Document:

RESIN SYSTEMS INTERNATIONAL LTD

RESIN SYSTEMS INTERNATIONAL LTD., RESIN SYSTEMS INC.

("RSG")

AND

EURO-PROJECTS (LTTC) LTD.

("EPL")

JOINT VENTURE AGREEMENT

RESPECTING THE ESTABLISHMENT AND OPERATION OF

A JOINT VENTURE

DATED AS OF AUGUST 30TH, 2003

TABLE OF CONTENTS

Article 1 CONSTITUTION

1.1 Formation of Joint Venture

1.2 Purpose

1.3 Contributions

1.4 Interests in the Joint Venture Assets

1.5 Distribution of Net Profits

1.6 Working Capital Shortfall

1.7 Commencement of Term of Joint Venture

1.8 Authority to Act

1.9 Good Faith

Article 2 INTERPRETATION.

2.1 No Creation of Partnership

2.2 Captions

2.3 Gender..

2.4 Financial Reporting Period

Article 3 TECHNOLOGIES AND PRODUCTS

	3.1

	Proprietary Rights

	3.2

	Patent Filing

	3.3

	Commercialization of Technologies and Sale of Products

Article 4 MANAGEMENT COMMITTEE AND OPCO

4.1 Management Committee 

4.2 Management Committee Meetings 

4.3Reliance on Management Committee Representatives

4.4 Records of Meetings

4.5 Notice of Litigation or Arbitration

4.6 Major Decisions 

4.7 Duties of Management Committee

4.8 Compensation of Management Committee

4.9 Business Plan and Budget

4.10 OpCo

4.11 Dispute Resolution

Article 5 ACCOUNTS AND RECORDS

	5.1

	Bank Accounts

	5.2

	Books of Account

	5.3

	Audit Right 

	5.4

	Final Statement on Termination

Article 6 ENCUMBRANCES

Article 7 ASSIGNMENTS

7.1 Sale of Interest

7.2 Change of Control

7.3 Right of First Refusal

Article 8 TERMINATION

	8.1

	Term 

	8.2

	Right of Buy Out

	8.3

	Termination 

	8.4

	IPR License Upon Dissolution

	8.5

	Partition of Assets on Termination

	8.6

	Distribution of Net Profits and Surplus Amounts 

Article 9 MISCELLANEOUS 

	9.1

	Non-Solicitation 

	9.2

	Non-Competition

	9.3

	Confidentiality

	9.4

	Corporate Existence "Good Standing" Corporate Authority 

	9.5

	Further Assurances

	9.6

	Notices

	9.7

	Time of the Essence 

	9.8

	Enurement 

	9.9

	Governing Law

JOINT VENTURE AGREEMENT

THIS JOINT VENTURE AGREEMENT (the "Agreement") made as of the 30th day of August, 2003.

BETWEEN:

Resin Systems International Ltd., a body corporate, carrying on 

business in Barbados (hereinafter referred to as "RSI")

OF THE FIRST PART

- and -

Resin Systems Inc., a body corporate carrying on business in 

Canada (hereinafter referred to as "Resin Canada")

OF THE SECOND PART

(RSI and Resin Canada collectively referred to as "Resin Systems 

Group" or "RSG")

-and­

Euro-Projects (LTTC) Ltd., a body corporate, carrying on 

business in the United Kingdom (hereinafter referred to as 

("EPL")

OF THE THIRD PART

WHEREAS RSG and EPL (sometimes herein referred to collectively as the "Parties" or 

singularly as a "Party", or, when appropriate, individually as RSI, Resin Canada and EPL) have agreed to contribute certain funds, intellectual property rights and services to jointly carry on a business;

AND WHEREAS all references to dollars shall mean dollars in the legal currency of the

United States of America;

AND WHEREAS the Parties have agreed that the relationship of the Parties, the conduct of 

the business proposed to be carried on pursuant to this Agreement and the allocation of profits arising from such business, shall be governed on the basis of the terms and conditions hereinafter set forth;

NOW THEREFORE THIS AGREEMENT WITNESSETH that the Parties, in consideration of 

the mutual covenants and agreements.

ARTICLE 1

CONSTITUTION

1.1

Formation of Joint Venture

The Parties do agree to embark on a several basis upon a Joint Venture for the limited purpose and scope set forth in this Agreement under the name "RSG/EPL Joint Venture".

1.2

Purpose

The purpose and scope of the Joint Venture shall be the continued development of certain pre-existing and specified technologies as well as certain future technologies either owned by or licensed to EPL, and the commercial exploitation and development of these technologies by the Parties pursuant to the terms and conditions of this Agreement.

1.3

Contributions

(a)

EPL will contribute the following to the Joint Venture:

(i)

subject to receiving appropriate consents and waivers in writing from relevant joint owners and collaboration partners, the technologies listed in Schedule "B" attached hereto and all improvements made thereto (the "Existing Technologies") pursuant to the "Joint Venture Technology License Agreement" attached hereto as Schedule "A", as amended and appended to from time to time (the "IPR License");

(ii)

a right of first refusal to license any new technologies developed by EPL during the term of the Joint Venture on the same terms as the IPR License, or, if such technologies have been developed in conjunction with any third parties, then on the best terms available from all relevant joint owners or collaboration partners of EPL (the "New Technologies") (the Existing Technologies and all licensed New Technologies collectively referred to as the "Technologies");

(iii)

consulting and training services related to the use of the Technologies and application of the Technologies in the manufacture of products based on each Technology (the "Products"), such consulting and training services to be provided at "Cost" (as hereinafter defined); and

(iv)

continuing development services related to the Existing Technologies, such development services to be provided at Cost.

(b)

RSI will contribute the following to the Joint Venture:

(i)

working capital contributions by way of cash advances into the account of the Joint Venture to finance the manufacture of Products for distribution outside of Canada and the United States ("North America") as agreed to in each "Budget" (as hereinafter defined);

(ii)

use of RSG's existing manufacturing and production facilities ("Existing Facilities") for manufacturing Products for distribution outside of North America, as well as all related consulting and development services, at Cost;

(iii)

use of manufacturing facilities purchased and/or built by RSG during the term of the Joint Venture specifically for the benefit of the Joint Venture ("New Facilities"), for manufacturing Products for distribution outside of North America, as well as all related consulting and development services, at Cost;

(c)

Resin Canada will contribute the following to the Joint Venture:

(i)

working capital contributions by way of cash advances into the account of the Joint Venture to finance the manufacture of Products for distribution within North America as agreed to in the Budget;

(ii)

use of Existing Facilities for manufacturing Products for distribution within North America, as well as all related consulting and development services, at Cost; and

(iii)

use of New Facilities for manufacturing Products for distribution within North America, as well as all related consulting and development services, at Cost;

(d)

Provided that the Parties shall at all times use their respective best endeavours to provide competitive rates and be cost efficient and to maximize profits for the mutual benefit of the Parties in the context of the Joint Venture, "Cost" as referred to in this Section 1.3 shall be defined as follows:

(i)

with respect to consulting, training or development services provided by any Party, "Cost" shall be defined as double the total amount of all base salary costs or base consultancy fees (not including bonuses or benefits of any kind), as well as pre-approved international travel expenses, incurred by the providing Party for employees and/or consultants engaged directly and exclusively in providing such services to the Joint Venture;

(ii)

with respect to the use of Existing Facilities and New Facilities, "Cost" shall mean the actual cost, with the benefit of all discounts and volume price breaks, to Resin Canada or RSI, whichever the case may be, for the raw materials and other component parts comprising, or consumed in the course of production of, any Products, as well as all reasonably incurred costs associated with administration, manufacturing, assembling, inspecting, warehousing, packaging and shipping the Products.

1.4

Interests in the Joint Venture Assets

At the time of the formation of the Joint Venture, the Parties shall each hold an interest in the assets and rights of the Joint Venture in the following proportion:

RSG

-

85% interest

EPL

-

15% interest

1.5

Distribution of Net Profits

(a)

The Parties agree that all distributions to the Parties out of the Joint Venture shall be based on "Net Profits" (as hereinafter defined) calculated using Canadian generally accepted accounting principles and distributed to the Parties after all working capital contributions made by RSG are recovered in full, including all reasonable cost of borrowing and interest incurred by the contributing Party. "Net Profits" means the amounts remaining from gross sales of Products based on a particular Technology after deducting all expenses incurred in the manufacture, marketing and sales of such Products.

