Document:

Exhibit
10.2

 

SECURED
TERM PROMISSORY NOTE

 

	$750,000	Advance Date: 	May 28, 2019
	 	 	 
	 	Maturity Date:	September 30, 2020

 

FOR VALUE RECEIVED, Ondas
Holdings Inc., a Nevada corporation, for itself and each of its Subsidiaries (the “Borrower”) hereby promises to pay
to the order of Energy Capital, LLC, a Florida limited liability company, or the holder of this Note (the “Lender”)
at Lender’s address listed in Loan Agreement, or such other place of payment as the holder of this Secured Term Promissory
Note (this “Promissory Note”) may specify from time to time in writing, in lawful money of the United States of America,
the principal amount of Seven Hundred Fifty Thousand Dollars ($750,000) or such lesser principal amount as Lender has advanced
to Borrower, together with interest as set forth in that certain Loan and Security Agreement dated October 1, 2018, by and among
Borrower, its Domestic Subsidiaries party thereto and Lender (as the same may from time to time be amended, modified or supplemented
in accordance with its terms, the “Loan Agreement”).

 

This Promissory Note is
the Term Note referred to in, and is executed and delivered in connection with, the Loan Agreement, and is entitled to the benefit
and security of the Loan Agreement and the other Loan Documents (as defined in the Loan Agreement), to which reference is made
for a statement of all of the terms and conditions thereof. All payments shall be made in accordance with the Loan Agreement. All
terms defined in the Loan Agreement shall have the same definitions when used herein, unless otherwise defined herein. An Event
of Default under the Loan Agreement shall constitute an Event of Default under this Promissory Note.

 

Borrower waives presentment
and demand for payment, notice of dishonor, protest and notice of protest under the UCC or any applicable law. Borrower agrees
to make all payments under this Promissory Note without setoff, recoupment or deduction and regardless of any counterclaim or defense.
This Promissory Note has been negotiated and delivered to Lender and is payable in the State of Florida. This Promissory Note shall
be governed by and construed and enforced in accordance with, the laws of the State of Florida, excluding any conflicts of law
rules or principles that would cause the application of the laws of any other jurisdiction.

 

BORROWER FOR ITSELF AND ON BEHALF OF ITS SUBSIDIARIES:

 

	 	ONDAS HOLDINGS INC.	 
	 	 	 	 
	 	By: 	/s/ Eric A. Brock	 
	 	 	Eric A. Brock, Chief Executive OfficerSusGlobal Energy Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

SHARE PURCHASE AGREEMENT 

 

BETWEEN: 

David Norman Moore and Kimberly Ann Moore 

– and – 

SusGlobal Energy Belleville Ltd. 

dated as of 

May 24, 2019 

 

TABLE OF CONTENTS 

	ARTICLE I
      INTERPRETATION 	1 
	         1.1 	Definitions 	1 
	       
       1.2 	Certain Rules of
      Interpretation 	6 
	         1.3 	Knowledge 	7 
	       
       1.4 	Entire Agreement
    	7 
	         1.5 	Applicable Law 	8 
	       
       1.6 	Schedules 	8 
	  	  	  
	ARTICLE II
      PURCHASE, SALE 	8 
	         2.1 	Purchase and Sale of the
      Purchased Shares and the Adjacent Lands 	8 
	       
       2.2 	Place of Closing
    	9 
	         2.3 	Title 	9 
	       
       2.4 	Option 	9 
	         2.5 	As Is Condition 	10 
	  	  	  
	ARTICLE III PURCHASE PRICE
    	10 
	       
       3.1 	Purchase Price
	10 
	         3.2 	Satisfaction of Purchase Price
	10 
	       
       3.3 	Adjustments 	11 
	         3.4 	Taxes 	11 
	       
       3.5 	Tax Returns 	11 
	         3.6 	Rights Cumulative 	12 
	  	  	  
	ARTICLE IV REPRESENTATIONS AND
      WARRANTIES OF THE VENDORS 	12 
	       
       4.1 	Corporate
      Organization, Standing and Qualifications 	12 
	         4.2 	Authorization 	12 
	       
       4.3 	Capitalization
	13 
	         4.4 	Consents and Approvals; No
      Violations 	13 
	       
       4.5 	Books and
      Records; Bank Accounts 	14 
	         4.6 	Absence of Undisclosed
      Liabilities 	14 
	       
       4.7 	Real Property 	15 
	         4.8 	Environmental Matters-Waste
      Collections and Landfill Operations 	16 
	       
       4.9 	Title 	18 
	         4.10 	Contracts 	18 
	       
       4.11 	Vehicles,
      Equipment and Office Equipment 	19 
	         4.12 	Location of Assets 	19 
	       
       4.13 	Taxes 	19 
	         4.14 	Residence 	22 
	       
       4.15 	Employment
      Matters 	22 
	         4.16 	Compliance with Laws;
      Governmental Authorizations 	23 
	       
       4.17 	Litigation 	23 
	         4.18 	Truth and Accuracy of Schedules
    	23 
	  	  	  
	ARTICLE V REPRESENTATIONS AND
      WARRANTIES OF THE PURCHASER 	23 
	       
       5.1 	Corporate
      Organization, Standing and Qualifications 	23 

- ii - 

	       
       5.2 	Authorization 	24 
	         5.3 	Consents and Approvals; No
      Violations 	24 
	       
       5.4 	Knowledge of
      Purchaser 	24 
	         5.5 	No Other Representations and
      Warranties 	24 
	  	  	  
	ARTICLE VI SURVIVAL 	25 
	       
       6.1 	Survival of
      Vendors’ Representations and Warranties 	25
	         6.2 	Survival of Purchaser’s
      Representations and Warranties 	25 
	       
       6.3 	Indemnification
    	25 
	         6.4 	Procedure for Indemnification 	27 
	       
       6.5 	Third Party
      Claims 	28 
	         6.6 	Additional Rules and Procedures
    	29 
	       
       6.7 	Rights Cumulative
    	29 
	         6.8 	Subrogation 	30 
	       
       6.9 	Insurance and
      Other Recoveries 	30 
	         6.10 	Mitigation 	30 
	       
       6.11 	Adjustment to
      Purchase Price 	30 
	  	  	  
	ARTICLE VII
      CLOSING	30 
	         7.1 	Electronic Registration 	30
	       
       7.2 	Vendors and
      Company Closing Deliverables 	31 
	         7.3 	Purchaser Closing Deliverables
	31 
	  	  	  
	ARTICLE VIII GENERAL 	32 
	       
       8.1 	Notices 	32 
	         8.2 	Waiver 	33 
	       
       8.3 	Severability 	33 
	         8.4 	Assignment and Enurement 	33 
	       
       8.5 	Expenses 	33 
	         8.6 	Further Assurances 	33 
	       
       8.7 	Jurisdiction 	34 
	         8.8 	Service 	34 
	       
       8.9 	Public Notices
	34 
	         8.10 	Third Party Beneficiaries 	34 
	       
       8.11 	Non-Merger 	35 
	         8.12 	No Presumption 	35 
	       
       8.13 	Language 	35 
	         8.14 	Execution by Electronic
      Transmission 	35 
	       
       8.15 	Counterparts 	35 

SHARE PURCHASE AGREEMENT 

THIS AGREEMENT is made as of the 24th day of
May, 2019. 

BETWEEN:

SUSGLOBAL ENERGY BELLEVILLE
LTD., a corporation 
incorporated under the laws of the Province
of Ontario 

(the "Purchaser"), 

- and - 

DAVID NORMAN MOORE and
KIMBERLY ANN MOORE 

(each, a "Vendor" and hereafter
collectively referred to as the 
"Vendors"). 

RECITALS: 

	A. 	
      The Vendors are the owners, beneficially and of record,
      of all of the issued and outstanding shares in the capital of 1684567
      Ontario Inc.

	 	 
	B. 	
      The Vendors are the registered and legal owners of the
      Adjacent Lands and the Additional Lands.

	 	 
	C. 	
      The Purchaser wishes to purchase and the Vendors wishes
      to sell the Purchased Shares and the Adjacent Lands, and the Vendors
      wishes to grant to the Purchaser the option to buy the Additional Lands,
      in each case on and subject to the conditions of this
  Agreement.

NOW THEREFORE, in consideration of the foregoing and the
representations, warranties, conditions, agreements and promises contained in
this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the Parties to this Agreement,
the Parties agree as follows: 

ARTICLE I 
INTERPRETATION

	1.1 	
      Definitions

Throughout this Agreement, except as otherwise expressly
provided, the following words, terms and expressions shall have the following
meanings: "Additional Lands" means the 2.62 hectare gravel pit B license
# 2984 legally described as PT LT 20 CON 8 THURLOW PT 2 21R19513; S/T QR266045;
BELLEVILLE ; COUNTY OF HASTINGS being all of PIN # 40532-0031 (LT) and the lands
and premises legally described as PT LT 20 CON 8 THURLOW PT 1 21R18453; BELLEVILLE ; COUNTY OF
HASTINGS being all of PIN # 40532-0033 (LT).

- 2 - 

"Adjacent Lands" means PT LT 20 CON 8 THURLOW PT 25, 27
AND 29 21R6801; BELLEVILLE ; COUNTY OF HASTINGS, being the lot on Phillipston
Rd. with PIN # 40532-0041 (LT). 

"Affiliate" shall have the meaning given to it in the
Business Corporations Act (Ontario), as amended from time to time.

"Agreement", "this Agreement", "the Agreement",
"hereof", "herein", "hereto", "hereby", "hereunder" and similar expressions mean
this Share Purchase Agreement dated May [21], 2019 between the Parties,
including all schedules and exhibits, and all instruments supplementing,
amending, modifying, restating or otherwise confirming this Agreement. All
references to "Articles", "Sections", "Schedules" and "Exhibits" mean and refer
to the specified article, section, schedule and exhibit of this Agreement. 

"arm’s length" has the meaning given to it by Section
251 of the Tax Act. 

"Books and Records" means all books and records of the
Company. 

"Buildings" means the buildings, plants, structures,
facilities and equipment erected in or upon any Owned Real Property. 

"Business" means the municipal waste contracting
business offering curbside waste collection and landfill management services
currently operated by the Company but for greater certainty, excludes the
business carried on by the Purchaser on the Company Lands subject to the Company
lease (the "Leased Lands"). 

"Business Day" means any day which is not a Saturday, a
Sunday or a day observed as a statutory or civic holiday under the laws of the
Province of Ontario or the federal laws of Canada applicable in the Province of
Ontario, on which the principal commercial banks in the City of Toronto, Ontario
are open for business. 

"Certificate" has the meaning given to it in Section
6.3(a) . 

"Claim" means any claim, demand, complaint, grievance,
action, cause or right of action, damage, loss, costs, liability, obligation or
expense, assessments or reassessments, including, without limitation, reasonable
professional fees and all reasonable costs incurred in investigating or pursing
any of the foregoing, or any proceeding, arbitration, mediation or other dispute
resolution procedure relating to any of the foregoing, or any orders, writs,
injunctions or decrees of any Governmental Authority. 

"Closing" means the completion of the sale to and
purchase by the Purchaser of the Purchased Shares and the completion of all
other transactions contemplated by this Agreement that are to occur at the same
time as the sale and purchase of the Purchased Shares. 

"Closing Date" means May 28, 2019, or such other
date as the Parties may agree upon in writing as the date upon which the Closing
shall take place. 

- 3 - 

"Closing Time" means 12:01 a.m.
Toronto time on the Closing Date or such other time on such date as the Parties
may agree in writing as the time at which the Closing shall take place. 

"Company" means 1684567 Ontario Inc., a company
incorporated under the laws of the province of Ontario. 

"Company Lands" means the lands and premises legally
known as PT LT 20 CON 8 THURLOW PT 1 21R19513; BELLEVILLE; COUNTY OF HASTINGS
and municipally known as 704 Phillipston Road, Belleville, Ontario with PIN #
40532-0032 (LT). 

