Document:

Promissory Note

 Exhibit 10.33 
 NEITHER THIS NOTE NOR THE SECURITIES INTO WHICH IT MIGHT CONVERT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED,
ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, STATING
THAT SUCH SALE, TRANSFER, PLEDGE, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE ACT. 
  

	 $400,000 
	 Marlboro, Massachusetts 

 December 21, 2006 
 MEDICAL SOLUTIONS MANAGEMENT INC. 
 PROMISSORY NOTE 
 Medical Solutions Management Inc., a Nevada corporation (the
"Company"), for value received, hereby promises to pay to Vicis Capital Master Fund (the "Holder") on or before February 21, 2007 (the "Maturity Date"), the principal amount of Four Hundred Thousand Dollars ($400,000), and all interest accrued
thereon, in accordance with the terms hereof, until paid in accordance with the terms hereof. 
 1. Terms of Note. 
 1.1. Interest. Interest shall accrue on the unpaid principal balance of this Note from the date hereof and shall be payable at the rate of five
percent (5%) per annum, computed on the basis of a 365 day year for the actual number of days elapsed since the date hereof, until all unpaid principal under this Note shall have been repaid in full. 
 1.2. Failure to Repay by Maturity Date. If on or prior to the Maturity Date the Company has not repaid to the Holder the unpaid principal balance
of this Note and all interest accrued thereon, (a) the Maturity Date shall be extended to April 21, 2007 such that the unpaid principal balance of this Note and all interest accrued thereon shall be due and payable on such date instead of
February 21, 2007, and (b) no later than February 22, 2007, the Company shall issue to the Holder a warrant to purchase 2,666,667 shares of the Company’s common stock, par value $0.001 per share, which warrant shall have an
exercise price of $2.00 per share, shall be exercisable for a period of five years following the date of issuance and shall contain such other terms and conditions as set forth in those certain warrants issued by the Company to the Holder in
connection with the transactions consummated pursuant to that certain Securities Purchase and Exchange Agreement, dated as of June 28, 2006 (except that such warrant shall not give the Company any right to call the warrant for redemption or to
purchase any shares issued upon exercise of the warrant). 
  

 1.3. Prepayment. All or a portion of the unpaid principal balance of this Note and interest
accrued thereon may be prepaid by the Company at any time prior to the Maturity Date (including any extension thereof) without penalty. Any prepayment shall be made at the offices or residence of the Holder, or at such other place as the Holder
shall have designated to the Company in writing, in lawful money of the United States of America. 
 2. Usury. This Note is hereby
expressly limited so that in no event whatsoever shall the amount paid or agreed to be paid to the Holder hereunder exceed the amount permissible under applicable law. If at any time the performance of any provision of this Note involves a payment
exceeding the limit of the price that may be validly charged for the loan, use, forbearance or detention of money under applicable law, then automatically and retroactively, ipso facto, the obligation to be performed shall be reduced to such
limit, it being the specific intent of the Company and the Holder that all payments under this Note are to be credited first to interest, if any, as permitted by law, but not in excess of the lesser of (a) the agreed rate of interest set forth
herein and (b) that permitted by law, and the balance toward the reduction of principal. The provisions of this Section 2 shall never be superseded or waived and shall control every other provision of this Note. 
 3. Miscellaneous. 
 3.1. Transfer
of Note. The Holder may not assign or otherwise transfer this Note (or any portion hereof) or any of its rights hereunder without the prior written consent of the Company, and no interest herein shall be pledged or otherwise encumbered by the
Holder without the prior written consent of the Company, and any such attempted disposition of this Note or any portion hereof shall be of no force or effect. 
 3.2. Titles and Subtitles. The titles and subtitles used in this Note are for convenience only and are not to be considered in construing or interpreting this Note. 
 3.3. Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal
delivery to the party to be notified; (b) when sent by confirmed facsimile or electronic transmission if sent during normal business hours of the recipient on a business day, or if not, then on the next business day; or (c) one
(1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt (or, in the case of non-U.S. residents, two (2) business days after deposit with an internationally
recognized overnight courier, specifying international priority delivery, with written verification of receipt). All communications shall be sent to the parties at the following addresses or at such other address as shall be given in writing by a
party to the other parties: 
  

	 	Holder:	Vicis Capital Master Fund 

	 	    	Tower 56, Suite 700 

	 	    	126 E. 56th Street, 7th Floor 

	 	    	New York, NY 10022 

	 	    	Attn: Shad Stastney 

	 	Company:	Medical Solutions Management Inc. 

