Document:

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                                  EXHIBIT 4.105

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR ANY OTHER APPLICABLE STATE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PURSUANT TO REGULATION S AND
SUCH OTHER SECURITIES LAWS. THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF
ANY U.S. PERSON, AS SUCH TERM IS DEFINED IN RULE 902 OF REGULATION S OF THE
SECURITIES ACT, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE
PROVISIONS OF THE SECURITIES ACT. NEITHER THIS WARRANT NOR THE SHARES ISSUABLE
UPON EXERCISE HEREOF MAY BE SOLD, PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE
PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE LAWS INCLUDING
REGULATIONS.

                             STOCK PURCHASE WARRANT

                  To Purchase 62,500 Shares of Common Stock of

                           API ELECTRONICS GROUP INC.
                               (the "Corporation")

          THIS CERTIFIES that, for value received, EUSIBIO MARIO LOPEZ PEREZ
(the "Holder"), is entitled, upon the terms and subject to the limitations on
exercise and the conditions hereinafter set forth, at any time on or after
February 6, 2003 (the "Initial Exercise Date") and on or prior to the close of
business on the final calendar day of the 24th month after the Initial Exercise
Date (the "Termination Date") but not thereafter, to subscribe for and purchase
from the Corporation, a corporation incorporated under the laws of Ontario,
Canada, up to 62,500 common shares (the "Warrant Shares"), no par value per
share, of the Corporation (the "Common Stock"). The purchase price of one share
of Common Stock (the "Exercise Price") under this Warrant shall be US$0.60. The
Exercise Price and the number of Warrant Shares for which the Warrant is
exercisable shall be subject to adjustment as provided herein. Capitalized terms
used and not otherwise defined herein shall have the meanings set forth in that
certain Subscription Agreement (the "Purchase Agreement"), dated as of February
6, 2003, between the Corporation and the Holder.

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                                       2

1. Title to Warrant. Prior to the Termination Date and subject to compliance
with applicable laws, this Warrant and all rights hereunder are transferable, in
whole or in part, at the office or agency of the Corporation by the Holder in
person or by duly authorized attorney, upon surrender of this Warrant together
with the Assignment Form annexed hereto properly endorsed.

2. Authorization of Shares. The Corporation covenants that all Warrant Shares
which may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant,
be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges in respect of the issue thereof (other than taxes
in respect of any transfer occurring contemporaneously with such issue).

3. Exercise of Warrant.

     (a)  Except as provided in Section 4 herein, exercise of the purchase
          rights represented by this Warrant may be made at any time or times on
          or after the Initial Exercise Date and on or before the Termination
          Date by the surrender of this Warrant and the Notice of Exercise Form
          annexed hereto duly executed, at the office of the Corporation (or
          such other office or agency of the Corporation as it may designate by
          notice in writing to the registered Holder at the address of such
          Holder appearing on the books of the Corporation) and upon payment of
          the Exercise Price of the shares thereby purchased by wire transfer or
          cashier's check drawn on a United States bank, or by means of a
          cashless exercise, the Holder shall be entitled to receive a
          certificate for the number of Warrant Shares so purchased.
          Certificates for shares purchased hereunder shall be delivered to the
          Holder within three (3) Trading Days after the date on which this
          Warrant shall have been exercised as aforesaid. This Warrant shall be
          deemed to have been exercised and such certificate or certificates
          shall be deemed to have been issued, and Holder or any other person so
          designated to be named therein shall be deemed to have become a holder
          of record of such shares for all purposes, as of the date the Warrant
          has been exercised by payment to the Corporation of the Exercise Price
          and all taxes required to be paid by the Holder, if any, pursuant to
          Section 5 prior to the issuance of such shares, have been paid.

     (b)  If this Warrant shall have been exercised in part, the Corporation
          shall, at the time of delivery of the certificate or certificates
          representing Warrant Shares, deliver to Holder a new Warrant
          evidencing the rights of Holder to purchase the unpurchased Warrant
          Shares called for by this Warrant, which new Warrant shall in all
          other respects be identical with this Warrant.

     (c)  Notwithstanding anything herein to the contrary, in no event shall the
          Holder be permitted to exercise this Warrant for Warrant Shares to the
          extent that (i) the number of shares of Common Stock owned by such
          Holder (other than Warrant Shares issuable upon exercise of this
          Warrant) plus (ii) the number of Warrant Shares issuable upon exercise
          of this Warrant, would be equal to or exceed 4.999% of the number of
          shares of Common Stock then issued and outstanding, including shares
          issuable upon exercise of this Warrant held by such Holder after
          application of this Section 3(c). As used herein, beneficial ownership
          shall be

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                                       3

          determined in accordance with Section 13(d) of the Exchange Act. To
          the extent that the limitation contained in this Section 3(c) applies,
          the determination of whether this Warrant is exercisable (in relation
          to other securities owned by the Holder) and of which a portion of
          this Warrant is exercisable shall be in the sole discretion of such
          Holder, and the submission of a Notice of Exercise shall be deemed to
          be such Holder's determination of whether this Warrant is exercisable
          (in relation to other securities owned by such Holder) and of which
          portion of this Warrant is exercisable, in each case subject to such
          aggregate percentage limitation, and the Corporation shall have no
          obligation to verify or confirm the accuracy of such determination.
          Nothing contained herein shall be deemed to restrict the right of a
          Holder to exercise this Warrant into Warrant Shares at such time as
          such exercise will not violate the provisions of this Section 3(c).
          The provisions of this Section 3(c) may be waived by the Holder upon,
          at the election of the Holder, not less than 61 days' prior notice to
          the Corporation, and the provisions of this Section 3(c) shall
          continue to apply until such 61st day (or such later date, as
          determined by the Holder, as may be specified in such notice of
          waiver). No exercise of this Warrant in violation of this Section 3(c)
          but otherwise in accordance with this Warrant shall affect the status
          of the Warrant Shares as validly issued, fully-paid and nonassessable.

4. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Corporation shall pay a cash adjustment in respect of such
final fraction in an amount equal to such fraction multiplied by the Exercise
Price.

5. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares
shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Corporation, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; provided, however, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder; and the Corporation
may require, as a condition thereto, the payment of a sum sufficient to
reimburse it for any transfer tax incidental thereto.

6. Closing of Books. The Corporation will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant.

7. Transfer, Division and Combination.

     (a)  Subject to compliance with any applicable securities laws, transfer of
          this Warrant and all rights hereunder, in whole or in part, shall be
          registered on the books of the Corporation to be maintained for such
          purpose, upon surrender of this Warrant at the principal office of the
          Corporation, together with a written assignment of this Warrant
          substantially in the form attached hereto duly executed by the Holder
          or its agent or attorney and funds sufficient to pay any transfer
          taxes payable upon

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                                       4

          the making of such transfer. In the event that the Holder wishes to
          transfer a portion of this Warrant, the Holder shall transfer at least
          25,000 shares underlying this Warrant to any such transferee. Upon
          such surrender and, if required, such payment, the Corporation shall
          execute and deliver a new Warrant or Warrants in the name of the
          assignee or assignees and in the denomination or denominations
          specified in such instrument of assignment, and shall issue to the
          assignor a new Warrant evidencing the portion of this Warrant not so
          assigned, and this Warrant shall promptly be cancelled. A Warrant, if
          properly assigned, may be exercised by a new holder for the purchase
          of Warrant Shares without having a new Warrant issued. Notwithstanding
          the above, the Holder shall not transfer this Warrant or any rights
          hereunder to any person or entity which is then engaged in a business
          that is in the reasonable judgement of the Corporation is in direct
          competition with the Corporation.

