Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Response Biomedical Corp. - Exhibit 4.26

March 15, 2006

Response Biomedical Corp. 
100-8900 Glenlyon Parkway

Burnaby, BC V5J 5J8 
Canada

Dear Bill:

          This
  letter confirms your agreement to retain Delafield Hambrecht, Inc. (the “Placement
  Agent” or “DHI”) as your exclusive agent outside of Canada to
  introduce Response Biomedical (the “Company”) to certain non-Canadian
  investors as prospective purchasers of the Company’s Equity or Equity Related
  Securities (“Securities”) in connection with a possible private placement
  (the “Transaction”), for a period commencing on the date of this letter
  and terminating December 12, 2006, unless otherwise terminated or unless extended
  by the parties. DHI and the Company will list on Exhibit C investors that DHI
  will contact on behalf of the Company (the “Investors”). This letters
  replaces the letter signed by the Company and the Placement Agent on November
  18, 2005 and December 12, 2005.

          As
  Placement Agent under this agreement, Placement Agent will use its reasonable
  best efforts to complete the Transaction as soon as practicable. The terms of
  the Transaction shall be subject to mutual agreement of the Company and each
  Investor in the Transaction. The Placement Agent will contact potential Investors,
  assist in the negotiation and the structuring of the Transaction, assist in
  the preparation of a Private Placement Memorandum or other appropriate materials
  and provide related services to facilitate the successful completion of the
  Transaction. The Placement Agent will conduct all sales and solicitation efforts
  in a manner consistent with the Company’s intent that the Transaction be
  an exempt transaction pursuant to the Securities Act of 1933, as amended (the
  "Act"), and available exemptions under all applicable state securities laws
  and only to “Accredited Investors” as defined in Rule 501(a) under
  the Act.

          The
  Company shall in any event have sole and final authority to approve the timing,
  price, investors and other terms of the Transaction and may at any time elect
  not to proceed with the Transaction.

          The
  Transaction will be a private placement in accordance with the applicable laws
  of the United States and pursuant to the following procedures and terms and
  conditions:

1) (a) Prior to the signing of any purchase agreements with Investors,
  officers of the Company with responsibility for financial affairs have been
  and will continue to be available to answer inquiries from prospective Investors
  approved by the Company. After the purchase agreements and the information referred
  to therein have been reviewed by Investors, and they have had the opportunity
  to address inquiries to the 

- 1 -

Company, separate purchase agreements will be completed with
each prospective Investor approved by the Company. The conditions to the closing
of the Transaction (the "Closing") shall be set forth in the purchase agreements
and mutually agreed between the Company and the Investors.

          (b)
  Presently the Company plans to sell CDN$10 million or such greater or lesser
  amount as the Company shall determine to be appropriate of Securities in the
  United States and Canada, but the number of shares the Company shall ultimately
  agree to sell pursuant to each of the various purchase agreements and the terms
  on which the Securities will be sold is entirely within its discretion.

          (c)
  The Company will perform the agreements set forth in the purchase agreements
  entered into with the Investors.

          (d)
  The Company will if requested by the Placement Agent, use its reasonable efforts
  to cause the Company’s intellectual property counsel to address and deliver
  to the Company and the Placement Agent a letter, dated as of the date of the
  Closing which letter shall address such matters as the Placement Agent shall
  reasonably request. 

(2) The terms of Securities to be issued and sold by the
Company in the Transaction will be specified in writing by the Placement Agent
on behalf of the Company (by facsimile, letter or otherwise) to the prospective
purchasers prior to the execution of the purchase agreements, subject to the
Company’s approval.

(3) The Placement Agent’s aggregate fee for introducing the
Investors, preparing the Placement Memorandum (subject to the Company’s review
and approval) and all other services provided by the Placement Agent in
connection therewith, shall be comprised of:

	 	(a) 	
      a cash fee equal to 7% of the gross proceeds from the
      sale of the Securities pursuant to the purchase agreements for up to
      CDN$10 million, but no less than CDN$7 million and 5% of any gross
      proceeds in excess of CDN$10 million, plus

	 	 	 
	 	(b) 	
      a two (2) year non-cancelable warrant to purchase Common
      Stock of the Company (the "Placement Warrant"), to be issued by the
      Company to the Placement Agent as of the Closing Date, and immediately
      exercisable, subject to the same terms and restrictions as other warrants
      issued to investors in the Transaction. The Placement Warrant will provide
      to the Placement Agent the right to invest in the Company an amount equal
      to 7.0% of the gross proceeds raised in the Transaction up to CDN$7
      million of gross proceeds.

          The
  aggregate fees shall be paid at Closing, provided however, that no fees will
  be due on any Securities subscribed for in either the concurrent non-brokered
  private 

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placement announced December 14, 2005 of up to CDN$2 million or
the concurrent brokered round of CDN$3 million being led in Canada by Haywood
Securities.

          In
  addition, the Company shall reimburse, regardless of the consummation of the
  sale contemplated hereby, the Placement Agent for all of the reasonable travel,
  legal and other out-of-pocket expenses incurred in connection with the engagement
  hereunder. If the Transaction contemplated in this agreement is consummated,
  then such expenses shall be reimbursed at closing. Upon request, the Placement
  Agent agrees to provide the Company with a reasonably detailed description of
  such expenses. Expenses that exceed a cumulative total of $50,000 must be pre-approved
  by the Company.

          If
  within twelve months after the termination of this agreement, Securities are
  purchased by Investors listed on Exhibit C and are not listed on Exhibit D,
  then the Company shall pay the Placement Agent, at the time of each such sale
  an amount equal to the full fee set forth above.

(4) The Company hereby represents and warrants to the Placement
Agent that it has not had and will not have any discussions with any person on
the basis of which such person would be able to assert a claim for a finder’s
fee in connection with the sale by the Company of the Securities covered by this
letter to prospects outside of Canada.

(5) The Company hereby represents and warrants to the Placement
Agent that during the term of this engagement the Company will not (i) except as
contemplated in this agreement, offer any securities for sale to, or solicit any
offers to buy from, any person or persons, whether directly or indirectly, other
than through the Placement Agent or (ii) engage in any discussions with any
person other than representatives of the Placement Agent for the purpose of
engaging, or considering the engagement of, such person as a finder or broker in
connection with the sale by the Company of the Securities covered by this letter
to prospects outside of Canada.

(6) The Company will cause each of its officers and directors
not to dispose of any equity securities of the Company for a period of four
months from the closing date of the Transaction without the prior written
consent of the Placement Agent, and will use its best efforts to cause such of
its stockholders as may be designated by the Placement Agent to become subject
to a lock-up arrangement reasonably acceptable to the Placement Agent that will
prohibit the disposition of any equity securities of the Company for a period of
four months from the closing of the Transaction without the prior written
consent of the Placement Agent. The lock-up arrangement shall provide an
exemption to officers with options expiring during the four-month period
following the closing of the Transaction from selling such options or their
underlying shares. A copy of the lock-up arrangement executed by all of the
Company’s officers and directors, who will remain officers and directors
following the Transaction, shall be provided to the Placement Agent at
closing.

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(7) The Company hereby agrees to indemnify the Placement Agent
in accordance with the Standard Form of Indemnification Agreement set forth as
Exhibit B hereto, the terms of which are incorporated herein by reference in
their entirety.

(8) The Placement Agent may, to the extent it deems
appropriate, render the services hereunder through one or more of its
affiliates. Neither this engagement, nor the delivery of any advice in
connection with this engagement, is intended to confer rights upon any persons
not a party hereto (including security holders, employees or creditors of the
Company) as against Placement Agent or our affiliates or their respective
directors, officers, agents and employees. It is expressly understood and agreed
that Placement Agent is not undertaking to provide any advice relating to legal,
regulatory, accounting or tax matters. In furtherance thereof, the Company
acknowledges and agrees that (a) it and its affiliates have relied and will
continue to rely on the advice of its own legal, tax and accounting advisors for
all matters relating to the Transaction, and all other matters and (b) neither
it, nor any of its affiliates, has received, or has relied upon, the advice of
Placement Agent or any of its affiliates regarding matters of law, taxation or
accounting.

(9) From the date of this letter agreement and for a period of
one year thereafter, the Company will furnish to the Placement Agent:

          (a)
  As soon as practicable (but in the case of the annual report of the Company
  to its stockholders, within 150 days after the end of each fiscal year of the
  Company), one copy of: (i) its annual report to its stockholders (which annual
  report shall contain financial statements audited in accordance with generally
  accepted accounting principles in the United States of America by a firm of
  certified public accountants of recognized standing), (ii) if not included in
  substance in its annual report to stockholders, its annual report on Form 20-F,
  (iii) each of its quarterly reports to its stockholders and, if not included
  in substance in its quarterly report to stockholders, its quarterly report on
  Form 6-K, and (iv) if required, a copy of the full Registration Statement (the
  foregoing, in each case, excluding exhibits); and

          (b)
  Upon reasonable request, all exhibits excluded by the parenthetical to the last
  clause of the immediately preceding paragraph and all other information that
  is generally available to the public; and

          (c)
  The Company upon reasonable request will meet with the Placement Agent or its
  representatives to discuss any of the information referred to in subsections
  (a) and (b) above. . 

(10) The Company acknowledges that the Placement Agent has been
retained by the Company and that the Company’s engagement of the Placement Agent
is as an independent contractor and not in any other capacity including as a
fiduciary. Nothing in this letter shall be deemed to create a partnership, joint
venture or agency relationship between the parties. The Placement Agent
undertakes responsibility to perform such duties and obligations only as
expressly set forth herein. The Company acknowledges that Placement Agent
disclaims any implied duties (including any fiduciary duty), 

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covenants or obligations arising from the Placement Agent’s
performance of the duties and obligations expressly set forth herein. In no
event shall the Placement Agent be obligated to purchase any Securities for its
own account or for the accounts of its customers.

(11) Either the Company or the Placement Agent may terminate
the Placement Agent’s engagement hereunder at any time for any reason upon at
least 20 days’ prior written notice to the other party. Additionally, (i) the
Company shall remain responsible for the reimbursement of the Placement Agent’s
expenses under paragraph 3 of this letter agreement, notwithstanding any
expiration or termination hereof, and (ii) the reimbursement, indemnification
and contribution obligations of the Company under paragraph 7 of this letter
agreement shall continue to be applicable, notwithstanding any expiration or
termination of this letter agreement, or any sale of the shares of Common
Stock.

(12) The Company understands and agrees that, without the
Placement Agent’s prior written consent, the Placement Agent may not be quoted
or referred to in any document, release or communication prepared, issued or
transmitted by the Company, including any entity controlled by, or under common
control with, the Company and any director, officer, employee or agent
thereof.

