Document:

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EXHIBIT 4.7

         THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF
         THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
         AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON
         STOCK 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 AND ANY
         APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
         SATISFACTORY TO ISLAND PACIFIC, INC. THAT SUCH REGISTRATION IS NOT
         REQUIRED.

           Right to Purchase up to 1,200,000 Shares of Common Stock of
                              Island Pacific, Inc.
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. _________________                                 Issue Date: March 31, 2005

         ISLAND PACIFIC, INC., a corporation organized under the laws of the
State of Delaware ("Island Pacific, Inc."), hereby certifies that, for value
received, LAURUS MASTER FUND, LTD., or assigns (the "Holder"), is entitled,
subject to the terms set forth below, to purchase from the Company (as defined
herein) from and after the Issue Date of this Warrant and at any time or from
time to time before 5:00 p.m., New York time, through the close of business
March 31, 2012 (the "Expiration Date"), up to 1,200,000 fully paid and
nonassessable shares of Common Stock (as hereinafter defined), $0.0001 par value
per share, at the applicable Exercise Price per share (as defined below). The
number and character of such shares of Common Stock and the applicable Exercise
Price per share are subject to adjustment as provided herein.

         As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:

         (a) The term "Company" shall include Island Pacific, Inc. and any
corporation which shall succeed, or assume the obligations of, Island Pacific,
Inc. hereunder.

         (b) The term "Common Stock" includes (i) the Company's Common Stock,
par value $0.0001 per share; and (ii) any other securities into which or for
which any of the securities described in (a) may be converted or exchanged
pursuant to a plan of recapitalization, reorganization, merger, sale of assets
or otherwise.

         (c) The term "Other Securities" refers to any stock (other than Common
Stock) and other securities of the Company or any other person (corporate or
otherwise) which the holder of the Warrant at any time shall be entitled to
receive, or shall have received, on the exercise of the Warrant, in lieu of or
in addition to Common Stock, or which at any time shall be issuable or shall
have been issued in exchange for or in replacement of Common Stock or Other
Securities pursuant to Section 4 or otherwise.

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         (d) The "Exercise Price" applicable under this Warrant shall be $0.20
for all shares acquired hereunder.

         1. EXERCISE OF WARRANT.

             1.1. NUMBER OF SHARES ISSUABLE UPON EXERCISE. From and after the
date hereof through and including the Expiration Date, the Holder shall be
entitled to receive, upon exercise of this Warrant in whole or in part, by
delivery of an original or fax copy of an exercise notice in the form attached
hereto as Exhibit A (the "Exercise Notice"), shares of Common Stock of the
Company, subject to adjustment pursuant to Section 4.

             1.2. FAIR MARKET VALUE. For purposes hereof, the "Fair Market
Value" of a share of Common Stock as of a particular date (the "Determination
Date") shall mean:

                  (a) If the Company's Common Stock is traded on the American
Stock Exchange or another national exchange or is quoted on the National or
SmallCap Market of The Nasdaq Stock Market, Inc. ("Nasdaq"), then the closing or
last sale price, respectively, reported for the last business day immediately
preceding the Determination Date.

                  (b) If the Company's Common Stock is not traded on the
American Stock Exchange or another national exchange or on the Nasdaq but is
traded on the NASD OTC Bulletin Board, then the mean of the average of the
closing bid and asked prices reported for the last business day immediately
preceding the Determination Date.

                  (c) Except as provided in clause (d) below, if the Company's
Common Stock is not publicly traded, then as the Holder and the Company agree or
in the absence of agreement by arbitration in accordance with the rules then in
effect of the American Arbitration Association, before a single arbitrator to be
chosen from a panel of persons qualified by education and training to pass on
the matter to be decided.

                  (d) If the Determination Date is the date of a liquidation,
dissolution or winding up, or any event deemed to be a liquidation, dissolution
or winding up pursuant to the Company's charter, then all amounts to be payable
per share to holders of the Common Stock pursuant to the charter in the event of
such liquidation, dissolution or winding up, plus all other amounts to be
payable per share in respect of the Common Stock in liquidation under the
charter, assuming for the purposes of this clause (d) that all of the shares of
Common Stock then issuable upon exercise of the Warrant are outstanding at the
Determination Date.

             1.3. COMPANY ACKNOWLEDGMENT. The Company will, at the time of the
exercise of the Warrant, upon the request of the holder hereof acknowledge in
writing its continuing obligation to afford to such holder any rights to which
such holder shall continue to be entitled after such exercise in accordance with
the provisions of this Warrant. If the holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the Company
to afford to such holder any such rights.

             1.4. TRUSTEE FOR WARRANT HOLDERS. In the event that a bank or trust
company shall have been appointed as trustee for the holders of the Warrant
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of a warrant agent (as hereinafter described) and shall accept, in
its own name for the account of the Company or such successor person as may be
entitled thereto, all amounts otherwise payable to the Company or such
successor, as the case may be, on exercise of this Warrant pursuant to this
Section 1.

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             1.5. MANDATORY EXERCISE OF WARRANT. The Company shall have the
right to require the exercise of this Warrant in whole or in part, if: (a) all
of the obligations of the Company arising from that certain Note of the Company
in favor of the Holder, dated as of the date hereof in the original principal
amount of $7,000,000 shall have been irrevocably paid in full, (b) the Common
Stock underlying the Warrant has been registered on a registration statement
declared effective by the Securities Exchange Commission, and such registration
statement remain effective, and (c) the average closing price of the Common
Stock for the ten (10) trading days immediately prior to the proposed date of
the mandatory exercise of the Warrant is greater than three hundred percent
(300%) of the then applicable Exercise Price.

         2. PROCEDURE FOR EXERCISE.

             2.1. DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE. The Company
agrees that the shares of Common Stock purchased upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such shares as
of the close of business on the date on which this Warrant shall have been
surrendered and payment made for such shares in accordance herewith. As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within three (3) business days thereafter, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be
issued in the name of and delivered to the Holder, or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may direct in
compliance with applicable securities laws, a certificate or certificates for
the number of duly and validly issued, fully paid and nonassessable shares of
Common Stock (or Other Securities) to which such Holder shall be entitled on
such exercise, plus, in lieu of any fractional share to which such holder would
otherwise be entitled, cash equal to such fraction multiplied by the then Fair
Market Value of one full share, together with any other stock or other
securities and property (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

             2.2. EXERCISE. Payment may be made in cash or by certified or
official bank check payable to the order of the Company equal to the applicable
aggregate Exercise Price for the number of Common Shares specified in such
Exercise Notice (as such exercise number shall be adjusted to reflect any
adjustment in the total number of shares of Common Stock issuable to the Holder
per the terms of this Warrant) and the Holder shall thereupon be entitled to
receive the number of duly authorized, validly issued, fully-paid and
non-assessable shares of Common Stock (or Other Securities) determined as
provided herein.