     (b)  This Warrant may be divided or combined with other Warrants upon
          presentation hereof at the aforesaid office of the Corporation,
          together with a written notice specifying the names and denominations
          in which new Warrants are to be issued, signed by the Holder or its
          agent or attorney. Subject to compliance with Section 7(a), as to any
          transfer which may be involved in such division or combination, the
          Corporation shall execute and deliver a new Warrant or Warrants in
          exchange for the Warrant or Warrants to be divided or combined in
          accordance with such notice.

     (c)  The Corporation shall prepare, issue and deliver at its own expense
          (other than transfer taxes) the new Warrant or Warrants under this
          Section 7.

     (d)  The Corporation agrees to maintain, at its aforesaid office, books for
          the registration and the registration of transfer of the Warrants.

8. No Rights as Shareholder until Exercise. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Corporation
prior to the exercise hereof. Upon the surrender of this Warrant and the payment
of the aggregate Exercise Price or by means of a cashless exercise, the Warrant
Shares so purchased shall be and be deemed to be issued to such Holder as the
record owner of such shares as of the close of business on the later of the date
of such surrender or payment.

9. Loss, Theft, Destruction or Mutilation of Warrant. The Corporation covenants
that upon receipt by the Corporation of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Corporation will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday, Sunday or a

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                                       5

legal holiday, then such action may be taken or such right may be exercised on
the next succeeding day not a Saturday, Sunday or legal holiday.

11. Adjustments of Exercise Price and Number of Warrant Shares/Stock Splits,
etc. The number and kind of securities purchasable upon the exercise of this
Warrant and the Exercise Price shall be subject to adjustment from time to time
upon the happening of any of the following. In case the Corporation shall (i)
pay a dividend in shares of Common Stock or make a distribution in shares of
Common Stock to holders of its outstanding Common Stock, (ii) subdivide its
outstanding shares of Common Stock into a greater number of shares, (iii)
combine its outstanding shares of Common Stock into a smaller number of shares
of Common Stock, or (iv) issue any shares of its capital stock in a
reclassification of the Common Stock, then the number of Warrant Shares
purchasable upon exercise of this Warrant immediately prior thereto shall be
adjusted so that the Holder shall be entitled to receive the kind and number of
Warrant Shares or other securities of the Corporation which it would have owned
or have been entitled to receive had such Warrant been exercised in advance
thereof. Upon each such adjustment of the kind and number of Warrant Shares or
other securities of the Corporation which are purchasable hereunder, the Holder
shall thereafter be entitled to purchase the number of Warrant Shares or other
securities resulting from such adjustment at an Exercise Price per Warrant Share
or other security obtained by multiplying the Exercise Price in effect
immediately prior to such adjustment by the number of Warrant Shares purchasable
pursuant hereto immediately prior to such adjustment and dividing by the number
of Warrant Shares or other securities of the Corporation resulting from such
adjustment. An adjustment made pursuant to this paragraph shall become effective
immediately after the effective date of such event retroactive to the record
date, if any, for such event.

12. Reorganization, Reclassification, Merger, Consolidation or Disposition of
Assets. In case the Corporation shall reorganize its capital, reclassify its
capital stock, consolidate or merge with or into another corporation (where the
Corporation is not the surviving corporation or where there is a change in or
distribution with respect to the Common Stock of the Corporation), or sell,
transfer or otherwise dispose of all or substantially all its property, assets
or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("Other
Property"), are to be received by or distributed to the holders of Common Stock
of the Corporation, then the Holder shall have the right thereafter to receive,
at their option, (a) upon exercise of this Warrant, the number of shares of
Common Stock of the successor or acquiring corporation or of the Corporation, if
it is the surviving corporation, and Other Property receivable upon or as a
result of such reorganization, reclassification, merger, consolidation or
disposition of assets by a Holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such event, or (b) cash
equal to the value of this Warrant as determined in accordance with the
Black-Sholes option pricing formula. In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Corporation) shall expressly assume
the due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Corporation and
all the obligations and liabilities hereunder, subject to such modifications as

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                                       6

may be deemed appropriate (as determined in good faith by resolution of the
Board of Directors of the Corporation) in order to provide for adjustments of
Warrant Shares for which this Warrant is exercisable which shall be as nearly
equivalent as practicable to the adjustments provided for in this Section 12.
For purposes of this Section 12, "common stock of the successor or acquiring
corporation" shall include stock of such corporation of any class which is not
preferred as to dividends or assets over any other class of stock of such
corporation and which is not subject to redemption and shall also include any
evidences of indebtedness, shares of stock or other securities which are
convertible into or exchangeable for any such stock, either immediately or upon
the arrival of a specified date or the happening of a specified event and any
warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 12 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

13. Voluntary Adjustment by the Corporation. The Corporation may at any time
during the term of this Warrant reduce the then current Exercise Price to any
amount and for any period of time deemed appropriate by the Board of Directors
of the Corporation.

14. Notice of Adjustment. Whenever the number of Warrant Shares or number or
kind of securities or other property purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Corporation
shall promptly mail by registered or certified mail, return receipt requested,
to the Holder notice of such adjustment or adjustments setting forth the number
of Warrant Shares (and other securities or property) purchasable upon the
exercise of this Warrant and the Exercise Price of such Warrant Shares (and
other securities or property) after such adjustment, setting forth a brief
statement of the facts requiring such adjustment and setting forth the
computation by which such adjustment was made. Such notice, in the absence of
manifest error, shall be conclusive evidence of the correctness of such
adjustment.

15. Notice of Corporate Action. If at any time:

     (a) the Corporation shall take a record of the holders of its Common Stock
for the purpose of entitling them to receive a dividend or other distribution,
or any right to subscribe for or purchase any evidences of its indebtedness, any
shares of stock of any class or any other securities or property, or to receive
any other right, or

     (b) there shall be any capital reorganization of the Corporation, any
reclassification or recapitalization of the capital stock of the Corporation or
any consolidation or merger of the Corporation with, or any sale, transfer or
other disposition of all or substantially all the property, assets or business
of the Corporation to, another corporation or,

     (c) there shall be a voluntary or involuntary dissolution, liquidation or
winding up of the Corporation;

then, in any one or more of such cases, the Corporation shall give to Holder (i)
at least 20 days' prior written notice of the date on which a record date shall
be selected for such dividend, distribution or right or for determining rights
to vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer,

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                                       7

disposition, dissolution, liquidation or winding up, at least 20 days' prior
written notice of the date when the same shall take place. Such notice in
accordance with the foregoing clause also shall specify (i) the date on which
any such record is to be taken for the purpose of such dividend, distribution or
right, the date on which the holders of Common Stock shall be entitled to any
such dividend, distribution or right, and the amount and character thereof, and
(ii) the date on which any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up is to take place and the time, if any such time is to be fixed, as of which
the holders of Common Stock shall be entitled to exchange their Warrant Shares
for securities or other property deliverable upon such disposition, dissolution,
liquidation or winding up. Each such written notice shall be sufficiently given
if addressed to Holder at the last address of Holder appearing on the books of
the Corporation and delivered in accordance with Section 17(d).

16. Authorized Shares. The Corporation covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The
Corporation further covenants that its issuance of this Warrant shall constitute
full authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The
Corporation will take all such reasonable action as may be necessary to assure
that such Warrant Shares may be issued as provided herein without violation of
any applicable law or regulation, or of any requirements of the principal market
upon which the Common Stock may be listed.