(13) The Company agrees that following the consummation of the
sale of the Securities contemplated hereby, the Placement Agent shall have the
right to place usual and customary advertisements in financial and other
newspapers and journals at its own expense describing its services to the
Company.

(14) The benefits of this letter agreement shall inure to
respective successors and assigns of the parties hereto and of the indemnified
parties, and the obligations and liabilities assumed in this agreement by the
parties hereto shall be binding upon their respective successors and
assigns.

(15) THIS LETTER AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF WASHINGTON GOVERNING CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE
WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. The Company and the
Placement Agent hereby irrevocably and unconditionally consent to submit to the
exclusive jurisdiction of the courts of the State of Washington and of the
United States District Courts located in the County of King for any lawsuits,
actions or other proceedings arising out of or relating to courts. The Company
further agrees that service of any process, summons, notice or document by mail
to the Company’s address set forth above shall be effective service of process
for any lawsuit, action or other proceeding brought against the Company in any
such court. The Company and the Placement Agent hereby irrevocably and
unconditionally waive any objection to the laying of venue of any lawsuit,
action or other proceeding arising out of or relating to this Agreement in the
courts of the State of Washington or the United States District Courts located
in the County of King, and hereby further irrevocably and unconditionally waive
and agree not to plead or claim in any such court 

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that any such lawsuit, action or other proceeding brought in
any such court has been brought in an inconvenient forum.

(17) This letter agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original and all of which
together shall be deemed to be the same agreement.

If the foregoing is in accordance with your understanding of
our agreement, please sign in the space provided below and return a signed copy
of this letter to us.

Sincerely, 

DELAFIELD HAMBRECHT, INC.

	By: _______________________________________
	       J.D. Delafield, President &
      Chief Executive Officer 

Accepted by:

RESPONSE BIOMEDICAL CORP.

	By: _______________________________________
	        Bill Radvak,
      President & Chief Executive Officer 

- 6 -

EXHIBIT B

November 18, 2005

Response Biomedical Corp. 
100-8900 Glenlyon Parkway

Burnaby, BC V5J 5J8 
Canada

Ladies and Gentlemen:

          In
  connection with your request that we assist you with the matters you have identified
  to us, you and we are entering into this indemnification letter agreement. It
  is understood and agreed that in the event that Delafield Hambrecht, Inc. or
  any of our officers, directors, employees, agents, affiliates, partners or controlling
  persons (each of the foregoing, including Delafield Hambrecht, Inc., being an
  “Indemnified Person”), become involved in any capacity in any action,
  claim, suit, proceeding or investigation (collectively referred to herein as
  a “Dispute”) brought or threatened by or against any person, including
  your stockholders, related to, arising out of or in connection with our engagement
  or any matter referred to in the engagement, you will promptly reimburse, upon
  demand, each such Indemnified Person for its legal and other expenses, including
  without limitation the cost of any investigation, preparation for or response,
  as and when they are incurred in connection therewith. You will indemnify and
  hold harmless each Indemnified Person from and against, and you agree that no
  Indemnified Person shall have any liability, whether direct or indirect, in
  contract or tort or otherwise, to you, your affiliates, security holders or
  creditors, for any losses, claims, damages, liabilities or expense (collectively,
  “Losses”) to which any Indemnified Person may become subject under
  any applicable federal or state law, or otherwise, related to, arising out of
  or in connection with our engagement, whether or not any Dispute giving rise
  to such Losses is initiated or brought by you or on your behalf and whether
  or not in connection with any Dispute in which you or such Indemnified Persons
  are a party, except to the extent that any such Losses are found by a court
  of competent jurisdiction in a judgment which has become final in that it is
  no longer subject to appeal or review to have resulted primarily from such Indemnified
  Person’s gross negligence or fraud. If multiple claims are brought against
  us in an arbitration related to, arising out of or in connection with our engagement,
  with respect to at least one of which such claims indemnification is permitted
  under applicable law, you agree that any arbitration award shall be conclusively
  deemed to be based on claims as to which indemnification is permitted and provided
  for hereunder, except to the extent the arbitration award expressly states that
  the award, or any portion thereof, is based solely on a claim as to which indemnification
  is not available.

          If
  for any reason the foregoing indemnification is held unenforceable or is insufficient
  to hold an Indemnified Person harmless, then you shall contribute to the Losses
  for which such indemnification is held unenforceable or is insufficient in such
  proportion as is appropriate to reflect the relative benefits received, or sought
  to be 

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received, by you and your security holders on the one hand and
the party entitled to contribution on the other hand in the matters contemplated
by our engagement as well as the relative fault of yourselves and such party
with respect to such Losses and any other relevant equitable considerations. You
agree that for the purposes hereof the relative benefits received, or sought to
be received, by you and your security holders and ourselves shall be deemed to
be in the same proportion as (i) the total value paid or proposed to be paid or
received by you or your security holders, as the case may be, pursuant to the
transaction (whether or not consummated) for which we have been engaged to
perform services bears to (ii) the fees actually received by us in connection
with such engagement; provided, however, that, to the extent permitted by
applicable law, in no event shall we or any other Indemnified Person be required
to contribute an aggregate amount in excess of the aggregate fees actually paid
to us for such services. Your reimbursement, indemnity and contribution
obligations under this letter shall be in addition to any liability which you
may otherwise have, shall not be limited by any rights we or any other
Indemnified Person may otherwise have and shall be binding upon and inure to the
benefit of any successors, assigns, heirs and personal representatives of
yourselves, ourselves, and any other Indemnified Persons.

          You
  agree that, without our prior written consent, you will not settle, compromise
  or consent to the entry of any judgment in or otherwise seek to terminate any
  Dispute in respect of which indemnification or contribution could be sought
  hereunder (whether or not we or any other Indemnified Persons are an actual
  or potential party to such claim, action or proceeding or investigation), unless
  such settlement, compromise or consent includes an unconditional release of
  each Indemnified Person from all liability arising out of such Dispute. The
  Company will not permit any such settlement, compromise, consent or termination
  to include a statement as to, or an admission of, fault, culpability or a failure
  to act by or on behalf of an Indemnified Person, without such Indemnified Person’s
  prior written consent. You further agree that the Indemnified Persons are entitled
  to retain separate counsel of their choice in connection with any of the matters
  in respect of which indemnification, reimbursement or contribution may be sought
  under this Agreement. Your obligations hereunder shall be in addition to any
  rights that any Indemnified Person may have at common law or otherwise. No waiver,
  amendment or other modification of this agreement shall be effective unless
  in writing and signed by each party to be bound thereby. This agreement and
  any claim related directly or indirectly to this agreement shall be governed
  and construed in accordance with the laws of the State of Washington, without
  regard to the conflicts of law provisions thereof. No such claim shall be commenced,
  prosecuted or continued in any forum other than the courts of the State of Washington
  located in King County and each of the parties hereto submits to the jurisdiction
  of such courts. We and you (on your own behalf and, to the extent permitted
  by applicable law, on behalf of your security holders and creditors) waive all
  right to trial by jury in any action, proceeding or counterclaim, whether based
  upon contract, tort or otherwise, related to or arising out of or in connection
  with our engagement. The provisions of this agreement shall apply to the engagement
  (including related activities prior to the date hereof) and any modification
  thereof and shall remain in full force and effect indefinitely, regardless of
  the completion or termination of the engagement. If any provision, covenant
  or restriction herein is held by a court of competent jurisdiction to be invalid,
  void, unenforceable or against public policy, then the 

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court so holding shall at our or your request, reform such
provision to give the maximum permissible intent to the intentions of the
parties as set forth herein, and the court shall enforce such provision as so
reformed. If, notwithstanding the foregoing, any provision, covenant or
restriction is held by a court of competent jurisdiction to be invalid, void,
unenforceable or against public policy, the remainder of the provisions
contained herein shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.

Very truly yours,

DELAFIELD HAMBRECHT, INC.

	By: 	/s/
      J.D. Delafield 	 
	  	J.D. Delafield 	 
	  	President & Chief Executive Officer 	 

Accepted and agreed to as of the date set forth above:

RESPONSE BIOMEDICAL, CORP.

	By: 	/s/
      Bill Radvak 	 
	  	Bill Radvak 	 
	  	President & Chief Executive Officer 	 

- 9 -Filed by Automated Filing Services Inc. (604) 609-0244 - Response Biomedical Corp. - Exhibit 4.28

AGENCY AGREEMENT 

March 30, 2006 

	Response Biomedical Corp. 
	100-8900 Glenlyon Parkway, 
	Burnaby, British Columbia 
	V5J 5J8 

	Attention: 	Mr. Bill Radvak, 
	  	President and Chief Executive Officer
  

Dear Sirs/Mesdames: 

Re: Private Placement of Units 

We, Haywood Securities Inc. (the “Agent” or “we”
or “us” or “our”), understand that Response Biomedical Corp. (the
“Company” or “you” or “your”) proposes to appoint us as
your agent to sell units of the Company (the “Units”) at a price of $0.50
per Unit, each Unit consisting of one common share (a “Common Share”) in
the capital of the Company and one half of one share purchase warrant (a
“Warrant”), pursuant to which the Company may issue up to 6,000,000 Units
(the “ Offering ”). The Offering will be carried out in the Provinces of
Ontario, British Columbia and Alberta (collectively, the “Provinces”) and
elsewhere as permitted herein. 

Each whole Warrant shall entitle the holder to acquire one
Common Share in the capital of the Company (a “Warrant Share”) at a price
of $0.62 per Warrant Share at any time after the Closing Time (as defined
herein) and on or before 4:30 p.m. (Vancouver Time) on the day that is 24 months
after the Closing Date (as defined herein) or if such day is not a business day,
then on the next business day immediately following such day. 

