Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Chalk Media Corp. - Exhibit 4.5

CHALK MEDIA CORP.

 

INCENTIVE STOCK OPTION PLAN – 2003

 

November 19, 2003 

TABLE OF CONTENTS 

	PART 1 	GENERAL PROVISIONS 	1 
	 	  	  	  
	 	1.1 	Interpretation 	1 
	 	1.2 	Purpose 	3 
	 	1.3 	Status of the Corporation 	3 
	 	1.4 	Administration 	3 
	 	1.5 	Shares Reserved 	4 
	 	1.6 	Limits with respect to Insiders and Others
      	4 
	 	1.7 	Limits with respect to Consultants 	4 
	 	1.8 	Limits with respect to Persons involved
      in Investor Relations Activities 	4 
	 	1.9 	Non-Exclusivity 	5 
	 	1.10 	Amendment and Termination 	5 
	 	1.11 	Compliance with Legislation 	5 
	 	1.12 	Representation of the Corporation 	5 
	 	1.13 	Effective Date 	5 
	 	  	  	  
	PART 2 	OPTIONS 	6 
	 	  	  	  
	 	2.1 	Grants 	6 
	 	2.2 	Option Exercise Price 	6 
	 	2.3 	Exercise of Options 	6 
	 	2.4 	Amendments to Option Grants 	8 
	 	  	  	  
	PART 3 	MISCELLANEOUS PROVISIONS 	8 
	 	  	  	  
	 	3.1 	No Shareholder Rights for Option Holders 	8 
	 	3.2 	No Rights to Employment 	8 
	 	3.3 	Bona Fide Employee 	8 

CHALK MEDIA CORP. 

INCENTIVE STOCK OPTION PLAN 

PART 1 
GENERAL PROVISIONS 

1.1       
Interpretation 

For the purposes of this Plan, the following terms shall have
the following meanings: 

	 	a. 	
      "Affiliate" means any corporation that is an
      affiliate of the Corporation within the meaning set forth in the policies
      of the Exchange, as amended from time to time;

	 	 	 	 
	 	b. 	
      "Associate" has the meaning assigned thereto in
      the policies of the Exchange, as amended from time to time;

	 	 	 	 
	 	c. 	
      "Board" means the Board of Directors of the
      Corporation;

	 	 	 	 
	 	d. 	
      "Common Shares" means the common shares in the
      capital of the Corporation;

	 	 	 	 
	 	e. 	
      "Consultant" means, in relation to the
      Corporation, an individual or Consultant Company, other than an Employee
      or a Director of the Corporation, that:

	 	 	 	 
	 		i. 	
      is engaged to provide on a ongoing bona fide basis,
      consulting, technical, management or other services to the Corporation or
      to an Affiliate of the Corporation, other than services provided in
      relation to a Distribution;

	 	 	 	 
	 		ii. 	
      provides the services under a written contract between
      the Corporation or the Affiliate and the individual or the Consultant
      Company;

	 	 	 	 
	 		iii. 	
      in the reasonable opinion of the Corporation, spends or
      will spend a significant amount of time and attention on the affairs and
      business of the Corporation or an Affiliate of the Corporation;
  and

	 	 	 	 
	 		iv. 	
      has a relationship with the Corporation or an Affiliate
      of the Corporation that enables the individual to be knowledgeable about
      the business and affairs of the Corporation.

	 	 	 	 
	 	f. 	
      "Consultant Company" means, for an individual
      Consultant, a company of which the individual Consultant is an employee or
      shareholder;

	 	 	 	 
	 	g. 	
      "Consultant Partnership" means, for an individual
      Consultant, a partnership of which the individual Consultant is an
      employee or partner;

	 	 	 	 
	 	h. 	
      "Corporation" means XYZ Corporation, a corporation
      incorporated under the laws of British Columbia;

	 	 	 	 
	 	i. 	
      "Disinterested Shareholders" means all of the
      Shareholders of the Corporation except Insiders of the Corporation who are
      Eligible Persons, and such Insiders' Associates;

	 	 	 	 
	 	j. 	
      "Director" means a director of the Corporation or
      a subsidiary of the Corporation;

- 2 - 

	 	k. 	
      "Eligible Person" means, subject to all applicable
      laws, any employee, Officer, Director, Management Company Employee of or
      Consultant to the Corporation or a subsidiary of the
Corporation;

	 	 	 	 
	 	l. 	
      "Employee" means,

	 	 	 	 
	 		i. 	
      an individual who is considered an employee of the
      Corporation or a subsidiary of the Corporation under the Income Tax Act
      (Canada) (i.e. for whom income tax, employment insurance and CPP
      deductions must be made at source);

	 	 	 	 
	 		ii. 	
      an individual who works full-time for the Corporation or
      a subsidiary of the Corporation providing services normally provided by an
      employee and who is subject to the same control and direction by the
      Corporation over the details and methods of work as an employee of the
      Corporation, but for whom income tax deductions are not made at source;
      or

	 	 	 	 
	 		iii. 	
      an individual who works for the Corporation or a
      subsidiary of the Corporation on a continuing and regular basis for a
      minimum amount of time per week providing services normally provided by an
      employee and who is subject to the same control and direction by the
      Corporation over the details and methods of work as an employee of the
      Corporation, but for whom income tax deductions are not made at
    source.

	 	 	 	 
	 	m. 	
      "Exchange" means the TSX Venture
  Exchange;

	 	 	 	 
	 	n. 	
      "Insider" means an insider as defined under the
      policies of the Exchange, as amended from time to time;

	 	 	 	 
	 	o. 	
      "Investor Relations Activities" has the meaning
      assigned thereto in the policies of the Exchange as amended from time to
      time;

	 	 	 	 
	 	p. 	
      "Management Company Employee" means, an individual
      employed by a Person providing management services to the Corporation,
      which are required for the ongoing successful operation of the business
      enterprise of the Corporation, but excluding a Person engaged in Investor
      Relations Activities;

	 	 	 	 
	 	q. 	
      "Officer" means an officer of the Corporation, or
      a subsidiary of the Corporation;

	 	 	 	 
	 	r. 	
      "Option" means an option to purchase Common Shares
      granted to an Eligible Person pursuant to the terms of the Plan;

	 	 	 	 
	 	s. 	
      "Optioned Shares" means Common Shares subject to
      any Option;

	 	 	 	 
	 	t. 	
      "Participant" means Eligible Persons to whom
      Options have been granted;

	 	 	 	 
	 	u. 	
      "Person" means an individual or a corporation,
      incorporated association or organization, body corporate, partnership,
      trust, association or other entity other than an individual;

	 	 	 	 
	 	v. 	
      "Plan" means this Incentive Stock Option Plan -
      2002 of the Corporation;

	 	 	 	 
	 	w. 	
      "Share Compensation Arrangement" means any stock
      option, stock option plan, employee stock purchase plan or other
      compensation or incentive mechanism involving the issuance or potential
      issuance of Common Shares, including a share purchase from treasury which
      is financially assisted by the Corporation by way of a loan, guarantee or
      otherwise;

- 3 - 

	 	x. 	
      "Subsidiary" means any company that is a
      subsidiary of the Corporation as defined under section 1(1) of the
      Securities Act (British Columbia); and

	 	 	 
	 	y. 	
      "Termination Date" means the date on which a
      Participant ceases to be an Eligible Person in any
  capacity.

In this Plan, words imparting the singular number only shall
include the plural and vice versa and words imparting the masculine shall
include the feminine. 

This Plan and all matters to which reference is made herein
shall be governed by and interpreted in accordance with the laws of the Province
of British Columbia and the laws of Canada applicable therein. 

1.2        Purpose

The purpose of this Plan is to advance the interests of the
Corporation by: 

	 	a. 	
      providing Eligible Persons with additional
    incentive;

	 	 	 
	 	b. 	
      encouraging stock ownership by such Eligible
    Persons;

	 	 	 
	 	c. 	
      increasing the proprietary interest of Eligible Persons
      in the success of the Corporation;

	 	 	 
	 	d. 	
      encouraging Eligible Persons to remain with the
      Corporation or its Affiliates; and

	 	 	 
	 	e. 	
      attracting new employees, directors and
  officers.

1.3       
Status of the Corporation 

As of the date hereof, the Corporation is: 

	 	a. 	
      a "Tier 2 Issuer" for the purposes of the policies of the
      Exchange; and

	 	 	 
	 	b. 	
      a "reporting issuer" or its equivalent under the
      securities laws of the Provinces of British Columbia, Alberta, Manitoba
      and Ontario.

1.4        Administration

	 	a. 	
      The Plan shall be administered by the Board or a
      committee of the Board duly appointed for this purpose by the Board and
      consisting of not less than three directors. If a committee is appointed
      for this purpose, all references herein to the Board will be deemed to be
      references to the Committee.

	 	 	 	 
	 	b. 	
      Subject to the limitations of the Plan, the Board shall
      have the authority to:

	 	 	 	 
	 		i. 	
      grant Options to Eligible Persons;

	 	 	 	 
	 		ii. 	
      determine the terms, limitations, restrictions and
      conditions respecting such grants;

	 	 	 	 
	 		iii. 	
      interpret the Plan and adopt, amend and rescind such
      administrative guidelines and other rules and regulations relating to the
      Plan as it shall from time to time deem advisable; and

	 	 	 	 
	 		iv. 	
      make all other determinations and take all other actions
      in connection with the implementation and administration of the Plan
      including without limitation for

- 4 - 

the purpose of ensuring compliance
with Section 1.11 hereof as it may deem necessary or advisable. 

	 	c. 	
      The Board's guidelines, rules, regulations,
      interpretations and determinations in respect of this Plan and the grant
      of Options in respect of this Plan and the grant of Options shall be
      conclusive and binding upon the Corporation, the Participants and all
      other persons.

1.5        Shares
  Reserved

	 	a. 	
      The total number of Optioned Shares available for issue
      under this Plan upon the exercise of Options granted hereunder is
      4,000,000 Optioned Shares being approximately 20% of the number of Common
      shares issued and outstanding as at the date hereof minus the 350,000 of
      Common Shares in respect of which Options remain outstanding under any
      existing Option agreements as at the date hereof provided that if and to
      the extent any such Option granted under any existing option agreement
      expires or is cancelled or terminated after the implementation of this
      Plan without having been exercised in whole or in part, the number of
      Common Shares in respect of which any such Option so expired or is
      cancelled or terminated shall be considered to be part of the pool of
      Common Shares available for Optioned Shares under this Plan and shall not
      be deducted from the maximum set out in this paragraph
  (a).

1.6        Limits
  with respect to Insiders and Others

	 	a. 	
      Subject to Section 1.6(d) hereof, the number of Common
      Shares which may be reserved for issuance to Insiders under the Plan may
      exceed 10% of the Common Shares issued and outstanding at the time of the
      grant.

	 	 	 
	 	b. 	
      Subject to Section 1.6(d) hereof, the number of Common
      Shares which may be issued to Insiders under the Plan within a one year
      period may exceed 10% of the Common Shares issued and outstanding at the
      time of the issuance.

	 	 	 
	 	c. 	
      The number of Common Shares which may be issued to any
      one Insider and such Insider's associates under the Plan within a one-year
      period may exceed 5% of the Common Shares outstanding at the time of the
      issuance.

	 	 	 
	 	d. 	
      No more than 5% of the issued and outstanding Common
      Shares may be granted to any one individual in any 12 month period (unless
      the Corporation has become a Tier 1 issuer and has obtained the approval
      of the Disinterested Shareholders).

	 	 	 
	 	e. 	
      The approval of Disinterested Shareholders shall be
      obtained for any reduction in any Option exercise price if the Participant
      is an Insider of the Corporation at the time of the proposed
    amendment.

1.7       
Limits with respect to Consultants 

The number of Options granted to any one Consultant in any
12-month period shall not exceed 2% of the then issued and outstanding Common
Shares. 