(b)

After repayment of all working capital contributions, the Parties agree that up to the first two million dollars ($2,000,000) in Net Profits earned by the Joint Venture from the commercial exploitation of each Technology shall be distributed equally between EPL and RSG.  All distributions thereafter for each such Technology shall be based on EPL and RSG's relative interest in the Joint Venture as set forth in Section 1.4 above. RSI and Resin Canada will divide RSG's share of Net Profits according to North American and non-North American revenues with all benefits and costs derived from North American activities going to the account of Resin Canada, and all benefits and costs derived from non-North American activities going to the account of RSI. For certainty, it is the intention of RSI and Resin Canada to govern their respective activities within the Joint Venture to best realize the income tax advantages associated with RSG's global business structure.

(c)

The Parties agree that if, at any time from the date first written above until the tenth anniversary of such date, either Resin Canada or RSI completes a transaction with a third party (which for the avoidance of doubt shall include any group or associated company of Resin Canada or RSI) to sell or otherwise dispose of a New Facility, or other new capital asset acquired by RSG during the term of the Joint Venture for the specific and exclusive use of the Joint Venture, then, after using all reasonable commercial efforts to obtain the best price for the asset(s) being sold, the selling Party agrees to pay EPL a portion of the sale or other disposal price within ninety (90) days of its receipt by the selling Party based on EPL's current interest in the Joint Venture as set out in clause 1.4 of this Agreement (as may be adjusted herein), after RSI or Resin Canada, as the case may be, has recovered all reasonable costs actually incurred and associated with the financing, construction and maintenance of the relevant asset or manufacturing facility, and paid all taxes levied in association with the sale or other disposition.

1.6

Working Capital Shortfall

Any working capital shortfall of the Joint Venture during a financial reporting period shall be covered by working capital contributions made by RSG.

1.7

Commencement of Term of Joint Venture

The term of the Joint Venture shall commence on the date first above written and shall continue thereafter until terminated in accordance with the provisions of Article 8 herein.

1.8

Authority to Act

Unless expressly provided in this Agreement to the contrary, no Party shall have the authority to act for, or to assume any liability, obligation or responsibility on behalf of the other Parties.

1.9

Good Faith

Each Party hereby acknowledges and agrees that it shall carry on business in a professional and businesslike manner, acting always in good faith and in the best interests of the Joint Venture.  Each will do all things, take all steps and provide all assurances as shall reasonably be required to carry out the intent of this Agreement and will cause its directors, officers, employees and agents to do likewise. Notwithstanding the foregoing, nothing in this Agreement is intended to suggest that EPL is in any way or at any time obligated or in any way required to provide any funding, or other financial resource to the Joint Venture or OpCo or to provide sureties or guarantees on or behalf of the Joint Venture or the other Parties to it or to OpCo. None of RSI, Resin Canada or EPL, their directors, officers, employees or agents will act in a manner which prefers that Party's interests over those of the Joint Venture (unless expressly permitted herein) or which is not bona fide and in the best interests of the Joint Venture, unless otherwise required by law. It is understood and agreed that the Parties will expend their reasonable commercial efforts for the good of the Joint Venture.

ARTICLE 2

INTERPRETATION

2.1

No Creation of Partnership

The rights, duties, obligations and liabilities of EPL, RSI and Resin Canada under this Agreement shall be several and not joint or collective.  While for ease of reference, the Agreement refers to RSI and Resin Canada as a single "Party", nothing herein shall be construed as creating a partnership of any kind or as imposing upon RSI, Resin Canada or EPL any partnership duty, obligation or liability.

2.2 

Captions

The captions in this Agreement form no part of this Agreement and shall be deemed to have been inserted for convenience only.

2.3

 Gender

Wherever the singular or masculine or neutral is used throughout this Agreement, the same shall be construed as meaning the plural or the feminine or body corporate where the context of the Agreement so requires.

2.4

Financial Reporting Period

The initial reporting period of the Joint Venture shall commence on the date first written above and end on December 31, 2003, and thereafter the reporting period will be January 1 to December 31.

ARTICLE 3

TECHNOLOGIES AND PRODUCTS

3.1

Proprietary Rights

The Parties acknowledge that, subject to the IPR License, the Technologies to be used in the manufacturing of the Products are and will remain proprietary to EPL (and any joint owners or collaboration partners of EPL as the case may be). The Parties agree to take all reasonable steps to protect such proprietary rights in the Technologies.

3.2

Patent Filing

(a)

The Parties agree that, where relevant, for each of the Existing Technologies, EPL shall be responsible for all activities associated with the preparation and filing of patent applications at either the British Patent Office or the European Patent Office, as well as registering the appropriate additional countries pursuant to the terms of the Patent Cooperation Treaty. The Parties further agree that EPL shall be responsible for all expenses, including all filing, maintenance and professional fees associated with the foregoing activities incurred up to the date of this Agreement, whereafter the Joint Venture shall be responsible for all ongoing expenses associated with patent applications for the Existing Technologies filed in any jurisdiction.

(b)

The Parties agree that the "Management Committee" (as hereinafter defined) in conjunction with any joint owners or collaboration partners of EPL shall be responsible for determining if, when and where patent (or any other intellectual property) protection will be sought for any New Technologies, and that the Joint Venture shall bear all expense associated therewith, unless agreed otherwise.

3.3

Commercialization of Technologies and Sale of Products

(a)

The Parties acknowledge and agree that the Joint Venture, as determined by the Management Committee, has the right to commercially exploit the Technologies pursuant to the IPR License. The Parties further acknowledge and agree that the decision to commercially exploit any particular Technology shall be at the sole discretion of the Management Committee, subject to the loss of exclusivity provision set forth in Section 6.2 of the IPR License.

(b)

Other than with respect to pre-existing commercialization activities already being conducted as of the date first written above, during the term of the Joint Venture, none of the Parties, and in the case of EPL, any entity in which EPL owns more than ten percent (10%) of the outstanding issued shares, shall be permitted to commercially exploit a Technology anywhere in the world other than through or for the account of the Parties pursuant to this Agreement.

(c)

In circumstances where EPL does not own all rights in a Technology, the Parties agree that RSG shall assist EPL in the negotiation of any consents, waivers or royalty provisions with relevant joint owners and/or collaboration partners of EPL. In the event that, after using reasonable commercial efforts to negotiate in good faith such consents, waivers and/or royalty terms, an agreement cannot be reached between EPL and the relevant joint owners and/or collaboration partners with respect to any technology, so that it cannot form part of the Technologies under this Agreement, the Parties agree that no Party shall be able to participate in or otherwise benefit from the commercial exploitation of such technology outside of the Joint Venture on terms more favourable than those offered to the Joint Venture.

ARTICLE 4

MANAGEMENT COMMITTEE AND OPCO

4.1

Management Committee

The over-all management and control of the business and affairs of the Joint Venture shall be vested in a management committee (the "Management Committee") consisting of one representative of EPL, one of RSI and one of Resin Canada, as those persons may be nominated by their respective companies from time to time. EPL, RSI and Resin Canada may appoint a second person as an alternate to act in the absence of each of the designates. The designates and alternates shall continue in such capacity until a resignation in writing has been delivered or until notice in writing of cancellation of his appointment has been received by the other Parties from the Party appointing such designate or alternate, and a replacement has been appointed.

The initial designate of EPL shall be Gerard Boyce; the initial designate of RSI shall be Greg Pendura; the initial designate of Resin Canada shall be Brian Carpenter.