Definitions 

	1. 	
      All capitalized terms that are not otherwise defined
      herein shall have the meanings assigned to them below:

	 	 	 
		(a) 	
      “Action” has the meaning given to it in Section 7
      (j);

	 	 	 
		(b) 	
      “Agent’s Warrant ” has the meaning given to it in
      Section 10(b);

	 	 	 
		(c) 	
      “Applicable Securities Legislation” means the
      securities legislation of the Provinces;

	 	 	 
		(d) 	
      “Business Day” means a day other than a Saturday,
      Sunday or any other day on which the principal chartered banks located in
      the City of Vancouver are not open for business during normal business
      hours;

	 	 	 
		(e) 	
      “Canadian Disclosure Documents ” has the meaning
      given to it in Section7(h);

- 2 - 

	 	(f) 	 “Cash Commission” has the meaning given
        to it in Section 10(a);

	 	 	 
	 	(g) 	 “claims ” has the meaning given to
        it in Section 20;

	 	 	 
	 	(h) 	 “Closing ” means the completion of
        the purchase and sale of the Units;

	 	 	 
	 	(i) 	 “Closing Date ” means on or before
        March 30, 2006 or such other date as the Company and the Agent may agree;

	 	 	 
	 	(j) 	 “Closing Time ” means 11:00 a.m. (Vancouver
        Time) on the Closing Date or such other time as the Company or the Agent
        may agree;

	 	 	 
	 	(k) 	 “Common Share Equivalents ” has the
        meaning given to it in Section 7(g);

	 	 	 
	 	(l) 	 “Continuous Disclosure Record ” means
        all documents that the Company has filed with the securities regulatory
        authorities of the Provinces on SEDAR pursuant to the Applicable Securities
        Legislation, including, without limitation, annual information forms,
        management proxy circulars, annual and interim financial statements, annual
        and quarterly reports, press releases and material change reports;

	 	 	 
	 	(m) 	 “Delafield ” has the meaning given
        to it in Section 7(s);

	 	 	 
	 	(n) 	 “Disclosure Schedules” has the meaning
        given to it in Section 7;

	 	 	 
	 	(o) 	 “Evaluation Date ” has the meaning
        given to it in Section 7(r);

	 	 	 
	 	(p) 	 “Exchange ” means the TSX Venture Exchange;

	 	 	 
	 	(q) 	 “GAAP” has the meaning given to it
        in Section 7(h);

	 	 	 
	 	(r) 	 “Indebtedness” has the meaning given
        to it in Section 7(aa);

	 	 	 
	 	(s) 	 “Indemnified Parties” has the meaning
        given to it in Section 20;

	 	 	 
	 	(t) 	 “Intellectual Property Rights ” has
        the meaning given to it in Section 7(o);

	 	 	 
	 	(u) 	 “Lien” has the meaning given to it
        in Section 7(d);

	 	 	 
	 	(v) 	 “Material Adverse Effect ” has the
        meaning given to it in Section 7(b);

	 	 	 
	 	(w) 	 “Material Change ” has the meaning
        given to it in National Instrument 51-102

        Continuous Disclosure Obligations; 

	 	 	 
	 	(x) 	 “Material Permits ” has the meaning
        given to it in Section 7(m);

	 	 	 
	 	(y) 	 “Offered Securities” means, collectively,
        the Units, the Common Shares, the Warrants, the Warrant Shares, and the
        Agent’s Warrant;

- 3 - 

	 	(z) 	
      “Required Approvals ” has the meaning given to it
      in Section 7(e);

	 	 	 
	 	(aa) 	
      “Right of First Refusal” has the meaning given to
      it in Section 29;

	 	 	 
	 	(bb) 	
      “Securities Commissions” means the British
      Columbia, Alberta and Ontario Securities Commissions;

	 	 	 
	 	(cc) 	
      “SEC Reports ” has the meaning given to it in
      Section 7(h);

	 	 	 
	 	(dd) 	
      “Stock Option Plan” means the incentive
      compensation plan, stock option plan and other similar agreements of the
      Company, if any;

	 	 	 
	 	(ee) 	
      “Subscribers ” has the meaning given to it in
      Section 3;

	 	 	 
	 	(ff) 	
      “Subscription Agreement ” has the meaning given to
      it in Section 5;

	 	 	 
	 	(gg) 	
      “Subsidiaries” has the meaning given to it in
      Section 7(a)

	 	 	 
	 	(hh) 	
      “1933 Act ” has the meaning given to it in Section
      5; and

	 	 	 
	 	(ii) 	
      “1934 Act ” has the meaning given to it in Section
      7(h);

Appointment of Agent 

	2. 	
      The Company appoints us as an agent, and we hereby agree
      to accept the appointment and to act as your agent in connection with the
      Offering and to use our commercially reasonable best efforts to effect the
      sale of all of the Units on your behalf on the terms and conditions set
      out herein. It is understood and agreed that the Agent is under no
      obligation to purchase any Units, although it may subscribe fo r Units if
      it so desires.

Conduct of the Offering 

	3. 	
      The sale of the Units pursuant to the terms hereof is to
      be effected in a manner exempt from the prospectus and registration
      requirements of the Provinces without the necessity of obtaining any
      orders of any other Canadian securities regulatory authority in any of the
      Provinces. Accordingly, the subscribers of Units (the “Subscribers
      ”) will purchase the Units pursuant to available statutory exemptions
      and comparable provisions of the securities laws of the Provinces. The
      Company undertakes to file or cause to be filed, at its sole expense, all
      forms or undertakings required to be filed by the Company in connection
      with the Offering so that the distribution of the Units may lawfully occur
      in the Provinces without the necessity of filing a prospectus or obtaining
      any such orders.

	 	 
	4. 	
      Subject to receiving the prior written consent of the
      Company, we may also offer the Units outside of the Provinces, provided
      that such offers are made in compliance with all applicable laws and
      provided that we shall not take any action in connection with the
      distribution of the Units which would result in the Company being obliged
      to comply with the prospectus, registration, reporting or other similar
      requirements of any jurisdiction.

- 4 - 

	5. 	
      We agree that we shall: (a) conduct all of our activities
      in connection with arranging for the sale of the Units in compliance with
      all relevant laws and regulatory requirements; (b) not solicit offers to
      purchase or sell the Units so as to require registration thereof or the
      filing of a prospectus with respect thereto under the laws of any
      jurisdiction; (c) refrain from advertising the offering of the Units or
      engaging in any form of general solicitation; and (d) obtain from each
      Subscriber an executed subscription agreement (a “Subscription
      Agreement ”) in form and substance acceptable to the Company acting
      reasonably. We agree that we shall not deliver to any prospective
      subscriber of Units any document that would constitute an offering
      memorandum under Applicable Securities Legislation. We also agree that we
      will not make any representation or use any information concerning the
      Company in connection with the solicitation of offers for the Units except
      for such documents as the Company may permit us to use in connection with
      the Offering.

	 	 
		
      None of the Agent, its affiliates or any persons acting
      on its or their behalf, has made or will make: (i) any offer to sell or
      any solicitation of an offer to buy any Units to or for the benefit or
      account of any U.S. person (as defined in Rule 903 of Regulation S
      (“Regulation S”) (“U.S. Person”) under the United States
      Securities Act of 1933, as amended (the “1933 Act ”)) or person in
      the United States; (ii) any sale of Units to any Subscriber unless, at the
      time the buy order was or will have been originated, the Agent, or
      affiliates or persons acting on its behalf, reasonably believes that such
      Subscriber was outside the United States and not a U.S. Person; or (iii)
      any directed selling efforts (as defined in Regulatio n S) in the United
      States with respect to any of the Units, Common Shares, Warrants or
      Warrant Shares.

	 	 
		
      The Agent acknowledges and agrees that: (i) the Agent’s
      Warrant and the Common Shares issuable upon exercise thereof have not been
      and will not be registered under the U.S. Securities Act or the securities
      laws of any state; (ii) the Agent is not a U.S. Person, is not acquiring
      the Agent’s Warrant on behalf of a U.S. Person, did not receive the offer
      to acquire the Agent’s Warrant in the United States, and did not execute
      this Agreement in the United States; (iii) the Agent’s Warrant may not be
      exercised in the United States or by or on behalf of a U.S. Person unless
      an exemption is available from the registration requirements of the U.S.
      Securities Act and applicable state securities laws and the holder has
      delivered to the Company an opinion of counsel satisfactory to the Company
      to such effect; and (iv) the securities described in this paragraph may
      not be offered, sold or otherwise transferred in the United States unless
      an exemption from registration under the U.S. Securities Act and any
      applicable state securities law is available.

	 	 
	6. 	
      The Company will, within the time required by Applicable
      Securities Legislation, make all necessary filings, in prescribed form,
      under Applicable Securities Legislation with respect to the issue and sale
      of the Offered Securities and pay all filing fees in connection therewith
      and provide us with copies of such filings.

Representations, Warranties and Covenants of the
Company 

	7. 	
      Except as set forth under the corresponding section of
      the disclosure schedules delivered to subscribers in connection with the
      Subscription Agreement (the “Disclosure

- 5 - 

Schedules”) which Disclosure Schedules shall
  be deemed a part hereof, the Company warrants and represents to the Agent, as
  of the date hereof and as of the Closing Date, and acknowledges that the Agent
  is relying upon such representations and warranties as follows: 

	 	(a) 	 Subsidiaries. All of the direct and indirect
        subsidiaries of the Company (the “Subsidiaries)” are
        set forth on Schedule 5(a). The Company owns, directly or indirectly,
        all of the issued and outstanding shares or other equity interests of
        each Subsidiary free and clear of any Liens (as defined below), and all
        the issued and outstanding shares of each Subsidiary are validly issued
        and are fully paid, non- assessable and free of preemptive and similar
        rights to subscribe for or purchase securities. If the Company has no
        subsidiaries, then references in this Agreement to the Subsidiaries will
        be disregarded.

	 	 	 
	 	(b) 	 Organization and Qualification. Each of the Company
        and the Subsidiaries is a corporation duly incorporated, validly existing
        and in good standing under the laws of the jurisdiction of its incorporation,
        with the requisite corporate power and corporate authority to own and
        use its properties and assets and to carry on its business as currently
        conducted. Neither the Company nor any Subsidiary is in violation or default
        of any of the provisions of its respective articles of incorporation,
        bylaws or other organizational or charter documents. Each of the Company
        and the Subsidiaries is duly qualified to conduct business and is in good
        standing as a foreign corporation in each jurisdiction in which the nature
        of the business conducted or property owned by it makes such qualification
        necessary, except where the failure to be so qualified or in good standing,
        as the case may be, could not reasonably be expected to have or result
        in (i) a material adverse effect on the legality, validity or enforceability
        of this Agreement; (ii) a material adverse effect on the results of operations,
        assets, business, prospects or financial condition of the Company and
        the Subsidiaries, taken as a whole; or (iii) a material adverse effect
        on the Company’s ability to perform in any material respect on a
        timely basis its obligations under this Agreement (any of (i), (ii) or
        (iii), a “Material Adverse Effect”) and no proceeding
        has been instituted in any such jurisdiction revoking, limiting or curtailing
        or seeking to revoke, limit or curtail such power and authority or qualification.

	 	 	 
	 	(c) 	 Authorization; Enforcement . The Company has
        the requisite corporate power and corporate authority to enter into and
        to consummate the transactions contemplated by this Agreement and otherwise
        to carry out its obligations thereunder. The execution and delivery of
        this Agreement by the Company and the consummation by it of the transactions
        contemplated thereby have been duly authorized by all necessary action
        on the part of the Company and no further action is required by the Company
        in connection therewith other than in connection with the Required Approvals
        (as defined in Section 7(e) hereof). This Agreement has been (or upon
        delivery will have been) duly executed by the Company and, when delivered
        in accordance with the terms hereof, will constitute the valid and binding
        obligation of the Company enforceable against the Company in accordance
        with its terms except (i) as limited by applicable bankruptcy, insolvency,
        reorganization,

- 6 - 

moratorium and other laws of general
application affecting enforcement of creditors’ rights generally; (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies; and (iii) insofar as indemnification and
contribution provisions may be limited by applicable law. 