"Company Lease" means the 13.88 -acre lease between the
Company and Astoria Organic Matters Canada Limited dated June 24, 2013, which
was assigned to the Purchaser on September 15, 2017. 

"Consents" means all consents, approvals, permits,
licences, waivers of rights of first refusal or waivers of due on sale clauses
or other waivers, as applicable, from: (a) any party to any Contract, and (b)
any Governmental Authority necessary or advisable in connection with the
execution of this Agreement, the Closing or the performance of any terms thereof
or any document delivered pursuant thereto or the completion of any of the
transactions contemplated by this Agreement. 

"Contracts" of any Person means all contracts, Equipment
Leases, licences, sub-licences, agreements, commitments, entitlements,
undertakings, understandings and engagements to which such Person is a party or
by which such Person is bound, including the Company Lease, whether written,
oral or otherwise, and includes all quotations, orders or tenders for contracts
which remain open for acceptance and any manufacturers’ or suppliers’ warranty,
guarantee or commitment (express or implied). 

"Contractual Obligations" means, with respect to any
Person, any provision of any security issued by such Person or of any agreement,
undertaking, obligation, contract, indenture, mortgage, deed of trust or other
instrument to which such Person is a party or by which it or any of its property
is bound, whether written or oral. 

"DRA" shall have the meaning ascribed thereto in Section
7.1. 

"Encumbrance" means any encumbrance, lien, security
interest, option, right of first refusal, easement, mortgage, charge, hypothec,
indenture, deed of trust, right of way, registered restriction on the use of
real property, encroachment, licence to third parties, lease to third parties,
security agreement, or any other encumbrance. 

"Environmental Laws" means all Laws of any Governmental
Authority relating to or otherwise imposing liability or standards of conduct
with respect to environmental or health matters, including legislation governing
the labelling, use, transportation, manufacture, processing, generation,
distribution, treatment, storage, discharge, Release, disposal, clean-up or
handling of Hazardous Substances. 

"Environmental Permits" means all permits, certificates,
licences, authorizations, consents, instructions, registrations, directions or
approvals issued or required by any Governmental Authority or other Person pursuant to any Environmental Laws
with respect to the Company or the operation of the Business. 

- 4 - 

"Environmental Reports" shall have the meaning given to
it in Section 4.8(f) . 

"Equipment" means all machinery, equipment, storage
tanks, fuel, fixtures, accessories, supplies, spare parts, tools, personal
property and other tangible property owned by the Company or used in carrying on
the Business. 

"Equipment Leases" means all leases and licences
relating to the Equipment, leases and licences, Vehicle leases, conditional
sales contracts, title retention agreements and other similar agreements
relating to Equipment or Vehicles used by the Company in carrying on the
Business. 

"Ex Juris Party" has the meaning given to it in Section
8.8. 

"Fundamental Representations" has the meaning given to
it in Section 6.1(a) . 

"Governmental Authority" means any governmental,
regulatory or administrative authority, department, agency, commission, board,
panel, tribunal, government-owned corporation, government ministry or court or
other law, rule or regulation-making or enforcing entity having or purporting to
have jurisdiction on behalf of any nation, or province, territory or state or
other subdivision thereof or any municipality, district or other subdivision
thereof.

"Governmental Authorization" means any authorization,
approval, licence, consent, quota or permit, including any Environmental Permit,
issued by any Governmental Authority. 

"Hazardous Substances" means any substance which is
deemed to be, alone or in any combination, "hazardous", "hazardous waste",
"radioactive", "deleterious", "toxic", "caustic", "dangerous", a "contaminant",
a "pollutant", a "dangerous good", a "waste", a "special waste", a "source of
contamination" or a "source of a pollutant" under any Environmental Law whether
or not such substance is defined as hazardous under the Environmental Law
involved; any substances or materials the presence or concentration of which in
soil, sediment, ground water or surface water is regulated under any
Environmental Law, including, without limitation, asbestos, asbestos-containing
materials, lead or lead-based paint, polychlorinated biphenyls, mould, mildew or
fungi, oil, waste oil, petroleum, petroleum productions, or urea formaldehyde
foam insulation; and any other material or substance which may pose a threat to
the environment or to human health or safety. 

"HST" means the harmonized sales tax or the goods and
services tax (as the case may be) imposed under the HST Legislation which, for
greater certainty, includes the provincial component of any harmonized sales tax
imposed under the HST Legislation. 

"HST Legislation" means Part IX of the Excise Tax
Act (Canada). 

"Indemnified Party" has the meaning given to it in
Section 6.4(a) . 

"Indemnifying Party" has the meaning given to it in
Section 6.4(a) . 

"Lands" means the Adjacent Lands and the Company Lands.

- 5 - 

"Laws" means all applicable laws, common law, statutes,
regulations, by-laws, rules, decrees, orders, ordinances, protocols, codes,
guidelines, policies, notices, directions and judgments or other requirements of
any Governmental Authority. 

"Liabilities" means the debts, liabilities, obligations,
Claims, Encumbrances, commitments, demands and expenses of any nature or kind,
whether known or unknown, accrued or unaccrued, absolute, contingent or
otherwise and whether due or to become due, of any Person. 

"Lien Discharge Amount" means the sum of $72,000
paid by the Purchaser on February 5, 2019 to the Vendors in connection with the
discharge of liens against the Owned Real Property in contemplation of this
Agreement. 

"Losses" has the meaning given to it in Section 6.3.

"Material Adverse Change" or "Material Adverse
Effect" shall mean, (a) when used with respect to the Company or the
Business, any materially adverse change in or effect on the Business, assets,
liabilities, results of operation, condition (financial or otherwise) or
prospects of the Company, or (b) when used with respect to the Purchaser or the
Vendors, as the case may be, any materially adverse change in or effect on
(including any material delay) the ability of the Purchaser or the Vendors, as
the case may be, to perform their respective obligations under this Agreement. 

"Municipal Contracts" means the four municipal contracts
relating to curbside waste collection and landfill maintenance and operation set
forth in Schedule 2.

"Notice" shall have the meaning given to it in Section
8.1. "Option" shall have the meaning given to it in Section 2.4. 

"Owned Real Property" means the Lands, and all
Buildings, Systems, improvements and fixtures situated on or forming a part of
the Lands, and all easements, rights of way, privileges and appurtenances
belonging to and enuring to the benefit thereof. 

"Parties" means, collectively, the Purchaser and the
Vendors and "Party" means either of them. 

"Permitted Encumbrances" means (a) Encumbrances for
current Taxes, assessments, charges or levies not yet due and payable, and (b)
the Encumbrances listed upon the attached Schedule 2.1. 

"Person" means any individual, sole proprietorship,
limited or unlimited liability corporation, partnership, unincorporated
association, unincorporated syndicate, unincorporated organization, body
corporate, joint venture, trust, pension fund, union, Governmental Authority,
and a natural person including in such person’s capacity as trustee, heir,
beneficiary, executor, administrator or other legal representative. 

"Professional Fee Amount" means the amount, not to
exceed $100,000 in the aggregate, plus HST, of legal and accounting fees
incurred by the Vendors in connection with the transactions contemplated hereby
as communicated to the Purchaser in writing not less than three Business Days prior to the Closing Date together with such supporting
documentation therefor as the Purchasers require, acting reasonably. 

- 6 - 

"Purchase Price" has the meaning given to it in Section
3.1. 

"Purchased Shares" means all of the issued and
outstanding shares in the capital of the Company. 

"Release" means any release, spill, leak, pumping,
pouring, emission, emptying, discharge, injection, escape, leaching, disposal,
dumping, deposit, spraying, burial, abandonment, incineration, seepage,
placement or migrating to, into or through the environment. 

"Remedial Order" means any administrative complaint,
direction, order or sanction issued, filed or imposed by any Governmental
Authority pursuant to any Environmental Law and includes, without limitation,
any order requiring remediation or clean-up of any Hazardous Substance, or
requiring that any Release or any other activity be reduced, modified or
eliminated. 

"Systems" means all mechanical and electrical systems
used in connection with the operation and maintenance of any Buildings,
including the heating, ventilating, air conditioning, electrical, sprinkler and
drainage systems. 

"Tax Act" means the Income Tax Act (Canada). 

"Tax Refunds" means any refund or rebate of Taxes
previously paid (or any instalments previously paid in respect of Taxes), or any
refundable tax credit received (or credited), in respect of any taxable period
or portion thereof. 

"Tax Returns" includes, without limitation, all returns,
reports, declarations, elections, notices, filings, information returns and
statements required to be filed, or in fact filed, in respect of Taxes or Tax
Refunds and any schedules attached thereto. 

"Taxes" includes, without limitation, all taxes, duties,
fees, premiums, assessments, imposts, levies and other charges of any kind
whatsoever imposed by any Governmental Authority, together with all interest,
penalties, fines, additions to tax or other additional amounts imposed in
respect thereof. 

"Transfer Taxes" has the meaning ascribed thereto in
Section 3.4(b) . 

"Vehicles" means the 2003 International garbage truck
with VIN# 1HTWYATT93J063808 described in Schedule 4.11. 

	1.2 	
      Certain Rules of
Interpretation

In this Agreement and the Schedules and Exhibits: 

	 	(a) 	
      Time – Time is of the essence in and of this
      Agreement.

	 	 	 
	 	(b) 	
      Calculation of Time – Unless otherwise specified,
      time periods within or following which any payment is to be made or act is
      to be done shall be calculated by excluding the day on which the period
      commences and including the day on which the period ends. Where the last
      day of any such time period is not a Business Day, such time period shall
      be extended to the next Business Day following the day on which it would
      otherwise end.

- 7 - 

	 	(c) 	
      Business Days – Whenever any action to be taken or
      payment to be made pursuant to this Agreement would otherwise be required
      to be made on a day that is not a Business Day, such action shall be taken
      or such payment shall be made on the first Business Day following such
      day.

	 	 	 
	 	(d) 	
      Currency – Unless otherwise specified, all
      references to amounts of money in this Agreement refer to the lawful
      currency of Canada.

	 	 	 
	 	(e) 	
      Headings – The descriptive headings preceding
      Articles and Sections of this Agreement are inserted solely for
      convenience of reference and are not intended as complete or accurate
      descriptions of the content of such Articles or Sections. The division of
      this Agreement into Articles and Sections shall not affect the
      interpretation of this Agreement.

	 	 	 
	 	(f) 	
      Including – Where the word "including" or
      "includes " is used in this Agreement, it means "including
      without limitation " or "includes without
limitation".

	 	 	 
	 	(g) 	
      Plurals and Gender – The use of words in the
      singular or plural, or referring to a particular gender, shall not limit
      the scope or exclude the application of any provision of this Agreement to
      such persons or circumstances as the context otherwise permits.

	 	 	 
	 	(h) 	
      Statutory References – Any reference to a statute
      shall mean the statute in force as at the date of this Agreement (together
      with all regulations promulgated thereunder), as the same may be amended,
      re-enacted, consolidated or replaced from time to time, and any successor
      statute thereto, unless otherwise expressly provided.

	 	 	 
	 	(i) 	
      Ordinary Course – Any reference to an action taken
      by a Person in the ordinary course means that such action is consistent
      with past practices of such Person and is taken in the ordinary course of
      the normal operations of such Person.

	1.3 	
      Knowledge

Whenever any Party makes any representation, warranty or other
statement to such Party’s knowledge, or any other similar knowledge
qualification, such "knowledge" means the actual knowledge of such Party.

	1.4 	
      Entire Agreement

	 	(a) 	
      This Agreement together with the agreements and other
      documents to be delivered pursuant to this Agreement, constitute the
      entire agreement between the Parties pertaining to the subject matter of
      this Agreement and supersede all prior agreements, understandings, negotiations and
      discussions, whether oral, written or otherwise, of the Parties. There are no representations, warranties or other
      agreements between the Parties in connection with the subject matter of
      this Agreement except as specifically set forth in this Agreement and any
      document delivered pursuant to this Agreement.

