance upon and in conformity with information  pertaining to
such Seller, as such, furnished to the Company by such Seller.

                                       13
(Subscription Agreement)
<PAGE>

                  (c) Promptly after receipt by an indemnified  party  hereunder
of notice of the commencement of any action,  such indemnified party shall, if a
claim in respect thereof is to be made against the indemnifying party hereunder,
notify the indemnifying party in writing thereof,  but the omission so to notify
the indemnifying party shall not relieve it from any liability which it may have
to such  indemnified  party  other than under  this  Section  9.4 and shall only
relieve it from any liability which it may have to such indemnified  party under
this Section 9.4, except and only if and to the extent the indemnifying party is
prejudiced by such  omission.  In case any such action shall be brought  against
any  indemnified  party  and it  shall  notify  the  indemnifying  party  of the
commencement thereof, the indemnifying party shall be entitled to participate in
and, to the extent it shall wish, to assume and  undertake  the defense  thereof
with counsel  satisfactory to such indemnified party, and, after notice from the
indemnifying  party to such  indemnified  party of its election so to assume and
undertake the defense  thereof,  the  indemnifying  party shall not be liable to
such  indemnified  party  under  this  Section  11.6(c)  for any legal  expenses
subsequently  incurred by such indemnified  party in connection with the defense
thereof other than reasonable costs of investigation and of liaison with counsel
so selected,  provided,  however,  that,  if the  defendants  in any such action
include  both  the  indemnified  party  and  the  indemnifying   party  and  the
indemnified  party shall have reasonably  concluded that there may be reasonable
defenses  available  to it  which  are  different  from or  additional  to those
available to the indemnifying party or if the interests of the indemnified party
reasonably  may be deemed to conflict  with the  interests  of the  indemnifying
party, the indemnified  parties,  as a group, shall have the right to select one
separate  counsel and to assume such legal defenses and otherwise to participate
in the defense of such  action,  with the  reasonable  expenses and fees of such
separate  counsel  and  other  expenses  related  to  such  participation  to be
reimbursed by the indemnifying party as incurred.

                  (d) In order to provide for just and equitable contribution in
the event of joint  liability under the 1933 Act in any case in which either (i)
a  Seller,  or  any  controlling   person  of  a  Seller,   makes  a  claim  for
indemnification pursuant to this Section 9.4 but it is judicially determined (by
the entry of a final judgment or decree by a court of competent jurisdiction and
the expiration of time to appeal or the denial of the last right of appeal) that
such  indemnification may not be enforced in such case  notwithstanding the fact
that this  Section  9.4  provides  for  indemnification  in such  case,  or (ii)
contribution  under the 1933 Act may be  required  on the part of the  Seller or
controlling  person of the Seller in circumstances for which  indemnification is
not provided  under this Section 9.4;  then,  and in each such case, the Company
and the Seller will  contribute  to the  aggregate  losses,  claims,  damages or
liabilities  to which they may be subject  (after  contribution  from others) in
such  proportion  so that  the  Seller  is  responsible  only  for  the  portion
represented by the percentage  that the public  offering price of its securities
offered by the registration  statement bears to the public offering price of all
securities offered by such registration statement,  provided,  however, that, in
any such case,  (y) the Seller will not be required to contribute  any amount in
excess of the public  offering price of all such  securities sold by it pursuant
to such registration statement; and (z) no person or entity guilty of fraudulent
misrepresentation  (within  the  meaning of Section 9.4 of the 1933 Act) will be
entitled  to  contribution  from any person or entity who was not guilty of such
fraudulent misrepresentation.

                                       14
(Subscription Agreement)
<PAGE>

            10. Participation Rights

      Except for Excepted  Issuances  (as defined  below),  if the Company shall
offer,  issue or agree to issue (at any time  while the  Notes or  Warrants  are
outstanding) any common stock or securities  convertible into or exercisable for
shares of common stock (or modify any of the foregoing which may be outstanding)
to any person or entity at a price per share or conversion or exercise price per
share which shall be less than the Conversion Price in respect of the Shares, or
if less than the  Warrant  exercise  price in  respect  of the  Warrant  Shares,
without  the  consent of each  Subscriber  holding  Notes or  Warrants  then the
Conversion  Price and Warrant  Exercise Price shall  automatically be reduced to
such other lower price per share.  If as a result of the reduction in Conversion
Price more shares are issued than covered in a registration statement,  then the
shares  not  covered  by  the  registration   statement  shall  have  piggy-back
registration rights.