	 	(d) 	 No Conflicts. The execution, delivery
        and performance of this Agreement by the Company, the issuance and sale
        of the Common Shares and the consummation by the Company of the other
        transactions contemplated thereby do not and will not (i) conflict with
        or violate any provision of the Company’s or any Subsidiary’s
        articles of incorporation, bylaws or other organizational or charter documents,
        or (ii) conflict with, or constitute a default (or an event that with
        notice or lapse of time or both would become a default) under, result
        in the creation of any lien, charge, security interest, encumbrance, right
        of first refusal, preemptive right or other restriction (a “Lien”)
        upon any of the properties or assets of the Company or any Subsidiary,
        or give to others any rights of termination, amendment, acceleration or
        cancellation (with or without notice, lapse of time or both) of, any agreement,
        credit facility, debt or other instrument (evidencing a Company or Subsidiary
        debt or otherwise) or other understanding to which the Company or any
        Subsidiary is a party or by which any property or asset of the Company
        or any Subsidiary is bound or affected; or (iii) subject to the Required
        Approvals, conflict with or result in a violation of any law, rule, regulation,
        order, judgment, injunction, decree or other restriction of any court
        or governmental authority to which the Company or a Subsidiary is subject
        (including federal and state securities laws and regulations), or by which
        any property or asset of the Company or a Subsidiary is bound or affected;
        except in the case of each of clauses (ii) and (iii), such as could not
        reasonably be expected to have or result in a Material Adverse Effect.

	 	 	 	 
	 	(e) 	 Filings, Consents and Approvals. The
        Company is not required to obtain any consent, waiver, authorization or
        order of, give any notice to, or make any filing or registration with,
        any court or other federal, state, local or other governmental authority
        or other third party in connection with the execution, delivery and performance
        by the Company of this Agreement and the transactions contemplated herein
        other than (i) filings required pursuant to Applicable Securities Legislation
        and the rules and policies of the Exchange; (ii)  application(s)
        to the Exchange for the approval of the transactions contemplated hereunder
        and the listing of the Common Shares and Warrant Shares for trading thereon
        in the time and manner required thereby; (iii) the filing of Form D with
        the Securities and Exchange Commission (if the Company elects to rely
        on Rule 506 under the 1933 Act) and such filings as are required to be
        made under applicable United States state and Canadian provincial securities
        laws (collectively, the “Required Approvals ”); and (iv)
        the notices described in Schedule 5(e).

	 	 	 	 
	 	(f) 	 Issuance of the Offered Securities.
        The Common Shares and Warrants are duly authorized and, when issued and
        paid for in accordance with this Agreement, will

- 7 - 

be duly and validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the Company other than
restrictions on transfer provided for in this Agreement. The Warrant Shares,
when issued in accordance with the terms of this Agreement and the warrant
certificate will be validly issued, fully paid and nonassessable, free and clear
of all Liens imposed by the Company other than restrictions on transfer provided
for in this Agreement. The Company has reserved from its duly authorized capital
the maximum number of common shares issuable pursuant to this Agreement and the
Warrants. 

	 	(g) 	 Capitalization. The capitalization of the Company
        is as described in the Company’s most recent Canadian Disclosure
        Documents, as defined below, updated as set forth in Schedule 5(g). The
        Company has not issued any shares since such filing other than pursuant
        to the exercise of stock options under the Company’s Stock Option
        Plan, the issuance of Common Shares pursuant to the Company’s employee
        stock purchase plan and pursuant to the conversion or exercise of outstanding
        securities convertible, exchangeable or exerciseable for Common Shares
        of the Company (the “Common Share Equivalents ”). Except
        as has been complied with or waived, no third party has any right of first
        refusal, preemptive right, right of participation, or any similar right
        to participate in the transactions contemplated by this Agreement. Except
        as a result of the purchase and sale of the Offered Securities and as
        set forth in Schedule 5(g), there are no outstanding options, warrants,
        script rights to subscribe to, calls or commitments of any character whatsoever
        relating to, or securities, rights or obligations convertible into or
        exchangeable for, or giving any third party any right to subscribe for
        or acquire, any Common Shares, or contracts, commitments, understandings
        or arrangements by which the Company or any Subsidiary is or may become
        bound to issue additional Common Shares or Common Share Equivalents. Except
        as set forth in Schedule 5(g), the issue and sale of the Offered Securities
        will not obligate the Company to issue Common Shares or other securities
        to any third party (other than the Subscribers) and will not result in
        a right of any holder of Company securities to adjust the exercise, conversion,
        exchange or reset price under such securities. All of the outstanding
        shares of the Company are validly issued, fully paid and nonassessable,
        have been issued in compliance with all United States federal and state
        and Canadian provincial securities laws, and none of such outstanding
        shares was issued in violation of any preemptive rights or similar rights
        to subscribe for or purchase securities. No further approval or authorization
        of any shareholder, the Board of Directors of the Company or others is
        required for the issuance and sale of the Common Shares, other than the
        Required Approvals. Except as set forth in Schedule 5(g), there are no
        shareholders agreements, voting agreements or other similar agreements
        with respect to the Company’s share capital to which the Company
        is a party or, to the knowledge of the Company, any agreement between
        or among any of the Company’s shareholders relating to the voting
        securities of the Company.

	 	 	 
	 	(h) 	 Continuous Disclosure; SEC Reports; Financial Statements.
        The Company is a “reporting issuer” in British Columbia, Alberta
        and Ontario and has publicly filed all annual information forms, prospectuses,
        material change reports, shareholder

- 8 - 

communications, press releases, and
financial statements and other documents required to be filed by it under the
Applicable Securities Legislation and under the rules and regulations of the
Exchange (the foregoing materials being collectively referred to herein as the
“Canadian Disclosure Documents ”). The Company has filed all reports
required to be filed by it under the 1933 Act and the Securities Exchange Act of
1934 (the “ 1934 Act”), including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as
the Company was required by law to file such material) (the foregoing materials,
including the exhibits thereto and any materials voluntarily filed with the
Securities and Exchange Commission, being collectively referred to herein as the
“SEC Reports”) on a timely basis or has received a valid extension of
such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in
all material respects with the applicable requirements of the 1933 Act and the
1934 Act and the rules and regulations of the Securities and Exchange Commission
promulgated thereunder, the Canadian Disclosure Documents complied in all
material respects with the applicable requirements of Canadian provincial
securities laws and the rules and regulations of the Exchange and none of the
SEC Reports or the Canadian Disclosure Documents, when filed, contained any
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading. The
financial statements of the Company included in the SEC Reports and Canadian
Disclosure Documents comply in all material respects with applicable accounting
requirements and the rules and regulations of the Securities and Exchange
Commission with respect thereto as in effect at the time of filing and the
financial statements included in the Canadian Disclosure Documents complied in
all material respects with the applicable accounting requirements and rules and
regulations of Canadian provincial securities laws. Such financial statements
have been prepared in accordance with Canadian generally accepted accounting
principles applied on a consistent basis during the periods involved
(“GAAP”), except as may be otherwise specified in such financial
statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all
material respects the financial position of the Company and its consolidated
subsidiaries as of and for the dates thereof and the results of operations and
cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments. 

	 	(i) 	 Material Changes. Since the date of the latest
        audited financial statements filed on SEDAR, except as set forth in Schedule
        5(i), (i) there has been no event, occurrence or development that has
        had or that could reasonably be expected to result in a Material Adverse
        Effect, (ii) the Company has not incurred any liabilities (contingent
        or otherwise) other than (A) trade payables and accrued expenses incurred
        in the ordinary course of business consistent with past practice and (B)
        liabilities not required to be reflected in the Company’s financial
        statements pursuant to GAAP or required to be disclosed in filings made
        with the

- 9 - 

Securities Commissions and the
Securities and Exchange Commission, (iii) the Company has not altered its method
of accounting, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its shareholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its share
capital and (v) the Company has not issued any equity securities to any officer,
director or affiliate, except pursuant to an existing Stock Option Plan. The
Company does not have pending before the Securities Commissions or the
Securities and Exchange Commission any request for confidential treatment of
information. 

	 	(j) 	 Litigation. Except as set forth in Schedule 5(j),
        there is no action, suit, inquiry, notice of violation, proceeding or
        investigation pending or, to the knowledge of the Company, threatened
        against or affecting the Company, any Subsidiary or any of their respective
        properties before or by any court, arbitrator, governmental or administrative
        agency or regulatory authority (federal, state, county, local or foreign)
        (collectively, an “Action”) which (i) adversely affects
        or challenges the legality, validity or enforceability of this Agreement
        or the Offered Securities or (ii) could, if there were an unfavorable
        decision, reasonably be expected to have or result in a Material Adverse
        Effect. Neither the Company nor any Subsidiary, nor any director or officer
        thereof, is the subject of any Action, or has been the subject of any
        material Action, involving a claim of violation of or liability under
        applicable United States securities laws or a claim of breach of fiduciary
        duty. Neither the Company nor any Subsidiary, nor any of the President,
        the Chief Operating Officer or Chief Financial Officer, is the subject
        of any Action, or has been the subject of any material Action, involving
        a claim of violation of or liability under applicable Canadian securities
        laws or a claim of breach of fiduciary duty. There has not been any material
        investigation, and to the knowledge of the Company, there is not pending
        or contemplated any investigation by any of the Securities Commissions
        or the Securities and Exchange Commission, involving the Company or any
        current or former director or officer of the Company. The Securities and
        Exchange Commission has not issued any stop order or other order suspending
        the effectiveness of any registration statement filed by the Comp any
        or any Subsidiary under the 1934 Act or the 1933 Act.

	 	 	 
	 	(k) 	 Labour Relations . No material labour dispute
        exists or, to the knowledge of the Company, is imminent with respect to
        any of the employees of the Company which could reasonably be expected
        to result in a Material Adverse Effect.

	 	 	 
	 	(l) 	 Compliance. Except as set forth in Schedule 5(l),
        neither the Company nor any Subsidiary (i) is in default under or in violation
        of (and no event has occurred that has not been waived that, with notice
        or lapse of time or both, would result in a default by the Company or
        any Subsidiary under), nor has the Company or any Subsidiary received
        notice of a claim that it is in default under or that it is in violation
        of, any indenture, loan or credit agreement or any other agreement or
        instrument to which it is a party or by which it or any of its properties
        is bound (whether or not such default or violation has been waived), (ii)
        is in violation of

- 10 - 

any order of any court, arbitrator or
governmental body, or (iii) is or has been in violation of any statute, rule or
regulation of any governmental authority, including without limitation all
foreign, federal, state and local laws applicable to its business except in each
case as could not have a Material Adverse Effect. 