- 8 - 

	 	(b) 	
      No supplement, modification, amendment, waiver or
      termination of this Agreement shall be binding unless executed in writing
      by the Party to be bound thereby.

	1.5 	
      Applicable Law

This Agreement shall be construed in accordance with the laws
of the Province of Ontario and the laws of Canada applicable therein and shall
be treated, in all respects, as an Ontario contract. 

	1.6 	
      Schedules

The following Schedules attached to this Agreement form an
integral part of this Agreement:

	Schedule 2 	- 	Municipal Contracts 
	Schedule 2.1 	- 	Permitted Encumbrances 
	Schedule 4.1 	- 	Corporate Organization 
	Schedule 4.3 	- 	Capitalization 
	Schedule 4.4 	- 	Vendors’ Consents and Approvals 
	Schedule 4.6 	- 	Absence of Undisclosed Liabilities 
	Schedule 4.7 	- 	Real Property 
	Schedule 4.8 	- 	Environmental Matters 
	Schedule 4.9 	- 	Title 
	Schedule 4.11 	- 	Vehicles, Equipment and Office Equipment 
	Schedule 4.13 	- 	Taxes 
	Schedule 4.15 	- 	Employment Matters 
	Schedule 4.16 	- 	Governmental Authorizations 
	Schedule 4.17 	- 	Litigation 

ARTICLE II 
PURCHASE, SALE 

	2.1 	
      Purchase and Sale of the Purchased Shares and the
      Adjacent Lands

At the Closing Time: 

	 	(a) 	
      The Vendors shall sell to the Purchaser, and the
      Purchaser shall purchase from the Vendors, the Purchased Shares and the
      Adjacent Lands, free and clear of all Encumbrances other than Permitted
      Encumbrances.

	 	 	 
	 	(b) 	
      The Vendors shall grant to the Purchaser the Option as
      described in Section 2.4 hereof.

	 	 	 
	 	(c) 	
      The Purchaser shall pay the Purchase Price, net of the
      Lien Discharge Amount, to the Vendors in accordance with the provisions of
      Article III.

- 9 - 

	 	(d) 	
      The Vendors shall deliver to the Purchaser share
      certificates representing the Purchased Shares duly endorsed in blank for
      transfer, or accompanied by irrevocable security transfer powers of
      attorney duly executed in blank, in either case by the holder of record,
      and shall take such steps as shall be necessary to enter the Purchaser or
      its nominee(s) upon the books of the Company as the holder of the
      Purchased Shares effective as of the Closing Date.

	 	 	 
	 	(e) 	
      The Vendors shall convey title to the Adjacent Lands to
      the Purchaser by way of the registration of a Transfer in a manner
      acceptable to the Purchaser, acting reasonably.

	 	 	 
	 	(f) 	
      The Vendors and the Purchaser shall deliver such other
      documents as may be reasonably necessary and consistent with the terms of
      this Agreement in order to complete the transactions contemplated herein
      in a form and on terms acceptable to the Vendor and Purchaser, acting
      reasonably.

	2.2 	
      Place of Closing

The Closing shall take place at the Closing Time at the offices
of Goodmans LLP, or at such other place as may be agreed upon by the Vendors and
the Purchaser in writing. The conveyance of the Adjacent Lands and the
registration of the Option on title to the Additional Lands shall occur in
accordance with a Document Registration Agreement between the solicitors for the
Vendor and the solicitors for the Purchaser, in the form approved of by the Law
Society of Ontario in accordance with Section 7.1. 

	2.3 	
      Title

The Purchaser may take title to the Optioned Lands in a
separate entity (to be identified in writing to the Vendors). This right
survives Closing. 

	2.4 	
      Option

For the period commencing after the Closing Time through and
including the date which is the six-month anniversary of the Closing Date (the
"Option Date") the Purchaser shall have the right, exercisable by written
notice to the Vendors, together with a deposit made payable to the Vendor of
$55,000, (collectively, the "Option Notice") to acquire the Additional
Lands for a purchase price of $210,000.00, in addition to HST, subject to the
usual adjustments allocated amongst the Additional Lands as set forth in
Schedule 2.4 (the "Option"). In connection therewith: 

	 	(a) 	
      the Vendors covenant and agree not to take any action
      that would cause the representations in Article IV, to be incorrect or
      incomplete, when applied to the Additional Lands or the transfer of same
      on the exercise of the Option, or for any Encumbrances (other than
      Permitted Encumbrances) to encumber the Additional Lands on closing of any
      exercise of the Option;

	 	 	 
	 	(b) 	
      the Vendors acknowledge and agree to provide such
      documentation on Closing as may be required to register notice of the
      Option on title to the Additional Lands, in form and substance acceptable to the Purchaser
      and the Vendor, acting reasonably;

- 10 - 

	 	(c) 	
      the Parties agree to take all such steps and do all such
      things as are reasonably required to convey the Additional Lands to the
      Purchaser upon the due exercise of the Option on the date which is fifteen
      (15) Business Days following the exercise of the Option or such other date
      as the Parties agree in writing (for greater certainty, the closing of the
      Option may take place after the Option Date, so long as the Option Notice
      is delivered prior to the Option Date);

	 	 	 
	 	(d) 	
      save and except for the representations and warranties
      contained in Section 4.7 of this Agreement, which relate to the Additional
      Lands, the Purchaser will accept the Additional Lands on an "as is where
      is" condition, without warranty or representation from the Vendors,
      subject to the same indemnity obligations described in Section 6.3 of this
      Agreement; and

	 	 	 
	 	(e) 	
      the Purchaser shall permit the Vendor to access and enter
      the Additional Lands on an unrestricted basis and to extract, process and
      sell gravel situated on the Additional Lands for a period of one (1) year
      following the closing of the Option.

	2.5 	
      As Is Condition

Subject to the representations and warranties described in
Section 4.7 of this Agreement, the Purchaser will accept the Company Lands and
the Adjacent Lands on an "as is where is" condition without warranty or
representation from the Vendors, subject to the indemnities in Section 6.3 of
this Agreement. 

ARTICLE III 
PURCHASE PRICE 

	3.1 	
      Purchase Price

The amount payable by the Purchaser for the Purchased Shares
shall be the amount of $1,717,250.00 (of which, $315,319 will be allocated to
the Class A Preference Shares; $10 will be allocated to the Class B Preference
Shares; $10 will be allocated to the Class C Preference Shares; and the balance
will be allocated to the Common Shares), the amount payable by the Purchaser for
the Adjacent Lands shall be $50,000.00 subject to the usual adjustments, such
that the total purchase price (the "Purchase Price") shall be
$1,767,250.00. 

	3.2 	
      Satisfaction of Purchase
Price

The Purchaser shall pay an amount equal to the Purchase Price,
less the Lien Discharge Amount and plus the Professional Fee Amount, at the
Closing Time by wire transfer as the Vendors direct in writing. 

- 11 - 

	3.3 	
      Adjustments

The Purchase Price shall be subject to customary adjustments
for the sale of real property similar to the Owned Real Property, including
realty taxes, local improvement charges and rent payable under the Company
Lease, along with customary adjustments for the sale of shares of a company
similar to the Company, including prepaid expenses and accrued liabilities
relating to the Business. 

	3.4 	
      Taxes

	 	(a) 	
      The Purchaser shall be responsible for the HST that is
      exigible with respect to the transaction in addition to the Purchase
      Price. The Purchaser hereby undertakes to self-assess and remit the HST
      that is exigible with respect to the transaction and to indemnify the
      Vendors for any HST which may be payable, as well as any penalties, costs
      and/or interest resulting from any inaccuracy, misstatement or
      misrepresentation made by the Purchaser in connection with the HST
      payable. Provided that the Purchaser delivers to the Vendors a certificate
      and indemnity in a form acceptable to the Vendors with respect to HST
      self- assessment and remission, together with satisfactory proof of its
      HST registration number(s) on or before the Closing Date, the Purchaser
      shall not be obliged to remit payment of the said HST to the Vendors at
      Closing, but will remain exclusively liable for said payment.

	 	 	 
	 	(b) 	
      The Purchaser shall pay or cause the payment of all
      applicable HST, land transfer taxes, sales taxes, registration fees or
      other like charges properly payable on or in connection with the purchase
      of the Purchased Shares, Adjacent Lands and granting of the Option
      (collectively, the "Transfer Taxes") as and when such Transfer
      Taxes are payable pursuant to the applicable taxing legislation. The
      Purchaser and the Vendors acknowledge and agree that the Purchase Price
      and all other amounts referenced herein are exclusive of all Transfer
      Taxes.

	3.5 	
      Tax Returns

	 	(a) 	
      Vendors shall cause the Company’s current accountants to
      prepare and file all Tax Returns related to the Company for any period up
      to and including to the Closing Date that are to be filed after the
      Closing Date (" Pre-Closing Tax Returns"). All Pre-Closing Tax
      Returns shall be prepared in a manner consistent with past practice
      (subject to applicable law) of the Company. All Pre-Closing Tax Returns
      shall be submitted to the Purchaser for review not less than forty-five
      (45) days before the filing deadline for such Pre-Closing Tax Returns. The
      Purchaser shall provide comments to the Vendor not less than twenty (20)
      days prior to the filing deadline for such Pre-Closing Tax Returns, and
      the Purchaser shall cause the Pre- Closing Tax Returns to be amended to
      reflect the reasonable comments of the Purchaser (unless contrary to
      applicable Law or inconsistent with past practices). The Vendors shall
      pay, (a) the costs of the Company's current accountants
      preparing such Pre-Closing Tax Returns and (b) any Taxes due by the
      Company with respect to such Pre-Closing Tax Returns (to the extent such
      amounts have not been adjusted for pursuant to Section
  3.3).

- 12 - 

	 	(b) 	
      In the event the Company receives any Tax Refund in
      respect of the Pre- Closing Tax Returns, the Purchaser shall forthwith
      cause the Company to remit the full amount of such Tax Refund to the
      Vendor .

	 	 	 
	 	(c) 	
      The Purchaser shall permit the Company to file any
      amended Tax Return of the Company (or otherwise change such Tax Returns)
      or make any election or amended election with respect to taxable periods
      or portions thereof ending on or before the Closing Date without the prior
      consent of the Vendors, such consent not to be unreasonably
    withheld.

	 	 	 
	 	(d) 	
      Vendors and Purchaser will co -operate fully and assist
      each other and make available to each other in a timely fashion all data
      and other information as may reasonably be required for the preparation
      and filing of all Tax Returns of the Company and the Vendors and Purchaser
      will preserve that data and other information until the expiration of any
      applicable limitation period for maintaining books and records under any
      applicable Law with respect to such Tax
Returns.

	3.6 	
      Rights Cumulative

The rights contained in this Article III are cumulative and are
in addition to every other right contained in this Agreement. 

ARTICLE IV 
REPRESENTATIONS AND WARRANTIES OF THE
VENDORS 

The Vendors makes the following representations and warranties
and acknowledges that the Purchaser is relying on such representations and
warranties in entering into this Agreement and in purchasing the Purchased
Shares and the Adjacent Lands from the Vendors: 

	4.1 	
      Corporate Organization, Standing and
      Qualifications

The Company is a corporation duly incorporated, validly
existing, organized and in good standing under the laws of Ontario and has not
been dissolved. The Company has all requisite corporate power, authority and
capacity to own, lease and operate its property and assets and to carry on the
Business. 

Complete and correct copies of the articles of incorporation
and by-laws of the Company, including any and all amendments thereto, have been
delivered or made available to the Purchaser and such articles and by-laws, as
so amended, are in full force and effect, and no amendments are being made to
same. The name of each director and officer of the Company on the date hereof
and the positions held by each are set forth in Schedule 4.1. 