4.2

Management Committee Meetings

The Management Committee shall hold meetings as and when it deems necessary and at such place the Management Committee may agree, for the purpose of reviewing the operations and conduct of the Joint Venture and the making of all decisions as are necessary to carry out the objectives of the Joint Venture as determined by the Management Committee. Meetings may also be called from time to time by any Party upon notice to the other Parties to be convened at such place as the Parties may agree. To be properly constituted, a quorum of all three representatives must be present. The notice shall state the time, place and date of any meeting of the Management Committee at least seven (7) days prior to the date of holding thereof; provided that any Party may waive such notice. Notwithstanding the foregoing, meetings may also be held by telephone or video conference call provided that each designate of a Party on the Management Committee agrees to such proceeding.

4.3

Reliance on Management Committee Representatives

Each Party may rely fully on the action by a designate or alternate of the other or others as being binding upon such other. The designates or alternates are authorized and empowered to determine all matters relating to the conduct of the Joint Venture. The Parties shall, and shall instruct their respective designates that they shall, act diligently and in good faith and attempt to reach agreement with the other members of the Management Committee with the intention and for the purpose of furthering the objectives of the Joint Venture. The Parties shall instruct their respective designate that they shall devote proper time and attention to the business of the Joint Venture unless as otherwise required by law.

4.4

Records of Meetings

Written minutes of all meetings and appropriate decisions of the Management Committee shall be prepared by anyone of the attendees as agreed and delivered to the Parties promptly following the end of each meeting or the making of any decision. Any decision taken by the Management Committee, as recorded in the minutes, shall be effective and binding on the Parties unless within three (3) days of receipt of a copy, a Party or its designate notifies the other Party in writing of an error contained therein.

4.5

Notice of Litigation or Arbitration

In the event that any Party commences or settles on its own account any litigation or arbitration proceedings that may in any way affect the other Parties in the context of the Joint Venture, that Party shall provide notice in writing as to the nature and extent of such litigation or arbitration to the other Parties.

4.6

Major Decisions

No action shall be taken, sum expended, decision made or obligation incurred by the Joint Venture with respect to a matter within the scope of any of the matters enumerated below in this Section 4.6 (hereinafter called "Major Decision") unless such Major Decision has been approved unanimously by the Management Committee, provided that in the event that the Management Committee does not approve a proposed matter, the status quo, as it then existed, shall be maintained in respect of such matter. The Major Decisions shall be:

1.

the adoption of new accounting policies or practice which makes a change to accounting policies or practices agreed between the Parties to the Joint Venture, including how Net Profits are calculated, or the change of the financial reporting period, other than as is required by law or to comply with a new statement of standard accounting practice or generally accepted accounting principles;

2.

the making of any decision whether or not to enter into an agreement for the transfer of any rights (including sublicenses) in the Technologies pursuant to the IPR License in exchange for anything other than fair market value;

3.

the making of any amendment, change or modification to this Agreement,

4.7

Duties of Management Committee

During the term of its appointment, the Management Committee, at the expense of and on behalf of the Parties pursuant to Joint Venture, shall implement or cause to be implemented all Major Decisions and ordinary decisions of the Management Committee, and shall conduct the ordinary and usual business and affairs of the Joint Venture in accordance with and limited by this Agreement. The Parties agree that the Management Committee shall be responsible for executing and/or overseeing all tasks related to the operations of the Joint including, without limitation, the following:

(a)

preparing and implementing the "Business Plan" (as hereinafter defined) and Budgets, including providing estimates on anticipated expenses associated with the commercial exploitation of the Technology under each Budget;

(b)

protecting and preserving the title and interest of the Joint Venture Parties with respect to their interests in the Joint Venture;

(c)

negotiating as directed and having prepared for execution all agreements required for and on behalf of the Joint Venture;

(d)

paying, before delinquency and prior to the addition thereto of interest or penalties, all taxes, assessments, rents and other impositions attributable to activities conducted on behalf of the Joint Venture Parties;

(e)

keeping all books of account and other records required by the Joint Venture;

(f)

preparing and delivering to the Parties monthly reports of the state of the business and affairs of the Joint Venture, which reports shall include at least an operating statement and a narrative report;

(g)

coordinating the services of all labour;

(h)

paying all debts and other obligations associated with the conduct of the Joint Venture, including the costs of operation and maintenance of any manufacturing facilities used by the Joint Venture;

(i)

maintaining all funds of the Joint Venture in a separate account or accounts and in the bank approved by the Management Committee and not commingling any Joint Venture monies with any other monies whatsoever;

(j)

when permitted or required by this Agreement, making distributions periodically to the Parties;

(k)

promptly complying with all present and future laws, ordinances, orders, rules, regulations and requirements of all federal, provincial and municipal governments;

(l)

supervising all matters coming within the terms of this Agreement, and approving bills for payment and in that connection will obtain the necessary receipts, releases, waivers, discharges and assurances to keep the assets of the Joint Venture or Joint Venture Parties free from all claims;

(m)

maintaining, managing and operating the business of the Joint Venture in an efficient manner and at all times maintaining an organization sufficient to enable it to carry out all its duties, obligations and functions; and

(n)

performing any other obligations provided elsewhere in this Agreement to be performed by the Management Committee from time to time.

4.8

Compensation of Management Committee

Unless otherwise agreed, no remuneration, benefits or other expenses, other than expenses pre-approved by the Management Committee and incurred while carrying out duties of the Management Committee, including any reasonable travelling and accommodation costs of members of the Management Committee, shall be paid hereunder by "OpCo" (as hereinafter defined) on behalf of Joint Venture to the Management Committee (in such capacity).

4.9

Business Plan and Budget

(a)

Prior to commencing activities hereunder, the Management Committee shall prepare and agree a written business plan setting out long term goals, strategy, and estimated financial requirements of the Joint Venture (the "Business Plan").

(b)

For each Technology the Management Committee agrees to license and commercially exploit, the Management Committee shall prepare a detailed business plan and budget (hereinafter called the "Budget") setting forth the estimated receipts, working capital requirements, and expenditures (capital, operational and other) of the Joint Venture for the commercialization of the said Technology. The Management Committee shall implement the matters addressed within the Budget and the Business Plan and shall be authorized, without the need for approval by the Parties, to make the expenditures and incur the obligations provided for in the Budget and the Business Plan.

4.10

OpCo

The Parties have agreed to engage a wholly-owned subsidiary of Resin Canada ("OpCo") to conduct the day to day operations of the Joint Venture. The Parties further agree that OpCo's activities shall be subject to the strategic direction and control of the Management Committee and the express provisions of an operating agreement approved by the Parties, a form of which is attached hereto as Schedule "C" (the "Operating Agreement").

4.11

Dispute Resolution

(a)

All disputes in connection with or in the execution of this Agreement shall be settled by the Parties through friendly consultations. Where a dispute arises which the Parties are unable to resolve, or, the Management Committee is unable to reach a unanimous decision on a Major Decision which, notwithstanding Section 4.7, either of the Parties believes in good faith will adversely affect the Joint Venture, the disputing Party shall in writing provide sufficient detail as to describe such dispute and provide notice of such dispute to the other Party. The Parties agree that within ten (10) days of receipt of such notice, a representative of each Party (director level or higher) shall meet and confer, either by phone or in person, in a good faith attempt to resolve such dispute. Should the Parties then be unable to resolve any dispute between them, the dispute shall be settled by arbitration, conducted on a confidential basis, under the Province of Alberta Arbitration Act and the International Chamber of Commerce Rules of Arbitration to be exclusively held in the City of Calgary, Alberta, Canada. Neither Party shall institute an arbitration proceeding hereunder unless at least sixty (60) days prior thereto such Party shall have furnished to the other written notice according to the terms of Section 9.6 herein.

(b)

No provision of this Section 4.11 is intended to prevent a Party from seeking injunctive relief as a remedy, or any action necessary to enforce the award of the arbitrators, in a court of competent jurisdiction.

ARTICLE 5

ACCOUNTS AND RECORDS

5.1

Bank Accounts

A bank account or bank accounts shall be maintained under OpCo's name on behalf of the Joint Venture with such chartered bank as from time to time shall be determined by the Management Committee. All moneys received from time to time on account of the business of the Joint Venture shall be deposited immediately into the bank account of the Joint Venture in the same drafts, cheques, bills or cash in which they are received, and all disbursements on account of the Joint Venture shall be made by cheque on such account. All cheques or drafts on the Joint Venture bank accounts shall require the signature or signatures as determined by the Management Committee from time to time.