1.8        Limits
  with respect to Persons involved in Investor Relations Activities

The aggregate number of Options granted under the Plan to all
Employees conducting Investor Relations Activities in any 12-month period shall
not exceed 2% of the then issued and outstanding Common Shares. 

- 5 - 

1.9        Non-Exclusivity

Nothing contained herein shall prevent the Board from adopting
other or additional compensation arrangements, subject to any required
approvals. 

1.10       Amendment
  and Termination

The Board may amend, suspend or terminate the Plan or any
portion thereof at any time in accordance with applicable legislation and
subject to any required approval. No such amendment, suspension or termination
shall alter or impair any Options or any rights pursuant thereto granted
previously to any Participant without the consent of such Participant. If the
Plan is terminated, the provisions of the Plan and any administrative guidelines
and other rules and regulations adopted by the Board and in force at the time of
the Plan shall continue in effect during such time as an Option or any rights
pursuant thereto remain outstanding. 

1.11       Compliance
  with Legislation

The Plan, the grant and exercise of Options hereunder and the
Corporation's obligation to sell and deliver Common Shares upon exercise of
Options shall be subject to all applicable federal, provincial and foreign laws,
rules and regulations, the rules and policies of any stock exchange(s) on which
the Common Shares are listed for trading and to such approvals by any regulatory
or governmental agency as may, in the opinion of counsel to the Corporation, be
required. The Corporation shall not be obligated by any provision of the Plan or
the grant of any Option hereunder to issue or sell Common Shares in violation of
such laws, rules and regulations or any condition of such approvals. No Option
shall be granted and no Common Shares issued or sold hereunder where such grant,
issue or sale would require legislation of the Plan or of Common Shares under
the securities laws of any foreign jurisdiction and any purported grant of any
Option or issue or sale of Common Shares hereunder in violation of this
provision shall be void. In addition, the Corporation shall have no obligation
to issue any Common Shares pursuant to the Plan unless such Common Shares shall
have been duly listed, upon official notice of issuance, with all stock
exchanges on which the Common Shares are listed for trading. Common Shares
issued and sold to Participants pursuant to the exercise of Options may be
subject to limitations on sale or resale under applicable securities laws. If
required by applicable securities laws or the policies of any stock exchange on
which the Common Shares are then listed, the Corporation shall place on the
share certificates representing Common Shares issued upon the exercise of an
Option such restriction legend as may be prescribed under those laws or
policies.

1.12       Representation
of the Corporation 

The Corporation represents that any Employee, Consultant or
Management Company Employee who is granted an Option or Options is a bona fide
Employee, Consultant or Management Company Employee, as the case may be, of the
Corporation or an Affiliate. 

1.13       Effective
  Date

The Plan shall be subject to the approval of any relevant
regulatory authority whose approval is required. Any Options granted under the
Plan prior to such approvals and acceptances shall be conditional upon such
approvals and acceptances being given and no such Options may be exercised
unless such approvals and acceptance is given. 

1.14       Share
  Subdivisions, Consolidations, Reservation

	 	a. 	
      In the event of any subdivision, consolidation or other
      change in the authorized capital of the Corporation as presently
      constituted, while any portion of the Optioned Shares are unexercised, the
      number of Optioned Shares unexercised shall be adjusted in accordance with
      such subdivision, consolidation or other change in the authorized capital
      and the

- 6 - 

	 		
      Option exercise price per Common Share shall be adjusted
      accordingly. Any disputes as to adjustments required under this paragraph
      shall be referred to the Auditors, whose determination shall be binding
      upon the Corporation and all Participants.

	 	 	 
	 	b. 	
      The Corporation will reserve in its treasury sufficient
      Common Shares to permit the allotment and issue of the Optioned Shares in
      the event the Participants exercise all of the Options available
      hereunder.

PART 2 
OPTIONS 

2.1      
 Grants 

Subject to the provisions of the Plan, the Board shall have the
authority to determine the limitations, restrictions and conditions, if any, in
addition to those set forth in Section 2.3 hereof, applicable to the exercise of
any Option, including without limitation, the nature and duration of the
restrictions, if any, to be imposed upon the sale or other disposition of Common
Shares acquired upon exercise of the Option, and the nature of the events, if
any, and the duration of the period in which any Participant's rights in respect
of Common Shares acquired upon exercise of an Option may be forfeited. An
Eligible Person may receive Options on more than one occasion under the Plan and
may receive separate Options on any one occasion.

2.2        Option
  Exercise Price

	 	a. 	
      Subject to a minimum price of $0.10 per share, the Option
      exercise price shall not be less than the closing price (the "Market
      Price") of the Common Shares on the Exchange on (i) the trading day
      immediately preceding the day on which the Board grants the Option or,
      (ii) if no news release is issued, the last Market Price of the Common
      Shares, less the discount to the Market Price permitted by the Exchange.
      Notwithstanding anything contained in this Plan the Board may, at its sole
      discretion, grant any Option at the Market Price or at a discounted Market
      Price reflecting a discount lesser than the maximum permitted by the
      Exchange.

	 	 	 
	 	b. 	
      If any Options is granted within ninety days of a public
      distribution by a prospectus, then the Option exercise price shall not be
      less than the greater of the price calculated in 2.2(a) or the price per
      share paid by the public investors pursuant to the public distribution.
      The ninety day period will commence on the day a receipt is issued for the
      (final) prospectus or, in the case of a prospectus that qualifies the
      distribution of securities underlying special warrants of the Corporation
      on the date of closing of the Special Warrant private placement.

	 	 	 
	 	c. 	
      The Option exercise price shall be subject to adjustment
      in accordance with the provisions of Section 1.14
hereof.

2.3        Exercise
  of Options

	 	a. 	
      Options granted must be exercised no later than five
      years after the date of grant thereof or such lesser period as the Board
      may have determined for the Option at the time such Option was
    granted.

	 	 	 
	 	b. 	
      Options shall not be assignable or transferable by the
      Participants otherwise than by will or the laws of descent and
      distribution, and shall be exercisable during the lifetime of a
      Participant only by the Participant and after death only by the
      Participant's legal representative (subject to the limitation that Options
      may not be exercised later than five years from their date of
    grant).

- 7 - 

	 	c. 	
      Except as otherwise determined by the Board and subject
      to the limitation that Options may not be exercised later than five years
      from their date of grant:

	 	 	 	 
	 		i. 	
      if a Participant ceases to be an Eligible Person for any
      reason whatsoever other than death, each Option held by the Participant
      other than a Participant who is involved in Investor Relations Activities
      will cease to be exercisable 90 days after the Termination Date. For
      Participants conducting Investor Relations Activities, Options shall cease
      to be exercisable 30 days after the Participant ceases to be employed to
      provide Investor Relations Activities. If any portion of an Option is not
      vested by the Termination Date, that portion of the Option may not under
      any circumstances be exercised by the Participant. Without limitation, and
      for greater certainty only, this provision will apply regardless of
      whether the Participant was dismissed with or without cause and regardless
      of whether the Participant received compensation in respect of dismissal
      or was entitled to a period of notice of termination which would otherwise
      have permitted a greater portion of the Option to vest with the
      Participant;

	 	 	 	 
	 		ii. 	
      if a Participant dies, the legal representative of the
      Participant may exercise the Participant's Options within one year after
      the date of the Participant's death, but only to the extent the Options
      were by their terms exercisable on the date of death.

	 	 	 	 
	 	d. 	
      Subject to the provisions of this Section 2.3(d), the
      Board shall determine the manner in which Options shall vest and become
      exercisable. Options granted to any Participant conducting Investor
      Relations Activities shall vest at a minimum over a period of 12 months
      with no more than 1/4 of such Options vesting in any three month period.
      Options for all other categories of Eligible Persons shall vest over a
      period of 18 months or such longer period as the Board may decide upon in
      each case, with vesting to occur in equal quarterly instalments over the
      vesting period provided that the last instalment may vest in a period of
      less than three months. The Board may impose such other restrictions or
      limitations or requirements upon the exercise of Options as the Board, in
      its absolute discretion, may determine on the date of grant.

	 	 	 	 
	 	e. 	
      Each Option shall be confirmed and documented by a
      written Option agreement executed by the Corporation and by the
      Participant.

	 	 	 	 
	 	f. 	
      The exercise price of each Common Share purchased under
      an Option shall be paid to the Corporation in full in cash or by bank
      draft or certified cheque at the time of such exercise, and upon receipt
      of payment in full, but subject to the terms of the Plan, the number of
      Common Shares in respect of which the Option is exercised shall be duly
      issued as fully paid and non-assessable.

	 	 	 	 
	 	g. 	
      Subject to the provisions of the Plan, an Option may be
      exercised from time to time by delivery to the Corporation at its
      registered office of a written notice of exercise addressed to the
      Secretary of the Corporation specifying the number of Common Shares with
      respect to which the Option is being exercised and accompanied by payment
      in full of the Option Price of the Common Shares to be purchased.
      Certificates for such Common Shares shall be issued and delivered to the
      Participant within a reasonable period of time following the receipt of
      such notice and payment.

	 	 	 	 
	 	h. 	
      Notwithstanding any of the provisions contained in the
      Plan or in any Option agreement, the Corporation's obligation to issue
      Common Shares to a Participant pursuant to the exercise of an Option shall
      be subject to:

- 8 - 

	 	i. 	
      completion of such filings in respect of such Common
      Shares or obtaining approval of such governmental or regulatory authority
      as counsel to the Corporation shall reasonably determine to be necessary
      or advisable in connection with the authorization, issuance or sale
      thereof;

	 	 	 
	 	ii. 	
      admission of such Common Shares to listing on any stock
      exchange on which the Common Shares may then be listed; and

	 	 	 
	 	iii. 	
      the receipt from the Participant of such representations,
      agreements and undertakings, including as to future dealings in such
      Common Shares, as counsel to the Corporation reasonably determines to be
      necessary or advisable in order to safeguard against the violation of the
      laws of any jurisdiction.

	 	i. 	
      The Corporation shall, to the extent necessary, take all
      reasonable steps to obtain such approvals, and make such filings as may be
      necessary for issuance of Common Shares on the exercise of Options in
      compliance with applicable laws and for the admission to listing of such
      Common Shares on any stock exchange on which the Common Shares are then
      listed. If required by applicable securities laws or the policies of any
      stock exchange on which the Common Shares are then listed, the Corporation
      shall place on the share certificates representing Common Shares issued
      upon the exercise of an Option such restriction legend as may be
      prescribed under those laws or policies.

2.4      
 Amendments to Option Grants 

Subject to the policies of Exchange, the Board may amend any
Option with the consent of the affected Participant. If an amendment reducing
the exercise price of the Option is made to an Option held by an Insider, the
amendment shall only be made effective after the approval of the Disinterested
Shareholders at a general meeting of the Shareholders of the Corporation is
received. 

PART 3 
MISCELLANEOUS PROVISIONS 

3.1      
 No Shareholder Rights for Option Holders

The holder of an Option shall not have any rights as a
shareholder of the Corporation with respect to any of the Common Shares covered
by such Option until such holder shall have exercised such Option in accordance
with the terms of the Plan (including tendering payment in full of the Option
Price of the Common Shares in respect of which the Option is being exercised).

3.2        No
  Rights to Employment

Nothing in the Plan or any Option shall confer upon a
Participant any right to continue in the employ of the Corporation or any
Affiliate or affect in any way the right of the Corporation or any Affiliate to
terminate his employment at any time; nor shall anything in the Plan or any
Option be deemed or construed to constitute an agreement, or an expression of
intent, on the part of the Corporation or any Affiliate to extend the employment
of any Participant beyond the time which he would normally be retired pursuant
to the provisions of any present or future retirement plan of the Corporation or
any Affiliate, or beyond the time at which he would otherwise be retired
pursuant to the provisions of any contract of employment with the Corporation or
any Affiliate. 