     The Corporation shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder
against impairment. Without limiting the generality of the foregoing, the
Corporation will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Corporation may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (c) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Corporation to perform its obligations under this Warrant.

     Before taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the Exercise
Price, the Corporation shall obtain all such authorizations or exemptions
thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

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                                       8

17. Miscellaneous.

     (a)  Jurisdiction. This Warrant shall constitute a contract under the laws
          of Ontario, without regard to its conflict of law, principles or
          rules, and be subject to arbitration pursuant to the terms set forth
          in the Purchase Agreement.

     (b)  Restrictions. The Holder acknowledges that the Warrant Shares acquired
          upon the exercise of this Warrant, if not registered, will have
          restrictions upon resale imposed by state and federal securities laws.

     (c)  Nonwaiver and Expenses. No course of dealing or any delay or failure
          to exercise any right hereunder on the part of Holder shall operate as
          a waiver of such right or otherwise prejudice Holder's rights, powers
          or remedies, notwithstanding all rights hereunder terminate on the
          Termination Date. If the Corporation willfully and knowingly fails to
          comply with any provision of this Warrant, which results in any
          material damages to the Holder, the Corporation shall pay to Holder
          such amounts as shall be sufficient to cover any costs and expenses
          including, but not limited to, reasonable attorneys' fees, including
          those of appellate proceedings, incurred by Holder in collecting any
          amounts due pursuant hereto or in otherwise enforcing any of its
          rights, powers or remedies hereunder.

     (d)  Notices. Any notice, request or other document required or permitted
          to be given or delivered to the Holder by the Corporation shall be
          delivered in accordance with the notice provisions of the Purchase
          Agreement.

     (e)  Limitation of Liability. No provision hereof, in the absence of
          affirmative action by Holder to purchase Warrant Shares, and no
          enumeration herein of the rights or privileges of Holder, shall give
          rise to any liability of Holder for the purchase price of any Common
          Stock or as a stockholder of the Corporation, whether such liability
          is asserted by the Corporation or by creditors of the Corporation.

     (f)  Remedies. Holder, in addition to being entitled to exercise all rights
          granted by law, including recovery of damages, will be entitled to
          specific performance of its rights under this Warrant. The Corporation
          agrees that monetary damages would not be adequate compensation for
          any loss incurred by reason of a breach by it of the provisions of
          this Warrant and hereby agrees to waive the defense in any action for
          specific performance that a remedy at law would be adequate.

     (g)  Successors and Assigns. Subject to applicable securities laws, this
          Warrant and the rights and obligations evidenced hereby shall inure to
          the benefit of and be binding upon the successors of the Corporation
          and the successors and permitted assigns of Holder. The provisions of
          this Warrant are intended to be for the benefit of all Holders from
          time to time of this Warrant and shall be enforceable by any such
          Holder or holder of Warrant Shares.

     (h)  Amendment. This Warrant may be modified or amended or the provisions
          hereof waived with the written consent of the Corporation and the
          Holder.

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                                       9

     (i)  Severability. Wherever possible, each provision of this Warrant shall
          be interpreted in such manner as to be effective and valid under
          applicable law, but if any provision of this Warrant shall be
          prohibited by or invalid under applicable law, such provision shall be
          ineffective to the extent of such prohibition or invalidity, without
          invalidating the remainder of such provisions or the remaining
          provisions of this Warrant.

     (j)  Headings. The headings used in this Warrant are for the convenience of
          reference only and shall not, for any purpose, be deemed a part of
          this Warrant.

                              *********************

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                                       10

          IN WITNESS WHEREOF, the Corporation has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated: February 6, 2003

                                        API ELECTRONICS GROUP INC.

                                        By:
                                           -------------------------------------
                                           Name: JASON DEZWIREK
                                           Title: Chairman

<PAGE>

                               NOTICE OF EXERCISE

To: API ELECTRONICS GROUP INC.

1.The undersigned hereby elects to purchase             Warrant Shares (the
                                            -----------
"Common Stock"), of API Electronics Group Inc. pursuant to the terms of the
attached Warrant, and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

2. Please issue a certificate or certificates representing said Warrant Shares
in the name of the undersigned or in such other name as is specified below:

          -------------------------------

The Warrant Shares shall be delivered to the following:

          -------------------------------

          -------------------------------

          -------------------------------

                                        EUSIBIO MARIO LOPEZ PEREZ

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                        Dated:
                                               ---------------------------------

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

          FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

                                                                whose address is
---------------------------------------------------------------

-------------------------------------------------------------------------------

                                                                               .
-------------------------------------------------------------------------------

Dated:
       -------------, --------

Holder's Signature:
                    ------------------------------

Holder's Address:
                  --------------------------------

                  --------------------------------

Signature Guaranteed:
                      -------------------------------------------------

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust Corporation.
Officers of corporations and those acting in an fiduciary or other
representative capacity should file proper evidence of authority to assign the
foregoing Warrant.<PAGE>

                                  EXHIBIT 4.106

                           API ELECTRONICS GROUP INC.

                             SUBSCRIPTION AGREEMENT

<PAGE>

                                       1

                           API ELECTRONICS GROUP INC.

                             SUBSCRIPTION AGREEMENT

                                            DATED the 3rd day of February, 2003.

TO: API ELECTRONICS GROUP INC. (the "Corporation")

RE: Subscription for and Purchase of Units of the Corporation

     References below to "this Subscription Agreement" are to be read as
references to the agreement resulting from the Corporation's acceptance of your
offer. All dollar amounts referred to herein are in United States dollars.

     The Purchased Securities (as hereinafter defined) may be subject to
statutory hold periods during which they may not be resold, as well as certain
other statutory restrictions on resale. Subscribers are advised to consult their
own legal advisers in connection with any applicable resale restrictions.

1.   Definitions

     In this Subscription Agreement:

     (a)  "Closing" has the meaning ascribed in Section 6 of this Subscription
          Agreement;

     (b)  "Closing Date" means February 6, 2003, or such earlier or later date
          as the Corporation and Subscriber shall mutually agree;

     (c)  "Closing Time" means 2:00 p.m. on the Closing Date, or such earlier or
          later time as the Corporation and Subscriber shall mutually agree;

     (d)  "Common Shares" means common shares in the capital stock of the
          Corporation;

     (e)  "Corporation" means API Electronics Group Inc.;

     (f)  "Purchased Securities" means the Common Shares and Warrants comprising
          the Purchased Units and the Common Shares issuable upon the exercise
          of such Warrants;

     (g)  "Purchased Units" means 650,000 Units in the capital stock of the
          Corporation;

     (h)  "Subscriber" means Thomas Christen;

     (i)  "Subscription Price" means US$0.40 per Unit;

     (j)  "Total Subscription Price" means US$260,000 (650,000 Units x US$0.40
          per Unit);

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                                       2

     (k)  "Unit" means one (1) Common Share issued for US$0.40 and one-half
          (1/2) Warrant; and

     (l)  "Warrant" means a purchase warrant granting the right to purchase one
          Common Share at a purchase price of US$0.60 per Common Share
          exercisable for a period of two (2) years after Closing, all as more
          particularly set out in and in substantially the form attached hereto
          as Exhibit "B".

2.   Purchase of Units

     The undersigned (the "Subscriber") hereby irrevocably subscribes for and
agrees to purchase from the Corporation, subject to the terms and conditions set
forth herein, the Purchased Units in consideration of payment of the Total
Subscription Price.