	 	(m) 	 Regulatory Permits. The Company and the Subsidiaries
        possess all certificates, authorizations and permits issued by the appropriate
        federal, state, local or foreign regulatory authorities necessary to conduct
        their respective businesses as described in the Canadian Disclosure Documents,
        except where the failure to possess such permits could not reasonably
        be expected to have or result in a Material Adverse Effect (“Material
        Permits ”), and neither the Company nor any Subsidiary has received
        any notice of proceedings relating to the revocation or modification of
        any Material Permit.

	 	 	 
	 	(n) 	 Title to Assets. Except as set forth in Schedule
        5(n), the Company and the Subsidiaries have good and marketable title
        in fee simple to all real property owned by them that is material to the
        business of the Company and the Subsidiaries and good and marketable title
        in all personal property owned by them that is material to the business
        of the Company and the Subsidiaries, in each case free and clear of all
        Liens, except for Liens that do not materially affect the value of such
        property and do not materially interfere with the use made and proposed
        to be made of such property by the Company and the Subsidiaries and Liens
        for the payment of federal, state or other taxes, the payment of which
        is neither delinquent nor subject to penalties. Any real property and
        facilities held under lease by the Company and the Subsidiaries are held
        by them under valid, subsisting and enforceable leases of which the Company
        and the Subsidiaries are in material compliance.

	 	 	 
	 	(o) 	 Patents and Trademarks. To the knowledge of the
        Company, the Company and the Subsidiaries have, or have rights to use,
        all patents, patent applications, trademarks, trademark applications,
        service marks, trade names, copyrights, licenses and other similar rights
        necessary or material for use in connection with their respective businesses
        as described in the Canadian Disclosure Documents and which the failure
        to so have could reasonably be expected to have a Material Adverse Effect
        (collectively, the “Intellectual Property Rights ”).
        Neither the Company nor any Subsidiary has received a written notice that
        the Intellectual Property Rights used by the Company or any Subsidiary
        violates or infringes upon the rights of any third party. Except as set
        forth in Schedule 5(o), to the knowledge of the Company, all such Intellectual
        Property Rights are enforceable and there is no existing infringement
        by another third party of any of the Intellectual Property Rights of others.

	 	 	 
	 	(p) 	 Insurance. The Company and the Subsidiaries are
        insured by insurers of recognized financial responsibility against such
        losses and risks and in such amounts as are prudent and customary in the
        businesses in which the Company and the Subsidiaries are currently engaged.
        To the Company’s knowledge, such insurance contracts and policies
        are accurate and complete. The Company has no

- 11 - 

reason to believe that the Company or
any Subsidiary will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business without a significant increase in
cost, except for significant increases in cost that are generally applicable to
the insurance industry, and the size, stage or state of the Company’s business.

	 	(q) 	 Transactions With Affiliates and Employees. None
        of the executive officers or directors of the Company and, to the knowledge
        of the Company, none of the employees of the Company is presently a party
        to any transaction with the Company or any Subsidiary (other than for
        services as employees, officers and directors), including any contract,
        agreement or other arrangement providing for the furnishing of services
        to or by, providing for rental of real or personal property to or from,
        or otherwise requiring payments to or from any executive officer, director
        or such employee or, to the knowledge of the Company, any entity in which
        any executive officer, director, or any such employee has a substantial
        interest or is an executive officer, director, trustee or partner, in
        each case in excess of US$60,000 other than (i) for payment of salary
        or consulting fees for services rendered, (ii) reimbursement for expenses
        incurred on behalf of the Company and (iii) for other employee benefits,
        including stock option agreements under a Stock Option Plan.

	 	 	 
	 	(r) 	 Sarbanes-Oxley; Internal Accounting Controls .
        Except as set forth in Schedule 5(r), the Company is in material compliance
        with all provisions of the Sarbanes- Oxley Act of 2002 which are applicable
        to it as of the Closing Date. The Company maintains a system of internal
        accounting controls sufficient to provide reasonable assurance that (i)
        transactions are executed in accordance with management’s general
        or specific authorizations, (ii) transactions are recorded as necessary
        to permit preparation of consolidated financial statements in conformity
        with GAAP and to maintain asset accountability, (iii) access to assets
        is permitted only in accordance with management’s general or specific
        authorization, and (iv) the recorded accountability for assets is compared
        with the existing assets at reasonable intervals and appropriate action
        is taken with respect to any differences. The Company has established
        disclosure controls and procedures (as defined in the 1934 Act Rules 13a-15(e)
        and 15d-15(e)) for the Company and such disclosure controls and procedures
        are designed to ensure that material information relating to the Company
        required to be disclosed by the Company in the reports that it files or
        submits under the 1934 Act is made known to the certifying officers by
        others within those entities, particularly during the period in which
        the Company’s most recently filed periodic report under the 1934
        Act, as the case may be, is being prepared. The Company’s certifying
        officers have evaluated the effectiveness of the Company’s disclosure
        controls and procedures as of the end of the period covered by the most
        recently filed periodic report under the 1934 Act (such date, the “Evaluation
        Date ”). The Company presented in its most recently filed periodic
        report under the 1934 Act the conclusions of the certifying officers about
        the effectiveness of the disclosure controls and procedures based on their
        evaluations as of the Evaluation Date. Since the

- 12 - 

Evaluation Date, there have been no
significant changes in the Company’s disclosure controls or, to the Company’s
knowledge, in other factors that could significantly affect the Company’s
disclosure controls. 

	 	(s) 	 Certain Fees. Except for the fees and other compensation
        payable to the Agent, the fees and other compensation payable to Delafield
        Hambrecht, Inc. (“Delafield”) for certain sales of Units
        pursuant to the letter agreement between Delafield and the Company dated
        March 15, 2006, and the fees payable to finders in connection with the
        concurrent non-brokered offering, no additional brokerage or finder’s
        fees or commissions are or will be payable by the Company to any broker,
        financial advisor or consultant, finder, placement agent, investment banker,
        bank or other third party with respect to the transactions contemplated
        by this Agreement, and the Company has not taken any action that would
        cause any Subscriber to be liable for any such fees or commissions.

	 	 	 
	 	(t) 	 Private Placement. Assuming (i) the accuracy
        of the Subscribers’ representations and warranties, and the Subscribers’
        compliance with their covenants and agreements, set forth in the Subscription
        Agreement, (ii) the accuracy of the Agent’s representations and warranties,
        and the Agent’s compliance with its covenants and agreements, set
        forth herein, and (iii) the accuracy of the representations and warranties
        to be made by the Subscribers or their permitted assigns in connection
        with exercises of the Warrants, no registration under the 1933 Act is
        required for the offer and sale of the Offered Securities by the Company
        to the Subscribers as contemplated hereby. The issuance and sale of the
        Offered Securities hereunder does not contravene the rules and regulations
        of the Exchange.

	 	 	 
	 	(u) 	 Investment Company. The Company is not, and is
        no t an affiliate of, and immediately after receipt of payment for the
        Common Shares, will not be or be an affiliate of, an entity that is registered
        or is required to be registered as an “investment company” within
        the meaning of the Investment Company Act of 1940. The Company
        shall conduct its business in a manner so that it will not become subject
        to the Investment Company Act of 1940.

	 	 	 
	 	(v) 	 Registration Rights. No third party has any right
        to cause the Company to effect the registration under the 1933 Act of
        any securities of the Company.

	 	 	 
	 	(w) 	 Listing and Maintenance Requirements. The Common
        Shares are registered pursuant to Section 12(g) of the 1934 Act, and the
        Company has taken no action designed to, or which to its knowledge is
        reasonably likely to have the effect of, terminating the registration
        of the Common Shares under the 1934 Act nor has the Company received any
        notification that the Securities and Exchange Commission is contemplating
        terminating such registration. The Company has not, in the 12 months preceding
        the date hereof, received notice from the Exchange on which the Common
        Shares are or have been listed or quoted to the effect that the Company
        is not in compliance with the listing or maintenance requirements of the
        Exchange. The Company is in compliance with all such listing and maintenance

- 13 - 

requirements, and the Company has taken
no action which, to its knowledge reasonably could be expected to result in the
Company’s non-compliance with such listing and maintenance requirements. No
order ceasing or suspending trading in the securities of the Company nor
prohibiting sale of such securities has been issued to the Company or its
directors, officers or promoters or to any companies that have common directors,
officers or promoters and, to the knowledge of the Company, no investigations or
proceedings for such purposes are pending or threatened. 

	 	(x) 	 Application of Takeover Protections . The Company
        and its board of directors have taken all necessary action, if any, in
        order to render inapplicable any control share acquisition, business combination,
        poison pill (including any distribution under a rights agreement) or other
        similar anti-takeover provision under the Company’s articles of incorporation,
        bylaws or other organizational or charter documents or the laws of its
        state of incorporation that is or could become applicable to the Subscribers
        as a result of the Subscribers and the Company fulfilling their obligations
        or exercising their rights under this Agreement, including without limitation
        the Company’s issuance of the Offered Securities and the Subscribers’
        ownership of the Offered Securities.

	 	 	 
	 	(y) 	 Disclosure. The disclosures provided herein regarding
        the Company, its business and the transactions contemplated hereby, in
        this Agreement, including the Disclosure Schedules to this Agreement,
        are true and correct in all material respects and do not contain any untrue
        statement of a material fact or omit to state any material fact necessary
        in order to make the statements made therein, in light of the circumstances
        under which they were made, not misleading; provided, however, that the
        Company has disclosed to the Agent the existence of discussions relating
        to the matters disclosed on Schedule 5(y), and the Company makes no representation
        or warranty to the Subscribers as to the occurrence or non-occurrence
        of the events described therein.

	 	 	 
	 	(z) 	 No Integrated Offering. Assuming the accuracy
        of the Subscribers’ representations and warranties set forth in the
        Subscription Agreement, neither the Company, nor any of its affiliates,
        nor any third party acting on its or their behalf has, directly or indirectly,
        made any offers or sales of any security or solicited any offers to buy
        any security, under circumstances that would cause this offering of the
        Offered Securities to be integrated with prior offerings by the Company
        for purposes of the 1933 Act or any applicable shareholder approval provisions,
        including, without limitation, under the rules and regulations of the
        Exchange on which any of the securities of the Company are listed or designated,
        in a manner that would require the registration under the 1933 Act of
        the sale of the Offered Securities to the Subscribers or that would require
        shareholder approval of the sale of the Offered Securities to the Subscribers.