3.3        Bona
  Fide Employee

For any Option granted to Employees, Consultants or Management
Company Employees, the written Option agreement in respect of such Option shall
include a representation of the Corporation that the Participant is a bona fide
Employee, Consultant or Management Company Employee, as the case may be.Filed by Automated Filing Services Inc. (604) 609-0244 - Chalk Media Corp. - Exhibit 4.6

THIS PRINCIPAL VENDORS' AGREEMENT is made as of the 12th day of
May, 2003, 

BETWEEN: 

  
    
      
        GIANTSTAR VENTURES INC., a company incorporated
          under the laws of British Columbia and having its head office at 909
          Bowron Street, Coquitlam, BC V3J 7W3 

      

    

  

("Giantstar") 

AND: 

  
    
      
        THOSE PRINCIPAL SHAREHOLDERS OF CHALK MEDIA
          CORP. IDENTIFIED AS SUCH ON SCHEDULE “A”
        

      

    

  

(the "Principal Vendors") 

AND: 

  
    
      
        CHALK MEDIA CORP., a company incorporated
          under the laws of British Columbia and having its registered office
          at 1600 – 777 Dunsmuir Street, Vancouver, BC V7Y 1K4 

      

    

  

("Chalk") 

WHEREAS: 

A.                    
Giantstar is a CPC whose shares trade on the Exchange; 

B.                    
Chalk is a private company engaged through the Subsidiaries in the business of
producing online training training and marketing content;

C.                    
Giantstar wishes to acquire all of the issued and outstanding shares of Chalk,
which will constitute Giantstar's Qualifying Transaction under the policies of
the Exchange; 

D.                    
Concurrently with this Agreement, Giantstar is entering into the Share Exchange
Agreement with the Vendors (including the Principal Vendors); 

E.                    
The Principal Vendors are insiders or other significant shareholders of Chalk;
and 

F.                    
Giantstar and the Principal Vendors wish to enter into this Agreement in
addition to the Share Exchange Agreement to more fully define their respective
obligations in respect of the Transaction. 

                       
NOW THEREFORE WITNESSETH that in consideration of the premises and of the mutual
covenants and agreements set forth herein, in consideration of Giantstar
entering into the 

- 2 - 

Share Exchange Agreement, and in consideration of the payment
by Giantstar to each of the Principal Vendors of the sum of $10, the receipt and
sufficiency of which is acknowledged by each of them, the parties hereto
covenant and agree as follows: 

ARTICLE 1 
DEFINITIONS AND INTERPRETATION 

Definitions 

1.01                    
In this Agreement, including the recitals hereto, the following words and
phrases shall have the following meanings: 

	(a) 	
      "Assets" means all of the property and assets of Chalk
      and the Subsidiaries of every kind and description, wherever
    situate;

	 	 
	(b) 	
      “Audited Chalk Financial Statements” means the audited
      consolidated financial statements of Chalk as at and for the year ended
      December 31, 2002;

	 	 
	(c) 	
      “Audited Giantstar Financial Statements” means the
      audited financial statements of Giantstar as at and for the period ended
      July 31, 2002;

	 	 
	(d) 	
      "Business" means the business of Chalk and the
      Subsidiaries substantially as carried on at the date of this
    Agreement;

	 	 
	(e) 	
      "Business Day" means any day other than a day which is a
      Saturday, a Sunday or a statutory holiday in Vancouver, British
      Columbia;

	 	 
	(f) 	
      "Closing" means the closing of the Transaction as
      contemplated by this Agreement in accordance with Article 8;

	 	 
	(g) 	
      “Chalk Shares” means common shares without par value in
      Chalk owned by the Vendors as set out in Schedule "A";

	 	 
	(h) 	
      "Chalk Warrants" means the warrants to purchase
      additional common shares in Chalk as set out in Schedule "A";

	 	 
	(i) 	
      "Company Act" means the Company Act
      (British Columbia), as amended from time to time;

	 	 
	(j) 	
      "Completion Date" means the date of Closing determined in
      accordance with section 8.01;

	 	 
	(k) 	
      "Encumbrance" means mortgages, charges, pledges, security
      interests, liens, encumbrances, actions, claims, demands and equities of
      any nature whatsoever or howsoever arising and any rights or privileges
      capable of becoming any of the foregoing, but does not include
  any

- 3 - 

		
      resale or other restriction which may be placed on the
      Giantstar Shares under applicable securities laws or policies of the
      Exchange;

	 	 
	(l) 	
      "Exchange" means the TSX Venture Exchange;

	 	 
	(m) 	
      "Giantstar Shares" means the 15,000,000 common shares of
      Giantstar to be issued to the Vendors in consideration for the Chalk
      Shares in accordance with Article 2;

	 	 
	(n) 	
      “Giantstar Seed Capital Shares” means the 1,500,000
      common shares of Giantstar which were issued prior to the initial public
      offering of Giantstar and which are currently held in escrow in accordance
      with the policies of the Exchange;

	 	 
	(o) 	
      "Governmental Authority" means any federal, provincial,
      state, municipal, county or regional government or governmental authority,
      domestic or foreign, and includes any department, commission, bureau,
      board, administrative agency or regulatory body or any of the
      foregoing;

	 	 
	(p) 	
      "Income Tax Act" means the Income Tax Act
      (Canada), as amended from time to time;

	 	 
	(q) 	
      "Material Contracts" means those contracts, engagements,
      and commitments described in Schedule "B" to this Agreement;

	 	 
	(r) 	
      "Permitted Encumbrances" means those Encumbrances
      charging the Assets or some portion thereof which are specified as
      "Permitted Encumbrances" in Schedule "C" to this Agreement;

	 	 
	(s) 	
      "Person" includes an individual, corporation,
      partnership, party, trust fund, association, and any other organized group
      of persons;

	 	 
	(t) 	
      "Share Exchange Agreement" means the agreement being made
      concurrently with this Agreement and dated as of the same date hereof
      pursuant to which the Vendors agree to sell their shares in Chalk to
      Giantstar;

	 	 
	(u) 	
      "Subsidiaries" means the direct and indirectly owned
      subsidiaries of Chalk as listed in Schedule "D";

	 	 
	(v) 	
      "Transaction" means the acquisition of Chalk Shares by
      Giantstar as provided for in this Agreement and the Share Exchange
      Agreement; and

	 	 
	(w) 	
      "Vendors" means all of those entities shown on Schedule
      "A" as owners of Chalk Shares.

- 4 - 

Captions and Section Numbers 

1.02                    
The headings and section references in this Agreement are for convenience of
reference only and do not form a part of this Agreement and are not intended to
interpret, define or limit the scope, extent or intent of this Agreement or any
provision thereof. 

Extended Meanings 

1.03                    
The words "hereof", "herein", "hereunder" and similar expressions used in any
clause, paragraph or section of this Agreement shall relate to the whole of this
Agreement and not to that clause, paragraph or section only, unless otherwise
expressly provided. 

Number and Gender 

1.04                    
Whenever the singular or masculine or neuter is used in this Agreement, the same
shall be construed to mean the plural or feminine or body corporate where the
context of this Agreement or the parties hereto so require. 

Section References 

1.05                    
Any reference to a particular "article", "section", "subsection" or other
subdivision is to the particular article, section or other subdivision of this
Agreement. 

Governing Law 

1.06                    
This Agreement and all matters arising hereunder shall be governed by, construed
and enforced in accordance with the laws of the Province of British Columbia.

Severability of Clauses 

1.07                    
In the event that any provision of this Agreement or any part thereof is
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

Currency 

1.08                    
All sums of money to be paid or calculated pursuant to this Agreement shall be
paid or calculated in currency of Canada unless otherwise expressly stated. 

- 5 - 

Statutes 

1.09                    
Unless otherwise stated, any reference to a statute includes and is a reference
to such statute and to the regulations made pursuant thereto, with all
amendments made thereto and in force from time to time, and to any statute or
regulations that may be passed which supplement or supersede such statute or
such regulations. 

No Contra Proferentum 

1.10                    
The language in all parts of this Agreement shall in all cases be construed as a
whole and neither strictly for nor strictly against any of the parties. 

Schedules 

1.11                    
The schedules attached hereto are hereby incorporated into this Agreement and
form a part hereof. All terms defined in this Agreement shall have the same
meaning in such schedules. The schedules to this Agreement are as follows: 

Schedule "A" – Vendors, Principal
Vendors, Chalk Shares, and Chalk Warrants 
Schedule "B" – Material Contracts

Schedule "C" – Permitted Encumbrances 
Schedule "D" - Subsidiaries
Schedule "E" - Actions, Suits, and Proceedings 
Schedule "F" – Intellectual
Property 
Schedule "G" – Insurance Policies 

ARTICLE 2 
PURCHASE AND SALE OF CHALK SHARES 

Purchase and Sale – Chalk Shares 

2.01                    
Upon the terms and conditions of this Agreement, the Principal Vendors hereby
agree to sell and Giantstar agrees to purchase the Chalk Shares owned by the
Principal Vendors, as shown on Schedule "A", free and clear of all liens,
charges and Encumbrances whatsoever. 

- 6 - 

Purchase Price - Chalk Shares 

2.02                    
The purchase price payable by Giantstar to all Vendors for Chalk Shares shall be
15,000,000 common shares without par value in Giantstar. The number of Giantstar
Shares to be issued to each Principal Vendor shall be equal to 15,000,000,
multiplied by a fraction whose numerator is equal to the number of Chalk Shares
owned by the Principal Vendor at the Closing, and whose denominator is equal to
the number of Chalk Shares owned by all Vendors at the Closing. The Giantstar
Shares will be fully paid and non-assessable common shares in the capital of
Giantstar, and free and clear of all Encumbrances. 

Chalk Warrants 

2.03                    
Effective on the Closing, the Chalk Warrants will be converted to or exchanged
for warrants to purchase additional shares in Giantstar on the following terms:

	(a) 	
      the number of Giantstar Shares issuable on the exercise
      of each warrant will be equal to the number of shares of Chalk issuable on
      the exercise of the corresponding Chalk Warrant, multiplied by a fraction
      whose numerator is 15,000,000 and whose denominator is the number of Chalk
      Shares owned by all Vendors at Closing; and

	 	 
	(b) 	
      the exercise price per share under each warrant will be
      equal to the exercise price per Chalk share under the corresponding Chalk
      Warrant multiplied by a fraction whose numerator is the number of Chalk
      Shares owned by all Vendors and whose denominator is
  15,000,000.

Legally Binding Agreement 

2.04                    
This Agreement shall become legally binding upon execution and delivery of this
Agreement by Giantstar, Chalk, and all of the Principal Vendors.

Tax Election 

2.05                    
It is intended that the Vendors will be able to transfer the Chalk Shares on a
tax-deferred basis to the Vendors for purposes of the Income Tax Act and
applicable provincial income tax statutes. In order to give effect to this
intention, Giantstar agrees with Chalk and with the Principal Vendors that if so
requested by any Vendor, such Vendor and Giantstar will elect in prescribed form
and manner to have the provisions of section 85(1) of the Income Tax Act,
and similar provisions of all corresponding provincial legislation, apply to
the transfer of the Chalk Shares by such Vendor, and will deliver such elections
to the Canada Customs and Revenue Agency and each applicable provincial taxation
authority within the time prescribed in accordance with the Income Tax Act
and all corresponding provincial legislation. The elected amounts for
purposes of such election will be determined by the Vendors in a manner
consistent with the above-mentioned intention. 

- 7 - 

Vendors 

2.06                    
Giantstar acknowledges that the number of Chalk Shares owned by each Vendor, as
shown in Schedule “A”, may be subject to change between the date of this
Agreement and the Completion Date. Chalk will give Giantstar prompt notice of
any change in the numbers of Chalk Shares owned by the individual Vendors, and
will not issue any new shares in Chalk unless the holder of such shares agrees
to become a party to the Share Exchange Agreement.