      Excepted  Issuances is defined as and includes:  (A) the conversion of the
Notes or the exercise of the Warrants (B) the exercise of any warrants, options,
convertible  notes or other  derivative  securities  outstanding  on the Closing
Date,  (C) the issuance (at issuance or exercise  prices at or above fair market
value) of Common Stock,  stock awards or options  under,  or the exercise of any
options granted pursuant to, any  Board-approved  employee stock option or bonus
or similar plan for the issuance of options or capital stock of the Corporation,
(D) the  issuance  of shares  of Common  Stock in  connection  with a  bona-fide
strategic transaction, partnership or acquisition, (E) the issuance of shares of
Common Stock in connection with a bona-fide  public offering or (F) the issuance
of shares of Common Stock pursuant to a stock split,  combination or subdivision
of the outstanding shares of Common Stock.

            11. Miscellaneous.

                  (a)  Notices.  All  notices,  demands,   requests,   consents,
approvals,  and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein,  shall be (i) personally served,
(ii) deposited in the mail,  registered or certified,  return receipt requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other  address as such party shall have  specified
most recently by written notice. Any notice or other  communication  required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,   with  accurate  confirmation   generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received),  or the first  business day following  such delivery (if delivered
other than on a business day during normal  business  hours where such notice is
to be received) or (b) on the second  business day following the date of mailing
by express courier service,  fully prepaid,  addressed to such address,  or upon
actual receipt of such mailing,  whichever shall first occur.  The addresses for
such  communications  shall be: (i) if to the  Company,  to:  Canwest  Petroleum
Corporation,  206-475 Howe Street, Vancouver,  British Columbia, Canada V6C 2B3,
Attn:  Thornton J. Donaldson , CEO, telecopier number:  (604) 687-8789,  with an
additional  copy only to:  George Orr,  Suite  420-475 Howe  Street,  Vancouver,
British Columbia, Canada V6C 2B3, telecopier number: (604) 606-7980, and (ii) if
to the  Subscribers,  to:  the  one or more  addresses  and  telecopier  numbers
indicated on the signature pages hereto.

                  (b) Entire  Agreement;  Assignment.  This  Agreement and other
documents  delivered  in  connection  herewith  represent  the entire  agreement
between the parties  hereto with respect to the subject matter hereof and may be
amended only by a writing executed by both parties.  Neither the Company nor the
Subscribers have relied on any  representations  not contained or referred to in
this Agreement and the documents delivered  herewith.  No right or obligation of
the Company shall be assigned without prior notice to and the written consent of
the Subscribers.

                                       15
(Subscription Agreement)
<PAGE>

                  (c) Counterparts/Execution.  This Agreement may be executed in
any number of counterparts and by the different  signatories  hereto on separate
counterparts,  each of which, when so executed, shall be deemed an original, but
all such  counterparts  shall constitute but one and the same  instrument.  This
Agreement  may be executed by  facsimile  signature  and  delivered by facsimile
transmission.

                  (d) Law Governing  this  Agreement.  This  Agreement  shall be
governed by and construed in  accordance  with the laws of the State of Colorado
without  regard  to  conflicts  of laws  principles  that  would  result  in the
application of the substantive laws of another jurisdiction.  Any action brought
by either party against the other  concerning the  transactions  contemplated by
this  Agreement  shall be brought only in the state courts of Colorado or in the
federal courts located in the state of Colorado. The parties and the individuals
executing this Agreement and other agreements referred to herein or delivered in
connection herewith on behalf of the Company agree to submit to the jurisdiction
of such courts and waive trial by jury. The  prevailing  party shall be entitled
to recover from the other party its reasonable attorney's fees and costs. In the
event that any provision of this Agreement or any other  agreement  delivered in
connection  herewith is invalid or unenforceable under any applicable statute or
rule of law, then such provision shall be deemed  inoperative to the extent that
it may  conflict  therewith  and shall be deemed  modified to conform  with such
statute  or  rule of  law.  Any  such  provision  which  may  prove  invalid  or
unenforceable  under any law shall not affect the validity or  enforceability of
any other provision of any agreement.

                  (e) Specific Enforcement, Consent to Jurisdiction. The Company
and Subscriber  acknowledge and agree that irreparable damage would occur in the
event  that  any of the  provisions  of this  Agreement  were not  performed  in
accordance  with  their  specific  terms  or  were  otherwise  breached.  It  is
accordingly agreed that the parties shall be entitled to one or more preliminary
and final  injunctions  to prevent or cure  breaches of the  provisions  of this
Agreement and to enforce  specifically  the terms and  provisions  hereof,  this
being in  addition  to any other  remedy to which any of them may be entitled by
law or equity. Subject to Section 10(d) hereof, each of the Company,  Subscriber
and any signator hereto in his personal  capacity hereby waives,  and agrees not
to  assert in any such  suit,  action or  proceeding,  any claim  that it is not
personally subject to the jurisdiction in New York of such court, that the suit,
action or  proceeding is brought in an  inconvenient  forum or that the venue of
the suit, action or proceeding is improper. Nothing in this Section shall affect
or limit any right to serve process in any other manner permitted by law.