	 	    	237 Cedar Hill Street 

	 	    	Marlboro, MA 01752 

	 	    	Attention: Chief Executive Officer 

 3.4. Collection
Costs. Should all or any part of the indebtedness represented by this Note be collected by action at law, or in bankruptcy, insolvency, receivership or other court proceedings, or should this Note be placed in the hands of attorneys for
collection after default, the Company hereby promises to pay to the Holder, upon demand by the Holder at any time, in addition to the outstanding principal and all (if any) other amounts payable on or in respect of this Note, all court costs and
reasonable attorneys’ fees and other collection charges and expenses incurred or sustained by the Holder. 
 3.5. Amendments and
Waivers. Any term of this Note may be amended (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the Holder. Any amendment effected in accordance with this
Section 3.5 shall be binding upon the Holder and the Company and their successors and assigns. Any forbearance, failure or delay by the Holder in exercising any right, power or remedy under this Note or otherwise available to the Holder shall
not be deemed to be a waiver of such right, power or remedy, nor shall any single or partial exercise of any right, power or remedy preclude the further exercise thereof. 
 3.6. Severability. If one or more provisions of this Note are held to be unenforceable under applicable law, such provision shall be excluded from this Note and the balance of the Note shall be interpreted as
if such provision were so excluded and shall be enforceable in accordance with its terms. 
 3.7. Governing Law. This Note shall be
governed by and construed and enforced in accordance with the laws of the Commonwealth of Massachusetts, without giving effect to its conflicts of laws principles. 
 3.8. Certain Waivers. The Company hereby irrevocably waives notice of acceptance, presentment, notice of nonpayment, protest, notice of protest, suit and all other conditions precedent in connection with the
delivery, acceptance, collection and/or enforcement of this Note or any collateral or security therefor. 
 [Remainder of page left blank
intentionally] 

 IN WITNESS WHEREOF, this Note has been executed and delivered as a sealed instrument on the date first
above written by the duly authorized representative of the Company. 
  

			
	MEDICAL SOLUTIONS MANAGEMENT INC.
		
	By:	 	        /s/ Brian Lesperance
		 	 Name: Brian Lesperance
 Title:
President

 Acknowledged and Agreed to: 
 VICIS CAPITAL MASTER FUND 
  

			
	
		
	By:	 	        /s/ Shad Stastney
		 	 Name: Shad Stastney
 Title: Chief Operating
OfficerExhibit 10.22 - Transfer Agent Instructions

     

    Exhibit
      10.22

    EXECUTION
      COPY 

    

     

    IRREVOCABLE
      TRANSFER AGENT INSTRUCTIONS

     

    

    

    September
      26, 2006

    

    

    

    
      	
              Transfer
                Online, Inc.

            
	
              227
                S.W. Pine Street, Suite 300

            
	
              Portland,
                Oregon 97204

            

    

    

    

    RE: NEWGOLD,
      INC.