Acknowledgement by Principal Vendors 

2.08                    
Each Principal Vendor hereby acknowledges that policies of the Exchange may
require that some or all of the Giantstar Shares be placed in escrow, and that
some or all of the Giantstar Shares will be subject to resale restrictions under
applicable securities laws. Principal Vendors who hold Chalk Warrants further
acknowledge and agree that such restrictions may apply to the Giantstar warrants
they receive in exchange for their Chalk Warrants and to any securities of
Giantstar issued upon the exercise of such Giantstar warrants. 

ARTICLE 3 
DUE DILIGENCE INVESTIGATIONS 

Giantstar Investigation Period 

3.01                    
Giantstar and Chalk shall each be entitled to conduct a due diligence
investigation of the other during the period beginning on the execution of this
Agreement by Giantstar and Chalk, and concluding 10 Business Days following the
execution of this Agreement by Giantstar and Chalk.

Co-operation by Chalk 

3.02                    
During the period described in section 3.01, Giantstar and Chalk shall
co-operate fully in the due diligence investigations being conducted by the
other, and shall forthwith provide the other with reasonable access to any
financial, business, and other records requested by the party performing the
investigation. 

Notice of Deficiency and Termination 

3.03                    
Giantstar or Chalk may, at any time during the period described in section 3.01,
give notice to the other party identifying any adverse material circumstance,
fact, or change concerning the other party of which it has become aware during
the investigation conducted pursuant to section 3.01. Such notice shall state in
reasonable detail the nature of the adverse material circumstance, fact, or
change, and the source or basis for the party's information concerning such
adverse material circumstance, fact, or change. Following delivery of a notice
by either Giantstar or Chalk pursuant to this section, Giantstar and Chalk shall
engage in good faith discussions, for a period of not less 

- 8 - 

than three Business Days, with a view to resolving the concerns
of the party giving notice relating to the matters specified in the notice. If
the concerns of that party are not resolved, and if that party believes in good
faith that that the matters specified in its notice constitute an adverse
material circumstance, fact, or change concerning the party to whom notice was
given of which the party giving notice was not aware on the date of this
Agreement, the party giving notice may within five Business Days following
delivery of its notice deliver further notice pursuant to this section
terminating this Agreement, in which case this Agreement shall be terminated as
for failure of a condition precedent in accordance with section 7.02 or section
7.05, as the case may be. 

Access to Giantstar Records 

3.04                    
From and after the execution of this Agreement, Giantstar shall provide Chalk
with full and unlimited access to all business and financial records of
Giantstar, notwithstanding the expiration of the due diligence period specified
in section 3.01. 

ARTICLE 4 
REPRESENTATIONS AND WARRANTIES OF THE VENDORS
AND CHALK 

Representations and Warranties 

4.01                    
The Principal Vendors and Chalk hereby represent and warrant to Giantstar, with
the intent that Giantstar will rely thereon in entering into this Agreement and
in concluding the Transaction as contemplated hereby, that except as disclosed
in writing to Giantstar prior to the execution and delivery of this Agreement by
Chalk: 

	(a) 	
      Chalk is duly incorporated and validly exists under the
      laws of British Columbia, is in good standing with respect to the filing
      of annual returns under the Company Act, has the necessary
      corporate power, authority and capacity to own its property and assets and
      to carry on the Business as presently conducted and is duly licensed to
      carry on business in all jurisdictions in which it presently carries on
      business;

	 	 
	(b) 	
      each of the Subsidiaries is duly incorporated and validly
      exists under the laws of its respective jurisdiction as indicated in
      Schedule "D", is in good standing with respect to the filing of required
      returns in its respective jurisdiction of incorporation, has the necessary
      corporate power, authority, and capacity to own its property and assets
      and to carry on the Business as presently conducted and is duly licensed
      to carry on business in all jurisdictions in which it presently carries on
      business;

	 	 
	(c) 	
      Chalk has all necessary corporate power and capacity to
      enter into and perform its obligations under this Agreement, the Share
      Exchange Agreement, and all agreements which it has or will enter into in
      relation to the Transaction (collectively the "Acquisition
    Documents");

- 9 - 

	(d) 	
      the execution, delivery and performance by Chalk of the
      Acquisition Documents and the consummation of the transactions
      contemplated hereby and thereby have been duly authorized by all necessary
      corporate action on the part of Chalk;

	 	 
	(e) 	
      upon execution and delivery of Acquisition Documents each
      will constitute a legal, valid and binding obligation Chalk enforceable
      against it in accordance with its terms.

	 	 
	(f) 	
      neither Chalk nor any Subsidiary is either a "reporting
      company" under the Company Act nor a "reporting issuer" under the
      Securities Act (British Columbia) or the equivalent under the
      applicable corporate or securities laws of any other
  jurisdiction;

	 	 
	(g) 	
      except for such differences or discrepancies which do
      not, in the aggregate, materially adversely affect the financial condition
      of Chalk or the Business, Chalk and the Subsidiaries are the owner of and
      have good and marketable title to all of the Assets, including without
      limitation all Assets reflected in the Audited Chalk Financial Statements,
      free and clear of all Encumbrances whatsoever, other
  than:

	 	(i) 	
      Assets disposed of, utilized, or consumed by Chalk and
      the Subsidiaries in the ordinary course of the Business since the date of
      the Audited Chalk Financial Statements; and

	 	 	 
	 	(ii) 	
      the Permitted Encumbrances;

	(h) 	
      except for such differences or discrepancies which do
      not, in the aggregate, materially adversely affect the financial condition
      of Chalk or the Business, the Audited Chalk Financial Statements have been
      prepared in accordance with generally accepted accounting principles
      applied on a basis consistent with Chalk’s prior fiscal periods, are true,
      correct, and complete in all material respects, and present fairly the
      financial position of Chalk as at the date thereof and fairly state
      Chalk’s income and deficit for the period covered thereby;

	 	 
	(i) 	
      except for such differences or discrepancies which do
      not, in the aggregate, materially adversely affect the financial condition
      of Chalk or the Subsidiaries or the Business, neither Chalk nor any
      Subsidiary has any outstanding indebtedness or any liabilities or
      obligations (whether accrued, contingent or otherwise) other than (i)
      those reflected or reserved against in the Audited Chalk Financial
      Statements, or (ii) as incurred subsequent to December 31, 2002 in the
      ordinary and usual course of the Business or in conducting the Transaction
      as contemplated by this Agreement;

	 	 
	(j) 	
      since the date of the balance sheet included in the
      Audited Chalk Financial Statements there have not
been:

	 	(i) 	
      any changes in the condition or operations of the
      Business, Assets or financial affairs of Chalk or any Subsidiary which
      are, individually or in the aggregate, materially adverse;
  or

- 10 - 

	 	(ii) 	
      any damage, destruction or loss or other event,
      development or condition, of any character (whether or not covered by
      insurance) which is not generally known, and which has or may materially
      adversely affect the Business, Assets, or future prospects of Chalk or any
      Subsidiary;

	(k) 	
      all material financial transactions of Chalk and the
      Subsidiaries have been accurately recorded in the books and records of
      Chalk and the Subsidiaries and such books and records fairly present the
      financial position and the corporate affairs of Chalk and the
      Subsidiaries;

	 	 
	(l) 	
      since the date of the Audited Chalk Financial Statements,
      none of Chalk or the Subsidiaries have, except as do not materially
      adversely affect the financial condition of Chalk or the Subsidiaries or
      the Business:

	 	(i) 	
      transferred, assigned, sold or otherwise disposed of any
      of the Assets or cancelled any debts or claims except in each case in the
      ordinary and usual course of the Business or in conducting the Transaction
      as contemplated by this Agreement;

	 	 	 
	 	(ii) 	
      incurred or assumed any obligation or liability (fixed or
      contingent), except unsecured current obligations and liabilities incurred
      in the ordinary and normal course of the Business or in conducting the
      Transaction as contemplated by this Agreement;

	 	 	 
	 	(iii) 	
      discharged or satisfied any Encumbrance, or paid any
      obligation or liability (fixed or contingent), other than current
      liabilities or the current portion of long term liabilities disclosed in
      the Audited Chalk Financial Statements or current liabilities incurred
      since the date thereof in the ordinary and normal course of the Business
      or in conducting the Transaction as contemplated by this
  Agreement;

	 	 	 
	 	(iv) 	
      declared or made, or committed itself to make, any
      payment of any dividend or other distribution in respect of any of its
      shares or purchased or redeemed any of its shares or split, consolidated
      or reclassified any of its shares;

	 	 	 
	 	(v) 	
      suffered any material extraordinary loss or entered into
      any material commitment or transaction not in the ordinary and usual
      course of the Business or in conducting the Transaction as contemplated by
      this Agreement;

	 	 	 
	 	(vi) 	
      waived or surrendered any right of substantial
    value;

	 	 	 
	 	(vii) 	
      made any gift of money or of any property or assets to
      any Person, or made any agreement or promise to do so;

	 	 	 
	 	(viii) 	
      amended or changed or taken any action to amend or change
      its memorandum or articles;

	 	 	 
	 	(ix) 	
      increased or agreed to increase the pay of, or paid or
      agreed to pay any pension,

- 11 - 

	 		
      bonus, share of profits or other similar benefit to, any
      director, employee or officer or former director, employee or officer of
      Chalk;

	 	 	 
	 	(x) 	
      mortgaged, pledged, subjected to lien, granted a security
      interest in or otherwise encumbered any of its Assets or property, whether
      tangible or intangible; or

	 	 	 
	 	(xi) 	
      authorized or agreed or otherwise have become committed
      to do any of the foregoing;

	(m) 	
      save and except for such differences or discrepancies
      which do not, in the aggregate, materially adversely affect the financial
      condition of Chalk or the Business, the consolidated accounts receivable
      shown in the Audited Chalk Financial Statements or acquired subsequent to
      the date thereof by Chalk have been recorded by Chalk in accordance with
      its usual accounting practices. The reserves taken for doubtful or bad
      accounts are adequate based on past experience of Chalk and are consistent
      with the accounting procedures used by Chalk in previous fiscal
      periods;

	 	 
	(n) 	
      neither the execution or delivery of this Agreement, or
      the other agreements and instruments contemplated hereby, nor the
      completion of the Transaction as contemplated hereby will constitute or
      result in the breach of or default under any terms, provisions or
      conditions of, or conflict with, violate or cause any, or give to any
      person or Governmental Authority any right of, after the giving of a
      notice or the lapse of time or otherwise, acceleration, termination or
      cancellation in or with respect to any of the
following:

	 	(i) 	
      any constating documents, charter documents or by-laws of
      Chalk or any Subsidiary or any resolution of the directors or shareholders
      of Chalk or any Subsidiary;

	 	 	 
	 	(ii) 	
      any indenture, mortgage, deed of trust, agreement,
      contract, lease, franchise, certificate, consent, authority, registration
      or other instrument or commitment to which Chalk or any Subsidiary is a
      party or is subject, or by which they are bound or from which they derive
      benefit; or

	 	 	 
	 	(iii) 	
      any law, judgment, decree, order, injunction, rule,
      statute or regulation of any court, arbitrator or Governmental Authority
      by which Chalk or any Subisidiary are bound or from which they derive
      benefit;

	(o) 	
      there is not any suit, action, litigation, arbitration
      proceeding or governmental proceeding, including appeals and applications
      for review, in progress, pending or threatened against, or relating to
      Chalk, any Subsidiary, the Assets, or the Business which might materially
      and adversely affect the Assets, properties, Business, future prospects or
      financial condition of Chalk or any Subsidiary; and there is not presently
      outstanding against Chalk or any Subsidiary any judgment, decree,
      injunction, rule or order of any court, governmental department,
      commission, agency, instrumentality or arbitrator save and except as
      disclosed in Schedule "E" to this Agreement;