	4.2 	
      Authorization

The Vendors have the capacity, authority and power to execute,
deliver and perform this Agreement and all of the agreements contemplated hereby
to which they are party and to consummate the transactions contemplated hereby
(including, for greater certainty, conveyance of the Additional Lands if the
Option is duly exercised). This Agreement and all of the agreements contemplated
hereby to which the Vendors are party have been duly and validly authorized,
executed and delivered by the Vendors, and each such agreement constitutes a
legal, valid and binding obligation of the Vendors, enforceable against them in
accordance with its terms, except (a) as such enforceability may be limited by
bankruptcy, insolvency, moratorium, reorganization and similar Laws affecting
creditors' rights generally,
and (b) as such enforceability may be limited by general principles of equity,
regardless of whether asserted in a proceeding in equity or law.

- 13 - 

	4.3 	
      Capitalization

The authorized and issued share capital of the Company as of
the date of this Agreement and as of the Closing Time is as set out in Schedule
4.3. All of the issued and outstanding shares in the capital of the Company have
been duly and validly issued and are outstanding as fully paid and
non-assessable and are not, and at the Closing Time will not be, subject to any
pre-emptive rights. There are no shares reserved for issuance by the Company.
Other than as disclosed in Schedule 4.3 or as contemplated by this Agreement,
the Company does not have any (a) issued or outstanding (i) shares in its
capital, or (ii) securities convertible into, or exchangeable or exercisable
for, any options, warrants, calls, puts, subscriptions or other rights, (b)
agreements or Contractual Obligations or contractual commitments (whether
written or oral) relating to any of the issued and outstanding shares in its
capital or obligating it or the Vendors to issue or sell any of the shares in
its capital or any such securities, options, warrants, calls, puts,
subscriptions or other rights, (c) Encumbrances relating to any of the shares in
its capital, (d) rights or Contractual Obligations or contractual commitments
(whether written or oral) to give funds to or make any investment in any other
Person, or (e) rights or Contractual Obligations or contractual commitments
(whether written or oral) that give any Person other than the Company or the
Vendors any right to reserve or exercise any benefits or rights similar to any
rights enjoyed or accruing to the holder of the shares in its capital,
including, without limitation, any right to participate in its equity or income
or to participate in or direct the election of any of its board of directors or
officers or the manner in which any shares in its capital may be listed or in
which the Business is conducted. The Vendors have good and valid legal and
beneficial title to all of the issued and outstanding shares in the capital of
the Company, free and clear of any Encumbrances. None of the issued and
outstanding shares in the capital of the Company is subject to the terms of any
shareholders’ or similar agreement. The Vendors have and at the Closing Time
will have the exclusive right to dispose of all of the issued and outstanding
shares in the capital of the Company as provided in this Agreement and, upon
delivery and payment for all of the issued and outstanding shares in the capital
of the Company as herein provided, the Vendors will convey good and valid title
thereto, free and clear of all Encumbrances. 

	4.4 	
      Consents and Approvals; No
  Violations

	 	(a) 	
      Except as identified and described in Schedule 4.4(a) or
      4.4(b), neither the execution and delivery of this Agreement or any other
      agreement or document to which the Vendors are or will become a party as
      contemplated by this Agreement, the consummation of the transactions
      contemplated herein or therein nor compliance by the Vendors with any
      provisions hereof or thereof (including, without limitation, the exercise
      of the Option) will (a) conflict with or result (with or without notice,
      lapse of time or both) in a breach of any of the terms, conditions or
      provisions of the articles, by-laws or other constating documents
  of the Company, (b) conflict with or result in a breach or a
      default (or give rise to any right of termination, cancellation,
      acceleration, modification or other right) under any of the provisions of
      any note, bond, mortgage, indenture, franchise, permit, Contract or other
      instrument or obligation to which the Vendors or the Company are a party,
      or by which the Vendors or the Company are bound or affected, except for
      such conflict, breach or default as to which requisite waivers or consents
      shall have been obtained by the Vendors before Closing (which waivers or
      consents are identified and described in Schedule 4.4), (c) to the
      knowledge of the Vendors, violate any Laws applicable to the Vendors or
      the Company or any of their respective properties or assets, or (d) result
      in the creation or imposition of any Encumbrance upon any of the Purchased
      Shares, the Adjacent Lands or any other property or assets used or held by
      the Company.

- 14 - 

	 	(b) 	
      Except as identified and described in Schedule 4.4(b), to
      the Vendors' knowledge, no consent or approval by, or any
      notification or filing with, any Governmental Authority or any other
      Person is required in connection with the execution, delivery or
      performance by the Vendors of this Agreement or any other agreement or
      document to which the Vendors or the Company is or will be a
  party.

	 	 	 
	 	(c) 	
      Except as identified and described in Schedule 4.4(c),
      there are no actions, suits or proceeding commenced or in progress or, to
      the knowledge of the Vendors, pending or threatened against or relating to
      the Vendors or the Company or any of their respective property or assets
      that might impair the consummation, or the benefits to the Purchaser, of
      the transactions contemplated by this Agreement or in any other agreement
      or document to which the Vendors or the Company are or will be a party in
      connection with this Agreement .

	4.5 	
      Books and Records; Bank
Accounts

	 	(a) 	
      All of the Books and Records have been delivered or made
      available to the Purchaser. The financial Books and Records accurately
      reflect all financial transactions of the Company. The minute books of the
      Company include complete and accurate minutes of all meetings of the
      directors and shareholders of the Company held to date and resolutions
      passed by the directors and shareholders on consent since the date of
      incorporation. The share certificate book, register of shareholders,
      register of transfers and register of directors of the Company are
      complete and accurate.

	4.6 	
      Absence of Undisclosed
  Liabilities

The Company does not have, and as a result of the transactions
contemplated by this Agreement will not have, any indebtedness, liability, or
obligation of any nature (whether known or unknown, absolute, accrued, fixed,
contingent, liquidated, unliquidated, unasserted or otherwise and whether due or
to become due), except for (a) liabilities and obligations incurred in the
ordinary course of business or adjusted for pursuant to Section 3.3; (b)
liabilities and obligations disclosed in Schedule 4.6; or (c) liabilities and
obligations which are otherwise disclosed in this Agreement. The parties agree
that this representation and warranty does not apply to liabilities or obligations which are the subject matter of or addressed or
qualified by any specific representation and warranty in this Article IV.

- 15 - 

	4.7 	
      Real Property

	 	 	 
		(a) 	
      The only real property owned by the Company is the
      Company Lands. The Company is not the lessee of any real
  property.

	 	 	 
		(b) 	
      The Adjacent Lands and Additional Lands are not used in
      connection with the Business. The Vendors are not the lessee of any real
      property used or required in connection with the operation of the
      Business.

	 	 	 
		(c) 	
      The Company and the Vendors own the Owned Real Properties
      and the Additional Lands respectively free and clear of all Encumbrances
      other than Permitted Encumbrances and have the exclusive right to possess,
      use and occupy (subject to the Company Lease), and the Owned Real Property
      and Additional Lands, respectively. Beneficial title in and for the Owned
      Real Property and Additional Lands has not been divided from legal
      title.

	 	 	 
		(d) 	
      The Company and the Vendors have not granted to any
      Person any right of first refusal, right of first opportunity, option or
      similar rights to purchase or lease any of the Owned Real Property or
      Additional Lands, or any interest therein or any part thereof. The Company
      and the Vendors have not leased any portion of the Owned Real Property or
      Additional Lands to any Person other than the Company Lease.

	 	 	 
		(e) 	
      To the knowledge of the Vendors, the existing uses of the
      Owned Real Property and the Additional Lands comply in all material
      respects with all applicable Laws.

	 	 	 
		(f) 	
      Except as described in Schedule 4.7, to the knowledge of the Vendors, the Owned Real
      Property is serviced by all private and public utility services that are
      necessary for the operations of the Business thereon and, to the knowledge
      of the Vendors, there are no facts, circumstances or conditions which are
      reasonably likely to result in the termination of such connections.
      Neither the Vendors nor the Company have received notice from any third
      party of any actual or alleged non- compliance with applicable
  Laws.

	 	 	 
		(g) 	
      Except as described in Schedule 4.4(c), there are no actions, suits or proceedings
      pending or, to the knowledge of the Vendors, threatened against or
      otherwise affecting the Owned Real Property or Additional Lands, or the
      current use of the Owned Real Property, which could adversely affect: (i)
      the validity of this Agreement or the transactions contemplated herein;
      (ii) the title to or value of the Owned Real Property or Additional Lands;
      (iii) the conveyance of the Owned Real Property and Additional Lands to
      the Purchaser; (iv) the right of the Purchaser from and after the Closing
      Date to own and occupy the Owned Real Property and (following due exercise
      of the Option) the Additional Lands and to carry on the use currently used thereon; or (v) any
      other action taken or to be taken in connection with this Agreement.

- 16 - 

		(h) 	
      There are no pending or, to the knowledge of the Vendors,
      threatened expropriation or condemnation proceedings relating to any of
      the Owned Real Property and/or the Additional Lands.

	 	 	 
		(i) 	
      Except as described in Schedule 4.7, to the knowledge of
      the Vendors, there are no pending or proposed assessments, capital charges
      or levies assessed or to be assessed against any of the Owned Real
      Property and/or the Additional Lands by a Governmental
Authority.

	 	 	 
		(j) 	
      To the knowledge of the Vendors, there are no outstanding
      judgments, writs of execution, seizures, injunctions or directives with
      respect to the Owned Real Property and/or the Additional Lands.

	 	 	 
		(k) 	
      Neither the Company nor either of the Vendors has
      received notice of any Claims for construction liens with respect to work
      or services performed or materials supplied in connection with any of the
      Owned Real Property and/or the Additional Lands.

	 	 	 
		(l) 	
      Any and all material documentation in respect of the
      Owned Real Property and Additional Lands (excluding any documents
      registered against title) in the possession of the Vendors or Company has
      been delivered to the Purchaser. Neither the Vendors or the Company are in
      receipt of any surveys for the Owned Real Property or Additional
    Lands.

	 	 	 
		(m) 	
      Neither the Company nor either of the Vendors has
      received or issued any notice of default under any of the Permitted
      Encumbrances.

	 	 	 
		(n) 	
      Neither the Company nor the Vendors has made application
      for a re-zoning of any of the Owned Real Property and/or the Additional
      Lands which remains pending or has any knowledge of any proposed or
      pending change to any zoning Laws affecting the Owned Real Property and/or
      the Additional Lands.

	 	 	 
		(o) 	
      Each of the Vendors acknowledge and confirm that none of
      the Owned Real Property or Additional Lands is ordinarily occupied by the
      Vendors, or either of them, as their family residence for purposes of the
      matrimonial home provisions of the Family Law Act
  (Ontario).

	 	 	 
	4.8 	
      Environmental Matters-Waste Collections and Landfill
      Operations

	 	 	 
		(a) 	
      Schedule 4.8 contains a list of all Environmental Permits
      relating to the waste collections and landfill operations of the Company.
      To the knowledge of the Vendors, all such Environmental Permits are valid
      and in good standing, are complete and accurate in all material respects.
      Except as described in Schedule 4.8, to the knowledge of the Vendors,
      there has been no material violation of any such Environmental Permits,
      program approvals or other approvals and to the knowledge of the Vendors,
      no proceeding is pending, or threatened to
revoke, modify, cancel, suspend or limit any such Environmental
      Permits, program approvals or other approvals or to add any conditions of
      compliance. To the knowledge of the Vendors, the Company is in possession
      of all Environmental Permits which are required of it under all applicable
      Laws.

- 17 - 

	 	(b) 	
      Except as described in Schedule 4.8, the Business is
      being carried on in compliance with all Environmental Laws. To the
      knowledge of the Vendors, except as disclosed in Schedule 4.8, all operations of the Company (and its
      predecessors in title) conducted on the Owned Real Property (excluding the
      property leased under the Company Lease), comply and have complied in
      compliance with all Environmental Laws. The Company has filed all material
      reports and other information and obtained all Environmental Permits to
      enable the Business as now conducted to be carried on in compliance with
      Environmental Laws. To the knowledge of the Vendors, there are no facts
      known to the Vendors that would be likely to give rise to material non-
      compliance by the Company with any Environmental Laws.