             2.3. REORGANIZATION, CONSOLIDATION, MERGER, ETC. In case at any
time or from time to time, the Company shall (a) effect a reorganization, (b)
consolidate with or merge into any other person, or (c) transfer all or
substantially all of its properties or assets to any other person under any plan
or arrangement contemplating the dissolution of the Company, then, in each such
case, as a condition to the consummation of such a transaction, proper and
adequate provision shall be made by the Company whereby the Holder of this
Warrant, on the exercise hereof as provided in Section 1 at any time after the
consummation of such reorganization, consolidation or merger or the effective
date of such dissolution, as the case may be, shall receive, in lieu of the
Common Stock (or Other Securities) issuable on such exercise prior to such
consummation or such effective date, the stock and other securities and property
(including cash) to which such Holder would have been entitled upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant, immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

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             2.4. DISSOLUTION. In the event of any dissolution of the Company
following the transfer of all or substantially all of its properties or assets,
the Company, concurrently with any distributions made to holders of its Common
Stock, shall at its expense deliver or cause to be delivered to the Holder the
stock and other securities and property (including cash, where applicable)
receivable by the Holder of the Warrant pursuant to Section 3.1, or, if the
Holder shall so instruct the Company, to a bank or trust company specified by
the Holder and having its principal office in New York, NY as trustee for the
Holder of the Warrant (the "Trustee").

             2.5. CONTINUATION OF TERMS. Upon any reorganization, consolidation,
merger or transfer (and any dissolution following any transfer) referred to in
this Section 3, this Warrant shall continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property receivable on the exercise of this Warrant after the consummation of
such reorganization, consolidation or merger or the effective date of
dissolution following any such transfer, as the case may be, and shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer, the person acquiring all or substantially all of the
properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in Section 4. In the
event this Warrant does not continue in full force and effect after the
consummation of the transactions described in this Section 3, then the Company's
securities and property (including cash, where applicable) receivable by the
Holders of the Warrant will be delivered to Holder or the Trustee as
contemplated by Section 3.2.

         3. EXTRAORDINARY EVENTS REGARDING COMMON STOCK. In the event that the
Company shall (a) issue additional shares of the Common Stock as a dividend or
other distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of the Common Stock, then, in each such
event, the Exercise Price shall, simultaneously with the happening of such
event, be adjusted by multiplying the then Exercise Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common Stock outstanding immediately after such event, and the
product so obtained shall thereafter be the Exercise Price then in effect. The
Exercise Price, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described herein in this Section 4.
The number of shares of Common Stock that the holder of this Warrant shall
thereafter, on the exercise hereof as provided in Section 1, be entitled to
receive shall be increased to a number determined by multiplying the number of
shares of Common Stock that would otherwise (but for the provisions of this
Section 4) be issuable on such exercise by a fraction of which (a) the numerator
is the Exercise Price that would otherwise (but for the provisions of this
Section 4) be in effect, and (b) the denominator is the Exercise Price in effect
on the date of such exercise.

         4. CERTIFICATE AS TO ADJUSTMENTS. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the Warrant, the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or readjustment in accordance with the terms of the Warrant and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based, including a

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statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding, and (c) the Exercise Price
and the number of shares of Common Stock to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith
mail a copy of each such certificate to the holder of the Warrant and any
Warrant agent of the Company (appointed pursuant to Section 11 hereof).

         5. RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF WARRANT. At all
times while the Warrant is exercisable, the Company will reserve and keep
available, solely for issuance and delivery on the exercise of the Warrant,
shares of Common Stock (or Other Securities) from time to time issuable on the
exercise of the Warrant.

         6. ASSIGNMENT; EXCHANGE OF WARRANT. Subject to compliance with
applicable securities laws, this Warrant, and the rights evidenced hereby, may
be transferred by any registered holder hereof (a "Transferor") in whole or in
part. On the surrender for exchange of this Warrant, with the Transferor's
endorsement in the form of Exhibit B attached hereto (the "Transferor
Endorsement Form") and together with evidence reasonably satisfactory to the
Company demonstrating compliance with applicable securities laws, which shall
include, without limitation, the provision of a legal opinion from the
Transferor's counsel (at the Company's expense) that such transfer is exempt
from the registration requirements of applicable securities laws, and with
payment by the Transferor of any applicable transfer taxes) will issue and
deliver to or on the order of the Transferor thereof a new Warrant of like
tenor, in the name of the Transferor and/or the transferee(s) specified in such
Transferor Endorsement Form (each a "Transferee"), calling in the aggregate on
the face or faces thereof for the number of shares of Common Stock called for on
the face or faces of the Warrant so surrendered by the Transferor.

         7. REPLACEMENT OF WARRANT. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction of this
Warrant, on delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of this Warrant, the Company at its
expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

         8. REGISTRATION RIGHTS. The Holder of this Warrant has been granted
certain registration rights by the Company. These registration rights are set
forth in a Registration Rights Agreement entered into by the Company and
Purchaser dated as of July 12, 2004, as amended, modified or supplemented from
time to time.

         9. MAXIMUM EXERCISE. The Holder shall not be entitled to exercise this
Warrant on an exercise date, 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 Holder and its affiliates on an exercise date,
and (ii) the number of shares of Common Stock issuable upon the exercise of this
Warrant with respect to which the determination of this proviso is being made on
an exercise date, which would result in beneficial ownership by the Holder and
its affiliates of more than 4.99% of the outstanding shares of Common Stock of
the Company on such date. For the purposes of the proviso 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. Notwithstanding the foregoing, the restriction described in
this paragraph may be revoked upon 75 days prior notice from the Holder to the
Company and is automatically null and void upon an uncured Event of Default
under, and as defined in, the Note.

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         10. WARRANT AGENT. The Company may, by written notice to the each
Holder of the Warrant, appoint an agent for the purpose of issuing Common Stock
(or Other Securities) on the exercise of this Warrant pursuant to Section 1,
exchanging this Warrant pursuant to Section 7, and replacing this Warrant
pursuant to Section 8, or any of the foregoing, and thereafter any such
issuance, exchange or replacement, as the case may be, shall be made at such
office by such agent.

         11. TRANSFER ON THE COMPANY'S BOOKS. Until this Warrant is transferred
on the books of the Company, the Company may treat the registered holder hereof
as the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.

         12. NOTICES, ETC. All notices and other communications from the Company
to the Holder of this Warrant shall be mailed by first class registered or
certified mail, postage prepaid, at such address as may have been furnished to
the Company in writing by such Holder or, until any such Holder furnishes to the
Company an address, then to, and at the address of, the last Holder of this
Warrant who has so furnished an address to the Company.

         13. MISCELLANEOUS. This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought. This Warrant shall be governed by and construed in accordance with
the laws of State of New York without regard to principles of conflicts of laws.
Any action brought concerning the transactions contemplated by this Warrant
shall be brought only in the state courts of New York or in the federal courts
located in the state of New York; provided, however, that the Holder may choose
to waive this provision and bring an action outside the state of New York. The
individuals executing this Warrant 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 Warrant 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 this Warrant.
The headings in this Warrant are for purposes of reference only, and shall not
limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision hereof. The Company acknowledges that
legal counsel participated in the preparation of this Warrant and, therefore,
stipulates that the rule of construction that ambiguities are to be resolved
against the drafting party shall not be applied in the interpretation of this
Warrant to favor any party against the other party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                            SIGNATURE PAGE FOLLOWS.]