- 12 - 

	(p) 	
      Chalk and the Subsidiaries have made all of the payments
      due and owing under the agreements relating to or giving rise to the
      Permitted Encumbrances up to and including the date of this Agreement in
      accordance with the terms and conditions of the agreements relating to or
      giving rise to the Permitted Encumbrances, and have not committed any
      default under the terms and conditions of the agreements relating to or
      giving rise to the Permitted Encumbrances;

	 	 
	(q) 	
      all books and records of Chalk relating to the Business
      accurately reflect all material transactions with respect to the operation
      of the Business;

	 	 
	(r) 	
      Chalk and each Subsidiary:

	 	(i) 	
      has duly filed in a timely manner all federal and
      provincial income tax returns and election forms and the tax returns of
      any other jurisdiction required to be filed and all such returns and forms
      have been completed accurately and correctly in all respects;

	 	 	 
	 	(ii) 	
      has filed in a timely manner all Workers' Compensation
      Board returns, corporation capital returns, and other reports and
      information required to be filed with all applicable government
      authorities, agencies or regulatory bodies; and

	 	 	 
	 	(iii) 	
      has paid all taxes (including all federal, provincial,
      and local taxes, assessments or other imposts in respect of its income,
      business, assets or property) and all interest and penalties thereon with
      respect to such company, for all previous years and all required
      instalment payments due for the current fiscal year have been paid; and
      there is no agreement, waiver or other arrangement providing for an
      extension of time with respect to the filing of any tax return, or payment
      of any tax, governmental charge or deficiency by Chalk or any Subsidiary
      nor is there any action, suit, proceeding, investigation or claim now
      threatened or pending against Chalk or any Subsidiary in respect of, or
      discussion underway with any Governmental Authority relating to, any such
      tax or governmental charge or deficiency;

	(s) 	
      all payments required under the Corporations Capital
      Tax Act, Social Services Tax Act,

	 	 
		
      Workers Compensation Act, Employment Standards
      Act and Excise Tax Act with respect to the Business have been
      paid up to the date hereof and no lien with respect to payments under
      these statutes attach to the assets of Chalk or any of the
      Subsidiaries;

	 	 
	(t) 	
      except as (i) reflected or reserved against in the
      Audited Chalk Financial Statements, or (ii) incurred subsequent to
      December 31, 2002 in the ordinary and usual course of the Business or in
      conducting the Transaction as contemplated by this Agreement, neither
      Chalk nor any Subsidiary is indebted to any of the Principal Vendors or
      any affiliate, director, officer, or employee of Chalk or any Subsidiary,
      and no Principal Vendor or affiliate, director, officer, or employee of
      Chalk or any Subsidiary is indebted to Chalk or any Subsidiary;

	 	 
	(u) 	
      the financial statements and schedules attached to the
      corporate income tax returns as filed by Chalk and any Subsidiary for each
      of its taxation years reflect and disclose all

- 13 - 

		
      transactions to which Chalk or such Subsidiary was party
      as required by the Income Tax Act or other applicable revenue laws
      and all of the transactions to which Chalk or such Subsidiary was or is a
      party are reflected or disclosed in such financial statements and
      schedules and the corporate income tax returns and schedules have been
      duly and accurately completed and filed in accordance with such
    laws;

	 	 
	(v) 	
      Chalk does not have, or will not have on Closing, any
      subsidiaries other than the Subsidiaries, and is the beneficial owner,
      directly or indirectly, of 100% of the issued and outstanding shares of
      each Subsidiary;

	 	 
	(w) 	
      the authorized capital of Chalk consists of 175,000,000
      common shares without par value and 25,000 preferred shares (with none of
      the preferred shares having been issued);

	 	 
	(x) 	
      neither Chalk, its Subsidiaries nor the Principal Vendors
      are under any obligation, contractual or otherwise, to request or obtain
      the consent of any person, and no permits, licences, certifications,
      authorizations or approvals of, or notifications to, any federal,
      provincial, municipal or local government or governmental agency, board,
      commission or authority are required to be obtained by
  them:

	 	(i) 	
      in connection with the execution, delivery or performance
      of this Agreement or the completion of any of the transactions
      contemplated herein;

	 	 	 
	 	(ii) 	
      to avoid the loss of any permit, licence, certification
      or other authorization relating to the Business; or

	 	 	 
	 	(iii) 	
      to permit the Business to be carried on in the same
      manner as presently conducted following the closing of the transactions
      contemplated hereunder;

	(y) 	
      the Chalk Shares owned by the Vendors constitute, or will
      constitute on Closing, 100% of the issued and outstanding share capital of
      Chalk, and except for the Chalk Shares owned by the Vendors, the Chalk
      Warrants, and certain stock options which will be terminated concurrently
      with the Closing, there is not, or there will not be on Closing, any
      agreement or option, present or future, contingent, absolute or capable of
      becoming an agreement or option or which with the passage of time or the
      occurrence of any event could become an agreement or option:

	 	 	 
		(i) 	
      to require Chalk to issue any further or other shares in
      its capital or any other security convertible or exchangeable into shares
      in its capital or to convert or exchange any securities into or for shares
      in the capital of Chalk;

	 	 	 
		(ii) 	
      for the issue or allotment of any of the authorized but
      unissued shares in the capital of Chalk;

	 	 	 
		(iii) 	
      to require Chalk to purchase, redeem or otherwise acquire
      any of the issued and outstanding shares in the capital of Chalk;
  or

- 14 - 

	 	(iv) 	
      to acquire any of the Chalk
Shares;

	(z) 	
      all contracts material to the Business, other than
      contracts made in the ordinary course of business, are disclosed in
      Schedule "B"; and there has not been any default in any term, condition,
      provision or obligation to be performed under any of the Material
      Contracts, each of which is in good standing and in full force and effect,
      unamended;

	 	 	 
	(aa) 	
      except for rights of secured creditors under the
      Permitted Encumbrances, no person has any written or oral agreement or
      option, or any right or privilege capable of becoming such, for the
      purchase of any of the Assets;

	 	 	 
	(bb) 	
      except as disclosed in Schedule "F", Chalk and the
      Subsidiaries are not the owner or holder of any registered trademarks,
      patents, copyrights, trade names, or brand names which are of material
      importance to the Business and which are used by Chalk or any Subsidiary
      in the operation of the Business, and, to the best of the knowledge of
      Chalk and the Principal Vendors, the operation of the Business does not
      infringe upon the patents, trademarks, or trade names of any
  Person;

	 	 	 
	(cc) 	
      save and except pursuant to applicable labour legislation
      and any management contract set out in Schedule "B", there is no
      employment or management contract, commitment or arrangement, whether
      written, oral or implied, relating to Chalk which:

	 	 	 
		(i) 	
      contains any specific agreement as to notice of
      termination or severance pay in lieu thereof; or

	 	 	 
		(ii) 	
      cannot be terminated without cause upon giving such
      reasonable notice as may be required by law without the payment of, or any
      indebtedness in respect of, any bonus, damages, share of profits, or
      penalty;

	 	 	 
	(dd) 	
      Chalk has provided to Giantstar a true and accurate list
      of the employees of Chalk and the Subsidiaries employed by Chalk and the
      Subsidiaries as at the date of this Agreement, and those employees do not
      have the benefit of any pension, deferred compensation or profit sharing
      plan or similar plan (except that nothing in this Agreement will prevent
      Chalk from hiring additional employees or terminating existing employees
      in the reasonable and normal course execution of the Business);

	 	 	 
	(ee) 	
      as at the date of this Agreement, Chalk has five
      directors and the names and positions of all of the directors of Chalk are
      as follows:

	Grant Sutherland 	- 	Chairman and
      Director 
	Stewart Walchli 	- 	Chief Executive Officer and
      Director 
	David Chalk 	- 	Director 
	Michael Agerbo 	- 	Director 
	Kris Sutherland 	-	Director
  

- 15 - 

	(ff) 	
      each Principal Vendor has the full power, authority,
      right and capacity to enter into this Agreement and to sell, assign, and
      transfer the Chalk Shares of such Principal Vendor to Giantstar, to carry
      out the Transaction as contemplated hereby, and to duly observe and
      perform all of its covenants and obligations under this
  Agreement;

	 	 
	(gg) 	
      each Principal Vendor is the owner of and has good and
      marketable title to all of the Chalk Shares to be transferred by such
      Principal Vendor pursuant to this Agreement, free and clear of free and
      clear of all liens, charges and Encumbrances whatsoever, which Chalk
      Shares are validly issued, fully paid and non-assessable shares in the
      capital of Chalk;

	 	 
	(hh) 	
      there is not any suit, action, litigation, arbitration
      proceeding or governmental proceeding, including appeals and applications
      for review, in progress, pending or threatened against, or relating to
      Chalk Shares of any Principal Vendor, and there is not presently
      outstanding against any Principal Vendor relating to any Chalk Shares any
      judgement, decree, injunction, rule or order of any court, governmental
      department, commission, agency, instrumentality or arbitrator save and
      except as disclosed in Schedule "E" to this Agreement;

	 	 
	(ii) 	
      no Principal Vendor is a non-resident of Canada within
      the Income Tax Act (Canada); and

	 	 
	(jj) 	
      this Agreement constitutes a valid, binding and
      enforceable obligation of each Principal Vendor who executes this
      Agreement. On Closing, no Principal Vendor will be a party to, bound by or
      subject to any indenture, mortgage, lease, agreement, instrument, statute,
      regulation, order, judgment, decree or law which would be violated,
      contravened or breached by or under which any default would occur as a
      result of the execution and delivery by such Principal Vendor of this
      Agreement or the performance by the Principal Vendor of any of the terms
      hereof.

Representations and Warranties in Closing Documents 

4.02                    
All statements contained in any certificate or other instrument delivered by or
on behalf of any Principal Vendor or Chalk pursuant hereto or in connection with
the Transaction shall be deemed to be representations and warranties by
Principal Vendors and Chalk in accordance with section 4.01. 

Survival 

4.03                    
The representations and warranties contained in section 4.01 shall survive the
completion of the Transaction as contemplated by this Agreement and shall
continue in full force and effect for the benefit of Giantstar for a period of
one year thereafter, notwithstanding any independent enquiry or investigation by
Giantstar. Any claim based on breach of such representation or warranty must be
commenced within the one year limitation period set out in this section. 

Remedies 

- 16 - 

4.04                    
The only remedies to which Giantstar shall be entitled in the event of a breach
of any representation or warranty contained in section 4.01 shall be as follows:

	(a) 	
      in the event of a breach of any representation or
      warranty contained in subsections 4.01(a) to 4.01(ee), Giantstar shall be
      entitled to require each Principal Vendor to surrender for cancellation a
      number of the Giantstar Shares issued to such Principal Vendor as
      determined by the following formula:

	No. of Giantstar 	= 	No. of Giantstar 	x 	Reduction in value received by Giantstar
    
	Shares surrendered 	  	Shares issued 	  	Value which Giantstar would have 
	by Principal Vendor 	  	to Pr. Vendor 	  	received absent the breach

		
      except that in no case will any Principal Vendor be
      required pursuant to this section to surrender more than 100,000 Giantstar
      Shares.

	 	 
	(b) 	
      in the event of a breach of any representation or
      warranty contained in subsections 4.01(ff) to 4.01 (jj), the Principal
      Vendor in breach of such warranty or representation shall indemnify
      Giantstar in respect of any loss resulting from such breach;

	 	 
	(c) 	
      in the alternative to (a) and (b) Giantstar may exercise
      its right of termination pursuant to sections 7.01(a) and
  7.02.