	 	 	 
	 	(c) 	
      Except as described in Schedule 4.8, to the knowledge of
      the Vendors, no remedial orders have been issued to the Vendors or the
      Company in respect of the Business, the Owned Real Property (excluding the
      property leased under the Company Lease), the Adjacent Lands and/or the
      Additional Lands, and to the knowledge of the Vendors, to any other Person
      in respect of the Owned Real Property (excluding the property under the
      Company Lease), the Adjacent Lands and/or the Additional Lands. To the
      knowledge of the Vendors, no fact or circumstance exists which would
      likely give rise to such a Remedial Order being issued in respect of the
      Business.

	 	 	 
	 	(d) 	
      Except as described in Schedule 4.8, neither the Vendors
      nor the Company has received any written or oral notice of any alleged
      violation of any Environmental Laws or other damage to the environment
      emanating from or occurring on the Owned Real Property (excluding the
      property under the Company Lease) for the Business and to the knowledge of
      the Vendors, no fact or circumstances exists which would likely give rise
      to such a Claim.

	 	 	 
	 	(e) 	
      To the knowledge of the Vendors, there are no active or
      abandoned above ground or underground storage tanks at, on, in or under
      the Owned Real Property (excluding the property under the Company Lease),
      relating to the Business. To the knowledge of the Vendors, the Owned Real
      Property (excluding the property under the Company Lease), has not been
      used to generate, manufacture, refine, treat, transport, store, handle,
      dispose, transfer, use, produce or process Hazardous Substances, except in
      compliance with all applicable Environmental Laws. To the knowledge of the
      Vendors, none of the Owned Real Property (excluding the property under the
      Company Lease), has been used for or been designated as a waste disposal
      site. To the knowledge of the Vendors, no polychlorinated biphenyls
      ("PCBs") or equipment containing PCBs; lead or lead-based paint;
      asbestos or asbestos-containing materials; or toxic mould, mildew or fungi
      are present at any of the Owned Real Property (excluding the property
      under the Company Lease).

- 18 - 

	 	(f) 	
      The Vendors have provided the Purchaser with a copy of
      all material documents in its possession concerning any environmental or
      health and safety matter relevant to the Company and the Business
      including documentation regarding waste disposal, reports, correspondence,
      Environmental Permits related to environmental or health and safety
      matters issued by any Governmental Authority, and analyses and monitoring
      data for soil, groundwater and surface water and all material third party
      reports pertaining to any environmental assessments or audits that were
      obtained by, or are in the possession or control of, the Company or the
      Vendors (collectively, the "Environmental Reports").

	 	 	 
	 	(g) 	
      To the knowledge of the Vendors, except as described in
      Schedule 4.8, the consummation of the transactions contemplated by this
      Agreement will not require the Purchaser or the Company to obtain consent,
      approval or authorization from any Governmental Authority in order to
      enable the Company to hold all Environmental Permits relating to the
      Business and to remain in compliance in all respects with the terms and
      conditions of all Environmental Permits of the Company and the Business
      and all Environmental Laws and all to which the Company and the Business
      are subject.

	4.9 	
      Title

Except as set out in Schedule 4.9, the Company is the sole
legal and beneficial owner of all of its personal property assets and interests
in personal property assets, which, for the purposes of this Section 4.9, such
assets consist solely of the Equipment, the Company Lease and the Municipal
Contracts, with good and valid title free and clear of all Encumbrances except
Permitted Encumbrances. To the knowledge of the Vendors, there is no basis upon
which any of the foregoing assets might become subject to any Encumbrances,
except for Permitted Encumbrances. 

	4.10 	
      Contracts

The only Contracts to which the Company is a party are the
Company Lease and the Municipal Contracts. Subject to Schedule 2, to the
knowledge of the Vendors, each of such Contracts constitutes a valid and binding
obligation of the parties thereto, enforceable in accordance with its terms.
Subject to Schedule 2, to the knowledge of the Vendors, none of the parties to
any of the Contracts is in material breach of its obligations thereunder and no
act or event has occurred which, with notice or lapse of time or both, would
constitute a material breach of any of the Contracts. Subject to Schedule 2, to
the knowledge of the Vendors, each of the Contracts is in full force and effect
and constitutes a legal, valid and binding obligation of the Company and the
other parties thereto, enforceable in accordance with its terms, and the Company
is entitled to all of the benefits, rights and privileges under each such
Contract. Neither the Company, the Vendors nor their counsel has received notice
that any customer, supplier or other Person has breached, intends to breach or
intends to discontinue any Contract to which the Company is a party. 

- 19 - 

	4.11 	
      Vehicles, Equipment and Office
  Equipment

Schedule 4.11 contains a complete and accurate list of all of
the Equipment owned by the Company. To the knowledge of the Vendors, all of such
Equipment has undergone scheduled maintenance in accordance with manufacturer’s
recommendations and are in good condition, repair and (where applicable) proper
working order, having regard to their age and reasonable wear and tear. 

	4.12 	
      Location of Assets

The Equipment is situated at the Owned Real Property (excluding
the property under the Company Lease). 

	4.13 	
      Taxes

	 	 	 
		(a) 	
      The Company has duly filed on a timely basis with the
      appropriate Governmental Authority all Tax Returns required to be filed
      for taxable periods ending on or before the Closing. To the knowledge of
      the Vendors, all such Tax Returns are true, correct and complete in all
      material respects. To the knowledge of the Vendors, no such Tax Return
      contains any misstatement or omits any statement that should have been
      included therein. No such Tax Return has been amended.

	 	 	 
		(b) 	
      To the knowledge of the Vendors, the Tax liability of the
      Company for previous taxation periods is as indicated in its Tax Returns.
      To the knowledge of the Vendors, all Taxes shown as due on such Tax
      Returns or otherwise due or claimed to be due by any Governmental
      Authority have been paid in full. To the knowledge of the Vendors, all
      instalments, assessments and reassessments and all other Taxes which are
      due and payable, have been paid in full. To the knowledge of the Vendors,
      reserves and provisions for Taxes accrued but not yet due on or before the
      Closing Date are reflected in the Financial Statements of the Company and
      are adequate as of the date of the Financial Statements and are in
      accordance with GAAP. To the knowledge of the Vendors, no deficiencies for
      Taxes have been proposed, asserted or assessed against the Company that
      are not adequately reserved against. To the knowledge of the Vendors,
      since December 31, 2017 no material Tax liability of the Company has been
      assessed, proposed to be assessed, incurred or accrued other than in the
      ordinary course of business.

	 	 	 
		(c) 	
      The Company has made available to the Purchaser complete
      and correct copies of all Tax Returns of the Company that have been filed
      as of the date hereof (except Tax Returns for periods in respect of which
      the applicable statutory period of limitations has expired) and copies of
      all its material correspondence with Governmental Authorities related to
      Taxes.

	 	 	 
		(d) 	
      No unresolved assessments, reassessments, audits, Claims,
      actions, suits, proceedings or investigations exist or have been initiated
      with regard to any Taxes or Tax Returns of the Company. To the knowledge
      of the Vendors, no assessment, reassessment, audit or investigation by any
      Governmental Authority is underway, threatened or imminent with respect to
      Taxes for which the Company may be liable, in whole or part.

- 20 - 

	 	(e) 	
      The Company has not requested or entered into any
      agreement or other arrangement or executed any waiver providing for any
      extension of time within which (i) to file any Tax Return in respect of
      any Taxes for which the Company is or may be liable; (ii) to file any
      elections, designations or similar filings relating to Taxes for which the
      Company is or may be liable; (iii) the Company is required to pay or remit
      any Taxes or amounts on account of Taxes; or (iv) any Governmental
      Authority may assess or collect Taxes for which the Company is or may be
      liable.

	 	 	 
	 	(f) 	
      To the knowledge of the Vendors, all liabilities of the
      Company in respect of Taxes have been assessed by the relevant
      Governmental Authority and notices of assessment have been issued for all
      taxation periods ending on or before December 31, 2017.

	 	 	 
	 	(g) 	
      To the knowledge of the Vendors, the Company has duly and
      on a timely basis withheld from any amount paid or credited by it to or
      for the account or benefit of any Person the amount of all Taxes and other
      deductions required by any Law to be withheld from any such amount and has
      duly and on a timely basis remitted the same to the appropriate
      Governmental Authority.

	 	 	 
	 	(h) 	
      To the knowledge of the Vendors, no amount in respect of
      any outlay or expense that is deductible in computing the income of the
      Company for the purposes of the Tax Act has been owing by the Company for
      longer than twelve (12) months to a Person with whom it was not dealing at
      arm’s length (for the purposes of the Tax Act) at the time the outlay or
      expense was made or incurred.

	 	 	 
	 	(i) 	
      The Company has not claimed a deduction with respect to
      an outlay or expense that may be considered unreasonable under the
      circumstances.

	 	 	 
	 	(j) 	
      Except pursuant to this Agreement or as specifically
      disclosed in writing to the Purchaser, for purposes of the Tax Act or any
      other Law, there has never been a change or acquisition of control of the
      Company.

	 	 	 
	 	(k) 	
      Except as described in Schedule 4.12, the Company has
      not, directly or indirectly, transferred property to or supplied services
      to, or acquired property or services from, any Person with whom it was not
      dealing at arm's
      length (for the purposes of the Tax Act) for consideration other than
      consideration equal to the fair market value of the property or services
      at the time of the transfer, supply or acquisition of such property or
      services.

	 	 	 
	 	(l) 	
      To the knowledge of the Vendors, for all material
      transactions between the Company and any non- resident Person with whom
      the Company was not dealing at arm’s length during a taxation year
      commencing after 1998 and ending on or before the Closing Date, the
      Company has made or obtained records or documents that meet the requirements of paragraphs
      247(4)(a) to (c) of the Tax Act.

- 21 - 

	 	(m) 	
      The Company has not entered into any advance pricing
      agreement with any Governmental Authority.

	 	 	 
	 	(n) 	
      To the knowledge of the Vendors, there are no
      circumstances which exist and would result in, or which have existed and
      resulted in, the application of any of sections 78, 80, 80.01, 80.02,
      80.03 or 80.04 of the Tax Act, or any equivalent provision of the taxation
      legislation of any province or any other jurisdiction, to the Company at
      any time up to and including the Closing Date in respect of any
      transaction entered into.

	 	 	 
	 	(o) 	
      To the knowledge of the Vendors, the Company is not party
      to, bound by or obligated under any tax sharing agreement, tax
      indemnification agreement or similar contract or arrangement. To the
      knowledge of the Vendors, the Company has no liability for the Taxes of
      any other Person.

	 	 	 
	 	(p) 	
      To the knowledge of the Vendors, all Taxes incurred or
      losses sustained by the Company prior to the Closing Date have arisen in
      the ordinary course of business, except for Taxes or losses, if any,
      arising from the transactions contemplated by this Agreement.

	 	 	 
	 	(q) 	
      Notices of determination have neither been requested by
      nor issued to the Company.

	 	 	 
	 	(r) 	
      The Company has not received any notice or inquiry from
      any Governmental Authority in any jurisdiction where the Company does not
      currently file Tax Returns to the effect that it is or may be subject to
      taxation in such jurisdiction. The Company is not required to file any Tax
      Returns in any jurisdiction outside Canada.

	 	 	 
	 	(s) 	
      No power of attorney with respect to any Taxes has been
      executed or filed with any Governmental Authority by or on behalf of the
      Company and is currently in effect.

	 	 	 
	 	(t) 	
      To the knowledge of the Vendors, the Company will not be
      required to include in any taxable period ending after the Closing Date
      any taxable income attributable to income that accrued (or cash that was
      received), but was not recognized, in any taxable period ending on or
      before the Closing Date as a result of a reserve, deduction, prepaid
      amount, advance payment, election, tax credit, the cash method of
      accounting, the instalment method of accounting, a change in the method of
      accounting, an agreement with any Governmental Authority, any provision of
      local, provincial, territorial, federal or foreign tax law, or for any
      other reason.