3.   Acknowledgements of the Subscriber

     Subscriber acknowledges and agrees that:

     (a)  It has not received an offering memorandum or similar document and
          that its decision to enter into this Subscription Agreement and to
          purchase the Purchased Units has not been made upon any verbal or
          written representation as to fact or otherwise made by the Corporation
          or any other person associated therewith and that its decision is
          based entirely upon publicly available information concerning the
          Corporation and the representations of the Corporation contained
          herein, including the documents delivered in connection herewith.

     (b)  The distribution of the Purchased Units is being made on a private
          placement basis and has not been qualified pursuant to the securities
          laws of any province or territory of Canada, and any transaction
          involving the Purchased Units in any province or territory of Canada
          may constitute a violation of applicable Canadian provincial
          securities legislation unless carried out pursuant to an applicable
          exemption therefrom.

     (c)  It has been independently advised or is otherwise aware that any
          resale of the Purchased Securities is subject to certain resale
          restrictions provided for in certain securities legislation of the
          provinces and territories of Canada. The Purchased Securities are
          subject to statutory "hold periods" during which they may not be
          resold, except pursuant to a further statutory exemption from the
          applicable prospectus and distribution requirements under securities
          legislation, or unless an appropriate discretionary order is obtained
          pursuant to applicable security laws. It has been advised and afforded
          the full opportunity to consult with its own legal and other
          professional advisors in connection with any applicable re-sale
          restrictions.

     (d)  It has been independently advised that the Purchased Units are being
          offered for sale only on a "private placement" basis and that the sale
          and delivery of the Purchased Securities underlying the Purchased
          Units to the Subscriber is

<PAGE>

                                       3

          conditional upon such sale being exempt from the requirement to file a
          prospectus under any applicable law governing the sale of such
          securities or upon the issuance of such orders, consents or approvals
          as may be required to permit such sale without the requirement of
          filing a prospectus.

     (e)  It has further been independently advised as to applicable resale
          restrictions in the jurisdiction in which it resides, confirms that no
          representation has been made to it by or on behalf of the Corporation
          with respect thereto, acknowledges that it is aware of the
          characteristics of the Purchased Securities underlying the Purchased
          Units, the risks relating to an investment therein and of the fact
          that it may not be able to resell the Purchased Securities underlying
          the Purchased Units except in accordance with exemptions under
          applicable securities legislation and regulatory policy.

     (f)  The Subscriber acknowledges that the Purchased Units are subject to
          the terms, conditions and provisions of this Subscription Agreement.

     (g)  A prospectus will not be filed by the Corporation to qualify the
          Purchased Securities or any of them.

     (h)  The Purchased Securities shall be subject to a forty-one (41) day hold
          period in the U.S., pursuant to "Category 2" of Regulation S under the
          U.S. Securities Act of 1933, as amended, which period shall commence
          from the date of issuance, and the certificates representing the same
          shall be engrossed with the following legend, which shall be the only
          legend engrossed on such certificates relating to resale in the U.S.:

"The securities represented by this certificate may not be sold, transferred,
hypothecated or otherwise traded until              , 2003, pursuant to
                                       -------------
"Category 2" of Regulation S under the U.S. Securities Act of 1933, as amended."

4.   Closing

     Delivery and payment for the Purchased Units (the "Closing") will be
completed at the offices of the Corporation's legal counsel, Messrs. WeirFoulds
LLP, The Exchange Tower, Suite 1600, 130 King Street West, Toronto, Ontario M5X
1J5 at the Closing Time on the Closing Date.

     The Subscriber acknowledges that certificates representing the Purchased
Securities comprising the Purchased Units will be available for delivery as soon
as practicable after the Closing Date.

5.   Payment

     Payment for the Purchased Units shall be made at the Closing Time on the
Closing Date and shall be made in United States currency by certified cheque or
bank draft drawn on a US

<PAGE>

                                       4

bank and payable to the Corporation's solicitors, WeirFoulds LLP, in Trust or by
direct wire into the trust account maintained by WeirFoulds LLP.

6.   Delivery and Payment

     The parties agree that the following shall be delivered to WeirFoulds LLP
at 130 King Street West, Suite 1600, The Exchange Tower, Toronto, Ontario, M5X
1J5, Attention: Wayne T. Egan, not later than 12:00 noon (Toronto time) on the
Closing Date or such other time, date and/or place as the Corporation may
advise:

     (a)  a completed and duly signed copy of this Subscription Agreement,
          including, as to the Subscriber only, Exhibit "A" attached hereto
          (being a direction with respect to registration and delivery
          instructions);

     (b)  as to the Corporation only, the Purchased Units; and

     (c)  as to the Subscriber only, a certified cheque or bank draft made
          payable to WeirFoulds LLP, In Trust, in same day freely transferable
          US funds at par in Toronto, or wired directly into the trust account
          maintained by WeirFoulds LLP, representing payment of the Total
          Subscription Price for the Purchased Units, net of any other amounts
          to be paid otherwise upon written instructions from the Corporation.

7.   Conditions of Closing

     The Subscriber acknowledges and agrees that as the sale of the Purchased
Units will not be qualified by a prospectus, such sale is subject to the
condition that the Subscriber execute and return to the Corporation all relevant
documentation required by applicable securities legislation, regulations and
policies. Accordingly, the Subscriber agrees to:

     (a)  provide the Corporation with such information and documents, including
          certificates, statutory declarations and undertakings, as the
          Corporation may reasonably require from time to time to comply with
          any filing or other requirements under applicable provincial
          securities legislation and policies; and

     (b)  comply with the provisions of any applicable securities legislation
          and policies with respect thereto concerning any resale of the
          Purchased Securities.

8.   Prospectus Exemptions

     The Subscriber acknowledges and agrees that the sale and delivery of the
Purchased Securities comprising the Purchased Units to the Subscriber are
conditional upon such sale being exempt from the requirements as to the filing
of a prospectus and as to the delivery of an offering memorandum as defined in
the applicable securities legislation or upon the issuance of such rulings,
orders, consents or approvals as may be required to permit such sale without the
requirement of filing a prospectus or delivering an offering memorandum.

<PAGE>

                                       5

     In this regard, the Subscriber acknowledges and agrees that: (a) it was not
provided with, has not requested, and does not need to receive, a prospectus or
an offering memorandum as defined in the applicable securities legislation or
similar document; (b) its decision to execute this Subscription Agreement and to
purchase the Purchased Units has not been based upon any verbal or written
representations as to fact or otherwise made by or on behalf of the Corporation
and that, other than the representations of the Corporation contained herein,
including the documents delivered in connection herewith, its decision is based
entirely upon publicly available information concerning the Corporation; (c) the
sale of the Purchased Units was not accompanied by any advertisement in printed
media of general and regular paid circulation, radio or television; (d) it has
been advised and has been afforded full opportunity to consult its own legal and
other professional advisors with respect to all applicable resale restrictions
relating to the Purchased Securities and it is solely responsible (and the
Corporation is not in any way responsible) for compliance with any and all
applicable resale restrictions.