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         IN WITNESS WHEREOF, the Company has executed this Warrant as of the
date first written above.

WITNESS:                                    ISLAND PACIFIC, INC.

/s/ Corinne Bertrand                        By: /s/ M. Tomczak
---------------------------------           ------------------------------------
                                            Name: Mike Tomczak
                                            Title: President

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                                    EXHIBIT A

                              FORM OF SUBSCRIPTION
                   (To Be Signed Only On Exercise Of Warrant)

TO:      Island Pacific, Inc.

         Attention:        Chief Financial Officer

         The undersigned, pursuant to the provisions set forth in the attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

________ ________ shares of the Common Stock covered by such Warrant.

The undersigned herewith makes payment of the full Exercise Price for such
shares at the price per share provided for in such Warrant, which is
$___________. Such payment takes the form of $__________ in lawful money of the
United States.

         The undersigned requests that the certificates for such shares be
issued in the name of, and delivered to ________________________________________
whose address is ______________________________________________________________.

         The undersigned represents and warrants that all offers and sales by
the undersigned of the securities issuable upon exercise of the within Warrant
shall be made pursuant to registration of the Common Stock under the Securities
Act of 1933, as amended (the "Securities Act") or pursuant to an exemption from
registration under the Securities Act.

Dated: ________________________              ___________________________________
                                             (Signature must conform to name of
                                             holder as specified on the face of
                                             the Warrant)

                                             Address: __________________________
                                                      __________________________

                                      A-1
<PAGE>

                                 EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To Be Signed Only On Transfer Of Warrant)

         For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading "Transferees" the
right represented by the within Warrant to purchase the percentage and number of
shares of Common Stock of Island Pacific, Inc. into which the within Warrant
relates specified under the headings "Percentage Transferred" and "Number
Transferred," respectively, opposite the name(s) of such person(s) and appoints
each such person Attorney to transfer its respective right on the books of
Island Pacific, Inc. with full power of substitution in the premises.

                                             Percentage            Number
Transferees              Address            Transferred          Transferred
-----------              -------            -----------          -----------

________________ _______________________  ________________  ____________________

________________ _______________________  ________________  ____________________

________________ _______________________  ________________  ____________________

________________ _______________________  ________________  ____________________

Dated: ________________________              ___________________________________
                                             (Signature must conform to name of
                                             holder as specified on the face of
                                             the Warrant)

                                             Address: __________________________
                                                      __________________________

                                             SIGNED IN THE PRESENCE OF:

                                             ___________________________________
                                                           (Name)

ACCEPTED AND AGREED:
[TRANSFEREE]

___________________________________
             (Name)

                                       B-1[DUNDEE SECURITIES CORPORATION LETTERHEAD]

April 15, 2005

Loretta Food Group Inc.
2405 Lucknow Drive
Mississauga, ON  L5S 1H9

Attention:        Mr. Al Burgio,
                  President and CEO

Dear Sir:

Re: Private Placement of Subscription Receipts of Loretta Food Group Inc.

We  understand  that Loretta Food Group Inc. (the  "Company")  wishes to raise a
minimum of  $1,500,000  and a maximum  of  $3,000,000  by way of a  best-efforts
private  placement  offering  (the  "Offering")  of a minimum of 5,555,400 and a
maximum  of  11,111,100  subscription  receipts  of the  Company  ("Subscription
Receipts") at a price of $0.27 per Subscription  Receipt,  pursuant to available
prospectus   exemptions  under  applicable   securities  laws  in  the  relevant
jurisdictions,  as more  particularly  described below in this letter.  The Term
Sheet  attached to this letter as Schedule "A" sets out the  principal  terms of
the  Offering.  For the  purposes  of this  Agreement,  the  term  "Subscription
Receipt"  when used in reference to the Company,  means a  subscription  receipt
that,  immediately  prior to the Going Public  Closing Date (as defined  below),
will be converted into one-third of one common share (each whole common share, a
"Common Share") (or in the circumstances  described below, 0.3667 Common Shares)
in the capital of the Company as set forth in the Term Sheet.

We further  understand  that the  Company  has  entered  into a letter of intent
involving a business  combination to constitute the "Qualifying  Transaction" of
CPVC  Tremblant  Inc.  ("Tremblant")  under Policy 2.4 of the Corporate  Finance
Manual of the TSX Venture Exchange Inc. Pursuant to the Business Combination, it
is anticipated  that Tremblant and the Company will complete a share exchange by
way of plan of  arrangement  or a  similar  transaction,  pursuant  to which the
holders of the Common  Shares will receive  three common shares of Tremblant for
each Common Share owned (the "Business Combination").  As a part of the Business
Combination  Tremblant  will  continue  into  Canada and will be governed by the
Canada Business  Corporations  Act as a part of such continuance will change its
name as is agreed to by the  parties to the  Business  Combination.  For greater
certainty,  other securities of the Company (including any Compensation  Options
(as defined  below)  issued in connection  with the Offering)  will be exchanged
pursuant to the Business  Combination for similar securities of Tremblant at the
same ratio  applicable for the exchange of the Common Shares of the Company into
common shares of Tremblant.

The  Company  undertakes  to use its  best  efforts  to  complete  the  Business
Combination or other going-public event (an "Alternative  Arrangement")  whether
by reverse take-over, merger, consolidation, reorganization, sale or exchange of
assets, or similar  transaction or transactions,  to cause the Common Shares (or
those of a successor  company) to be listed on a senior stock  exchange  such as
the NASDAQ  Small Cap stock  exchange,  the  Toronto  Stock  Exchange or the TSX
Venture  Exchange  within  six  months  from  the  initial  Closing  Date of the
Offering.   The  Business   Combination  or  an  Alternative   Arrangement   are
collectively referred to herein as a "Public Listing Event".

If a Public  Listing Event is not completed  within four months from the closing
of the Offering in escrow but is completed within six months of such closing (or
such  later  date as may be agreed to by the Agent (as  defined  below)  and the
Company)  from the closing  date of the  Offering,  purchasers  of  Subscription
Receipts  pursuant to the  Offering  will be entitled to receive  0.3667  Common
Shares on exchange of the  Subscription  Receipts  in lieu of  one-third  of one
Common Share.  The date of closing of the Public  Listing Event shall be defined
herein as the "Going Public  Closing  Date".  All  references to common  shares,
stock  options and warrants of Tremblant  and/or the Company  herein are made as
such securities are constituted as of the date hereof.