5.2

Books of Account

Proper books of account shall be kept on behalf of the Joint Venture by OpCo or an accredited accounting firm selected by the Management Committee and entries shall be made therein of all such matters, terms, transactions and things as are usually written and entered in books of account in accordance with Canadian generally accepted accounting principles. EPL, RSI, and Resin Canada shall each at the cost of the Joint Venture have free access at all times to inspect, examine and make copies thereof and shall at all times furnish to the other correct information, accounts and statements of and concerning all such transactions relating to the business of the Joint Venture without any concealment or suppression.

5.3

Audit Right

At such times as may be reasonably requested in writing by any Party, but in any event at the year end of the Joint Venture, accountants appointed by the Management Committee shall make an audit of the books and accounts in respect of the business of the Joint Venture and for such purposes they shall have access to all books of account, records, vouchers, cheques, papers and documents of, or which may be related to, the Joint Venture, including those of the Parties to the extent to which such books, records, cheques, papers and documents relate to the Joint Venture. The Joint Venture shall cause the said accountants to forthwith furnish copies of all financial statements prepared for or on behalf of or in connection with the Joint Venture to each of RSI, Resin Canada and EPL. All audit costs shall be paid by Joint Venture. In no way is the foregoing intended to suggest that the Joint Venture is responsible for the accounting and record keeping of either EPL, RSI or Resin Canada, who shall each be responsible for maintaining their own books of account.

5.4

Final Statement on Termination

Upon the termination of the Joint Venture for any reason, the accountants of OpCo on behalf of the Parties shall prepare and deliver to each of EPL, RSI and Resin Canada a balance sheet showing the assets and liabilities of the Joint Venture.

ARTICLE 6

ENCUMBRANCES

During the term of this Agreement, the Parties will not in any way or at any time encumber their interest in the Joint Venture property, including the intellectual property rights contained in the IPR License, or the interest of the other Parties, or any part of it.

ARTICLE 7

ASSIGNMENTS

7.1

Sale of Interest

No Party may withdraw from the Joint Venture during the term of this Agreement or assign or transfer its interest in this Agreement (other than as provided for in this Agreement) without the prior written consent of the other Parties.

7.2

Change of Control

Any Party may assign its right in the event of a change of control of the assigning Party, by giving the other Party at least ninety (90) days notices prior to the proposed assignment.

7.3

Right of First Refusal

EPL hereby grants RSG a right of first refusal to acquire all or substantially all of the assets of EPL or a controlling interest in the outstanding issued share capital of EPL on terms at least as favourable as those contained in any bona fide third party offer to acquire same.

ARTICLE 8

TERMINATION

8.1

Term

The term of the Joint Venture, this Agreement and the IPR License, shall commence on the date first written above and shall continue until termination pursuant to Section 8.3 herein.

8.2

Right of Buy Out

(a)

On either the fifth, sixth or seventh anniversary of the date first written above, at EPL's sole discretion and after providing RSG with at least ninety (90) days written notice of its intention to do so, EPL shall be entitled to cause RSG to purchase, and RSG shall have the obligation to so purchase, up to one-half of EPL's interest in the Joint Venture as set forth in Section 1.4 herein.

(b)

On or after the tenth anniversary of the date first written above, at EPL's sole discretion and after providing RSG with at least 90 days written notice of its intention to do so, EPL shall be entitled to cause RSG to purchase, and RSG shall have the obligation to purchase, no less than EPL's entire remaining interest in the Joint Venture (as adjusted pursuant to Section 8.2(a) above).

(c)

The agreed purchase price for EPL's interest pursuant to (a) and (b) above shall be calculated by:

(i)

taking the sum of the Net Profits earned by the Joint Venture over the three years immediately preceding the sale of EPL's interest and dividing that amount by three (3) (the "Average Net Profits" or "ANP");

(ii)

multiplying the ANP by 4.25;

(iii)

multiplying the resulting figure by the interest being sold by EPL, represented as a fraction over 100 (x/100).

E.G.

If EPL elected to sell one-half of its interest on the fifth anniversary of the date first written above, the calculation of the purchase price would be as follows:

ANP(1) X 4.25 X 7.5(2)

100

(1) 1 year average based on the sum of Net Profits in years 3,4 & 5 divided by 3

(2) representing 1/2 of EPL's interest of 15%

(d)

If EPL elects to exercise its right of buy-out on the fifth anniversary, the purchase price shall be paid by RSG in one lump sum on the closing date of the buy-out. For any right of buy-out exercised by EPL on the sixth, seventh or tenth anniversary, or any date thereafter, RSG shall have the right to pay the purchase price in three (3) equal instalments on the following dates:

(i)

the closing date the buy-out is completed;

(ii)

twelve months after the closing date; and

(iii)

twenty-four months after the closing date.

The second and third instalment shall be evidenced and secured by way of a promissory note between EPL and RSG.

8.3

Termination

The Joint Venture and this Agreement shall terminate:

(a)

forthwith upon the written election of a Party, in the event another Party shall be in breach of a material term of this Agreement including the IPR License and the Operating Agreement, and such breach shall not be rectified within thirty (30) days of notice to the Party in breach, specifying particulars of such breach; or

(b)

upon the sale of EPL's entire interest in the Joint Venture to RSG pursuant to Section 8.2(b) above; or

(c)

the agreement of the Parties at any time that the Joint Venture be terminated.

8.4

IPR License Upon Dissolution

In the event that the Joint Venture is dissolved and this Agreement is terminated pursuant to Section 8.3 other than if terminated by EPL as a result of an unrectified material breach by RSG pursuant to Section 8.3(a), the IPR License to the Technologies granted to RSI hereunder (and all amendments and appendments) shall continue and survive on its terms, less all references to the Joint Venture contained therein which will no longer apply.

8.5

Partition of Assets on Termination

Upon termination of the Joint Venture, other than if acquired by RSG from EPL pursuant to Section 8.2(b) above, and the continuation of the IPR License granted by EPL pursuant to Section 8.4 above, all assets loaned, leased or licensed to the Joint Venture shall be returned to the Party which loaned, leased or licensed them and all remaining assets shall be partitioned and disposed of, after payment of, or due provision for, all liabilities to creditors of the Joint Venture (including liabilities to the Parties pursuant to this Agreement) among and distributed to the Parties to the extent of their respective interest in the Joint Venture.

8.6

Distribution of Net Profits and Surplus Amounts

Upon termination of the Joint Venture pursuant to Section 8.3 above, the Parties shall be entitled to receive and the Parties shall procure that each is paid such moneys as may be due to each, if any, on account of their respective interests in the Joint Venture. Notwithstanding the foregoing, in the event of termination as a result of a breach by a Party pursuant to Section 8.3(a) above, the non-breaching Parties shall be entitled to instruct OpCo (pursuant to the Operating Agreement) to withhold any final distributions or other monies to the breaching Party until such time as the damages caused by the breach have been reasonably determined.

ARTICLE 9

MISCELLANEOUS

9.1

Non-Solicitation

At no time during the term of this Agreement shall any Party to this Agreement, approach or otherwise directly or indirectly solicit away the services of any employee or consultant of another Party without the prior written consent of that Party with whom the employee or consultant is engaged.

9.2

Non-Competition

RSI and Resin Canada agree that, during the term of this Agreement, they will not acquire control of or otherwise be directly or indirectly interested in or concerned with a business which is the same as or similar to that of EPL, namely designing and engineering composite products. Notwithstanding the preceding sentence, nothing in this section shall restrict or otherwise prohibit RSG from pursing business opportunities for the commercialization of technologies not competitive with the Technologies.