	 	 	 
	 	(aa) 	 Solvency. Based on the financial condition of
        the Company as of the Closing Date after giving effect to the receipt
        by the Company of the proceeds from the sale of the Offered Securities
        hereunder, (i) the Company’s fair saleable value of

- 14 - 

its assets exceeds the amount that will
be required to be paid on or in respect of the Company’s existing debts and
other liabilities (including known contingent liabilities) as they mature; (ii)
the Company’s assets do not constitute unreasonably small capital to carry on
its business for the current fiscal year as now conducted and as proposed to be
conducted including its capital needs taking into account the particular capital
requirements of the business conducted by the Company, and projected capital
requirements and capital availability thereof; and (iii) the current cash flow
of the Company, together with the proceeds the Company would receive, were it to
liquidate all of its assets, after taking into account all anticipated uses of
the cash, would be sufficient to pay all amounts on or in respect of its debt
when such amounts are required to be paid. The Company does not intend to incur
debts beyond its ability to pay such debts as they mature (taking into account
the timing and amounts of cash to be payable on or in respect of its debt). The
Company has no knowledge of any facts or circumstances which lead it to believe
that it will file for reorganization or liquidation under the bankruptcy or
reorganization laws of any jurisdiction within one year from the Closing Date.
The Canadian Disclosure Documents set forth as of the dates thereof all
outstanding secured and unsecured Indebtedness of the Company or any Subsidiary,
or for which the Company or any Subsidiary has commitments. For the purposes of
this Agreement, “Indebtedness” shall mean (a) any liabilities for
borrowed money or amounts owed in excess of US$100,000 (other than trade
accounts payable incurred in the ordinary course of business and liabilities not
required to be reflected in the Company's consolidated financial statements
pursuant to GAAP or required to be described in filings made with the Securities
Commissions or the Securities and Exchange Commission), (b) all guaranties,
endorsements and other contingent obligations in respect of Indebtedness of
others, whether or not the same are or should be reflected in the Company’s
balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business; and (c) the present value of any lease payments in
excess of US$100,000 due under leases required to be capitalized in accordance
with GAAP. Neither the Company nor any Subsidiary is in material default with
respect to any Indebtedness. 

	 	(bb) 	 Taxes. Except for matters that would not, individually
        or in the aggregate, reasonably be expected to have or result in a Material
        Adverse Effect, the Company and its Subsidiaries have filed all federal,
        provincial, local and foreign tax returns which are required to be filed,
        or have requested and received extensions thereof, and have paid or accrued
        all taxes required to be paid by them and any other assessment, fine or
        penalty levied against them, to the extent that any of the foregoing is
        due and payable, and the Company has no knowledge of a tax deficiency
        which has been asserted or threatened against the Company or any Subsidiary.

	 	 	 
	 	(cc) 	 General Solicitation. Neither the Company nor
        any person acting on behalf of the Company has offered or sold any of
        the Offered Securities by any form of general solicitation or general
        advertising. The Company has offered the Offered

- 15 - 

Securities for sale only to the
Subscriber and certain other Subscribers who meet the criteria for the
registration and prospectus exemptions set out herein and who have completed and
delivered executed copies of the documents required under section 7 hereof. 

	 	(dd) 	 Foreign Corrupt Practices. Neither the Company,
        nor to the knowledge of the Company, any agent or other person acting
        on behalf of the Company, has (i) directly or indirectly, used any corrupt
        funds for unlawful contributions, gifts, entertainment or other unlawful
        expenses related to foreign or domestic political activity, (ii) made
        any unlawful payment to foreign or domestic government officials or employees
        or to any foreign or domestic political parties or campaigns from corporate
        funds, (iii) failed to disclose fully any contribution made by the Company
        (or made by any person acting on its behalf of which the Company is aware)
        which is in violation of law, or (iv) violated in any material respect
        any provision of the Foreign Corrupt Practices Act of 1977, as amended.

	 	 	 
	 	(ee) 	 Accountants. The Company’s accountants are
        set forth on Schedule 5(ee) of the Disclosure Schedule. To the Company’s
        knowledge, such accountants, who the Company expects will express their
        opinion with respect to the financial statements to be included in the
        Company’s Annual Report on Form 20-F for the year ended December
        31, 2005, are a registered public accounting firm as required by the 1933
        Act.

	 	 	 
	 	(ff) 	 Acknowledgment Regarding Subscribers’ Purchase
        of Common Shares. The Company acknowledges and agrees that each of
        the Subscribers is acting solely in the capacity of an arm’s length
        Subscriber with respect to this Agreement and the transactions contemplated
        hereby. The Company further acknowledges that no Subscriber is acting
        as a financial advisor or fiduciary of the Company (or in any similar
        capacity) with respect to this Agreement and the transactions contemplated
        hereby and any advice given by any Subscriber or any of their respective
        representatives or agents in connection with this Agreement and the transactions
        contemplated hereby is merely incidental to the Subscribers’ purchase
        of the Common Shares. The Company further represents to each Subscriber
        that the Company’s decision to enter into this Agreement has been
        based solely on the independent evaluation of the transactions contemplated
        hereby by the Company and its representatives.

	 	 	 
	 	(gg) 	 "Foreign Issuer" Status . The Company is a “foreign
        issuer” with no “substantial U.S. market interest” in any
        class of its securities. The terms “foreign issuer” and “substantial
        U.S. market interest” are as defined in Rule 902 under the 1933 Act.

	8. 	
      The Company covenants with the Agent (on the Agent’s own
      behalf and on behalf of the Subscribers) that it will:

	 	 	 
		(a) 	
      during the period prior to completion of the Offering,
      make available the Company’s senior management persons at reasonable times
      and places to meet with potential institutional investors if so requested
      by the Agent;

- 16 - 

	 	(b) 	 during the period prior to completion of the Offering,
        make available to the Agent, the Agent’s counsel and the Agent’s
        other professional advisors all books and records of the Company necessary,
        in the Agent’s opinion, for the Agent to complete a due diligence
        review of the Company and its business and affairs, financial or otherwise,
        and, in furtherance thereof, the Agent, the Agent’s counsel and the
        Agent’s other professional advisors will have the right, acting reasonably
        and upon written request, to meet with the senior management and the auditors
        of the Company and visit, at the Agent’s discretion, the Company’s
        premises;

	 	 	 
	 	(c) 	 unless otherwise required under the Applicable Securities
        Legislation, during the period prior to completion of the Offering, not
        make any press release or public announcement of the Offering without
        the Agent’s prior written approval, such approval not to be unreasonably
        withheld;

	 	 	 
	 	(d) 	 offer, sell, issue and deliver the Offered Securities
        pursuant to exemptions from the prospectus filing, registration or qualification
        requirements of Applicable Securities Legislation and use reasonable best
        efforts to otherwise fulfil all legal requirements required to be fulfilled
        by the Company (including without limitation, compliance with all Applicable
        Securities Legislation) in connection with the Offering;

	 	 	 
	 	(e) 	 not reject any Subscription Agreement completed in accordance
        with the Applicable Securities Legislation unless all Subscription Agreements
        tendered by the Agent relate to more than 6,000,000 Units, or unless the
        Subscriber is or would become, as a result of its subscription, a “control
        person” of the Company, as that term is defined under Applicable
        Securities Legislation;

	 	 	 
	 	(f) 	 during the period prior to the completion of the Offering,
        promptly notify the Agent in writing of any Material Change (actual or
        proposed) in the business, affairs, operations, assets or liabilities
        (contingent or otherwise) or capital of the Company, taken as a whole,
        and promptly, and in any event within any applicable time limitation,
        comply with all filing and other requirements under the Applicable Securities
        Legislation applicable to the Company as a result of any such change,
        and, in addition to the foregoing, the Company will, in good faith, discuss
        with the Agent any change in circumstances (actual or proposed) which
        is of such a nature that there is or ought to be consideration given by
        the Company as to whether notice in writing of such change need be given
        to the Agent pursuant to this Section 8(f);

	 	 	 
	 	(g) 	 prior to the Closing Time, not do any such act or thing
        that would render any representation or warranty of the Company contained
        in this Agreement or any certificates or documents delivered by it pursuant
        to this Agreement untrue or incorrect; and

	 	 	 
	 	(h) 	 prior to the Closing Time, obtain from Bill Radvak,
        Brian Richards, Rob Pilz and the proposed nominees to the board of directors
        of the Company (Messrs. Holler, Patrick, Webb, Bear and Bastiani), lock-up
        agreements in form reasonably

- 17 - 

acceptable to the Agent that will
prohibit the disposition of any equity securities of the Company (including any
hedging, derivative or other monetization transactions) held, directly or
indirectly, by such individuals until the date which is four months and one day
after the Closing Date.

Representations and Warranties of the Agent

	9. 	
      We represent and warrant to the Company as of the date
      hereof and as at the Closing Time as follows:

	 	 	 
		(a) 	
      we hold all necessary licences and permits that are
      required for us to carry on our business;

	 	 	 
		(b) 	
      we are duly registered where required under Applicable
      Securities Legislation in order to act as agent hereunder; and

	 	 	 
		(c) 	
      we have the power and authority to enter into this
      Agreement and perform our obligations hereunder.

Fees and Commissions 

	10. 	
      The fee payable by the Company to us at Closing for our
      services rendered in connection with the issue and sale of the Units shall
      be:

	 	 	 
		(a) 	
      a cash commission in an amount equal to 7% of the gross
      proceeds of the Offering received by the Company from the sale of up to
      6,000,000 Units (the “Cash Commission”); and

	 	 	 
		(b) 	
      subject to regulatory approval, a non-transferable
      Warrant (the “Agent’s Warrant ”) granted by the Company to the
      Agent entitling the Agent to purchase that number of Common Shares equal
      to 7% of the number of Units issued by the Company pursuant to the
      Offering on terms substantially the same as those offered to Delafield
      under the share purchase warrant being issued to Delafield on or about the
      Closing Date, exercisable for a period of 24 months from the Closing Date
      at a price of $0.62 per Common Share. If the Agent’s Warrant cannot be
      granted by the Company for any reason, the Company shall pay the Agent
      other compensation of comparable value to the Agent’s Warrant, such other
      compensation to be agreed upon by the Company and the Agent, acting
      reasonably.

Expenses of the Offering 

	11. 	
      All of our reasonable expenses of or incidental to the
      Offering, including, without limitation, our reasonable “out -of-pocket”
      expenses and the reasonable fees and disbursements of our counsel
      (including all applicable taxes) shall be borne by the Company. The
      expenses of the Agent shall be payable on the Closing Date and payable
      whether or not the Offering is completed.

- 18 - 

Closing 

	12. 	
      Delivery and sale of the Units and payment of the
      aggregate subscription price for the Units will be completed at the
      offices of the Company’s counsel, Axium Law Corporation, in Vancouver at
      the Closing Time or such other place as the Company and the Agent may
      agree. At Closing (and subject to compliance with the terms of the
      Subscription Agreements and this Agreement), you shall deliver to us,
      against payment (by certified cheque, bank draft or other form of
      immediately available funds) of the aggregate purchase price for the
      Units, the following:

	 	 	 
		(a) 	
      certificates duly registered in accordance with each
      Subscriber’s instructions, representing the Units purchased by such
      Subscriber;

	 	 	 
		(b) 	
      payment of our expenses;

	 	 	 
		(c) 	
      delivery to us of a certificate representing the Agent’s
      Warrant duly registered in accordance with our instructions; and

	 	 	 
		(d) 	
      the requisite legal opinion, officers’ certificates,
      closing materials and such other documents as we may reasonably
      request.