    

    Ladies
      and Gentlemen:

    

     

    Reference
      is made to that certain Securities Purchase Agreement (the “Securities
      Purchase Agreement”)
      of
      even date herewith by and between Newgold, Inc., a Delaware corporation
      (the “Company”),
      and
      the Buyers set forth on Schedule I attached thereto (collectively the
“Buyers”)
      and
      that certain Pledge and Escrow Agreement (the “Pledge
      Agreement”)
      of
      even date herewith among the Company, the Buyers and David Gonzalez, as escrow
      agent (the “Escrow
      Agent”).
      Pursuant to the Securities Purchase Agreement, the Company shall sell to the
      Buyers, an the Buyers shall purchase from the Company, convertible debentures
      (collectively, the “Debentures”)
      in the
      aggregate principal amount of Two Million Two Hundred Thousand Dollars
      ($2,200,000), plus accrued interest, which are convertible into shares of the
      Company’s common stock, par value $.001 per share (the “Common
      Stock”),
      at
      the Buyers discretion. The Company has also issued to the Buyer warrants to
      purchase up to 2,275,000 shares of Common Stock, at the Buyer’s discretion (the
“Warrant”).
      These
      instructions relate to the following stock or proposed stock issuances or
      transfers:

     

    	1.  	
            Shares
              of Common Stock to be issued to the Buyers upon conversion of the
              Debentures (“Conversion
              Shares”)
              plus the shares of Common Stock to be issued to the Buyers upon conversion
              of accrued interest and liquidated damages into Common Stock (the
              “Interest
              Shares”).
              

          

     

    	2.  	
            Up
              to 2,275,000 shares of Common Stock to be issued to the Buyers upon
              exercise of the Warrant (the “Warrant
              Shares”).

          

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    	3.  	
            The
              transfer of up to 10,000,000 shares of Common Stock (the “Escrowed
              Shares”)
              that have been delivered to the Escrow Agent pursuant to the Pledge
              Agreement. 

          

     

    This
      letter shall serve as our irrevocable authorization and direction to Transfer
      Online, Inc. (the “Transfer
      Agent”)
      to do
      the following:

     

    	1.  	
            Conversion
              Shares and Warrant Shares.
              

          

     

    	a.  	
            Instructions
              Applicable to Transfer Agent.
              With respect to the Conversion Shares, Warrant Shares and the Interest
              Shares, the Transfer Agent shall issue the Conversion Shares, Warrant
              Shares and the Interest Shares to the Buyers from time to time upon
              delivery to the Transfer Agent of a properly completed and duly executed
              Conversion Notice (the “Conversion
              Notice”)
              in the form attached as Exhibit A to the Debentures, or a properly
              completed and duly executed Exercise Notice (the “Exercise
              Notice”)
              in the form attached as Exhibit A to the Warrant, delivered to the
              Transfer Agent and the Company by the Escrow Agent on behalf of the
              Company. Upon receipt of a Conversion Notice or an Exercise Notice,
              the
              Transfer Agent shall within three (3) Trading Days thereafter (i) issue
              and surrender to a common carrier for overnight delivery to the address
              as
              specified in the Conversion Notice or the Exercise Notice, a certificate,
              registered in the name of the Buyer or its designees, for the number
              of
              shares of Common Stock to which the Buyer shall be entitled as set
              forth
              in the Conversion Notice or Exercise Notice or (ii) provided the Transfer
              Agent is participating in The Depository Trust Company (“DTC”)
              Fast Automated Securities Transfer Program, upon the request of the
              Buyers, credit such aggregate number of shares of Common Stock to which
              the Buyers shall be entitled to the Buyer’s or their designees’ balance
              account with DTC through its Deposit Withdrawal At
              Custodian (“DWAC”)
              system provided the Buyer causes its bank or broker to initiate the
              DWAC
              transaction. For purposes hereof “Trading
              Day”
              shall mean any day on which the Nasdaq Market is open for customary
              trading.

          

     

    	b.  	
            The
              Company hereby confirms to the Transfer Agent and the Buyer that
              certificates representing the Conversion Shares and the Warrant Shares
              shall not bear any legend restricting transfer and should not be subject
              to any stop-transfer restrictions and shall otherwise be freely
              transferable on the books and records of the Company; provided
              that
              counsel to the Company delivers (i) the Notice of Effectiveness set
              forth
              in Exhibit
              I
              attached hereto and (ii) an opinion of counsel in the form set forth
              in
              Exhibit
              II
              attached hereto, and that if the Conversion Shares, Warrant Shares
              and the
              Interest Shares are not registered for sale under the Securities Act
              of
              1933, as amended, then the

          

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
        	 	
                certificates
                  for the Conversion Shares, Warrant Shares and Interest Shares shall
                  bear
                  the following legend:

              

      

    

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM REASONABLY
      ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT.”