ARTICLE 5 
REPRESENTATIONS AND WARRANTIES OF GIANTSTAR

Representations and Warranties of Giantstar 

5.01                    
Giantstar hereby represents and warrants to the Principal Vendors and Chalk (on
its own behalf and on behalf of all other Vendors), with the intent that the
Vendors and Chalk shall rely thereon in entering into this Agreement and in
concluding the Transaction, that except as disclosed in writing to Chalk prior
to the execution and delivery of this Agreement by Giantstar: 

	(a) 	
      Giantstar is a company duly incorporated, validly
      subsisting, and in good standing under the laws of British
  Columbia;

	 	 
	(b) 	
      Giantstar has full power, authority, right, and capacity
      to enter into this Agreement and to carry out the Transaction as
      contemplated hereby and to duly observe and perform all of its covenants
      and obligations herein set forth;

	 	 
	(c) 	
      this Agreement has been duly and validly executed and
      delivered by Giantstar and constitutes a legal, valid, and binding
      obligation of Giantstar, enforceable against Giantstar in accordance with
      its terms, except as may be limited by laws of general application
      affecting the rights of creditors;

- 17 - 

	(d) 	
      neither the execution or delivery of this Agreement, or
      the other agreements and instruments contemplated hereby, nor the
      completion of the Transaction as contemplated hereby will constitute or
      result in the breach of or default under any terms, provisions or
      conditions of, or conflict with, violate or cause any, or give to any
      person or Governmental Authority any right of, after the giving of a
      notice or the lapse of time or otherwise, acceleration, termination or
      cancellation in or with respect to any of the following:

	 	 	 
		(i) 	
      any constating documents, charter documents or by-laws of
      Giantstar or any resolution of the directors or shareholders of
      Giantstar;

	 	 	 
		(ii) 	
      any indenture, mortgage, deed of trust, agreement,
      contract, lease, franchise, certificate, consent, authority, registration
      or other instrument or commitment to which Giantstar is a party or is
      subject, or by which it is bound or from which it derives benefit;
    or

	 	 	 
		(iii) 	
      any law, judgment, decree, order, injunction, rule,
      statute or regulation of any court, arbitrator or Governmental Authority
      by which Giantstar is bound or from which it derives
  benefit;

	(e) 	
      except for such differences or discrepancies which do
      not, in the aggregate, materially adversely affect the financial condition
      of Giantstar, the Audited Giantstar Financial Statements have been
      prepared in accordance with generally accepted accounting principles
      applied on a basis consistent with Giantatar’s prior fiscal periods, and
      present fairly the financial position of Giantstar as at the date thereof
      and fairly state Giantstar’s income and deficit for the period covered
      thereby;

	 	 	 
	(f) 	
      except for such differences or discrepancies which do
      not, in the aggregate, materially adversely affect the financial condition
      of Giantstar, Giantstar does not have any outstanding indebtedness or any
      liabilities or obligations (whether accrued, contingent or otherwise)
      other than (i) those reflected or reserved against in the Audited
      Giantstar Financial Statements, or (ii) as incurred subsequent to July 31,
      2002 in routine corporate maintenance or in conducting the Transaction as
      contemplated by this Agreement;

	 	 	 
	(g) 	
      since the date of the Audited Giantstar Financial
      Statements Giantstar has not:

	 	 	 
		(i) 	
      incurred any liability (whether absolute, contingent, or
      otherwise), obligation, transaction, expenditure, or debt other than
      routine corporate maintenance or expenses incurred in conducting the
      Transaction as contemplated by this Agreement;

	 	 	 
		(ii) 	
      suffered any damage, destruction or loss or other event,
      development or condition, of any character (whether or not covered by
      insurance) which is not generally known, and which has or may materially
      and adversely affect the financial condition or assets of Giantstar;
    or

- 18 - 

	 	(iii) 	
      authorized or agreed or otherwise have become committed
      to do any of the foregoing;

	(h) 	
      all material financial transactions of Giantstar have
      been accurately recorded in the books and records of Giantstar, and such
      books and records fairly present the financial position and the corporate
      affairs of Giantstar;

	 	 
	(i) 	
      there is not any suit, action, litigation, arbitration
      proceeding or governmental proceeding, including appeals and applications
      for review, in progress, pending or threatened against, or relating to
      Giantstar or affecting its assets which might materially and adversely
      affect the assets or financial condition of Giantstar; and there is not
      presently outstanding against Giantstar any judgment, decree, injunction,
      rule or order of any court, governmental department, commission, agency,
      instrumentality or arbitrator;

	 	 
	(j) 	
      Giantstar is not indebted to any affiliate, director,
      officer, or employee of Giantstar, and no affiliate, director, officer, or
      employee of Giantstar is indebted to Giantstar;

	 	 
	(k) 	
      the authorized capital of Giantstar consists of
      100,000,000 common shares without par value;

	 	 
	(l) 	
      the issued and outstanding securities of Giantstar as at
      the date of this Agreement consist of:

	 	(i) 	
      2,000,000 free trading common shares issued in the
      initial public offering of Giantstar at a price of $0.15 per
  share;

	 	 	 
	 	(ii) 	
      1,500,000 Giantstar Seed Capital Shares issued at a price
      of $0.075 per share;

	 	 	 
	 	(iii) 	
      stock options granted to directors and officers of
      Giantstar to acquire 350,000 common shares of Giantstar at $0.15 per
      share; and

	 	 	 
	 	(iv) 	
      broker’s warrants issued to Giantstar’s agents in its
      initial public offering entitling the holders to acquire 200,000 common
      shares at $0.15 per share;

		
      and the shares identified in (i) and (ii) are validly
      issued, fully paid, and non-assessable;

	 	 
	(m) 	
      except as set out above, there are no shares of Giantstar
      issued or outstanding, and there is not, or there will not be on Closing,
      any agreement or option, present or future, contingent, absolute or
      capable of becoming an agreement or option or which with the passage of
      time or the occurrence of any event could become an agreement or
      option:

	 	(i) 	
      to require Giantstar to issue any further or other shares
      in its capital or any other security convertible or exchangeable into
      shares in its capital or to convert or exchange any securities into or for
      shares in the capital of Giantstar;

	 	 	 
	 	(ii) 	
      for the issue or allotment of any of the authorized but
      unissued shares in the capital

- 19 - 

	 		
      of Giantstar;

	 	 	 
	 	(iii) 	
      to require Giantstar to purchase, redeem or otherwise
      acquire any of the issued and outstanding shares in the capital of
      Giantstar; or

	 	 	 
	 	(iv) 	
      to acquire any of the Giantstar
Shares;

	(n) 	
      save and except pursuant to applicable labour legislation
      and any management contract set out in Schedule "B", there is no
      employment or management contract, commitment or arrangement, whether
      written, oral or implied, relating to Giantstar which:

	 	 	 
		(i) 	
      contains any specific agreement as to notice of
      termination or severance pay in lieu thereof; or

	 	 	 
		(ii) 	
      cannot be terminated without cause upon giving such
      reasonable notice as may be required by law without the payment of, or any
      indebtedness in respect of, any bonus, damages, share of profits or
      penalty;

	 	 	 
	(o) 	
      as at the date of this Agreement, Giantstar has six
      directors and the names and positions of all of the directors of Giantstar
      are as follows:

	 	Salvatore Giantomaso 	- 	President, Chief Executive Officer, and
      Director 
	 	Bruno Gasbarro 	- 	Chief Financial Officer, Secretary, and
      Director 
	 	Peter Berdusco 	- 	Director and Promoter 
	 	Luigi Petrollini 	- 	Director 
	 	Daniel Luciano 	- 	Director 
	 	Douglas Moseley 	- 	Director 

	(p) 	
      Giantstar has completed all regulatory filings required
      by the Securities Act (British Columbia) and the Exchange, which
      filings, except for such differences or discrepancies which do not, in the
      aggregate, materially adversely affect the financial condition or
      regulatory status of Giantstar:

	 	 	 
		(i) 	
      comply in all material respects with any applicable laws,
      regulations, and Exchange policies; and

	 	 	 
		(ii) 	
      do not contain any material misrepresentation or omit to
      state anything which would be required to make any such filings not
      misleading.

Representations and Warranties in Closing Documents 

5.02                    
All statements contained in any certificate or other instrument delivered by or
on behalf of Giantstar pursuant hereto or in connection with the Transaction
shall be deemed to be 

- 20 - 

representations and warranties by Giantstar in accordance with
section 5.01. 

Survival 

5.03                    
The representations and warranties contained in section 5.01 shall survive the
completion of the Transaction as contemplated by this Agreement and shall
continue in full force and effect for the benefit of the Vendors and Chalk for a
period of one year thereafter, notwithstanding any independent enquiry or
investigation by the Vendors or Chalk. Any claim based on breach of such
representation or warranty must be commenced within the one year limitation
period set out in this section. 

Remedies 

5.04                    
The only remedies to which the Chalk and the Principal Vendors shall be entitled
in the event of a breach of any representation or warranty contained in section
5.01 shall be as follows: 

	(a) 	
      in the event of a breach of any representation or
      warranty contained in section 5.01, Giantstar shall be required to issue
      additional Giantstar Shares to each Vendor as determined by the following
      formula:

	No. of Giantstar 	= 	No. of Giantstar 	x 	Reduction in value received by Vendors
    
	Shares issued 	  	Shares issued 	  	   Value which Vendors would have
  
	to Vendor 	  	to Vendor 	  	       received absent the
      breach 

		
      except that in no case will any Principal Vendor be
      entitled pursuant to this section to receive more than 100,000 additional
      Giantstar Shares.

	 	 
	(b) 	
      in the alternative to (a), the Vendors may exercise the
      right of termination pursuant to sections 7.04(a) and
  7.05.

ARTICLE 6 
COVENANTS OF THE VENDORS, CHALK, AND
GIANTSTAR 

Operation of the Business 

6.01                    
The Principal Vendors and Chalk covenant and agree with Giantstar that from and
after the date of execution of this Agreement to the Completion Date, Chalk (and
its Subsidiaries, where applicable) will: 

	(a) 	
      not sell or dispose of any of the Assets, except only in
      the ordinary course of business;

	 	 
	(b) 	
      not incur any expenditures or indebtedness other than in
      the ordinary course or in the conduct of the Transaction as contemplated
      by this Agreement;

- 21 - 

	(c) 	
      conduct the Business diligently and only in the ordinary
      course, keep the Assets in their present state and endeavour to preserve
      the organization and goodwill of the Business intact; and

	 	 
	(d) 	
      maintain insurance coverage of the scope and in the
      amounts presently held in accordance with the insurance policies disclosed
      in Schedule "G", or other policies to similar
effect.

Proceedings of Giantstar 

6.02                    
Giantstar covenants and agrees with the Principal Vendors and Chalk that from
and after the date of execution of this Agreement to the Completion Date,
Giantstar will: 

	(a) 	
      not incur any transactions or expenditures other than
      routine corporate maintenance or in the conduct of the Transaction as
      contemplated by this Agreement;

	 	 
	(b) 	
      not issue any shares (except as may be issued on the
      exercise of existing stock options or warrants) or grant or issue any
      option, warrant, or other contract or agreement which is convertible into,
      or which gives any Person the right to compel Giantstar to issue, and
      shares;

	 	 
	(c) 	
      diligently make any and all filings required by the
      Securities Act (British Columbia) and the Exchange in compliance
      with any applicable laws, regulations, and Exchange policies;

	 	 
	(d) 	
      take such corporate and other steps and proceedings as
      are required to change its fiscal year end to December 31;

	 	 
	(e) 	
      prepare financial statements for the period ending
      December 31, 2002 and initiate and complete an audit of such financial
      statements; and

	 	 
	(f) 	
      maintain its listing on the Exchange in good
    standing.

Regulatory and Shareholder Approvals 

6.03                    
Both Giantstar and Chalk will use their commercially reasonable best efforts to
obtain, and to assist each other in obtaining, approval of the Exchange any
other Governmental Authority whose approval is require for the Transaction, and
any approval required from the shareholders of Giantstar or Chalk. Giantstar and
Chalk will also co-operate in the preparation of any information circular,
filing statement, or other filing document which may be required to obtain
Exchange approval or shareholder. 