                                       16
(Subscription Agreement)
<PAGE>

                  (f)   Independent   Nature   of   Subscribers.   The   Company
acknowledges  that the  obligations  of each  Subscriber  under the  Transaction
Documents  are  several  and  not  joint  with  the  obligations  of  any  other
Subscriber,  and  no  Subscriber  shall  be  responsible  in  any  way  for  the
performance of the  obligations of any other  Subscriber  under the  Transaction
Documents.  The Company  acknowledges  that each Subscriber has represented that
the decision of each  Subscriber  to purchase  Securities  has been made by such
Subscriber  independently  of any  other  Subscriber  and  independently  of any
information,  materials,  statements  or opinions as to the  business,  affairs,
operations, assets, properties,  liabilities,  results of operations,  condition
(financial or otherwise) or prospects of the Company which may have been made or
given  by any  other  Subscriber  or by  any  agent  or  employee  of any  other
Subscriber,  and no Subscriber or any of its agents or employees  shall have any
liability to any  Subscriber  (or any other person)  relating to or arising from
any  such   information,   materials,   statements  or  opinions.   The  Company
acknowledges that nothing contained in any Transaction  Document,  and no action
taken by any Subscriber pursuant hereto or thereto  (including,  but not limited
to, the (i)  inclusion of a Subscriber  in the  Registration  Statement and (ii)
review by, and consent to, such Registration Statement by a Subscriber) shall be
deemed to constitute the Subscribers as a partnership,  an association,  a joint
venture  or any  other  kind  of  entity,  or  create  a  presumption  that  the
Subscribers  are in any way acting in concert or as a group with respect to such
obligations or the transactions  contemplated by the Transaction Documents.  The
Company  acknowledges  that each Subscriber  shall be entitled to  independently
protect and enforce its rights, including without limitation, the rights arising
out of the  Transaction  Documents,  and it shall not be necessary for any other
Subscriber  to be  joined  as an  additional  party in any  proceeding  for such
purpose. The Company acknowledges that it has elected to provide all Subscribers
with the same terms and Transaction Documents for the convenience of the Company
and not because  Company was required or requested to do so by the  Subscribers.
The Company  acknowledges  that such procedure  with respect to the  Transaction
Documents in no way creates a presumption  that the  Subscribers  are in any way
acting in concert or as a group with respect to the Transaction Documents or the
transactions contemplated thereby.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       17
(Subscription Agreement)
<PAGE>

                    SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT

      Please acknowledge your acceptance of the foregoing Subscription Agreement
by signing and returning a copy to the  undersigned  whereupon it shall become a
binding agreement between us.

                                                 CANWEST PETROLEUM CORPORATION
                                                 a Colorado corporation

                                                 By: ___________________________
                                                     Name: Thornton J. Donaldson
                                                     Title: CEO

                                                 Dated: __________, 2005

--------------------------------------------------------------------------------
SUBSCRIBER                                                    NOTE PRINCIPAL
--------------------------------------------------------------------------------
                                                              $____________

_____________________________________
(Signature)
By:
--------------------------------------------------------------------------------

<PAGE>

                         LIST OF EXHIBITS AND SCHEDULES

            Exhibit A               Form of Note

            Exhibit B               Form of Security Agreement

            Exhibit C               Form of Warrant

            Exhibit D               Escrow Agreement

            Exhibit E               Use of Proceeds

            Schedule 5(d)           Additional Issuances / Capitalization

            Schedule 8(a)           Finder's Fee and Recipients

<PAGE>

                                  SCHEDULE 8(a)

                                     FINDERS

The Company may pay finder's fees on the introduction by a finder of Subscribers
in  this  Offering  to the  Company.  The  maximum  finder's  fee to be  paid on
subscriptions  shall be 7.5% on funds actually used to purchase  Rights (and not
refunded  as  a  Refund  Amount).  The  maximum  finder's  fee  to  be  paid  on
subscriptions  that are returned to  Subscribers  in the form of a Refund Amount
shall be 3.75%.  All  finder's  fees shall be paid in shares of  CanWest  common
stock at a price per share of $0.45,  and will be issued after the Refund Amount
is  received  by the Escrow  Agent  (once the Refund  Amount and number of Bonus
Shares are determined and distributed). All shares issued as finder's fees shall
have the same registration rights as Bonus Shares under Section 9.

In addition, each finder has been granted a royalty of $0.01 Canadian per Barrel
(as defined below) on each US$1,000,000 introduced to the Company by that finder
and used by the Company (through  Township) to purchase Rights, and not returned
to  Subscribers  in the form of a Refund  Amount.  A Barrel is  defined  as each
barrel of crude  bitumen  produced,  saved  and sold  from the oil sands  leases
acquired by Township under the Rights.

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