     

    	c.  	
            In
              the event that counsel to the Company fails or refuses to render an
              opinion as required to issue the Conversion Shares or the Warrant Shares
              in accordance with the preceding paragraph (either with or without
              restrictive legends, as applicable), then the Company irrevocably and
              expressly authorizes counsel to the Buyer to render such opinion. The
              Transfer Agent shall accept and be entitled to rely on such opinion
              for
              the purposes of issuing the Conversion Shares.

          

     

    	d.  	
            Instructions
              Applicable to Escrow Agent.
              Upon the Escrow Agent’s receipt of a properly completed Conversion Notice
              or Exercise Notice and the Aggregate Exercise Price (as defined in
              the
              Warrant), the Escrow Agent shall, within one (1) Trading Day thereafter,
              send to the Transfer Agent the Conversion Notice or Exercise Notice
              as the
              case may be, which shall constitute an irrevocable instruction to the
              Transfer Agent to process such Conversion Notice or Exercise Notice
              in
              accordance with the terms of these
              instructions.

          

     

    	2.  	
            Escrowed
              Shares.
              

          

     

    	a.  	
            With
              respect to the Escrowed Shares, upon an event of default as set forth
              in
              the Pledge Agreement, the Escrow Agent shall send written notice to
              the
              Transfer Agent and the Company (the “Escrow
              Notice”)
              to transfer such number of Escrow Shares as set forth in the Escrow
              Notice
              to the Buyers. Upon receipt of an Escrow Notice and the share certificate
              along with a properly executed stock power, the Transfer Agent shall
              promptly transfer such number of Escrow Shares to the Buyers as shall
              be
              set forth in the Escrow Notice delivered to the Transfer Agent by the
              Escrow Agent. Further, the Transfer Agent shall promptly transfer such
              shares from the Buyers to any subsequent transferee promptly upon receipt
              of written notice from the Buyers

          

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    or
      their counsel and the share certificate along with
      a properly executed stock power. If the Escrow Shares are not registered for
      sale under the Securities Act of 1933, as amended, then the certificates for
      the
      Escrow Shares shall bear the legend set forth in Section 1b.

     

    	b.  	
            In
              the event that counsel to the Company fails or refuses to render an
              opinion as may be required by the Transfer Agent to affect a transfer
              of
              the Escrow Shares (either with or without restrictive legends, as
              applicable), then the Company irrevocably and expressly authorizes
              counsel
              to the Buyers to render such opinion. The Transfer Agent shall accept
              and
              be entitles to rely on such opinion for the purpose of transferring
              the
              Escrow Shares. 

          

     

    	3.  	
            All
              Shares.

          

     

    	a.  	
            The
              Transfer Agent shall reserve for issuance to the Buyers a minimum of
              15,000,000 Conversion Shares and 2,275,000 Warrant Shares. All such
              shares
              shall remain in reserve with the Transfer Agent until the Buyers provides
              the Transfer Agent instructions that the shares or any part of them
              shall
              be taken out of reserve and shall no longer be subject to the terms
              of
              these instructions. 

          

     

    	b.  	
            The
              Company hereby irrevocably appoints the Escrow Agent as a duly authorized
              agent of the Company for the purposes of authorizing the Transfer Agent
              to
              process issuances and transfers specifically contemplated
              herein.

          

     

    	c.  	
            The
              Transfer Agent shall rely exclusively on the Conversion Notice, the
              Escrow
              Notice, or the Exercise Notice and shall have no liability for relying
              on
              such instructions. Any Conversion Notice, Escrow Notice, or Exercise
              Notice delivered hereunder shall constitute an irrevocable instruction
              to
              the Transfer Agent to process such notice or notices in accordance
              with
              the terms thereof. Such notice or notices may be transmitted to the
              Transfer Agent by facsimile or any commercially reasonable
              method.