9.3

Confidentiality

The Parties hereby agree that, during the term of this Agreement, they will not use, for any purpose, other than for purposes of fulfilling their obligations under this Agreement, any information or confidential data relating to any other party or its assets, prospects, properties or otherwise, discovered or acquired by them or their respective representatives or agents in connection with their duties under this Agreement, and agree that they will not, subject to applicable legal requirements, disclose, divulge or communicate, whether orally or in writing, any such information or a confidential data so discovered or acquired to any other person, firm or corporation except to each Party's respective legal, accounting, tax and financial advisors on a "need to know" basis in connection with their duties under this Agreement; provided that the foregoing shall not apply if such information or data at the time of disclosure, or thereafter becomes, generally available to, or known to the public (other than as a result of a breach of this provision) or was or is available to the recipient on a non-confidential basis from another source. In addition, notwithstanding anything contained herein, Resin Canada shall be at liberty to disclose information received to the TSX Venture Exchange and to other regulators as may be reasonably required so as to facilitate the receipt of all stock exchange and regulatory approvals which may be necessary or desirable, provided that Resin Canada shall provide the other Parties with copies of all information so disclosed.

9.4

Corporate Existence "Good Standing" Corporate Authority

Each of the Parties to this Agreement covenant with, represent and warrant to the other Parties, that it is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it was incorporated. Each Party further represents and warrants that as it has requisite corporate power and authority to enter into this Agreement and all agreements and other documents to be entered into it in connection herewith and to consummate the transactions contemplated hereby. All corporate action on the part of each Party necessary for the authorization, execution, delivery and performance of this Agreement and all other agreements to be entered into in connection herewith by it, have been taken.

9.5

Further Assurances

The Parties shall do such things, by their authorized representatives, attend such meetings and execute such further documents, agreements and assurances as may be deemed necessary or advisable from time to time in order to carry out the terms and conditions of this Agreement in accordance with its true intent and purpose.

9.6

Notices

All notices, requests, demands or other communications by the terms hereof required or permitted to be given by either Party to the other shall be given in writing and be delivered to the Parties as follows:

Euro-Projects (LTTC) Ltd.

 Shaw House

1-3 Fowke St. 

Rothley 

Leicestershire 

England, LE7 7PJ

Telecopy:

0(116) 230 3989

Attention:

Gerard Boyce

Resin Systems International Ltd. 

Principal House

49 Freshwater Bay

St. Michaels, Barbados

Telecopy:

(246) 424-8125

Attention:

Barbara Greenidge

Resin Systems Inc.

 14604 - 115A Avenue 

Edmonton, Alberta 

Canada

T5M 3C4

Telecopy:

(780) 452-8755

Attention:

Brian Carpenter

Notice may also be served by registered mail postage prepaid or by fax transmission. Any notice, request, demand or other communication given by mail as aforesaid and posted anywhere in the United Kingdom, Canada or Barbados shall be deemed to have been received on the sixth business day following the posting thereof or if given by fax transmission, shall be deemed to have been received on the business day following transmission if sent during normal business hours.

Any Party may from time to time by notice to the other Parties change the address to which notices are to be given.

9.7

Time of the Essence

Time shall be of the essence of this Agreement.

9.8

Enurement

This Agreement shall be binding upon, and shall enure to the benefit of the Parties and their respective legal representatives, successors and permitted assigns.

9.9

Governing Law

This Agreement shall be governed by and construed in accordance with the laws

of Canada.

IN WITNESS WHEREOF the Parties have caused this Agreement to be executed by their properly authorized officers as of the day and year first written above.

Euro-Projects (LTTC) Ltd. 

Per: /s/_________________

Per: /s/_________________

Resin Systems International Ltd. 

Per: /s/________________________

Per:

Resin Systems Inc.

Per: /s/___________________

SCHEDULE "A"

JOINT VENTURE TECHNOLOGY LICENSE AGREEMENT

[NTD: ATTACH]

SCHEDULE "B"

LIST OF EXISTING TECHNOLOGIES

1.

Hillbilly Board Technology

2.

Panels Technology (as better described in Schedule 2 Part 1 of the IPR License) 

3.

Technology for Processing Thermo-Plastic Composites (Envirocomp Technology)

SCHEDULE "C"

FORM OF OPERATING AGREEMENTOPERATING AGREEMENT

OPERATING AGREEMENT

AMONG

RESIN SYSTEMS INC.,

RESIN SYSTEMS INTERNATIONAL LTD.,

EURO-PROJECTS (LTTC) LTD.,

(OPERATING AS THE RSG/EPL JOINT VENTURE)

AND

RS TECHNOLOGIES INC

TABLE OF CONTENTS

Article 1  DEFINITIONS.

Article 2  EFFECTIVE DATE AND TERM

  2.1 Term

  2.2 Termination.

  2.3 Final Distributions.

Article 3 DUTIES AND OBLIGATIONS OF OPERATOR

  3.1 Duties 

  3.2 Obligations 

Article 4 EMPLOYEES OF THE OPERATOR

  4.1 Employees of the Operator

  4.2 Contract Awards

Article 5 FEE STRUCTURE

  5.1 Fee Structure 

Article 6 SETTLEMENT OF CLAIMS AND LAWSUITS 

6.1

Settlement of Claims and Lawsuits.

Article 7 LIMITATION ON LIABILITY OF THE OPERATOR

  7.1 Limitation of Liability

  7.2 Indemnity 

Article 8 INSURANCE OBTAINED BY THE OPERATOR.

  8.1 Insurance Obtained by the Operator.

Article 9 REMOVAL OF THE OPERATOR

  9.1 Removal of the Operator

  9.2 Material Breach 

Article 10 BUSINESS PLAN AND BUDGETS

  10.1 Business Plan and Budgets

  10.2 Preparation

  10.3 Cost Estimates

  10.4 Approval and Revisions

Article 11 RELATIONSHIP OF JOINT VENTURE PARTICIPANTS AND TAX

  11.1 Relationship of Joint Venture Participants

  11.2 Income Tax Reporting

Article 12 CONFIDENTIAL INFORMATION

  12.1 Confidential lnformation.

Article 13 FORCE MAJEURE.

  13.1 Obligations

Article 14 NOTICES.

  14.1 Notices

Article 15 DISPUTE RESOLUTION 

  15.1 Consultation and Arbitration

  15.2 Injunctive Relief

Article 16 GENERAL PROVISIONS.

  16.1 Conflicts of Interest

  16.2 Waiver

  16.3 Severance of Invalid Provisions

  16.4 Headings

  16.5 Singular and Plural

  16.7 Counterpart Execution

  16.8  Entirety

  16.9 Governing Law

OPERATING AGREEMENT

THIS AGREEMENT is made as of the Effective Date

AMONG:

Resin Systems International Ltd. a company incorporated in Barbados 

(hereinafter referred to as RSI); Resin Systems Inc. a company incorporated 

in Alberta, Canada) (hereinafter referred to as "Resin Canada"), Euro

Projects (LTTC) Ltd., a company incorporated under the laws of England 

and Wales (hereinafter referred to as "EPL") (the foregoing Parties operating

as the RSG/EPL Joint Venture and hereby collectively referred to hereinafter

as the "Joint Venture Participants")

OF THE FIRST PART

-and-

RS Technologies Inc., a company incorporated in Alberta, Canada, 

(hereinafter referred to as the "Operator")

OF THE SECOND PART

The companies named above may sometimes individually be referred to as the

"Party" and collectively as the "Parties".

WITNESSETH:

WHEREAS, the Joint Venture Participants have entered into a joint venture arrangement (the "Joint Venture") according to the terms of a Joint Venture Agreement dated ___________________, 2003 (hereinafter referred to as the "JVA");

AND WHEREAS the Joint Venture Participants wish to engage the Operator to conduct the day to day operations of the Joint Venture under the strategic direction and control of the Joint Venture Participants, pursuant to the terms of this Agreement;

AND WHEREAS, the Parties desire to define their respective rights and obligations with respect to the operation of the Joint Venture under this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements and obligations set out below and to be performed, the Parties agree as follows:

ARTICLE 1 

DEFINITIONS

As used in this Agreement, capitalized words and terms set forth below or elsewhere in this Agreement, including the recitals, shall have the meaning ascribed to them:

"Affiliate" means a company, partnership or other legal entity which controls, or is controlled by, or which is controlled by an entity which controls, a Party. Control means 

the ownership directly or indirectly a majority of the voting rights in a company, partnership or other legal entity.