<PAGE>

The Company  hereby  covenants  that any Public  Listing Event that it completes
will be  structured  such that the  holders  of  Common  Shares  (or such  other
securities  that each holder will receive  pursuant to the Public Listing Event)
will not be subject to any hold periods upon resale of such  securities  (except
hold periods relating to control block holders) and the securities to be held in
place of the  Subscription  Receipts  issued  pursuant to this Agreement will be
listed and posted for  trading  on a senior  stock  exchange  such as the NASDAQ
Small  Cap  stock  exchange,  the  Toronto  Stock  Exchange  or the TSX  Venture
Exchange.  In the event that the Public  Listing Event involves a listing on the
NASDAQ Small Cap stock  exchange,  the Company will prepare and file or cause to
be  prepared  and filed  with the U.S.  Securities  and  Exchange  Commission  a
registration  statement  pursuant to the Securities Act of 1933, as amended (the
"US  Securities  Act") to register for sale or other  disposition  of the Common
Shares. A Public Listing Event shall not be completed if such transaction  would
have  material  adverse  tax  consequences  to the  holders of the  Subscription
Receipts,  as determined by the Agent,  relying on the advice of U.S. counsel to
the Corporation, acting reasonably.

In the event the Company  fails to complete a Public  Listing Event on or before
the date that is six months from the Closing Date of the Offering,  any Escrowed
Proceeds (defined below) still in escrow shall be returned to the subscribers in
exchange for the return of the corresponding  Subscription  Receipts  subscribed
for by subscribers under the Offering, on a pro rata basis based on the holdings
of  Subscription  Receipts.  To the extent that the  Escrowed  Proceeds  are not
sufficient to satisfy in full the repayment obligation of the subscription price
for the  Subscription  Receipts,  the Company  hereby agrees to contribute  such
amounts as are necessary to cover any shortfall the assurance of such payment to
be settled  between the Company and the Agent,  both acting  reasonably  (not to
exceed the amount of the Agent's commission and expenses).

The Company will,  and the Company will cause  Tremblant  to,  provide the Agent
with copies of any and all documentation,  instruments and agreements (including
circulars  and any  applications  or orders made or  received to any  securities
regulatory  authority or stock exchange) relating to the Business Combination or
an Alternative Arrangement, as the case may be, and such documents,  instruments
and  agreements  shall  not be  executed  by the  Company  unless  the  Agent is
satisfied that any securities  received by the holders of Subscription  Receipts
pursuant to the Business Combination or Alternative Arrangement, as the case may
be, will be freely  tradable and have no resale  restrictions  attached to them,
except those resale  restrictions  applicable to control persons, or pursuant to
escrow  requirements  of the applicable  stock exchange and that such securities
are listed and posted for trading on a senior stock  exchange such as the NASDAQ
Small  Cap  stock  exchange,  the  Toronto  Stock  Exchange  or the TSX  Venture
Exchange.

By  your  acceptance  of this  letter  (this  "Agreement")  you  appoint  Dundee
Securities  Corporation  (the  "Agent"),  and the  Agent  agrees  to  act,  on a
best-efforts  basis,  as the Company's  exclusive  private  placement agent with
respect to the Offering,  on the terms and conditions  set out below.  The Agent
proposes to begin the  offering  process  upon  execution by the Company of this
Agreement  and  upon  completion  of its  due  diligence,  with  a view  towards
completion  of the Offering on or about May 27, 2005,  or such later date as the
Company and the Agent agree (the "Closing Date").

1. Responsibilities

The Agent's responsibilities will include:

(a) identifying and soliciting prospective purchasers ("Prospective  Investors")
of the  securities  offered under the Offering (the "Offered  Securities")  on a
best-efforts agency basis;

<PAGE>

(b) assisting the Company and/or its counsel in  negotiations  with  Prospective
Investors;

(c)  drafting  and  negotiating  with the  Company  of the form of  Subscription
Agreements to be entered into between the Company and Prospective Investors;

(d) drafting  negotiating  with the Company of the Agency  Agreement (as defined
herein);

(e) review of other  agreements  contemplated  in the  context of the  Offering,
closing and other ancillary documents relating to the Offering;

(f) cause Prospective  Investors who purchase  Subscription Receipts pursuant to
the  Offering  to provide to the  Company  any  powers of  attorney,  proxies or
consents as may be required in order to complete the Business Combination; and

(g) other matters related or undertaken in order to complete the Offering.

The Company agrees to provide the Agent with prompt notice of any discussions or
inquiries  received  from  any  potential  investors,  who  shall be  deemed  as
Prospective Investors, and direct all inquiries to the Agent in a timely manner.

The Agent will be entitled,  subject to the terms hereof,  to appoint in respect
of the Offering, a selling group consisting of other co-agents or sub-agents who
are registered dealers.

2. Additional Services

If the Company  requests the Agent to provide any other  services in addition to
those  described in  Paragraph 1 above  ("Additional  Services"),  the terms and
conditions  relating to such  services  will be  outlined  in a separate  letter
agreement.  The Company and the Agent will  negotiate the fees for such services
separately,  in  good  faith,  consistent  with  fees  paid  to  North  American
investment  bankers for similar  services.  Specifically,  in the event that the
Agent is required to provide a Sponsorship  or similar letter to the TSX Venture
Exchange in connection  with the Public Listing Event,  the terms and conditions
of such services will be outlined in a separate letter.

3. Offering Jurisdictions

The Offered  Securities will be offered by way of private  placement  exemptions
from the  prospectus  requirements  in such provinces of Canada as the Agent may
designate, including Alberta, British Columbia, Saskatchewan,  Manitoba, Ontario
and Quebec (the "Offering  Jurisdictions") and pursuant to available  exemptions
from the registration  and prospectus  requirements of the US Securities Act. No
offering memorandum, as defined under the securities legislation of the Offering
Jurisdictions will be delivered to Prospective Investors.

4. Compensation

Subject to the following  paragraph,  in  consideration  of the Agent  providing
their services to the Company  pursuant to this Agreement,  the Company will pay
the fee set forth in the Term Sheet  attached as Schedule "A" and in  accordance
with the terms of the  Agency  Agreement.  At the  closing of this  Offering  in
escrow (the  "Closing"),  the Agent will deduct its fees and expenses as per the
Term Sheet, from the gross proceeds of the Offering.

As  additional  compensation  for the Agent  providing  its services  under this
Agreement,  the Company will issue options ("Compensation Options") to the Agent
at the Closing,  such Compensation  Options to be granted in accordance with the
provisions of the Term Sheet attached as Schedule "A" and in accordance with the
Agency  Agreement.  The  Compensation  Options will entitle the Agent to acquire
such  number  of  Common  Shares  as is  equal  to 10% of 1/3 of the  number  of
Subscription  Receipts  sold by the Agent under the Offering.  The  Compensation
Options will:

<PAGE>

(a) be exercisable at a price of $0.81 per Common Share; and

(b)      expire at 5:00 p.m. on the 18 month anniversary of their date of issue.

For greater  certainty,  any Compensation  Options issued in connection with the
Offering  will be  exchanged  pursuant to the Business  Combination  at the same
exchange ratio as the Common Shares.