          

     

    	d.  	
            The
              Company hereby confirms to the Transfer Agent and the Buyers that no
              instructions other than as contemplated herein will be given to Transfer
              Agent by the Company with respect to the matters referenced herein.
              The
              Company hereby authorizes the Transfer Agent, and the Transfer Agent
              shall
              be obligated, to disregard any contrary instructions received by or
              on
              behalf of the Company.

          

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Certain
      Notice Regarding the Escrow Agent.
      The
      Company and the Transfer Agent hereby acknowledge that the Escrow Agent is
      general counsel to the Buyers, a partner of the general partner of the Buyers
      and counsel to the Buyers in connection with the transactions contemplated
      and
      referred herein. The Company and the Transfer Agent agree that in the event
      of
      any dispute arising in connection with this Agreement or otherwise in connection
      with any transaction or agreement contemplated and referred herein, the Escrow
      Agent shall be permitted to continue to represent the Buyers and neither the
      Company nor the Transfer Agent will seek to disqualify such
      counsel.

     

    The
      Company hereby agrees that it shall not replace the Transfer Agent as the
      Company’s transfer agent without the prior written consent of the
      Buyers.

     

    Any
      attempt by Transfer Agent to resign as the Company’s transfer agent hereunder
      shall not be effective until such time as the Company provides to the Transfer
      Agent written notice that a suitable replacement has agreed to serve as transfer
      agent and to be bound by the terms and conditions of these Irrevocable Transfer
      Agent Instructions.

     

    The
      Company herby confirms and the Transfer Agent acknowledges for so
      long
      as the aggregate principal amount on the Debentures remains unpaid and
      unconverted in an aggregate amount over Two Hundred Thousand Dollars ($200,000)
      the Company and the
      Transfer Agent
      shall
      not, without the prior consent of the Buyers, (i) issue any Common Stock or
      Preferred Stock without consideration or for a consideration per share less
      than
      closing bid price determined immediately prior to its issuance, (ii) issue
      any Preferred Stock, warrant, option, right, contract, call, or other security
      or instrument granting the holder thereof the right to acquire Common Stock
      without consideration or for a consideration per share less than the closing
      bid
      price of the Common Stock determined immediately prior to its issuance,
(iii)
      issue any S-8
      shares of the Company’s Common Stock.

     

     The
      Company and the Transfer Agent hereby acknowledge and confirm that complying
      with the terms of this Agreement does not and shall not prohibit the Transfer
      Agent from satisfying any and all fiduciary responsibilities and duties it
      may
      owe to the Company.

     

    The
      Company and the Transfer Agent acknowledge that the Buyers is relying on the
      representations and covenants made by the Company and the Transfer Agent
      hereunder and are a material inducement to the Buyers purchasing convertible
      debentures under the Securities Purchase Agreement. The Company and the Transfer
      Agent further acknowledge that without such representations and covenants of
      the
      Company and the Transfer Agent made hereunder, the Buyers would not purchase
      the
      Debentures.

     

    Each
      party hereto specifically acknowledges and agrees that in the event of a breach
      or threatened breach by a party hereto of any provision hereof, the Buyers
      will
      be irreparably damaged and that damages at law would be an inadequate remedy
      if
      these Irrevocable Transfer 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Agent
      Instructions were not specifically enforced. Therefore, in the event of a breach
      or threatened breach by a party hereto, including, without limitation, the
      attempted termination of the agency relationship created by this instrument,
      the
      Buyers shall be entitled, in addition to all other rights or remedies, to an
      injunction restraining such breach, without being required to show any actual
      damage or to post any bond or other security, and/or to a decree for specific
      performance of the provisions of these Irrevocable Transfer Agent
      Instructions.