Remedies 

6.04                    
The only remedy of parties for breach of a provision of this Article will be to
exercise their respective rights of termination under Article 7. 

- 22 - 

ARTICLE 7 
CONDITIONS PRECEDENT TO COMPLETION 

Conditions Precedent - Giantstar 

7.01                    
The obligations of Giantstar to carry out the terms and conditions of this
Agreement and to complete the Transaction as contemplated hereby are subject to
and conditional upon the fulfilment, on or before the date or dates hereinafter
specified, of the following conditions: 

	(a) 	
      the representations and warranties of the Principal
      Vendors and Chalk set out in Article 4 and the representations and
      warranties of Chalk and the Vendors in the Share Exchange Agreement shall
      be true and correct at and as of the Completion Date as if such
      representations and warranties were made at and as of the Completion
      Date;

	 	 
	(b) 	
      the Principal Vendors and Chalk shall have performed and
      complied with all agreements, covenants and conditions required by this
      Agreement to be performed or complied with by the Principal Vendor and
      Chalk on or before the date or dates specified for the performance thereof
      or compliance therewith;

	 	 
	(c) 	
      on or before the Completion Date, all of the documents
      and other items to be delivered to Giantstar on Closing pursuant to
      Article 8 shall have been delivered;

	 	 
	(d) 	
      on or before the Completion Date, some or all of the
      Principal Vendors shall purchase, agree to purchase (concurrently with the
      Closing), or cause other Persons to purchase, 75% of the Giantstar Seed
      Stock at a price of $0.11 per share;

	 	 
	(e) 	
      between the date of execution of this Agreement and the
      Completion Date, no change, event or circumstance shall have occurred
      which materially adversely affects Chalk, any Subsidiary, or the
      prospects, operation or condition of the Business;

	 	 
	(f) 	
      if required by the Exchange, a member firm of the
      Exchange shall have agreed on or before the Completion Date to act as
      sponsor in connection with the Transaction;

	 	 
	(g) 	
      on or before the Completion Date, such Vendors as may be
      required to do so by the Exchange shall have entered into an escrow
      agreement for the Giantstar Shares in compliance with the policies of the
      Exchange;

	 	 
	(h) 	
      on or before July 15, 2003, Giantstar will receive any
      and all required approvals from the shareholders of Giantstar, the
      Exchange, and any other Governmental Authorities whose approval is
      required for the Transaction; and

	 	 
	(i) 	
      execution of the Share Exchange Agreement by Vendors
      owning more than 90% of the

- 23 - 

issued and outstanding shares of Chalk on or before June 3,
2003. 

7.02                    
The conditions described in section 7.01 are conditions only to Giantstar being
required to complete the Transaction as contemplated by this Agreement (and are
applicable notwithstanding the terms of the Share Exchange Agreement) and are
not conditions precedent to the existence of a binding agreement. If each such
condition has not been satisfied or waived on or before the date specified for
the satisfaction thereof, Giantstar may, in its sole discretion, elect to
terminate this Agreement. 

7.03                    
All of the conditions precedent set out in section 7.01 are for the sole and
exclusive benefit of Giantstar and may be waived, in whole or in part, by notice
in writing to Chalk. Subject to section 9.02, all such conditions precedent
shall merge in the closing documents on Closing. 

Conditions Precedent – Vendors and Chalk 

7.04                    
The obligations of the Principal Vendors and Chalk to carry out the terms of
this Agreement are subject to and conditional upon the fulfilment, on or before
the date or dates hereinafter specified, of the following conditions: 

	(a) 	
      the representations and warranties of Giantstar set out
      in Article 5 shall be true and correct at and as of the Completion Date as
      if such representations and warranties were made at and as of the
      Completion Date;

	 	 
	(b) 	
      Giantstar shall have performed and complied with all
      agreements, covenants and conditions required by this Agreement to be
      performed or complied with by Giantstar on or before the date or dates
      specified for the performance thereof or compliance therewith;

	 	 
	(c) 	
      on or before the Completion Date, all of the documents
      and other items to be delivered to the Principal Vendors and Chalk on
      Closing pursuant to Article 8 and all documents to be delivered to the
      Vendors and Chalk pursuant to the Share Exchange Agreement shall have been
      delivered to the Principal Vendors, the Vendors, and Chalk,
      respectively;

	 	 
	(d) 	
      on or before the Completion Date, holders of the
      Giantstar Seed Stock shall sell or agree to sell (concurrently with the
      Closing), to one or more of the Principal Vendors or their nominees, 75%
      of the Giantstar Seed Stock at a price of $0.11 per share;

	 	 
	(e) 	
      between the date of execution of this Agreement and the
      Completion Date, no change, event or circumstance shall have occurred
      which materially adversely affects Giantstar;

	 	 
	(f) 	
      Giantstar shall have maintained its listing on the
      Exchange in good standing up to the Completion Date;

	 	 
	(g) 	
      on or before July 15, 2003, shareholders of Giantstar
      shall have passed resolutions (i) giving such approval to the Transaction
      as may be required by the Exchange; and (ii) electing Persons designated
      by Chalk to the Board of Directors of
Giantstar;

- 24 - 

	(h) 	
      on or before the date which is 10 Business Days following
      the date of this Agreement, Giantstar shall deliver to Chalk audited
      financial statements as at and for the period ended December 31, 2002,
      which statements shall not disclose any expenditures, debts, or
      transactions other than routine corporate maintenance procedures or
      expenses incurred in conducting the Transaction as contemplated by this
      Agreement;

	 	 
	(i) 	
      if required by the Exchange, a member firm of the
      Exchange shall have agreed on or before the Completion Date to act as
      sponsor in connection with the Transaction;

	 	 
	(j) 	
      on or before the Completion Date, such Vendors as may be
      required to do so by the Exchange shall enter into an escrow agreement for
      the Giantstar Shares in compliance with the policies of the
    Exchange;

	 	 
	(k) 	
      on or before July 15, 2003 the parties will receive
      approval from the Exchange and any other Governmental Authorities whose
      approval is required for the Transaction;

	 	 
	(l) 	
      the working capital of Giantstar as of the Completion
      Date shall be not less than $250,000; and

	 	 
	(m) 	
      execution of the Share Exchange Agreement by Vendors
      owning more than 90% of the issued and outstanding shares of Chalk on or
      before June 3, 2003.

7.05                    
The conditions described in section 7.04 are conditions only to the Principal
Vendors and Chalk being required to complete the Transaction as contemplated by
this Agreement (and are applicable notwithstanding the terms of the Share
Exchange Agreement) and are not conditions precedent to the existence of a
binding agreement. If each such condition has not been satisfied on or before
the date specified for the satisfaction thereof, this Agreement will be
terminated if Vendors holding more than 50% of the Chalk Shares, acting in their
sole discretion, give notice to Giantstar terminating this Agreement. 

7.06                    
All of the conditions precedent set out in section 7.04 are for the sole and
exclusive benefit of the Vendors and Chalk and may be waived, in whole or in
part, by notice in writing to Giantstar, such waiver to occur, binding on all
Vendors and Chalk, in the event that Vendors holding more than 50% of the Chalk
Shares give notice of such waiver to Giantstar. Subject to section 9.02, all
such conditions precedent shall merge in the closing documents on Closing. 

- 25 - 

ARTICLE 8 
CLOSING 

Time and Place of Closing 

8.01                    
The closing of the purchase and sale of the Chalk Shares of the Principal
Vendors and the other transactions contemplated by this Agreement shall be
completed at the registered office of Chalk (or at such other location as Chalk
and Giantstar may agree) as soon as practicable following receipt of approval
for the Transaction (i) from the Exchange, and (ii) from the shareholders of
Giantstar, to the extent (if any) required by the Exchange. Following receipt of
required approvals as aforesaid, the parties shall use their best efforts to
agree on, and carry out, an expeditious Closing. If the parties do not agree on
a different time for closing, and provided that all other required consents or
approvals from Governmental Authorities have been received, the closing shall
take place at three o'clock p.m. (local time in Vancouver, British Columbia) on
the second Business Day following receipt of the approvals specified in (i) and
(ii) aforesaid. 

Closing Documents 

8.02                    
At the Closing, the Principal Vendors and Chalk shall deliver or cause to be
delivered to Giantstar, as required, the following: 

	(a) 	
      certificates from each of the Vendors for such Vendor's
      Chalk Shares duly endorsed for transfer to Giantstar and certificates
      representing the Chalk Warrants for cancellation;

	 	 
	(b) 	
      certified copies of resolutions of the directors of the
      Chalk duly passed, with a certification that it has not been rescinded and
      continues to be in effect, which authorizes the execution and delivery of
      this Agreement and the completion of the transactions contemplated hereby
      including, without limitation, the transfer of the Chalk Shares to
      Giantstar;

	 	 
	(c) 	
      to the extent requested reasonably in advance by
      Giantstar, certified copies of resolutions of the directors of any
      corporate Vendor, with a certification that it has not been rescinded and
      continues to be in effect, which authorizes the execution and delivery of
      this Agreement and the completion of the transactions contemplated hereby
      including, without limitation, the transfer of the Chalk Shares of such
      Vendor to Giantstar;

	 	 
	(d) 	
      a certificate of a director of Chalk, in his capacity as
      a director of Chalk, dated as of the Completion Date to the effect that
      the representations and warranties of Chalk contained in this Agreement
      are true and correct and that the covenants and agreements of Chalk to be
      observed and performed on or before the Completion Date pursuant to this
      Agreement have been duly observed and performed, and that to the best of
      his knowledge, the representations and warranties of each Vendor contained
      in this Agreement are true and correct and that the covenants and
      agreements of such Vendor to be observed and performed on or before the
      Completion Date pursuant to this Agreement have been duly observed and
      performed and that all conditions precedent to Giantstar's obligations to
      carry out the terms and

- 26 - 

		
      conditions of this Agreement, as set out in section 7.01,
      have been satisfied or waived;

	 	 
	(e) 	
      an opinion of the solicitors for Chalk, in form and
      substance satisfactory to Giantstar acting reasonably, confirming the
      corporate existence, authority, capacity and power of Chalk, the
      authorised and issued share capital of Chalk, and such other matters as
      Giantstar may request, acting reasonably; and

	 	 
	(f) 	
      copies of such other documentation or other evidence
      Giantstar may reasonably request in order to establish the consummation of
      the Transaction and the taking of all corporate proceedings in connection
      with the Transaction in accordance with this Agreement, in form
      satisfactory to Giantstar, acting reasonably.

8.03                    
At the Closing, Giantstar shall deliver or cause to be delivered to Chalk as
agent for the Vendors and to Chalk on its own behalf, the following: 

	(a) 	
      share certificates in the name of the Vendors for the
      Giantstar Shares determined in accordance with Article 2 and Schedule "A",
      and any changes to Schedule "A" of which Giantstar has been given
      notice;

	 	 
	(b) 	
      an opinion of the solicitors for Giantstar, in form and
      substance satisfactory to Chalk acting reasonably, confirming the
      corporate existence, authority, capacity and power of Giantstar, the
      authorised and issued share capital of Giantstar, and such other matters
      as Chalk may request, acting reasonably;

	 	 
	(c) 	
      agreements between Giantstar and all of its present
      directors and officers, in form satisfactory to Chalk acting reasonably,
      containing mutual releases in respect of any and all liabilities and
      obligations except those owed to the directors and officers of Giantstar
      in their capacities as shareholders of Giantstar;

	 	 
	(d) 	
      a certified copy of a resolution of the directors of
      Giantstar duly passed, with a certification that it has not been rescinded
      and continues to be in effect, which authorizes the execution and delivery
      of this Agreement and the completion of the transactions contemplated
      hereby;

	 	 
	(e) 	
      to the extent reasonably requested by Chalk, warrant
      certificates for the Giantstar warrants to replace the Chalk Warrants;
      and

	 	 
	(f) 	
      copies of such other documentation or other evidence as
      Chalk may reasonably request in order to establish the consummation of the
      Transaction and the taking of all corporate proceedings in connection with
      the Transaction in accordance with this Agreement, in form satisfactory to
      Chalk, acting reasonably.