5. Expenses and Taxes

The Company  will be  responsible  for all  expenses  relating to the  Offering,
whether or not it is completed, including, without limitation:

(a) all fees, disbursements and taxes of the legal counsel,  auditors,  printers
and any other consultants or service providers of the Company that it retains in
connection with the Offering; and

(b) all the Agent's  reasonable  out-of-pocket  expenses in connection  with the
Offering,  including, but not limited to, the reasonable fees, disbursements and
taxes  of the  Agent's  Canadian  legal  counsel  (who  may  also  act  for  the
purchasers) to a maximum of $75,000 plus disbursements and applicable taxes, the
reasonable fees and  disbursements  and taxes of the Agent's United States legal
counsel  to a maximum  of  $10,000  and any  reasonable  advertising,  printing,
courier,  telecommunications data search, "roadshow"  presentations,  travel and
other expenses the Agent.

The Company  understands  that all or parts of the fees and  expenses  which the
Company has agreed to pay (or reimburse,  as applicable) to the Agent under this
Agreement  may be  subject  to the  Goods and  Services  Tax  and/or  applicable
provincial  sales tax.  Where any such tax is applicable,  an additional  amount
equal to the  amount of such tax will be charged  to,  and paid by, the  Company
when paying the related fees and expenses.

The Company agrees to reimburse the Agent for all expenses and taxes (subject to
the foregoing  maximum)  promptly upon receipt of an invoice from the Agent.  In
addition,  at the Closing  the Agent will be  entitled  to deduct its  estimated
expenses from the gross proceeds.

6. Conditions of Closing

The  completion  of the Offering will be subject to, and  conditional  on, among
other things, the receipt of (i) all necessary regulatory, director, shareholder
and other required  approvals;  and (ii) favourable legal opinions of counsel to
the Company in connection with the corporate and securities  matters relating to
the Offering to the satisfaction of the Agent's counsel, acting reasonably.

7. Covenants on Issuance/Securities

Except for the  Offering,  the  Company  hereby  agrees  from and after the date
hereof,  not to  issue  or sell  any  common  shares,  securities  or  financial
instruments  convertible or exchangeable  into common shares or any other equity
securities of the Company,  other than to satisfy  existing  instruments  of the
Company  already issued as of the date hereof and disclosed to the Agent,  until
the 60th day following the Going Public Closing Date,  without the prior consent
of the Agent, such consent not to be unreasonably withheld.

<PAGE>

8. Compliance with Laws and Use of Experts

The Company will comply with all  applicable  laws,  regulations  and  policies,
whether domestic,  foreign, national, federal,  provincial,  state or otherwise,
applicable  to the Offering or  applicable  to the Company in the context of the
Offering.  Similarly,  in performing its role  hereunder,  the Agent will comply
with all applicable laws, regulations and policies,  whether domestic,  foreign,
national, federal, provincial, state or otherwise, applicable to its role in the
Offering.

9. Use of the Agent's Advice

The Company acknowledges and agrees that all written and oral opinions,  advice,
analyses,  and  materials  that the  Agent  provides  in  connection  with  this
Agreement or the Offering, other than as expressly to be provided to Prospective
Investors,  are  solely  for the  Company's  benefit  and  internal  use only in
considering  the  Offering.  The  Company  covenants  and  agrees  that  no such
opinions,  advice,  analyses,  or materials  will be used for any other  purpose
whatsoever, or reproduced, disseminated, quoted from or referred to, in whole or
part, at any time, in any manner, or for any purpose,  without the Agent's prior
written consent in each specific instance.

10. Indemnity

The Company agrees to indemnify and save harmless the Agent,  its affiliates and
its respective directors,  officers,  employees,  partners, agents, advisors and
shareholders in accordance with Schedule B hereto,  which schedule forms part of
this  Agreement,  and the  consideration  for which is the entering into of this
Agreement.  Such  indemnity  ("Indemnity")  will be in  addition  to, and not in
substitution  of,  any  liability  that the  Company  or any  other  person  may
otherwise  have to the  Agent or other  indemnities  under  the  Indemnity.  The
Indemnity will apply to all services  contemplated  herein,  including,  without
limitation, any Additional Services contemplated by paragraph 2 hereof.

11. Term and Termination

This Agreement will be effective as of the date hereof and will continue for 180
days thereafter,  unless all parties otherwise agree in writing. If the Offering
does not close by the end of such term,  the  obligations  of the parties  under
this  Agreement  shall  terminate  without  further  action of the  parties,  or
formality  or  notice,  other than the  Company's  obligations  pursuant  to the
following paragraphs:

        Paragraph 5              Expenses and Taxes;
        Paragraph 8              Compliance with Laws & Use of Experts;
        Paragraph 9              Use of the Agent' Advice;
        Paragraph 10             Indemnity;
        Paragraph 15             Advertisements;

each of which will  survive  the  completion  of the  Agreement  hereunder,  any
withdrawal,  termination,  or decision not to proceed with the Offering,  or the
expiry or other termination or purported termination of this Agreement.

<PAGE>

The Agent may  terminate  this letter by notice in writing to the Company at any
time prior to the Closing Date if: (i) the Agent is not satisfied, in their sole
discretion,  with their due diligence review and  investigations  respecting the
Company,  its business and operations;  (ii) there is in the sole opinion of the
Agent,  a material  change or a change in any material fact or new material fact
shall arise  which would be expected to have an adverse  change or effect on the
business, affairs, or profitability of the Company or on the market price or the
value of the securities of the Company; (iii) the state of the Canadian,  United
States or international  financial  markets is such that, in the sole opinion of
the  Agent,  it  would  be  unprofitable  to offer  or  continue  to  offer  the
Subscription  Receipts for sale; (iv) there should  develop,  occur or come into
effect  any  event  of any  nature,  including  without  limitation,  terrorism,
accident,  or new or change in governmental law or regulation or other condition
or financial occurrence of national or international consequence,  which, in the
sole  opinion  of the  Agent,  adversely  affects  or may  adversely  affect the
financial   markets   generally  or  the   business,   affairs,   operations  or
profitability of the Company or its subsidiaries or the market price or value of
the  securities of the Company;  (v) any inquiry,  action,  suit,  proceeding or
investigation  (whether  formal or informal)  (including  matters of  regulatory
transgression  or unlawful  conduct),  is commenced,  announced or threatened in
relation to the Company or any one of the  officers or  directors of the Company
or any of its principal  shareholders  which may have a material adverse affect;
(vi)  any  order  to cease  trading  in  securities  of the  Company  is made or
threatened  by a  securities  regulatory  authority;  or (vii) the Company is in
breach of a term,  condition or covenant of this letter or the  Agreement or any
representation  or warranty given by the Company in the Agreement  becomes or is
false.