  

"Agreement" means this agreement, together with any Exhibits attached to this agreement, 

and any

extension, renewal or amendment hereof agreed to in writing by the Parties.

"Budget" means a work program for Joint Venture Operations and budget therefor as 

described and approved in accordance with Article 10.

"Business Day" means a day on which the banks in Calgary, Alberta are customarily open for 

business.

"Business Plan" means the written business plan setting out long term goals, strategy and 

estimated financial requirements of the Joint Venture.

"Calendar Year" means a period of twelve (12) months commencing with January 1 and ending on 

the following December 31 according to the Gregorian Calendar.

"Day" means a calendar day unless otherwise specifically provided.

"Effective Date" means the date this Agreement comes into effect as stated in Article 2.

"Force Majeure" means unforeseen circumstances beyond the reasonable control of the Parties.

"Government" means the government of any country in which the Joint Venture operates or to 

whom the Joint Venture Participants, either individually or through the Operator, would have any 

reporting obligation.

"Gross Negligence" means any act or failure to act (whether sole, joint or concurrent) by any 

person or entity which was intended to cause, or which was in reckless disregard of or wanton 

indifference to, harmful consequences such person or entity knew, or should have known, such act 

or failure would have on the safety or property of another person or entity.

"IPR License" means the license agreement for the Technologies between EPL, Resin Canada and 

RSI dated ___________, 2003.

"Joint Venture Account" means the accounts including bank and brokerage accounts maintained 

by the Operator solely for the benefit of the Joint Venture Participants for Joint Venture Operations.

"Joint Venture Operations" means those operations and activities carried out by the Operator 

pursuant to this Agreement, the costs and benefits of which are chargeable and attributable to the 

Joint Venture Participants in accordance with the JVA.

"Management Committee" means the committee of designates appointed by the Joint Venture 

Participants and charged with strategic planning for and with executing and overseeing all tasks 

related to the operation of the Joint Venture in accordance with the JVA.

"Material Breach" means any substantial breach of any term of this Agreement taking into 

consideration all relevant circumstances including the nature and financial consequences of the 

breach.

"Participating Interest" means the percentage interest of each Joint Venture Participant in the 

rights and obligations derived from the Joint Venture according to the JVA.

"Technology or Technologies" shall have the meaning ascribed to it in the JVA.

ARTICLE 2 

EFFECTIVE DATE AND TERM

2.1 

Term

This Agreement shall have effect from the ____ day of _____________, 2003 and shall continue in effect until the JVA terminates and all materials, equipment and personal property used in connection with the Joint Venture Operations have been removed and disposed of, and final settlement has been made among the Joint Venture Participants.

2.2

Termination

Articles 2.3, 15 and 16.9 shall remain in effect until all obligations, claims, arbitrations and lawsuits have been settled or otherwise resolved.

2.3

Final Distributions

In the event of termination of the JVA pursuant to Section 8.3(a) therein, the non-breaching Joint Venture Participants shall be entitled to instruct the Operator to withhold any final distributions or other monies payable to the breaching Joint Venture Participants, and the Operator shall obey such instructions until any damages caused by such breach have been determined, quantified and deducted from the breaching Party's final distribution.

ARTICLE 3 

DUTIES AND OBLIGATIONS OF OPERATOR

3.1

 Duties

The Parties agree that the Operator has been engaged to carry out the day to day 

operations of the Joint Venture under the strategic direction and control of the Management 

Committee.  The applicable duties shall include, without limitation, the following:

(a)

participating in the preparation of the Business Plan and providing input to the Management 

Committee in the preparation of each Budget, including providing estimates on anticipated 

expenses associated with the commercial exploitation of the Technology under each Budget;

(b)

carrying out the commercial exploitation of the Technologies according to any manufacturing 

sublicense granted by Resin Canada and/or RSI according to the terms of the IPR Licence, 

the relevant Budget and as otherwise directed by the Management Committee;

(c)

protecting and preserving the title and interest of the Joint Venture Participants with respect 

to their interests in the Joint Venture;

(d)

negotiating as directed by the Management Committee and having prepared for execution all 

agreements required for and on behalf of the Joint Venture;

(e)

paying, before delinquency and prior to the addition thereto of interest or penalties, all taxes, 

assessments, rents and other impositions attributable to activities conducted on behalf of the 

Joint Venture Participants, but excluding any taxes payable in respect to the income of any 

Joint Venture Participant by any Government;

(f)

keeping all books of account and other records required by the Joint Venture Participants 

according to generally accepted accounting principles;

(g)

preparing and delivering to the Joint Venture Participants monthly reports of the state of the 

business and affairs of the Joint Venture delivered within thirty (30) days after the end of each 

month, which reports shall include at least an operating statement and a narrative report;

(h)

coordinating the services of all labour pursuant to Article 4;

(i)

paying all debts and other obligations associated with the conduct of the Joint Venture from the 

Joint Account, including the costs of Joint Venture Operations and maintenance of any

 

manufacturing facilities used by the Joint Venture;

(j)

maintaining all funds of the Joint Venture in the Joint Account opened in a bank approved by 

the Management Committee, and not commingling any Joint Venture monies with any other 

monies whatsoever;

(k)

making distributions periodically from the Joint Account to the Joint Venture Participants in 

accordance with the JVA;

(l)

promptly complying with all present and future laws, ordinances, orders, rules, regulations and 

requirements of all Governments;

(m)

on behalf of the Joint Venture Participants, supervising all matters coming within the terms of 

this Agreement, and approving bills for payment and in that connection obtaining necessary 

receipts, releases, waivers, discharges and assurances to keep the Joint Venture assets free from 

all claims;

(n)

maintaining, managing and operating the business of the Joint Venture in an efficient manner 

and at all times maintaining an organization sufficient to enable it to carry out all its duties, 

obligations and functions; and

(o)

performing any other obligations provided elsewhere in this Agreement or as otherwise 

directed by the Management Committee from time to time.

3.2

Obligations

In the conduct of Joint Venture Operations the Operator shall:

(a)

perform Joint Venture Operations in accordance with the provisions of this Agreement and at 

the direction of the Management Committee where not in conflict with this Agreement;

(b)

conduct all Joint Venture Operations in a diligent, safe and efficient manner in accordance with 

good and prudent manufacturing and distributing practices and principles generally followed by 

similar operating entities engaged for similar purposes;

(c)

acquire all permits, consents and approvals that may be required for or in connection with the 

conduct of Joint Venture Operations;

(d)

upon receipt of reasonable advance notice, permit the representatives of any of the Joint 

Venture Participants to have at all reasonable times and at their own risk and expense 

reasonable access to the Joint Venture Operations with the right to observe all such Joint 

Venture Operations and to conduct financial audits;

(e)

have, in accordance with the prior decisions of the Management Committee, the right and 

obligation to act on behalf of the Joint Venture Participants in all dealings with third parties 

with respect to matters arising under Joint Venture Operations; and

(f)

take all necessary and proper measures for the protection of life, health, the environment and 

property in the case of an emergency; provided, however, that the Operator shall immediately 

notify the Management Committee of the details of such emergency and measures.

ARTICLE 4 

EMPLOYEES OF THE OPERATOR

4.1

Employees of the Operator

Subject to this Agreement and the direction of the Management Committee, the Operator shall determine the number of employees, the selection of such employees, the hours of work and the compensation to be paid all such employees in connection with Joint Venture Operations.

4.2

Contract Awards

The Operator shall award any contract to the best qualified contractor as determined by cost and ability to perform the contract without the obligation to tender and without informing or seeking the approval of the Management Committee, except that before entering into contracts exceeding Five Million U.S. dollars (U.S. $5,000,000), the Operator shall obtain the approval of the Management Committee.

ARTICLE 5 

FEE STRUCTURE

5.1

Fee Structure

The Operator shall be paid a reasonable fee representing the fair market value of the services delivered hereunder. The Parties have agreed that the Operator's fee shall be calculated as the Operator's cost (including all general and administrative cost) of delivering the services, plus 7%.