	13. 	
      Each Subscriber’s obligation to purchase Units at the
      Closing Time shall be conditional upon the fulfilment at or before the
      Closing Time of the following conditions:

	 	 	 
		(a) 	
      the Closing of the transactions contemplated hereby will
      have taken place by no later than April 15, 2006 or such other date as the
      parties may agree in writing;

	 	 	 
		(b) 	
      all actions required to be taken by or on behalf of the
      Company, including the passing of all requisite resolutions of directors
      of the Company, will have been taken so as to validly create, issue,
      offer, sell, and deliver the Offered Securities issued at the Closing Time
      to the Subscribers thereof;

	 	 	 
		(c) 	
      the representations and warranties of the Company
      contained in this Agreement are true and correct as of the Closing Time
      with the same force and effect as if made at and as of the Closing
      Time;

	 	 	 
		(d) 	
      the Company has duly complied with all the terms,
      covenants and conditions of this Agreement on its part to be complied with
      up to the Closing Time;

	 	 	 
		(e) 	
      no order, ruling or determination having the effect of
      suspending the sale or ceasing the trading in any securities of the
      Company (including the Offered Securities) has been issued by any
      regulatory authority and is continuing in effect and no proceedings for
      that purpose have been instituted or are pending or threatened or, to the
      Company’s knowledge, contemplated by any regulatory
  authority;

- 19 - 

	 	(f) 	
      the Subscription Agreements and the certificates
      representing the Offered Securities shall have been executed and delivered
      by the parties thereto in form and substance satisfactory to the
    Agent;

	 	 	 
	 	(g) 	
      the delivery of an opinion dated the Closing Date of
      Axium Law Corporation, counsel to the Company and officers’ certificates,
      addressed to us, our counsel and the Subscribers, all in form, content and
      scope satisfactory to us, acting reasonably, closing materials and such
      other documents as we may reasonably request;

	 	 	 
	 	(h) 	
      the Offering of Offered Securities at the Closing Time
      will have been accepted by the Exchange subject to the satisfaction of
      each of the conditions of the Exchange within the time required;
  and

	 	 	 
	 	(i) 	
      the transactions contemplated in the engagement letter
      with Delafield, dated March 15, 2006, and the term sheet, dated as of
      March 7, 2006, among the Company, Tony Holler and Todd Patrick, and the
      proposed non-brokered private placement set out in the Company’s press
      release of March 16, 2006, shall close or otherwise be effected
      contemporaneously with the closing of the transactions contemplated
      herein.

Notice 

	14. 	Any notice, direction or other instrument required
      or permitted to be given to any party hereto shall be in writing and shall
      be sufficiently given if delivered personally, or transmitted by facsimile
      tested prior to transmission to such party, as follows: 
	  	  	  	  
	  	(a) 	in the case of the Company, to: 
	  	  	  	  
	  	  	Response Biomedical Corp. 
	  	  	100-8900 Glenlyon Parkway 
	  	  	Burnaby, British Columbia 
	  	  	V5J 5J8 	  
	  	  	  	  
	  	  	Attention: 	Bill Radvak, President and Chief Executive
      Officer 
	  	  	Fax: 	(604) 456-6074 
	  	  	  	  
	  	(b) 	in the case of the Agent to: 
	  	  	  	  
	  	  	Haywood Securities Inc. 
	  	  	Suite 2000 – Commerce Place 
	  	  	400 Burrard Street 
	  	  	Vancouver, BC V6C 3A6 
	  	  	  	  
	  	  	Attention: 	Blake Corbet, Managing Director 
	  	  	Fax: 	(604) 697-7495 

- 20 - 

Any such notice, direction or other
instrument, if delivered personally, shall be deemed to have been given and
received on the day on which it was delivered, provided that if such day is not
a Business Day then the notice, direction or other instrument shall be deemed to
have been given and received on the first Business Day next following such day
and if transmitted by fax, shall be deemed to have been given and received on
the day of its transmission, provided that if such day is not a Business Day or
if it is transmitted or received after the end of normal business hours then the
notice, direction or other instrument shall be deemed to have been given and
received on the first Business Day next following the day of such transmission.
Any party hereto may change its address for service from time to time by notice
given to each of the other parties hereto in accordance with the foregoing
provisions. 

Confidentiality 

	15. 	
      The Agent will keep, and cause each of its
      representatives and agents to keep, strictly confidential and will use
      only for the purpose of performing its obligations hereunder all
      information, whether written or oral, acquired from the Company and the
      Company’s representatives and agents in connection with its work hereunder
      except information for which disclosure was approved by the Company,
      information that was available to the public prior to its engagement or
      that thereafter becomes available to the public other than through a
      breach by the Agent of its obligations or was lawfully in the possession
      of the Agent prior to the engagement and except that the Agent is required
      by law to disclose such information. The Agent will provide the Company
      with prompt notice of such requirements so that the Company may seek an
      appropriate protective order or waive compliance with this
    requirement.

Garnishing Orders 

	16. 	
      If at any time, up to and including the final date of
      payment for the Offered Securities, the Agent receives a garnishing order
      or other form of attachment purporting to attach or garnish all or any
      part of the sale price or exercise price of any of the Offered Securities,
      the Agent will be free to pay the amount purportedly attached or garnished
      into court.

	 	 
	17. 	
      Any payment by the Agent into court contemplated in this
      Agreement will be deemed to have been received by the Company as payment
      by the Agent against the sale price or exercise price of the Offered
      Securities to the extent of the amount paid into court, and the Company
      will be bound to issue and deliver the Offered Securities according to the
      amount so paid by the Agent.

	 	 
	18. 	
      The Agent will not be bound to ascertain the validity of
      any garnishing order or attachment, or whether in fact it attaches any
      monies held by the Agent, and the Agent will be free to act with impunity
      in replying to any garnishing order or attachment.

	 	 
	19. 	
      The Company will release, indemnify and save harmless the
      Agent in respect of all damages, costs, expenses or liability arising from
      any acts of the Agent under Sections 16, 17 and
18.

- 21 - 

Indemnification 

	20. 	
      The Company covenants and agrees to protect, hold
      harmless and indemnify us and our affiliates and our respective directors,
      officers, shareholders, employees and agents (collectively, the
      “Indemnified Parties”, or individually, an “Indemnified Party
      ”) against all losses, claims, damages, liabilities, costs or
      expenses, including, without limitation, all amounts paid to investigate,
      defend, settle any actions or satisfy any judgments or awards and all
      reasonable legal fees and expenses (collectively “claims ”) as the
      same are incurred, directly or indirectly, by reason of our engagement
      hereunder including, without limitation, by reason
of:

	 	(a) 	
      any breach of or default under any representation,
      warranty, covenant or agreement of the Company contained herein or in the
      Subscription Agreements; or

	 	 	 
	 	(b) 	
      any misrepresentation or alleged misrepresentation (as
      such term is defined in the securities legislation in the Province of
      British Columbia) made by the Company and contained herein or in the
      Subscription Agreements or otherwise made by the Company in connection
      with the sale by the Company of the Offered Secur ities; or

	 	 	 
	 	(c) 	
      any information or statement (except any information or
      statement relating solely to the Agent or its affiliates) contained in any
      document or certificate of the Company delivered under this Agreement or
      pursuant to this Agreement which at the time and in the light of the
      circumstances under which it was made contains or is alleged to contain a
      misrepresentation; or

	 	 	 
	 	(d) 	
      any omission or alleged omission in any document or
      certificate of the Company delivered under this Agreement or pursuant to
      this Agreement of any fact (except facts relating solely to the Agent or
      its affiliates), whether material or not, required to be stated in such
      document or necessary to make any statement in such document not
      misleading in light of the circumstances under which it was made;
  or

	 	 	 
	 	(e) 	
      any order made or enquiry, investigation or proceedings
      commenced or threatened by any securities commission or other competent
      authority based upon any untrue statement or omission or alleged untrue
      statement or alleged omission or any misrepresentation or alleged
      misrepresentation made by the Company (except a statement or omission or
      alleged statement or omission relating solely to any Agent) based upon any
      failure to comply with Applicable Securities Legislation (other than any
      failure or alleged failure to comply by the Agent or its affiliates),
      preventing or restricting the trading in or the sale or distribution of
      the Offered Securities; or

	 	 	 
	 	(f) 	
      the Company’s non-compliance or alleged non-compliance
      with any applicable laws in connection with the issuance, offering and
      sale of the Offered Securities

- 22 - 

including the Company’s non-compliance
with any statutory requirement to make any document available for inspection.

	21. 	
      If any matter or thing contemplated by the foregoing
      shall be asserted against any Indemnified Party, the Indemnified Party
      shall promptly notify the Company of the nature of such claim (provided
      that any failure to so notify in respect of any potential claim shall not,
      subject to the following, affect the liability of the Company under this
      Agreement and provided further that any failure to so notify in respect of
      any actual claim shall affect the liability of the Company under this
      Agreement only to the extent that the Company is materially prejudiced by
      such failure) and the Company shall be entitled (but not required) to
      assume the defence of any suit brought to enforce such claim, provided,
      however, that the defence shall be through legal counsel acceptable to the
      Indemnified Party acting reasonably. You shall not have the right to
      settle any such suit without our consent which consent may not be
      unreasonably withheld.

	 	 
	22. 	
      In any such claim, the Indemnified Party shall have the
      right to retain other counsel to act on his or its behalf provided the
      reasonable fees and disbursements of such other counsel shall be paid by
      the Indemnified Party unless (a) the Indemnified Party and the Company
      shall have mutually agreed to the retention of the other counsel; (b) the
      named parties to any such claim (including any added, third or impleaded
      parties) include both the Company and the Indemnified Party and the
      representation of both parties by the same counsel would be inappropriate
      (in the written opinion of the Indemnified Party’s counsel) having regard
      to a conflict of interest between the parties; or (c) the Company elects
      not to participate in or assume the defence of any such claim. If the
      Indemnified Party retains its own counsel, it cannot settle any such suit
      without the prior written consent of the Company which consent may not be
      unreasonably withheld.