12. Access to Information and Management

The Company will provide the Agent with all  corporate,  financial and operating
information and  documentation  with respect to the Company and its key officers
and scientific personnel and research  collaborators,  the Subscription Receipts
and the  Offering in order to permit such due  diligence  investigations  as the
Agent,  in its  discretion  acting  reasonably,  determines to be appropriate in
respect of the Offering.  It will also provide access to its senior  management,
facilities,   employees,  auditors,  legal  counsel  and  consultants  which  is
reasonably necessary and sufficient to allow the Agent to perform their services
hereunder.  The  Company  agrees to allow the Agent and its  representatives  to
conduct all due diligence  investigations  which they may reasonably  require in
order to fulfill their  obligations in connection  with the Offering.  The Agent
acknowledges that all information provided them or their advisers by the Company
or Tremblant  pursuant to this agreement is confidential,  the Agent agrees that
it shall maintain such information in confidence and that such information shall
not be used  other  than  in  furtherance  of the  purposes  of this  agreement,
provided that this confidentiality obligation shall not apply to (a) information
now in the public domain,  (b)  information  which  subsequently  becomes public
other  than  through  breach  by the  Agent of its  obligations  hereunder,  (c)
information  disclosed  to the Agent by third  parties  in respect of which such
third parties are not under an obligation of  confidentiality or (d) information
which is required by law to be disclosed. The Agent's representatives, including
professional consultants, shall be made aware of and be bound by this provision.

13. Material Changes

The  Company  will  promptly  advise  the  Agent in  writing  of any  actual  or
contemplated  material  change to its affairs or any information it has provided
to the Agent with  respect to the  Company,  the  Subscription  Receipts  or the
Offering. Unless so advised, the Agent will be entitled to assume that there has
been no material change to such information and,  accordingly,  will be entitled
to rely on it. The Company  hereby  represents and warrants to the Agent that as
of the  date of this  Agreement  there  is no  undisclosed  material  change  or
material fact relating to the Company.

<PAGE>

The Company  will  promptly  notify the Agent of any notice from any judicial or
regulatory  authority  requesting  any  information  or meeting or initiating or
threatening any hearing or other regulatory disciplinary process with respect to
the  Company,  its  affairs,  the  Offering,  or of any other  event or state of
affairs that could reasonably be considered  relevant to the Agent or any of the
Prospective Investors.

If, prior to the completion of the Offering,  there is an actual or contemplated
material  change or event,  or if the Company  discovers any fact or information
which,  acting  reasonably,  it believes is material or any other materials used
with respect to the Offering, it will:

(a)      notify the Agent in writing of the full particulars thereof;

(b) with the Agent's input,  prepare,  file and distribute such amendment in the
manner permitted or required pursuant to all applicable  securities  legislation
or any order from the relevant authorities and/or courts; and

(c)  provide  the Agent with such  number of copies of the  amendment  as it may
reasonably request.

The Company covenants that if there is any uncertainty  whatsoever as to whether
a matter  constitutes  or may  constitute a material  change or event,  it shall
immediately disclose such change or event to the Agent.

14. Agency Agreement

The parties  intend to  negotiate a  definitive  agency  agreement  (the "Agency
Agreement") in good faith,  reflecting the terms of this Agreement,  subject to,
among  other  things,  satisfactory  completion  of the  Agent's  due  diligence
investigations,  no  adverse  material  change  relating  to  the  Company,  and
favorable market conditions.

The  Company and the Agent will enter into the Agency  Agreement  on the Closing
Date in a form customary for similar private placement transactions.  The Agency
Agreement   will   contain,   among  other   things,   complete  and   customary
representations  and  warranties  from the Company and the Agent,  an exhaustive
Indemnity and customary market-out, disaster-out,  inquiry-out,  material-change
and market-out termination provisions.

15. Advertisements

If the Agent so requests (but otherwise not without the Agent's prior  approval,
not to be  unreasonably  withheld),  the Company will include a reference to the
Agent and its role with  respect to the  Offering in any press  release or other
public  communication  it issues in respect of the Offering.  If the Offering is
successfully  completed,  provided  the Agent is not in  breach of any  material
provision  hereof,  the Company will permit the Agent to publish,  at the Agent'
own expense,  such  advertisements or announcements  relating to the services it
provided  hereunder  in  such  newspaper  or  other  publications  as the  Agent
considers appropriate.

16. Escrow of Proceeds

The  proceeds  from the  Offering,  less the  expenses  and fees  payable by the
Company to the Agent  hereunder,  shall be  deposited  into escrow (the  "Escrow
Proceeds")  with a third party trust company  acting as escrow agent pursuant to
the terms of an escrow  agreement  (the "Escrow  Agreement")  to be entered into
among the escrow  agent,  the Company and the Agent and shall be released on the
Going Public Closing Date,  provided the Agent has not called for release of the
Escrowed Proceeds to subscribers  beforehand in accordance with the terms of the
Escrow Agreement.

<PAGE>

The Company agrees to provide the necessary funds to cover any shortfall between
the Escrow Proceeds and the amount to be returned to subscribers.

17. Right of First Refusal

The  Agent  shall  have a  right  of  first  refusal  to act as  lead  agent  or
underwriter with respect to any equity or debt-related offering of securities of
the Company where an investment  dealer is or proposes to be involved during the
period  ending 18 months  after the  Closing,  as follows:  (a) in a bought deal
offering,  the Agent  shall  have a right of first  refusal  in  respect  of the
offering,  to be  exercised  within the context of the time limits  contained in
such proposed bought deal offering; (b) in a non-bought deal offering, the Agent
shall have a period of five days from the date of receipt of written notice from
the Company of any such  proposed  financing,  in which notice the Company shall
set forth in detail the terms of such proposed equity or debt-related  offering,
to provide  written notice to the Company that the Agent intends to exercise its
right of first  refusal.  If the Agent does not give written  notice within such
five day period,  it shall be deemed to have waived its right in respect of such
transaction.  Should  the  Agent  fail to give  notice  within  five days of the
receipt of the Company's notice, the Company may then make other arrangements to
engage  another  source to obtain  financing on terms no less  favourable to the
Company for a period of 60 days  thereafter.  The Agent's waiver of its right in
respect  of any one or more  transactions  will not  constitute  a waiver of its
right of first refusal in respect of any other transaction. If another source is
not engaged in connection with a transaction where the Agent waives or is deemed
to have waived its right of first refusal  within 60 days  following the date on
which the five day period set forth  above  expires,  the  transaction  shall be
deemed to be a new  transaction  requiring the Company to give written notice to
the Agent as set forth above.

18. Notices

Any notice or other  communication  required or permitted to be given under this
Agreement will be in writing and delivered to:

        The Company:                        Loretta Food Group Inc.
                                            2405 Lucknow Drive
                                            Mississauga, ON  L5S 1H9

                                            Attention:       Al Burgio,
                                                             President and CEO

                                            Fax:             (905) 678-0733

        On behalf of all Agent:             Dundee Securities Corporation
                                            4th Floor
                                            20 Queen Street West
                                            Toronto, ON  M5H 3R3

                                            Attention:       David G. Anderson

                                            Fax:             (416) 350-3281

The parties may change their respective addresses for notices by notice given in
the manner set out above.