ARTICLE 6 

SETTLEMENT OF CLAIMS AND LAWSUITS

6.1

Settlement of Claims and Lawsuits

The Operator shall promptly notify the Management Committee of any and all material claims or suits and such other claims and suits as may direct which arise out of Joint Venture Operations or relate in any way to Joint Venture Operations.

Subject to the contrary unanimous decision of the Management Committee, each Joint Venture Participant shall have the right to be represented by its own counsel at its own expense in the settlement, compromise or defense of such claims or suits.

ARTICLE 7 

LIMITATION ON LIABILITY OF THE OPERATOR

7.1

Limitation of Liability

Except as set out in this Article 7.1, NEITHER THE OPERATOR NOR ANY OTHER INDEMNITEE (AS DEFINED BELOW) SHALL BEAR ANY DAMAGE, LOSS, COST, EXPENSE OR LIABILITY RESULTING FROM PERFORMING (OR FAILING TO PERFORM) THE DUTIES AND FUNCTIONS OF THE OPERATOR, AND THE INDEMNTTEES ARE HEREBY RELEASED FROM LIABILITY TO THE JOINT VENTURE PARTICIPANTS FOR ANY AND ALL DAMAGES, LOSSES, COSTS, EXPENSES AND LIABILITIES ARISING OUT OF, INCIDENT TO OR RESULTING FROM SUCH PERFORMANCE OR FAILURE TO PERFORM ITS DUTIES RELATING TO THE JOINT VENTURE OPERATIONS, OTHER THAN IF AS A RESULT OF THE GROSS NEGLIGENCE OF THE INDEMNITTEE.

7.2

Indemnity

THE JOINT VENTURE PARTICIPANTS PARTIES SHALL IN PROPORTION TO THEIR PARTICIPATING INTERESTS DEFEND AND INDEMNIFY OPERATOR AND ITS AFFILIATES, AND THEIR RESPECTIVE OFFICERS AND DIRECTORS (COLLECTIVELY, THE "INDEMNITTEES"), FROM ANY AND ALL DAMAGES, LOSSES, COSTS, EXPENSES (INCLUDING EXPENSES AND REASONABLE LEGAL COSTS) AND LIABILITIES INCIDENT TO CLAIMS, DEMANDS OR CAUSES OF ACTION BROUGHT BY OR ON BEHALF OF ANY PERSON OR ENTITY, WHICH CLAIMS, DEMANDS OR CAUSES OF ACTION ARISE OUT OF, ARE INCIDENT TO OR RESULT FROM JOINT VENTURE OPERATIONS, OTHER THAN IF AS A RESULT OF THE GROSS NEGLIGENCE OF THE INDEMNITTEE

ARTICLE 8 

INSURANCE OBTAINED BY THE OPERATOR

8.1

Insurance Obtained by the Operator

The Operator shall procure and maintain or cause to be procured and maintained for the benefit of the Joint Venture Participants all insurance, including intellectual property infringement insurance, in the types and amounts determined by the Management Committee.  Any such insurance shall be included as an operating expense of the Joint Venture.

ARTICLE 9 

REMOVAL OF THE OPERATOR

9.1

Removal of the Operator

The Operator shall be removed upon receipt of notice from the Management Committee if:

(a)

an order is made by a court or an effective resolution is passed for the reorganization under 

any bankruptcy law, dissolution, liquidation, or winding up of the Operator-,

(b)

the Operator dissolves, liquidates, is wound up, or otherwise terminates its existence;

(c)

the Operator becomes insolvent, bankrupt or makes an assignment for the benefit of 

creditors; or

(d)

a receiver is appointed for a substantial part of the Operator's assets.

9.2

Material Breach

The Operator may be removed by the unanimous decision of the Joint Venture 

Participants if the Operator has committed a Material Breach of this Agreement and has either failed 

to commence to cure that breach within thirty (30) Days of receipt of a notice from Joint Venture 

Participants detailing the alleged breach or failed to diligently pursue the cure to completion.

ARTICLE 10 

BUSINESS PLAN AND BUDGETS

10.1

Business Plan and Budgets

Operator shall deliver to the Management Committee for approval a proposed Business Plan and Budget detailing the Joint Venture Operations to be performed for the period detailed therein.  Within fourteen (14) Days of such delivery, the Management Committee shall meet to consider and to endeavour to agree on the Business Plan and Budget.

10.2

Preparation

During the preparation of the proposed Business Plan and Budget contemplated in this Article 9, the Operator shall consult with the Management Committee as to the contents thereof.

10.3

Cost Estimates

Each Budget submitted by the Operator shall contain an itemized estimate of the costs of Joint Venture Operations and all other expenditures to be made for the Joint Venture Account for the Budget in question and shall, inter alia:

(a)

include such reasonable information regarding the Operator's allocation procedures and 

estimated manpower costs as the Management Committee may determine;

(b)

comply with the requirements of this Agreement.

10.4

Approval and Revisions

Any approved Business Plan or Budget may be revised by the Management Committee from time to time. To the extent such revisions are approved by the Management Committee, the previously approved Business Plan or Budget shall be amended accordingly.

ARTICLE 11 

RELATIONSHIP OF JOINT VENTURE PARTICIPANTS AND TAX

11.1

Relationship of Joint Venture Participants

It is agreed that the rights, duties, obligations and liabilities of the Joint Venture Participants under this Agreement shall be several, not joint or collective. It is not the intention of the Joint Venture Participants to create, nor shall this Agreement be deemed or construed to create an association or (except as explicitly provided in this Agreement) a partnership. This Agreement shall not be deemed or construed to authorize any Party to act as an agent, servant or employee for any other Party for any purpose whatsoever except as explicitly set forth in this Agreement. In their relations with each other under this Agreement, the Parties shall not be considered fiduciaries except as expressly provided in this Agreement.  

11.2

Income Tax Reporting

Each Joint Venture Participant shall be responsible for reporting and discharging its own tax measured by the profit or income of the Joint Venture. Each Joint Venture Participant shall protect, defend and indemnify each other Joint Venture Participant from any and all loss, cost or liability arising from the indemnifying Joint Venture Participants' failure to report and discharge such tax liabilities or satisfy such obligations. The Joint Venture Participants intend that all income and all tax benefits (including, but not limited to, deductions, depreciation, amortization and credits) with respect to the expenditures made by the Operator on behalf of the Joint Venture Participants will be allocated by the relevant Government tax authorities to the Joint Venture Participants based on the relevant interest of each Joint Venture Participant. If such allocation is not accomplished due to the application of the laws and regulations of the relevant Government or other Government action, the Joint Venture Participants shall attempt to adopt mutually agreeable arrangements that will allow the Parties to achieve the results intended, particularly with respect to the global corporate structure of RSI and Resin Canada. The Operator shall provide each Joint Venture Participant, in a timely manner and at such Joint Venture Participant's sole expense, with such information with respect to Joint Venture Operations as such Joint Venture Participant may reasonably request for preparation of its tax returns or responding to any audit, assessment or other tax proceeding.

ARTICLE 12 

CONFIDENTIAL INFORMATION

12.1

Confidential Information

Subject to the provisions of the JVA and this Agreement, the Parties agree that all information and data acquired or obtained by the Operator in respect of Joint Venture Operations shall be kept confidential by the Operator, except disclosure:

(a)

to an Affiliate, provided such Affiliate maintains confidentiality as provided in this Article 

11;

(b)

to a Governmental agency or other entity when required by this Agreement or the JVA;

(c)

to the extent such data and information is required to be furnished in compliance with any 

applicable laws, regulations, or listing agreements, or pursuant to any legal proceedings or 

because of any order of any court binding upon a Party;

(d)

to prospective or actual contractors, consultants and legal counsel employed by any Party 

where disclosure of such data or information is essential to such contractor's, consultant's or 

attorney's work;

(e)

to a bona fide prospective transferee with whom a Party or its Affiliates are conducting bona 

fide negotiations directed toward a merger, consolidation or the sale of a majority of its or an 

Affiliate's shares;

(f)

to a bank or other financial institution to the extent appropriate to a Party arranging for 

funding;

(g)

to the extent such data and information must be disclosed pursuant to any rules or 

requirements of any Government or stock exchange having jurisdiction over such Party, or its 

Affiliates; provided that if any Party desires to disclose information in an annual or periodic 

report to its or its Affiliates' shareholders and to the public and such disclosure is not required 

pursuant to any rules or requirements of any Government or stock exchange, then such Party 

shall obtain consent from the other Party;

(h)

to its respective employees and contractors for the purposes of Joint Venture Operations, 

subject to each Party taking customary precautions to ensure such data and information is 

kept confidential; and

(i)

of any data or information which, through no fault of a Party, becomes a part of the public 

domain.