ARTICLE 9 
GENERAL PROVISIONS 

- 27 - 

Notices 

9.01                    
All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if delivered by hand,
telecopied (by a telecopy machine which provides written confirmation of
transmission) addressed as follows: 

To the Principal Vendors: 

c/o Chalk Media Corp.
1600 – 777
Dunsmuir Street, 
Vancouver, BC V7Y 1K4 

Attention:         Grant
Sutherland 
Telecopier
No.:             
(604) 688-0094 

To Chalk 

Chalk Media Corp. 
1600 – 777
Dunsmuir Street, 
Vancouver, BC V7Y 1K4 

Attention:         Grant
Sutherland 

Telecopier
No.:             
(604) 688-0094 

To Giantstar: 

Giantstar Ventures Inc. 
909 Bowron
Street 
Coquitlam, BC V3J 7W3 

Attention:         Bruno
Gasbarro 

Telecopier
No.:             
(604) 936-0752 

or to such other address as may be given in writing by the
parties and shall be deemed to have been received, if delivered by hand, on the
date of delivery, if telecopied to the telecopier numbers set out above, on the
business day next following the date of transmission and if mailed as aforesaid
to the addresses set out above then on the fifth business day following the
posting thereof provided that if there shall be between the time of mailing and
the actual receipt of the notice a mail strike, slowdown or other labour dispute
which might affect the delivery of the notice by the mails, then the 

- 28 - 

notice shall only be effective if actually delivered or
telecopied to the telecopier numbers set out above. 

Non-Merger 

9.02                    
Notwithstanding the completion of the transactions contemplated by this
Agreement, the waiver of any condition contained herein (unless such waiver
expressly releases a party of any such representation, warranty, covenant or
agreement) or any investigation made by any of the parties, the representations,
warranties, covenants and agreements of the parties set forth in this Agreement
shall survive the Completion Date and will remain in full force and effect. 

Time of Essence 

9.03                    
Time is hereby expressly made of the essence of this Agreement with respect to
the performance by the parties of their respective obligations under this
Agreement. 

Binding Effect 

9.04                    
This Agreement shall enure to the benefit of and be binding upon the parties
hereto and their respective heirs, executors, administrators, personal
representatives, successors and assigns. 

Entire Agreement 

9.05                    
This Agreement constitutes the entire agreement between the parties with respect
to the subject matter hereof and shall supersede all previous expectations,
understandings, communications, representations and agreements whether verbal or
written between the parties with respect to the subject matter hereof. 

Further Assurances 

9.06                    
Each of the parties hereto hereby covenants and agrees to execute such further
and other documents and instruments and do such further and other things as may
be necessary or desirable to implement and carry out the intent of this
Agreement. 

Assignment 

9.07                    
None of the parties may assign or transfer their respective rights under this
Agreement. 

Amendments 

9.08                    
No amendment to this Agreement shall be valid unless it is evidenced by a
written agreement executed by all of the parties hereto. 

- 29 - 

Arbitration 

9.09                    
Any dispute arising under this Agreement, including without limitation any claim
by Giantstar for indemnity under section 6.03, shall be submitted to arbitration
before a single arbitrator pursuant to the Commercial Arbitration Act
(British Columbia). 

Confidentiality 

9.10                    
Except as required by law, each of the parties hereto shall maintain the
confidentiality of the existence and terms of the transaction proposed by this
Agreement, and any information received from each other in connection with the
transactions contemplated by this Agreement. In the event that the Transaction
contemplated by this Agreement is not consummated, each shall return to the
other any confidential schedules, documents or other written information
obtained from the other in connection with this Agreement. Each of the parties
hereto agrees that except as required by law it shall not, directly or
indirectly, use for its own purposes any information or confidential data
relating to the other discovered or acquired as a result of the other making
available any information, books, accounts, records or other data and
information and further agrees that it will not disclose, divulge or communicate
orally, in writing or otherwise, any such information or confidential data so
discovered or acquired to any other person, firm or corporation, except to their
respective professional advisors in connection with the transactions
contemplated by this Agreement under the same terms of confidentiality contained
in this Section 7.

The parties will co-operate in the making and dissemination of
any public announcement relating to the subject matter of this Agreement. 

Counterpart Execution 

9.11                    
This Agreement may be executed in counterpart or by facsimile and such
counterpart and facsimile documents shall be read and taken together as a single
document and shall form a binding contract between the parties hereto. 

Arbitration 

9.12                    
Any dispute between the parties relating to adjustments stipulated under section
4.04 or 5.04 will be resolved by arbitration pursuant to the Commercial
Arbitration Act (British Columbia). 

               IN
WITNESS WHEREOF the parties hereto have executed this Agreement on the day and
year first above written. 

                /s/
“Grant Sutherland”
/s/                                 
Grant
Sutherland 

- 30 - 

              
/s/ “Stewart Walchli”
/s/                                     

Stewart Walchli 

              
/s/ “David Chalk”
/s/                                           

David Chalk 

              
/s/ “Michael Agerbo”
/s/                                     

Michael Agerbo 

              
/s/ ”Kris Sutherland”
/s/                                      

Kris Sutherland 

GIANTSTAR VENTURES INC. 
     Per: 

              
/s/ “Bruno Gasbarro”
/s/                                    

Authorized Signatory 

CHALK MEDIA CORP. 
     Per: 

                /s/
“Grant Sutherland”
/s/                                 
Authorized
Signatory 

- 31 - 

Schedule "A" 

VENDORS, PRINCIPAL VENDORS, CHALK SHARES AND CHALK
WARRANTS 

Principal Vendors’ Chalk Shares 

	Shareholder 
	No. of Shares 

	Stewart Walchli 	5,000,000 
	David Chalk 	5,000,000 
	Michael Agerbo 	5,000,000 
	Kris Sutherland 	5,000,000 
	Grant Sutherland 	24,381,294 
	  	  
	TOTAL 	44,381,294

Other Vendors’ Chalk Shares 

	Shareholder 
	No. of Shares 

	Jennifer Burke 	1,603,667 
	Louis Kish 	63,152 
	Marino’s Markets Ltd. 	65,102 
	Cubix Investments Ltd. 	2,650,000 
	Barbara Inglis 	64,496 
	Beverly Lawson 	79,500 
	T. Ventures Partnership 	200,000 
	Global Renaissance Fund Inc. 	100,700 
	Ronald and Erica Kohlman 	63,152 
	Gratio Tsang 	63,152 
	Sailaway Holdings Ltd. 	63,152 
	Canaccord Capital Corp. 	1,185,644 
	A.J. Vickery 	400,000 
	Christopher Chong 	350,000 
	695183 Alberta Ltd. 	2,351,334 
	John Archer 	1,833,334 
	RBC Dominion Securities ITF Melvin Beaumont 	1,666,667 
	Paul Hildebrand 	2,666,667 
	Donald Anderson 	4,500,001 
	CML Global Capital 	2,122,413 
	I-Spire Technology S.A. 	2,892,533 
	John Porter 	250,000 
	Peninsular Corp. 	1,061,207

- 32 - 

	Elizabeth Collett 	2,122,413 
	Kim Campbell 	500,000 
	TOTAL 	28,918,286

Chalk Warrants 

	
Warrant Holder 
	No. of underlying 
Chalk Shares
    
	
Exercise Price 
	
Expiry Date 

	Jennifer Burke 	132,500 	$0.25 	May 14, 2004 
	Louis Kish 	31,576 	$0.25 	May 14, 2004 
	Marino’s Markets Ltd. 	32,551 	$0.25 	May 14, 2004 
	Cubix Investments Ltd. 	1,325,000 	$0.25 	May 14, 2004 
	Barbara Inglis 	32,248 	$0.25 	May 14, 2004 
	Beverly Lawson 	39,750 	$0.25 	May 14, 2004 
	T. Ventures Partnership 	100,000 	$0.25 	May 14, 2004 
	Global Renaissance Fund Inc. 	50,350 	$0.25 	May 14, 2004 
	Ronald and Erica Kohlman 	31,576 	$0.25 	May 14, 2004 
	Gratio Tsang 	31,576 	$0.25 	May 14, 2004 
	Sailaway Holdings Ltd. 	31,576 	$0.25 	May 14, 2004 
	Canaccord Capital Corp. 	592,822 	$0.25 	May 14, 2004 
	SYD Enterprises Ltd. 	500,000 	US$0.25 	July 20, 2003 
	Morrison & Foerster LLP 	107,531 	US$0.25 	July 31, 2010 
	Sprucefield Management Inc. 	40,000 	US$1.32 	April 30,2005 

- 33 - 

Schedule "B" 

MATERIAL CONTRACTS 

Giantstar 

	(1) 	
      Escrow Agreement dated May 28, 2002 among Giantstar,
      Pacific Corporate Trust Company, and certain shareholders of
    Giantstar.

	(2) 	
      Stock Option Agreements dated May 28, 2002 between
      Giantstar and certain directors and officers of Giantstar.

	(3) 	
      Agency Agreement dated August 19, 2002 between Giantstar
      and Octagon Capital Corporation.

	(4) 	
      Amendment to Agency Agreement between Giantstar and
      Octagon Capital Corporation.

Chalk 

	(1) 	
      Debt Assignment Agreements dated March 28, 2003 between
      Chalk and the following holders of promissory notes: CML Global Capital,
      I-Spire Technology SA, Peninsular Corp., and Elizabeth Collett.

	(2) 	
      Lease dated November 15, 2002 between 2725231 Canada Inc.
      and Chalk Media Service Corp.

	(3) 	
      Lease dated August 1, 2002 between 723928 Ontario Limited
      and Chalk Media Service Corp.

	(4) 	
      Employment Contract dated August 31, 2001 of David
      Chalk.

	(5) 	
      Employment Contract dated August 31, 2001 of Michael
      Agerbo.

	(6) 	
      Employment Contract dated February 3, 2002 of Tracey
      Greason.

	(7) 	
      Employment Contract dated December 1, 2001 of Kim
      Campbell.

- 34 - 

Schedule "C" 

PERMITTED ENCUMBRANCES 

Equipment leases covering the following equipment, with the
following payment obligations: 

	(1) 	
      Telephone equipment - $754.10 per month expiring October
      2003

	(2) 	
      Video equipment - $925.13 per month expiring December
      2003

	(3) 	
      Video equipment - $653.80 per month expiring December
      2003

	(4) 	
      Video and computer equipment - $1,242.33 per month
      expiring December 2003

	(5) 	
      Computer equipment - $714.26 per month expiring October
      2004

	(6) 	
      Computer equipment - $703.96 per month expiring November
      2004

	(7) 	
      Office furniture - $3,528.84 per month expiring December
      2003

A term deposit in the amount of $27,500 is pledged as security
against a standby letter of credit for an office furniture lease.

- 35 - 

Schedule "D" 

SUBSIDIARIES 

	(1) 	
      Chalk Media Services Corp., incorporated under the laws
      of British Columbia, Inc. no. 584546

	(2) 	
      Chalk Media IP Corp., incorporated under the laws of
      British Columbia, Inc. no. 619118

- 36 - 

Schedule "E" 

ACTIONS, SUITS AND PROCEEDINGS 

None 

- 37 - 

Schedule "F" 

INTELLECTUAL PROPERTY 

	(1) 	
      Canadian registered trademark TMA 572001, containing
      Chalk logo

- 38 - 

Schedule "G" 

INSURANCE POLICIES 

	(1) 	
      Producers Package Policy 7951-88-36 with Chubb Insurance
      Company of Canada

	(2) 	
      Life Insurance Policy 5420151 with Manulife
    Financial

	(3) 	
      Comprehensive general insurance policy no. 79518436 with
      Chubb Insurance Company of Canada

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]