<PAGE>

Any notice or other communication will be in writing and delivered as follows:

(a) personally to the addressee or to a responsible officer of the addressee, as
applicable, and deemed to be given when so delivered; or

(b) by  telecopier  and  deemed to have been given on the  second  business  day
following the day on which it was sent,  with receipt  confirmed by the sender's
fax machine.

19. Successors and Assigns

This  Agreement  will enure to the benefit of, and be binding upon,  the parties
hereto and their respective  successors and assigns;  provided that no party may
assign this Agreement or any rights or obligations  hereunder  without the prior
written consent of the other.

20. Governing Law

This  Agreement is made pursuant to, and will be construed in  accordance  with,
the laws of the Province of Ontario and the laws of Canada  applicable  therein,
in each case without  reference to  conflicts of law rules.  The parties  hereby
submit  to the  non-exclusive  jurisdiction  of the  courts of the  Province  of
Ontario.

21. Acknowledgement of the Agent's Activities

The Company acknowledges the following:

(a) the Agent is a  full-service  securities  firm engaged in foreign  exchange,
securities trading and brokerage  activities,  as well as investment banking and
financial advisory services; and

(b) in the ordinary course of such activities, the Agent and its affiliates may,
for its own account or for its clients'  accounts,  hold long or short positions
and may trade or otherwise effect  transactions in debt or equity  securities or
related derivative  securities of the Company's competitors or any other company
that may be involved in a private placement.

<PAGE>

The Agent would welcome the  opportunity  to act with respect to the Offering on
behalf of the  Company.  Should you wish to accept this  offer,  please sign and
return  one copy of this  letter  to their  attention  at or  before  5:00  p.m.
(Montreal time) on April 15, 2005,  whereupon this letter shall become a binding
agreement. This letter may be signed in one or more counterparts (by original or
facsimile  signature),  each of which when so executed  shall be deemed to be an
original,  and such  counterparts  together  shall  constitute  one and the same
instrument.

The parties  acknowledge  that they have  required  that this  Agreement and all
documents,  notices and  correspondence  relating directly or indirectly to this
Agreement be prepared in English.  Les parties  reconnaissent avoir exige que la
presente  convention et tous les documents,  avis et  correspondance y afferents
directement ou indirectement soient rediges en anglais.

Yours truly,

DUNDEE SECURITIES CORPORATION

Per:   /s/ David Anderson
-------------------------
           David Anderson

The foregoing is in accordance with our understanding, and the Company agrees to
it as of the date first written above.

LORETTA FOOD GROUP INC.

Per:  /s/ Al Burgio
-------------------
          Al Burgio
  President and CEO

<PAGE>

                                   SCHEDULE A
                                   TERM SHEET

                             LORETTA FOOD GROUP INC.
               PRIVATE PLACEMENT OFFERING OF SUBSCRIPTION RECEIPTS

Issuer:                             Loretta Food Group Inc. (the "Company")

Description of Issuer:       The Company  manufactures  and distributes  branded
                             and private  label food and  food-related  products
                             and is a not a reporting issuer for the purposes of
                             Canadian   securities   laws  and  is  a  U.S.  SEC
                             reporting company.

Issue:                       A best-efforts  private  placement of  subscription
                             receipts of the Company  ("Subscription  Receipts")
                             at a  price  of  $0.27  per  Subscription  Receipt.
                             Immediately  prior to  completion  of a transaction
                             ("Going  Public  Transaction")  with CPVC Tremblant
                             Inc.,  or  another  public  company  listed  on TSX
                             Venture Exchange,  each  Subscription  Receipt will
                             automatically  be converted  into  one-third of one
                             common share (a "Common  Share") of the Company (or
                             in the event that the Going Public  Transaction has
                             not been completed prior to the 4 month anniversary
                             of the closing of the sale of Subscription Receipts
                             in escrow,  0.3667 Common Shares),  which will then
                             be exchanged for shares of CPVC  Tremblant  Inc. It
                             being  understood  that a Going Public  Transaction
                             will not be completed if such  transaction  were to
                             have   material   adverse  tax   consequences,   as
                             determined by the Agent, acting reasonably,  on the
                             purchasers  for  the  Subscription   Receipts.  The
                             mechanics of the Subscription  Receipts shall be as
                             agreed in the Agency Agreement.

Escrow:                      The net  proceeds of the  offering of  Subscription
                             Receipts  will be placed in escrow  pursuant  to an
                             escrow   agreement   among  the   Company,   Dundee
                             Securities  Corporation  and an escrow  agent which
                             shall provide that such funds shall not be released
                             to the Company  until the closing of a Going Public
                             Transaction.  In  the  event  that a  Going  Public
                             Transaction  is not completed  prior to the 6 month
                             anniversary closing of the offering of Subscription
                             Receipts   in  escrow,   holders  of   Subscription
                             Receipts   shall  be  entitled   to  remove   their
                             respective  subscription  funds  from  escrow.  The
                             Company  agrees to provide the  necessary  funds to
                             cover any  shortfall  between  the  amount  held in
                             escrow and the amount to be returned to subscribers
                             (not to exceed the amount of the Agent's commission
                             and expenses).

<PAGE>

Amount:                      A minimum of  5,555,400  Subscription  Receipts for
                             gross  proceeds  of  $1,500,000  and a  maximum  of
                             11,111,100 Subscription Receipts for gross proceeds
                             of $3,000,000.

Price:                       CDN$0.27 per Subscription Receipt.

Closing Date:                On or about May 27, 2005, or such other date as the
                             Company and the Agent may agree,  provided  that it
                             shall occur as soon as reasonably possible.

Hold Period:                 The Common Shares  issuable upon the closing of the
                             Going Public  Transaction  will be freely tradeable
                             in  Canada  and  no  Canadian  resale  restrictions
                             attached  to them other than  those  applicable  to
                             sales by control persons.

Offering Jurisdictions:      The offering  jurisdictions  for this offering will
                             be  such  provinces  as the  Agent  may  designate,
                             including British Columbia, Alberta,  Saskatchewan,
                             Manitoba, Quebec and Ontario pursuant to Regulation
                             S of the US Securities Act of 1933, as amended.. At
                             the discretion of the Agent and upon consent by the
                             Company,  not  to  be  unreasonably  withheld.  The
                             Subscription  Receipts  will  not  be  sold  to  US
                             investors.

Qualified Investors:         Accredited   investors,   as   defined   under  the
                             applicable  securities  laws,  rules or policies in
                             the respective jurisdictions.

Use of Proceeds:             Working capital.

Agent:                       Dundee Securities Corporation

AGENT'S COMPENSATION:

Commission:                  A cash  commission  of 8% of the gross  proceeds of
                             the Offering will be paid to the Agent  pursuant to
                             the Agency Agreement.

Compensation Options:        Compensation  Options  to  acquire  such  number of
                             Common  Shares equal to 10% of 1/3 of the number of
                             Subscription  Receipts  sold under this Offering by
                             the Agent,  at a price of $0.81 per  Common  Share,
                             exercisable  until the 18 month  anniversary of the
                             Closing  Date,  such  options  to be granted to the
                             Agent and to be distributed in accordance  with the
                             Agency Agreement.  Any Compensation  Options issued
                             pursuant to the Offering will be exchanged pursuant
                             to the Business  Combination  at the same  exchange
                             ratio as the Common Shares.