     

    This
      these instructions shall be governed by and construed in accordance with the
      laws of the State of New Jersey, without giving effect to conflicts of laws
      thereof. Each of the parties consents to the jurisdiction of the Superior Courts
      of the State of New Jersey sitting in Hudson County, New Jersey and the
      U.S. District Court for the District of New Jersey sitting in Newark, New
      Jersey in connection with any dispute arising under this Debenture and hereby
      waives, to the maximum extent permitted by law, any objection, including any
      objection based on forum non conveniens
      to the
      bringing of any such proceeding in such jurisdictions. 

     

     

     

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      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

     

    IN
      WITNESS WHEREOF,
      the
      parties have caused this letter agreement regarding Irrevocable Transfer Agent
      Instructions to be duly executed and delivered as of the date first written
      above.

     

    
      	 	
              COMPANY:

            
	 	 
	 	
              Newgold,
                Inc.

            
	 	 
	 	
              By:
                /s/ SCOTT DOCKTER

            
	 	
              Name: 
                Scott Dockter

            
	 	
              Title: Chief
                Executive Officer

            
	 	 
	 	 
	 	/s/
              DAVID GONZALEZ       
	 	
              David
                Gonzalez, Esq.

            
	 	 
	 	 

    

    

    TRANSFER
      ONLINE, INC.

    

    By:___________________________

    Name:_________________________

    Title:__________________________

    

    

    

    

    

    
      
        
           

        

         

      

      
        7

        
          

        

      

      
         

        
        

      

    

    

     

    SCHEDULE
      I

     

     

    SCHEDULE
      OF BUYERS 

     

    
      	
              Name

            	
              Signature

            	
              Address/Facsimile
                

              Number
                of Buyers

            
	 	 	 
	
              Cornell
                Capital Partners, LP

            	
              By: Yorkville
                Advisors, LLC

            	
              101
                Hudson Street - Suite 3700

            
	 	
              Its: General
                Partner

            	
              Jersey
                City, NJ 07303

            
	 	 	
              Facsimile:
                 (201)
                985-8266

            
	 	 	 
	 	
              By:_____________________

            	 
	 	
              Name: Mark
                Angelo

            	 
	 	
              Its: Portfolio
                Manager

            	 
	 	 	 

    

    

    

    

    

    
      
        
          SCHEDULE
            I-1

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

     

    EXHIBIT
      I

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF NOTICE OF EFFECTIVENESS

     

    OF
      REGISTRATION STATEMENT

     

    

    _________,
      2006

    

    ________

    

    

    Attention: 

    

    RE: NEWGOLD,
      INC.

    

    Ladies
      and Gentlemen:

    

    We
      are
      counsel to Newgold, Inc., (the “Company”),
      and
      have represented the Company in connection with that certain Securities Purchase
      Agreement, dated as of September __, 2006 (the “Securities
      Purchase Agreement”),
      entered into by and among the Company and the Buyers set forth on Schedule
      I
      attached thereto (collectively the “Buyers”)
      pursuant to which the Company has agreed to sell to the Buyers up to $2,200,000
      of secured convertible debentures, which shall be convertible into shares (the
      “Conversion
      Shares”)
      of the
      Company’s common stock, par value $0.001 per share (the “Common
      Stock”),
      in
      accordance with the terms of the Securities Purchase Agreement. Pursuant to
      the
      Securities Purchase Agreement, the Company also has entered into a Registration
      Rights Agreement, dated as of September ___, 2006, with the Buyers (the
“Investor
      Registration Rights Agreement”)
      pursuant to which the Company agreed, among other things, to register the
      Conversion Shares under the Securities Act of 1933, as amended (the
“1933
      Act”).
      In
      connection with the Company’s obligations under the Securities Purchase
      Agreement and the Registration Rights Agreement, on _______, 2006, the Company
      filed a Registration Statement (File No. ___-_________) (the “Registration
      Statement”)
      with
      the Securities and Exchange Commission (the “SEC”)
      relating to the sale of the Conversion Shares.