	23. 	(a) 	In order to provide for just and equitable contribution
      in circumstances in which the indemnity provided in this Agreement is due
      in accordance with its terms but, is, for any reason, held to be unavailable
      to or unenforceable by us or other persons to be indemnified, or enforceable
      otherwise than in accordance with its terms, we and the Company shall contribute
      to the aggregate of all claims suffered or incurred by the Indemnified Parties
      (or, if such indemnity is unavailable only in respect of a portion, such
      portion) as follows: 
	  	  	 	 
			(i) 	in such proportion as is appropriate to reflect the relative
      benefits received by the Company on the one hand and the Indemnified Parties
      on the other hand from the distribution of the Offered Securities; or 
	  	  	 	 
			(ii) 	if the allocation provided by Section 23(a)(i) above is not
      permitted by applicable law, in such proportion as is appropriate to reflect
      the relative fault of the Company on the one hand and the Indemnified Parties
      on the other hand in connection with the statement, misrepresentation, omission,
      order, enquiry, investigation, proceeding or other matter or thing referred
      to in Section 20 which resulted in such claims, as well as any other relevant
      equitable considerations. 

- 23 - 

	 	(b) 	
      For purposes of Section 23(a) the relative benefit
      received by the Company on the one hand and the Indemnified Parties on the
      other hand shall be deemed to be in the same proportion as the total
      proceeds from the Offering (net of the fees payable to the Agent but
      before deducting expenses) to be received by the Company is to the fee (as
      represented by the number of Units issued to the Agent pursuant to this
      Agreement multiplied by the offer price under the Offering) received by
      the Agent. The relative fault of the Company on the one hand and the
      Indemnified Parties on the other hand shall be determined by reference to,
      among other things, whether the statement, misrepresentation, omission,
      order, enquiry, proceeding or other matter or thing referred to in Section
      20 which resulted in such claims relates to information supplied by or
      steps or actions taken or done by or on behalf of the Indemnified Parties
      and the relative intent, knowledge, access to information and opportunity
      to correct or prevent such statement, misrepresentation, omission, order,
      enquiry, proceeding or other matter or thing referred to in Section 20.
      The amount paid or payable by an Indemnified Party as a result of such
      claims referred to above shall be deemed to include any legal or other
      expenses actually and reasonably incurred by such Indemnified Party in
      connection with investigating or defending any such claim, whether or not
      resulting in any action or action, suit, proceeding or
  claim.

	24. 	
      Subject to Section 25, in the event that the Company may
      be held to be entitled to contribution from the Indemnified Parties, the
      Company shall be limited to contribution of the Cash Commission to the
      portion of the full amount of the loss or liability giving rise to such
      contribution for which we are responsible, provided recourse hereunder
      shall be limited solely to the Cash Commission.

	 	 
	25. 	
      With respect to the provisions of Sections 20 to 24,
      inclusive, the Agent acknowledges and agrees that the Company will not be
      responsible for any losses, claims, damages, liabilities or expenses to
      the extent they arise from actions brought as a result of the Agent’s
      fraud, fraudulent misrepresentation or bad faith.

	 	 
	26. 	
      With respect to the provisions of Sections 20 to 25,
      inclusive, hereof, the Company acknowledges and agrees that we are
      contracting on our own behalf and in trust for and as agents for our
      affiliates and our respective directors, officers, shareholders, employees
      and agents.

Assignment of Selling Group Participation

	27. 	
      The Agent will neither assign this Agreement nor any of
      its rights under this Agreement or, with respect to the Offered
      Securities, enter into any agreement in the nature of an option or a
      sub-option unless and until, for each intended transaction, the Agent has
      obtained the consent of the Company.

	 	 
	28. 	
      The Agent may offer selling group participation in the
      normal course of the brokerage business to selling groups of other
      licensed dealers, brokers and investment dealers, who may or who may not
      be offered part of the Cash Commission or Agent’s Warrant to be received
      by the Agent pursuant to this Agreement.

- 24 - 

Right of First Refusal 

	29. 	
      The Company hereby grants to the Agent a right (the
      “Right of First Refusal”) to act as lead underwriter or agent in
      all Canadian brokered equity or equity-equivalent offerings, public or
      private, by the Company or its subsidiaries for a period of 6 months
      following the Closing Date (including any offerings relating to agency or
      underwriting agreements entered into during such 6 month period). The
      Right of First Refusal shall be exercisable during a period of 10 Business
      Days after receipt by the Agent from the Company of a notice outlining the
      proposed terms of a transaction. If the Agent fails to accept the
      Company’s offer within such 10 Business Day period, the Company shall then
      be free to arrange financing from another source on the terms and
      conditions set out in the offer. The terms and conditions of any future
      offering will be negotiated in good faith by the Company and the Agent and
      shall be in accordance with North American industry standards for
      transactions of a similar nature. If the Agent accepts the Company’s offer
      within such 10 Business Day period but is unable to complete such
      financing within 90 days of the execution of an underwriting or agency
      agreement, as the case may be, the Company shall then be free to arrange
      financing from another source on the terms and conditions set out in the
      offer. In the event that the Company proposes to accept financing from
      another source on terms less favourable to the Company than as proposed to
      the Agent, then the Company must again comply with the provisions of this
      Section 29 and so on from time to time.

Termination 

	30. 	
      The Agent may terminate its obligations hereunder, by
      written notice to the Company, in the event that after the date hereof and
      at or prior to the Closing Date:

	 	 	 
		(a) 	
      any order to cease or suspend trading in any securities
      of the Company, or prohibiting or restricting the distribution of the
      Offered Securities is made, or any proceeding is announced or commenced
      for the making of any such order, by a securities regulatory authority in
      any of the Provinces, or by any other competent authority, and has not
      been rescinded, revoked or withdrawn;

	 	 	 
		(b) 	
      any inquiry, action, suit, investigation (whether formal
      or informal) or other proceeding, in relation to the Company or any of its
      directors or senior officers is announced, commenced or threatened or any
      order is issued by a securities regulatory authority or any other
      regulatory or government authority of any jurisdiction which, in the
      reasonable opinion of the Agent, operates to prevent or restrict the
      trading or distribution of the Offered Securities or materially adversely
      affects or could reasonably be expected to materially adversely affect,
      the value or market price of the Offered Securities or the investment
      quality or marketability of the Offered Securities;

	 	 	 
		(c) 	
      the state of the financial markets or of the industry or
      markets in which the Company operates is or becomes such that the Units
      cannot, in the sole opinion of the Agent, be successfully or profitably
      marketed;

- 25 - 

	 	(d) 	
      there shall have occurred any adverse Material Change
      (whether actual, proposed or prospective) in the capital, business,
      operations, condition (financial or otherwise) or prospects of the Company
      or any of its assets, liabilities or obligations (absolute, accrued,
      contingent or otherwise, taken as a whole) or the Agent becomes aware of
      any material undisclosed information relating to the Company;

	 	 	 
	 	(e) 	
      there has developed, occurred or come into effect or
      existence any event, action state, condition or financial occurrence, or
      any catastrophe, of national or international consequence, any law or
      regulation or act of terrorism, or any other occurrence of any nature
      whatsoever which, in the sole opinion of the Agent, seriously affects or
      may seriously affect the financial markets, the Company’s business,
      operations, or affairs, the distribution of the Offered Securities or the
      market price or value of the Offered Securities;

	 	 	 
	 	(f) 	
      the Company shall be in breach of, default under or
      non-compliance with any representation, warranty, covenant, term or
      condition of this Agreement or any Subscription Agreement; or

	 	 	 
	 	(g) 	
      the Agent is not satisfied in its sole discretion with
      the results of its due diligence review and investigation of the
      Company.

Notwithstanding the termination of any obligations hereunder,
or any termination of this Agreement, the obligations of the Company under
section 11, sections 20 to 26 inclusive and section 29 shall survive such
termination. 

General 

	31. 	
      All terms and conditions of this Agreeme nt shall be
      construed as conditions, and any material breach or failure by any party
      to comply with any of such conditions shall entitle the non-defaulting
      party to terminate this Agreement by notice to that effect given to the
      defaulting party at or prior to the Closing Time, unless otherwise
      expressly provided herein. Any party may waive, in whole or in part, or
      extend the time for compliance with, any of such terms and conditions
      without prejudice to its rights in respect of any other of such terms and
      conditions or any other or subsequent breach or non-compliance.

	 	 
	32. 	
      After the Closing, the Agent shall have the right,
      subject always to Section 4 of this Agreement, at its own expense, to
      place such advertisement or advertisements relating to the Offering as the
      Agent may consider desirable or appropriate and as may be permitted by
      applicable law. The Company and the Agent each agree that they will not
      make or publish any advertisement in any media whatsoever relating to, or
      otherwise publicise, the Offering so as to result in any exemption from
      the prospectus and registration requirements of Applicable Securities
      Legislation being unavailable in respect of the sale of the Offered
      Securities to prospective subscribers.

	 	 
	33. 	
      Time shall be of the essence of the agreement arising
      from this offer and its acceptance by the Company and such agreement shall
      be governed and construed in accordance with the laws of the Province of
      British Columbia and the laws of Canada applicable
  therein.

- 26 - 

	34. 	
      All warranties, representations, covenants and agreements
      herein contained or contained in documents submitted or required to be
      submitted pursuant to this Agreement shall survive the Closing and shall
      continue in full force and effect regardless of any investigation which
      may be carried on by the Subscribers or us or on their or our
      behalf.

	 	 
	35. 	
      This Agreement may be executed in any number of
      counterparts and may be executed by facsimile, all of which when taken
      together shall be deemed to be one and the same document.

	 	 
	36. 	
      If any provision of this Agreement, or the application of
      such provision to any person or circumstance, shall be held invalid or
      unenforceable, the remainder of this Agreement, or the application of such
      provision to persons or circumstances other than those as to which it is
      held invalid or unenforceable, shall not be affected thereby.

	 	 
	37. 	
      All dollar amounts herein are in Canadian dollars unless
      otherwise indicated.

	 	 
	38. 	
      This Agreement may be executed by exchange by facsimile
      transmission of the respective signatures of the parties.

	 	 
	39. 	
      The provisions herein contained constitute the entire
      agreement between the parties hereto in respect of the Offering and
      supersede all previous communications, representations, warranties,
      understandings and agreements between the parties including, without
      limitation, with respect to the subject matter hereof whether verbal or
      written.

If the foregoing is in accordance with your understanding, will
you please confirm you agreement by signing the enclosed duplicate of this
letter at the place indicated, and retur ning the same to us. 

Yours very truly, 

HAYWOOD SECURITIES INC. 

	 	 
	By: 	     "Blake Corbet"               
	 	 Blake Corbet, 
	 	Managing Director 

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK 

- 27 - 

The foregoing is in accordance with our understanding and is
agreed to by us. 

DATED this 30th day of March, 2006. 

	 	RESPONSE BIOMEDICAL CORP. 
	 	 	 
	 	 	 
	 	By:	   "Bill Radvak”           
	 	 	Bill Radvak 
	 	 	President & Chief Executive Officer

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