	 	 	 
	 	(u) 	
      To the knowledge of the Vendors, the Company does not
      have any contractual obligation to pay the amount of any tax benefits or
      Tax Refunds (or an amount determined by reference thereby) realized or received by
      it to any former shareholder(s) or other Person(s).

- 22 - 

	 	(v) 	
      To the knowledge of the Vendors, the Company has not
      realized or received any Tax Refund to which it was or is not
    entitled.

	 	 	 
	 	(w) 	
      To the knowledge of the Vendors, the Company has
      maintained and continues to maintain at its place of business in Canada
      (or the United States, as applicable) all books and records required to be
      maintained under the Tax Act, or any comparable Law of any province or
      territory of Canada or any comparable Law of the United States (including
      any municipality or state thereof), including Laws relating to sales or
      use Taxes.

	4.14 	
      Residence

The Company is not a non-resident of Canada for the purposes of
the Tax Act. Neither of the Vendors is not a non-resident of Canada for the
purposes of the Tax Act. 

	4.15 	
      Employment Matters

	 	 	 
		(a) 	
      Schedule 4.15 contains a complete and accurate list of
      all current employees of the Company, their respective positions, dates of
      hire with the Company or any predecessors of the Company, current
      salaries, benefits and other remunerations. Except as disclosed in
      Schedule 4.15, the Company is not a party to any
      agreements with past or present employees, agents or independent
      contractors in connection with the Business. Full and complete copies of
      such employment contracts have been provided to the Purchaser. Except for
      those contracts provided, there are no written contracts of employment
      entered into with any Employees or any oral contracts of employment which
      are not terminable on the giving of reasonable notice in accordance with
      applicable Laws.

	 	 	 
		(b) 	
      The Company has not terminated, laid off or dismissed
      (whether such dismissal is actual or constructive) any of its employees in
      the four weeks preceding Closing. Except as described in Schedule 4.15,
      all liabilities accrued and due prior to the Closing Date in respect of
      Employees have or shall have been paid to the Closing Date or adjusted
      pursuant to Section 3.3, including premium contributions, remittance and
      assessments for unemployment insurance, employer health tax, Canada
      Pension Plan, income tax, workers' compensation and any other employment
      related legislation, accrued wages, Taxes, salaries, commissions and
      employee benefit plan payments. To the knowledge of the Vendors, there are
      no outstanding, pending, threatened or anticipated assessments, actions,
      causes of action, Claims, complaints, demands, orders, prosecutions or
      suits against the Company, its directors, officers or agents pursuant to
      or under any applicable Laws, including, but not limited to Canada Pension
      Plan, unemployment insurance, income tax, employer health tax, employment
      standards, labour relations, occupational health and safety, human rights,
      workers' compensation and pay
      equity. The Company has no obligation to re-instate any
  Employees.

- 23 - 

	4.16 	
      Compliance with Laws; Governmental
      Authorizations

	 	 	 
		(a) 	
      Except as described in Schedule 4.4, the Company has (i)
      to the knowledge of the Vendors, conducted the Business in compliance with
      all applicable Laws in each jurisdiction in which the Business is carried
      on; and (ii) not received any notice that any material violation of any
      Law is being or may be alleged.

	 	 	 
		(b) 	
      The (i) Company is duly licensed, registered or qualified
      and duly possesses all material Governmental Authorizations required or
      necessary to carry on the Business as now conducted in compliance with all
      applicable laws, and all such Governmental Authorizations are described in
      Schedule 4.15; and (ii) to the knowledge of the Vendors, all of such
      Governmental Authorizations are valid and subsisting and in good standing
      and no event has occurred or condition or state of facts exists which
      constitutes or, after the giving of notice or the passage of time or both,
      would constitute a breach or default under any of the Governmental
      Authorizations, or which permits or, after the giving of notice or the
      passage of time or both, would permit revocation, termination or
      modification of any of the Governmental Authorizations.

	 	 	 
	4.17 	
      Litigation

Except as disclosed in Schedule 4.17, there is no Claim,
arbitration or legal, administrative or other proceeding or investigation by any
Governmental Authority, including appeals and applications for review pending
or, to the best of the Vendors' knowledge, threatened against the Company or
relating to the Business. Except as disclosed in Schedule 4.17, to the Vendors'
knowledge, there are no facts known to the Vendors or the Company which are
likely to give rise to any such Claims. Except as disclosed in Schedule 4.17,
there is not now, and within the past five years there has not been, outstanding
against the Company any judgment, execution, order, injunction, decree or rule
of any court, administrative agency, Governmental Authority or arbitrator which
affects in any material way the Company or the Business. Except as disclosed in
Schedule 4.17, the Company is not the plaintiff, complainant, defendant or
intervener in any action, suit, proceeding, grievance, arbitration or
alternative dispute resolution proceeding. 

	4.18 	
      Truth and Accuracy of
Schedules

All of the information disclosed in each of the Schedules
attached to this Agreement is true and correct. 

ARTICLE V 
REPRESENTATIONS AND WARRANTIES OF THE
PURCHASER 

The Purchaser makes the following representations and
warranties and acknowledges that the Vendors are relying on such representations
and warranties in entering into this Agreement and in selling the Purchased
Shares to the Purchaser: 

	5.1 	
      Corporate Organization, Standing and
      Qualifications

The Purchaser is a corporation duly incorporated, validly
existing, organized and in good standing under the laws of Ontario and has not
been dissolved. The Purchaser has all requisite corporate power, authority and capacity to purchase the
Purchased Shares and otherwise perform its obligations pursuant to this
Agreement. 

- 24 - 

	5.2 	
      Authorization

The Purchaser has the capacity, authority and power to execute,
deliver and perform this Agreement and all of the agreements contemplated hereby
to which it is a party and to consummate the transactions contemplated hereby
and thereby. This Agreement and all of the agreements contemplated hereby to
which the Purchaser is a party have been duly and validly authorized, executed
and delivered by the Purchaser, and each such agreement constitutes a legal,
valid and binding obligation of the Purchaser, enforceable against it in
accordance with its terms, except (a) as such enforceability may be limited by
bankruptcy, insolvency, moratorium, reorganization and similar Laws affecting
creditors’ rights generally, and (ii) as such enforceability may be limited by
general principles of equity, regardless of whether asserted in a proceeding in
equity or law. 

	5.3 	
      Consents and Approvals; No
  Violations

Neither the execution and delivery of this Agreement or any
other agreement or document to which the Purchaser is or will become a party as
contemplated by this Agreement, the consummation of the transactions
contemplated herein or therein nor compliance by the Purchaser with any
provisions hereof or thereof will (a) conflict with or result (with or without
notice, lapse of time or both) in a breach of any of the terms, conditions or
provisions of the articles, by-laws or other constating documents of the
Purchaser, (b) conflict with or result in a breach or a default under any of the
provisions of any note, bond, lease, mortgage, indenture, licence, franchise,
permit, agreement, Contract or other instrument or obligation to which the
Purchaser is a party, or by which the Purchaser is bound or affected, or (c)
violate any Laws applicable to the Purchaser or any of its properties or assets.
No consent or approval by, or any notification or filing with, any Governmental
Authority or any other Person is required in connection with the execution,
delivery or performance by the Purchaser of this Agreement or any other
agreement or document to which the Purchaser is or will be a party.

	5.4 	
      Knowledge of Purchaser

The Purchaser acknowledges and agrees that as of the Closing
Time, it is not aware of any facts that would result in the failure of any
representation or warranty made by the Vendors in this Agreement (whether or not
contained in Article IV) or in any Schedule, Exhibit, document or certificate
delivered pursuant to this Agreement to be true and correct in all respects as
of the Closing Date. 

	5.5 	
      No Other Representations and
  Warranties

Except for the express representations and warranties contained
in Article IV and Article V of this Agreement, no party to this Agreement, nor
any other Person on such party's behalf, has made or makes any express
or implied representation or warranty, either oral or written, whether arising
by Law or otherwise. 

- 25 - 

ARTICLE VI 
SURVIVAL 

	6.1 	
      Survival of Vendors’ Representations and
      Warranties

The representations and warranties of the Vendors contained in
this Agreement or any document or certificate given pursuant to this Agreement
shall survive the Closing for the benefit of the Purchaser as follows:

	 	(a) 	
      as to the representations and warranties contained in
      Sections 4.1, 4.2, 4.3 and 4.9 (the " Fundamental
      Representations"), indefinitely;

	 	 	 
	 	(b) 	
      as to Tax matters, until 90 days after the expiration of
      all periods allowed for objecting to and appealing the determination of
      any proceedings relating to any assessment or reassessment of the
      Purchaser, the Company or the Vendors, as the case may be, by any
      Governmental Authority in respect of any taxation period ending on or
      prior to the Closing or in which the Closing occurs unless a bona fide
      notice of a Claim shall have been made in writing before the expiry of
      that period, in which case the representation and warranty to which such
      notice applies shall survive in respect of that Claim until the final
      determination or settlement of that Claim; and

	 	 	 
	 	(c) 	
      as to all other matters, for a period of one (1) year,
      unless a bona fide notice of a Claim shall have been given in
      writing before the expiry of that period, in which case the representation
      and warranty to which such notice applies shall survive in respect of that
      Claim until the final determination or settlement of that
  Claim.

	6.2 	
      Survival of Purchaser’s Representations and
      Warranties

The representations and warranties of the Purchaser contained
in this Agreement or any document or certificate given pursuant to this
Agreement shall survive the Closing for the benefit of the Vendors, in the case
of Sections 5.1 and 5.2, indefinitely, and for the balance for a period of
twelve (12) months unless a bona fide notice of a Claim for indemnity
pursuant to Section 6.3 shall have been given in writing before the expiry of
that period, in which case the representation and warranty to which such notice
applies shall survive in respect of that Claim until the final determination or
settlement of that Claim. 

	6.3 	
      Indemnification

	 	 	 
		(a) 	
      Subject to the limitations set out in this Section 6.3,
      the Vendors jointly and severally indemnify and holds the Purchaser and
      each of its officers, directors, employees, agents, successors and
      assigns, harmless from and against any Claim, demand, action, cause of
      action, damage, loss, liability, cost or expense (including legal fees),
      but excluding any liability for indirect or consequential damages or for
      business loss, loss of profit, economic loss or punitive damages
      (collectively, "Losses ") which may be made or brought against the
      Purchaser or which the Purchaser may suffer or incur, in respect of, as a
      result of, or arising out of the failure of any representation or warranty
      made by the Vendors in this Agreement (whether or not contained in Article IV) or in
      any Schedule, Exhibit, document or certificate delivered pursuant to this
      Agreement to be true and correct in all respects as of the Closing Date
      (without giving effect to any "materiality," "material adverse effect" or
      similar qualification);

- 26 - 

	 	(b) 	
      The Purchaser indemnifies and holds the Vendors and each
      of its shareholders, officers, directors, employees, agents, successors
      and assigns, harmless from and against any Losses which may be made or
      brought against the Vendors or which the Vendors may suffer or incur, in
      respect of, or arising out of :

	 	 	 	 
	 		(i) 	
      the failure of any representation or warranty made by the
      Purchaser in this Agreement or in any Schedule, Exhibit, document or
      certificate delivered pursuant to this Agreement to be true and correct in
      all respects as of the Closing Date; or

	 	 	 	 
	 		(ii) 	
      any claim or proceeding made at any time from and after
      the Closing Date in respect of the condition of the Owned Real Property or
      the Additional Lands, including any order or claim against the Vendors,
      whether arising because of the presence or alleged presence of Hazardous
      Substances or any actual or alleged violation of Environmental Laws,
      whether occurring prior to, on or after the Closing Date.

	 	 	 	 
	 	(c) 	
      The obligations to indemnify and hold harmless pursuant
      to Section 6.3 shall survive the consummation of the transactions
      contemplated by this Agreement for the time periods set out in Section
      6.1, except for Claims for indemnification asserted prior to the end of
      such periods, which Claims shall survive until final resolution
      thereof.