Expenses:                    The Company will be responsible for all the Agent's
                             reasonable  out-of-pocket  expenses  in  connection
                             with the Offering,  including,  but not limited to,
                             the reasonable fees, disbursements and taxes of the
                             Agent's  Canadian  legal  counsel (who may also act
                             for the  purchasers)  to a maximum of $75,000  plus
                             disbursements  and applicable taxes, the reasonable
                             fees and  disbursements  and  taxes of the  Agent's
                             United States legal counsel to a maximum of $10,000
                             and any reasonable advertising,  printing, courier,
                             telecommunications    data    search,    "roadshow"
                             presentations, travel and other expenses the Agent.

<PAGE>

                                   SCHEDULE B
                                    INDEMNITY

In consideration for the Agent accepting the engagement  ("Engagement") pursuant
to the  agreement to which this  Schedule B is attached,  the Company  agrees to
indemnify  and save  harmless  the  Agent,  its  affiliates  and its  respective
directors,  officers,  employees,  partners,  agents,  advisors and shareholders
(collectively,  the  "Indemnified  Parties" and  individually,  an  "Indemnified
Party")  from  and  against  any  and  all  losses,  claims,   actions,   suits,
proceedings,  damages,  liabilities  or  expenses of  whatsoever  nature or kind
(excluding  loss of profit),  including the aggregate  amount paid in reasonable
settlement of any actions, suits, proceedings,  investigations or claims and the
reasonable fees, disbursements and taxes of their counsel in connection with any
action, suit, proceeding,  investigation or claim that may be made or threatened
against any  Indemnified  Party or in enforcing  this  indemnity  (collectively,
"Claims") to which an Indemnified Party may become subject or otherwise involved
in any capacity insofar as the Claims relate to this engagement,  other than any
Claims based solely on the gross negligence,  fraudulent act or bad faith of the
Indemnified Party.

The Company agrees to waive any right the Company might have of first  requiring
the  Indemnified  Party to proceed  against or enforce any other  right,  power,
remedy or security or claim payment from any other person before  claiming under
this  indemnity.  The  Company  agrees that no  Indemnified  Party will have any
liability (whether direct or indirect,  in contract,  tort, or otherwise) to the
Company or any person  asserting  claims on behalf of or in right of the Company
for or in  connection  with this  Engagement  except to the extent  any  losses,
actions, damages or liabilities incurred by the Company or any such other person
are  determined by a court of competent  jurisdiction  in a final judgment which
has become  non-appealable to have resulted primarily from the gross negligence,
fraudulent act or bad faith of such Indemnified Party.

In case any  action,  suit,  proceeding  or claim is  brought or  threatened  in
writing against an Indemnified Party or an Indemnified Party has received notice
of the  commencement of any  investigation  in respect of which indemnity may be
sought against the Company,  the Indemnified  Party will give the Company prompt
written notice of any such action, suit, proceeding,  claim or investigation (or
threat of same, in writing) of which the Indemnified Party has knowledge and the
Company will undertake the  investigation  and defence  thereof on behalf of the
Indemnified Party,  including the prompt employment of counsel acceptable to the
Indemnified Party (acting reasonably)  affected and the payment of all expenses.
Delay or failure by the  Indemnified  Party to so notify  will not  relieve  the
Company of its obligation of  indemnification  hereunder unless (and only to the
extent that) such failure  results in prejudice to the Company in the defence of
such action, suit, proceeding, investigation or claim or results in any material
increase in the liability which the Company has under this indemnity.

No admission of liability and no  settlement,  compromise or  termination of any
action,  suit,  proceeding,  claim,  or  investigation  will be made without the
Company's  consent and the consent of the  Indemnified  Parties  affected;  such
consents not to be unreasonably  withheld or delayed.  Notwithstanding  that the
Company  will  undertake  the   investigation  and  defence  of  any  Claim,  an
Indemnified Party will have the right to employ separate counsel with respect to
any Claim and participate in the defence  thereof,  but the fees and expenses of
such counsel will be at the expense of the Indemnified Party unless:

(a) employment of such counsel has been authorized in writing by the Company;

(b) the Company has not  assumed  the defence of the Claim  within a  reasonable
period of time after receiving notice of the Claim or threatened Claim;

<PAGE>

(c) the  named  parties  to any such  claim  include  both the  Company  and the
Indemnified  Party and the Indemnified  Party has been advised by counsel to the
Indemnified  Party that there may be a conflict of interest  between the Company
and the Indemnified Party; or

(d) there are one or more defences  available to the Indemnified Party which are
different from or in addition to those available to the Company,

in which case such fees and  expenses of such counsel to the  Indemnified  Party
will be for the Company's account.

If for any reason the foregoing  indemnification  is unavailable  (other than in
accordance with the terms hereof) to the Indemnified Parties (or any of them) or
is insufficient to hold them harmless, the Company will contribute to the amount
paid or payable by the  Indemnified  Parties as a result of such  Claims in such
proportion as is appropriate to reflect not only the relative  benefits received
by the Company or the Company's shareholders on the one hand and the Indemnified
Parties on the  other,  but also the  relative  fault of the  parties  and other
equitable  considerations which may be relevant.  Notwithstanding the foregoing,
the Company  will in any event  contribute  to the amount paid or payable by the
Indemnified  Parties  as a result of such Claim any amount in excess of the fees
actually  received by the Indemnified  Parties under the agreement to which this
schedule is attached.

The Company hereby  constitutes the Agent as trustee for any other person who is
an Indemnified Party under this indemnity in respect of the Company's  covenants
under this  indemnity  with  respect to such  persons,  and the Agent  agrees to
accept  such  trust and to hold and  enforce  such  covenants  on behalf of such
persons.

In respect  of a Claim for which  indemnity  is to be  provided  hereunder,  the
Company  agrees to reimburse the Agent monthly for the time spent by the Agent's
personnel  in  connection  with any Claim at their  normal per diem  rates.  The
Company  also  agrees  that if any  action,  suit,  proceeding  or claim will be
brought against, or an investigation  commenced in respect of the Company or the
Company  and the Agent and  personnel  of the Agent will be required to testify,
participate or respond in respect of or in connection with the  Engagement,  the
Agent will have the right to employ its own counsel in  connection  herewith and
the  Company  will  reimburse  the  Agent  monthly  for such  disbursements  and
reasonable  out-of-pocket  expenses  as  may be  incurred,  including  fees  and
disbursements  of the Agent's  counsel;  provided  that,  such  expense  will be
reimbursed  only if the  Agent's  and/or  its  personnel's  request to have such
reimbursement  is on  prior  notice  to and  acceptance  by the  Company,  whose
determination of necessity will prevail.

The rights accorded to the Indemnified  Parties hereunder are in addition to any
rights an Indemnified Party may have at common law or otherwise

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