9.   Representations, Warranties and Covenants of the Subscriber

     The Subscriber hereby represents and warrants to and covenants with the
Corporation, acknowledging that the Corporation is relying upon such
representations, warranties and covenants in making its decision to enter into
this Subscription Agreement that:

     (a)  if the Subscriber sells the Purchased Securities, it will comply with
          the securities legislation of the jurisdiction in which said
          Subscriber resides;

     (b)  the purchase of the Purchased Units by the Subscriber does not
          contravene any of the applicable securities legislation in the
          jurisdiction in which it is resident and does not trigger (i) any
          obligation to prepare and file a prospectus or similar document, or
          any other report with respect to such purchase, and (ii) any
          registration or other obligation on the part of the Corporation;

     (c)  the Subscriber is incorporated under the laws of, or is a resident of,
          Barbados (and, without limiting the generality of the foregoing, is
          not a "U.S. Person" (as defined in Rule 902(o) of Regulation S
          ("Regulation S") promulgated by the United States Securities and
          Exchange Commission and meaning, generally, any natural person
          resident in the United States, any corporation or partnership
          incorporated or organized under the laws of the United States, or any
          estate or trust of which any executor, administrator or trustee is a
          U.S. Person), and the Subscriber is not purchasing the Purchased Units
          for the account or benefit of any U.S. Person or for offering, resale
          or delivery for the account or benefit of any U.S. Person or for the
          account of any person in any jurisdiction other than the jurisdiction
          set out in the name and address of the Subscriber below and the
          Subscriber does not have any agreement or understanding (either
          written or oral) with any U.S. Person or a person in the jurisdiction
          referenced above in this Section 9(c):

          (i)  the transfer or assignment of any rights or interest in any of
               the Purchased Securities underlying the Purchased Units; or

<PAGE>

                                       6

          (ii) the division of profits, losses, fees, commissions, or any
               financial stake in connection with this subscription;

     (d)  no offer of Purchased Units was made to the Subscriber in the "United
          States" (as defined in Regulation S under the U.S. Securities Act) and
          the Subscriber did not execute this Subscription Agreement in the
          United States;

     (e)  the activities of the Subscriber contemplated hereunder are not a
          scheme to avoid the registration requirements of the U.S. Securities
          Act;

     (f)  the Subscriber has no intention to distribute, and shall not transfer,
          either directly or indirectly, until after 41 days from the Closing
          Date, any of the Purchased Securities to any person within the United
          States or to "U.S. Persons" (as defined in Regulation S under the U.S.
          Securities Act);

     (g)  the Subscriber is at arm's length to and is not an "insider" (as such
          term is defined by the Securities Act (Ontario)) of the Corporation;

     (h)  the Subscriber is duly incorporated, organized and validly subsisting
          under the laws of the jurisdiction of its incorporation;

     (i)  this Subscription Agreement has been duly authorized, executed and
          delivered by, and constitutes a legal, valid, binding and enforceable
          obligation of, the Subscriber or the beneficial subscriber for whom
          the Subscriber is purchasing;

     (j)  the Subscriber is capable of assessing the proposed investment
          contemplated herein as a result of the Subscriber's experience and
          financial and business acumen or as a result of advice received from a
          registered person other than the Corporation or any affiliates
          thereof, and is capable of evaluating the merits and risks of its
          investment herein and is able to bear the economic risk of loss of its
          entire investment; and

     (k)  the entering into of this Subscription Agreement and the completion of
          the transaction contemplated hereby will not result in the violation
          of any of the terms and provisions of any law applicable to, or the
          constating documents of the Subscriber or of any agreement, written or
          oral, to which the Subscriber is a party or by which the Subscriber is
          bound.

10.  Representations and Warranties and Covenants of the Corporation

     The Corporation represents and warrants to and covenants with the
Subscriber, acknowledging that the Subscriber is relying upon such
representations, warranties and covenants in making its decision to enter into
this Subscription Agreement, as follows:

     (a)  it is a company duly amalgamated and organized under the laws of the
          Province of Ontario and is presently in good standing thereunder;

<PAGE>

                                       7

     (b)  the Corporation has full power and authority to enter into this
          Subscription Agreement and to perform the same and do all other acts
          which may be necessary to consummate the transaction contemplated
          hereby;

     (c)  the Common Shares to be issued to the Subscriber hereunder on the
          Closing Date and upon exercise of the Warrants comprising the
          Purchased Units shall be at the time of issuance by the Corporation
          validly issued and outstanding as fully paid and non-assessable Common
          Shares;

     (d)  this Subscription Agreement has been duly executed and delivered by
          the Corporation and is a valid agreement enforceable in accordance
          with its terms;

     (e)  the Corporation is a reporting issuer in good standing under the
          securities laws of the Province of Ontario and its Common Shares are
          listed on the OTC Bulletin Board;

     (f)  the entering into of this Subscription Agreement and the completion of
          the transaction contemplated hereby will not result in the violation
          of any of the terms and provisions of any law applicable to, or the
          constating documents of the Corporation or of any agreement, written
          or oral, to which the Corporation is a party or by which the
          Corporation is bound

     (g)  the Corporation has publicly disclosed all material changes in its
          affairs and since its last public announcement, there has not been a
          material adverse change in the affairs or business of the Corporation;

     (h)  the activities of the Corporation contemplated hereunder are not a
          scheme to avoid the registration requirements of the U.S. Securities
          Act;

     (i)  the Corporation will use its best efforts to cause its Common Shares
          to continue to be registered under Section 12(b) or (g) of the U.S.
          Securities Exchange Act of 1934, as amended (the "Exchange Act"), will
          use its best efforts to comply in all respects with its reporting and
          filing obligations under the Exchange Act, and will not take any
          action or file any document (whether or not permitted by the Exchange
          Act or the rules thereunder) to terminate or suspend such registration
          or to terminate or suspend its reporting and filing obligations under
          the Exchange Act until 270 calendar days after the Closing; and

     (j)  the Corporation hereby agrees to use its best efforts to either
          maintain the listing of the Common Shares on the OTC Bulletin Board or
          complete application and listing on another U.S. market or exchange
          until 270 days after the Closing. The Corporation further agrees, if
          the Corporation applies to have the Common shares traded on any other
          U.S. market, it will include in such application the Purchased
          Securities, if possible to do so, as promptly as possible.

<PAGE>

                                       8

11.  Resale Restrictions and Compliance with Securities Legislation

     The Subscriber acknowledges that the Purchased Securities of the
Corporation are being issued pursuant to prospectus and registration exemptions
and, accordingly, are subject to certain resale restrictions as provided in such
securities legislation; provided, however, there shall be no restriction on
resale in the U.S. by the Subscriber beginning 41 days after the Closing Date.
The Corporation and Subscriber each agree to make such filings and to do all
such things necessary to comply with any applicable requirements in relation to
the issuance of Purchased Securities of the Corporation hereunder.

12.  Costs

     The parties acknowledge and agree that each party shall pay its own costs
and expenses (including any fees and disbursements of professionals or any
special counsel retained by such party) relating to the purchase of the
Purchased Units.

13.  Further Assurances

     The parties hereto covenant and agree to execute and deliver such further
agreements, documents and writings and provide such further assurances as may be
required by the parties to give effect to this Subscription Agreement and, in
particular, to do all acts and things to execute and deliver all documents,
agreements and writings and provide such assurances, undertakings, information
and investment letters, as may be required from time to time by all regulatory
or governmental bodies or stock exchanges having jurisdiction over the
Corporation's affairs.

14.  Public Disclosures

     The Corporation will not issue any public announcement, press release or
public document or otherwise concerning the Subscriber and its purchase of the
Purchased Units hereunder without having provided Subscriber with a copy of such
disclosure before release, and incorporating all reasonable comments of
Subscriber into such disclosure, subject to the Corporation taking all necessary
steps which in the opinion of its counsel are necessary to fulfill the
Corporation's obligations to issue timely and complete disclosure of all
material changes in its affairs.