	 	 	 	 
	 	(d) 	
      No Person shall be entitled to indemnification of any
      Losses pursuant to Section 6.3 unless the aggregate amount of all Losses
      for which the Indemnified Party would otherwise be entitled to require
      payment from an Indemnifying Party under such sections exceeds $50,000, in
      which case, for clarity, the entitlement shall be to claim for the
      entirety of any such Losses (subject to the limitations set out elsewhere
      in this Article VI). No Person shall be entitled to indemnification
      pursuant to Section 6.3 for any individual or series of related Losses
      which do not exceed $50,000.

	 	 	 	 
	 	(e) 	
      The obligations to indemnify and hold harmless pursuant
      to Section 6.3(a), other than liabilities for breach of fundamental
      representations or representations relating to Tax matters (which shall be
      limited to the Purchase Price for the Purchased Shares, the Adjacent Lands
      or the Additional Lands, as applicable), shall be limited to an amount not
      exceeding 25% of the Purchase Price for (i) the Purchased Shares (in the
      case of representations and warranties relating to the Company or the
      Purchased Shares), (ii) the Adjacent Lands (in the case of representations
      and warranties relating to the Adjacent Lands), and (iii) the Additional
      Lands (in the case of representations and warranties relating to the
      Additional Lands), as applicable.

- 27 - 

		(f) 	
      Notwithstanding any limitation or threshold set forth in
      this Article VI, including for greater certainty Sections 6.3(d) and
      6.3(e), there shall be no limitation or threshold for liabilities for or
      in respect of any claim involving fraud or fraudulent misrepresentation
      occurring on or prior to the Closing Date.

	 	 	 	 
	6.4 	
      Procedure for Indemnification

	 	 	 	 
		(a) 	
      Within a reasonable period of time after the incurrence
      of any Losses by any Person entitled to indemnification pursuant to
      Section 6.3 hereof (an "Indemnified Party"), excluding any claim by
      a third Person described in Section 6.5, which might give rise to
      indemnification hereunder, the Indemnified Party shall deliver to the
      party from which indemnification is sought (the "Indemnifying
      Party") a certificate (the "Certificate"), which Certificate
      shall:

	 	 	 	 
			(i) 	
      state that the Indemnified Party has paid or properly
      accrued Losses or anticipates that it will incur liability for Losses for
      which such Indemnified Party is entitled to indemnification pursuant to
      this Agreement; and

	 	 	 	 
			(ii) 	
      specify in reasonable detail each individual item of Loss
      included in the amount so stated, the date such item was paid or properly
      accrued, the basis for any anticipated liability and the nature of the
      misrepresentation, breach of warranty, or claim to which each such item is
      related and the computation of the amount to which such Indemnified Party
      claims to be entitled hereunder.

	 	 	 	 
		(b) 	
      In the event that the Indemnifying Party shall object to
      the indemnification of an Indemnified Party in respect of any claim or
      claims specified in any Certificate, the Indemnifying Party shall, within
      twenty (20) days after receipt by the Indemnifying Party of such
      Certificate, deliver to the Indemnified Party a notice to such effect and
      the Indemnifying Party and the Indemnified Party shall, within the
      forty-five (45) day period beginning on the date of receipt by the
      Indemnified Party of such objection, attempt in good faith to agree upon
      the rights of the respective parties with respect to each of such Claims
      to which the Indemnifying Party shall have so objected. If the Indemnified
      Party and the Indemnifying Party shall succeed in reaching agreement on
      their respective rights with respect to any of such Claims, the
      Indemnified Party and the Indemnifying Party shall promptly prepare and
      sign a memorandum setting forth such agreement. Should the Indemnified
      Party and the Indemnifying Party be unable to agree as to any particular
      item or items or amount or amounts, then the party which receives a final
      judgment in any dispute shall be indemnified and held harmless for all
      reasonable attorney and consultant’s fees or expenses by the other
      party.

	 	 	 	 
		(c) 	
      Claims for losses specified in any Certificate to which
      an Indemnifying Party shall not object in writing within ten (10) days of
      receipt of such Certificate, Claims for losses the validity and amount of
      which have been the subject of arbitration as described in Section 6.4(b)
      and Claims for losses the validity and amount of which shall have been the
      subject of a final arbitration, or shall have been settled with the consent of the
Indemnifying Party, as described in Section 6.5 below,
are hereinafter referred to, collectively, as "Agreed Claims". Within ten
(10) days of the determination of the amount of any Agreed Claims, the
Indemnifying Party shall pay to the Indemnified Party an amount equal to the
Agreed Claim by wire transfer in immediately available funds to the bank account
or accounts designated by the Indemnified Party in a notice to the Indemnifying
Party not less than two (2) Business Days prior to such payment. 

- 28 - 

	6.5 	
      Third Party Claims

If a Claim by a third Person is made against any Indemnified
Party with respect to which the Indemnifying Party is obligated to provide
indemnification under this Agreement, and if such Indemnified Party intends to
seek indemnity with respect thereto under this Article VI, such Indemnified
Party shall promptly notify the Indemnifying Party of such Claim; provided that
the failure to so notify shall not relieve the Indemnifying Party of its
obligations hereunder, except to the extent that the Indemnifying Party is
actually and materially prejudiced thereby. Such notice by the Indemnified Party
shall describe the Claim in reasonable detail, shall include copies of all
documentation, written claims and correspondence relating thereto and shall
indicate the estimated amount of the Loss that has been or may be sustained by
the Indemnified Party. The Indemnifying Party shall have thirty (30) days after
receipt of such notice to assume the conduct and control, through counsel
reasonably acceptable to the Indemnified Party at the expense of the
Indemnifying Party, of the settlement or defence thereof; provided that: (a) the
Indemnified Party shall co-operate in good faith in such defence; (b) the
Indemnifying Party shall permit the Indemnified Party to participate in such
settlement or defence through counsel chosen by such Indemnified Party, provided
that the fees and expenses of such counsel shall be borne by such Indemnified
Party; and (c) the Indemnifying Party shall promptly be entitled to assume the
defence of such action only to the extent the Indemnifying Party acknowledges
its indemnity obligation and assumes and holds such Indemnified Party harmless
from and against the full amount of any loss resulting therefrom; and provided
further that the Indemnifying Party shall not be entitled to assume control of
such defence and shall pay the fees and expenses of counsel retained by the
Indemnified Party if: (i) the parties agree, reasonably and in good faith, that
such third Person Claim would give rise to Losses which are more than twice the
amount indemnifiable by such Indemnifying Party pursuant to this Article VI;
(ii) the Claim for indemnification relates to or arises in connection with any
criminal proceeding, action, indictment, allegation or investigation; (iii) the
Claim seeks an injunction or equitable relief against the Indemnified Party; or
(iv) upon petition by the Indemnified Party, the court decides that the
Indemnifying Party failed or is failing to vigorously prosecute or defend such
claim. Any Indemnified Party shall have the right to employ separate counsel in
any such action or Claim and to participate in the defence thereof, but the fees
and expenses of such counsel shall not be at the expense of the Indemnifying
Party unless (x) the Indemnifying Party shall have failed, within a reasonable
time after having been notified by the Indemnified Party of the existence of
such Claim as provided in the preceding sentence, to assume the defence of such
Claim, or (y) the employment of such counsel has been specifically authorized in
writing by the Indemnifying Party, which authorization shall not be unreasonably
withheld, conditioned or delayed. So long as the Indemnifying Party is
reasonably contesting any such Claim in good faith, the Indemnified Party shall
not pay or settle any such Claim. Notwithstanding the foregoing, the Indemnified
Party shall have the right to pay or settle any such Claim, provided that in such event it shall waive any right to indemnity
therefor by the Indemnifying Party for such Claim unless the Indemnifying Party
shall have consented to such payment or settlement. If the Indemnifying Party
does not notify the Indemnified Party within thirty (30) days after the receipt
of the Indemnified Party's notice of a Claim of indemnity hereunder
and all relevant back up materials in its possession that it elects to undertake
the defence thereof, the Indemnified Party shall have the right to contest,
settle or compromise the Claim but shall not thereby waive any right to
indemnity therefor pursuant to this Agreement. The Indemnifying Party shall not,
except with the consent of the Indemnified Party, enter into any settlement that
is not entirely indemnifiable by the Indemnifying Party pursuant to this Article
VI and does not include as an unconditional term thereof the giving by the
Person or Persons asserting such Claim to all Indemnified Parties of an
unconditional release from all liability with respect to such Claim or consent
to entry of any judgment. The Indemnifying Party and the Indemnified Party shall
cooperate with each other in all reasonable respects in connection with the
defence of any Claim, including making available records relating to such Claim
and furnishing, without expense to the Indemnifying Party and/or its counsel,
such employees of the Indemnified Party as may be reasonably necessary for the
preparation of the defence of any such Claim or for testimony as witnesses in
any proceeding relating to such Claim. 

- 29 - 

	6.6 	
      Additional Rules and
Procedures

The obligation of the parties to indemnify each other pursuant
to this Article VI shall also be subject to the following: 

	 	(a) 	
      if any third Person Claim is of a nature such that the
      Indemnified Party is required by applicable Law to make a payment to any
      Person with respect to such third Person Claim before the completion of
      settlement negotiations or related legal proceedings, the Indemnified
      Party may make such payment and the Indemnifying Party shall, forthwith
      after demand by the Indemnified Party, reimburse the Indemnified Party for
      any such payment. If the amount of any liability under the third Person
      Claim in respect of which such a payment was made, as finally determined,
      is less than the amount which was paid by the Indemnifying Party to the
      Indemnified Party, the Indemnified Party shall, forthwith after receipt of
      the difference from such third Person, pay such difference to the
      Indemnifying Party; and

	 	 	 
	 	(b) 	
      the Indemnifying Party and the Indemnified Party shall
      provide each other on an ongoing basis with all information which may be
      relevant to the other’s liability hereunder and shall supply copies of all
      relevant documentation promptly as they become
available.

	6.7 	
      Rights Cumulative

The rights of indemnification contained in this Article VI are
cumulative and are in addition to every other right or remedy of the Parties
contained in this Agreement or otherwise. 

- 30 - 

	6.8 	
      Subrogation

Upon payment in full of any indemnification Claim or the
payment of any judgment or settlement with respect to a third Person Claim, the
Indemnifying Party shall be subrogated to the extent of such payment to the
rights of the Indemnified Party against any Person with respect to the subject
matter of such indemnification Claim or third Person Claim. The Indemnified
Party shall assign or otherwise cooperate with the Indemnifying Party, at the
cost and expense of the Indemnifying Party, to pursue any Claims against, or
otherwise recover amounts from, any Person liable or responsible for any losses
for which indemnification has been received pursuant to this Agreement. 

	6.9 	
      Insurance and Other Recoveries

	 	 	 
		(a) 	
      All indemnification payments payable hereunder shall be
      reduced by the amount of insurance proceeds actually received by the
      Indemnified Party for such loss for which the Indemnified Party is seeking
      indemnification. Each Party agrees to promptly make and diligently pursue
      a Claim against any applicable insurance with respect to any loss that
      would otherwise be payable pursuant to this Article VI.

	 	 	 
		(b) 	
      All indemnification payments payable hereunder shall be
      reduced by the amount of any tax benefit realized or reasonably expected
      to be realized as a result of such Loss by the Indemnified
Party.

	 	 	 
	6.10 	
      Mitigation

Nothing in this Article VI shall eliminate or reduce an
Indemnified Party's obligations to mitigate its Losses as required by applicable
Law. 

	6.11 	
      Adjustment to Purchase
Price

Any payment made by the Vendors to the Purchaser under this
Article VI shall constitute a downward adjustment to the Purchase Price. Any
payment made by the Purchaser to the Vendors under this Article VI shall
constitute an upward adjustment to the Purchase Price. 