ARTICLE 13

FORCE MAJEURE

13.1

Obligations

If as a result of Force Majeure any Party is rendered unable, wholly or in part, to carry out its obligations under this Agreement, other than the obligation to pay any amounts due or to furnish security, then the obligations of the Party giving such notice, so far as and to the extent that the obligations are affected by such Force Majeure, shall be suspended during the continuance of any inability so caused and for such reasonable period thereafter as may be necessary for the Party to put itself in the same position that it occupied prior to the Force Majeure, but for no longer period. The Party claiming Force Majeure shall notify the other Parties of the Force Majeure within a reasonable time after the occurrence of the facts relied on and shall keep all Parties informed of all significant developments. Such notice shall give reasonably full particulars of the Force Majeure, and also estimate the period of time which the Party will probably require to remedy the Force Majeure. The affected Party shall use all reasonable diligence to remove or overcome the Force Majeure situation as quickly as possible in an economic manner, but shall not be obligated to settle any labor dispute except on terms acceptable to it and all such disputes shall be handled within the sole discretion of the affected Party.

ARTICLE 14

 NOTICES

14.1

Notices

Except as otherwise specifically provided, all notices authorized or required between the Parties by any of the provisions of this Agreement, shall be in writing, and delivered in person or by courier service or by any electronic means of transmitting written communications which provides written confirmation of complete transmission, and addressed to such Parties as designated below. Oral communication does not constitute notice for purposes of this Agreement, and telephone numbers for the Parties are listed below as a matter of convenience only. The originating notice given under any provision of this Agreement shall be deemed delivered only when received by the Party to whom such notice is directed, and the time for such Party to deliver any notice in response to such originating notice shall run from the date the originating notice is received. The second or any responsive notice shall be deemed delivered when received. "Received" for purposes of this Article 13 shall mean actual delivery of the notice to the address of the Party to be notified specified in accordance with this Article 13. Each Party shall have the right to change its address at any time and/or designate that copies of all such notices be directed to another person at another address, by giving written notice thereof to all other Parties.

Notices to Resin Canada:

with a copy by fax or email to:

Resin Systems Inc. 

14604 -115A Avenue

 Edmonton, AB T5M 3C4

Attention: Brian Carpenter

Attention: 

Fax: (780) 452-8755

Fax; 

Telephone: (780) 482-1953

Telephone: 

email:

email:

Notices to RSI:

with a copy by fax or email to:

Resin Systems International Ltd.

Resin Systems Inc. 

Principal House, #9 Freshwater Bay

St. Michael, Barbados

Attention: Barbara Greenidge

Attention: Greg Pendura

Fax: (246) 424-8125

Fax: (780) 452-8755

Telephone: (246) 230-6868

Telephone: (780) 482-1953

email: rsint@sunbeach.net

email: greg@resinsystemsinc.com

Notices to EPL:

with a copy by fax or email to:

Euro-Projects (LTTC) Ltd. 

Shaw House

1-3 Fowke Street

Rowley, Leicestershire, England 

LE7 7PJ

Attention: Gerald Boyce

Attention:

Fax: 0 (116) 230-3989

Fax; 

Telephone: 0 (116) 237-6693

Telephone: 

email: g.boyce@europrojects.co.uk

email:

Notices to Operator:

with a copy by fax or email to:

RS Technologies Inc. 

2421 - 37 Avenue N.E. 

Calgary, Alberta

T2E 6Y7

Attention: Paul Giannelia

Attention: 

Fax:

Fax; 

Telephone:

Telephone: 

email:

email:

ARTICLE 15 

DISPUTE RESOLUTION

15.1

Consultation and Arbitration

All disputes in connection with or in the execution of this Agreement shall attempt to be settled by the Parties through friendly consultations. Where a dispute arises which the Parties are unable to resolve, the disputing Party shall in writing provide sufficient detail as to describe such dispute and provide notice of such dispute to the other Party. The Parties agree that within ten (10) days of receipt of such notice, the Chief Executive Officer of each Party shall meet and confer, either by phone or in person, in a good faith attempt to resolve such dispute. Should the Parties then be unable to resolve any dispute between them, the dispute shall be settled by arbitration, conducted on a confidential basis, under the Province of Alberta Arbitration Act (Chapter A-43 as amended) and the rules of the International Chamber of Commerce. Neither Party shall institute an arbitration proceeding hereunder unless at least sixty (60) days prior thereto such Party shall have furnished to the other written notice according to the terms of Section 13.1 herein.

15.2

Injunctive Relief

No provision of this Article 15 is intended to prevent a Party from seeking injunctive relief as a remedy, or any action necessary to enforce the award of the arbitrators, in a court of competent jurisdiction.

ARTICLE 16 

GENERAL PROVISIONS

16.1

Conflicts of Interest

(a)

The Operator undertakes that it shall avoid any conflict of interest between its own interests 

(including the interests of Affiliates) and the interests of the other Parties in dealing with .

suppliers, customers and all other organizations or individuals doing or seeking to do 

business with the Parties in connection with activities contemplated under this Agreement.

(b)

The provisions of the preceding paragraph shall not apply to:

(i)

the Operator's performance which is in accordance with the local preference laws or 

policies of any Government; or

(ii)

the Operator's acquisition of products or services from its Affiliates, the Joint Venture 

Participants or their Affiliates, or the sale thereof to an Affiliate, made in accordance 

with the terms of this Agreement.

16.2

Waiver

No waiver by any Party of any one or more defaults by another Party in the 

performance of this Agreement shall operate or be construed as a waiver of any future default or 

defaults by the same Party, whether of a like or of a different character. Except as expressly provided 

in this Agreement no Party shall be deemed to have waived, released or modified any of its rights 

under this Agreement unless such Party has expressly stated, in writing, that it does waive, release or 

modify such right.

16.3

Severance of Invalid Provisions

If and for so long as any provision of this Agreement shall be deemed to be judged invalid for any reason whatsoever, such invalidity shall not affect the validity or operation of any other provision of this Agreement except only so far as shall be necessary to give effect to the construction of such invalidity, and any such invalid provision shall be deemed severed from this Agreement without affecting the validity of the balance of this Agreement.

16.4

Readings

The topical headings used in this Agreement are for convenience only and shall not be construed as having any substantive significance or as indicating that all of the provisions of this Agreement relating to any topic are to be found in any particular Article.

16.5

Singular and Plural

Reference to the singular includes a reference to the plural and vice versa.

16.6

Gender

Reference to any gender includes a reference to all genders.

16.7

Counterpart Execution

This Agreement is executed in four (4) original counterparts and each such counterpart shall be deemed an original Agreement for all purposes; provided no Party shall be bound to this Agreement unless and until all Parties have executed a counterpart. For purposes of assembling all counterparts into one document, the Operator is authorized to detach the signature page from one or more counterparts and, after signature thereof by the respective Party, attach each signed signature page to a counterpart.

16.8

Entirety

This Agreement is the entire agreement of the Parties with respect to the subject matter contained herein and supersedes all prior understandings and negotiations of the Parties.

16.9

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of Alberta and Canada.

IN WITNESS of their agreement each Party has caused its duly authorized representative to sign this instrument on the date indicated below such representative's signature.

RESIN SYSTEMS INC.

Per:  /s/ ______________________________

RESIN SYSTEMS INTERNATIONAL LTD.

Per: /s/ _______________________________ 

EURO-PROJECTS (LTTC) LTD.

Per: /s/ _________________________________

RS TECHNOLOGIES INC.

Per: /s/ __________________________________

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