15.  Notices

     Any notice to be given by either party to the other will be deemed to be
given when in writing and delivered by hand or communicated by telecopier on any
business day to the address for notice of the intended recipient. The address
for notice of each of the parties will, until changed, be as set forth in this
Subscription Agreement. A party may give notice to the other party of a change
of its address for notice to some other address and will so change its address
for notice whenever the existing address for notice ceased to be adequate for
delivery by hand or communication by telecopier.

<PAGE>

                                       9

16.  References

     In this Subscription Agreement a reference to:

     (a)  a statute or code includes every regulation made thereunder from time
          to time, all amendments to the statute, code or to any such regulation
          in force from time to time, and any statute, code or regulation which
          supplements or supersedes such statute, code or any such regulation;
          and

     (b)  any entity includes any entity that is a successor or permitted
          assignee to such entity.

17.  Number and Gender

     Wherever the singular and the neuter are used throughout this Subscription
Agreement, the same shall be construed as meaning the plural or the feminine or
masculine or a body corporate where the context or the parties so require.

18.  Governing Law

     This Subscription Agreement is governed by the laws of the Province of
Ontario and the federal laws of Canada applicable therein. The Subscriber, in
its personal or corporate capacity and, if applicable, on behalf of each
beneficial subscriber for whom it is acting, irrevocably attorns to the
jurisdiction of the courts of the Province of Ontario.

19.  Assignment

     The obligations under this Subscription Agreement are not transferable or
assignable by the parties hereto. The benefits under this Subscription Agreement
are transferable and assignable by the parties hereto, subject to applicable law
and the prior written consent of the other parties.

20.  Entire Subscription Agreement

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

<PAGE>

                                       10

21.  Facsimile Deliveries

     The parties shall be entitled to rely on delivery of a facsimile
transmission of an executed copy of this Subscription Agreement, including the
completed Schedules hereto, and such facsimile copies shall be legally effective
to create a valid and binding agreement between the Subscriber and the
Corporation in accordance with the terms hereof. This Subscription Agreement may
be executed in multiple counterparts, each of which may be executed by less than
all of the parties and shall be deemed to be an original instrument which shall
be enforceable against the parties actually executing such counterparts and all
of which together shall constitute one and the same instrument.

22.  Successors and Assigns

     Except as otherwise expressly provided herein, this Subscription Agreement
shall enure to the benefit of and shall be binding upon each of the parties
hereto and their respective successors and permitted assigns, if any, and the
heirs, executors, administrators and permitted assigns of natural persons who
are or become a party hereto.

23.  Survival

     This Subscription Agreement, including, without limitation, the
representations, warranties and covenants contained herein, shall survive and
continue in full force and effect and be binding upon the parties
notwithstanding the completion of the purchase of the Purchased Units and any
subsequent disposition by the Subscriber of the Purchased Securities.

24.  Amendments

     The provisions of this Subscription Agreement may be amended in writing
upon the written consent of each of the parties hereto.

25.  Language

     The parties hereto confirm their express wish that this Subscription
Agreement and all documents, agreements and notices directly or indirectly
relating thereto be drawn up in the English language.

     Les parties confirment leur volonte expresse que la presente convention
ainsi que tous les documents, contrats et avis s'y rattachant directement ou
indirectement soient rediges en anglais.

26.  Time of the Essence

     Time shall be of the essence in this Subscription Agreement and each and
every part hereof.

<PAGE>

                                       11

NUMBER OF UNITS TO BE PURCHASED
AT US$0.40 EACH:                   650'000

TOTAL SUBSCRIPTION PRICE:          USD 260'000.00

N/A                                Thomas Christen
Social Insurance Number or         (Name of Subscriber - please type or print)
Corporation Tax Account Number
(as appropriate)

                                   /s/ Thomas Christen
                                   ---------------------------------------------
                                   (Signature and, if applicable, Office of
                                      Subscriber)

                                   Address of Subscriber:
                                   84 Cane Vale, Crescent No. 2
                                   Christ Church
                                   Barbados / West Indies

                                   ---------------------------------------------

                                   Telephone and Facsimile Number of Subscriber:
                                   1 (246) 420 4986
                                   (Telephone Number of Subscriber)

                                   (Fax) 1 (246) 420 4986
                                   (Facsimile Number of Subscriber)

                               A C C E P T A N C E

         The above-mentioned Subscription Agreement is hereby accepted and
agreed to by the Corporation.

               DATED at Toronto, Ontario, the          day of            , 2003.
                                              --------        -----------

                                          API ELECTRONICS GROUP INC.

                                          Per: /s/ Jason DeZwirek
                                               ---------------------------------
                                               Name:
                                               Title:

<PAGE>

                                   EXHIBIT "A"

                           API ELECTRONICS GROUP INC.
                             Subscription Agreement

--------------------------------------------------------------------------------
API ELECTRONICS GROUP INC.

Dear Sirs:

     Re:  API Electronics Group Inc. -
          Private Placement of Units of the Corporation comprised of one (1)
          Common Share and one-half (1/2) Warrant

1.        Delivery - Please deliver the Common Share and Warrant certificates
          to:

          Address:   Thomas Christen
                     84 Cane Vale, Crescent No. 2
                     Christ Church
                     Barbados / West Indies

          Fax:       1 (246) 420 4986

2.        Registration - Registration of the single certificate which is to be
          delivered at closing should be made out as follows:

          THOMAS CHRISTEN
          (Name)

          84 Cane Vale, Crescent No. 2, Christ Church, Barbados
          (Address)

          1 (246) 420 4986                         1 (246) 420 4986
          (Telephone Number)                      (Facsimile Number)

DATED the 3rd day of February, 2003.

                                           Thomas Christen
                                          (Name of Subscriber)

                                          Per: /s/ Thomas Christen
                                               ---------------------------------
                                               (signature)

                                               N/A
                                               (office or position of person
                                                  signing, if applicable)

<PAGE>

                                   EXHIBIT "B"

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR ANY OTHER APPLICABLE STATE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PURSUANT TO REGULATION S AND
SUCH OTHER SECURITIES LAWS. THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF
ANY U.S. PERSON, AS SUCH TERM IS DEFINED IN RULE 902 OF REGULATION S OF THE
SECURITIES ACT, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE
PROVISIONS OF THE SECURITIES ACT. NEITHER THIS WARRANT NOR THE SHARES ISSUABLE
UPON EXERCISE HEREOF MAY BE SOLD, PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE
PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE LAWS INCLUDING
REGULATIONS.

                             STOCK PURCHASE WARRANT

          To Purchase                        Shares of Common Stock of
                      ----------------------

                           API ELECTRONICS GROUP INC.

          THIS CERTIFIES that, for value received,
                                                   -----------------------------
                      (the "Holder"), is entitled, upon the terms and subject to
---------------------
the limitations on exercise and the conditions hereinafter set forth, at any
time on or after                                              , 2003 (the
                 ---------------------------------------------
"Initial Exercise Date") and on or prior to the close of business on the final
calendar day of the 24th month after the Initial Exercise Date (the "Termination
Date") but not thereafter, to subscribe for and purchase from API Electronics
Group Inc., a corporation incorporated under the laws of Ontario, Canada (the
"Company"), up to                            common shares (the "Warrant
                  --------------------------
Shares"), no par value per share, of the Company (the "Common Stock"). The
purchase price of one share of Common Stock (the "Exercise Price") under this
Warrant shall be US$0.60. The Exercise Price and the number of Warrant Shares
for which the Warrant is exercisable shall be subject to adjustment as provided
herein. Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in that certain Subscription Agreement (the "Purchase
Agreement"), dated                   , 2003, between the Company and the Holder.
                   ------------------

<PAGE>

1. Title to Warrant. Prior to the Termination Date and subject to compliance
with applicable laws, this Warrant and all rights hereunder are transferable, in
whole or in part, at the office or agency of the Company by the Holder in person
or by duly authorized attorney, upon surrender of this Warrant together with the
Assignment Form annexed hereto properly endorsed.