ARTICLE VII 
CLOSING 

	7.1 	
      Electronic Registration

Solicitors for the Vendors, the Company, and the Purchaser
shall enter into a customary Document Registration Agreement ("DRA")
prepared by the Law Society of Ontario (subject to such reasonable comments as
counsel may have) governing the procedure relating to receipt and disbursement
of the Purchase Price and the electronic release of land registration
documentation, with such agreement to include counsel for the existing
mortgagees and Purchaser’s mortgagee, if appropriate. 

- 31 - 

	7.2 	
      Vendors and Company Closing
  Deliverables

The Vendors and Company, as the case may be, both agree to
deliver to the Purchaser, on or before Closing, the following: 

	 	(a) 	
      registrable conveyances of the Adjacent Lands, containing
      all statements contemplated by Section 50(22) of the Planning Act
      (Ontario), and excluding no deemed covenants;

	 	 	 
	 	(b) 	
      registrable documentation sufficient to register notice
      of the Option on title to the Additional Lands;

	 	 	 
	 	(c) 	
      an assignment and assumption of Permitted
      Encumbrances;

	 	 	 
	 	(d) 	
      a certificate of an officer of the Company certifying
      that the Company is not a non- resident of Canada pursuant to Section 116
      of the Income Tax Act (Canada);

	 	 	 
	 	(e) 	
      a statutory declaration of each of the Vendors swearing
      that they are not a non- resident of Canada pursuant to Section 116 of the
      Income Tax Act (Canada) and that the Owned Real Property is not
      used as a matrimonial home for purposes of the Family Law Act
      (Ontario);

	 	 	 
	 	(f) 	
      a statement of adjustments;

	 	 	 
	 	(g) 	
      an undertaking to readjust;

	 	 	 
	 	(h) 	
      the DRA;

	 	 	 
	 	(i) 	
      a direction to the Purchaser regarding payment of the
      Purchase Price;

	 	 	 
	 	(j) 	
      such documentation (including statutory declarations
      regarding title and possession, or officer’s certificates) as may
      reasonably and customarily be required by the Purchaser’s title
      insurer;

	 	 	 
	 	(k) 	
      resignations of the Vendors as officers, directors and
      employees of the Company and mutual releases between the Vendors and the
      Company; and

	 	 	 
	 	(l) 	
      such other documents as may reasonably and customarily be
      required to effect the transactions contemplated by this
  Agreement.

	7.3 	
      Purchaser Closing
Deliverables

The Purchaser will deliver to the Vendors and the Company, as
the case may be, on or before Closing, the following: 

	 	(a) 	
      the Purchase Price;

	 	 	 
	 	(b) 	
      a direction with respect to title to the Adjacent Lands,
      if applicable;

	 	 	 
	 	(c) 	
      an assignment and assumption of Permitted
      Encumbrances;

- 32 - 

	 	(d) 	
      a certificate and indemnity with respect to HST as
      contemplated in Section 3.4;

	 	 	 
	 	(e) 	
      an undertaking to readjust;

	 	 	 
	 	(f) 	
      the DRA; and

	 	 	 
	 	(g) 	
      such other documents as may reasonably and customarily be
      required to effect the transactions contemplated by this
  Agreement.

All documents to be delivered by the Vendors to the Purchaser
and by the Purchaser to the Vendors on Closing shall be in form and substance
satisfactory to the lawyers for the party to whom such document is being
delivered, each acting reasonably. 

ARTICLE VIII 
GENERAL 

	8.1 	
      Notices

All notices, requests, demands or other communications required
or permitted to be given by one Party to another under this Agreement (each, a
"Notice") shall be given in writing and delivered by personal delivery or
delivery by recognized national courier, delivered by registered mail, postage
prepaid, or sent by electronic communication (including e-mail)addressed as
follows: 

	 	If to the Purchaser: 	200 Davenport Road 
	 	  	Toronto, Ontario 
	 	  	M5R 1J2 	  
	 	  	  	  
	 	  	Attention: 	Marc Hazout 
	 	  	E-Mail: 	mhazout@susglobalenergy.com 
	 	  	  	  
	 	If to the Vendors: 	David and Kim Moore 
	 	  	1010 Bethel Road 
	 	 	Roslin, ON K0K
      2Y0  	 
	 	  	  	  
	 	  	Attention: 	David and Kim Moore 
	 	  	E-Mail: 	davidkimmoore@sympatico.ca 
	 	  	  	  
	 	With a copy to: 	Dentons Canada LLP 
	 	  	77 King Street West, Suite 400,

	 	  	Toronto-Dominion Centre 
	 	  	Toronto, ON M5K 0A1 
	 	  	  	  
	 	  	Attention: 	Karen Groulx and Todd Melchior 
	 	  	E-Mail: 	karen.groulx@dentons.com and 
	 	  	  	todd.melchior@dentons.com 

or at such other address or e-mail address at which the
addressee may from time to time notify the addressor. Any Notice delivered by
personal delivery or by courier to the Party to whom it is addressed as provided
above shall be deemed to have been given and received on the day it is so delivered at such address. If such day is not a Business Day,
or if the Notice is received after 4:00 p.m. (addressee’s local time), then the
Notice shall be deemed to have been given and received on the next Business Day.
Any Notice sent by prepaid registered mail shall be deemed to have been given
and received on the fourth Business Day following the date of its mailing.
Attempted delivery of any Notice hereunder by electronic communication
(including but not limited to e-mail and Internet or intranet websites, but
excluding facsimile transmission) shall not constitute delivery of such Notice
for the purposes of this Agreement.  

- 33 - 

	8.2 	
      Waiver

Except as otherwise expressly set out herein, no waiver of any
provision of this Agreement shall be binding unless it is in writing. Waiver of
any provision shall not be deemed to waive the same provision thereafter, or any
other provision of this Agreement at any time. 

	8.3 	
      Severability

If any provision of this Agreement or portion thereof or the
application thereof to any Person or circumstance shall to any extent be
illegal, invalid or unenforceable: (a) the remainder of this Agreement or the
application of such provision or portion thereof to any other Person or
circumstance shall not be affected thereby; and (b) the Parties will negotiate
in good faith to amend this Agreement to implement the intentions set forth in
this Agreement. Each provision of this Agreement shall be legal, valid and
enforceable to the fullest extent permitted by law. 

	8.4 	
      Assignment and Enurement

Neither this Agreement nor any benefits or burdens under this
Agreement shall be assignable by any Party, without the prior written consent of
each of the other Parties, which consent may be unreasonably withheld or
delayed. Subject to the foregoing, this Agreement shall enure to the benefit of
and be binding upon the Parties and their respective successors and permitted
assigns hereunder. 

	8.5 	
      Expenses

Except in relation to the Professional Fee Amount or otherwise
set out in this Agreement, each Party to this Agreement shall pay its
respective, accounting and other professional advisory fees, costs and expenses
incurred in connection with the negotiation, preparation and execution of this
Agreement and all documents and instruments executed or delivered pursuant to
this Agreement, as well as any other fees, costs and expenses incurred. 

	8.6 	
      Further Assurances

The Parties shall do all such things and provide all such
reasonable assurances as may be required to consummate the transactions
contemplated by this Agreement, and each Party shall provide such further
documents or instruments required by any other Party as may be reasonably
necessary or desirable to effect the purpose of this Agreement and carry out its
provisions. 

- 34 - 

	8.7 	
      Jurisdiction

Each of the Parties to this Agreement irrevocably submits to
the exclusive jurisdiction of the courts of the Province of Ontario. 

	8.8 	
      Service

If any party is or becomes a party on which service or legal
process with respect to an action commenced in the Province of Ontario must be
served out of the jurisdiction of the Province of Ontario (an "Ex Juris
Party"), the Ex Juris Party shall in writing to the other party designate,
appoint and empower a party or agent within the Province of Ontario to receive
for and on behalf of the Ex Juris Party service of process in the Province of
Ontario in any legal action or proceeding with respect to this Agreement, which
agent shall undertake to enter an unconditional appearance within thirty (30)
days after such service. A copy of such process served on the agent will be
promptly forwarded by mail by the party initiating such proceedings to the Ex
Juris Party at the address referred to in the next sentence. Failure of the Ex
Juris Party to receive such copy shall not affect in any way the service of such
process on the Ex Juris Party by service upon its agent for service as
designated above. Each party agrees that if it becomes an Ex Juris Party and it
fails to maintain such a duly appointed agent for service of process, it
irrevocably consents to the service of process out of any court of the Province
of Ontario by mailing all copies of such process by registered or certified
mail, postage prepaid to the last address designated for delivery of notice to
such Ex Juris Party under the terms of Section 8.1, such
service to be effective thirty (30) days after such mailing. The mailing to such
Ex Juris Party at such address shall be deemed personal service and acceptance
of service by such Ex Juris Party for any action or proceeding with respect to
any matter relating to this Agreement. Service in accordance with the foregoing
provisions shall not preclude any other manner of service permitted by Ontario
law.

	8.9 	
      Public Notices

All public notices to third parties and all other publicity
concerning the matters contemplated by this Agreement shall be jointly planned
and coordinated by the Parties and no Party shall act unilaterally in this
regard without the prior written approval of the other Parties, except where the
Party making such notice is required to do so by law or any Governmental
Authority, or any stock exchange, in which circumstance the Party subject to
such legal requirement may make public disclosure and shall use its commercially
reasonable efforts to consult in advance with the other Party to the extent
practicable. 

	8.10 	
      Third Party Beneficiaries

Except as otherwise provided in Section 6.3, the Vendors and
the Purchaser intend that this Agreement will not benefit or create any right or
cause of action in favour of any Person, other than the Parties. Except for the
Indemnified Parties, no Person, other than the Parties, shall be entitled to
rely on the provisions of this Agreement in any action, suit, proceeding,
hearing or other forum. Despite the foregoing, the Vendors acknowledges to each
of the Purchaser's
Indemnified Parties their direct rights against it under Section 6.3 of this
Agreement and the Purchaser acknowledges to each of the Vendors' Indemnified Parties their direct rights against it
under Section 6.3 of this Agreement. To the extent
required by Law to give full effect to these direct rights, the Vendors and the
Purchaser agree and acknowledge that they are acting as agent and/or as trustee of their respective Indemnified Parties. The
Parties reserve their right to vary or rescind the rights at any time and in any
way whatsoever, if any, granted by or under this Agreement to any Person who is
not a Party, without notice to or consent of that Person, including any
Indemnified Parties. 

- 35 - 

	8.11 	
      Non-Merger

Except as otherwise expressly provided in this Agreement, the
representations, warranties, and agreements shall not merge on and shall survive
Closing and, notwithstanding Closing or any investigation made by or on behalf
of any party, shall continue in full force and effect. 

	8.12 	
      No Presumption

The Parties have participated jointly in the negotiation and
drafting of this Agreement. In the event any ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the Parties, and no presumption or burden of proof shall arise favouring or
disfavouring either Party by virtue of the authorship of any provision of this
Agreement or the payment of any legal services associated therewith. 

	8.13 	
      Language

The Parties confirm that it is their wish that this Agreement,
as well as any other documents relating to this Agreement, including Notices,
Schedules, Exhibits and authorizations, have been and shall be drawn up in the
English language only. Les Parties aux présentes confirment leur volonté que
cette convention, de même que tous les documents, y compris tous avis, annexes
et autorisations s’y rattachant, soient rédigés en anglais seulement. 

	8.14 	
      Execution by Electronic
  Transmission

The signature of any of the Parties may be evidenced by a
facsimile, scanned email or internet transmission copy of this Agreement bearing
such signature. 

	8.15 	
      Counterparts

This Agreement may be signed in one or more counterparts, each
of which so signed shall be deemed to be an original, and such counterparts
together shall constitute one and the same instrument. Notwithstanding the date
of execution or transmission of any counterpart, each counterpart shall be
deemed to have the effective date first written above. 

[SIGNATURE PAGES TO IMMEDIATELY FOLLOW]

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