     

    In
      connection with the foregoing, we advise the Transfer Agent that a member of
      the
      SEC’s staff has advised us by telephone that the SEC has entered an order
      declaring the Registration Statement effective under the 1933 Act at ____ P.M.
      on __________, 2006 and we have no knowledge, after telephonic inquiry of a
      member of the SEC’s staff, that any stop order suspending its effectiveness has
      been issued or that any proceedings for that purpose are pending before, or
      threatened by, the SEC and the Conversion Shares are available for sale under
      the 1933 Act pursuant to the Registration Statement.

     

    
      
        EXHIBIT
          I-1

      

      
         

        
          

        

      

      
         

      

    

    The
      Buyers has confirmed it shall comply with all securities laws and regulations
      applicable to it including applicable prospectus delivery requirements upon
      sale
      of the Conversion Shares.

     

    

    Very
      truly yours,

    
 

    By:      

    

    

    

    

    
      
        
          EXHIBIT
            I-2

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

     

    EXHIBIT
      II

     

    TO
      IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

     

    FORM
      OF OPINION

     

    

    ________________
      2006

    

    VIA
      FACSIMILE AND REGULAR MAIL

    

    ________

    

    

    Attention: 

    

    RE: NEWGOLD,
      INC.

    

    Ladies
      and Gentlemen:

     

    We
      have
      acted as special counsel to Newgold, Inc. (the “Company”),
      in
      connection with the registration of ___________shares (the “Shares”)
      of its
      common stock with the Securities and Exchange Commission (the “SEC”).
      We
      have
      not acted as your counsel. This opinion is given at the request and with the
      consent of the Company.

     

    In
      rendering this opinion we have relied on the accuracy of the Company’s
      Registration Statement on Form SB-2, as amended (the “Registration
      Statement”),
      filed
      by the Company with the SEC on _________ ___, 2006. The Company filed the
      Registration Statement on behalf of certain selling stockholders (the
“Selling
      Stockholders”).
      This
      opinion relates solely
      to the
      Selling Shareholders listed on Exhibit
      “A”
      hereto
      and number of Shares set forth opposite such Selling Stockholders’ names. The
      SEC declared the Registration Statement effective on __________ ___,
      2006.

     

    We
      understand that the Selling Stockholders acquired the Shares in a private
      offering exempt from registration under the Securities Act of 1933, as amended.
      Information regarding the Shares to be sold by the Selling Shareholders is
      contained under the heading “Selling Stockholders” in the Registration
      Statement, which information is incorporated herein by reference. This opinion
      does not relate to the issuance of the Shares to the Selling Stockholders.
      The
      opinions set forth herein relate solely to the sale or transfer by the Selling
      Stockholders pursuant to the Registration Statement under the Federal laws
      of
      the United States of America. We do not express any opinion concerning any
      law
      of any state or other jurisdiction.

     

    In
      rendering this opinion we have relied upon the accuracy of the foregoing
      statements.

     

    Based
      on
      the foregoing, it is our opinion that the Shares have been registered with
      the
      Securities and Exchange Commission under the Securities Act of 1933, as amended,
      and that ________ may remove the restrictive legends contained on the Shares.
      This opinion relates solely
      to the
      number of Shares set forth opposite the Selling Stockholders listed on
Exhibit
      “A”
      hereto.

     

    This
      opinion is furnished to Transfer Agent specifically in connection with the
      sale
      or transfer of the Shares, and solely for your information and benefit. This
      letter may not be relied upon by Transfer Agent in any other connection, and
      it
      may not be relied upon by any other person or entity for any purpose without
      our
      prior written consent. This opinion may not be assigned, quoted or used without
      our prior written consent. The opinions set forth herein are rendered as of
      the
      date hereof and we will not supplement this opinion with respect to changes
      in
      the law or factual matters subsequent to the date hereof.

     

    Very
      truly yours,

     

    
      
        
          EXHIBIT
            II

        

         

      

      
         

        
          

        

      

      
         

        
        

      

    

     

    EXHIBIT
      A

     

    (LIST
      OF SELLING STOCKHOLDERS)

     

    

    
      	
              Name:

            	
              No.
                of Shares:

            
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

    

    

    
 

     

     

     

     

     

     

     

     

     

     

    EXHIBIT
      A

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