2. Authorization of Shares. The Company covenants that all Warrant Shares which
may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant,
be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges in respect of the issue thereof (other than taxes
in respect of any transfer occurring contemporaneously with such issue).

3. Exercise of Warrant.

     (a) Except as provided in Section 4 herein, exercise of the purchase rights
represented by this Warrant may be made at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by the surrender of
this Warrant and the Notice of Exercise Form annexed hereto duly executed, at
the office of the Company (or such other office or agency of the Company as it
may designate by notice in writing to the registered Holder at the address of
such Holder appearing on the books of the Company) and upon payment of the
Exercise Price of the shares thereby purchased by wire transfer or cashier's
check drawn on a United States bank, or by means of a cashless exercise, the
Holder shall be entitled to receive a certificate for the number of Warrant
Shares so purchased. Certificates for shares purchased hereunder shall be
delivered to the Holder within three (3) Trading Days after the date on which
this Warrant shall have been exercised as aforesaid. This Warrant shall be
deemed to have been exercised and such certificate or certificates shall be
deemed to have been issued, and Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of such shares
for all purposes, as of the date the Warrant has been exercised by payment to
the Company of the Exercise Price and all taxes required to be paid by the
Holder, if any, pursuant to Section 5 prior to the issuance of such shares, have
been paid.

     (b) If this Warrant shall have been exercised in part, the Company shall,
at the time of delivery of the certificate or certificates representing Warrant
Shares, deliver to Holder a new Warrant evidencing the rights of Holder to
purchase the unpurchased Warrant Shares called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.

     (c) Notwithstanding anything herein to the contrary, in no event shall the
Holder be permitted to exercise this Warrant for Warrant Shares to the extent
that (i) the number of shares of Common Stock owned by such Holder (other than
Warrant Shares issuable upon exercise of this Warrant) plus (ii) the number of
Warrant Shares issuable upon exercise of this Warrant, would be equal to or
exceed 4.999% of the number of shares of Common Stock then issued and
outstanding, including shares issuable upon exercise of this Warrant held by
such Holder after application of this Section 3(c). As used herein, beneficial
ownership shall be determined in accordance with Section 13(d) of the Exchange
Act. To the extent that the limitation contained in this Section 3(c) applies,
the determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder) and of which a portion of this Warrant is
exercisable

                                       2

<PAGE>

shall be in the sole discretion of such Holder, and the submission of a Notice
of Exercise shall be deemed to be such Holder's determination of whether this
Warrant is exercisable (in relation to other securities owned by such Holder)
and of which portion of this Warrant is exercisable, in each case subject to
such aggregate percentage limitation, and the Company shall have no obligation
to verify or confirm the accuracy of such determination. Nothing contained
herein shall be deemed to restrict the right of a Holder to exercise this
Warrant into Warrant Shares at such time as such exercise will not violate the
provisions of this Section 3(c). The provisions of this Section 3(c) may be
waived by the Holder upon, at the election of the Holder, not less than 61 days'
prior notice to the Company, and the provisions of this Section 3(c) shall
continue to apply until such 61st day (or such later date, as determined by the
Holder, as may be specified in such notice of waiver). No exercise of this
Warrant in violation of this Section 3(c) but otherwise in accordance with this
Warrant shall affect the status of the Warrant Shares as validly issued,
fully-paid and nonassessable.

4. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Exercise Price.

5. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares
shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; provided, however, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

6. Closing of Books. The Company will not close its stockholder books or records
in any manner which prevents the timely exercise of this Warrant.

7. Transfer, Division and Combination.

     (a) Subject to compliance with any applicable securities laws, transfer of
this Warrant and all rights hereunder, in whole or in part, shall be registered
on the books of the Company to be maintained for such purpose, upon surrender of
this Warrant at the principal office of the Company, together with a written
assignment of this Warrant substantially in the form attached hereto duly
executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. In the event that the
Holder wishes to transfer a portion of this Warrant, the Holder shall transfer
at least                              shares underlying this Warrant to any such
         -----------------------------
transferee. Upon such surrender and, if required, such payment, the Company
shall execute and deliver a new Warrant or Warrants in the name of the assignee
or assignees and in the denomination or denominations specified in such
instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled. A Warrant, if properly assigned,

                                       3

<PAGE>

may be exercised by a new holder for the purchase of Warrant Shares without
having a new Warrant issued. Notwithstanding the above, the Holder shall not
transfer this Warrant or any rights hereunder to any person or entity which is
then engaged in a business that is in the reasonable judgement of the Company is
in direct competition with the Company.

     (b) This Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office of the Company, together with a
written notice specifying the names and denominations in which new Warrants are
to be issued, signed by the Holder or its agent or attorney. Subject to
compliance with Section 7(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice.

     (c) The Company shall prepare, issue and deliver at its own expense (other
than transfer taxes) the new Warrant or Warrants under this Section 7.

     (d) The Company agrees to maintain, at its aforesaid office, books for the
registration and the registration of transfer of the Warrants.

8. No Rights as Shareholder until Exercise. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the payment
of the aggregate Exercise Price or by means of a cashless exercise, the Warrant
Shares so purchased shall be and be deemed to be issued to such Holder as the
record owner of such shares as of the close of business on the later of the date
of such surrender or payment.

9. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that
upon receipt by the Company of evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which shall not include the
posting of any bond), and upon surrender and cancellation of such Warrant or
stock certificate, if mutilated, the Company will make and deliver a new Warrant
or stock certificate of like tenor and dated as of such cancellation, in lieu of
such Warrant or stock certificate.

10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday, Sunday or a legal holiday, then such action may be taken or
such right may be exercised on the next succeeding day not a Saturday, Sunday or
legal holiday.

11. Adjustments of Exercise Price and Number of Warrant Shares/Stock Splits,
etc. The number and kind of securities purchasable upon the exercise of this
Warrant and the Exercise Price shall be subject to adjustment from time to time
upon the happening of any of the following. In case the Company shall (i) pay a
dividend in shares of Common Stock or make a distribution in shares of Common
Stock to holders of its outstanding Common Stock, (ii) subdivide its outstanding
shares of Common Stock into a greater number of shares, (iii) combine its
outstanding shares of Common Stock into a smaller number of shares of Common
Stock, or (iv) issue any shares of its capital stock in a reclassification of
the Common Stock, then the

                                       4

<PAGE>

number of Warrant Shares purchasable upon exercise of this Warrant immediately
prior thereto shall be adjusted so that the Holder shall be entitled to receive
the kind and number of Warrant Shares or other securities of the Company which
it would have owned or have been entitled to receive had such Warrant been
exercised in advance thereof. Upon each such adjustment of the kind and number
of Warrant Shares or other securities of the Company which are purchasable
hereunder, the Holder shall thereafter be entitled to purchase the number of
Warrant Shares or other securities resulting from such adjustment at an Exercise
Price per Warrant Share or other security obtained by multiplying the Exercise
Price in effect immediately prior to such adjustment by the number of Warrant
Shares purchasable pursuant hereto immediately prior to such adjustment and
dividing by the number of Warrant Shares or other securities of the Company
resulting from such adjustment. An adjustment made pursuant to this paragraph
shall become effective immediately after the effective date of such event
retroactive to the record date, if any, for such event.

12. Reorganization, Reclassification, Merger, Consolidation or Disposition of
Assets. In case the Company shall reorganize its capital, reclassify its capital
stock, consolidate or merge with or into another corporation (where the Company
is not the surviving corporation or where there is a change in or distribution
with respect to the Common Stock of the Company), or sell, transfer or otherwise
dispose of all or substantially all its property, assets or business to another
corporation and, pursuant to the terms of such reorganization, reclassification,
merger, consolidation or disposition of assets, shares of common stock of the
successor or acquiring corporation, or any cash, shares of stock or other
securities or property of any nature whatsoever (including warrants or other
subscription or purchase rights) in addition to or in lieu of common stock of
the successor or acquiring corporation ("Other Property"), are to be received by
or distributed to the holders of Common Stock of the Company, then the Holder
shall have the right thereafter to receive, at their option, (a) upon exercise
of this Warrant, the number of shares of Common Stock of the successor or
acquiring corporation or of the Company, if it is the surviving corporation, and
Other Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event, or (b) cash equal to the value of this Warrant
as determined in accordance with the Black-Sholes option pricing formula. In
case of any such reorganization, reclassification, merger, consolidation or
disposition of assets, the successor or acquiring corporation (if other than the
Company) shall expressly assume the due and punctual observance and performance
of each and every covenant and condition of this Warrant to be performed and
observed by the Company and all the obligations and liabilities hereunder,
subject to such modifications as may be deemed appropriate (as determined in
good faith by resolution of the Board of Directors of the Company) in order to
provide for adjustments of Warrant Shares for which this Warrant is exercisable
which shall be as nearly equivalent as practicable to the adjustments provided
for in this Section 12. For purposes of this Section 12, "common stock of the
successor or acquiring corporation" shall include stock of such corporation of
any class which is not preferred as to dividends or assets over any other class
of stock of such corporation and which is not subject to redemption and shall
also include any evidences of indebtedness, shares of stock or other securities
which are convertible into or exchangeable for any such stock, either
immediately or upon the arrival of a specified date or the happening of a
specified event and any warrants or other rights to subscribe for or purchase
any such stock. The foregoing provisions of this Section 12 shall

                                       5

<PAGE>

similarly apply to successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets.

13. Voluntary Adjustment by the Company. The Company may at any time during the
term of this Warrant reduce the then current Exercise Price to any amount and
for any period of time deemed appropriate by the Board of Directors of the
Company.

14. Notice of Adjustment. Whenever the number of Warrant Shares or number or
kind of securities or other property purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
promptly mail by registered or certified mail, return receipt requested, to the
Holder notice of such adjustment or adjustments setting forth the number of
Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other
securities or property) after such adjustment, setting forth a brief statement
of the facts requiring such adjustment and setting forth the computation by
which such adjustment was made. Such notice, in the absence of manifest error,
shall be conclusive evidence of the correctness of such adjustment.

15. Notice of Corporate Action. If at any time:

     (a) the Company shall take a record of the holders of its Common Stock for
the purpose of entitling them to receive a dividend or other distribution, or
any right to subscribe for or purchase any evidences of its indebtedness, any
shares of stock of any class or any other securities or property, or to receive
any other right, or

     (b) there shall be any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
consolidation or merger of the Company with, or any sale, transfer or other
disposition of all or substantially all the property, assets or business of the
Company to, another corporation or,

     (c) there shall be a voluntary or involuntary dissolution, liquidation or
winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 20 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 20
days' prior written notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause also shall specify (i) the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding up. Each
such written notice shall be sufficiently given if addressed to

                                       6

<PAGE>

Holder at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 17(d).

16. Authorized Shares. The Company covenants that during the period the Warrant
is outstanding, it will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of the Warrant Shares
upon the exercise of any purchase rights under this Warrant. The Company further
covenants that its issuance of this Warrant shall constitute full authority to
its officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant. The Company will take all
such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of the principal market upon which the Common
Stock may be listed.

     The Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder
against impairment. Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (c) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

     Before taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the Exercise
Price, the Company shall obtain all such authorizations or exemptions thereof,
or consents thereto, as may be necessary from any public regulatory body or
bodies having jurisdiction thereof.

17. Miscellaneous.

     (a) Jurisdiction. This Warrant shall constitute a contract under the laws
of Ontario, without regard to its conflict of law, principles or rules, and be
subject to arbitration pursuant to the terms set forth in the Purchase
Agreement.

     (b) Restrictions. The Holder acknowledges that the Warrant Shares acquired
upon the exercise of this Warrant, if not registered, will have restrictions
upon resale imposed by state and federal securities laws.

     (c) Nonwaiver and Expenses. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder's rights, powers or remedies,
notwithstanding all rights hereunder terminate on

                                       7

<PAGE>

the Termination Date. If the Company willfully and knowingly fails to comply
with any provision of this Warrant, which results in any material damages to the
Holder, the Company shall pay to Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable
attorneys' fees, including those of appellate proceedings, incurred by Holder in
collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

     (d) Notices. Any notice, request or other document required or permitted to
be given or delivered to the Holder by the Company shall be delivered in
accordance with the notice provisions of the Purchase Agreement.

     (e) Limitation of Liability. No provision hereof, in the absence of
affirmative action by Holder to purchase Warrant Shares, and no enumeration
herein of the rights or privileges of Holder, shall give rise to any liability
of Holder for the purchase price of any Common Stock or as a stockholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.

     (f) Remedies. Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Warrant. The Company agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of the provisions of this Warrant and hereby agrees to waive the
defense in any action for specific performance that a remedy at law would be
adequate.

     (g) Successors and Assigns. Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

     (h) Amendment. This Warrant may be modified or amended or the provisions
hereof waived with the written consent of the Company and the Holder.

     (i) Severability. Wherever possible, each provision of this Warrant shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Warrant shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

     (j) Headings. The headings used in this Warrant are for the convenience of
reference only and shall not, for any purpose, be deemed a part of this Warrant.

                             *********************

                                       8

<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized.

Dated:                          , 2003
       -------------------------

                                         API ELECTRONICS GROUP INC.

                                         By:
                                             -----------------------------------
                                             Name: JASON DEZWIREK
                                             Title: Chairman

                                       9

<PAGE>

                               NOTICE OF EXERCISE

To: API Electronics Group Inc.

     (1) The undersigned hereby elects to purchase          Warrant Shares (the
                                                   --------
"Common Stock"), of API Electronics Group Inc. pursuant to the terms of the
attached Warrant, and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

     (2) Please issue a certificate or certificates representing said Warrant
Shares in the name of the undersigned or in such other name as is specified
below:

          -------------------------------

The Warrant Shares shall be delivered to the following:

          -------------------------------

          -------------------------------

          -------------------------------

                                          --------------------------------------
                                          (Name of Subscriber - please type or
                                          print)

                                          By:
                                              ----------------------------------
                                              Name:
                                              Title:

                                          Dated:
                                                 -------------------------------

<PAGE>

                                 ASSIGNMENT FORM

                   (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

          FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

                                                                whose address is
---------------------------------------------------------------

--------------------------------------------------------------------------------

                                                                               .
-------------------------------------------------------------------------------

Dated:               ,
       --------------  -------

Holder's Signature:
                    --------------------------------

Holder's Address:
                  ----------------------------------

                  ----------------------------------

Signature Guaranteed:
                      --------------------------------------------

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.

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